EXTRACTED: Daily News Clips 7/25/23

PIPELINE NEWS

• Associated Press: US Supreme Court asked to set aside ruling that blocks construction on Mountain Valley Pipeline

• E&E News: Governors Split Over Mountain Valley Pipeline Extension 

• Winston Salem Journal: ‘Environmental injustice’: Dozens of Democratic NC lawmakers urge feds to block Triad pipeline

• The Center Square: Pipeline extension decision now with federal commission

• Institute for Energy Economics and Financial Analysis (IEEFA):  IEEFA comments to FERC on MVP Southgate Extension pipeline

• Michigan Radio: Federal appeals court takes up question of which court should hear Line 5 dispute

• Pipeline Fighters Hub: Schedule of Upcoming CO2 Pipeline Public Hearings: South Dakota, Iowa, Illinois, North Dakota, Minnesota, Nebraska

• Chicago Tribune: CO2 pipeline push raises safety alarms

• KXNET: Burleigh County leaders asking for more risk information on CO2 pipeline

• KELO: PUC hearings on carbon capture pipelines approach

• KIOW: Kossuth Board Grilled Over Carbon Pipeline Representative

WASHINGTON UPDATES

• Reuters: US to spend $1.55 bln for oil and gas sector to cut methane emissions

• Press release: DeGette introduces legislation to regulate chemicals used in fracking process

• U.S. Senate Committee on Energy & Natural Resources: Full Committee Hearing to Examine Opportunities for Congress to Reform the Process for Permitting Electric Transmission Lines, Pipelines, and Energy Production on Federal Lands

• Washington Post: House Republicans are targeting protections for a tiny lizard found in an oil and gas hot spot

• E&E News: A Bat And A Bird Will Spark Renewed ESA Clash In The House 

STATE UPDATES

• Associated Press: Tar Balls Found Downstream From Yellowstone River Train Derailment 

• Billings Gazette: New Federal Oil And Gas Leasing Rules Proposed Recently Would Have A Chilling Effect On Montana’s Marginal Oil Plays

EXTRACTION

• Guardian: Lawsuit says US environmental agency ignores harm of biofuel production

• FOX News: YouTubers disrupt Just Stop Oil meetings and protests: ‘Just Stop P–sing Everyone Off’

CLIMATE FINANCE

• E&E News: How a ‘hidden pipeline’ of finance enables fossil fuel expansion

• Sierra Club: Capital markets: The hidden pipeline for fossil fuel financing

• Reuters: Canada releases framework to phase out inefficient fossil fuel subsidies

• Bloomberg: BlackRock’s Shifts in Governance Leave ESG Foes Hungry for More

OPINION

• Yankton Daily Press & Dakotan: Letter: Opposing The Pipeline

• The Messenger: Carbon capture drives future for Iowa farmers

• The New Republic: Are We Really Going to Put Polluters in Charge of Carbon Capture?

• C.D.Howe & Associates: Ontario needs to play catch-up on carbon capture and storage

• Forbes: In The Global LNG Race, America Holds All The Cards

• Los Angeles Times: Editorial: Hoping fossil fuel giants will see the light on climate hasn’t worked. Change only comes with mandates and force
  

PIPELINE NEWS

Associated Press: US Supreme Court asked to set aside ruling that blocks construction on Mountain Valley Pipeline
JOHN RABY, 7/24/23

“The fate of a controversial natural gas pipeline in West Virginia may rest with the U.S. Supreme Court, as the state appealed a lower court’s ruling that temporarily blocked construction despite a Congressional order clearing the way for the project,” the Associated Press reports. “West Virginia Attorney General Patrick Morrisey argued that the 4th Circuit Court of Appeals in Richmond, Virginia, lacked jurisdiction to block the Mountain Valley Pipeline. In a statement Monday, he said any challenges to Congress’ action must be heard by a federal appeals court in Washington, D.C. Morrisey asked the U.S. Supreme Court to take up the case. “The Mountain Valley Pipeline is vital to the survival of American energy independence and affects thousands of jobs in West Virginia — its completion is also critical to our national security, the urgent need is for it to be completed as soon as possible,” Morrisey said.

E&E News: Governors Split Over Mountain Valley Pipeline Extension 
Mike Soraghan, 7/25/23

“The governors of North Carolina and Virginia squared off Monday on opposite sides of the Mountain Valley gas pipeline extension known as Southgate,” E&E News reports. “North Carolina Gov. Roy Cooper, a Democrat, told the Federal Energy Regulatory Commission in a letter that the 75-mile project isn’t needed. He said demand for gas will decrease in the future because of federal and state policies to reduce emissions and encourage electrification. “Arguments that MVP Southgate is necessary for heating are misguided,” Cooper wrote. Virginia Gov. Glenn Youngkin, a Republican, argued that his state does need natural gas as a ‘bridge fuel to reach a no-carbon electricity supply’ by 2045. “I do not believe it is [in] the best interest of Virginians to condemn this Project in the spirit of reducing carbon emissions,” Youngkin wrote, “when this Project is in fact central to continue meeting emissions reduction goals in the Commonwealth.” 

Winston Salem Journal: ‘Environmental injustice’: Dozens of Democratic NC lawmakers urge feds to block Triad pipeline
John Deem, 7/25/23

“More than 50 Democrats in the N.C. General Assembly are urging federal regulators to block a planned natural gas pipeline through the Triad over concerns about its impact on the environment, particularly in poor, rural areas where residents lack the financial and political clout to push back on the $500 million project,” the Winston Salem Journal reports. “The legislators also question whether future demand in North Carolina justifies development of the 75-mile line that would move 375 million cubic feet of gas per day — enough to serve the equivalent of more than 2.2 million average homes — from southern Virginia, through the heart of Rockingham County and to the end of the line in Alamance County. “Over the last five years since the proposed MVP Southgate was announced, we have increasingly heard from neighbors, residents and constituents about the real and significant concerns the (pipeline) poses to our communities,” the N.C. House and Senate members tell the Federal Energy Regulatory Commission in their letter dated July 21… “The main pipeline project has been hit with dozens of water-quality violations and hundreds of thousands of dollars in related fines. Opponents insist there’s no reason to expect anything different in North Carolina.”

