EXTRACTED: Daily News Clips 6/6/23

PIPELINE NEWS

• E&E News: Mountain Valley calls for dismissal of permit fight

• WV News: MVP developers: Project completion expected by end of 2023

• Cardinal News: With path cleared for the Mountain Valley Pipeline, opponents weigh next steps

• KALW: The Mountain Valley Pipeline’s impact on the environment & communities

• Roll Call: Congress tees up FAA, pipeline safety, rail, supply chain bills

• Fox Business: Farmer in ‘disbelief’ faces lawsuits over carbon capture pipeline surveyors [VIDEO]

• AgWeek: Summit Carbon Solutions adds ethanol plant in Iowa to pipeline

• South Dakota Public Broadcasting: Landowners question federal pipeline regulators over safety

• Reuters: Canada’s Trans Mountain seeks toll approval for expanded oil pipeline

• WPHM: Enbridge awaits federal approval for pipeline replacement

• Natural Gas Intelligence: Cheniere’s Midship Ordered to Compensate Oklahoma Landowners for 1.1 Bcf/d Natural Gas Pipeline Construction

• Bloomberg: Pipeline Company Must Face $65,800 Fine Over Repair Violations

• Law360: Split 6th Circ. Backs Pipeline Operator’s Civil Penalty

WASHINGTON UPDATES

• CTV: Fighting climate change or funding fossil fuels? America wants it ‘both ways’: U.S. ambassador

• The Hill: Supreme Court won’t review ruling barring offshore fracking in California

• The Hill: Energy Department unveils plan using hydrogen energy to cut US emissions by 10 percent

• E&E News: DOE nominee has extensive energy industry ties

STATE UPDATES

• Law360: Diversified And EQT Can’t Escape W.Va. Unplugged Wells Suit 

• Bakersfield Californian: State finds 27 oil wells leaking methane in Arvin-Lamont area

• WESA: Pa. lawmakers examine climate issues related to proposed hydrogen hub

• Inforum: North Dakota loses hundreds of millions of dollars flaring natural gas each year, study finds

EXTRACTION

• Associated Press: Agenda spat at UN climate talks as top official sees chance to ask ‘difficult questions’ in Dubai

• Guardian: Rich countries with high greenhouse gas emissions could pay $170tn in climate reparations

• Washington Post: Carbon dioxide levels in atmosphere mark a near-record surge

• E&E News: U.N. panel distances itself from carbon removal criticism

• CBC: ​​Why Danielle Smith opposes a federal emissions cap while Alberta has its own on the books

CLIMATE FINANCE

• Reuters: Tennessee AG probes asset managers over climate change policies

• Bloomberg: Finding Ways to Get Polluters to Pay for Climate Damages

• Guardian: Climate crisis: rich nations undermining work to help poor countries, research suggests

• Orange County Register: Californians step up efforts to halt fossil fuel investments

OPINION

• Arkansas Democrat Gazette: EDITORIAL: Have oil, will travel

• Globe and Mail: Trans Mountain pipeline justifies federal government support

• AZO Sensors: Orphan Wells and Water Contamination: The Risk

• The American Conservative: The Great Carbon Capture Scam

PIPELINE NEWS

E&E News: Mountain Valley calls for dismissal of permit fight
Niina H. Farah, 6/6/23

“The developer of the Mountain Valley pipeline is calling for an appeals court to toss out litigation over a federal approval, citing President Joe Biden’s recent signing of the debt ceiling bill that included provisions to complete the project,” E&E News reports. “On Monday, Mountain Valley Pipeline LLC said the 4th U.S. Circuit Court of Appeals should either dismiss or deny a challenge to the Fish and Wildlife Service’s recently reissued approvals for the more than 300-mile natural gas pipeline from West Virginia to Virginia. The Fiscal Responsibility Act, which Biden signed into law on June 3, designated the pipeline in the national interest, the project developer said. “To that end, the Act provides that ‘no court shall have jurisdiction to review any action taken by’ an administrative agency ‘necessary for the construction and initial operation at full capacity of the Mountain Valley Pipeline,'” the developer said, quoting the text of the law.

WV News: MVP developers: Project completion expected by end of 2023
Charles Young, 6/5/23

“The Mountain Valley Pipeline is expected to be complete by the end of the year thanks to provisions included in the debt ceiling dealing negotiated in Congress, according to its developers,” WV News repots. “The natural gas pipeline project, first announced nearly a decade ago, could be in operation by this winter, said Natalie Cox, director of communications and corporate affairs for Equitrans Midstream Corp. “We look forward to completing this important infrastructure project by the end of 2023 and flowing domestic natural gas this winter for the benefits of reliability and affordability in the form of lower natural gas prices for consumers,” she said. Assurances for completing project are a central component of the package negotiated by House Speaker Kevin McCarthy and the White House over the nation’s borrowing limit. “We are grateful for the full support of the White House, as well as the strong leadership of Democratic and Republican legislators for recognizing the Mountain Valley Pipeline as a critical energy infrastructure project,” Cox said. Language in the legislation would cause current legal challenges against the MVP project to be dismissed, said Sen. Joe Manchin, D-W.Va., chair of the Senate Committee on Energy and Natural Resources. “The way it has been written, it prohibits judicial review of permits needed to construct the MVP,” he told WV News. “This prohibition extends to cases that are ongoing in the Fourth Circuit of Appeals, which should be dismissed if this bill passes.” “…A separate pipeline in West Virginia, the Atlantic Coast Pipeline, was canceled in July 2020 after legal challenges inflated its cost to more than $8 billion.”

