EXTRACTED: Daily News Clips 7/26/23

PIPELINE NEWS

• Cardinal News: Mountain Valley Pipeline opponents ask U.S. Supreme Court to uphold construction stays

• Law360: Allow Litigation Of MV Pipeline, Enviro Groups Tell Justices 

• WJLA: VIDEO: Fire erupts after explosion at TC Energy pipeline in Strasburg, Virginia

• Reuters: TC Energy isolates Columbia gas line section in Virginia, declares force majeure

• Public News Service: Critics: East Coast Explosion Reason to Deny NW Pipeline Expansion

• The Center Square: South Dakota utilities board begins hearing on Navigator CO2 pipeline

• KSFY: Public Utilities Commission begins Navigator CO2 pipeline hearing

• DRG News: South Dakota Public Utilities Commission begins hearing for Navigator CO2 Ventures carbon capture pipeline

• Pipeline Safety Trust: Guide to Public Comment: PHMSA’s CO2 Pipeline Safety Public Meeting

• KELO: Minnehaha County enters PUC fray on CO2 permit

• The Hawk Eye: Hancock Co. officials seek input on pipeline litigation

• WMAY: Co2 pipeline proponents need to address health and safety standards, notes Chicago Tribune report

• WXMI: Wildlife biologist remembers Kalamazoo River oil spill 13 years later

• FOX News: Republicans unveil sweeping effort to expand pipeline, energy infrastructure

• Press release: Chairs Rodgers and Duncan Unveil Draft Legislation to Modernize and Expand U.S. Pipeline Infrastructure

• WLNS: Crews race to finish 55mi gas pipeline before winter

WASHINGTON UPDATES

• E&E News: Dems seek DOJ probe of Big Oil for climate ‘deception’

• Reuters: White House Launches Methane Emission Task Force To Boost Leak Detection

• E&E News: Court tosses EPA permit order for troubled St. Croix refinery

• E&E News: ‘Fragile compromises’: Biden energy fights heat up in court

• E&E News: Huffman Joins GOP-Led Group To Retool Endangered Species Act 

• Washington Post: Donald Trump says the Federal Energy Regulatory Commission should be subject to the president

• E&E News: Outdoors Businesses Call On Biden To Designate More Monuments

 STATE UPDATES

• E&E News: Zero oil companies bid in BLM’s Nevada lease sale

EXTRACTION

• Petroleum Economist: Cenovus sees major role in reducing emissions

• The Hill: UN begins extracting oil from tanker, mitigating risk of environmental catastrophe 

• LNG Prime: Delfin expects to take FID on first floating LNG producer in October

• CNN: ‘Climate change is not a tragedy, it’s a crime’: The team taking on Big Oil

CLIMATE FINANCE

• Guardian: Property insurance disappears for Louisianans – but not for gas

  facilities

• Bloomberg: Warren Buffett Lifts Fossil Fuel Bets

• Bloomberg: JPMorgan, Citi Listed as Top Oil and Gas Banks in the Amazon

OPINION

• National Constitution Center: Did Congress invade the judicial power to protect a pipeline?

• Bloomberg: Anti-ESG Politicians Cost Their States and Cities Billions

• Globe and Mail: Billions given to Volkswagen and Stellantis – what about oil and gas’s carbon initiatives?
  

PIPELINE NEWS

Cardinal News: Mountain Valley Pipeline opponents ask U.S. Supreme Court to uphold construction stays
Matt Busse, 7/25/23

“Environmental groups opposing the Mountain Valley Pipeline responded Tuesday to the pipeline company’s emergency appeal to the U.S. Supreme Court, saying recent lower court decisions halting construction activity on the project should remain in place while legal challenges to the pipeline remain unresolved,” Cardinal News reports. “In its response, the nonprofit conservation group The Wilderness Society noted that the 4th U.S. Circuit Court of Appeals is scheduled to hear oral arguments Thursday over whether pending cases against the pipeline should be dismissed. It said upholding the stay of construction activity in the society’s case — which involves whether the pipeline can cross through the federally protected Jefferson National Forest — would show appropriate deference to the appeals court. The Wilderness Society said that the three-judge panel of the 4th Circuit was within its rights to issue the stay and that Mountain Valley Pipeline would not be “irreparably harmed” by it. “The Fourth Circuit is taking its constitutionally assigned task seriously,” The Wilderness Society wrote. In a separate response, a coalition of environmental groups including Appalachian Voices and the Sierra Club said Mountain Valley had not shown that circumstances were extraordinary enough to merit the Supreme Court’s intervention in its case. The groups are challenging a federal opinion that states the pipeline won’t harm protected endangered species along its route. “MVP fails to show that it will suffer any harm beyond temporary financial loss as a result of the stay, and the equities weigh heavily in favor of avoiding harm to protected species,” they wrote. The responses Tuesday mean both proponents and opponents have now made their voices heard to Chief Justice John Roberts regarding the controversial $6.6 billion, 303-mile, 42-inch-diameter natural gas pipeline from West Virginia into Virginia. It’s unclear when Roberts will next act on the case; the full court is on summer recess… “On Tuesday, a group of four “constitutional law and federal jurisdiction scholars with expertise in the separation of powers” — William Araiza, Erwin Chemerinsky, Caprice Roberts and Howard Wasserman — filed an amicus brief in support of the environmental groups.”

