Taxing Fossil Fuel Giants Could Generate $900 Billion

By Felicity Bradstock

- May 04, 2024, 

The Climate Damages Tax proposal suggests taxing fossil fuel companies in OECD countries to raise funds for climate finance, potentially generating $900 billion by 2030.

The funds could contribute to the Loss and Damage Fund, supporting countries most affected by climate change, and aid communities in richer countries in transitioning to green energy.

The first board meeting for the Loss and Damage Fund is scheduled, but criticism arises over participation restrictions and delays in establishing the board.


Imposing a tax on big fossil fuel companies could boost climate finance by up to $900 billion by the end of the decade. The International Energy Agency (IEA) has repeatedly emphasized the need for higher levels of climate funding to meet global climate goals and achieve a green transition, but finding this money is not so easy. A recent report has potentially identified a way to raise funds to develop the renewable energy capacity of low-income nations, thereby helping the global green transition.

A new Climate Damages Tax report, published in April by the organization Stamp Out Poverty, suggests that taxing major fossil fuel companies based in some of the world’s richest countries could help raise billions of dollars in funding to tackle the effects of climate change and support the development of renewable energy projects in low-income countries around the globe. Levying a tax on firms in the wealthiest Organisation for Economic Co-operation and Development (OECD) countries could provide as much as $720 billion in climate funding by 2030.

The report shows that the tax could be established within existing tax systems. A rate of $5 per tonne of CO2 starting this year in OECD countries and increasing by $5 a tonne each year would provide $900 billion in funding by 2030. The authors suggest that $720 billion of this could be used to contribute to the Loss and Damage Fund, to support countries most affected by climate change. The remaining funds could be used to help communities in richer countries to undergo a green transition in line with national aims.

Several organizations support the aims of the report, including Greenpeace, Stamp Out Poverty, Power Shift Africa, and Christian Aid. The joint director at Greenpeace U.K., Areeba Hamid, explained “We need concerted global leadership to force the fossil fuel industry to stop drilling and start paying for the damage they are causing around the world. A climate damages tax would be a powerful tool to help achieve both aims: unlocking hundreds of billions of funding for those at the sharp end of the climate crisis while helping accelerate a rapid and just transition away from fossil fuels around the world.”

The Loss and Damage Fund was introduced at the COP28 climate summit in Dubai last year, following years of pressure from low-income countries to develop a fund to help alleviate the burden of climate threats on the developing world. Around 200 countries supported the creation of the fund. Many states across the developing world are highly vulnerable to the effects of climate change and do not have the means to tackle climate change or develop their renewable energy capacity to support a green transition. The fund was established to help countries around the world to combat climate change. Representatives from 24 countries must now decide what form the fund should take, which countries should contribute, and where and how the money should be distributed.

The first board meeting for the Loss and Damage Fund is set to take place in Abu Dhabi next week, where the board will select a host for the fund – expected to be the World Bank – as well as discuss other specifics. There have been several delays in establishing a board for the fund, with the first meeting being pushed from January to May, which has attracted criticism over the lack of action.

There has been further criticism over the participation restrictions to the inaugural meeting. Amnesty International’s Climate Advisor Ann Harrison stated, “Amnesty International and other climate justice organizations are deeply concerned about restrictions imposed on the participation of civil society organizations at the first board meeting of the Loss and Damage Fund.” Harrison added, “This inaugural meeting should set a precedent by enhancing and welcoming the participation of civil society, not severely limiting its involvement. Full involvement of civil society would help reflect the views of the often diverse and marginalized communities whose rights are most affected by the climate crisis.”

The Paris Agreement states that richer countries have a greater responsibility to tackle climate change as they have historically been the biggest carbon emitters. High-income countries participating in the COP summits have repeatedly stated their dedication to raising funds to support a global (rather than just a local) green transition, by contributing to the development of renewable energy capacity in low-income nations and supporting them in their fight against climate change. However, to date, little has been done to raise these funds and develop new projects. Raising money through the introduction of a tax on oil and gas producers in rich, high-polluting countries, such as the U.S., the U.K., Japan, Spain, and Canada, could help raise funds for developing countries, as well as attract greater investment in the Fund.

By Felicity Bradstock for Oilprice.com

Brazil wants next Vale CEO to be closer to government

Bloomberg News | May 3, 2024 | 

Alexandre Silveira, Brazil’s Minister of Energy and Mines. (Image by Agência Senado, Flickr.)

