Preview Newsletter
ACC PM 5/19/2017
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(ACC Mentioned) Commodity Resin Prices Slam on the Brakes in April
May 19, 2017 | Plastics News
By Frank Esposito
Early-year momentum for higher resin prices came to a stop in April, with North American commodity prices either down or flat. -
(ACC Mentioned) Around The Region for May 19
May 19, 2017 | The Journal
The Morgan County Observatory Foundation will host public stargazing parties from 8:30 to 11 p.m. today and May 26 at the observatory, Greenwood Elementary School, 8989 Winchester Grade Road. -
Democrats Question Pruitt on Science Board Dismissals
May 19, 2017 | Chemical Watch
By Kelly Franklin
Democratic committee leaders have written to US EPA Administrator Scott Pruitt with concerns that the agency intends to fill newly opened positions on its Board of Scientific Counselors with members who will push specific policies rather than serve as impartial experts. -
Nationwide Testing Shows Many Canned Foods Still Contain Chemical Linked to Cancer, Birth Defects
May 17, 2017 | Safer Chemicals, Healthy Families
By CJ Frogozo
Nearly 40% of cans from leading national retailers still contain BPA. -
(ACC Mentioned) Senators See Appalachian Shale as 'a Real Field of Dreams'
May 19, 2017 | Plastics News
By Frank Esposito
Government and industry officials see big things ahead in plastics and petrochemicals for the Appalachian region of the United States. -
(ACC Mentioned) WV Senators Urge Federal Officials to Build Natural Gas Facilities in Appalachian Region of State
May 19, 2017 | The News Center
By The Associated Press
West Virginia's U.S. senators are urging federal officials to consider building a major natural gas storage and distribution hub in the Appalachian region of West Virginia. -
Industry Prods Trump Team for Quick Relief from Obama Rule
May 19, 2017 | E&E Energywire
By Ellen M. Gilmer
Industry and environmental groups are gearing up for another round of fighting over an Obama-era plan to slash methane emissions from oil and gas operations on public lands. -
Oil Industry Asks Zinke to Delay Rule 2 Years
May 19, 2017 | E&E Climatewire
By Brittany Patterson
The American Petroleum Institute is urging Interior Secretary Ryan Zinke to postpone upcoming compliance deadlines that will affect oil and gas operators, a move prompted by the Senate's failure to kill an Obama-era methane rule earlier this month. -
Oil and Gas Execs Top Zinke's Meeting List
May 19, 2017 | E&E Greenwire
By Corbin Hiar
In his first two months on the job, Interior Secretary Ryan Zinke had more meetings with oil and gas industry executives than representatives of any other type of interest group. -
Court Pauses Lawsuit Over Obama Methane Rule
May 18, 2017 | The Hill - E2 Wire
By Devin Henry
A federal court on Thursday formally paused a lawsuit over an Obama administration methane regulation. -
U.S. Bank Not Banking on New Natural Gas Pipelines
May 19, 2017 | Natural Gas Intelligence
By Joe Fisher
Looking for capital to construct a natural gas pipeline? Don’t look to Minneapolis-based U.S. Bancorp, parent of U.S. Bank. -
TransCanada Northwestern Mexico Pipeline to be Finished This Year
May 19, 2017 | Natural Gas Intelligence
By Joe Fisher
TransCanada Corp.’s El Encino-Topolobampo Pipeline project in northwestern Mexico is nearly complete with the exception of a “small portion” that was delayed by negotiations with indigenous people. -
Storage Company Vopak Fined for Chemical Emissions
May 18, 2017 | Fuel Fix
By Ryan Maye Handy
Vopak Logistics Services USA, part of the Dutch chemical storage company Royal Vopak, was fined $2.5 million for violations of the Clean Air Act, the U.S. Environmental Protection Agency said on Wednesday. -
DHS Chief Warns 'Lives are at Risk' from Cyberthreat
May 19, 2017 | E&E Energywire
By Blake Sobczak
President Trump signed a recent executive order on cybersecurity to "reaffirm" the administration's alliance with the private sector to tackle the problem, Homeland Security Secretary John Kelly said yesterday. -
Zinke Deputy Reveals Few Clues on Climate Policy
May 19, 2017 | E&E Climatewire
By Brittany Patterson
Observers searching for clues to the Trump administration's climate change policies for public lands didn't learn much yesterday from the Interior Department's likely No. 2. -
Democrats Grill Interior Nominee Over Energy Industry Ties
May 19, 2017 | Roll Call
By Elvina Nawaguna
President Donald Trump’s deputy Interior secretary nominee David Bernhardt sidestepped questions during his Thursday confirmation hearing about whether he believes in climate change, saying instead that regardless of what the science says, he will follow the president’s the policy positions.
Industry and Association News
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Environment News
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(ACC Mentioned) Commodity Resin Prices Slam on the Brakes in April
May 19, 2017 | Plastics News
By Frank Esposito
Early-year momentum for higher resin prices came to a stop in April, with North American commodity prices either down or flat.
The regional polypropylene market in April gave back 5.5 cents of the 20.5 cents it had gained in the first three months of the year.
Market sources said that lower PP prices were the result of lower prices for polymer-grade propylene (PGP) feedstock.
PGP supplies also are improving as some maintenance outages come to an end, they added. The wave of three price hikes that started the year also led PP users to pre-buy in advance of additional increases.
North American PP sales were up almost 1 percent in the first three months of 2017, according to the American Chemistry Council. Domestic sales essentially were flat in that period, but export sales surged 60 percent.
Among domestic end markets, three-month PP sales into injection molding grew 2.5 percent. That sector was led by a 5 percent gain for PP sales into consumer and institutional products, including furniture and housewares.
Solid PS drops
Regional polystyrene prices also tumbled in April, declining by an average of 5 cents per pound. That move took away most of a 6-cent increase the market had seen in March.
The March PS hike was the third consecutive one for that material. Those three increases had sent regional PS prices up a total of 19 cents per pound.