Law360: Allow Litigation Of MV Pipeline, Enviro Groups Tell Justices 
Juan Carlos Rodriguez, 7/25/23

“Congress impermissibly put its finger on the scale in a legal dispute between Mountain Valley Pipeline developers and opponents by way of a statutory provision intended to hasten the project’s completion, environmentalists told the U.S. Supreme Court on Tuesday,” Law360 reports. “The Wilderness Society and a separate coalition of green groups led by Appalachian Voices are urging the high court to deny Mountain Valley Pipeline LLC’s emergency application to overturn the Fourth Circuit’s orders issued earlier this month that blocked further construction of the 303-mile pipeline based on the groups’ challenges to approvals issued by the U.S. Forest Service, the U.S. Bureau of Land Management and the U.S. Fish and Wildlife Service. The pipeline stretches across Virginia and West Virginia. MVP and its supporters were bolstered by Congress in May when lawmakers passed the Fiscal Responsibility Act that included a provision authorizing all necessary permits for the pipeline and prohibiting courts from reviewing approvals issued by federal agencies. The Wilderness Society told the Supreme Court that the Fourth Circuit is right to continue to assert jurisdiction over the litigation, despite the law’s language.”

WJLA: VIDEO: Fire erupts after explosion at TC Energy pipeline in Strasburg, Virginia
Kate Davison & Ida Domingo, 7/25/23

“A large fire was spotted Tuesday morning off Interstate 81 in Shenandoah County, Virginia. Shenandoah County fire officials said there was an explosion on a TC Energy Pipeline,” WJLA reports. “Shenandoah County Fire and Rescue said the Columbia Gas Transmission Pipeline has been shut down. 7News anchor Dave Lucas captured this video of large flames and smoke from John Marshall Highway: Nearby, all northbound and southbound lanes of I-81 mile marker 295 in Strasburg were closed for a short time but have since reopened, according to the Virginia Department of Transportation (VDOT). Drivers in the area should expect delays. Officials said no injuries were reported. A spokesperson from TC Energy released the following statement top 7News: “At approximately 8:41 a.m., EDT, we detected a pressure drop on our Columbia Gas Transmission Pipeline located alongside Interstate 81 in Strasburg, Virginia. We have since been notified of a fire in the vicinity and are working with local authorities to investigate and respond. TC Energy’s emergency response procedures were activated upon notification. No injuries have been reported and we are currently assessing the impacts. As a precaution, the pipeline section has been isolated.”

Reuters: TC Energy isolates Columbia gas line section in Virginia, declares force majeure
7/25/23

“TC Energy’s Columbia Gas Transmission Pipeline on Tuesday declared a force majeure and isolated a section of its “Line VB” pipeline after detecting a pressure drop due to an unplanned incident along Interstate 81 in Strasburg, Virginia,” Reuters reports. “Canada’s TC Energy, best known for its Keystone oil pipeline, in the latest update on its website said the fire along the natural gas pipeline corridor has been extinguished, but did not confirm if the pressure drop was caused by the fire. There were no reported injuries to workers or members of the public and section of the affected pipeline remains shut, the company said. “Have established an approximately 1,650-foot (503-m)response radius to ensure the safety of the local community and to support our response efforts; we are asking that the public avoid the area until further notice,” it said… “A source told Reuters that the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) is investigating the rupture associated with the 26-inch natural gas transmission pipeline. TC Energy said on Monday it will divest a 40% interest in its Columbia Gas Transmission and Columbia Gulf Transmission pipelines for C$5.2 billion ($3.95 billion) to Global Infrastructure Partners (GIP).”

Public News Service: Critics: East Coast Explosion Reason to Deny NW Pipeline Expansion
Eric Tegethoff, 7/26/23

“People opposed to expanding a fracked gas pipeline in the Northwest are pointing to the explosion of a pipeline in Virginia as another reason to reject the project,” Public News Service reports. “The Federal Energy Regulatory Commission will decide tomorrow whether to approve expansion of Gas Transmission Northwest, or GTN Xpress, which moves fracked gas from Canada to California. On Tuesday, a pipeline owned by the company behind GTN Xpress, TC Energy, ruptured and caught fire 80 miles from Washington, D.C., causing the closure of a nearby interstate. Dan Serres, conservation director for Columbia Riverkeeper, argued the rupture provides ample reason to halt the new pipeline. “This should be all the evidence that FERC needs to press the pause button and either deny GTN Xpress or withdrawal it from the agenda,” Serres told PNS. The cause of the pipeline explosion in Virginia is still unknown. No injuries were reported. FERC commissioners will vote on GTN Xpress tomorrow at 10 a.m. ET. In a statement, TC Energy said natural gas is a critical component of the U.S.’s long-term energy needs and there is strong demand for it in the Northwest. Serres pointed out GTN Xpress runs counter to climate goals set in Washington, California and Oregon, through which the pipeline runs. Spills are a concern as well. In December, a TC Energy owned pipeline spilled 588,000 gallons of oil in Kansas. Serres also noted the rupture in Virginia raises other concerns about a similar situation happening in the fire prone areas of the Northwest… “Opponents are urging Sen. Patty Murray, D-Wash. and Sen. Maria Cantwell, D-Wash., to oppose the project. Their colleagues in Oregon have voiced opposition, along with the attorneys general of Washington, California and Oregon, and the governors of Washington and Oregon.”

The Center Square: South Dakota utilities board begins hearing on Navigator CO2 pipeline
Kim Jarrett, 7/25/23

“The South Dakota Public Utilities Commission began several days of hearings over a proposed carbon dioxide pipeline traveling through 112 miles of the state,” The Center Square reports. “…The project is supported by several unions that say the pipeline would bring hundreds of jobs to the state. Mike Mikich of the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada said his workers could log about 16,500 manpower hours. The estimated earnings are more than $1 million in wages and benefits. Landowners are opposed to the project. “This proposed project is 112 miles of disruption and destruction of the very way of life of thousands of South Dakotans,” said Brian Jorde, an attorney representing landowners in the pipeline’s path during the hearing. “It will have a negative economic impact on their farming and ranching and other businesses.” “…Jorde, who represents landowners for both projects, said farmers don’t want the pipelines. “The project likes to speak about the importance to farmers,” Jorde said. “Not a single farmer is here to testify to that fact. Not a single farmer is here on the Navigator witness list to talk about that or support that allegation. It’s not important to farmers.”