The Center Square: Pipeline extension decision now with federal commission
Victor Skinner, 7/24/23

“The fate of a Mountain Valley Pipeline extension to carry natural gas into North Carolina is with the Federal Energy Regulatory Commission,” The Center Square reports. “The commission will review public comments on a proposed three-year extension for completion of the MVP Southgate pipeline project to June 2026. Monday was the final day for submissions… “Required Certificate of Public Convenience and Necessity permits for the extension expired in June. This was just weeks after Congress approved construction of the main Mountain Valley Pipeline as part of an agreement between President Joe Biden and Republicans to raise the federal debt ceiling. The deal requires fast-tracked approvals for the main pipeline, which has faced numerous water-quality violations, fines and legal challenges from environmentalists. Those complications with the main line were cited by the North Carolina Department of Environmental Quality as a major reason it rejected water quality permits for the extension in 2020. Construction of both the main line and extension have split North Carolina political leaders along party lines, with Republicans generally siding with the energy industry in support and Democrats with environmentalists in opposition… “Democratic North Carolina Congresswomen Valerie Foushee and Kathy Manning cited local resistance and environmental concerns in urging the commission to reject the permit extension… “Company officials have declined to discuss a timeline for the Southgate extension, which would require further approvals from state and federal officials.”

Institute for Energy Economics and Financial Analysis (IEEFA):  IEEFA comments to FERC on MVP Southgate Extension pipeline
7/25/23

“The Institute for Energy Economics and Financial Analysis (IEEFA) has submitted comments to the Federal Energy Regulatory Commission (FERC) that raise issues about the request submitted by Mountain Valley Pipeline, LLC for an extension of the deadline to construct its proposed MVP Southgate Extension pipeline. FERC issued a Certificate of Public Convenience and Necessity for the MVP Southgate Extension Project in 2020, and it required completion of the project by June 18, 2023. The requested extension to June 18, 2026 would allow the project to be built and launched more than six years after the environmental impact statement (EIS) was completed. Conditions for the project have changed significantly since the original certificate was granted. “The information on which FERC relied in granting the certificate for the project has grown stale and should be reevaluated,” said Suzanne Mattei, IEEFA energy policy analyst and author of the comments. “The MVP Southgate Extension Project relies on the construction of the Mountain Valley Pipeline, and that project’s fate is still uncertain. The extension request should be given closer scrutiny.” IEEFA comments raises questions about a potential design change to the project, which could affect the pipeline’s costs and environmental impact. IEEFA also points out the need for a new evaluation of greenhouse gas emissions from the pipeline and the upstream gas supply, since new research finds natural gas has similar greenhouse gas emissions impacts to coal, and estimates of methane gas leakage from pipeline systems may significantly understate the risk. Finally, the comments note that the substantial increase in exports of liquified natural gas (LNG) appear to have placed upward pressure on domestic gas prices, and prices are likely to rise as more LNG export facilities come online.”

Michigan Radio: Federal appeals court takes up question of which court should hear Line 5 dispute
Brett Dahlberg, 7/24/23

“A federal appeals court said Friday that it will take up the question of whether Michigan’s effort to shut down Enbridge Energy’s petroleum pipeline in the Straits of Mackinac should be heard by a state or federal judge,” Michigan Radio reports. “…In general, legal scholars have said, state law is more favorable to Michigan’s case, and federal law favors Enbridge… “In 2021 Enbridge removed the case to federal court: the U.S. District Court for the Western District of Michigan. Since then, Michigan Attorney General Dana Nessel has made several efforts, each unsuccessful, to move the case back to state court. Now, she has another chance. The U.S. Sixth Circuit Court of Appeals has agreed to review the decision that placed the case in federal court. “As Michigan’s top law enforcement official, I brought this case forward on behalf of the People of Michigan to protect Michigan’s Great Lakes,” Nessel said in a statement Friday. “It is a Michigan case that belongs in a Michigan court.”

Pipeline Fighters Hub: Schedule of Upcoming CO2 Pipeline Public Hearings: South Dakota, Iowa, Illinois, North Dakota, Minnesota, Nebraska
Mark Hefflinger, 7/25/23

“Proposed carbon dioxide pipeline projects put forth by Summit Carbon Solutions and Navigator Ventures have upcoming scheduled public hearings on their permit applications before the South Dakota Public Utilities Commission (SD PUC) — beginning this week on July 25 for Navigator — and the Iowa Utilities Board (IUB), where Summit’s hearings begin next month on Aug. 22,” the Pipeline Fighters Hub reports. “In North Dakota, public hearings on Summit’s proposed pipeline were held by the North Dakota Public Service Commission (ND PSC) March 14 (Bismarck), March 28 (Gwinner), April 11 (Wahpteon), May 9 (Linton) and June 2 (Bismarck). Bold Alliance captured video of the proceedings, which featured impassioned testimony from landowners and thorough questioning of Summit’s reps and experts by landowners’ attorneys. Across the other states through which the proposed CO2 pipelines would pass, Nebraska has no state authority asserted to govern CO2 pipelines at all. In Minnesota, which does not allow the use of eminent domain for CO2 pipelines, the Minnesota Public Utilities Commission (MN PUC) claimed regulatory authority over the carbon pipelines in 2022. The Commission voted to require the preparation of an Environmental Impact Statement (EIS) for just a portion of the Summit project in MN, but no hearings have been scheduled and Summit has said it does not expect any decision from the MN PUC until late 2024 – mid-2025. In Illinois, Navigator re-submitted its permit application to the Illinois Commerce Commission (ICC) in February 2023, triggering an 11-month permitting process with a decision mandated by January 2024. The ICC has authority over both the proposed CO2 pipeline, and proposed underground CO2 sequestration pore space, for which the company has to date secured very few easements from landowners. A third proposed carbon dioxide pipeline, from Wolf Carbon Solutions partnered with an ADM ethanol plant in Illinois has stated it will not seek eminent domain authority to seize landowners’ property, but has been vague about its project timeline and when it might file permit applications.”

