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International CCS Regulators’ Forum

Mr. Marston attended the International CCS Regulators’ Forum sponsored by the International Energy Agency in Paris on March 1-2, 2011.  More information regarding the workshop can be found on the IEA’s site:

· 3rd IEA International CCS Regulatory Network Meeting

 

IOGCC issues Final Report for Pipeline Infrastructure for Transport and Storage of CO2

December 31, 2010.  As reported on the IOGCC website, the IOGCC has issued its final report which focuses

“on the transportation of carbon dioxide (CO2) through pipelines from a “source” to a geologic ”sink,” the possibility of a federal mandate requiring capture and storage of CO2, and provides an overview of carbon capture drivers, the geologic means of storing CO2. It also describes the nature, size, and location of the significant CO2 pipeline system currently operating in the United States. It describes the state and federal regulatory regime, under which the current CO2 pipeline system operates. An analysis is made of the regulation of CO2 pipeline systems under the Interstate Commerce Act and the Natural Gas Act and potential business models for future CO2 pipeline build-out. Potential regulatory models are described and there is discussion of economic issues relative to future construction of CO2 pipelines. Conclusions and recommendations suggest that the market is responding to current CO2 pipeline construction demand.  Conclusions recommend that future market response to those needs occur with limited federal intervention.”

Mr. Marston served as one of the principal authors of the Final report of the CO2 pipeline TTF of the IOGCC.

The report can be found at several sites:

· Final Report through the IOGCC server

· Final Report through the Southern States Energy Board Site

· Final Report found here on Marston Law

 

IEA Publishes Model Framework for CCS

November, 2010  The International Energy Agency (IEA) in Paris has  published their model for CCS regulation: “Model Regulatory Framework for Carbon Capture and Storage.”

The document is available at:

· http://www.iea.org/ccs/legal/model_framework.pdf

The advisory committee members for the Model Framework can be found at:

· Advisory Committee for Model Framework

 

Presentation on CO2 Pipeline Regulation at the GHG-10

September 19-23, 2010  Mr. Marston presented a paper on CO2 pipeline regulation at the GHG-10, the 10th International Conference on Greenhouse Gas Control Technologies, sponsored by International Energy Agency's Greenhouse Gas Research & Development Programme (IEA GHG)  (http://www.ghgt.info/index.php/Content-GHGT10/overview.html).  The paper is titled: "A Regulatory Framework for Migrating from Enhanced Oil Recovery to Carbon Capture and Storage: the USA Experience".  The paper summarizes the current legal and regulatory framework applicable to transportation and underground injection of CO2 in connection with EOR operations in the United States and identifies those elements that are adequate to support CO2 transport and injection for purposes of geologic sequestration and those that are not.   Following a review of regulatory developments in the United States, the paper seeks to distill those principles from the American experience that may have applicability for the statutes and rules being developed to transpose the European Union's CCS Directive into binding national norms.

The paper is available at:

· A Regulatory Framework for Migrating from Enhanced Oil Recovery to Carbon Capture and Storage: the USA Experience                                     

For more information about the GHGT-10 conference, including registration, please visit the GHGT-10 site at:

· http://www.ghgt.info/GHGT10_CONF_Reg.html.

 

“Une perspective Washingtonienne sur l’échec de Copenhague :

les causes, le contexte et les conséquences”

On March 22, 2010, Mr. Marston offered a US perspective on the Copenhagen climate

conference, explaining the role of coal in the US electricity economy, its political consequences

and the potential to marry the demand for CO2 for Enhanced Oil Recovery operation with the

supply of the gas that may result from the application of carbon capture technologies in power

generation.

 

Further information on the conference series at the Ecole des Mines de Paris (Mines ParisTech) is available at

· http://www.mines-energie.org/conferences.html

A PDF version is available at:

· http://www.mines-energie.org/Conferences/PR_100322_Marston.pdf

 

EPA Issues Final Endangerment Finding

December 7, 2009: The EPA has issued its Final Endangerment Finding, stating that the concentrations of the six “key” greenhouse gases found in the atmosphere, including carbon dioxide, are a threat to the health of both current and future generations.

The above Finding is being challenged in the United States Court of Appeals for the District of Columbia sub nom. Coalition For Responsible Regulation, Inc., v. EPA, D. C. Cir. No. 09-1322 (initial petitions for review filed December 23, 2009).   It is anticipated that the petitioners may challenge the scientific findings in the IPCC documents upon which the EPA's finding is based, including the allegations of data manipulation raised by the disclosure of emails and data from the University of East Anglia's Climate Research Unit.

A book has now been published addressing the controversy surrounding the disclosure of the East Anglia CRU materials and explaining what they may mean for the underlying scientific findings.  See Steven Mosher and Thomas W. Fuller, "Climategate: The CRUtape Letters" (2010).  http://www.amazon.com/Climategate-Crutape-Letters-Steven-Mosher/dp/1450512437

 

EPA’s Final Mandatory Reporting Of  Greenhouse Gases Rule

September 22, 2009: The EPA has issued its final rule adopting mandatory reporting of carbon dioxide emissions produced by major sources in the United States.  The proposed rule had been issued in March of 2009 and has now been finalized. 

· Final Mandatory Reporting of Greenhouse Gases Rule

The EPA specifically addressed issues raised by companies using CO2 in enhanced oil recovery (EOR) operations. 

· See Volume 41 of EPA’s response to public comments.

The Mandatory Reporting Rule is being challenged in multiple consolidated cases in the United States Court of Appeals for the District of Columbia sub nom. 

