Lincoln, Neb. — April 9, 2024, — Tallgrass, Bold Alliance, and multiple organizations
across Nebraska announced a first-of-its-kind Community Benefits Agreement (CBA)
associated with the Tallgrass Trailblazer carbon dioxide (CO2) sequestration project.
The agreement between Tallgrass and Bold Alliance received endorsements from 11
statewide organizations, including Renewable Fuels Nebraska, the Nebraska State
Volunteer Firefighters Association, the Nebraska Farm Bureau, the Nebraska Corn
Growers Association, the Nebraska Cattleman, the Nebraska Farmers Union, the
Nebraska Soybean Association, the Nebraska Sorghum Producers Association,
the Nebraska State Dairy Association, the Nebraska Pork Producers Association
and We Support AG.
This landmark agreement sets a new precedent for pipeline infrastructure by
establishing a series of community initiatives as well as creating rigorous landowner
rights protections throughout the pipeline’s life cycle, from early project development
through easement negotiations, operations, and decommissioning.
Other near and long-term benefits provisioned by the CBA include:
- A $500,000 funding commitment to nonprofits in the counties associated
with the project. - A $400,000 funding commitment to equip first responders throughout the
development of the project, as well as ongoing annual funding to support
replenishing and replacing essential equipment once the project is
operational. - There is a $200,000 funding commitment to train first responders as the
project comes online, as well as an annual obligation, once operational, to
provide public safety notifications to the families who live along the pipeline
right of way. - A requirement, at the time of decommissioning, that the easements are
returned to landowners who may elect to have the pipeline abandoned
in place or removed from their property.
The CBA additionally establishes a 10-year, two-part, shared-value program. By
achieving operations on schedule, this program establishes provisions for
landowners to receive an annual royalty payment and for a community foundation to
receive an annual endowment — based on the total amount of CO2 the project
sequesters. The annual royalty payment program for landowners applies not only to
future easement negotiations, but also to landowners who have already signed
easements for the CO2 pipeline.
“Bold believes that those who live in our rural towns and whose land is needed to
develop American energy should receive direct financial and community benefits,” said
Jane Kleeb, founder of Bold Alliance. “Tallgrass’s existing pipeline was initially built for
natural gas delivery, and the conversion they are undertaking to transport carbon
dioxide highlights the need for additional community benefits which are met under this
agreement,” Kleeb continued. “Tallgrass is the first pipeline company we have
encountered that has been willing to engage proactively, acknowledge the need for the
landowner benefits that Bold fights to achieve, and genuinely commit itself to
addressing those benefits by written agreement. The commitments between Bold and
Tallgrass must set a standard for future energy infrastructure developers and for future
regulatory reform that ensures stronger community and landowner benefits are
enshrined in our state and federal laws.”
“We appreciate the time and effort that Bold Alliance and so many organizations
across Nebraska have invested to achieve this milestone. Everyone involved
worked hard to bridge the challenges of reaching a groundbreaking agreement like
this one because of a common commitment to seeing Nebraska win. This project is
a critical element of Nebraska’s bioeconomy — creating new markets and
increased value for the biofuels industry, the family farms who supply them, and
the communities they call home,” said Kyle Quackenbush, Segment President of
Tallgrass. “At Tallgrass, our pipeline infrastructure has been safely powering
Nebraska’s economic growth for decades. We are proud to have found common
ground with so many key community organizations to keep Nebraska at the
forefront of innovation and economic growth in the decades to come.
