August 5, 2010
posted on: Aug 05, 2010
Meetings and Announcements
Western Energy Alliance Testifies at EPA Air Quality Hearing
The Environmental Protection Agency (EPA) held a meeting this week to receive public input on further regulation of industry under the New Source performance standards (NSPS) and national emission standards for hazardous air pollutants (NESHAP). EPA is reviewing the regulations and making a determination on whether to proceed with additional regulation under the Clean Air Act. They are required to review regulations every eight years, but were compelled to do so now in their settlement of a lawsuit brought by WildEarth Guardians and the San Juan Citizens’ Alliance. It’s important to note that over 100 other sectors have NESHAP and NSPS standards that have also failed to meet these timelines, but the oil and gas industry is blessed to have the environmental lobby looking out for us.
In the statement, Western Energy Alliance pointed out that air emissions have steadily decreased per unit of production, and that oil and gas production is a small source of emissions compared to other sectors, as shown in our presentation. EPA was particularly interested in our WRAP Phase III regional air emissions data. The inventory, funded by Western Energy Alliance members, is a case where industry has provided scientific data that not only provides regulators with accurate data that don’t overestimate our emissions, but also improves our public perception.
The audience was probably split between pro- and anti-industry people. COGA got more mileage out of the studies done for the COGCC rules change process, showing oil and gas workers have no higher incidence of cancer over the long term than do the general population. John Jacus with Davis Graham and Stubbs gave a detailed presentation of all the regulations that currently apply, and highlighted the additional stringent regulations that states impose. Industry’s main points were that a federal one-size-fits-all approach is not practical nor necessary, while the environmental groups were pushing for further control by EPA, to the point that the WildEarth Guardians even suggested that EPA should control well pad siting as a method of air quality control.
Several Sierra Club members were testified, as well as the Wyoming Outdoor Council, Natural Resources Defense Council, Western Resources Advocates, Environment Colorado, and San Juan Citizens’ Alliance. The Environmental Defense Fund noted that the oil and gas industry is the third-largest source of U.S. emissions of methane, making sure to highlight the fact that it’s a greenhouse gas that is more than 20 times more effective in trapping heat in the atmosphere than carbon dioxide. What they fail to mention is that all oil and gas methane emissions, from production to refining and distribution to the end consumer, represent only 2% of America’s total GHG emissions, and that the subject of this regulation is just upstream production and some midstream. EDF’s solution is a laundry list of emissions controls and practices such as outlawing pits and flaring.
The next step is for EPA to make a determination on whether to propose new standards, and if so, to do so by January 31, 2011. Since going after the oil and gas industry is one of eco-warrior (as dubbed by The Rolling Stone) EPA Administrator Lisa Jackson’s stated priorities, we can all guess what that determination will be.
Below is a snapshot of Western Energy Alliance in the press coverage.
EPA weighs tougher air pollution rules on drillers
in: E&E Land Letter on:08/05/2010 by: Eryn Gable
Kathleen Sgamma, director of government affairs for the Western Energy Alliance, warned that additional regulation could compel energy companies to move their operations overseas to countries with less-stringent standards, costing American jobs and ultimately leading to more environmental damage. “Certainly it makes sense to comply with the law, and to review those regulations. But the outcome should not necessarily be lots of additional, onerous regulation,” she said.
EPA undertakes overdue review on oil, gas rules
published in: Associated Press on: 08/04/2010 by: Catherine Tsai
Kathleen Sgamma of the Western Energy Alliance, a trade group, said at the EPA meeting Tuesday that onerous regulations would make it more difficult to produce energy domestically and lead to more importation. She noted other sources of air pollution and said regulators should focus on industries with higher emissions.
Agency to tackle drilling pollution
published in: Durango Herald on: 08/04/2010 by: Joe Hanel
“How many lives would be lost or quality of life degraded if we didn’t have affordable energy to heat our homes in the winter; generate electricity to power dialysis machines, life-support and medical diagnostic equipment; and fuel to safely transport our loved ones?” said Kathleen Sgamma, director of government affairs for the Western Energy Alliance.
Tougher Pollution Rules on Oil and Gas Industry Weighed
published in: KUNC Radio on: 08/03/2010 by: Kirk Siegler
“Certainly it makes sense to comply with the law, and to review those regulations. But the outcome should not necessarily be lots of additional, onerous regulation,” says Sgamma, Director of Government Affairs for the Denver-based Western Energy Alliance.