American Chemistry Council v. Environmental Protection Agency, D. C. Cir. No. 09-1325, et al. (Order consolidating cases issued January 8, 2010).

 

EPA’s Notice of Data Availability and Request for Comment for Geologic Sequestration Requirements

August 31, 2009:  The EPA’s notice of data availability was published on August 31, 2009, requesting public comment on new data and related issues in response to comments on the original proposal from the summer of 2008.  The NODA provides additional information and data on allowed injection depths and presents a proposed alternative for further comment. 

Comments on the contents of this NODA must be received on or before October 15, 2009.

The federal register version of the NODA is available at:

· http://edocket.access.gpo.gov/2009/pdf/E9-20920.pdf

Additional background is available from the EPA at:

· http://www.epa.gov/ogwdw000/uic/wells_sequestration.html#regdevelopment

 

 

Waxman—Markey Clean Energy Bill passes in the House

June 26, 2009:  The House of Representatives passed the landmark American Clean Energy and Security Act, sponsored by Rep. Henry A. Waxman, Chairman of the House Energy and Commerce Committee, and Rep. Edward J. Markey, Chairman of the House Select Committee on Energy Independence and Global Warming.  For more information and a link to the complete bill, please see the House of Representatives page.

 

Publication of European Union’s CCS Directive

April 23, 2009:  The European Union’s CCS Directive has been issued, as of April 23, 2009.  Under the directive, the member states have two years to transpose it into binding national law.  The Directive sets out the conditions under which geological sequestration will qualify as an emissions reduction that will be able to be monetized through the EU Emissions Trading System.  See the CO2 Regulatory News from the EU page for more details.

· Directive 2009/31/EC of the European Parliament and of the council of 23 April 2009

 

Wyoming adopts first CO2 unitization statute

Wyoming has clarified the potential impact on property rights from last year’s bills referenced below.  The new statues make it clear that the law preserves and protects preexisting mineral interests.  In addition, HB 80 creates a unitization mechanism for the creation of CO2 storage units.  HB 80 is believed to be the first and only such statute in the United States.   Please see the CO2 State Initiatives page to link to the three 2009 House Bills.  

 

Environmental Protection Agency Proposes First National Reporting on Greenhouse Gas Emissions

March 10, 2009: The US Environmental Protection Agency has proposed the first comprehensive national system for reporting emissions of carbon dioxide and other greenhouse gases produced by major sources in the United States.  Detailed information regarding the proposed rule can be found on at the following link:

· Proposed Mandatory Greenhouse Gas Reporting Rule

 

Energy Law Journal - C02 Regulation

November 11, 2008:  Philip M. Marston and Patricia A. Moore have recently published an article which examines important issues with regards to carbon regulation.  The article, From EOR to CCS: The Evolving Legal and Regulatory Framework for Carbon Capture and Storage, can be found in Volume 29, No 2 (2008) of the Energy Law Journal, located at the following link:

· Energy Bar Association– Energy Law Journal

 

Climate Change Legislation in the House

October 7, 2008:  Representatives John Dingell and Richard Bouchard released a discussion draft of climate change legislation on October 7, 2008, stating that the draft "is the culmination of nearly two years of intensive work on climate change by the Committee and marks an important step in our ongoing efforts to address this increasingly serious problem".

 

The text of the discussion draft of the legislation and supporting documents are available from the Committee's website at:

· http://energycommerce.house.gov/Climate_Change/index.shtml

 

Energy Bar Association: Climate Change and Emissions Committee Meeting

On September 23, 2008, the EBA will be hosting a meeting to discuss “Carbon Capture and Storage: Can it be done, and how will it be regulated?”  The meeting will take place from 12 pm—1:30 pm (E.T.) and can be attended in person or via teleconference.  For details about registration and location, please see the EBA’s attached announcement. 

 

Wall Street Banks Announce Formation of The Carbon Principles

February 4, 2008:  Citi, JPMorgan Chase and Morgan Stanley combined to promulgate the Carbon Principles, “a set of guidelines for advisors and lenders to power companies in the United States.”  The group of banks collaborated with power companies and environmental groups in “a nine-month intensive effort to create an approach to evaluating and addressing carbon risks in the financing of electric power projects.” 

· February 4, 2008 Press Release

 

Bank of America Announcement on Carbon Costs

Bank of America has announced that it will begin assessing the cost of carbon in its risk and underwriting processes in evaluating the business models of utility sector companies. They estimate that absent Federal legislation the cost of carbon will fall between $20-$40 per ton.

· February 12, 2008 Speech by Ken Lewis, Chairman and Chief Executive Officer, Bank of America

 

Paris Europlace Forum, NY

Mr. Marston moderated a panel of French experts on CO2 Emissions trading and weather risk management products and services at the 2007 New York Financial Form of Paris Europlace.

 

Link to Paris-Europlace program:

· http://www.paris-europlace.net/ny07/program.htm

 

 

Doing the deal— Paris CO2 Symposium

Mr. Marston recently gave a presentation at the “2e Colloque International sur le Captage et Stockage Géologique du CO2” in Paris, speaking on standards for carbon sequestration in US Federal and State regulation.

 

Link to the Paris CO2 Symposium:

· http://www.co2symposium.com

 

Link to powerpoint presentation:

· “Doing the deal”: standards for qualifying sequestration under US Federal and state regulation

 

 

The Limits to Liberalization

Mr. Marston recently published a review of both Michel Guénaire’s Le génie français and Nicolas Sarkozy’s Témoignage.

 

Link to the article in the Energy Law Journal:

· The Limits to Liberalization