Brazil expects the next chief executive officer for Vale SA, the world’s second-largest iron ore producer, to have closer relations with officials and regulators even after public scrutiny over government influence on the company’s succession plan roiled a leadership search earlier this year.


The government wants the next CEO to have ties with states, municipalities and regulators, Alexandre Silveira, the country’s mines and energy minister, said in an interview at Bloomberg’s office in Rome.

“This will be a step forward and we’ll demand it very vigorously,” Silveira said.

Vale’s board expects to announce a new CEO by Dec. 3, when the company holds its investors’ day.

In March, Vale announced Eduardo Bartolomeo would retain the top job while the company conducted a search for a successor. The outcome followed weeks of drama over the selection of Vale’s next leader amid mounting pressure from the Brazilian government to intervene in the succession process, putting a spotlight on its influence in the mining sector.

The market has recognized Bartolomeo’s leadership on safety, including a plan to eliminate dozens of high-risk tailings dams. Still, investors have been concerned about operational performance and the perception that Vale could better navigate relations with states and the federal government.

Silveira criticized the delay in Vale’s succession plan, saying that the sooner there is a change in management, the better the mining company will be able to resolve “pending issues with Brazil.” In the interview, he also indicated that the Brazilian government would reject a new proposal presented by Vale, BHP Group and its joint venture Samarco for a final settlement regarding a 2015 deadly dam collapse. Brazil’s attonery’s general office confirmed in a statement.

Brazil’s energy chief is in Rome, where he had a private meeting with Pope Francis Friday to discuss “a fair and inclusive energy transition that helps fight inequality.” Brazil assumed leadership of the Group of 20 in 2024 and will host the COP30 climate summit in 2025.

(By Mariana Durao and Alessandra Migliaccio)

Brazil rejects Vale, BHP settlement offer for Mariana disaster


3rd May 2024
By: Reuters


Brazil and the state of Espirito Santo have rejected a proposal by miners Vale and BHP regarding reparations for the deadly 2015 Mariana tailings dam burst, the federal government said on Friday.

Vale, BHP and their joint venture Samarco had earlier this week presented authorities with an offer to pay a total of 127-billion reais ($25.03-billion) as reparations for the dam collapse, including 37-billion reais already disbursed.


The offer, however, "does not represent an advance" from the firms' previous proposal in December and contains "inadmissible conditions," the office of Brazil's solicitor general said in a statement.

The November 2015 dam collapse at the Samarco iron ore mine near the town of Mariana, Minas Gerais state, caused a vast flow of mud and mining waste that buried a nearby village, killing 19 people, leaving hundreds homeless and polluting a major river that flows through Espirito Santo.

Near record high LME prices a magnet for Chinese copper exports

Reuters | May 1, 2024 

Copper cathodes (Stock Image)

China’s copper producers are planning to export up to 100,000 metric tons of metal, the largest volume in 12 years, aiming to cool a rally that has propelled prices towards record highs and hit their order books, three industry sources said.


Chinese producers are selling into the rally, driven by a speculative frenzy that took copper prices on the London Metal Exchange (LME) to two-year peaks of $10,208 a metric ton this week, close to the record high of $10,845 hit in March 2022, the sources said.

The sources said about the 100,000 tons of copper was likely to leave China over the next few weeks. The last time China exported this amount in one month was in May 2012, data from Trade Data Monitor (TDM) shows.

However, some say shipping 100,000 tons of copper out of China in a few weeks to LME registered warehouses would be logistically difficult, though not impossible.

Two of the industry sources said much of the copper shipped out of China was likely to come through bonded warehouses in Shanghai, where inventories at 77,800 tons compare with 6,600 tons at the start of 2024.

“China wants to push down the price, end-users are putting their orders on hold,” a copper trader said. “But I would be surprised if it was that much.”

It would also be a fraction of China’s total consumption of about 13 million tons a year or around half of global mined supplies. China has copper resources, but not enough for its needs, it is typically an importer.

“LME prices don’t translate into what we are seeing in the physical market in China. You can see there is excess metal in stock data and premiums,” one of the industry sources said.

Earlier this week, the International Copper Study Group (ICSG) said the global copper market faces a surplus of 162,000 tons this year and a surplus of 94,000 tons in 2025.


Copper inventories in warehouses monitored by the Shanghai Futures Exchange (ShFE) above 287,000 tons from around 33,000 tons at the start of this year are close to four-year highs, a sign of sluggish demand.

The Yangshan premium dropping to a record low near zero signals waning appetite for Chinese copper imports.