KSFY: Public Utilities Commission begins Navigator CO2 pipeline hearing
Beth Warden, 7/25/23

“The South Dakota Public Utilities Commission is set to hold a public hearing on the Summit Carbon Solutions CO2 pipeline in September, but there’s another pipeline with eyes on South Dakota,” KSFY reports. “The PUC began the hearing process for the Navigator pipeline on Tuesday. This is the first evidentiary hearing for a CO2 pipeline applicant in the state of South Dakota… “During Tuesday’s testimony, Dakota News Now learned that both POET and Valero ethanol plants will own and install the carbon capture equipment at their site. The CO2 molecules in the pipeline would still be owned by the ethanol plants. One of the matters discussed today was a set of motions from both Minnehaha and Moody counties, allowing the counties to respond to any challenge to their ordinances. Commission member Chris Nelson commented on the motions. ”The burden is on Navigator to prove that this statute should be invoked by us. They are going to make that case to us over the course of the next two weeks, and if there’s sufficient time in the next two weeks for Minnehaha and Moody counties to provide their rebuttal argument, let’s do it in these next two weeks,” Nelson said… “Commissioner Nelson said he hopes the PUC will issue its decision on the Navigator CO2 pipeline the first week of September.”

DRG News: South Dakota Public Utilities Commission begins hearing for Navigator CO2 Ventures carbon capture pipeline
Jody Heemstra, 7/25/23

“The first state hearing for a carbon capture pipeline began this morning (July 25, 2023) before the South Dakota Public Utilities Commission meeting in Fort Pierre,” DRG News reports. “…After more than 90-minutes of motions, several of the parties involved made opening statements… “Lawyer Brian Jorde represents landowners who are opposed to the pipeline. He says it is not needed and will bring “112 miles of disruption and destruction” to South Dakota. He says supporters like to speak about the importance of the project to farmers. The hearing is expected to last eight days.”

Pipeline Safety Trust: Guide to Public Comment: PHMSA’s CO2 Pipeline Safety Public Meeting
7/25/23

“This document, prepared by the Pipeline Safety Trust, serves as a guide for members of the public, organizations, and coalitions to comment on the Pipeline and Hazardous Materials Safety Administration (PHMSA) public docket for the CO2 Pipeline Safety Public Meeting held in Des Moines, Iowa on May 31st and June 1st 2023. Public comment is incredibly important as it will help inform PHMSA’s forthcoming rulemaking on CO2 pipelines. Comments submitted to this docket will roll over into the Notice of Proposed Rulemaking (NPRM) docket scheduled to be published in January 2024. It is critically important that comments are posted into this docket sooner rather than later as they will help inform the rulemaking process ahead of the NPRM. Below is a guide on how to comment on this public docket as well as some suggestions on what to include in a comment. For more information about the comment content suggestions, see resources below. Summary for Policymakers; Full Report on CO2 Pipelines; PST Comment on Public Meeting; PST Guide to Pipeline Safety Rulemaking. We appreciate your interest in submitting a comment on this docket.”

KELO: Minnehaha County enters PUC fray on CO2 permit
Bob Mercer, 7/24/23

“The South Dakota Public Utilities Commission should first decide whether to allow the Navigator carbon-dioxide pipeline and then resolve later a broader question regarding legality of counties’ restrictions on transmission pipelines, according to lawyers representing Minnehaha County government,” KELO reports. “The state commission opens its evidentiary hearing Tuesday morning on the Navigator project. Attorneys Alex Hagen and Claire Wilka filed the Minnehaha County Commission’s motion Friday calling on the state commission to delay its decision on county zoning ordinances. “The PUC need not – and should not – rush to make a determination on an issue this significant, which goes beyond the merits of Navigator’s individual application and touches on the bedrock principles of the democratic process and local self-governance,” Minnehaha County’s accompanying brief says. Instead, the county commission wants the state commission to hold Navigator’s June 26 request that the permit decision pre-empt county ordinances and set a separate hearing after the permit has been decided so that “all appropriate parties” can be heard… “Brian Jorde, one of the attorneys representing those landowners, recently told the state commission that University of St. Thomas professor John Abraham was his side’s “most important” witness. He wanted Abraham, an expert in thermal-fluid sciences, to be able to testify remotely because of a scheduling conflict. The state commission however set July 27 as the date for Abraham to testify in person. Jorde told KELOLAND News that landowners were still hopeful that Abraham could appear in person to give his opinion whether Navigator’s plume modeling and dispersion analysis were sufficient… “In a further development, the PUC’s staff attorneys on Friday asked the state commission to rule beforehand on excluding testimonies submitted on behalf of dozens of landowners after the filing deadline had passed.

The Hawk Eye: Hancock Co. officials seek input on pipeline litigation
Joy Swearingen, 7/26/23

“Hancock County residents will have a chance to weigh in on how the county should proceed with court action against the proposed carbon dioxide pipeline that could run through the county,” The Hawk Eye reports. “…At the regular county board meeting July 18, State’s Attorney Bobbi James reported that the county has already spent $34,000 in shared litigation costs. She estimated another $5,000 would be needed this year for action that will occur in the fall. “We are kind of backed into a corner here,” said Wayne Bollin, chairman of the county finance committee. “We have to spend taxpayer money to defend our landowners. Whether we like it or not here we are being forced to do something. We need to ask taxpayers what they want us to do. It is a lot of money.”

WMAY: Co2 pipeline proponents need to address health and safety standards, notes Chicago Tribune report
7/25/23

“The Chicago Tribune reports that proponents of massive new carbon dioxide pipeline projects need to address what they say are alarming gaps in health and safety regulations,” according to WMAY. “For instance, there are no state or federal requirements that pipelines be located away from a home, school or hospital; there is no requirement that CO2 has any smell added to it to help people detect a leak, and there is no limit on impurities in the gas that could promote corrosion of pipelines. A leak in Mississippi in 2020 sent more than 40 people to the hospital and resulted in a fine for the pipeline operator of $2.8 million according to the terms of an order filed late last week. The operator of a locally proposed pipeline – Navigator CO2 Ventures – wants to run 39 miles of pipeline through Sangamon County. The company made a presentation to residents earlier this month, in which it pointed out that the pipeline has 24/7 monitoring, a lockdown system that would prevent a burst from spreading further up or down the line, and bi-weekly air monitoring by plane or drone.”