Another Look at Colorado’s Air Quality
published in: 5280 on: 08/04/2010 by: Staff
Kathleen Sgamma of Western Energy Alliance, a trade group, says any onerous requirements by the EPA would make it more difficult to produce energy domestically and could prompt more importation. Environmental groups, meanwhile, praise the process.
Western Energy Alliance in other News
Movement in Western oil-gas lease backlog in Wyo.
published in: Associated Press on: 07/31/2010 by: Mead Gruver
News that the BLM is issuing leases is encouraging, said Kathleen Sgamma, government affairs director for the petroleum industry group Western Energy Alliance. “But we continue to be concerned by the uncertainty by the lengthy time, in this case over two years, and the fact that federal leases are still in limbo,” she said.
Events Update
Western Energy Alliance will soon be announcing speakers and dates for our fall speaking series. The Distinguished Speaker Series along with some special engagements will offer compelling topics and speakers from all over the country. The Western Energy Alliance speaker events offer a great networking and exposure opportunities for our members to develop business, reconnect and share important news with the organization at large. Key sponsorship opportunities are available today. Click here to become a sponsor and/or contact Becca Ness with any questions.
Other Upcoming Meetings
Utah Basin Advisors Network – August 10th, 10:00 a.m.
Joint Air Quality/Natural Gas Committee – August 24th, 11:30 – 1:00 p.m.
Visit westernenergyalliance.org for the latest news affecting the Intermountain West’s oil and natural gas industry. Headlines are updated daily from local, national and international news sources.
The West
Feds OK project to drill under, not on, wild areas
published in: Associated Press on: 07/29/2010 by: Paul Foy
An energy company received federal approval Thursday to take natural gas from a largely untouched, picturesque region of Utah by agreeing to use new technology to drill under wild areas instead of on top of them.
Related: Click here to see Western Energy Alliance’s regional competitiveness survey referenced in today’s E&E Land Letter article, “Industry, enviro pact allows Utah drilling project to proceed.”
Western Election News
Maes holds slight edge over McInnis, poll says
published in: Denver Post on: 08/01/2010 by: Michael Booth and Colleen O’Connor
Weeks of publicity for former U.S. Rep. Scott McInnis over plagiarism appear to have melted his previously huge lead over Evergreen businessman Dan Maes in Colorado’s Republican gubernatorial primary.
Democratic gubernatorial candidates Petersen, Gosar happy to succeed Freudenthal
published in: Casper Star-Tribune on: 08/02/2010 by: Tom Mortan
Leading primary Democratic gubernatorial candidates Leslie Petersen and Pete Gosar would be happy to succeed the very popular Democratic Gov. Dave Freudenthal, they said Sunday.
New Mexico Race Gives Big Donors Last Splash (subscription required)
published in: Wall Street Journal on: 08/01/2010 by: Stephanie Simon
The two women vying to be New Mexico’s next governor are both promising to clean up a state sullied by a string of political fund-raising scandals, but both are taking full advantage of the state’s unusually loose campaign-finance laws.
Colorado
EnCana grant keeps local man employed
published in: Citizen Telegram on: 08/05/2010 by: Heidi Rice
There was a time when Jesse Montover of Silt never thought he’d have a steady job or income because of his developmental disability.
Drillers trying to cap well in Colorado
published in: 9 News on: 08/04/2010 by: Liz Lambert
The water may not look quite right in Fourmile Creek this week, after crews drilling for water hit some unexpected pressure that forced about 1,600 to 2,000 gallons of water per minute to flow into the creek, along with non-toxic drill mud and road base from the drill pad which discolored the water.
Colorado oil drilling aimed to bring business to small towns
published in: Denver Post on: 08/01/2010 by: Steve Raabe
In the shadow of Colorado’s largest wind farm, the new-energy economy is taking a back seat to old-fashioned oil. Drilling rigs are springing up in areas of Weld County largely bypassed by the natural-gas boom of the past decade.
Montana
Montana Oil: The Next Bakken Rush
published in: Energy & Capital on: 08/02/2010 by: Keith Kohl
Sometimes a story just doesn’t unfold the way you expect it to. For Montana’s oil industry, the carpet was pulled out from underneath them when the media’s attention was snatched away by the state’s neighbor to the east…
Permit activity shows Montana oil back in play
published in: Billings Gazette on: 08/01/2010 by: Tom Lutey
After a major slowdown, oil permits filed with the state of Montana are on the rise again.
