Article Summary –
The Snowy River project, a proposal to inject 150 million tons of carbon dioxide beneath southeastern Montana, has been questioned by local residents due to a lack of information and consultation. The initiative, backed by oil and gas company Denbury, part of ExxonMobil, would involve drilling 15 wells and injecting them over a 20-year period with sufficient carbon dioxide to match the annual emissions of 1.6 million cars. Critics argue that the project could incentivize the extraction of CO2-rich natural gas without the benefits other carbon capture projects promise, while there are concerns about potential impacts to wildlife, grazing resources, and water supplies.
Ridge Resident Dan Dinstel Discusses Montana’s Snowy River Project
Montana’s Snowy River project, a proposal to store 150 million tons of carbon dioxide deep underground, was introduced to Ridge resident Dan Dinstel via an announcement in the local newspaper, the Ekalaka Eagle. The Bureau of Land Management (BLM) plans to address climate change by permanently preventing the most common greenhouse gas from entering the atmosphere.
Dinstel, who returned to Carter County after a career in engineering in Alaska, is worried about the project’s details omitted from the 228-page environmental assessment. The environmental assessment is essentially a project application submitted by the oil and gas company Denbury Inc.
Dinstel is aware that the project is situated near a large Denbury-owned carbon dioxide pipeline and that the company aims to inject 15 wells over 20 years with carbon dioxide equivalent to the annual emissions of 1.6 million cars.
The local resident also knows that Denbury, a wholly-owned subsidiary of ExxonMobil, was acquired in a $5 billion deal last year. The acquisition was part of ExxonMobil’s strategy to expand its carbon reuse and sequestration expertise and reduce emissions in its operations.
However, Dinstel is unsure of how federal officials perceive the first geologic carbon sequestration project proposed in Montana. Despite the cold reception in Carter County due to concerns about the sequestration technology and potential impacts on wildlife and resources, he believes Snowy River is under close examination.
“The decisions are being made somewhere other than the Miles City Field Office,” Dinstel said. “We just feel like it’s getting run down our throats whether we like it or not.”
Despite multiple requests for comment, neither ExxonMobil nor Denbury provided clarity on the project’s timeline, cost, or the amount the BLM stands to receive from leasing federal land to the project.
Environmental advocacy organizations are mainly concerned about the source of the carbon dioxide to be injected into the project’s wells. They suspect the project will facilitate further extraction of carbon-emitting fossil fuels due to poorly implemented tax incentives.
According to stakeholders, the Snowy River project will unlikely help to mitigate climate change. Instead, it may result in more carbon emissions due to the energy required for capturing, pressurizing, and transporting the CO2.
Rising interest in geologic carbon sequestration projects is due to recent federal policy changes, according to energy observers. Dinstel believes the Snowy River project factors in a federal tax incentive known as 45Q, which encourages investment in greenhouse gas reduction technologies.
Funding and Potential Impacts of the Snowy River Project
Although carbon sequestration projects are expensive, changes in federal policy could make Snowy River financially viable. The project, located in a region with limited economic development, could generate economic benefits for Carter and Fallon counties, according to Denbury’s environmental assessment.
While the project could create jobs and potentially boost local tax collections, concerns have been raised about potential impacts on wildlife habitat, fossil sites, and public health. For instance, a rupture in the CO2 pipeline could lead to rapid oxygen depletion, as occurred in a Denbury-operated pipeline in Mississippi in 2020.
Public commentary on the project is open until April 17, 2024, via the BLM’s e-planning website.
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