WXMI: Wildlife biologist remembers Kalamazoo River oil spill 13 years later
Yasmeen Ludy, 7/25/23

“Thirteen years ago the Kalamazoo River was unrecognizable after an Enbridge Energy pipeline burst. Crude oil gushed into the Talmadge Creek and the river,” WXMI reports. “If you told wildlife biologist Joshua Otten at least 1 million gallons of oil spilled into the river, he says he probably wouldn’t believe you if he wasn’t there to see it himself. “There was so much oil that had gotten pushed up into the floodplains. It starts sticking to all of the vegetation, the trees, any of the down woody debris that was in the river; all of that would have this tacky oil to it,” he recalled… “According to Otten, due to the BP spill in the Gulf of Mexico, not many people realized that this was the largest inland freshwater oil spill to happen in the U.S. For the next two years, he lived in Southwest Michigan helping rescue the river’s wildlife… “He remembered that turtles were the most vulnerable species out there. “Those turtles would bask, come out of the water every day to get sun. … They would climb up on the woody debris, the banks that had that oil, so they’d pick up oil from that. And then they would also pick up oil that was floating in the water column,” he says. They spent the next 12 months catching and cleaning over 3,000 turtles. While residents that lived along the river had to deal with things like black oil on their lawn, headaches from the smell, and even having to evacuate, he says it didn’t stop people from contributing to save the river.”

FOX News: Republicans unveil sweeping effort to expand pipeline, energy infrastructure
Thomas Catenacci, 7/25/23

“Republican leaders on the House Energy and Commerce Committee are unveiling a draft of legislation aimed at streamlining permitting for pipelines and other related energy projects,” FOX News reports. “The Pipeline Safety, Modernization, and Expansion Act of 2023 — authored by Energy and Commerce Committee Chairwoman Cathy McMorris Rodgers, R-Wash., and Energy Subcommittee Chairman Jeff Duncan, R-S.C. — focuses on four key pillars: expanding pipeline infrastructure, lowering prices, reducing emissions and strengthening pipeline safety. “Pipelines are among the safest and most efficient ways to move the fuels that heat our homes, power our cars, and power our nation’s economy,” McMorris Rodgers and Duncan said in a joint statement to Fox News Digital.  “Yet President Biden and Democrats are proactively working to shut down America’s pipelines and prevent the necessary maintenance to ensure pipelines are operating safely and efficiently,” they continued. “The administration is also making it more difficult for new infrastructure to be built. This is preventing critical resources from getting to people who need them most.” Among its key provisions, the legislation would authorize the Federal Energy Regulatory Commission (FERC) to issue any federal permit required for the construction, modification, expansion, inspection, repair or maintenance of a pipeline. It would also enable individuals to request FERC make a final decision on a permit if the federal agency tasked with permitting a pipeline fails to complete a proceeding within one year… “And the bill would further require PHMSA to finalize safety standards for carbon dioxide transportation pipeline facilities no later than one year from the date of enactment. It also clarifies the authority of the Environmental Protection Agency to identify areas suitable for underground sequestration of carbon dioxide.”

Press release: Chairs Rodgers and Duncan Unveil Draft Legislation to Modernize and Expand U.S. Pipeline Infrastructure
7/25/23

“House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and Energy, Climate, and Grid Security Subcommittee Chair Jeff Duncan (R-SC) today unveiled draft legislation, the Pipeline Safety, Modernization, and Expansion Act of 2023, which will help unleash clean, affordable American energy. Chairs Rodgers and Duncan released the following statement: “Pipelines are among the safest and most efficient ways to move the fuels that heat our homes, power our cars, and power our nation’s economy. Yet President Biden and Democrats are proactively working to shutdown America’s pipelines and prevent the necessary maintenance to ensure pipelines are operating safely and efficiently. The administration is also making it more difficult for new infrastructure to be built. This is preventing critical resources from getting to people who need them most… “Discourages attacks on critical pipeline infrastructure by strengthening penalties for damaging, destroying, or impairing the operation of pipeline facilities. Enhances federal and state pipeline safety programs by increasing funding to state pipeline safety inspectors and implementing innovative accident prevention initiatives. Preserves Americans’ freedom to choose which energy resources best meet their needs by prohibiting states and local governments from banning natural gas or other fuels that people rely on. Directs Pipeline and Hazardous Materials Safety Administration (PHMSA) to implement cutting edge technology innovation programs that will modernize regulatory processes and unlock America’s pipeline potential, while also strengthening pipeline safety. Expands America’s transportation capacity, which will minimize risks of disruption and price fluctuations. Establishes strong safety regulations for carbon dioxide pipeline transportation. Encourages investment in carbon capture and storage technologies to reduce emissions. Expands America’s Pipeline Infrastructure: Allows the Federal Energy Regulatory Commission (FERC) to grant Federal authorizations to modernize existing pipelines and construct new pipelines in compliance with safety regulations. This will streamline the permitting process and ensure that developers are able to secure the permits necessary for pipeline projects without the federal government indefinitely stalling the process.”

WLNS: Crews race to finish 55mi gas pipeline before winter
McKoy Scribner, 7/25/23

“A pipeline replacement project spanning five counties is looking to improve safety and reliability according to Consumers Energy, the ones behind the plan,” WLNS reports. “Crews are working to replace a 55-mile-long pipeline dating back to the 1940s. Officials said it will help move natural gas more quickly, safely and efficiently. It’s a two-phase project and it is expected to cost more than $500 million. The new pipeline is bigger than the old one by 16 inches in diameter and officials added each part of the construction phase must be completed in time for the upcoming heating season. “This is something that our customers need, it maintains our deliverability for our customers and reliability,” Senior Project Manager Juliet Matko told WLNS. “So, this is a proactive pipeline replacement. This original pipeline was installed in the late ’40s and so we’re going through and replacing the pipeline to current codes and standards and specifications.”

