Methane Clips: March 23, 2023

 

EPA Announces Clean Air Act Violations For Permian Basin Company. According to the EPA, “The U.S. Environmental Protection Agency issued a Consent Agreement and Final Order to Chisholm Energy Operating, LLC for emissions from storage tanks that the EPA identified using a helicopter equipped with a special infrared camera that detects hydrocarbon leaks, and for construction of facilities prior to permit approval. Chisholm performed corrective actions at eight of the company’s oil and gas facilities in the Permian Basin in New Mexico, resulting in an estimated reduction of 1715 tons of volatile organic compounds emissions. Volatile organic compounds emissions, or VOCs, contribute to the formation of ozone, or smog, which can result in health problems such as asthma, lung infections, bronchitis, and cancer. The settlement also achieved climate change co-benefits through the reduction of 6,168 tons of methane emissions. Methane is a potent climate pollutant that also impacts human health. ‘By using advanced technology, the EPA, working in partnership with the NMED, was able to detect Clean Air Act violations and ensure that the company took prompt action to address unauthorized emissions.’ said Regional Administrator Dr. Earthea Nance. ‘The CAA is designed to protect and enhance the quality of our nation’s air; companies (or facilities) must continue to uphold that standard or expect to be held accountable when failing to safeguard public health.’” [EPA, 3/22/23 (=)]

 

Insurer Chubb Demands Energy Producers Cut Methane Emissions For Coverage. According to the Wall Street Journal, “Global insurer Chubb Ltd. is tightening its requirements on insurance policies for oil-and- gas producers, demanding that they reduce emissions of methane, a potent greenhouse gas. Chubb CB -2.19%decrease; red down pointing triangle , which is a top-10 insurer in the worldwide oil-and-gas market by premium volume, will also stop underwriting projects in areas designated as protected by state, provincial or national governments, effective immediately. The company has been under pressure from climate activists, who have targeted banks and insurers to cut off funding and insurance coverage for fossil-fuel companies. Chubb’s actions fall short of their demands to quit sales to oil and gas producers.” [Wall Street Journal, 3/22/23 (=)]

 

Chubb To Insure Oil, Gas Projects Only If They Cut Methane Emissions. According to Reuters, “Chubb (CB.BN), the world’s biggest property and casualty insurer, said on Wednesday it would from now on provide coverage for oil and gas extraction projects only to clients that proved they had plans to reduce methane emissions. A byproduct of oil and gas production, methane emissions are among the most damaging greenhouse gases for climate change. The new criteria will be immediately effective, Chubb said, adding customers would have some time ‘to develop an action plan based on their individual risk characteristics.’” [Reuters, 3/22/23 (=)]

 

Letter: Energy Crisis Can Provide Perfect Storm For Methane. According to the Financial Times, “Your article (‘‘Climate time-bomb is ticking’ warns UN report’, Report, March 21) will be a wake-up call for many. It was interesting to see reducing methane from coal, oil and gas as point three on the mitigation list. While everyone knows about solar and wind power, it is a little known fact that methane too can be a reliable source of electricity. Methane is second only to CO₂ as a contributor to human-caused climate change and traps 84 times more heat per mass over a 20-year span. With scientists claiming that methane is responsible for 25 per cent of global heating, there was already a clear need to tackle methane production at the source. However, the energy crisis has created the perfect storm for methane mitigation technology; nearly half of methane-emitting sites in the US are not connected to a stable grid. Here’s an opportunity for the oil and gas industry to produce low-cost energy, while tackling the greatest issue of our generation.” [Financial Times, 3/22/23 (-)]

 

White House Unveils New Climate Tools For Agencies. According to EE News, “The Biden White House this week released a series of new resources for government agencies working to combat climate change and adapt to its impacts. The new tools from the White House Office of Science and Technology Policy include a report to help manage flood risk, a guide to help agencies adapt to climate change, and an ‘action plan’ aimed at making it easier for communities to access climate information. The unveiling of the new climate reports comes after the U.N. Intergovernmental Panel on Climate Change released a dire assessment this week warning that the damaging effects of global warming are already happening and that current policies aren’t enough to avoid catastrophic impacts.” [EE News, 3/22/23 (=)]

 

Republicans Keep Daring Democrats On Energy Package. According to EE News, “Majority Leader Chuck Schumer has said the House Republican permitting reform and energy package is ‘dead on arrival’ in the Democratic-controlled Senate, but GOP lawmakers insist they’ll be able to force the New York Democrat’s hand on some of its core components. They have some new ammunition: Senate Energy and Natural Resources Chair Joe Manchin (D-W.Va.) is reviewing the legislation Republicans are preparing to put on the House floor as early as next week. ‘Senator Manchin is taking a close look at [the bill] and is hopeful there might be a pathway to permitting legislation that could gain bipartisan support,’ Sam Runyon, a spokesperson for the West Virginia Democrat, said in a statement to E&E News on Wednesday.” [EE News, 3/23/23 (=)]