Cardinal News: With path cleared for the Mountain Valley Pipeline, opponents weigh next steps
Matt Busse, 6/5/23

“With President Joe Biden’s signature fresh on legislation that would expedite the completion of the Mountain Valley Pipeline, pipeline officials aim to have it up and running by year’s end, while the project’s opponents are considering their options,” Cardinal News reports. “…Opponents say the project is unnecessary and harmful to the environment, both in terms of future greenhouse-gas emissions and the impact of its construction — and some say they aren’t ready to give up the fight. “Even if some of these permits are issued and initially shielded from judicial review, that’s not necessarily the end of the line,” Jason Rylander, senior attorney with the Center for Biological Diversity, which advocates for species protection and other environmental causes, told the News. “The pipeline still has to cross some of the most difficult terrain along the route, through the Jefferson National Forest and other areas, and there will be opportunities to hold them accountable for the damage they are continuing to do.” Beyond watching the pipeline’s progress to see what comes next, it’s unclear what specific further options might be available to pipeline opponents. After Thursday’s Senate vote, the Protect Our Water, Heritage, Rights — or POWHR — coalition released a statement from Denali Nalamalapu, its communications director, saying, “Our global movement to stop the Mountain Valley Pipeline is stronger than ever. “While we are outraged and devastated in this unprecedented moment, we will never stop fighting this unfinished, unnecessary, and unwanted project. Our hearts are broken but our bonds are strong,” the statement said. Asked about specific next steps, Nalamalapu replied in an email: “We don’t have clear answers at the moment but we likely will in the coming days/weeks. “Right now we are focusing on mobilizing in front of the White House on June 8th to respond to this unprecedented decision and hold Biden accountable to his broken climate promises,” Nalamalapu wrote, referring to a protest, sponsored by People vs. Fossil Fuels, scheduled in front of the White House from 2 to 4 p.m. Thursday. Tom Cormons, executive director of the grassroots environmental protection group Appalachian Voices, said in a statement that “the fight is not over.” “…Preserve Bent Mountain, which is a local chapter of the Blue Ridge Environmental Defense League and part of the POWHR coalition, released a statement saying, “It is not yet clear whether the stench of the MVP/debt limit deal will surpass legal scrutiny.” “…One possible path forward for opponents could be contesting the pipeline provision itself. “Clearly the bill, or what will soon be the law, forecloses most court actions on the pipeline. But the one thing that is left is a possible challenge to the law itself, presumably on constitutional grounds,” David Sligh, conservation director of Wild Virginia, an environmental advocacy nonprofit, told the News… “U.S. Sen. Tim Kaine, D-Virginia, suggested the same during a conference call with reporters last week ahead of the Senate’s vote on the bill. Senators also voted 30-69 to defeat an amendment brought by Kaine that would have removed the Mountain Valley Pipeline provision from the debt-limit legislation. “I would think that frankly the only option under this bill is not to challenge any aspect of the pipeline but to challenge, did Congress have the legal ability to do what it just did?” Kaine said… “Kaine noted that the authors of the Mountain Valley Pipeline provision appear to have anticipated a potential legal challenge against the provision itself: The bill specifies that the U.S. Court of Appeals for the D.C. Circuit “shall have original and exclusive jurisdiction over any claim alleging the invalidity of this section or that an action is beyond the scope of authority conferred by this section.”

KALW: The Mountain Valley Pipeline’s impact on the environment & communities
Malihe Razazan, Rose Aguilar, 6/5/23

“On this edition of Your Call’s One Planet Series, we discuss the backlash against the $6.6 billion Mountain Valley Pipeline (MVP) project, which was included in the debt ceiling agreement,” KALW reports. “The MVP will pipe fracked gas from West Virginia to southern Virginia. The agreement will limit the scope of environmental reviews for future developments. Environmental groups say the pipeline could contribute nearly 90 million metric tons in greenhouse gas emissions annually. How did this pipeline end up in the debt ceiling agreement and how are activists and community members responding? Guests: Jean Su, energy director of the Climate Law Institute at the Center for Biological Diversity; Crystal Cavalier-Keck, co-founder of Seven Directions of Service, chair of the Environmental Justice Committee for the NAACP, and board member of the Haw River Assembly; BJ McManama, campaign organizer for Save our Roots, an Indigenous Environmental Network campaign.”

Roll Call: Congress tees up FAA, pipeline safety, rail, supply chain bills
Valerie Yurk, 6/6/23

“Transportation leaders in Congress are queuing up a host of bills over the summer legislative season aimed at overhauling the aviation system, reauthorizing pipeline infrastructure programs, ramping up rail safety and addressing supply chain woes and competition with China,” Roll Call reports. “…Both committees will also write and consider legislation that would reauthorize the Pipeline and Hazardous Materials Safety Administration. The agency’s authority expires on Sept. 30. The House effort is still in its early stages, according to staffers familiar with it, but pipeline safety advocates are hoping lawmakers will address constraints on the agency’s regulatory powers. Erin Sutherland, policy counsel at nonprofit Pipeline Safety Trust, told Roll Call her group is advocating for Congress to eliminate the non-application clause in PHMSA’s statutory authority, which bars the agency from mandating that owners retrofit existing pipelines to adhere to new safety standards. Also, the group is hoping to change safety statutes that don’t expressly prohibit the release of gas or hazardous liquids from a pipeline. “So even if a major failure occurs — like for example, in 2013 — there was a big failure in Arkansas that caused 134,000 gallons of oil to spill into a neighborhood and ruin homes and yards and ruin a wetland,” she told Roll Call. “That’s not technically a violation of any standard.” Sutherland added that Democrats such as Cantwell, Larsen and New Jersey Rep. Frank Pallone Jr. have been supportive of pipeline safety advocates’ provisions in the past. Cantwell and Graves have yet to announce any specific priorities or timelines for the legislation.”

Fox Business: Farmer in ‘disbelief’ faces lawsuits over carbon capture pipeline surveyors [VIDEO]
6/5/23

“South Dakota farmer Jared Bossly tells ‘The Bottom Line’ that the pipeline could change the ‘future’ of his ranch as surveyors scout his property,” Fox Business reports.

AgWeek: Summit Carbon Solutions adds ethanol plant in Iowa to pipeline
6/5/23

“Summit Carbon Solutions has announced that another ethanol plant in Iowa will join its five-state carbon capture pipeline network,” AgWeek reports. “Absolute Energy in St. Ansgar, Iowa, would be the 13th Iowa ethanol to feed the pipeline, which will transport greenhouse gas emissions to North Dakota for underground storage. Absolute Energy started operating in 2008 and produces approximately 130 million gallons of ethanol per year. Summit also recently announced the addition of an ethanol plant in South Dakota… “The Iowa Utilities Board has set a status conference for Tuesday, June 6, on Summit’s permit application. It also is discussing the use of mediators in easement negotiations.”

