Page 13 - NorthAmOil Week 05 2022

NorthAmOil POLICY NorthAmOil

US judge annuls Gulf of Mexico lease sale

GULF OF MEXICO A US federal judge has annulled the first Gulf of Now, there is further leasing-related uncer-
Mexico lease sale held by the administration of tainty following the latest court decision.
US President Joe Biden. The surprise decision Judge Rudolph Contreras of the US District
marks the latest development in a saga that has Court for the District of Columbia ruled to
been playing out since Biden took office just over vacate Lease Sale 257 entirely, saying the US
a year ago. Department of the Interior (DoI) had failed
One of the Biden administration’s early moves to properly account for the auction’s impact
was to launch a review of the federal oil and gas on climate change. The ruling came in a legal
leasing programme and its impact on climate challenge brought by the environmental group
change. Lease sales were initially suspended Earthjustice.
while the review was underway, but a number The Biden administration had used a years-
of oil and gas-producing states filed a lawsuit old environmental impact statement (EIS) for
against the Biden administration, which led to Lease Sale 257. Contreras found that the EIS did
lease sales being reinstated. not take foreign consumption into account in its
The first offshore federal lease sale was held analysis of greenhouse gas (GHG) emissions, as
November 2021, generating more than $190mn well as not containing the latest findings about
– the highest figure since 2019, with stronger oil the impact of oil and gas development on climate
and gas prices thought to be one of the major fac- change.
tors behind the increase. The Biden administration will now need
Around the same time, the Biden adminis- to carry out its own assessment of the climate
tration published its review of the federal leasing impact of lease sales and the production that
programme, proposing a number of reforms but stems from them. It has not said how long such a
falling short of his campaign pledge to stop new review would take or whether it would suspend
federal oil and gas leasing. other federal lease sales in the meantime.™

ENERGY TRANSITION

Enbridge partners with indigenous

group on Alberta carbon storage hub

ALBERTA CANADA’S Enbridge has announced that Cement unit followed last week.
it is partnering with the First Nation Capital The FNCIP was formed by the Alexander
Investment Partnership (FNCIP) – a group First Nation, Alexis Nakota Sioux Nation, Enoch
formed by four First Nations – to advance the Cree Nation and Paul First Nation to pursue
proposed Open Access Wabamun Carbon Hub ownership in major infrastructure projects with
in Alberta. commercial partners. The carbon hub is the
In a February 3 statement, Enbridge said the FNCIP’s first partnership. The Lac Ste. Anne
hub was being developed to support carbon Métis Community will also have the opportu-
capture and storage (CCS) projects recently nity to pursue ownership in future projects asso-
announced by Capital Power and Lehigh Han- ciated with the hub, Enbridge said.
son Materials – and potentially other similar “We see indigenous economic partnerships
initiatives. The hub is anticipated to provide a like this as critical to advancing reconciliation
combination of carbon dioxide (CO2) trans- and delivering world-class projects,” stated
portation and storage options. Enbridge said it Enbridge’s executive vice-president and presi-
would be among the largest integrated carbon dent of liquids pipelines, Colin Gruending.
transportation and storage projects in the world, The FNCIP-Enbridge partnership comes as
with the potential to capture nearly 4mn tonnes other initiatives to build a carbon hub in Alberta
per year (tpy) of CO2 emissions. are also progressing. According to CBC News,
The announcement follows memoranda of bids were due to be submitted to the government
understanding (MoUs) signed by Enbridge of Alberta on February 1 for a CCS complex in
with both Capital and Lehigh in relation to the province. In the run-up to the deadline,
the Wabamun Carbon Hub. The MoU with a coalition of local indigenous groups was
Capital Power to collaborate on CCS in the reported to be taking part, with major oil and
Wabamun area, close to Capital Power’s Gen- gas companies having also expressed an interest
esee Generating Station, was unveiled in late in participating. No further updates on this have
November. An MoU with Lehigh’s Lehigh emerged as yet.™

Week 05 03•February•2022 www. NEWSBASE .com P13