Chicago Tribune: CO2 pipeline push raises safety alarms
Nara Schoenberg, 7/23/23

“For years, the carbon dioxide pipeline snaked through the fields and forests of Yazoo County, Mississippi, going largely unnoticed. But that changed forever on a winter evening in 2020,” the Chicago Tribune reports. “Under pressure from heavy rains and a landslide, the pipeline split in two, roaring like a jet engine, carving a 40-foot crater into the ground, and sending an invisible cloud of dangerous carbon dioxide vapor toward the tiny village of Satartia. In a scene rescue workers would later compare to a zombie movie, cars died in the middle of the road, their engines starved of oxygen. Drivers fled, leaving their hazard lights blinking in the dust and darkness. A sheriff’s deputy working without an oxygen mask grew increasingly unsteady and short of breath, until he himself had to be rescued, according to Warren County fire coordinator Jerry Briggs.Closer to the deafening roar of the escaping gas, Briggs and his team spotted a stalled-out car that was still in drive, the driver’s foot resting on the brake, the windows closed. All three of the men inside were unconscious. “It was miraculous that they survived,” Briggs told the Tribune. “While rare and up until now nonfatal, accidents such as the one that night in Satartia loom large as the Midwest considers the health and safety issues raised by proposals to build massive new carbon dioxide pipeline projects, including Omaha-based Navigator CO2’s 1,350-mile network spanning Illinois, Iowa, Minnesota, Nebraska and South Dakota… “But opponents, including environmentalists and landowners, say a new generation of massive, climate-oriented CO2 pipeline projects such as Navigator’s should be put on hold until government officials can address “alarming” gaps in health and safety regulations. Among the gaps: There is no state or federal limit on how close pipelines carrying a potentially suffocating gas can be placed to a home, school or hospital. There is no requirement that an odorant be added to the CO2 to alert the public to a leak, as is done with natural gas. There is no limit on the impurities that are allowed in the carbon dioxide, despite the potential for pipeline corrosion and health hazards in the event of a leak. There is no requirement that pipeline companies use a specific method to map potential accident hazard zones, although one standard approach — which failed in Mississippi — doesn’t take complex topography into account. “It’s like the Wild Wild West,” Pam Richart, co-director of the Champaign-based environmental group Eco-Justice Collaborative and lead organizer of the Coalition to Stop CO2 Pipelines, told the Tribune,  of the current state of regulation. “It’s whatever (the pipeline companies) say is going to go.” Adding to Illinoisans’ health and safety concerns are the unknowns: No one has ever stored as much CO2 underground as Navigator proposes — up to 15 million metric tons a year in central Illinois — and while the risks are theoretically low, opponents say the stakes are high… “In May, more than 150 environmental and advocacy groups — including the Center for Biological Diversity, Eco-Justice Collaborative and Food & Water Watch — signed a letter to President Joe Biden calling for a moratorium on new CO2 pipelines until federal regulators complete their work on new safety standards. Calls for state and federal moratoriums come at a time when the nation faces a potential “tsunami” of new CO2 pipelines, driven by billions of dollars in federal incentives aimed at combating climate change, according to a 2022 report from the nonprofit Pipeline Safety Trust.”

KXNET: Burleigh County leaders asking for more risk information on CO2 pipeline
Joel Porter, 7/24/23

“Burleigh County leaders are pushing for some more information about a proposed carbon dioxide pipeline,” KXNET reports. “Burleigh County commissioners have signed two letters that were sent to the Public Service Commission — one of which is asking for an environmental impact study of the proposed Summit Carbon Solutions pipeline. The other wants to see plume models, which would illustrate who would be impacted by a potential breach or leak in the pipeline. County leaders tell KXNET they can’t form an emergency disaster response plan without that information, but in the last public hearing in June, Summit Carbon Solutions attorneys said giving out those details could put the project’s safety at risk. “I’m not as smart as a Washington, D.C. attorney,” noted Intervener Randy Bakke during the last public hearing, “and probably not near as expensive, but my question is: what is Summit trying to hide?” “…Below are the two letters submitted by Burleigh County this month in regard to the situation.”

KELO: PUC hearings on carbon capture pipelines approach
Tom Rooney, 7/24/23

“The South Dakota Public Utilities Commission will find itself in the middle of the debate over Carbon Capture pipelines this week,” KELO reports. “It will begin hearings on the proposed Navigator pipeline…one of two planned to go through the state. South Dakota Farmer’s Union president Doug Sombke wants reform of the state’s eminent domain laws before the hearings begin, but that doesn’t appear likely. PUC hearings on the proposed Summit Carbon Solutions pipeline are set for September.”

KIOW: Kossuth Board Grilled Over Carbon Pipeline Representative
AJ Taylor, 7/24/23

“Tensions continue to run high over plans for the proposed carbon pipelines,” KIOW reports. “Some Kossuth County residents questioned the County Board of Supervisors this week about their actions at the end of a recent meeting with representatives of a carbon pipeline company. One resident asked about a gesture made by a pipeline representative. Another resident asked a similar question. Fourth District Supervisor Kyle Stecker spoke up about his acknowledgment of the pipeline representatives. Second District Supervisor Jack Plathe said the supervisors are working for the landowners but said he couldn’t go into detail on that. The Navigator pipeline route would run through Kossuth County if it is approved.”

