Exposing A Hidden Climate Threat: Methane ‘Super Emitters’.
According to the New York Times, “To the naked eye, there is nothing out of the ordinary at the DCP Pegasus gas processing plant in West Texas, one of the thousands of installations
in the vast Permian Basin that have transformed America into the largest oil and gas producer in the world. But a highly specialized camera sees what the human eye cannot: a major release of methane, the main component of natural gas and a potent greenhouse
gas that is helping to warm the planet at an alarming rate. Two New York Times journalists detected this from a tiny plane, crammed with scientific equipment, circling above the oil and gas sites that dot the Permian, an oil field bigger than Kansas. In just
a few hours, the plane’s instruments identified six sites with unusually high methane emissions. Methane is loosely regulated, difficult to detect and rising sharply. The Times’s aerial and on-the-ground research, along with an examination of lobbying activities
by the companies that own the sites, shows how the energy industry is seeking and winning looser federal regulations on methane, a major contributor to global warming. The operators of the sites identified by The Times are among the very companies that have
lobbied the Trump administration, either directly or through trade organizations, to weaken regulations on methane, a review of regulatory filings, meeting minutes and attendance logs shows. These local companies, along with oil-industry lobby groups that
represent the world’s largest energy companies, are fighting rules that would force them to more aggressively fix emissions like these.” [New York Times,
12/12/19 (+)]
Natural Gas Boom Fizzles As A U.S. Glut Sinks Profits.
According to the New York Times, “A decade ago, natural gas was heralded as the fuel of the future. In shale fields across the country, hydraulic fracturing uncorked a lucrative new
source of supply. Energy giants like Exxon Mobil and Chevron snapped up smaller companies to get in on the action, and investors poured billions of dollars into export terminals to ship gas to China and Europe. The boom has given way to a bust. A glut of cheap
natural gas is wreaking havoc on the energy industry, and companies are shutting down drilling rigs, filing for bankruptcy protection and slashing the value of shale fields they had acquired in recent years. Chevron, the country’s second-largest oil and gas
giant after Exxon, said on Tuesday that it would write down $10 billion to $11 billion in assets, mostly shale gas holdings in Appalachia and a planned liquefied natural gas export facility in Canada. The move was an energy company’s clearest acknowledgment
yet that the industry has been far too optimistic about the prospects for natural gas. While cheap natural gas continues to take market share from coal in the electricity sector, supply of the fuel has far outstripped demand. As a result, once-booming gas
fields in Arkansas, Louisiana and Texas have become quiet backwaters. The number of gas rigs deployed nationwide has dropped to 132, from 184 last year.” [New York Times,
12/11/19 (=)]
Dominion Energy Partnership To Convert Manure To Natural Gas.
According to the Associated Press, “One of the nation’s largest energy producers is launching a $200 million effort to convert methane from cow manure into natural gas. Richmond-based
Dominion Energy announced Wednesday that it is partnering with Vanguard Renewables to develop and operate conversion facilities at dairy farms across the U.S. A news release says projects are under development in Georgia, Nevada, Colorado, New Mexico and Utah.
A subsidiary of Massachusetts-based Vanguard Renewables will design, develop and operate the projects. Dominion will own the projects and market the gas. Company spokesman Aaron Ruby says the $200 million will be invested over five years, with the potential
for the effort to expand. Dominion has a similar partnership with Smithfield Foods to convert methane from hog farms into natural gas. Methane is a powerful greenhouse gas that contributes to global warming. Dominion estimates the project will reduce emissions
by an amount comparable to taking nearly 100,000 cars off the road for a year. Each project will involve a cluster of several farms. The methane is captured and transported through low-pressure lines to a conditioning facility, where is it processes and cleaned,
then delivered to consumers.” [Associated Press,
12/11/19 (=)]
Group Faults Texas Agency's Response To Pollution Complaints.