South Dakota Public Broadcasting: Landowners question federal pipeline regulators over safety
Evan Walton, 6/5/23

“Landowners are raising questions about the federal agency that oversees pipeline safety. This comes amid a legal battle over several proposed pipelines across the Midwest,” South Dakota Public Broadcasting reports. “The Pipeline and Hazardous Safety Administration, (PHMSA), is the federal pipeline safety organization. PHMSA hosted a CO2 safety public meeting in Des Moines Iowa in early June. The message from landowners and other stakeholders attending was clear: PHMSA should address the lack of safety regulations for CO2 specific pipelines before allowing corporations to build them. Mary Pollem is a landowner from Iowa. She said pipeline safety should be addressed prior to building. “So you’ve notified the world that there is a problem with the pipelines. You have notified the world that you are working on safety standards. What other part of government says, ‘Yeah, we know there’s a problem, we know there is a safety issue, but we are going to go ahead and push this through, and too bad, we will deal with it later.’ Make those industries accountable,” said Pollem… “Currently, federal law addresses pipelines only once they are built. PHMSA conducts field inspections, accident analysis, and offers emergency response. Federal regulators cannot change the planned routes of pipelines. Jess Mazour is a resident of Iowa. She summarized a common concern. “Since there are no set back distances at the federal level, and there is, you know, rules that need to be updated, a lot of counties are taking it upon themselves to pass zoning ordnances right now,” said Mazour. “Setback distances from people’s homes, hospitals, and schools, and livestock facilities and more. Right now the pipeline companies are suing, threatening, and bullying any county and local government that’s trying to protect itself.”

Reuters: Canada’s Trans Mountain seeks toll approval for expanded oil pipeline
Nia Williams, 6/5/23

“Canadian government-owned Trans Mountain Corp (TMC) has applied to regulators for tolls on its long-delayed 590,000 barrel-per-day (bpd) pipeline expansion to Canada’s west coast, noting shipping fees would increase if project costs mount,” Reuters reports. “The Trans Mountain Expansion (TMX) will nearly treble the flow of crude from Alberta’s oil sands to Burnaby, British Columbia to 890,000 bpd, but the project has struggled with regulatory hurdles, environmental opposition and surging costs. In March, TMC said the expansion would cost C$30.9 billion ($23 billion), more than four times the original estimate, and that the final bill could rise further. The tolling application is a sign TMX, due to start shipping in the first quarter of 2024, is nearing the finish line more than a decade after it was first proposed. The pipeline will struggle to recoup the billions spent during construction, analysts said, adding that the Canadian government, which bought it in 2018 to ensure it got built and plans to sell it once complete, faces a substantial loss. “TMX is really trapped between a rock and a hard place. It is unlikely to be able to charge a rate compatible with earning viable returns on a C$31 billion investment,” Morningstar analyst Stephen Ellis, who estimates the pipeline will be worth around C$15 billion once complete, told Reuters. In a June 1 application to the Canadian Energy Regulator (CER), TMC proposed a base toll of C$11-C$12 ($8-$9) a barrel, depending on the type of crude shipped and its final destination. Any shipper committing to a term longer than 15 years or more than 75,000 bpd would receive a discount… “This could increase by around C$0.07 a barrel for every extra C$100 million spent on uncapped costs, which are currently estimated at C$9.1 billion. Uncapped costs include two specific segments of the pipeline and other factors, including indigenous and community consultation.”

WPHM: Enbridge awaits federal approval for pipeline replacement
6/5/23

“Two sections of Enbridge Energy’s Line Five pipeline could be replaced soon pending federal approval,” WPHM repots. “The Mackinac Straits tunnel project, which would place a section of the oil pipeline beneath the lake bed, is in the process of being reviewed by the U.S. Army Corps of Engineers. Enbridge Spokesperson Ryan Duffy tells WPHM there’s about 15 months to go in that process before work on the tunnel could begin. “Our goal is to be ready to go to put shovels in the ground when the Army Corps finishes its work,” Duffy told WPHM. “We’re moving it forward, we’ve put a lot of work into trying to expedite this project, applying for these permits.” The delay puts 2030 as a potential completion date for the tunnel. Duffy told WPHM Enbridge is also waiting on permits to go ahead with re-routing another section of Line Five around the Bad River Band Native American Reservation in Northern Wisconsin. The tribe contends that the line is at risk of being ruptured due to erosion and should be shut down.”

Natural Gas Intelligence: Cheniere’s Midship Ordered to Compensate Oklahoma Landowners for 1.1 Bcf/d Natural Gas Pipeline Construction
MORGAN EVANS, 6/5/23

“A federal court in Oklahoma has ordered Cheniere Energy Inc.’s Midship Pipeline Co. LLC to pay landowners nearly $170,000 plus interest for the use of private land during the pipeline’s construction,” Natural Gas Intelligence reports. “The pipeline started flowing up to 1.1. Bcf/d of natural gas in April 2020. However, area landowners in August 2021 said pipeline construction had caused major damage over the years. Landowners have cited flooded fields…”

Bloomberg: Pipeline Company Must Face $65,800 Fine Over Repair Violations
Emily Garcia, 6/5/23

“A Michigan-based pipeline company will face civil penalties for violating federal regulations by failing to make timely repairs to its petroleum pipeline, a Sixth Circuit majority decided,” Bloomberg reports. “The US Department of Transportation’s Pipeline and Hazardous Materials Safety Administration fined Wolverine Pipe Line Co. $65,800 for failing to reduce the operating pressure of its pipeline after a dent was discovered and failing to complete additional repairs within 180 days. According to court documents, Daniel Cooper, Wolverine’s only risk management specialist was informed of a dent and metal loss in one of Wolverine’s pipeline segments on June 10, 2015, via email.”

Law360: Split 6th Circ. Backs Pipeline Operator’s Civil Penalty
Carolyn Muyskens, 6/5/23

“A divided Sixth Circuit rejected Wolverine Pipeline Line Co.’s bid to dodge a $66,000 fine imposed by federal regulators, with the majority finding the government didn’t abuse its discretion when enforcing rules prescribing how companies must respond to defects in their pipelines,” Law360 reports.