A major price drop for benzene, which is used to make styrene monomer, affected PS prices in April. Benzene prices fell 61 cents per gallon, a drop of about 18 percent. March was an unusual month in that PS prices rose even though benzene prices declined slightly.
PS maker Americas Styrenics of The Woodlands, Texas, already has announced a PS price decrease of 2 cents per pound for May. North American PS sales through March were down around 2 percent from the same period in 2016. Domestic PS sales were down just over 2 percent for those three months, while exports increased almost 6 percent.
PET bottle resin falls
North American prices for PET bottle resin joined the downward pricing convoy in April, declining an average of 2 cents per pound. That marks the second straight month that prices for that material have dropped, following a half-cent dip in March.
Paraxylene and purified terephthalic acid feedstocks have been under downward pricing pressure, sources said. Prior to March, regional PET prices had increased for six consecutive months, with those increases totaling 9.5 cents per pound.
PE, PVC flat
Regional prices for both polyethylene and PVC were flat in April. PE makers first had planned to seek a 3-cent hike, but later moved that attempt back to May. A 6-cent increase originally planned for March had been reduced to 3, which was successful.
PE supply in March also was limited by production issues experienced by several resin makers, including Chevron Phillips Chemical Co. CP Chem on March 13 declared force majeure on high density PE because of a power outage at its plant in Orange, Texas.
The March hike was the second consecutive monthly increase for regional PE prices, following a 5-cent January hike. Prices had been flat in January, after falling an average of 2 cents per pound in December.
U.S./Canadian sales of low and linear low density PE showed solid growth in the first three months of 2017, with HDPE trailing behind. Three-month sales of LDPE were up almost 2 percent, with regional LLDPE sales through March up 3.5 percent. HDPE sales in the region slid by 3.5 percent.
For PVC, a 2-cent March hike was the second straight monthly increase for that material. Prices had risen 4 cents in February. Prior to that, prices had been flat since November.
Through March, U.S./Canadian PVC sales were up almost 2 percent. Domestic sales grew more than 3 percent, but were dampened somewhat by an export sales drop of 1.5 percent.
Further upstream, West Texas Intermediate crude oil prices began April at $51 per barrel but were near $49 when the month ended, for a decline of almost 4 percent. U.S. natural gas prices began April at $3.20 per million BTUs and moved as high as $3.40 during the month before returning to $3.20 by month's end.
http://www.plasticsnews.com/article/20170519/NEWS/170519879/commodity-resin-price-hikes-halt-in-april
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(ACC Mentioned) Around The Region for May 19
May 19, 2017 | The Journal
The Morgan County Observatory Foundation will host public stargazing parties from 8:30 to 11 p.m. today and May 26 at the observatory, Greenwood Elementary School, 8989 Winchester Grade Road. Clear skies will bring into view Jupiter and its moons, the Hercules cluster, the Ring nebula, the double star Albireo and more. For more information, visit www.nitesky.org.
Class of 1952 plans reunion
MARTINSBURG — Martinsburg High School Class of 1952 will hold its 65th reunion May 26-27. RSVP by Monday to Betty at 304-267-6745.
Dinner to benefit Relay for Life
MARTINSBURG — The Second Baptist Church, 911 N. High St., will hold a spaghetti dinner from 4-7 p.m. Saturday. Cost is by donation. Proceeds will benefit Relay for Life.
For more information, call 304-263-7810.
Club to host spaghetti dinner
RANSON — The Knights of Pythians, 105 6th Ave., will host a spaghetti dinner from 3-7 p.m. on Saturday. Cost is $8 per adult and $4 for children. Those 6 and under eat for free. Carryout will be available.
Animal group to meet Sunday
MARTINSBURG — Animal Advocates of West Virginia will meet from 1-3 p.m. Sunday at the Dorothy McCormack Building, 2000 Foundation Way, in the 2nd floor conference room No. 2400. Enter the building at the back through the Wellness Center.
Anyone concerned about the welfare of animals in the Eastern Panhandle is invited to join. For more info, visit animaladvocateswv.com.
Trial in girl’s death postponed
WESTON (AP) — A trial has been postponed for a woman charged in the death of her 3-year-old daughter.
A Lewis County circuit judge on Thursday rescheduled the trial of Lena Marie Lunsford Conaway to Oct. 10. It had been scheduled to start in June.
Her attorney, Tom Dyer, sought more time to go over evidence.
Conaway is charged with murder of a child by parent by failure to provide necessities, death of a child by parent by child abuse, child abuse resulting in injury and concealment of a dead human body.
She had reported her daughter, Aliayah Lunsford, missing in 2011.
Senators back natural gas hub
CHARLESTON (AP) — West Virginia’s U.S. senators are urging federal officials to consider building a major natural gas storage and distribution hub in the Appalachian region.
In a letter Thursday to National Economic Council Director Gary Cohn, the senators say the White House should examine “the numerous benefits” of putting a world-class natural gas liquid-storage and distribution hub in the region with growing but still underutilized reserves of underground natural gas.
Sens. Joe Manchin and Shelley Moore Capito cite an American Chemistry Council study that an Appalachian hub could attract $36 billion in new chemical and plastics industry investment and create 100,000 new jobs.
They write that building a hub and related infrastructure “will attract sorely needed economic activity to this underserved part of the country.”
http://www.journal-news.net/news/local-news/2017/05/around-the-region-for-may-19-2/
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Democrats Question Pruitt on Science Board Dismissals
May 19, 2017 | Chemical Watch
By Kelly Franklin
Democratic committee leaders have written to US EPA Administrator Scott Pruitt with concerns that the agency intends to fill newly opened positions on its Board of Scientific Counselors with members who will push specific policies rather than serve as impartial experts.
And the House ranking members say this raises serious concern "that the balance on the board will now be tilted in favour of industry, to the detriment of unbiased scientific expertise."