WASHINGTON UPDATES

E&E News: Dems seek DOJ probe of Big Oil for climate ‘deception’
Emma Dumain, 7/26/23

“Congressional Democrats want the Justice Department to investigate whether the world’s biggest oil and gas companies are guilty of perpetuating a decadeslong, highly sophisticated public relations campaign specifically designed to downplay their contributions to global warming,” E&E News reports. “Their request, that Attorney General Merrick Garland determine whether Shell PLC, Exxon Mobil Corp. and “potentially other fossil fuel companies … violated federal laws and constituted a corrupt enterprise,” could signal that Democrats are ready to escalate a war against the fossil fuel industry that’s been brewing for some time. In a letter to Garland sent Tuesday — led by House Democratic Caucus Vice Chair Ted Lieu of California and Sen. Richard Blumenthal (D-Conn.) and co-signed by nearly two dozen colleagues in both chambers — the lawmakers reference a tranche of internal documents showing oil majors were likely aware their products would lead to a dangerous warming of the planet, but did nothing to reverse course. At the same time, the documents suggest the companies were working to downplay warnings about climate change and their role in hastening it. Numerous lawsuits over the years have tried to take aim at these alleged activities, but none so far at the federal level.”

Reuters: White House Launches Methane Emission Task Force To Boost Leak Detection
7/25/23

“The Biden administration on Wednesday launched a Cabinet-level task force that will corral federal agencies to use technology to detect leaks of the potent greenhouse gas methane and help federal and local officials enforce methane regulations,” Reuters reports. “The task force was launched at the same the White House is holding its first methane summit, which is gathering federal, state, tribal and local leaders involved in programs targeting methane emissions, as well as companies that have developed methane detection technology like optical gas imaging cameras and satellites. Although short-lived compared with carbon dioxide, methane is 80 times more potent and is responsible for nearly a third of planetary warming so far, making it a target for policy-makers seeking to combat climate change.”

E&E News: Court tosses EPA permit order for troubled St. Croix refinery
Pamela King, Sean Reilly, 7/25/23

“A federal appeals court said Tuesday that EPA went too far when it subjected an oil refinery in the U.S. Virgin Islands to a costly, multiyear permitting process in order to restart operations,” E&E News reports. “The ruling issued Tuesday by the 3rd U.S. Circuit Court of Appeals deals a blow to the Biden administration’s efforts to ease the burden of low-income areas and communities of color that are disproportionately affected by pollution. After a temporary restart of the St. Croix refinery in 2021, an oily mist descended on the majority-Black community near the facility. Last year, EPA reversed course on prior determinations for the facility and notified the operator, Port Hamilton Refining and Transportation LLLP, that a lengthy and expensive prevention of significant deterioration permit would be required before the site could be reopened. Port Hamilton sued, arguing that EPA’s action went beyond the bounds of the agency’s power under the Clean Air Act. “We agree that EPA has exceeded its statutory authority,” wrote Senior Judge D. Brooks Smith, who was appointed during the George W. Bush administration… “EPA told E&E it is reviewing the court’s decision and determining next steps. “EPA remains committed to ensuring that the refinery complies with environmental laws that protect public health,” spokesperson Shayla Powell told E&E. “EPA will continue its efforts to prevent environmental harms in this community and disproportionate burdens to its residents.” “…The refinery, previously known as Limetree Bay and located in a mostly Black and Latino community on St. Croix, had been a recurrent source of oil spills and alleged Clean Air Act violations when previously open, from 1966 to 2012.”

E&E News: ‘Fragile compromises’: Biden energy fights heat up in court
Niina H. Farah, 7/26/23

“Federal courts will spend the last half of the year weighing the fate of some of the Biden administration’s biggest climate and energy goals,” E&E News reports. “Much of the litigation targets deals the Biden administration has made with fossil fuel proponents in places like Alaska’s North Slope and the Gulf of Mexico as the White House attempts to rapidly increase renewable energy production. Environmentalists say those negotiations have undermined the president’s professed climate goals… “At the Supreme Court, the justices will have the chance to revive a long-stalled gas pipeline that became a focal point of congressional wrangling over the debt ceiling. The court could also choose to take up red states’ challenge to the Biden administration’s estimate of the societal cost of spewing greenhouse gases, as well as a fight over a federal energy rule that could ripple through a broader battle over agency powers. In federal courts on the East and West coasts, judges will wade into thorny legal fights over two major oil and gas developments that have received a thumbs-up from the Biden administration — over the objection of environmentalists… “Here are five courtroom energy showdowns to watch in the last half of 2023. 1. Mountain Valley pipeline; 2. Willow oil project; 3. Offshore drilling – In another battle over the Biden administration’s backing of oil and gas development, the D.C. Circuit will decide whether an environmental review should still be required for an offshore lease sale that was reinstated under Congress’ landmark 2022 climate law… “4. Social cost metric – Republican-led states are leading a long-shot bid at the Supreme Court to stop the Biden administration from setting a price on greenhouse gas emissions… “5. FERC fight over agency power – The Supreme Court is also considering whether to take up a renewable energy fight that ties into a broader battle over federal agencies’ regulatory authority… “Conservative lawyers have asked the justices to limit or toss out Chevron in a separate case to be argued this fall. A ruling to overturn the doctrine would upend 40 years of legal precedent — and significantly weaken agencies’ legal defense of their regulatory powers.”