WASHINGTON UPDATES

Reuters: US to spend $1.55 bln for oil and gas sector to cut methane emissions
7/24/23

“The U.S. government will provide up to $1.55 billion in funding to monitor and reduce methane emissions from the oil and gas sector, two agencies said on Monday,” Reuters reports. “The funding will be accompanied by technical assistance for companies to rein in emissions of the planet-warming greenhouse gas from leaks and daily operations, the U.S. Environmental Protection Agency said. “The amount of methane emitted from oil and gas operations is enough to fuel millions of homes a year, and is a major driver of the climate crisis,” said Joe Goffman at EPA’s Office of Air and Radiation. States will get as much as $350 million through the U.S. Department of Energy’s National Energy Technology Laboratory to help companies voluntarily identify and permanently reduce methane emissions from low-producing wells. The EPA and the DOE said they will also invite bids from tribal governments, companies, and communities for the deployment of technologies and implementation of best practices in the oil and gas sector.”

Press release: DeGette introduces legislation to regulate chemicals used in fracking process
7/20/23

“The top Democrat on the House Energy, Climate and Grid Security subcommittee, U.S. Rep. Diana DeGette (D-CO), introduced legislation today to give the U.S. Environmental Protection Agency the authority to regulate an oil drilling practice known as hydraulic fracking. The legislation – known as the Fracturing Responsibility and Awareness of Chemicals Act of 2023, or FRAC Act – would close a loophole in the Safe Drinking Water Act that prevents EPA from regulating the notorious drilling process that involves injecting huge volumes of toxic chemicals deep into the ground to recover oil and natural gas, potentially contaminating the nation’s water supply and putting the public’s health at risk. If approved, DeGette’s legislation would not only give EPA the authority to regulate the process going forward, it would also – for the first time – require U.S. fracking companies to publicly disclose the chemicals they are using at sites across the country. “The American people have a right to know precisely what chemicals these companies are pumping into our nation’s water supply and what, if any, harm they pose to people’s health,” DeGette said. “For far too long, America’s oil and gas industry has been allowed to operate with impunity, with little regard for how their activities impact the air we breathe and the water we drink. Congress can, and must, do more to protect our communities from the threat they face from this practice.” “…The FRAC Act is one of five bills that was introduced in the House Thursday to address environmental and public health concerns related to the fracking process. Collectively, the five bills have been dubbed the Frack Pack and, in addition to DeGette’s FRAC Act, include: The CLEANER Act, which would close a loophole in the Resource Conservation and Recovery Act that allows oil and gas companies to avoid responsibility for the hazardous waste they create. The FRESHER Act, which would create a study to better understand the effect of stormwater runoff from oil and gas operations. The CLOSE Act, which would eliminate the aggregation exemption that allows oil and gas companies to emit a range of hazardous pollutants while producing, processing, storing, and transmitting fossil fuels without meaningful regulation by EPA. The SHARED Act, which would require increased testing and reporting of water contamination near fracking sites.”

U.S. Senate Committee on Energy & Natural Resources: Full Committee Hearing to Examine Opportunities for Congress to Reform the Process for Permitting Electric Transmission Lines, Pipelines, and Energy Production on Federal Lands
7/26/23

“The purpose of this hearing is to examine opportunities for Congress to reform the process for permitting electric transmission lines, pipelines, and energy production on federal lands. The hearing will be webcast live on the Committee’s website, and an archived video will be available shortly after the hearing concludes. Witness testimony will be available on the website at the start of the hearing. Witnesses: Mr. Antonio P. Smyth, Executive Vice President – Grid Solutions & Government Affairs American Electric Power; Mr. Jason M. Stanek, Former Chairman, Maryland Public Service Commission; Mr. Chad A. Teply, Senior Vice President – Transmission & Gulf of Mexico, Williams; Mr. Erik G. Milito, President, National Ocean Industries Association; Mr. Pete Obermueller, President, Petroleum Association of Wyoming; Ms. Kelly Speakes-Backman, Executive Vice President – Public Affairs, Invenergy.”

Washington Post: House Republicans are targeting protections for a tiny lizard found in an oil and gas hot spot
Maxine Joselow, 7/25/23

“Last month, the U.S. Fish and Wildlife Service proposed federal protections for a lizard found only in the Permian Basin, one of the world’s most lucrative oil- and gas-producing regions. Now, the tiny lizard is fueling a big fight between House Republicans and the Biden administration over the reach of the 50-year-old Endangered Species Act,” the Washington Post reports. “At issue is the dunes sagebrush lizard, a reptile 2.5 inches long that lives in a portion of the Permian Basin in West Texas and southeastern New Mexico. House Republicans have added a policy rider to a fiscal 2024 spending bill that would block the Fish and Wildlife Service from listing the lizard as endangered under the Endangered Species Act.  Some GOP lawmakers say voluntary conservation efforts are sufficient to save the lizard from extinction, adding that federal protections would devastate the fossil fuel industry… “The Center for Biological Diversity sued the Fish and Wildlife Service last year, accusing the agency of stalling on deciding whether to protect the lizard. The agency, as part of a court-approved agreement, faced a June 29 deadline for determining whether a listing was warranted… “In contrast, fossil fuel companies and ranchers in the Permian Basin have strongly opposed listing the lizard as endangered, saying it would disrupt business and add costs. Energy firms say they’ve already spent millions of dollars on voluntary conservation agreements with wildlife managers…“We don’t want to do away with the ESA,” Rep. Bruce Westerman (R-Ark.), chair of the House Natural Resources Committee, told reporters last week. “We want to make it something that actually works for endangered species. And to do that, it doesn’t need to be a political weapon.”