The 18 May letter follows the EPA's decision this month not to renew nine members of its advisory group. It is signed by Frank Pallone, Jr (D–New Jersey), ranking member for the Committee on Energy and Commerce; Eddie Bernice Johnson (D–Texas), ranking member of the Committee On Science, Space and Technology; and four subcommittee leaders.
The 18-member board provides advice, information and recommendations to the EPA's Office of Research and Development (ORD) on technical and management issues related to its research programmes. But in a break with recent tradition, the agency chose not to renew half of the seats when their first term expired.
In a statement, the EPA says it will be carrying out a "competitive nomination process" that would "ensure fair consideration of all the nominees – including those nominated who may have previously served on the panel".
But the Democrat leaders say that this action may have "prematurely removed qualified experts … and deprives EPA of critical scientific and technical expertise".
They also refer to the "chilling effect" it has had on the broader scientific community, as shown by the 12 May resignation of two scientists from a sub-committee of the Board.
In their resignation letter, the scientists say the agency's move suggests the administrator does not value their collective knowledge. They add that they "cannot in good conscience be complicit in our co-chairs removal, or in the watering down of credible science, engineering and methodological rigour that is at the heart of that decision".
The Democrats have called on the EPA to furnish documents by 31 May to further their oversight responsibilities, including all communications, records and analysis related to the decision not to renew the appointments.
https://chemicalwatch.com/56007/democrats-question-pruitt-on-science-board-dismissals
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Nationwide Testing Shows Many Canned Foods Still Contain Chemical Linked to Cancer, Birth Defects
May 17, 2017 | Safer Chemicals, Healthy Families
By CJ Frogozo
Nearly 40% of cans from leading national retailers still contain BPA.
Oakland, CA- Despite well-documented health hazards and years of scientific warnings, a new report, “Kicking the Can? Major retailers still selling canned food with BPA,” released today by the Center for Environmental Health (CEH) shows that millions of Americans who eat canned foods are still being exposed to the toxic chemical bisphenol A (BPA). The report details testing on more than 250 canned foods, finding that nearly 40% of cans contain BPA, a chemical that is known to cause birth defects and has been linked to breast cancer, prostate cancer, diabetes, obesity, heart disease and other serious health problems. The testing also found some cans lined with a toxic substitute, PVC plastic.
For the new CEH report, cans were purchased between January and April of this year, from eleven states: California, Idaho, Maryland, Massachusetts, Michigan, New York, North Carolina, Ohio, Oregon, Rhode Island, and Virginia. The majority of the cans were purchased from four national retailers: Kroger, Albertsons/Safeway, Dollar Tree and 99 Cents Only.
The CEH report compares its 2017 findings with testing on canned foods that were purchased in 2015 and reported on in last year’s Buyer Beware report released by Breast Cancer Prevention Partners, the Campaign for Healthier Solutions, Clean Production Action, Ecology Center, and the Mind the Store Campaign. Findings from the new report show:
Nearly 40% of the cans tested used BPA-containing linings. While this is down from the 2015 report, which showed 67% of cans with BPA, CEH warns that the threat of exposure to BPA from canned food remains high.
The contents from four cans that tested positive for BPA were tested by an independent lab for BPA contamination; all four tested positive for BPA in the food.
The two largest grocery chains in the country, Kroger and Albertsons, continue to still sell canned food lined with toxic BPA. 36% of Albertsons’, and 33% of Kroger’s “private label” food cans tested positive for this harmful chemical.
Cans purchased from certain dollar stores were more likely to contain BPA, a particular concern for low-income communities of color who live in “food deserts” where canned food from the local dollar store is often the most convenient and affordable option. Studies show that people in these communities have, on average, higher levels of BPA in their bodies than the rest of the population.
While some companies are moving away from BPA in their canned foods, there is inadequate safety information on the materials they are using to replace BPA. 19% of the cans tested use linings containing PVC, a toxic substitute. Other substitute linings found by CEH include materials that have not been adequately evaluated for safety.
BPA is an endocrine disrupting chemical (EDC) that can alter the body’s natural hormones and cause serious health problems. Scientists say that tiny amounts of EDCs can affect the body, especially when people are exposed at critical developmental stages, such as during fetal development or puberty. Pregnant women and the developing fetus, children and teens may be most at risk from exposures to BPA from canned foods. In California, state scientists in 2015 unanimously agreed that BPA should be added to the state’s list of chemicals known to cause birth defects.
Over the past year, pressure has been growing on the nation’s largest grocery and dollar stores to eliminate and safely substitute toxic BPA. Advocates with the Mind the Store campaign delivered over 150,000 petitions to Kroger and 130,000 to Albertsons at each of their corporate headquarters, and last June held a protest outside of Kroger’s annual shareholder meeting.
The Mind the Store Campaign and Campaign for Healthier Solutions have been challenging the nation’s top retailers and dollar stores to phase out harmful chemicals. In response to consumer demand, major retailers have recently announced policies to eliminate toxic chemicals from other products. Just last month, the national drugstore chain CVS announced it would eliminate harmful chemicals from its store brand cosmetics. In January, Target announced a new policy to drive harmful chemicals out of apparel, beauty, personal care, and cleaning products.
Quotes:
“These companies have known for years that BPA is a serious health threat, yet too many of their food cans still contain this dangerous chemical,” said Caroline Cox, Research Director at CEH. “Americans deserve safe food for their children and families. It is past time for grocery retailers and dollar stores to end this health threat and develop safer alternatives for canned foods.”
“Across the nation, our health and our environment are under attack. Now more than ever, we need dollar stores to reduce our exposure to toxic chemicals found in some food containers and household items they sell. Often, the only place for people of color and low-income communities to shop is at these discount retailers. It’s time for all retailers to double down and protect the most vulnerable – and especially the dollar stores,” said José T. Bravo, Coordinator of the Campaign for Healthier Solutions.