WASHINGTON UPDATES

CTV: Fighting climate change or funding fossil fuels? America wants it ‘both ways’: U.S. ambassador
Spencer Van Dyk, 6/5/23

“The U.S. Ambassador to Canada says America “absolutely wants to have it both ways” when it comes to fighting climate change while pursuing fossil fuel projects,” CTV reports. “With just days to spare before a potential default crisis, the U.S. Senate passed a deal struck by President Joe Biden and House Speaker Kevin McCarthy to suspend the country’s debt ceiling until 2025… “But the deal sees both Republicans and Democrats make concessions, including a suite of conservative priorities, namely new rules that will make it easier for both fossil fuel and renewable energy projects to get licences. Ambassador David Cohen told CTV’s Question Period host Vassy Kapelos, in an interview airing Sunday, that while his president considers climate change to be an “existential threat,” quitting fossil fuels altogether is not realistic in the immediate short term, especially while energy security is part of the equation. “The United States absolutely wants to have it both ways,” he said. “Climate change is an existential threat. We have to move as quickly as we can to wean ourselves off fossil fuels to make our energy consumption cleaner. “But that does not mean that we can afford to turn off fossil fuels immediately,” he added. “We’re going to be using fossil fuels for a very long time. We have to make the use of those fossil fuels cleaner and we have to focus on things that may, in addition to climate change, also be existential threats.” Cohen cited as an example the need for many countries — including the United States — to be less reliant on Russian oil and the energy of other “unfriendly players.” “Climate change, energy security, energy sufficiency is an incredibly complicated question. And it’s not a one-size-fits-all approach in dealing with those issues,” he said.

The Hill: Supreme Court won’t review ruling barring offshore fracking in California
ZACK BUDRYK, 6/5/23

“The U.S. Supreme Court on Monday declined a request by the oil industry to review a lower court ruling barring fracking off California’s shore,” The Hill reports. “In 2014, the Environmental Defense Center (EDC) sued to halt offshore fracking in federal waters off the Golden State. Four years later, Judge Philip S. Gutierrez of the Central District of California, a George W. Bush appointee, found the federal government had violated the Endangered Species Act and Coastal Zone Management Act by issuing fracking permits for the area. Last year, a three-judge federal appeals court upheld the ruling but also went further than the Central District, finding that the Interior Department also failed to conduct required environmental reviews under the National Environmental Policy Act. “The agencies also should have prepared a full [environmental impact statement] in light of the unknown risks posed by the well stimulation treatments and the significant data gaps that the agencies acknowledged,” the appeals court wrote. The plaintiffs in the case hailed the Supreme Court’s decision in a statement Monday. “The Supreme Court was right to reject the oil industry’s latest attempt to allow fracking and acidizing in our waters with zero meaningful environmental review,” Maggie Hall, senior attorney at EDC, told The Hill.

The Hill: Energy Department unveils plan using hydrogen energy to cut US emissions by 10 percent
RACHEL FRAZIN, 6/5/23

“The Energy Department on Monday unveiled a roadmap it says will, using hydrogen energy, enable the U.S. to reduce its emissions by 10 percent in 2050, compared to 2005 levels,” The Hill reports. “The strategy document calls for specifically targeting hydrogen use in key industries, including chemicals, steel, refining and heavy transportation, where the energy source can have the greatest emissions reduction impact… “The strategy from the Biden administration focuses specifically on hydrogen energy that’s formed using carbon-free sources, which the administration is calling clean hydrogen. However, there has been some debate as to whether — to be truly clean — hydrogen plants need to use new sources of energy or if they can take electrons currently on the grid. Opponents of using existing energy argue doing so could result in existing energy being replaced with fossil power, but supporters say requiring new energy would be overly burdensome. Energy Secretary Jennifer Granholm demurred when asked to wade into that debate on Monday. “It’s a really important consideration, and it’s something that I know we’re weighing,” she told The Hill, adding that the administration is looking at the issue for a hydrogen hub program and for hydrogen tax credits in the Inflation Reduction Act. “Treasury’s guidance hasn’t come out yet as you’re aware, and so that question about additionality will be part of it, and it’s a very important part because we want to make sure that truly we reduce CO2 emissions … so stay tuned,” she told The Hill, referring to a forthcoming tax credit guidance.

E&E News: DOE nominee has extensive energy industry ties
TIMOTHY CAMA, NICO PORTUONDO, 6/6/23

“President Joe Biden’s pick for a top Department of Energy position has significant ties to the energy industry, including to Saudi and Japanese electricity companies,” E&E News reports. “The Senate is considering David Crane’s nomination this week to be DOE’s undersecretary for infrastructure, with a procedural vote scheduled for Tuesday. The Energy and Natural Resources Committee advanced the nomination last month by a vote of 13-6, with three Republicans joining all Democrats in support. He has been known internationally for decades as an energy executive, notably leading NRG Energy Inc. and facilitating electric vehicle charging company EVgo Inc.’s transition to a publicly traded company. But ethics forms Crane filed ahead of the confirmation vote, which E&E News obtained after ethics officials certified them last month, show the large scale of his involvement in the energy industry. Crane, according to the disclosures, sits on more than two dozen boards and holds significant investments. He stepped down from the boards after his nomination and has pledged to offload most of the investments after his confirmation to avoid conflicts of interest, though some appear to remain.”

STATE UPDATES

Law360: Diversified And EQT Can’t Escape W.Va. Unplugged Wells Suit 
Madeline Lyskawa, 6/2/23

 “Diversified Energy Co. can’t evade landowners’ claims alleging it and other gas companies failed to decommission thousands of West Virginia wells, after a federal judge rejected the company’s contention that thousands of mineral owners could lose out on relief if not included in the proposed class. U.S. District Judge John Preston Bailey denied Diversified Energy Co. PLC, EQT Corp. and others’ motion for judgment on the pleadings based on the landowners’ alleged failure to include mineral owners and the West Virginia Department of Environmental Protection into their proposed class, saying the groups’ inclusion in the litigation is not needed because the wells at issue are not producing gas and the landowners are merely seeking monetary damages to plug the wells, not an order forcing the department to do so, in an order Thursday. In the litigation, landowners Mark McEvoy and James and Samantha Tawney, who first filed suit in July, have asserted that Diversified left them with ‘unplugged, inoperative and abandoned wells that are hazardous to health, damage the environment and harm property values.’ The landowners also allege that the transfer of over $600 million in oil and gas assets between EQT and Diversified in the last several years, including over 700 ‘already abandoned or non-producing wells’ in West Virginia, was fraudulent under the state’s Uniform Fraudulent Transfer Act.