According to E&E News, “Texas environmental regulators, who have been slow to respond to complaints about air pollution in the Permian Basin and other oil fields, are violating their
own procedures for handling complaints, an environmental group said yesterday. Earthworks, a Washington, D.C.-based nonprofit, has sent staffers with infrared cameras and other equipment to document emissions from oil production in about a dozen states and
filed complaints with regulators (Climatewire, June 12, 2017). The Texas Commission on Environmental Quality has been the slowest to respond, and Earthworks often had to file requests under the state public information law to learn whether the agency had investigated
the complaints, said Sharon Wilson, a field organizer for the group in Dallas. TCEQ’s own policy requires it to notify parties about the outcome of their complaints. It’s important because oil field pollution can harm people who live nearby, and it’s contributing
to climate change. ‘Texas can no longer say, you know, this is about Texas and it’s out in the country and it doesn’t matter,’ Wilson said. Wilson sent a letter yesterday to TCEQ Executive Director Toby Baker outlining the problem. TCEQ didn’t immediately
respond to a request for comment. Earthworks has filed 99 complaints with TCEQ since 2015, often accompanied by video of the problems and affidavits from witnesses.” [E&E News,
12/12/19 (=)]
Durango Shows Support For Colorado’s Proposed Methane Rules.
According to the Durango Herald, “Durango residents showed up in force Wednesday to support Colorado’s effort to improve air quality and reduce methane emissions from oil and gas
facilities. More than 100 people attended a public hearing hosted by the Air Quality Control Commission to hear feedback about the proposed rules, which seek to implement statewide methane leak-detection and repair standards for oil and gas operations. The
state intends to finalize the rules within the next few weeks. Durango City Councilor Dean Brookie said the proposed rules are especially pertinent to Southwest Colorado, where a ‘methane hot spot’ exists from oil and gas production in the San Juan Basin,
which extends into northern New Mexico. ‘Methane impacts the health of everyone living and breathing today in our community,’ he said. ‘And it’s curable. Let’s do this.’ Durango resident Andrea Hennis said oil and gas is thriving in Colorado, which has an
impact on the environment and public health. ‘This pollution can be curbed if these regulations are enacted,’ she said. ‘Do what you can to secure the quality of our air, and therefore the quality of our future.’ Out of the 50 or so people who spoke Wednesday,
only two were affiliated with the oil and gas industry. ‘This room is heavily unrepresented with oil and gas because we’ve all had to go work elsewhere,’ said Carla Neal, a Durango resident who works for a local oil and gas company. ‘These proposed rules are
not about health, but another thinly veiled attempt to shut down oil and gas, which they’ve been doing pretty well at.’” [Durango Herald,
12/11/19 (=)]
Judge Hands Climate Analysis Back To BLM.
According to E&E News, “A federal judge this week halted oil and gas drilling approvals and suspended applications for new permits in Colorado’s North Fork Valley until Trump administration
officials conclude an analysis of how development there will affect climate change. The decision Tuesday in the U.S. District Court for the District of Colorado follows a previous ruling that the Bureau of Land Management failed to take a ‘hard look’ at the
eventual climate impact of oil and gas leasing in the region (Energywire, March 28). Senior Judge Lewis Babcock asked green groups and federal agencies involved in the case to find a way to resolve the problem and asked BLM to quantify emissions. Environmental
challengers said the court should toss the National Environmental Policy Act reviews, while the government urged the judge to allow BLM to conduct further analysis. Babcock, a Reagan appointee, sent the matter back to BLM ‘for further analysis of this limited
issue.’ The Center for Biological Diversity, one of the groups that filed the original lawsuit, said it was displeased with the judge’s decision this week. The group had asked the judge to toss BLM’s original decision on the master plan and the oil and gas
project, forcing the agency to refashion its analysis from scratch. ‘We don’t agree that the Trump administration is considering the ravages of fossil-fuel extraction on Colorado’s wildlife and spectacular landscapes,’ Allison Melton, an attorney for the group,
said in a statement.” [E&E News,
12/12/19 (=)]
Panel Approves Legislation Targeting Russian Natural Gas.
According to E&E News, “The Senate Foreign Relations Committee approved legislation yesterday to weaken Russian influence in Europe by streamlining U.S. natural gas exports to allies
in the region. A previous version of S. 1830, sponsored by Sen. John Barrasso (R-Wyo.), included sanctions targeting investors in Russian pipelines, including Nord Stream 2. But Barrasso dropped that language because negotiators added language on sanctions
to the National Defense Authorization Act (see related story). Nord Stream 2 is a project by Gazprom, Russia’s state energy company. The pipeline runs under the Baltic Sea to Germany while bypassing Ukraine. It is nearing completion and would add to the amount
of natural gas Gazprom already supplies to Germany through the first Nord Stream pipeline. The bill lawmakers approved yesterday retains provisions condemning Nord Stream 2 and attempting to curb Russian influence exerted by Gazprom. ‘It’s designed to attempt
to stop Nord Stream 2,’ said Chairman James Risch (R-Idaho) after the markup. ‘This is a bad idea to have a NATO ally of ours strengthening Russia by creating this pipeline.’ A spokesperson for Gazprom declined to comment but told The Wall Street Journal that
the sanctions would only delay construction and make it more expensive.” [E&E News,
12/12/19 (=)]
Udall Puts Hold On Safety Agency Reauthorization Bill.