E&E News: A Bat And A Bird Will Spark Renewed ESA Clash In The House 
Michael Doyle, 7/25/23

“The House this week is poised to strike down Endangered Species Act protections extended to the northern long-eared bat and two distinct populations of the lesser prairie chicken,” E&E News reports. “Following the Senate’s lead, the House has slated for floor action one resolution that would block the Fish and Wildlife Service’s elevation of the northern long-eared bat’s status from threatened to endangered. A second measure would block the designations of threatened for the lesser prairie chicken’s northern population and endangered for the bird’s southern distinct population. Although the different species face different challenges, the upcoming House debates over S.J. Res. 9 by Republican Sen. Roger Marshall of Kansas and S.J. Res. 24 by Republican Sen. Markwayne Mullin of Oklahoma will have in common strongly held conflicting sentiments about the underlying Endangered Species Act. “There is no reason to disproportionately increase regulatory burden and hinder economic development,” Mullin, author of the Senate’s bat-related resolution, told E&E, adding that he is “against one-size-fits-all regulation from Washington bureaucrats.”

STATE UPDATES

Associated Press: Tar Balls Found Downstream From Yellowstone River Train Derailment 
7/24/23

“Tar balls have shown up 100 miles downstream of a railroad bridge collapse last month that sent numerous tank cars carrying petroleum products plummeting into Montana’s Yellowstone River, officials said last week, as dropping water levels and rising temperatures hinder cleanup work,” the Associated Press reports. “More than 66 tons of the black, gooey stuff have been removed from the river since the June 24 accident, officials said. Most of the spilled material — a binder for asphalt that sticks to river rocks and gets harder to handle as it warms — is expected to get left behind. Cleanup crews working this week on an island near the town of Laurel pulled long, taffy-like pieces of the asphalt from among the river rocks. They used shovels to pull apart sandbanks where receding water levels revealed pockets of contamination. The globs — along with some rocks and sand — were bagged for disposal and carried away by power boat. Navigating the river is getting harder by the day for the boats being used in the cleanup. And when temperatures peak in the afternoons, the asphalt becomes too soft to pick up, curtailing work. Smaller clumps and some asphalt enmeshed in river rocks will be left behind.”

Billings Gazette: New Federal Oil And Gas Leasing Rules Proposed Recently Would Have A Chilling Effect On Montana’s Marginal Oil Plays
Tom Lutey, 7/25/23

“The long-anticipated rules changes posted Thursday by the Bureau of Land Management include a required cleanup bond of $150,000 per well, up from the $10,000 amount that hadn’t been adjusted in 63 years,” the Billings Gazette reports. “Both conservationists and the petroleum lobby say the higher bonding amount would scuttle leasing in low-probability areas, which is mostly what Montana has. Several changes by BLM were already in play to end bidding in noncompetitive areas. “In the last decade alone, 220,000 acres of Montana’s public lands were leased non-competitively,” Aubrey Bertram, climate energy program director for Wild Montana, told the Gazette. Many of those lands were critical habitats for wildlife including sage grouse, a sensitive species. “These leases almost never, ever, ever result in any commercial development much less any return for taxpayers. And just at its core, non-competitive leasing was always a very wasteful practice that for decades forced the BLM to expend limited public agency time and resources, administering these leases that were never going to return anything in the first place.” Most likely to be affected in the drilling world are the small independent producers, a class of nearly 10,000 operators who develop 91% of U.S. wells. The Independent Petroleum Association of America said the rules proposed Thursday will drive some from federal lands.”

EXTRACTION

Guardian: Lawsuit says US environmental agency ignores harm of biofuel production
Tom Perkins, 7/24/23

“The US biofuel program is likely killing endangered species and harming the environment in a way that negates its benefits, but the US Environmental Protection Agency (EPA) is largely ignoring those problems, a new federal lawsuit charges,” the Guardian reports. “The suit alleges the EPA failed to consider impacts on endangered species, as is required by law, when it set new rules that will expand biofuel use nationwide during the next three years, Brett Hartl, government affairs director with the Center for Biological Diversity (CBD), which brought the litigation, told the Guardian. The agency has twice ignored court orders to study the impacts and is likely dodging the requirements because ethanol production “props up” the corn industry, which has a politically powerful lobby, Hartl added. “The Biden administration failed to even modestly reform this boondoggle and crumbled again in the face of political pressure from powerful special interests,” Hartl told the Guardian. “Our streams and rivers will choke with more pollution and coastal dead zones will continue to expand.” “…While the fuels are designed to decarbonize the transportation sector, their production eliminates wetlands and prairie land that act as carbon sinks, Hartl noted… “Ethanol production also pollutes water. Regulations around pesticides and fertilizers used in corn grown for ethanol fuel are much looser, which means much higher levels of dangerous chemicals run into surface and groundwaters. The pollution likely plays a significant role in dead zones in the Gulf of Mexico after pesticides flow down the Mississippi River, Hartl told the Guardian. Still, the EPA has failed to adequately scrutinize those issues, he added, and has failed to fully comply with the Endangered Species Act. It requires the agency to complete consultations with the US Fish and Wildlife Service and National Marine Fisheries Service to address harm to endangered species from land conversion, pesticides and fertilizer use.

FOX News: YouTubers disrupt Just Stop Oil meetings and protests: ‘Just Stop P–sing Everyone Off’
Lindsay Kornick, 7/25/23

“The radical climate organization Just Stop Oil faced a disruption of its own courtesy of British YouTubers Josh & Archie on Sunday,” according to FOX News. “In a video posted to Josh & Archie’s channel, the two explained that they had planted a mole within the climate group’s ranks to keep track of their upcoming events. One included an invitation to what appeared to be a party inside a church to celebrate Just Stop Oil’s achievements. Using the mole and other infiltrators, Josh & Archie’s team tied rape alarms to balloons and released them in the party, blasting a loud noise throughout the event… “Just Stop Oil responded to the video on Twitter writing, “We thoroughly enjoyed Josh & Archie’s prank yesterday. Great action design — nonviolent and ever so slightly disruptive. Their faith in democracy is touching, but the climate crisis needs urgent action today — we simply don’t have time to wait for a new government. Nonetheless, we wish them luck in their endeavour to bring people together, and hope they know that we are always happy to talk.” Just Stop Oil has been behind what many consider to be extreme protests in order to bring awareness to climate change. Most notably, members of the group march and block traffic on public roads, causing major public backlash and even violent confrontations.”