E&E News: Huffman Joins GOP-Led Group To Retool Endangered Species Act 
Nidhi Prakash, 7/25/23

“California Democratic Rep. Jared Huffman, one of the House’s most outspoken progressives, has joined a Republican-led group looking to overhaul the Endangered Species Act,” E&E News reports. “House Natural Resources Republicans invited Democrats to be part of the effort. Huffman told E&E he now expects to be included in the group’s work. “I take you at your word that the Working Group is dedicated to a truly bipartisan, good faith review of the ESA and I look forward to collaborating on ideas to improve the effectiveness of the ESA,” Huffman wrote in a letter to Chair Bruce Westerman (R-Ark.) this week. “Now that I have accepted your invitation to participate, I trust that you will fully include me and my staff in all meetings, correspondence, and activities of the ESA Working Group going forward,” wrote Huffman, who is the top Democrat on the Water, Wildlife and Fisheries Subcommittee. Westerman told E&E in a statement that the group will “welcome bipartisan engagement and look forward to finding solutions to fix a well-meaning law that’s broken and not as effective as it could be.”

Washington Post: Donald Trump says the Federal Energy Regulatory Commission should be subject to the president
Maxine Joselow, 7/26/23

“Former president Donald Trump has campaigned on a pledge to rein in “out-of-control” independent agencies if voters return him to the White House in 2025. That pledge applies to the Federal Energy Regulatory Commission, a five-member independent agency with significant sway over the nation’s climate and energy policies,” the Washington Post reports. “…The plan is the brainchild of Russell Vought, who led the White House Office of Management and Budget during the Trump administration and now runs a think tank called the Center for Renewing America. Vought and other Trump allies have already drafted an executive order requiring independent agencies to submit actions to the White House for review, the New York Times reported last week, citing people familiar with the matter. Trump’s campaign website only cites the Federal Communications Commission and the Federal Trade Commission as examples of agencies that the executive order would affect. But a spokeswoman for the Center for Renewing America confirmed that the plan would apply to FERC.  “FERC is an independent agency and thus would be included in any sort of independent agency executive order,” the spokeswoman told the Post.

E&E News: Outdoors Businesses Call On Biden To Designate More Monuments 
Scott Streater, 7/25/23

“The outdoors recreation industry and businesses are joining forces to try to convince President Joe Biden to use his authority and designate potentially millions of acres of federal lands as national monuments,” E&E News reports. “The Mobilizing for Monuments campaign launched Monday comprises a coalition of outdoors businesses and advocates including REI Co-op, the North Face, Patagonia and the Outdoor Industry Association. The new campaign launched just hours after the White House announced that Biden will sign a proclamation Tuesday designating a national monument to commemorate Emmett Till, the Black teenager whose 1955 killing in the Mississippi Delta became a catalyst for the civil rights movement. The Mobilizing for Monuments campaign is focusing on helping convince Biden to designate the Baaj Nwaavjo I’tah Kukveni Grand Canyon National Monument in Arizona and the Dolores River Canyon Country National Monument in Colorado, as well as expand the San Gabriel Mountains National Monument, and the Berryessa Snow Mountain National Monument, both in California. Calls for White House action on all four proposals have been underway for weeks.” 

STATE UPDATES

E&E News: Zero oil companies bid in BLM’s Nevada lease sale
Heather Richards, 7/26/23

“The Biden administration’s oil auction in Nevada on Tuesday failed to tempt a single bidder, a bust that could amplify calls for the Silver State to focus more on renewable energy over oil,” E&E News reports. “The Bureau of Land Management offered nearly 5,000 acres for potential oil and gas development Tuesday in the south-central deserts of Nevada. The sale, only the second in Nevada since President Joe Biden took office in 2021, comes on the heels of the Interior Department releasing draft regulations last week to formalize higher royalties mandated under the Democrats’ 2022 climate law, the Inflation Reduction Act, and enact new priorities that could mean fewer acres of public land end up on the auction block. In the wake of the unenthusiastic response to the oil sale Tuesday, Kathleen Sgamma, president of the Western Energy Alliance, told E&E BLM had simply offered too little land to generate interest, having cut about 60,000 acres originally proposed by oil and gas speculators in Nevada.”

EXTRACTION

Petroleum Economist: Cenovus sees major role in reducing emissions
7/25/23

“Cenovus is an integrated oil and gas company headquartered in Canada, and a diamond sponsor of the 24th World Petroleum Congress, taking place in Calgary between 17 and 21 September,” Petroleum Economist reports. “Former COO Jon McKenzie took over as president and CEO in April this year. Here he talks to Carbon Economist about the future of the energy sector… “We have a target to reduce our absolute scope one and two emissions across our operations by 35% by year-end 2035, on a net equity basis, as we build toward our long-term ambition for net-zero emissions by 2050. And this year we announced a methane milestone to reduce absolute methane emissions in upstream operations by 80% by year-end 2028, from a 2019 baseline. This will help us make additional meaningful reductions in the near term as we also apply and advance technologies to enable future decarbonisation of our operations. We expect to spend about $1b in our five-year business plan on GHG emissions reduction opportunities. This includes CCS we are progressing at our Minnedosa ethanol plant, Elmworth gas plant, Lloydminster upgrader and Christina Lake oil sands asset… “How important are technologies such as CCS and hydrogen in the oil and gas industry of the future?… “All technologies are going to be needed to get us where we need to go to achieve our targets and net-zero ambition. CCS is one where we see great opportunities, and the ability for Alberta and Canada to be a global leader… “We are also working closely with governments to ensure a financial and regulatory model that supports decarbonisation efforts to achieve net-zero emissions by 2050. Is the policy regime in Canada providing adequate incentives for producers to reduce their emissions and invest in new technologies, or can more be done? McKenzie: It is imperative the right policies are in place to ensure the competitiveness of our industry, and it is something we continue to work on with our provincial and federal governments. Without the right policy and incentive mix, capital is going to flee to other jurisdictions.”