“The nation’s two largest grocery chains, Kroger and Albertsons, have the power to drive toxic BPA out of food packaging and safeguard our health,” said Mike Schade, Mind the Store Campaign Director for Safer Chemicals, Healthy Families. “While this new report shows that some progress had been made, it underscores the need for retailers to commit to completely phase out BPA, ensure substitutes are safe, and develop systemic safer chemical policies.”
The CEH report, findings, photos and other information can be found at ceh.org/toxicBPA.
http://saferchemicals.org/newsroom/nationwide-testing-shows-many-canned-foods-still-contain-chemical-linked-to-cancer-birth-defects/
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(ACC Mentioned) Senators See Appalachian Shale as 'a Real Field of Dreams'
May 19, 2017 | Plastics News
By Frank Esposito
Government and industry officials see big things ahead in plastics and petrochemicals for the Appalachian region of the United States.
U.S. Senators Shelley Moore Capito and Joe Manchin and U.S. Representative David McKinley — all from West Virginia — met with reporters on May 18 in Washington to mark the release of a new report about Appalachia's potential from the American Chemistry Council. ACC President and CEO Cal Dooley also took part in the event.
"Energy and manufacturing are critical to growth in our state," Capito said. "With the Marcellus, Utica and Rogersville shale deposits, we have plenty of resources, and we want to keep the value of those resources in our region."
"This is a game changer for us," Manchin added. "It's a real field of dreams — build it and they shall come."
Capito, Manchin and U.S. Sen. Rob Portman of Ohio have introduced an act to assess the benefits of building an underground ethane storage and distribution hub in central Appalachia. Ethane is derived from natural gas and can be converted into plastics feedstock ethylene.
Manchin and Capito also have sent a letter to Gary Cohn, director of the National Economic Council, encouraging him to examine the benefits of the storage hub.
"We began three years ago with the idea of storing ethane in the Northeast instead of on the Gulf Coast," McKinley said. "If we can engage more states and get [the ethane hub] in the infrastructure bill, I have a lot of confidence that we can get it done."
ACC's report describes a scenario with a storage hub for natural gas liquids and for chemicals such as ethylene and propylene, as well as a 500-mile pipeline network for the four-state area of Ohio, West Virginia, Pennsylvania and Kentucky. Appalachia generally is considered to cover parts of those four states.
By 2025, this scenario could create 100,000 permanent new jobs in the region, according to the 28-page report. The ACC analysis also projects a $32.4 billion investment in petrochemicals in the region and a $3.4 billion investment in plastic products. This would include polyethylene resin being made at three ethane crackers and polypropylene resin being produced at two propane dehydrogenation (PDH) locations.
Shell Chemical Co. already is in the early stages of construction on a massive petrochemicals plant in the Pittsburgh area that would include more than 3 billion pounds of annual PE production. Several new ethane crackers and production units for ethylene and PE also are being built in Texas and Louisiana because of newfound supplies of natural gas in that region.
Total investments projected in Appalachia by ACC also could lead to $2.9 billion in new federal, state and local tax revenue annually.
"In the last 10 years, [the United States] has gone from high-cost to being among the lowest-cost producers of chemicals in the world, because of natural gas and hydraulic fracturing," Dooley said at the May 18 event. "We've got 300 new chemical facilities on the board [in the U.S.] with half of them started or completed."
"This is a once in a lifetime opportunity to further expand our base by capitalizing on gas formations," he added. "We've got a competitive advantage globally, and the nice thing about the Appalachia region is that it's close to the manufacturing center of the U.S., including the auto sector and the upper Midwest."
http://www.plasticsnews.com/article/20170519/NEWS/170519880
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May 19, 2017 | The News Center
By The Associated Press
West Virginia's U.S. senators are urging federal officials to consider building a major natural gas storage and distribution hub in the Appalachian region of West Virginia.
In a letter Thursday to National Economic Council Director Gary Cohn, the senators say the White House should examine "the numerous benefits" of putting a world-class natural gas liquid-storage and distribution hub in the region with growing but still underutilized reserves of underground natural gas.
Sens. Joe Manchin and Shelley Moore Capito cite an American Chemistry Council study that an Appalachian hub could attract $36 billion in new chemical and plastics industry investment and create 100,000 new jobs.
They write that building a hub and related infrastructure "will attract sorely needed economic activity to this underserved part of the country."
http://www.thenewscenter.tv/content/news/WV-Senators-urge-federal-officials-to-build-natural-gas-facilities-in-Appalachian-region-of-state-423178904.html
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Industry Prods Trump Team for Quick Relief from Obama Rule
May 19, 2017 | E&E Energywire
By Ellen M. Gilmer
Industry and environmental groups are gearing up for another round of fighting over an Obama-era plan to slash methane emissions from oil and gas operations on public lands.
The American Petroleum Institute this week urged Interior Secretary Ryan Zinke to postpone compliance deadlines for venting and flaring restrictions under the previous administration's Methane and Waste Prevention Rule.
"With requirements of the Final Rule already applicable and deadlines approaching to initiate a multitude of acts to meet future compliance dates in the Final Rule, swift action from your Department is needed to provide certainty for operators of federal oil and gas leases subject to its terms," API President Jack Gerard wrote in a letter to Zinke.
The request comes a week after the Senate failed to approve a Congressional Review Act resolution that would have scrapped the Bureau of Land Management rule.
Industry and states are already challenging the rule in court, and the Trump administration has promised to review it. But companies are concerned about compliance costs they're facing now, as well as stricter requirements that kick in in January 2018.
API wants BLM to issue a proposed rule that postpones compliance dates by two years. It's unclear how such a proposal would affect parts of the rule that are already in force, including requirements that companies estimate fugitive methane emissions and adjust their royalty calculations.
API says postponing compliance dates is appropriate in light of President Trump's "energy independence" executive order, which directs Interior to review the methane rule.
Zinke has already pledged to replace the Obama-era plan with a more flexible approach to preventing methane waste on public and tribal lands.