According to E&E News, “Sen. Tom Udall (D-N.M.) announced this morning he will officially object to floor consideration of the Senate effort to reauthorize the nation’s pipeline safety
regulators over concerns it does not do enough to address methane leaks. The hold from Udall effectively stalls S. 2299, even as Congress has blown through the Transportation Department’s Pipeline and Hazardous Materials Safety Administration authorization
deadline. Udall first raised his objections to the lack of provisions addressing methane leaks and detection requirements when the bill moved through a Commerce Committee markup in July. Those concerns were reiterated in a letter sent to Commerce leadership
along with Sens. Dianne Feinstein (D-Calif.), Jeff Merkley (D-Ore.), Kirsten Gillibrand (D-N.Y.), Cory Booker (D-N.J.) and Martin Heinrich (D-N.M.). ‘Leaking pipelines are a serious safety hazard that can lead to catastrophic consequences, including explosions,
fire, evacuations and death,’ the group wrote. ‘Additionally, leaking pipelines contribute significantly to emissions of methane, a powerful greenhouse gas that is especially harmful for near-term climate change.’ The issue of methane in the pipeline reauthorization
bill emerged in the House version, H.R. 3432, last month when Democratic leaders of the Transportation and Infrastructure and Energy and Commerce committees unveiled their latest proposal to reup the agency.” [E&E News,
12/12/19 (=)]
Dominion Energy Turns To Cow Manure In Gas Pact.
According to the Wall Street Journal, “Dominion Energy Inc. has struck a $200 million pact with a renewable energy producer and the Dairy Farmers of America Inc. to extract natural
gas from cow manure. The arrangement calls for the utility to fund construction of organic-waste processing facilities called anaerobic digesters amid clusters of large dairy farms, connect the facilities to natural gas distribution pipelines and sell the
gas. Vanguard Renewables, of Wellesley, Mass., will build and operate the digesters, which break down organic waste into usable fuel and fertilizer. Dairy farmers, for a fee, will supply manure, and in some cases lease out land upon which the equipment will
be built. It is the latest venture between big livestock concerns and power producers aiming to generate pipeline-quality natural gas from animal waste. Doing so results in gas that is more expensive than that which has flooded the market from U.S. shale formations.
So-called biogas, however, is in high demand among consumers, businesses and local governments eager to lower their emissions and earn environmental plaudits. It can generate valuable and tradable carbon offset credits for buyers, which can make producing
biogas worthwhile for companies like Dominion. The utility, which serves 7.5 million customers in 18 states with electricity or natural gas, in October enlarged to $500 million an existing deal to capture gas at Smithfield Foods Inc. hog farms in five states.”
[Wall Street Journal,
12/11/19 (=)]
Interior Raises $11M With Alaska Lease Auction.
According to Politico, “An Interior Department oil and gas lease sale for the National Petroleum Reserve-Alaska generated $11 million today. Three companies bid on just over a million
acres, a larger area than had received bids in recent years, according to initial results offered by Interior’s Bureau of Land Management. Winning bids this year were the highest since $18 million in 2016, but companies paid far less per acre than they did
then. The vast majority of the acres went to North Slope Exploration LLC, a company that was incorporated in late November and run by Texas wildcatter Bill Armstrong. North Slope and other companies paid an average of $11 per acre, more than the $9 per acre
they paid in 2018 but well below the $30 per acre paid in the 2016 lease sale. The sale ‘reflects a continued interest in developing resources in the largest single block of federally managed land in the United States,’ BLM Associate State Director Ted Murphy
said in a statement. Trump administration critics said the results undermined arguments in favor of expanded drilling in Alaska, including Republicans’ claim that opening up part of the Arctic National Wildlife Refuge would generate $1 billion in revenue.
‘Leasing on the Arctic Refuge coastal plain shouldn’t happen under any circumstances,’ Alaska Wilderness League Conservation Director Kristen Miller said in a press release. ‘Regardless, nothing we saw this year, let alone throughout the history of NPR-A lease
sales, supports the wild billion-dollar Arctic Refuge revenue assertions.’” [Politico
12/11/19 (=)]
Chad Ellwood
Climate Action Campaign
202.448.2877 ext. 119