CLIMATE FINANCE

E&E News: How a ‘hidden pipeline’ of finance enables fossil fuel expansion
Avery Ellfeldt, 7/24/23

“Major U.S. banks have vowed in recent years to measure — and slash — the planet-warming emissions associated with their financing activities,” E&E News reports. “But there’s a “hidden pipeline” for fossil fuel finance that some Wall Street giants have downplayed, a new analysis argues, evading responsibility for a key role they play in the expansion of the carbon-intensive industry. That’s according to a report published Monday by the Sierra Club that looked at six of the largest U.S. banks: JPMorgan Chase, Wells Fargo, Bank of America, Morgan Stanley, Goldman Sachs and Citigroup. Rather than focus on the loans the banks gave to oil and gas companies, the green group analyzed the lenders’ equity and bond underwriting activity in the fossil fuel sector. It found that between 2016 and 2022, a whopping $266 billion — or 61 percent — of bank financing provided to 30 oil and gas companies came from the underwriting of bonds and equities.”

Sierra Club: Capital markets: The hidden pipeline for fossil fuel financing
Adele Shraiman, 7/24/23

“As the climate crisis worsens, pressure has mounted on banks to take responsibility for their role in financing the companies driving fossil fuel expansion and the climate crisis. In response, banks have begun to make commitments to address their climate impacts, and align their financing with the goal of reaching net-zero emissions by 2050,” the Sierra Club reports. “Among those who have made this commitment are the six largest Wall Street banks: JPMorgan Chase, Citi, Wells Fargo, Bank of America, Morgan Stanley, and Goldman Sachs. But despite their new climate pledges, the major US banks are among the world’s largest financiers of fossil fuels. Since 2016, the year after the Paris Agreement was adopted, the big six Wall Street banks have provided $433.8 billion in lending and underwriting to 30 of the largest fossil fuel expanders in the world. It comes perhaps as no surprise that the big US banks are among the worst fossil financiers in the world. Their climate plans fall far behind the best practices of their international peers, especially when it comes to setting robust emissions reduction targets and adopting policies restricting fossil fuel financing. But one element of strong climate plans is often overlooked — banks’ role in financing fossil fuels through capital markets. A new analysis by the Sierra Club on the role of big US banks in capital markets reveals a hidden pipeline for fossil fuel financing through the banks’ underwriting of bonds and equities for polluting companies. Though banks like to focus on lending and downplay their role in capital markets, the reality is that nearly two thirds (61%) of financing by the top US banks for fossil fuel expansion comes from underwriting bonds and equities. From 2016-2022, the six biggest US banks — JPMorgan Chase, Citi, Bank of America, Wells Fargo, Morgan Stanley, and Goldman Sachs — underwrote $266 billion in new bond and equity issuances for 30 of the top fossil fuel expansion companies. Banks are performing a sleight of hand, distracting investors and regulators with net-zero transition plans that are half-finished, while continuing to funnel money to fossil fuel companies via capital markets with limited scrutiny. Currently, only three of the six major Wall Street banks include bond and equity underwriting in their sectoral emissions reduction targets — JPMorgan Chase, Goldman Sachs, and Wells Fargo. The remaining three banks have so far chosen to only apply emissions reduction targets to lending activities.” 

Reuters: Canada releases framework to phase out inefficient fossil fuel subsidies
Nia Williams, 7/24/23

“Canada on Monday released a framework for eliminating inefficient fossil fuel subsidies, making it the first G20 country to deliver on a 2009 commitment to rationalise and phase out government support for the sector,” Reuters reports. “Climate policy analysts said the framework was an important step forward, but fell short by continuing to allow government support for oil and gas projects that plan to reduce emissions through technologies such as carbon capture and storage (CCS)… “Fossil fuel actives will be exempt from the framework if they fall into one of six categories: enabling significant carbon emissions reductions, supporting clean energy, providing essential energy to a remote community or short-term support for an emergency response, supporting Indigenous participation in fossil fuel activities or are projects that have a credible plan to reach net-zero by 2030… “Laura Cameron, policy advisor for the International Institute of Sustainable Development, praised the framework for using the internationally recognised World Trade Organisation definition of a subsidy, but criticised continuing support for oil and gas projects planning to build CCS… “The Government of Canada must quickly take the final step and end all fossil financing – without any loopholes for fossil gas, fossil hydrogen or CCS,” Environmental Defence program manager Julia Levin told Reuters in a statement.”

Bloomberg: BlackRock’s Shifts in Governance Leave ESG Foes Hungry for More
Clara Hudson, 7/21/23