"With this work ongoing, postponement of the compliance dates in the Final Rule is critical and immediately necessary so that companies subject to the Rule are relieved not only from the burdens of compliance with currently applicable requirements but also expenditures and other burdensome actions necessary to comply with upcoming requirements, any of which may be changed or withdrawn as a result of the review directed by the Secretarial Order," Gerard wrote.
Environmental groups are expected to push back on any effort to soften or postpone provisions of the rule.
Mark Brownstein, vice president for U.S. climate and energy at the Environmental Defense Fund, slammed API's request as an attempt to "avoid implementing basic, long-overdue measures to reduce waste and protect public health."
"We believe that there would be no valid basis for delaying these vital protections, and will defend vigorously against any effort to prevent them from being implemented," he said in a statement.
EPA rule
Separately yesterday, industry and states scored a win in a related battle over a different set of methane standards from U.S. EPA.
Those restrictions, which apply to new or modified oil and gas operations, have been the subject of a high-stakes legal battle since last summer.
The U.S. Court of Appeals for the District of Columbia Circuit yesterday granted the Trump administration's request to put the case on hold indefinitely while EPA rethinks the rule (E&E News PM, May 18).
The move drew cheers from West Virginia Attorney General Patrick Morrisey (R), who led a coalition of states challenging the regulation in court.
"Today's decision by the court is a victory for working families in West Virginia," he said in a statement. "We appreciate the Trump Administration's willingness to review the devastating impact of the oil and gas rule and look forward to hearing the new administration's take on this unlawful regulation."
Environmentalists again vowed to fight agency efforts to weaken the standards.
"We will continue to stand with Americans across the country to defend these clean air measures against any attempts to weaken or undermine them," EDF attorney Peter Zalzal said in a statement.
https://www.eenews.net/energywire/2017/05/19/stories/1060054811
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Oil Industry Asks Zinke to Delay Rule 2 Years
May 19, 2017 | E&E Climatewire
By Brittany Patterson
The American Petroleum Institute is urging Interior Secretary Ryan Zinke to postpone upcoming compliance deadlines that will affect oil and gas operators, a move prompted by the Senate's failure to kill an Obama-era methane rule earlier this month.
In a letter sent Tuesday, API told Zinke "swift action" is needed so that oil and gas operators on public and tribal lands are not forced to invest in equipment to meet methane reductions set out in the rule overseen by the Bureau of Land Management. The regulation, finalized in November, limits flaring, venting and equipment leaks at more than 100,000 oil and gas wells across the West.
API urged Zinke to direct BLM to postpone the compliance dates by two years, "in light of the fact that any final determinations from the review and rulemaking processes will likely take several months."
In a surprise move last week, the Senate came up one vote short in its attempt to use the Congressional Review Act to nullify BLM's Methane and Waste Prevention Rule. The Interior Department has committed to taking a second look at the regulation as specified by President Trump's "energy independence" executive order issued in March.
However, because the methane rule remains in place, oil and gas operators face having to purchase expensive leak detection and repair equipment. Stricter requirements for producers are scheduled to begin on Jan. 1, 2018.
In the letter, API argues that changes to the methane rule are likely due to Trump's recent executive order and Interior's subsequent secretarial order, which detailed how the agency would comply. Both target the rule for review.
"With requirements of the Final Rule already applicable and deadlines approaching to initiate a multitude of acts to meet future compliance dates in the Final Rule, swift action from your Department is needed to provide certainty for operators of federal oil and gas leases subject to its terms," wrote API President and CEO Jack Gerard.
Mark Brownstein, vice president of U.S. climate and energy for the Environmental Defense Fund, criticized API for trying to skirt an opportunity for the public to comment.
"Having lost in federal district court in Wyoming, and again last week in Congress, industry is wasting no time trying to find an alternative path to avoid implementing basic, long-overdue measures to reduce waste and protect public health," he said in a statement. "Any changes to BLM's safeguards to reduce waste must be made available to the public for comment before they are finalized, and must be based on sound evidence."
https://www.eenews.net/climatewire/2017/05/19/stories/1060054817
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Oil and Gas Execs Top Zinke's Meeting List
May 19, 2017 | E&E Greenwire
By Corbin Hiar
In his first two months on the job, Interior Secretary Ryan Zinke had more meetings with oil and gas industry executives than representatives of any other type of interest group.
Zinke met more than half a dozen times with officials from over 20 oil and gas companies or trade groups in March and April, secretarial calendars recently posted online by the Interior Department show. He also had several conversations with industrial water users, as well as individuals and groups that donated to his congressional campaigns and helped elect President Trump.
Some notable oil and gas executives he sat down with include the leaders of Chevron Corp., BP America Inc., Exxon Mobil Corp. and Halliburton Co. and Continental Resources Chairman and CEO Harold Hamm. Zinke also met with top officials from oil and gas trade groups such as the American Petroleum Institute, National Ocean Industries Association and Western Energy Alliance.
Trump campaigned in part on increasing oil and gas development, and the meetings are further evidence that Interior aims to make good on that promise.
The department has already moved to rescind a hydraulic fracturing rule that set new requirements for fracked wells on tribal and public lands and has indicated it will overhaul regulations on methane waste from oil and gas operations. Both actions are strongly supported by the companies and trade groups with which Zinke has met (E&E News PM, May 10).
The oil and gas industry's unmatched access to the secretary may also be related to the central role it played in advancing his political career.
Other than real estate interests, no other industry gave more to Zinke than oil and gas, according to federal election data analyzed by the nonpartisan Center for Responsive Politics. During two election cycles, he received more than $352,000 from the oil and gas industry.
Zinke also had met separately with officials from the Metropolitan Water District of Southern California and with executives from luxury real estate company Coldwell Banker Previews International. The latter meeting was described as being about "Regulatory issues facing the Western U.S. in regards to agriculture; balancing environmental concerns with droughts concerns; Secretary's objectives in CA."
Another meeting was with Jean Sagouspe, a California almond grower and former Westlands Water District board member. Deputy Interior secretary nominee David Bernhardt previously lobbied for Westlands (Greenwire, May 11).