New Mexico
Oil and gas pipeline fatalities peak in NM, Tex., study finds
published in: New Mexico Independent on: 07/29/2010 by: Bryant Furlow
New Mexico and Texas have seen more people killed by oil and gas pipeline accidents since 2000 than any other states, concludes a new study of refinery and pipeline accidents and pollution released Thursday by the National Wildlife Federation.
North Dakota
North Dakota jumps to No.3 in overall rig activity
published in: Associated Press on: 08/03/2010 by: James MacPherson
North Dakota has overtaken Oklahoma as the third-busiest state for oil and natural gas drillers, ranking behind only Texas and Louisiana, according to a Houston-based company that tracks such activity.
A brighter future beckons as the oil boom strengthens
published in: Grand Forks Herald on: 08/03/2010 by: Mike Jacobs
Evidence that this oil boom is serious just grows and grows. This week, the number of oil rigs working in North Dakota passed the total in Oklahoma, making North Dakota the third most active state for oil exploration.
More more more: State hopes to assess oil boom needs
published in: Bismarck Tribune on: 08/01/2010 by: Lauren Donovan
Not long ago, a good number for new workers needed every year in the oil patch was 1,200.
Utah
Utahns give Salazar an earful on public lands
published in: Salt Lake Tribune on: 08/04/2010 by: Christopher Smart
Utahns from all walks of life came together Tuesday to talk about public lands. But despite all the polite discussion in close quarters, the various interests remain miles apart.
Wyoming
Groups protest 64 of 76 leases at Wyo. BLM auction
published in: Associated Press on: 08/02/2010 by: Mead Gruver
Environmental groups are protesting all but a dozen of the 76 latest oil and gas leases that the U.S. Bureau of Land Management plans to auction off in Wyoming.
Private mineral owners in Wyo. to auction rights
published in: Associated Press on: 07/29/2010 by: Staff
A group of people who own mineral rights in eastern Wyoming say they’re planning to sell those rights to oil developers in a public auction.
Washington Watch
CLEAR bill is clear loser
published in: E&P Magazine on: 08/05/2010 by: Rebecca Torrellas
The US House of Representatives voted 209-193 in favor of HR 3534 – known as the CLEAR Act – the bill that would overhaul offshore drilling guidelines.
Greens defend climate tactics
published in: Politico on: 08/05/2010 by: Darren Samuelsohn
Environmentalists went with an all-or-nothing strategy for the 111th Congress. Nothing won. Now, green groups licking their wounds after spending tens of millions of dollars to pass a cap-and-trade bill must answer serious questions about whether they are capable of playing another round of hardball.
Report: Reid mulling broader energy bill
published in: The Hill on: 08/04/2010 by: Ben Geman
Senate Majority Leader Harry Reid (D-Nev.) is open to broadening the energy package that has been delayed until after the August recess, according to a news report.
DeGette has high hopes for protecting lower-elevation acres as wilderness
published in: Grand Junction Daily Sentinel on: 08/04/2010 by: Dennis Webb
A Colorado congresswoman who has been pushing for passage of a Colorado wilderness bill for 11 years says she is optimistic she can get a measure through Congress this fall.
Why 2 million (promised) green jobs couldn’t sell a climate bill
published in: Los Angeles Times on: 08/03/2010 by: Jim Tankersley
From the early days of the Obama administration, environmentalists believed that they had found the message to carry them to victory in what promised to be a grueling debate over energy and climate policy.
House approves oil spill bill; stalled in Senate
published in: Associated Press on: 07/31/2010 by: Matthew Daly
The House has approved a bill to boost safety standards for offshore drilling and remove a liability cap for oil spills, but a partisan fight in the Senate will likely delay action on a response to the Gulf oil spill until Congress returns from its summer recess.
Media Watch
Editorial: Land debate
published in: Salt Lake Tribune on: 08/05/2010 by: Editorial Staff
Secretary of the Interior Ken Salazar was in Utah this week to listen. And he got an earful from people with widely differing ideas about how America’s publicly owned lands should be used, or not used.
Carroll: Cap and trade: It’s the cost, stupid
published in: Denver Post on: 08/04/2010 by: Vincent Carroll
“Of course I’m angry,” declared 4th District Rep. Betsy Markey after hearing last week that the Senate had abandoned efforts to pass a comprehensive energy bill. “This is a national-security issue. It’s critical that we break our dependence on Middle East oil.”
Samuelson: Hope for our energy future
published in: Washington Post on: 08/02/2010 by: Robert J. Samuelson
You probably have never heard of oilman George Mitchell, but more than anyone else, he has changed the global energy outlook.