Bakersfield Californian: State finds 27 oil wells leaking methane in Arvin-Lamont area
JOHN COX, 6/1/23

“Leaky oil wells are raising health and safety concerns in Kern County again after inspectors found 27 sites in the Arvin-Lamont area — 40% of the total tested recently by a state task force — were emitting methane unchecked,” the Bakersfield Californian reports. “The findings unsettled some members of the community after it was announced during a meeting Wednesday. On Thursday, environmental justice advocates called for additional testing and direct notification to neighbors. Word of uncontrolled methane releases was a reminder of the 45 oil wells found to be leaking the potent greenhouse gas in and around Bakersfield last year. Those leaks have since been addressed — more than once, in several cases, owing to recurring leaks. Their discovery led state officials to convene the task force whose members identified the leaks disclosed this week… “But in the case of 11 of the leaky wells, the parties responsible have indicated they do not intend to fix them. CalGEM spokesman Jacob Roper told the Californian those same operators have ignored state orders to properly plug the wells, and that the agency “is working on an emergency contract to have those wells fixed as soon as possible.” He wrote that money to do so will come from a fund covered by industry fees… “A staff attorney with CRPE, Kayla Karimi, called the 40% rate of leakage “extremely alarming and unacceptable.” “These agencies must do more to ensure wells are being properly managed, and we must end neighborhood drilling to ensure our communities are safe,” she told the Californian.”.

WESA: Pa. lawmakers examine climate issues related to proposed hydrogen hub
Rachel McDevitt, 6/5/23

“As Pennsylvania competes to become a federally-designated hydrogen hub, state lawmakers are looking into the role hydrogen can play in the state’s energy future,” WESA reports. “Some see hydrogen as one solution to climate change, by using it in place of fossil fuels in sectors such as aviation and heavy industry… “Blue hydrogen is made by separating the hydrogen and carbon atoms in methane, and trapping the carbon so it doesn’t enter the atmosphere. Pennsylvania, with its large natural gas resources, is well-positioned to make blue hydrogen. But environmental groups are pushing back. They say using fossil fuels to make hydrogen won’t help cut emissions at what scientists say is the speed needed to avoid catastrophic warming. Robert Howarth, a Cornell University professor who studies hydrogen, testified at a recent hearing of the House Environmental Resources and Energy Committee and said he found only a marginal difference in the greenhouse gas footprints of blue hydrogen and gray hydrogen — which is made with natural gas without carbon capture. “The greenhouse gas footprint of blue hydrogen is never better than simply burning natural gas,” Howarth said, when factoring in methane leaks and emissions generated by burning gas to power the process. He said it’s much harder to capture carbon emissions directly from burning… “Rep. Greg Vitali (D-Delaware) has introduced a bill to add stricter standards to the law to reduce potential emissions. It hasn’t yet come up for a vote.”

Inforum: North Dakota loses hundreds of millions of dollars flaring natural gas each year, study finds
Patrick Springer, 6/3/23

“North Dakota wasted 226 billion cubic feet of natural gas valued at $680 million through flaring, venting and leaks in oil and gas operations during 2019, according to an analysis for the Environmental Defense Fund,” Inforum reports. “Results of the analysis, conducted by Synapse Energy Economics, were released on Thursday, June 1, along with appeals by environmental and taxpayer advocates calling upon the Biden administration to impose more stringent regulations on methane, a potent greenhouse gas… “Eliminating natural gas flaring and venting in North Dakota would conserve enough to supply every household in North Dakota 16 times over, according to the analysis. In March, the most recent state figures available, North Dakota captured 95% of natural gas produced and flared 5%. Wasted natural gas is not only a major source of climate pollution but also represents a significant and avoidable loss of revenue for taxpayers and mineral royalty holders, the advocates told Inforum. “So, it’s double jeopardy,” Liz Anderson, lead organizer of the Dakota Resource Council, a grassroots environmental advocacy group in North Dakota, told Inforum. “We don’t take the money, and we get harmed by it.” The potential revenue that was lost to natural gas waste in North Dakota in 2019 totaled $43.3 million, including $18.6 million for the Mandan, Hidatsa and Arikara Nation on the Fort Berthold Reservation, located in the heart of the Oil Patch, according to the analysis. North Dakota is challenged in capturing natural gas because 65% of the gas is “associated” gas produced by oil wells, not gas wells… “Earlier, Synapse Energy Economics estimated North Dakota lost $908,000 in state revenue from state taxes and $11.7 million in state revenue from federal royalties in 2019.”

EXTRACTION

Associated Press: Agenda spat at UN climate talks as top official sees chance to ask ‘difficult questions’ in Dubai
6/5/23

“Nations resumed talks on tackling global warming Monday with the aim of shaping a deal that might put the world on track to prevent a dangerous increase in temperatures, as the U.N.’s top climate official called for deep cuts in fossil fuel use,” the Associated Press reports. “Diplomats began two-week negotiations in Bonn, Germany, despite failing to agree on a formal agenda because of differences on the topic of reducing greenhouse gas emissions. The issue lies at the heart of the climate problem, since burning oil, coal and gas is responsible for most warming that’s occurred since preindustrial times. Simon Stiell, who heads the U.N. climate office, told The Associated Press in an interview over the weekend that limiting global warming to 1.5 degrees Celsius (2.7 Fahrenheit) will require a phaseout of fossil fuels, something many oil-producing countries have pushed back on… “Asked about the importance of reducing fossil fuel use, Stiell told AP that “the science is clear.” “Halving emissions by 2030 and reaching ‘net zero’ by 2050 requires a deep cut and reduction, the phasing out, phasing down of all fossil fuels,” he told AP. He welcomed the steep rise in renewable energy production, with unprecedented levels of investment and deployment of solar and wind power in recent years. “That’s one half of the equation,” Stiell told AP. “But the other requires those deep cuts in fossil fuel production and consumption, and that we are not seeing.”