“China fundamentals suggest lower prices, but prices are on a tear and smelters keep producing,” the copper trader said.

Sources say the arbitrage between LME and ShFE prices is making it lucrative to export copper. The arbitrage is the money that can be made on trading between the two exchanges, taking into account costs which can include freight and taxes and exchange rates.

A source in logistics said producers had been asking about costs of moving copper from China to LME warehouses.

A source at a Chinese copper smelter is expecting to potentially export 20,000 tons a month if LME prices stay near current levels.

(By Pratima Desai and Siyi Liu; Editing by Veronica Brown and David Evans)

AUTHORITARIAN CAPITALI$M

Barrick CEO ‘can’t see any reason’ for in-person annual meetings

Bloomberg News | May 1, 2024 | 

Stock image.

Barrick Gold Corp.’s chief executive officer says the gold miner will continue to host virtual-only annual general meetings despite calls for public companies to return to an in-person format.


After Barrick hosted its latest virtual-only AGM on Tuesday, CEO Mark Bristow said he “can’t see any reason” to return to in-person sessions. Back when the company was holding in-person annual meetings, they were routinely attended by activists and non-governmental organizations, such as MiningWatch Canada, that have accused Barrick of human rights abuses in Africa.

“This is a hysterical, anti-mining group we’re talking about,” Bristow said Wednesday in an interview. “Our AGMs are first and foremost for our shareholders.”

Dozens of Canada’s largest investors have urged major companies to safeguard shareholder rights by maintaining the in-person component of AGMs amid a rise in remote meetings that began during the Covid-19 pandemic. None of the 60 largest companies on the Toronto stock exchanges held virtual-only annual meetings in 2019, but 57% do now, according to an April open letter from a group of institutional investors, advisers and portfolio managers.

Heated exchange

Barrick, the world’s second-biggest gold mining company, hosted both an in-person and a virtual meeting last year. The in-person meeting included a heated exchange between Bristow and an activist protesting the company’s Reko Diq copper project in Pakistan. On Tuesday, a handful of protesters gathered outside Barrick’s headquarters in downtown Toronto.

“I’m a big believer in open dialogue. I engage with these people,” Bristow said. “But there’s a whole cottage industry built on beating up on international business. No one checks the facts.”

Virtual meetings give executives the chance to vet queries from shareholders, proxy holders and guests. Barrick’s meeting this year required attendants to submit questions via online chat portals, rather than ask executives directly.

Proxy adviser Glass Lewis has raised concerns about the format, warning in a 2021 memo that a shift from traditional to virtual meetings “could lead to the disenfranchisement of shareholders unless companies develop and disclose clear procedures to enable the participation of all shareholders in the virtual meeting and allow for meaningful engagement with the board.”

(By Jacob Lorinc)

Albemarle plans more lithium auctions in bid to demystify prices

THE MYSTICISM OF MONOPOLY CAPITALI$M

Bloomberg News | May 2, 2024 | 

Albemarle is testing direct lithium extraction (DLE) technologies in Chile. (Image courtesy of Albemarle Chile.)

Albemarle is planning to do more lithium auctions — including some outside China — as the world’s largest producer of the battery metal aims to shed more light on pricing in the opaque market.


Albemarle held four auctions for spodumene concentrate and lithium carbonate in China in March and April because of a build-up in inventories, Chief Executive Officer Kent Masters said Thursday in an earnings call. The US producer aims to hold more auctions in China as well as other geographies such as Australia while adding lithium hydroxide to its offerings.

“We’ve had very good participation,” Eric Norris, Albemarle’s president of energy storage, said during the call, adding that the auctions have been helpful for pricing. “It’s giving us better intelligence to better understand what’s happening in the market and allow the same for our customers in the contracts.”

The auctions marked the first time Albemarle has had to do so to sell its lithium products and came as prices for the battery metal tumbled more than 80% from record highs in late 2022. The market has gone from fears of shortages to a glut in inventories, bringing a collapse in prices that has caused havoc among producers, leaving a wake of stalled projects, scrapped deals and cuts to output.

Until a few years ago, the lithium sector negotiated long-term supply contracts at fixed prices. That changed as large price swings created cost headaches for battery firms and automakers. The volatility prompted a shift to annual agreements struck in a similar way to other metals like copper during a “mating season,” with deals inked at premiums or discounts to a measure of spot prices.

