Tallgrass, Bold Alliance, and Key Agricultural and First Responder Organizations Announce a Community Benefits Agreement
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In the state of Nebraska, there is no state agency with authority over carbon dioxide (CO2) pipelines, after the Nebraska Public Service Commission issued a statement saying it had no authority under state laws, leaving landowners, counties and first responders to come up with measures to protect property rights, themselves and the communities impacted.
The Tallgrass Trailblazer methane gas pipeline was constructed in 1981 to carry gas across Wyoming, Colorado and Nebraska. The company recently applied for and was granted permission by the Federal Energy Regulatory Commission (FERC) to transition the existing gas pipeline to carry carbon dioxide, where it plans to connect with Midwest ethanol plants and collect CO2 emissions for transport via the Trailblazer pipeline for underground sequestration.
Methane gas pipelines are regulated by FERC, which holds the power to grant eminent domain authority to corporations to seize landowners’ property against their will for a project. Carbon pipelines do not have an equivalent to FERC for the rules and regulations around eminent domain, siting and decommissioning on a national level.
In the case of the Tallgrass Trailblazer pipeline, in this particular situation with this particular project in the state of Nebraska, with the current lack of any regulation in Nebraska — landowners, first responders and communities did not have enough votes in the legislature to put basic protections into law. This fundamental reason is why Bold approached Tallgrass to seek protections and benefits in writing of the Community Benefits Agreement.
An easement contract for the existing gas pipeline was already negotiated decades ago, and that methane gas pipeline was authorized by the Federal Energy Regulatory Agency (FERC) which approved the company’s plan to take the gas line out of service, and convert it to instead carry CO2.
Currently, the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) is working on updating regulations for carbon pipelines — in the wake of the 2020 CO2 pipeline rupture incident in Satartia, MS that forced the evacuation of hundreds and sent dozens to the hospital, with some reporting negative health impacts to this day.
Under this set of circumstances, Tallgrass landowners are in a position where they cannot fight eminent domain to stop a pipeline that is already in the ground on their property. Bold has for years urged the Nebraska Legislature to pass a number of bills that would provide added protections to landowners against eminent domain, enhance decommissioning plans for equipment after the life of a pipeline, and provide more comprehensive financial compensation for landowners and communities that shoulder the risks and burdens of these projects.
With no Nebraska state laws in existence to protect Tallgrass landowners, Bold realized an opportunity to seek some protections through a unique “Community Benefits Agreement” with the company, which also includes a number of other local community, Agricultural and first responder organizations. The Agreement includes financial benefits directly into the pockets of landowners and protections that would not have otherwise been available to landowners, first responders and the impacted communities in Nebraska.
While Bold entered into this Community Benefits Agreement with Tallgrass within the state of Nebraska, Bold does not see any path to a similar community benefits agreement, for instance, with Summit Carbon Solutions — which has already sued hundreds of landowners seeking survey access against their will, and has threatened to use eminent domain from day one to seize property from unwilling landowners. Summit has continued to show they do not care about landowners, first responders or communities in the path of their new pipeline infrastructure project.
A number of meetings are being scheduled to introduce the Community Benefits Agreement to communities within Nebraska that are impacted by the Tallgrass Trailblazer gas-to-CO2 conversion pipeline, in addition to a virtual Zoom meeting for Tallgrass landowners.
FOR IMMEDIATE RELEASE: April 9, 2024
Tallgrass, Bold Alliance, and Key Agricultural and First Responder Organizations Announce a Community Benefits Agreement
First-of-its-kind agreement establishes significant collaborative initiatives for landowners, public safety and community investment.
Lincoln, Neb. — Tallgrass, Bold Alliance, and multiple organizations across Nebraska announced a first-of-its-kind Community Benefits Agreement (CBA) associated with the Tallgrass Trailblazer carbon dioxide (CO2) sequestration project. The agreement between Tallgrass and Bold Alliance received endorsements from 11 statewide organizations, including Renewable Fuels Nebraska, the Nebraska State Volunteer Firefighter Association, the Nebraska Farm Bureau, the Nebraska Corn Growers Association, the Nebraska Cattlemen Association, the Nebraska Farmers Union, the Nebraska Soybean Association, the Nebraska Sorghum Producers, the Nebraska Dairy Producers, the Nebraska Pork Association and We Support AG. This landmark agreement sets a new precedent for pipeline infrastructure by establishing a series of community initiatives as well as creating rigorous landowner rights protections throughout the pipeline’s life cycle, from early project development through easement negotiations, operations, and decommissioning.
Other near and long-term benefits provisioned by the CBA include:
- A $500,000 funding commitment to nonprofits in the counties associated with the project.
- A $400,000 funding commitment to equip first responders throughout the development of the project, as well as ongoing annual funding to support replenishing and replacing essential equipment once the project is operational.
- There is a $200,000 funding commitment to train first responders as the project comes online, as well as an annual obligation, once operational, to provide public safety notifications to the families who live along the pipeline right of way.
- A requirement, at the time of decommissioning, that the easements are returned to landowners who may elect to have the pipeline abandoned in place or removed from their property.
The CBA additionally establishes a 10-year, two-part, shared-value program. By achieving operations on schedule, this program establishes provisions for landowners to receive an annual royalty payment and for a community foundation to receive an annual endowment — based on the total amount of CO2 the project sequesters. The annual royalty payment program for landowners applies not only to future easement negotiations, but also to landowners who have already signed easements for the CO2 pipeline.
“Bold believes that those who live in our rural towns and whose land is needed to develop American energy should receive direct financial and community benefits,” said Jane Kleeb, founder of Bold Alliance. “Tallgrass’s existing pipeline was initially built for natural gas delivery, and the conversion they are undertaking to transport carbon dioxide highlights the need for additional community benefits which are met under this agreement,” Kleeb continued. “Tallgrass is the first pipeline company we have encountered that has been willing to engage proactively, acknowledge the need for the landowner benefits that Bold fights to achieve, and genuinely commit itself to addressing those benefits by written agreement. The commitments between Bold and Tallgrass must set a standard for future energy infrastructure developers and for future regulatory reform that ensures stronger community and landowner benefits are enshrined in our state and federal laws.”
“We appreciate the time and effort that Bold Alliance and so many organizations across Nebraska have invested to achieve this milestone. Everyone involved worked hard to bridge the challenges of reaching a groundbreaking agreement like this one because of a common commitment to seeing Nebraska win. This project is a critical element of Nebraska’s bioeconomy — creating new markets and increased value for the biofuels industry, the family farms who supply them, and the communities they call home,” said Kyle Quackenbush, Segment President of Tallgrass. “At Tallgrass, our pipeline infrastructure has been safely powering Nebraska’s economic growth for decades. We are proud to have found common ground with so many key community organizations to keep Nebraska at the forefront of innovation and economic growth in the decades to come.”
About Tallgrass
Tallgrass is a leading energy infrastructure company focused on safely, reliably, and sustainably delivering the energy and services that fuel homes and businesses and enable our nation’s quality of life. For over a decade, Tallgrass has called Nebraska “home,” with over 100 of our Nebraskan employees operating more than 2,000 miles of pipelines in the state every day. Across the broader U.S., Tallgrass has over 1,000 employees operating more than 10,000 miles of infrastructure that stretches from Ohio to Oregon and North Dakota down to South Texas. Learn more at Tallgrass.com.
About Bold Alliance
Bold Alliance builds unlikely alliances to protect the land and water. Bold works on ssues including eminent domain, clean energy, water, and prioritizing family farms and ranches.
FAQ
TPCO2 – CBA FAQ Document – 4.9.24Community Benefit Agreement - signed