Guardian: Rich countries with high greenhouse gas emissions could pay $170tn in climate reparations
Nina Lakhani, 6/5/23

“Rich industrialised countries responsible for excessive levels of greenhouse gas emissions could be liable to pay $170tn in climate reparations by 2050 to ensure targets to curtail climate breakdown are met, a new study calculates,” the Guardian reports. “The proposed compensation, which amounts to almost $6tn annually, would be paid to historically low-polluting developing countries that must transition away from fossil fuels despite not having yet used their “fair share” of the global carbon budget, according to the analysis published in the journal Nature Sustainability. The compensation system is based on the idea that the atmosphere is a commons, a natural resource for everyone which has not been used equitably. It is the first scheme where wealthy countries historically responsible for excessive or unjust greenhouse emissions including the UK, US, Germany, Japan and Russia, are held liable to compensate countries which have contributed the least to global heating – but must decarbonise their economies by 2050 if we are to keep global heating below 1.5C and avert the most catastrophic climate breakdown. In this ambitious scenario, the study found that 55 countries including most of sub-Saharan Africa and India would have to sacrifice more than 75% of their fair share of the carbon budget… “Using population size, researchers calculated how much 168 countries have over- or under-used their fair share of the global carbon budget since 1960. Some countries were within their fair share allocation, while the global north (the US, Europe, Canada, Australia, New Zealand, Japan, and Israel) have already massively overshot their fair share of the atmospheric commons. Almost 90% of the excess emissions are down to the wealthy global north, while the remainder are from high-emitting countries in the global south, especially oil-rich states such as Saudi Arabia and United Arab Emirates. Five low-emitting countries with large populations – India, Indonesia, Pakistan, Nigeria and China (currently the world’s largest emitter) – would be entitled to receive $102tn, for sacrificing their fair share of the carbon budget in the zero emissions scenario.”

Washington Post: Carbon dioxide levels in atmosphere mark a near-record surge
Amudalat Ajasa, 6/5/23

“Despite rising awareness about global climate change and its devastating impacts, carbon dioxide levels keep treading in the wrong direction,” the Washington Post reports. “This year’s annual increase of CO2 levels is one of the largest on record, representing an accumulation of the heat-trapped gases “not seen for millions of years,” scientists from the Scripps Institution of Oceanography and the National Oceanic and Atmospheric Administration said Monday. The current amount of carbon dioxide in the atmosphere is now 50 percent higher than it was before the industrial era, the NOAA and Scripps scientists said in a report. The new figures offer more evidence that global climate efforts — including transitioning from fossil fuels to cleaner energy — are falling short of what scientists say is needed to stem the warming of the planet. “Every year, we see the impacts of climate change in the heat waves, droughts, flooding, wildfires and storms happening all around us,” said NOAA Administrator Rick Spinrad in a statement. “While we will have to adapt to the climate impacts we cannot avoid, we must expend every effort to slash carbon pollution and safeguard this planet and the life that calls it home.” Carbon dioxide levels in May averaged 424.0 parts per million (ppm) — the fourth-largest annual increase since measurements began 65 years ago at the NOAA observatory in Mauna Loa, Hawaii.”

E&E News: U.N. panel distances itself from carbon removal criticism
Sara Schonhardt, 6/5/23

“A United Nations panel backtracked on its criticism of carbon removal technologies,” E&E News reports. “Many leading scientists say natural and engineered removals will be needed to keep global temperatures from exceeding dangerous limits. Both have trade-offs…”

CBC: ​​Why Danielle Smith opposes a federal emissions cap while Alberta has its own on the books
Robson Fletcher, 6/6/23

“In her victory speech after the United Conservative Party won the May 2023 provincial election, Alberta Premier Danielle Smith took aim at a looming federal cap on oil and gas emissions, among other policy proposals aimed at moving Canada toward its international climate commitments,” CBC reports. “As premier, I cannot under any circumstances allow these contemplated federal policies to be inflicted upon Albertans,” she said. “I simply can’t and I won’t.” The comments were a shot across the bow: a signal to the federal government that it can expect continued resistance from Alberta when it comes to policies like these, seen by supporters as steps that are necessary — if not overdue — toward reducing greenhouse gas emissions but viewed by opponents as intrusions into provincial jurisdiction. But a cap on oil-and-gas emissions would not, technically speaking, be a new policy in Alberta; the provincial government has had a cap of its own on the books for the better part of a decade. The Oil Sands Emissions Limit Act — weighing in at a meagre four pages and fewer than 1,000 words — outlines in broad strokes a 100-megatonne annual cap on the province’s oilsands operations. Alberta’s NDP government introduced the act seven years ago as part of its broader set of climate policies but never ended up passing associated regulations that would make the cap enforceable. And, despite at one time signalling a desire to kill the act, the UCP never followed through and left the law on the books, where it remains to this day. Call it zombie legislation. Call it unfinished business. Or, at this point, call it political pragmatism.”

CLIMATE FINANCE

Reuters: Tennessee AG probes asset managers over climate change policies
Ross Kerber, 6/5/23

“Tennessee’s top legal officer has demanded ten major asset managers provide information over how they seek to tackle climate change, as part of an investigation into potential breaches of consumer law,” Reuters reports. “The state’s Republican attorney general Jonathan Skrmetti sent his requests on May 19 in letters to firms that include AllianceBernstein, (AB.N) Invesco Ltd (IVZ.N) and the Jennison Associates arm of Prudential Financial Inc (PRU.N), according to copies provided to Reuters in response to a public records request. While similar investigations by Republican officials have not led to charges, the letters mark an escalation in attacks on so-called environmental, social and governance (ESG) investing practices. Skrmetti and 20 other Republican state attorneys general wrote to asset managers in March suggesting they are breaching their fiduciary duties in their handling of environmental or social issues. Some of the other signers of that letter have also sent asset managers separate information demands about climate polices, such as an April 24 letter from Louisiana Attorney General Jeff Landry to Franklin Templeton. Shareholder activists and others who support the consideration of ESG factors say the campaign will not likely find wrongdoing or diminish investors’ concern for issues like climate change or full workforce inclusion. But some argue that it could have a chilling effect on ESG conversations, and say the state actions may have already made companies less willing to talk about such issues. “You have seen companies and asset managers being less visible about their sustainability profile,” Bryan McGannon, managing director for sustainable investment group US SIF, told Reuters. Skrmetti’s letters state he is investigating potential “unfair or deceptive acts or practices” that would arise from breaches of Tennessee’s 1977 consumer protection law. They did not provide more details on what these breaches would involve… “K&L Gates attorney Lance Dial, whose firm’s clients include asset managers that received letters from Skrmetti or similar ones from other state attorneys general, told Reuters the probes were unlikely to uncover collusion. Participation in the industry climate groups, Dial told Reuters, “is taken in furtherance of their fiduciary duty, and they maintain their independence.”