About two-thirds of Albemarle’s lithium volumes this year are sold on index-referenced, variable-priced contracts with an average of two to five years duration, according to a company presentation. The contracts typically have a three-month lag, and some with pricing floors and ceilings. A third of the volumes are sold on short-term purchase agreements.

Albemarle said last week that it planned to host three auctions in May.

(By Yvonne Yue Li)

Strong copper price reviving Peru’s mining mojo, minister says

Reuters | May 3, 2024 | 

MINING IS UNSUSTAINABLE

View from above of the pit of an open-pit copper mine in Peru. 

Peru’s dented mining mojo, hit by years of political turmoil in the Andean country, is being buoyed by strong copper prices and a bullish outlook they will rise further, helping lure back investor interest, the country’s mining minister said on Friday.


“The price of copper is a great attraction,” Romulo Mucho, told Reuters in an interview at his office, a reference to prices that hit two-year peaks of $10,208 a metric ton this week, close to the record high of $10,845 in March 2022.

Goldman Sachs earlier in the day hiked its year-end price target to $12,000 per ton, from $10,000 previously, citing the copper market’s path into scarcity and expectations of a larger deficit of the key metal needed for electrification.

Mucho said that the trend was helping salve mining companies’ caution in the country, the world’s no. 2 exporter that has struggled to fend off a challenge from rival producer Congo as incoming mining investment has dwindled.


The minister added he had met with executives from Newmont, Teck Resources, Hudbay Minerals, Antofagasta Minerals and others in recent months, who had shown interest in new ventures and operational mines.

“Most of the CEOs I talked to asked what projects there are and how they can get involved,” Mucho said, blaming political uncertainty under former governments for hurting the sector. Peru has had half a dozen presidents in the last six years.

“Confidence is being recovered.”

Peru expects to produce some 3 million tons of copper this year, up from 2.75 million last year, a goal Mucho stuck by, though he added production from protest-hit Las Bambas, owned by China’s MMG Ltd, was key to hitting the target.

(By Marco Aquino; Editing by Adam Jourdan and Marguerita Choy)

STOP SEA BED MINING

Underwater power play for metals in full swing

Alisha Hiyate | May 3, 2024 | 

System used to uplift nodules from seafloor to surface. 

(Image courtesy of The Metals Company.)

Despite its stranglehold on mining and processing, there’s one arena of critical minerals that China doesn’t control – underwater resources.


No one does, as deep sea mining has yet to begin. But it’s not the sci-fi fantasy it once may have seemed.

The International Seabed Authority (ISA), which next meets in July, is hashing out the world’s first underwater mining code. Deep sea mining could technically begin as soon as July, even in the absence of rules which the ISA aims to have in place by 2025.

That’s because in 2021, ISA member Nauru triggered a two-year countdown for the body to either solidify regulations, or to allow mining with whatever guidance is in place. The island nation is the sponsor state for exploration licences held by the world’s most advanced seafloor miner in waiting, The Metals Company.

The NASDAQ-listed company plans to apply for a licence to “mine” seafloor polymetallic nodules, rich in cobalt, nickel, copper and manganese, this year. It hopes to start collecting the nodules using its robotic seafloor machinery in the Clarion-Clipperton Zone, a region of the Pacific Ocean that lies between Hawaii and Mexico, by late 2025.
Race to the bottom

The Metals Company may have a head start and an ambitious timeline, but China and other nations are intensely eyeing deep-sea minerals, even as environmental concerns mount.

Oil-rich Norway became the first country to OK seabed mining in its waters in January. It approved the move in an 80-20 vote that crossed party lines, putting it at odds with the European Union, which has called for an international moratorium on deep sea mining. (Norway is not an EU member, but it is part of the European Economic Area.)

Norway doesn’t plan to start mining right away, and says much more study is needed before it would consider granting exploitation licences. While its wealth is based on offshore oil and gas, the nation has a progressive reputation as a leader on environmental protection and climate action. Still, the apparent contradiction had some scratching their heads.

Energy transition

Norway’s rationale for the decision was both to counter China’s — and neighbouring Russia’s — dominance in critical minerals and to increase supplies needed for the energy transition.

“Today, we are almost dependent on Russia and China and we have to diversify the global supply chain production of minerals around the world,” Norway’s Energy Minister, Terje Aasland, told CNBC in January. “We have been looking into the seabed minerals opportunity for a long time. We have a really reliable tradition on how we use the resources in the Norwegian continental shelf. We do it sustainably and we do it step by step.”

China’s motivations are exactly the same.