“A series of recent moves by BlackRock Inc.—including bringing a top Saudi oil executive on its board—seem like steps likely to appease Republicans who have blasted the asset manager over what they say are woke ESG policies. Don’t bet on it,” Bloomberg reports. “BlackRock’s appointment of Saudi Aramco CEO Amin Nasser to its board—along with plans to give US investors more voting power at shareholder meetings and eschew the term ESG—aren’t going to stop those fighting against investment decisions tied to a company’s environment, social and governance policies, ESG consultants and lawyers tell Bloomberg. In fact, they say, the moves embolden critics. “It’s gone beyond BlackRock,” Douglas Chia, at an independent consulting firm Soundboard Governance, told Bloomberg. “Now that they’ve gotten traction, they can attack pretty much everybody and the whole concept of ESG and they don’t have to put a face to the name.” “…Conservative politicians don’t appear likely to back down against companies that have prominently backed ESG as the clash over climate policies and more continues to balloon. “I don’t see that trend changing,” Morris DeFeo, a partner at Herrick Feinstein, told Bloomberg… “Because the global economy is still heavily reliant on fossil fuels, the asset manager is right not to ignore the issue, DeFeo told Bloomberg… “Republican lawmakers have kept a close eye on BlackRock since it established itself as an ESG proponent. Earlier this month, House Republicans, including House Judiciary Committee Chairman Jim Jordan (Ohio) also sent letters to financial services giants, including BlackRock and State Street, saying their efforts to fight climate change might violate US antitrust laws… “Republicans say ESG pushes progressive policies that don’t prioritize financial metrics for shareholders. Democrats, meanwhile, have countered that investors want ESG information because it’s good for the performance of their investments. “Prohibiting investors and asset managers from considering ESG data is interfering with the free market: censoring relevant financial information is exactly what Congress should not be doing,” Minnesota Attorney General Keith Ellison said at a July 12 House Financial Services Committee hearing on ESG. At a Democratic-led committee roundtable on the same day, Maryland State Comptroller Brooke Lierman said it’s wrong to deny the investment risk associated with climate change.”

OPINION

Yankton Daily Press & Dakotan: Letter: Opposing The Pipeline
Rep. Carl Perry, Aberdeen District 3/Brown County, 7/24/23

“I am respectively requesting that the South Dakota PUC carefully reviews Summit Carbon’s application. Please do not allow this application to move forward in September if construction and operation of the pipeline will produce adverse effects on the environment and/or the citizens,” Rep. Carly Perry writes for the Yankton Daily Press & Dakotan. “…If built as Carbon Solutions intends, its pipeline will come within 750 feet or less of constituents. They do not want this pipeline which brings with it the potential for loss of life in the event it leaks or ruptures. CO2 pipelines differ from oil and gas; according to the Pipeline Safety Trust, they are more prone to rupture. We also do not want carbon sequestration, which is not well-regulated in South Dakota CO2 pipelines have never been constructed at the lengths proposed and raise grave concerns because they are under-regulated and pose numerous safety hazards and land use issues. Laying this pipe at 4 feet when the frost line is 4-6 feet just seems to be problematic. I am for property rights, I join the request: “No Eminent Domain for Private Gain.” Doing nothing is not an option! We need to work together for Property Rights!”

The Messenger: Carbon capture drives future for Iowa farmers
Joe Heinrich is executive director of the Smart Carbon Network, 7/24/23

“Farming is woven into the fabric of every community here in Iowa,” Joe Heinrich writes for The Messenger. “…That is why I helped start the Smart Carbon Network – a grassroots coalition that brings together agriculture, energy, academia, and community leaders who believe carbon capture is an essential tool to help Iowa farmers grow our economy and preserve the promise of agriculture for future generations… “That is why the Smart Carbon Network is working to separate fact from fiction and tell the true story of how carbon capture can benefit the economy, the ag community, and the environment… “Most importantly, CCUS will create thousands of jobs and drive billions of dollars of investment across the state, growing local rural economies and helping small businesses flourish. Some might say these opportunities sound great, but what about the impact on my land and the safety of my family and community? Good question. I’m a farmer and a family man. I care about my land and my neighbors. I was pleased to learn that CCUS is well-tested, well-regulated, and has an impressive safety record. The lines are buried underground so they won’t upset the beauty of the natural landscape or the ability to farm over them… “Once those facts are all on the table, I hope you’ll agree we have less to be concerned and far more to be excited for with CCUS.”

The New Republic: Are We Really Going to Put Polluters in Charge of Carbon Capture?
Kate Aronoff, 7/24/23

“Being able to capture carbon dioxide and store it underground has been a long-held dream of Republican and Democratic administrations alike,” Kate Aronoff writes for The New Republic. “…As the United States pours billions into the project of capturing carbon, though, it has few plans in place to ensure this gargantuan build-out of new infrastructure performs the heroic tasks that climate models say it will need to. There are also few guardrails against letting polluters have a say in how, exactly, that infrastructure gets built… “The Biden EPA has encouraged states to take charge of the permitting process, inviting them to apply for $50 million provided by the Bipartisan Infrastructure Act to administer that process. But last week, Texas Representatives Lloyd Doggett and Joaquin Castro, both Democrats, penned a letter to the EPA encouraging it to reject the RRC’s application. “It would simplify matters to just send money directly to Exxon and ask them to self-report if they feel like,” Doggett told me over the phone, noting the uncapped donations the commission’s entirely Republican members receive from the fossil fuel industry. So far, just two other states—North Dakota and Wyoming—have been given the authority to oversee the wells. Louisiana’s Department of Environmental Quality has also applied. This interest in CCUS from major oil- and gas-producing states isn’t a coincidence. For the fossil fuel industry, the technology represents the potential to continue expanding oil and gas production while saving face with more climate-conscious policymakers and investors. Just last week, ExxonMobil acquired the owner of the country’s largest network of carbon storage and transportation infrastructure… “As the federal government continues to roll out incentives to bring down emissions, the emerging fight over who will govern that burgeoning national network of carbon capture and storage facilities highlights the limits of coaxing the private sector into building critical, volatile infrastructure. The question is whether companies with long track records of delaying progress on climate change—and the politicians they donate to—should be trusted to oversee a major piece of solving it… “Rather than looking to maintain what little control they have over where and how carbon-management infrastructure gets built, meanwhile, federal officials—fearing the limits of their own capacity—are actively trying to give it away. Those powers risk being ceded to state agencies dripping in cash from fossil fuel interests, if not populated by actual fossil fuel shareholders. Putting governance over CCUS in those hands presents an on-ramp for polluters to set the rules of the road for a method of reducing emissions that they might lose interest in at any moment. What money is there, after all, in being a security guard for some rocks 10,000 feet underground?”