Bloomberg: Finding Ways to Get Polluters to Pay for Climate Damages
Akshat Rathi, 6/623

“The biggest achievement at the annual United Nations climate summit last year was committing to create a fund that would compensate the poorest for destruction wrought by global warming. One of the questions at the upcoming COP28 summit will be how to add money to this new loss-and-damage fund,” Bloomberg reports. “If history is any guide, it’s going to be a hard problem to solve. In 2009, rich countries promised to provide $100 billion annually to poor countries to fund projects that reduce emissions and avoid climate impacts. By 2020, the deadline to reach that sum, the amount transferred that year stood at just $83 billion. And most of that total came in the form of loans rather than grants, according to an Oxfam report published this week. Avinash Persaud, a Barbados economist who is the island nation’s special envoy on investment and financial services, told Bloomberg  a creative solution is gaining traction. It’s rooted in a more successful history of wealth transfers from emitters to victims. He wants to impose a small fee on the world’s oil buyers to fund loss-and-damage payments for poor countries ravaged by floods, fires, storms and heat waves. The proposal is modeled on the International Oil Pollution Compensation Funds, which date back to 1971 and continue to function today. The funds work by charging a very small fee to more than 120 member countries for every barrel of oil they import only when the pots need to be replenished. If there ever is an oil spill anywhere in the world, IOPC funds can be made available for clean-up costs of up to $250 million (with some countries paying extra for protection of up to $1 billion). “The world has been waiting decades for a loss-and-damage fund,” Persaud told Bloomberg. 

Guardian: Climate crisis: rich nations undermining work to help poor countries, research suggests
Fiona Harvey, 6/4/23

“Rich nations are undermining work to protect poor and vulnerable countries from the impacts of the climate crisis, by providing loans instead of grants, siphoning off money from other aid projects or mislabelling cash, new research suggests,” the Guardian reports. “Only $11.5bn (£9.2bn) of climate finance from rich countries in 2020 was devoted to helping poor countries adapt to extreme weather, despite increasing incidences of climate-related disaster, according to a report from the charity Oxfam. Nafkote Dabi, Oxfam’s international climate change policy lead, told the Guardian this was inadequate given the scale of the problem. “Don’t be fooled into thinking $11.5bn is anywhere near enough for low- and middle-income countries to help their people with more and bigger floods, hurricanes, firestorms, droughts and other terrible harms brought about by climate change,” she told the Guardian. “People in the US spend four times that each year feeding their cats and dogs.” “…If all of these sums are stripped out, then only $21bn to $24.5bn of the $83bn remains as pure climate finance without strings attached, according to Oxfam in its Climate Finance Shadow Report 2023, published on Monday.”

Orange County Register: Californians step up efforts to halt fossil fuel investments
BROOKE STAGGS, 6/5/23

“Southern California investors sometimes ask financial planner Mitchell Kraus, with Santa Monica-based Capital Intelligence Associates, to make sure they aren’t backing gun makers or for-profit prisons. But by far, Kraus said, the most common request from local clients concerned about “voting with their dollars” is to create portfolios that don’t support fossil fuel companies,” the Orange County Register reports. “There’s definitely been an increase over the years in people who are interested in that,” Kraus, who’s been a wealth manager for three decades, told the Register. The fossil fuel divestment movement kicked off 11 years ago with a group of student activists at Pennsylvania’s Swarthmore College. It gained real momentum later that year, when journalist Bill McKibben published a Rolling Stone article that painted a dire picture of the Earth’s future if we didn’t take serious steps to stop burning fossil fuels. Today, nearly 1,600 institutions with more than $40.5 trillion in assets — from the UC system to the state of Maine to the Vatican — have committed to divesting from fossil fuels. In Southern California, records kept by the Sierra Club’s divestment campaign show the cities of Los Angeles, Irvine, Laguna Beach, San Diego, Encinitas and Santa Monica, along with San Diego County, all have committed to some level of fossil fuel divestment. California soon could join that list. A bill that would force the state’s two largest public pension funds to stop investing in major fossil fuel companies just passed the Senate. If Senate Bill 252 passes out of the Assembly this summer and is signed by Gov. Gavin Newsom, pension funds for California’s teachers, with CalSTRS, and public employees, with CalPERS, would be banned from making new investments in fossil fuel companies starting next year and would have to unwind all such investments by 2031.”

OPINION

Arkansas Democrat Gazette: EDITORIAL: Have oil, will travel
6/6/23

“The crisis over the unfortunately named “debt ceiling,” which is really about paying for what Congress agreed to spend the previous year, has been resolved (for now) and it appears that Ronald Reagan’s sentiments quoted above were followed by clear bipartisan majorities in both houses,” the Arkansas Democrat Gazette Editorial Board writes. “It was a compromise, which means that everyone from John Boozman to Joe Biden agree it’s not perfect… “However, there are plenty of people in the energy industry who should be very happy. In fact, the energy industry may have benefitted the most. And when the energy industry benefits, those of us who use energy benefit, too… “Oil and gas won because, remarkably, the same bill included the okay to build the Mountain Valley natural gas pipeline… “Manchin knows about compromise as he represents arguably the most conservative state to be represented by a Democrat in the U.S. Senate. As a centrist, he knows something the Left frequently refuses to acknowledge in its zeal to promote renewable energy: The nation’s pipeline system is every bit as critical to our infrastructure as the Interstate Highway System, bridges, dams, power lines and the Internet… “Yes, many will argue we should be in the process of phasing out oil and gas (we are) and that additional pipelines won’t help. But in the real, or should we say modern, world, we live in a country that needs more energy than renewables can currently produce. The transition takes time. Congress, in its collective wisdom (did we just say that?), not only did the right thing by raising the debt ceiling and saving the economy, but they also did the right thing for energy and the environment.”