Editorial: Good news for gas
published in: Grand Junction Daily Sentinel on: 08/01/2010 by: Editorial Staff
Those who believe a strong natural gas industry is critical for this region’s economy — a large majority of the local populace, no doubt — should take heart from two news items.
Editorial: Saving Nine Mile
published in: Salt Lake Tribune on: 08/01/2010 by: Editorial Staff
The epic battle for public lands pitting energy developers against environmental groups has yielded few compromises and even fewer agreements outside a courtroom.
Environment and Wildlife
Study: Amount of water for oil shale production is less than estimated
published in: Grand Junction Daily Sentinel on: 08/03/2010 by: Gary Harmon
An oil shale industry producing the equivalent of 1.5 million barrels of oil per day might require significantly less water than had been previously believed, a study suggests.
Lynx may yet get critical habitat protection in Colorado
published in: Summit County News on: 07/30/2010 by: Bob Berwyn
A federal judge has ruled that the U.S. Fish and Wildlife Service violated the Endangered Species Act when it excluded Colorado from a critical habitat designation for threatened Canada Lynx.
Technology, Alternative & Renewables
Tilting with wind turbines — a legal war slows industry growth
published in: New York Times/CliamteWire on: 08/04/2010 by: Peter Behr
It’s being called “the turbine wars.” General Electric Co. and Mitsubishi Heavy Industries Ltd., the Japanese industrial behemoth, are locked in a 2-year-old, escalating legal battle over patents surrounding GE’s wind generators, which have been the leaders in the fast-growing American wind power market.
Turbines Too Loud? Here, Take $5,000
published in: New York Times on: 07/31/2010 by: William Yardley
Residents of the remote high-desert hills near here have had an unusual visitor recently, a fixer working out the kinks in clean energy.
Markets
What Drove the NatGas Rally?
published in: CNBC/The Schork Report on: 08/03/2010 by: Stephen Schork
Natural gas bulls are the Buffalo Bills of the commodities complex! Over the last three months Nymex Henry Hub natural gas futures for prompt delivery have rallied from a low of 3.855 (May 06th) to a high of 5.196 (June 16th).
Williams Partners gets OK for pipeline project
published in: Associated Press on: 08/03/2010 by: Staff
Williams Partners LP said Monday the Federal Energy Regulatory Commission approved plans for a $36-million expansion of its Transco natural gas pipeline in the Southeast.
El Paso gets OK to start building Ruby Pipeline
published in: Associated Press on: 08/02/2010 by: Staff
El Paso Corp. has received regulatory approval to start building a new natural gas pipeline to run from Wyoming to Oregon.
Industry News and Events
Energy Development on Public Lands Conference
August 16-17, 2010 in Denver, CO
Western Energy Alliance will be speaking at the Law Seminars International Energy Development on Public Lands conference on August 16th & 17th in Denver. Click here for more information.
Geothermal in the Oil Field Symposium
August 18-19, 2010 in Casper, WY
The U.S. Department of Energy’s Rocky Mountain Oilfield Testing Center (RMOTC), the National Renewable Energy Laboratory (NREL), and Southern Methodist University (SMU) Geothermal Laboratory are partnering to host a two-day geothermal symposium in Casper, Wyoming. The symposium will highlight the application of low-temperature geothermal power production in oil and gas operations and other settings in the western United States.
This first-of-its-kind symposium will cover low-temperature projects throughout the western U.S. and provide an opportunity for participants to learn of the remarkable potential for power generation using co-produced fluids from existing oil, gas, and industrial infrastructure with minimal additional environmental impacts.
Click here to register or call (888) 599-2200 or talk@rmotc.doe.gov.
Front Range Energy Career Expo and Forum
September 24, 2010
The 2010 Front Range Energy Career Expo and Forum, which takes place at Red Rocks Community College, is designed as an educational event for high school students in the Denver Metro area to bring college representatives, energy companies, and students together in one location, to present information about college options and career opportunities to the future generation of leaders. This year’s event will be co-hosted by High Plains Communications, LLC and Red Rocks Community College. Click here for a summary of the event.
Lunch will be provided for all attendees, and we will have separate break-out sessions for teachers and counselors. Please contact Jaime Gardner or (970) 597-0696 for more information. Click here to download the Expo/Booth registration form. Click here to download the sponsor form.
RPSEA 2010 Small Producer Program Request for Proposals Released
Proposals will be accepted well in advance of the due date, which is September 28, 2010, 4 p.m., Central Time,
Click here for more information.
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