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Landmark NE agreement takes proactive approach to CO2 pipeline risks

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Friday, April 26, 2024   

CO2 pipelines are on the increase in the United States, and like all pipelines, they come with risks. Preparing for those risks is a major focus of the Community Benefits Agreement between Nebraska-based Bold Alliance and Tallgrass Energy Solutions.

Tallgrass plans to modify an existing gas pipeline that crosses Nebraska to transport CO2.

Bold Alliance Director Jane Kleeb said her organization stands with communities facing energy infrastructure projects, to help ensure they have what they need and that the company is giving back. She pointed to Satartia, Mississippi's 2020 experience with a massive CO2 pipeline leak as evidence of the importance of first-responder training.

"We have real money in here," she said, "$400,000 initially, and then an additional $200,000 for training and $100,000 for an emergency response system that first responders will get, to equip their mostly-volunteer firefighters."

Not only did the Mississippi first responders lack the training for a CO2 disaster, Kleeb said, but some were unaware the pipeline even existed.

Tallgrass has said it will conduct yearly training for first responders in the 10-county area, and send yearly notices to all landowners along the route. Kleeb said she expects the firefighter training to begin within the next few months.

CO2 is colorless, odorless and displaces oxygen, making it potentially deadly. It can disable internal-combustion engines on vehicles needed for evacuation. Although CO2 pipelines cover more than 5,000 miles in the United States and continue to be built, Kleeb said federal regulations aren't yet in place.

"For folks listening, you may be, like, 'What do you mean they don't have regulations in place?' And that's what we've been saying for the last few years: We need regulations in place," she said. "No pipeline will go into operation in our state until those regulations are finished, and Tallgrass then knows the type of safety valves and other things they have to put in place to be in compliance."

This month, a pipeline rupture in Sulphur, Louisiana, leaked more than 2,600 barrels of CO2 and took two hours to control.

Another provision in the Community Benefits Agreement is annual royalty payments, which Kleeb calls a "significant win" for Nebraska landowners.

"Landowners are now going to be getting 10 cents per metric ton that is sequestered of the carbon," she said. "So, that could be up to $1 million every year that will go back to landowners in the path of this pipeline."

Kleeb said no pipeline companies in the Midwest currently pay landowners a royalty for use of their land.


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