Globe and Mail: Trans Mountain pipeline justifies federal government support
Andrew Willis, 6/5/23

“Hear me out on this: Prime Minister Justin Trudeau just might end up being 2024′s infrastructure investor of the year,” Andrew Willis writes for the Globe and Mail. “Remember the Trans Mountain pipeline? The federal government-owned project facing environmentalists’ protests and seemingly endless cost overruns, with a current expansion price of $30.9-billion? Well, if you haven’t heard, there’s a growing lineup of bidders. By early next year, when oil starts flowing, Bay Street predicts a buyer will take a minority stake that values the entire project at roughly $28-billion… “And as an example of reconciliation in action, could the government ask for a better sign that it’s getting stuff done than pointing to at least three Indigenous groups vying for equity stakes in Trans Mountain? For a project that held the potential to be the whitest of white elephants for the federal government, and a multibillion-dollar sinkhole for taxpayers, Trans Mountain is shaping up as a policy win, and a project that comes close to financial break even. Back in 2018, the federal government was all but forced to purchase Trans Mountain for $4.5-billion to improve the economics of the oil patch. Taxpayers were the buyers of last resort. Former owner Kinder Morgan Inc.  was determined to exit, and none of the obvious buyers – Canada’s pipeline operators – wanted the headaches of what was then a projected $7.4-billion expansion… “Buying and twinning the Trans Mountain pipeline is already benefiting domestic oil companies… “Last Friday, Trans Mountain told regulators what it plans to charge producers once its pipelines, which already carry approximately 300,000 barrels of oil a day, almost triple their capacity to 890,000 barrels. Armed with this information, analysts calculated the utility’s profits and cash flow are set to soar. In a report, analyst Robert Hope at Bank of Nova Scotia estimated Trans Mountain’s earnings before interest, tax, depreciation and amortization (EBITDA) will jump from $180-million this year to $2.4-billion next year, and $2.6-billion in 2026… “From the government’s point of view, selling a small stake in Trans Mountain in a deal that values the entire company at $26-billion to $29-billion – Mr. Hope’s estimate – would mark a welcome initial exit from an investment that seemed destined for disaster.”

AZO Sensors: Orphan Wells and Water Contamination: The Risk
Taha Khan, 6/2/23

“Orphan wells pose significant environmental and health risks, as they can contaminate water sources with toxic substances such as methane, benzene, and other harmful chemicals. This article discusses how orphan wells contaminate water sources and explore the potential for sensor technologies to detect this contamination,” Taha Khan writes for AZO Sensors. “Oil and gas wells that have been abandoned by their owners and left uncapped, known as orphan wells, have the potential to release hazardous substances into surface and groundwater supplies, which can have a negative effect on the environment and public health. Old orphaned wells may have degraded well casing allowing oil, gas, or salty water to leak into freshwater aquifers and pollute them… “Orphan wells can contaminate water sources through methane leakage since it is a potent greenhouse gas that contributes to climate change and can contaminate drinking water sources causing health problems such as headaches, dizziness, and nausea. Releasing benzene, a carcinogenic chemical that may cause cancer and other health issues, including anemia and immune system damage, is another way that orphan wells can pollute water supplies. Toluene, ethylbenzene, and xylene are other dangerous substances that may seep from orphan wells and are all known to damage people’s health… “Despite these challenges, the use of sensor technologies to monitor orphan wells is a promising solution for detecting contamination and preventing further environmental and health risks since, as the technology continues to advance and become more affordable, sensor-based monitoring systems will likely become more widespread and effective in detecting and mitigating the risks associated with orphan wells.”

The American Conservative: The Great Carbon Capture Scam
Michael Fumento, 6/6/23

“While I was freezing my butt off in Fargo, North Dakota, in January recovering from surgery (no other reason to be there that horrible time of year) I had the dubious pleasure of listening to Republican Governor Doug Burgum speak of the wonders of carbon capture, utilization, and storage, or CCS,” Michael Fumento writes for The American Conservative. “In his annual address to the legislature, Burgum said the state was set to be a leader in the practice. “Several projects in the works will capture over 20 million tons [of carbon dioxide] by 2026…. We’re on our way toward achieving carbon neutrality as a state by 2030,” he proudly proclaimed. Lots of wrongs in that short statement. And they don’t make a right… “Everywhere, CCS is a massive scam. Even though the first large projects go back over half a century, it has had and will have negligible impact on CO2 levels… “And even at that “deep deep discount price” the five billion metric tons the U.S. emitted last year would cost half a trillion bucks to capture‚ and that only if it were all being emitted by large CO2-emitting facilities. In other words, just the low hanging fruit. Currently the excruciating cost has kept total world CCS capacity to only 43 metric tons annually. Consider that global emissions are now at an all-time high of 36.8 gigatons, each gigaton being a billion metric tons… “Running a carbon capture system is incredibly energy-intensive, essentially requiring building a new power plant to run the system… “Those financially benefiting from it, of course: rent seekers and their politician cronies. They try to secure government grants, subsidies, or financial incentives designed to support carbon capture projects. Direct subsidies obviously encourage CCSs, but so do indirect ones via carbon credits. When possible, they exploit carbon credit markets, where carbon offsets or credits are traded… “The most efficient method of direct carbon capture is one we’re all quite familiar with: planting trees or other plants that even more efficiently absorb CO2. Better yet is not cutting them down in the first place…”Ultimately, the only way to reduce atmospheric CO2 is to stop producing it entirely… “Even if we stopped all emissions, what is already there would only dissipate or be absorbed over a period of centuries. Nonetheless, the Intergovernmental Panel on Climate Change (IPCC) has encouraged the CCS scam because most IPCC climate models require CCS to balance the carbon books… “Yes, trees (plus other foliage that’s far better at CO2 absorption) could be part of it, if people took it seriously. Those are indeed working CSS technology. But the mechanical stuff? It’s only good for the rich and connected to buy off politicians to help them capture subsidies. The “S” in CCS really stands for “scam.”