The Nickel Report

Below are some key points from two CCUS-related events in Texas last week: the annual CO₂-EOR Conference in Midland, which has been going on for almost 30 years; and a symposium our firm hosted with the University of Houston on CCUS risk management. We’ll start with the latter.

The lesser prairie-chicken (LPC) is a grouse that occupies a five-state range, including the western areas of Kansas and Oklahoma, the Texas Panhandle, eastern New Mexico, and southeastern Colorado.  As we explained in a previous article, in response to litigation and following a nearly thirty-year history of regulatory listing and delisting, the US Fish and Wildlife Service (FWS or Service) proposed to re-list two distinct population segments (DPS) of the LPC under the Endangered Species Act (ESA) in June, 2021.[1]  86 Fed. Reg. 29,432 (June 1, 2021).  The Service has now issued a final rule listing the Southern DPS of the LPC (covering southwest Texas Panhandle and eastern New Mexico) as endangered and the Northern DPS of the LPC (covering southwestern to southcentral Kansas, western Oklahoma, northeast Texas Panhandle, and southeast Colorado) as threatened under the ESA.  87 Fed. Reg. 72,674 (Nov. 25, 2022).  The rule becomes effective on January 24, 2023. 

This article follows up on two prior articles published by Hunton Andrews Kurth LLP attorneys focusing on the Department of the Interior’s (“DOI”) funding of state orphaned well programs[1] and the Biden Administration’s promise of a greater emphasis on consulting with indigenous people and acknowledging their communities’ cultures, customs, sacred sites, and historical knowledge in the contexts of environmental planning, sustainability, and justice, and in ongoing and forthcoming federal decision making and regulatory rulemaking.[2]

On November 16, 2022, the California Air Resources Board (CARB or the Board) proposed a new Scoping Plan for the reduction of greenhouse gas (GHG) emissions.  Generally, the Scoping Plan is a means by which the Board can assess California’s progress toward achieving carbon neutrality by 2045, and issue new policies and strategy to meet that goal.  The Board is required by law to update the Scoping Plan every five years, and this is the third such update since the California legislature enacted the California Global Warming Solutions Act in 2006.  CARB staff are touting the Scoping Plan not only as reducing GHG emissions, but also as leading to the creation of four million new jobs and the avoidance of $200 billion in pollution-related health expenditures.

On November 28, 2022, the Council of the European Union (EU) formally adopted the Corporate Sustainability Reporting Directive (CSRD), following the European Parliament’s formal adoption of the directive earlier last month. The CSRD is a broad environmental, social, and governance (ESG) reporting framework that will impose uniform, mandatory reporting requirements on many companies with European operations, including companies not based in Europe.