C.D.Howe & Associates: Ontario needs to play catch-up on carbon capture and storage
Beth (Hardy) Valiaho is Vice-President, Policy, Regulatory & Stakeholder Relations at the International CCS Knowledge Centre where Mac Walton is a senior policy analyst, and Charles DeLand is Associate Research Director at the C.D. Howe Institute, 7/24/23

“Is Ontario, Canada’s manufacturing heartland, going to miss out on the opportunity to decarbonize hard-to-abate sectors of its economy? To avoid doing so, it should strongly consider immediately doing what Alberta did in 2010 and BC announced in late 2022 – clarifying ownership of underground “pore” space in which to store carbon dioxide; specifically declaring all saline aquifer pore space vested in the name of the Crown,” Beth (Hardy) Valiaho, Charles DeLand and Mac Walton write for C.D.Howe & Associates. “Adoption of carbon capture, utilization, and storage (CCS/CCUS) technologies and processes can substantially reduce the emission intensity of economically critical parts of the Canadian economy like cement, steel, petrochemical production and refining, fertilizer, pulp and paper, mining, hydrogen, and power generation… “Ottawa’s push to keep pace with the US, UK, and European investments in CCS uses both carrots, including tax incentives and opportunities to generate offset, compliance, and voluntary credits, and corresponding sticks of tightening emission reduction requirements and increasing costs for carbon emissions. This is highlighted by the CCUS Investment Tax Credit whereby CCS projects can recover up to 50 percent (60 percent for direct air capture) of eligible costs incurred between 2022 and 2030, which will halve between 2030 and 2040. The bad news? Several provinces are still left out, including economically powerful Ontario, lacking the necessary CCS frameworks… “But provinces like Ontario need to move much faster and more efficiently. Major CCS projects typically take up to seven years to plan, build, and complete… “CCS investors now look west and south to jurisdictions with settled regulatory regimes in the US and western Canada. But all of Canada needs to be open. Establishing needed frameworks has a small relative cost and a large potential benefit. Ontario, and other provinces, need to move quickly – especially clarifying pore space ownership – to unlock potential CCS benefits.”

Forbes: In The Global LNG Race, America Holds All The Cards
Dan Eberhart is CEO of Canary, LLC, 7/24/23

“The United States and Qatar are duking it out for supremacy in the global liquefied natural gas (LNG) market. While Qatar’s star is rising, American producers have a few aces up their sleeves that could give them an edge,” Dan Eberhart writes for Forbes. “America and Qatar each have a 20% share of the 400 million tons a year LNG market. Australia is the other major exporter, but it is likely at or near its peak output due to gas reserve issues and growing domestic demand. Russia, meanwhile, had grand ambitions – and the vast reserves to fulfill them – but sanctions have crippled its prospects… “However, the United States is also experiencing a significant surge in LNG export capacity… “U.S. LNG export developers have finalized investment decisions (FIDs) in three expansion projects so far this year that would add about 44 million tons of LNG capacity annually. That’s nearly equal to Qatar’s mega-expansion projects. These include Venture Global’s Plaquemines LNG, Sempra’s Port Arthur LNG, and most recently NextDecade’s Rio Grande LNG. There is still a chance of more new projects this year as developers ride favorable winds in the global gas markets. Other potential projects in the queue include Energy Transfer’s Lake Charles LNG, Venture Global’s Calcasieu Pass 2 LNG, and New Fortress Energy’s “Fast LNG” concept… “U.S. producers have some key advantages in supplying global LNG markets, chiefly flexible contract terms and the competitive landscape among project developers… “However, U.S. producers are increasingly bringing in third parties to certify their natural gas emissions footprints, and a “responsibly sourced” gas movement is now in its early stages in the United States. That should help keep buyers in climate-conscious economies like Europe, South Korea, and Japan – all major LNG importers – interested in U.S. cargoes.”

Los Angeles Times: Editorial: Hoping fossil fuel giants will see the light on climate hasn’t worked. Change only comes with mandates and force
THE TIMES EDITORIAL BOARD, 7/21/23

“One of the most demoralizing things about the world’s response to the climate crisis is the fossil fuel industry’s continued success in blocking the pollution-cutting actions that are in the interest of all of humanity,” the Los Angeles Times Editorial Board writes. “The solution to our predicament couldn’t be clearer: We need to stop burning fossil fuels and pumping pollution into the atmosphere. So much needless human suffering and ecological destruction could be avoided if oil, coal and gas companies saw the existential threat their business model poses and moved quickly to transition into selling safer, less expensive and more reliable renewable energy. Too many powerful people in government, business and civic organizations have clung to the fantasy that some of the most powerful and destructive companies in history would eventually face reality and transform on their own initiative into clean and sustainable operations. But the last year has shown they are committed to profiting from pollution. While major oil companies post record profits, they are retreating on their climate pledges, lobbying to reverse climate policies and trying to derail the switch to electric vehicles. In California, the industry is spending tens of millions in an attempt to overturn health protections against drilling near homes and schools while misinforming the public about the high gas prices and their huge windfalls… “It would be delusional to expect the trajectory to change without a fundamental shift in our economic system, including moving on from the companies that profit from the continued extraction and burning of hydrocarbons. If only it were that easy, right? But politicians, who are often financially beholden to these planet-wrecking industries, have wasted decades with denial, delay tactics or outright hostility to anything more than incremental steps. It’s alarming to see the extent to which fossil fuel industries have captured institutions responsible for slowing climate change. This year’s United Nations climate summit in Dubai is being hosted by an oil executive, which is like the climate equivalent of letting arms dealers hold peace talks. Instead of propping up and legitimizing fossil fuel companies, we ought to be stigmatizing them as morally repugnant for continuing to add fuel to a house that’s on fire… “Remaining frenemies with fossil fuel companies in the naive hope they will see the light on climate change is a losing proposition for humanity. It’s good that more people are starting to recognize that, though it will take political leadership to kick the recalcitrant fossil fuel industry to the curb and build a sustainable economy right now.”