The Hill: UN begins extracting oil from tanker, mitigating risk of environmental catastrophe 
CALEIGH KELLY, 7/25/23

“The United Nations announced Tuesday morning that it began operations to remove oil from a deteriorating supertanker, the first step toward preventing a natural disaster from unfolding in the Red Sea,” The Hill reports. “In the absence of anyone else willing or able to perform this task, the United Nations stepped up and assumed the risk to conduct this very delicate operation,” U.N. Secretary–General António Guterres said about the project in a press statement. FSO Safer, the 47-year-old tanker, has been a burden on the U.N.’s shoulders since 2015, when Yemen halted maintenance on the vessel due to an outbreak of a civil war in the country.  As a result, FSO Safer has been abandoned and stranded off the coast of Yemen for more than 8 years… “The U.N.’s project to prevent a colossal oil spill by extracting the tanker’s 48 million gallons of oil was initially launched in 2019, but they also faced pushback from the Houthis when trying to access FSO Safer… “After a drawn out process, the U.N. was finally able to begin offloading oil from FSO Safer with the help of a $10 million donation from the U.S. The U.N. anticipates the operation will last 19 days. “This is an all-hands-on-deck mission and the culmination of nearly two years of political groundwork, fundraising and project development,” Guterres said in the press statement. 

LNG Prime: Delfin expects to take FID on first floating LNG producer in October
7/25/23

“Delfin Midstream, the US developer of a floating LNG export project in the Gulf of Mexico, expects to take a final investment decision on its first floating LNG producer in October this year,” LNG Prime reports. “Earlier this year, Delfin said in its March corporate presentation that it expected that technical, commercial, and financing workstreams for the first FLNG were “on track” for an FID in the second quarter. Delfin plans to install up to four self-propelled FLNG vessels that could produce up to 13.3 mtpa of LNG or 1.7 billion cubic feet per day of natural gas as part of its Delfin LNG project… “According to a filling with FERC dated July 21, Delfin’s unit Delfin LNG expects to execute “very soon” a binding LNG offtake agreement with Devon as part of the larger agreement announced in September… “Taken together, all these four LNG offtake agreements will provide revenue to Delfin LNG of about $18 billion over their contract terms, the firm told FERC. Last year, the US FERC granted a one-year extension of time, to September 28, 2023, to Delfin to construct and make available for service the LNG project’s onshore facilities. Now Delfin is asking FERC to extend that for another four years by September 28, 2027.”

CNN: ‘Climate change is not a tragedy, it’s a crime’: The team taking on Big Oil
Christiane Amanpour, 7/25/23

“Christiane Amanpour speaks to Richard Wiles, president of the Center for Climate Integrity, and attorney Melissa Sims about their mission to make oil and gas companies pay for climate damages in Puerto Rico,” CNN reports.

CLIMATE FINANCE

Guardian: Property insurance disappears for Louisianans – but not for gas facilities
Taylor Kate Brown, 7/24/23

“Residents of coastal Louisiana are facing growing risks from flooding and extreme weather, with options for home insurance vanishing as insurers leave the state. But the fossil fuel industry operating nearby has no such worries,” the Guardian reports. “Liquefied natural gas (LNG) terminals have been springing up along the fragile Gulf coast, securing insurance even as their product contributes to the climate crisis and its growing risks, including more intense hurricanes and increased coastal flooding that are driving away residents. For large projects such as LNG terminals, risk is spread among many insurers; no one company is exposed to all of a terminal’s potential losses. The same is not true for insurance companies whose business is built around residential policies where hurricane damage can lead to millions of dollars of claims at once… “Damage from Ida sent Louisiana’s property insurance market – already rattled by three major hurricanes in two years – into a full-blown crisis. By the end of 2022, nearly two dozen insurance companies had either left the state or gone under. Residents scrambled for new, dramatically more expensive coverage or went without. Meanwhile, just a few miles south of Ironton, a giant $20bn liquefied natural gas terminal is rising on a wedge of land between the Mississippi River and encroaching wetlands. Plaquemines LNG is one of eight terminals built or planned along Louisiana’s coastline… “While many of the world’s largest insurance and reinsurance companies have emissions targets and no longer insure coal projects, they have resisted calls to stop insuring fossil fuel projects entirely, despite their contribution to the climate crisis and increased global risk.”

Bloomberg: Warren Buffett Lifts Fossil Fuel Bets
Kevin Crowley, and Max Reyes, 7/25/23

“Warren Buffett’s multibillion-dollar purchases of oil and gas investments early in the pandemic paid off when the sector cranked out record earnings in 2022. But instead of selling out for a huge profit this year, the Oracle of Omaha wants more,” Bloomberg reports. “Berkshire Hathaway Inc. is using this year’s dip in commodity prices to load up on some of Buffett’s favorite oil and gas investments, showing that history’s most famous investor sees opportunity in a sector long disfavored due to its volatility and effects on the climate.”Earlier this month, Berkshire agreed to spend $3.3 billion to boost its stake in a liquefied natural gas export terminal in Maryland. This year it has also increased its holding in Occidental Petroleum Corp. by 15% and bought more stock in five Japanese commodity traders. Meanwhile, Berkshire’s energy division is lobbying hard for a bill that would see Texas spend at least $10 billion on natural gas-fired power plants to back up its grid… “On one level, it’s classic bargain-hunting by Buffett and Berkshire Vice Chairman Charlie Munger… “But it also generates the most cash flow per share. “People are missing the economics that Buffett and Munger are looking at,” Cole Smead, chief executive officer of Smead Capital Management, which manages $5.4 billion, including Berkshire and Occidental shares, told Bloomberg. “The returns on capital in coal, oil and gas are off the charts compared with other sectors. And with ESG, you can buy them cheaper than you otherwise would.”