The National Rifle Association and other major donors to Trump or Zinke also scored meetings with the secretary. Chris Cox, the NRA's top lobbyist, sat down with Zinke and other top Interior officials at least three times in the past two months, the calendars show.
The NRA spent more $30.3 million during the 2016 race in support of Trump or targeting Democratic presidential nominee Hillary Clinton. That was more than any other outside group, the Center for Responsive Politics found.
Other megadonors Zinke sat down with include Landon Ash, the CEO of Alabama-based defense contractor Xtreme Concept Inc. Ash hosted a fundraiser for Zinke, a former Navy SEAL commander, during his first run for Congress in 2014.
"Several SEALs who now work for Xtreme served under Ryan Zinke, so we're especially pleased to be able to call him 'Congressman' now," the CEO told the website Yellowhammer after his win.
Interior didn't respond to a request for comment about Zinke's meetings with oil and gas execs or former donors.
Zinke also had a meeting with Minnesota Reps. Tom Emmer (R) and Rick Nolan (D) about a controversial mine that the company Twin Metals Minnesota LLC wants to build 3 miles from Boundary Waters Canoe Area Wilderness, a 1.1 million-acre swath of crystal-clear lakes and dense north woods forests (see related story).
Last year, Interior and the Forest Service denied Twin Metals' application, citing environmental concerns over excavation as well as local opposition to the project. They also imposed a moratorium on mineral development in the area to allow an environmental study to move forward (Greenwire, Dec. 15, 2016).
Other notable events in Zinke's calendars include a 15-minute call with former Vice President Dick Cheney and a 30-minute call with Tom Farrell, the executive chairman, CEO and president of Dominion Resources Inc. A subsidiary of Dominion is looking to build a controversial 17-mile-long transmission line that would pass over the Captain John Smith Chesapeake National Historic Trail — the first and only congressionally designated water trail (Greenwire, June 28, 2016).
Zinke's calendars are also significant because of what they are missing. None of the meetings he had while in California or in travels to his home state of Montana are listed. The secretary did, however, often send out photos from such events.
"A couple House guys on a road trip to learn about @YosemiteNPS!" Zinke said in one tweet typical of the form. "Good 2 have my friend & fmr colleague @RepMcClintock."
https://www.eenews.net/greenwire/2017/05/19/stories/1060054851
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Court Pauses Lawsuit Over Obama Methane Rule
May 18, 2017 | The Hill - E2 Wire
By Devin Henry
A federal court on Thursday formally paused a lawsuit over an Obama administration methane regulation.
The order, from the Court of Appeals for the District of Columbia, halts consideration of an oil industry suit challenging the Environmental Protection Agency’s (EPA) rules cracking down on methane emissions from oil and gas drilling wells.
President Trump signed an executive order in March asking the EPA to review that regulation as part of an effort to undo several Obama-era environmental rules he argues hurt the energy industry.
In early April, Trump administration lawyers asked the court to hold the case in abeyance because they had started the process of reviewing the rule.
“Pursuant to the executive order, EPA is initiating its review of this rule and providing advanced notice of forthcoming rulemaking proceedings consistent with the president’s policies,” federal lawyers wrote in a motion then.
“If EPA’s review concludes that suspension, revision or rescission of this Rule may be appropriate, EPA’s review will be followed by a rulemaking process that will be transparent, follow proper administrative procedures, include appropriate engagement with the public, employ sound science, and be firmly grounded in the law.”
A three-judge panel formally paused the rule in a one-paragraph ruling on Thursday.
The methane case is one of several to be stalled following Trump’s March executive order on energy.
A federal court is also weighing whether to pause litigation over the Obama administration’s landmark climate rule, the Clean Power Plan.
Supporters of the rule say the court should not freeze the case and instead send the rule back to the EPA for rewriting. Such a decision would allow Clean Power Plan backers to file a new lawsuit against the Trump administration if and when regulators decide to repeal the rule.
http://thehill.com/policy/energy-environment/334143-court-pauses-lawsuit-over-obama-methane-rule
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U.S. Bank Not Banking on New Natural Gas Pipelines
May 19, 2017 | Natural Gas Intelligence
By Joe Fisher
Looking for capital to construct a natural gas pipeline? Don’t look to Minneapolis-based U.S. Bancorp, parent of U.S. Bank.
And for hydraulic fracturing (fracking) or oilsands exploitation, prepare to be scrutinized closely before the bank agrees to do business.
“The company does not provide project financing for the construction of oil or natural gas pipelines,” said U.S. Bancorp’s 2017 Environmental Responsibility Policy, which was released in April. “Relationships with clients in the oil and gas pipeline industries are subject to the bank’s enhanced due diligence processes…”
Unconventional oil/natural gas production (fracking, oilsands, Arctic, Alaska, offshore) as well as coal mining, forestry, metals mining and power generation (nuclear, coal, hydroelectric) all will engage enhanced due diligence by the bank, it said.
If the bank doesn’t like natural gas or oil, it seems to dislike coal more. Those engaged in mountaintop removal mining are mostly unwelcome. Further, “the company prohibits direct project financing of coal-fired power plants and relationships that involve constructing such plants.”
“Environmental sensitivity is an important component of our credit, investment, underwriting and payment procedures and is integrated into our overall risk management philosophy...Most importantly, our oversight of customers incorporates awareness of the environmental impact they have, including our customers from the energy sector.”
The bank does want to increase its investments in renewable energy, including wind, solar, geothermal, biomass, biofuels, waste recycling, and waste energy recovery/conservation systems, it said.
http://www.naturalgasintel.com/articles/110518-us-bank-not-banking-on-new-natural-gas-pipelines
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TransCanada Northwestern Mexico Pipeline to be Finished This Year
May 19, 2017 | Natural Gas Intelligence
By Joe Fisher
TransCanada Corp.’s El Encino-Topolobampo Pipeline project in northwestern Mexico is nearly complete with the exception of a “small portion” that was delayed by negotiations with indigenous people.