Bloomberg: JPMorgan, Citi Listed as Top Oil and Gas Banks in the Amazon
Natasha White, 7/25/23

“As the Amazon may face a catastrophic tipping point that’s eroding its status as a major carbon sink, a new study maps out which banks have pumped the most money into oil and gas extraction from the world’s largest rainforest,” Bloomberg reports. “An analysis by Stand.earth, a nonprofit with offices in Canada and the US, lists JPMorgan Chase & Co. and Citigroup Inc. as the two banks that have dominated financial backing to fossil fuels in the Amazon basin over the past 15 years. In all, JPMorgan and Citigroup were behind $3.8 billion in loans and bonds for oil and gas production and infrastructure, according to Stand.earth. Since 2009, a total of 160 banks have channeled $20 billion in direct funding to oil and gas in the Amazon, the analysis found. Those activities have contributed to pollution and deforestation which, along with drought and fires, have pushed the Amazon close to passing a “tipping point” that may turn rainforests into grasslands within a few decades, according to climate scientists. “Banks have a critical role to play in shifting the energy economics behind the climate crisis,” Angeline Robertson, lead researcher at Stand.earth, told Bloomberg “We continue to see financing for the expansion of oil and gas in the world’s biggest rainforest.”

OPINION

National Constitution Center: Did Congress invade the judicial power to protect a pipeline?
Marcia Coyle, 7/25/23

“A political deal to secure the vote of a Democratic senator in the recent debt ceiling battle has teed up a U.S. Supreme Court fight over the authority of Congress to strip federal court review of a class of cases,” Marcia Coyle writes for the National Constitution Center. “The constitutional question, which the justices may or may not shed light on, is whether, as an 1872 Supreme Court said, “Congress inadvertently passed the limit which separates the legislative from the judicial power.” “…The debt ceiling act includes Section 324, which Congress entitled, “Expediting Completion of the Mountain Valley Pipeline.” “…Before Section 324 was enacted, the Wilderness Society and Appalachian Voices had three petitions for review pending before the Fourth Circuit and requests for stays of the construction pending review of their petitions. After Section 324 was enacted, Mountain Valley and the Biden Administration moved quickly in the Fourth Circuit to dismiss all three petitions because, they argued, the court had no jurisdiction in light of Section 324. The environmental groups fought the dismissal requests by arguing that Section 324’s withdrawal of jurisdiction was unconstitutional… “In the lower courts, the environmental groups have argued that Section 324 is unconstitutional because it invades the role of the judiciary by dictating the outcome of the pipeline case. Article III of the Constitution authorizes Congress to determine what classes of “cases” or “controversies” our courts have jurisdiction to review. The exceptions clause also gives Congress the power to make “exceptions” and “regulations” to the Supreme Court’s appellate jurisdiction. Scholars and others have raised concerns at times about how Congress has used that authority apparently to influence particular litigation. The environmental groups in the pipeline litigation have relied heavily on the Supreme Court’s 1872 decision in United States v. Klein… “The case is generally considered to stand for the proposition that Congress may not alter appellate court jurisdiction in order to dictate a “rule of decision.” Doing so would undermine the independence of the judiciary and violate the Constitution’s separation of powers. However, Mountain Valley and the government argue that the Supreme Court in two fairly recent decisions has narrowed Klein… “Because this case comes to the court as an emergency application, part of the so-called “shadow docket,” the justice may say little or nothing about the underlying issue. But a ruling in favor of Mountain Valley and the government would be an indication of the court’s view of the merits of the environmental groups arguments.”

Bloomberg: Anti-ESG Politicians Cost Their States and Cities Billions
Brian Frosh, Nancy Kopp, 7/25/23

“In the face of fires, record heat, floods and other extreme weather events across the country, House Republicans are using much of July to oppose financial transparency related to climate risks and to attack investor freedoms,” Brian Frosh and Nancy Kopp write for Bloomberg. “Their reckless course endangers not just the planet but also the financial stability of Americans’ retirement savings and pensions. One Republican went so far as to say consideration of climate risk by asset managers is “Satan’s plan.” On July 12, leaders of the House Financial Services Committee launched hearings to attack environmental, social and governmental (ESG) practices by financial firms. They are also crafting legislation that would outlaw long-standing risk assessment practices. Just as dangerously, House Republicans intend to restrict shareholders’ ability to hold corporate executives accountable by restricting rights to vote proxies and curbing shareholder resolutions related to corporate governance.”

Globe and Mail: Billions given to Volkswagen and Stellantis – what about oil and gas’s carbon initiatives?
Deborah Yedlin is the president and chief executive officer of the Calgary Chamber of Commerce, 7/25/23

“Much was discussed on the pancake and beer circuit during this year’s Calgary Stampede, including the strike at the Port of Vancouver, concerns over the timing and content of the clean electricity regulations and emissions cap – as well as the federal government’s subsidies to both Volkswagen  and Stellantis for their Ontario electric-vehicle battery manufacturing facilities,” Deborah Yedlin writes for the Globe and Mail. “The combined incentives, along with the Ontario government’s commitment, come to almost $29-billion – more than twice the bailout for the auto sector in 2008. That irked many at the Stampede. Suffice to say it would be hard to find an equivalent announcement by the federal government in the West, even though there are initiatives that are ready to move forward, such as the proposed carbon capture and storage project (CCS) by the Pathways Alliance, which has been under way for more than two years and follows decades of industry investment in emissions reduction… “Construction of the CCS project alone is expected to require $16.5-billion of investment and will create 25,000 to 30,000 direct and indirect jobs – 10 times the job creation estimates of Stellantis. Additional decarbonization projects by Pathways will add another $7.6-billion in investment by 2030 and, along with the CCS, will result in the elimination of 22 million tonnes of CO2 from the atmosphere. Government support is often needed for projects of this magnitude, to act as catalysts and accelerate private-sector investment. Carbon capture projects are no different; companies are willing to commit billions of dollars of capital to build them, but government backing is still required, consistent with the approach taken in other jurisdictions around the world.”