With the dispute resolved, in-service is expected later this year, TransCanada spokesman Shawn Howard told NGI. TransCanada began recognizing revenue from the project last July under a force majeure provision in its 25-year contract with Mexico’s Comision Federal de Electricidad (CFE).
The pipeline interconnects with TransCanada’sMazatlán Pipeline project to create the El Encino-Mazatlán system. It “is one of the most ambitious and challenging natural gas pipeline projects in the country’s history,” TransCanada says on the project’s website.
“Due to the geographical challenges posed by crossing the Sierra Tarahumara, the project is being built using state-of-the-art technology and innovative construction techniques.
“When complete, the 560-kilometer (348-mile) 30-inch diameter pipeline will help connect the states of Chihuahua and Sinaloa, supplying numerous communities along the way.” According to TransCanada’s website, capacity is 670 MMcf/d.
The pipeline would also supply the 230 MW Topolobampo power plant as well as power plants Topolobampo II and III when they are built.
TransCanada won the $1.1 billion contract with CFE for the project in 2012.
The El Encino-Mazatlán system is composed of two parts: El Encino-Topolobampo, and El Oro-Mazatlan, which would provide 202 MMcf/d of capacity via a 30-inch diameter, 430-kilometer (267-mile) pipeline for a power plant in Mazatlan.
“The El Encino-Mazatlán system is considered as an important trigger of industrial, economic and social development of the state of Sinaloa, since it will provide access to natural gas to companies and populations in the state,” TransCanada’s website says.
http://www.naturalgasintel.com/articles/110521-transcanada-northwestern-mexico-pipeline-to-be-finished-this-year
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Storage Company Vopak Fined for Chemical Emissions
May 18, 2017 | Fuel Fix
By Ryan Maye Handy
Vopak Logistics Services USA, part of the Dutch chemical storage company Royal Vopak, was fined $2.5 million for violations of the Clean Air Act, the U.S. Environmental Protection Agency said on Wednesday.
The EPA claims the company’s mismanagement of equipment released chemicals — including acetone and benzene — into a wastewater treatment system. EPA also alleged that Vopak didn’t follow federal regulations for flaring.
As part of the settlement with the EPA, Vopak will install infrared cameras to detect pollution coming from chemical storage tanks at its Deer Park facility in Harris County.
Chemical emissions, such as chemical solvents or car exhaust, can interact with the atmosphere in the presence of sunlight to create ozone, which can be harmful to human health. The Clean Air Act regulates ozone amount present in the atmosphere.
Vopak’s fine will be split between federal government and the state of Texas. The settlement is still subject to final court approval and a 30-day public comment period. Click here for information on how to comment.
http://fuelfix.com/blog/2017/05/18/storage-company-vopak-fined-for-chemical-emissions/
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DHS Chief Warns 'Lives are at Risk' from Cyberthreat
May 19, 2017 | E&E Energywire
By Blake Sobczak
President Trump signed a recent executive order on cybersecurity to "reaffirm" the administration's alliance with the private sector to tackle the problem, Homeland Security Secretary John Kelly said yesterday.
Kelly told a group of technology and telecommunications executives yesterday that the president "understands and appreciates the importance of a strong partnership with the private sector to strengthen cybersecurity," adding that "cybersecurity is one of the highest priorities of DHS and this administration."
Last week's order calls for a series of DHS-led studies on everything from the tech workforce shortage to the adequacy of cybersecurity disclosures from major publicly traded companies (Energywire, May 12).
In theory, the results of the reviews could open the door for a more active government role in protecting infrastructure from hackers, though few expect a Republican-led administration to seek new binding cybersecurity regulations as part of that agenda.
Kelly's pledge for a cooperative approach marks a continuation of the cybersecurity strategy favored by President Obama. The White House's previous cyber policy leader, Michael Daniel, often stressed the need for an effective "partnership" with critical infrastructure operators (Energywire, Sept. 14, 2016).
But Kelly's remarks at a meeting of the president's National Security Telecommunications Advisory Committee carried new urgency in the wake of a global ransomware attack that infected hospitals in the United Kingdom, public transportation networks and thousands of other systems.
"It's not an overstatement that lives are at risk" from the cyberthreat, he said. "We know we must improve. We have to improve: We have no other choice as our world becomes more interconnected."
Kelly said he was proud of his department's response to last Friday's "WannaCry" ransomware pandemic, noting that "before I even knew what was going on, the outreach had already been accomplished" between DHS and private companies in jeopardy. He said the event "underscores the importance" of improving the nation's cybersecurity and updating old systems.
A homeland security official reported that a bare handful of American critical infrastructure operators were "affected" by the WannaCry ransomware, which encrypts victims' computer files and holds the key hostage.
https://www.eenews.net/energywire/2017/05/19/stories/1060054822
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Zinke Deputy Reveals Few Clues on Climate Policy
May 19, 2017 | E&E Climatewire
By Brittany Patterson
Observers searching for clues to the Trump administration's climate change policies for public lands didn't learn much yesterday from the Interior Department's likely No. 2.
At a confirmation hearing before the Senate Energy and Natural Resources Committee, deputy secretary nominee David Bernhardt acknowledged the science behind climate change. He demurred on if and how the agency might factor it into its regulatory agenda.
Ultimately, Bernhardt said it would be his job to carry Trump's agenda for the nation's public lands forward.
"My task will be to take the science as we find it and put it into paradigm of the administration's policy perspective, which is we're not going to sacrifice jobs for this, and then look at the legal framework and then say ... how do we apply the law there," he testified.
Randi Spivak, director of the Center for Biological Diversity's Public Lands Program, said she came away from the hearing with the understanding that Bernhardt, and by extension, the agency, would focus his efforts on expanding fossil fuel extraction regardless of impacts to global emissions.
"Bernhardt pretty much said, 'Yeah, I recognize [climate change is] a contributor, but my job is to represent President Trump and his policy directive,' and we know that Trump is a climate denier and his agenda is fossil fuels first," she noted. "He said that in no uncertain terms."
If confirmed, the lawyer and former solicitor for the George W. Bush-era Interior Department would effectively become second in command at the agency, leading day-to-day activities and overseeing policy implementation.
Sen. Debbie Stabenow (D-Mich.) asked if the new Interior leadership would respect the findings made and data collected by agency scientists and use them to inform policy, especially in an era when scientists feel attacked.
Bernhardt strongly denied that Interior scientists are under attack.
His explained that his approach to using science tracks closely with how scientific data could be best used to satisfy the laws Interior must uphold.
"We look at the science, then we apply the law, and we have to learn the science; we have to understand it," he said. "We don't manipulate it, and if we're going to use data, we should say why it's one person's versus another."
Bernhardt, a native of rural Colorado, said he agrees that science has made a "very significant" contribution to understanding climate change, but went on to tell Sen. Al Franken (D-Minn.) that the "reality" is science in this administration is going to be seen through its unique "policy perspective."
He added that to the extent the law allows, Interior is "absolutely going to follow the policy perspective of the president."
"And here's why: That's the way the republic works, and he is the president," Bernhardt added.
Democratic senators pressed Bernhardt on past ethical issues, including allegations that he condoned doctoring scientific data to downplay the risk of how oil drilling would affect caribou in the Arctic National Wildlife Refuge and then used the false data in Senate testimony.
Also of concern was the nominee's extensive lobbying record. Bernhardt was paid at least $80,000 last year by energy and environmental interests. A host of ethical issues that plagued Interior while he served as its chief ethical officer also came up.
Republican senators brushed off those concerns and seemed satisfied with the nominee's explanations of how he handled past ethical issues.
Chairwoman Lisa Murkowski (R-Alaska) closed the hearing by reminding her colleagues that past Obama-era confirmed nominees — including Deputy Secretary David Hayes and Assistant Secretary for Land and Minerals Management Janice Schneider — similarly bounced between the private sector and government service and were still confirmed.
"I look forward to moving your name quickly through the confirmation process," she said. "I think Secretary Zinke has a big job in front of him and he needs a team, and I think you can be a valuable asset to the team."
https://www.eenews.net/climatewire/2017/05/19/stories/1060054816
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Democrats Grill Interior Nominee Over Energy Industry Ties
May 19, 2017 | Roll Call
By Elvina Nawaguna
President Donald Trump’s deputy Interior secretary nominee David Bernhardt sidestepped questions during his Thursday confirmation hearing about whether he believes in climate change, saying instead that regardless of what the science says, he will follow the president’s the policy positions.
At the hearing by the Senate Energy and Natural Resources Committee, Republicans praised Bernhardt as “uniquely qualified” and Democrats raised objections to his long history as a lobbyist for oil, gas and mineral firms that could benefit from his appointment.
“We are absolutely going to follow the policy perspective of the president,” Bernhardt said in reply to a question from Sen. Al Franken, D-Minn., about his climate change views. “That’s the way our republic works because he’s the president.”
Trump has previously said that climate change is a hoax created by China to undermine American competitiveness and has promised to walk away from the Paris agreement to cut carbon emissions as a way to combat global warming — though his current position on the issue is not clear.
Bernhardt, who leads the natural resources department at Washington law firm Brownstein Hyatt Farber Schreck LLP, is a former congressional staffer, longtime lobbyist and attorney who has challenged the Interior Department in courts on behalf of clients.
During the George W. Bush administration he served as the Interior Department’s chief legal officer, and as counselor to the secretary and director of the Office of Congressional and Legislative Affairs. Bernhardt has been criticized by environmental advocates for pushing for oil and gas drilling in the Arctic and Wyoming during his Bush years.
At the hearing, Energy and Natural Resources’ top Democrat, Maria Cantwell of Washington, said she was concerned about potential conflicts of interest rising from Bernhardt’s representation of oil and gas companies as a lobbyist and attorney.
“Mr. Bernhardt is now seeking to come back through this revolving door to regulate the same companies he has [represented],” Cantwell said.
She also warned that Bernhardt’s service at the Bush Interior Department came at a time when the agency faced scrutiny over a “culture of ethical failures.”
In a May 1 letter to the Interior Ethics Office, Bernhardt said he would withdraw from his law firm “and all related entities” if confirmed. He also said he will for one year after that withdrawal “not participate personally and substantially in any particular matter involving specific parties in which I know the firm is a party or represents a party,” or any case where he has a direct financial interest unless given a waiver.
Cantwell called for Bernhardt to recuse himself from those decisions for his entire tenure at Interior. He would not commit to that, saying instead he would consult with the ethics office any time a potential for conflict of interest arose, and follow the office’s decision.
Bernhardt told lawmakers he would approach Interior issues with “an open mind” and “listen to varied views and perspectives.”
“We will cooperate and collaborate with states,” he said, adding that he would be respectful of the states’ ability to manage their natural resources.
Chairwoman Lisa Murkowski praised him as an “excellent choice” who understands Western issues. And Environment and Public Works Chairman John Barrasso of Wyoming said Bernhardt was “keenly aware that this administration doesn’t want to continue the business-as-usual” of the Obama administration.
In response to a question from Barrasso about how he would reduce regulatory burdens on industry, Bernhardt said he would simplify environmental impact analyses that bog down permitting processes.
“We are a country that is suffering from analysis paralysis,” Bernhardt said. “If it’s a bad project, we need to say it’s a bad project and move on.”
Sen. Debbie Stabenow, D-Mich., asked whether he could be trusted at a time when “scientists and science are under attack under this administration.” Bernhardt said scientific decisions need to be balanced with the law and the impact on jobs.
“My integrity on science is unquestionable and that is a fact,” he said.
Murkowski did not give an indication of when a vote to advance Bernhardt’s nomination would be held, but said she is looking to move ahead “as expeditiously as possible.”
http://www.rollcall.com/news/policy/77437-2
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