“Deep-sea mining has become a new frontier of international competition on science, technology, resources and industries, because there are a lot of polymetallic nodules on ocean floors that contain rich concentrations of nickel, copper, manganese and cobalt that are essential to the renewable energy industry,” Ye Cong, deputy director of the China Ship Scientific Research Center, told state-owned China Daily last year.

“A large proportion of the metals I mentioned, which are extensively used at Chinese factories, needs to be imported. Mining them from the seabed will help us reduce the heavy reliance on foreign suppliers.”
International mix

While China is behind other players in developing technology for deep sea mining, it’s stepped up research and investment. It also holds five of 31 exploration contracts issued by the ISA, with Russia, South Korea, India, Germany, Japan, France and Belgium also in the mix.

Absent from that list is the United States. It isn’t a member of the international body, leaving its Asian rival — also the ISA’s main funder — as a dominant voice in the organization charged with regulating sea-bed mineral exploration and mining.

In March, however, two Republican members of Congress introduced a bill that would see federal support for US processing of polymetallic seafloor nodules.

The proposed bill notes that China controls roughly 60% of the global critical mineral production and over 85% of the world’s refining capacity, thanks to aggressive investment around the world.

“Recognizing the potential of marine resources to further its position, China is increasing its investment in deep-sea mining, holding the most exploration contracts of any country,” the bill reads. “Investing in alternatives serving to diversify supply such as the collection of seafloor nodules is integral to ensuring the United States does not continue its over-dependence on China and other adversarial nations.”

Familiar reasoning, but from the other side of the divide.

US Automakers win extension on use of Chinese graphite in EV tax credits

Reuters | May 3, 2024 | 

Graphite powder used in industry. Stock image.

The US Treasury Department on Friday gave automakers additional flexibility on battery mineral requirements for electric vehicle tax credits on some crucial trace minerals from China, such as graphite.


The department said it would give automakers until 2027 to remove some hard-to-trace minerals like graphite contained in anode materials and critical minerals contained in electrolyte salts, binders, and additives.

New rules took effect on Jan. 1 restricting Chinese content in batteries eligible for EV tax credits of up to $7,500, which sharply cut the number of eligible vehicles. Automakers have since made changes to supply chains and won restored eligibility for many vehicles.

Treasury has temporarily exempted graphite and other trace critical minerals from new strict rules barring materials from China and other countries deemed a Foreign Entity of Concern (FEOC), including North Korea, Russia and Iran.

John Bozzella, who heads the Alliance for Automotive Innovation, a group representing major automakers, said the new Treasury rules “appear to recognize the realities of the global supply chain by providing some temporary flexibility in terms of where the critical minerals in EV batteries can be sourced.”

Senate Energy Committee Chair Joe Manchin on Friday harshly criticized the decision, saying the administration has made clear it “will break the law in pursuit of their goal to flood the market with electric vehicles as quickly as possible.” He said the Treasury has “provided a long-term pathway for these (FEOC) countries to remain in our supply chains.”

The new rules, required under an August 2022 law, are designed to wean the US EV battery chain away from China.

Abigail Hunter, executive director of SAFE’s Center for Critical Minerals Strategy, said Treasury’s decision to create a two-year exemption for graphite sourcing should be temporary.

“We need a clear exit strategy, lest we continue our dependencies on adversaries and further undermine the competitiveness of US and allied critical minerals projects,” Hunter said.

China currently accounts for 70% of global output of graphite, which is used to make electric battery anodes, the negatively charged portion of the battery.

The FEOC rules came into effect on Jan. 1 for battery components and will do so in 2025 for critical minerals used to produce them.

Treasury said in December that the materials being exempted each accounted for less than 2% of the value of battery-critical minerals.

Manufacturers may temporarily exclude certain impracticable-to-trace battery materials from FEOC compliance until 2027 as long as they demonstrate how they plan to comply by then, Treasury said.

“Imagine an EV that complied with all IRA eligibility requirements but is kicked out of the program because of a trace amount of a critical mineral from a FEOC?” Bozzella said. “That makes no sense.”

The 2022 law allowed qualifying EV buyers to use tax credits as a point of sale rebate from the start of this year.

So far in 2024, more than 100,000 credits have been used at the point of sale, representing more than $700 million in upfront savings, the Treasury said.

(By David Shepardson and David Lawder; Editing by Jamie Freed and Jonathan Oatis)

ECOCIDE

 

Crack in Tanker’s Hull Causes Largest Oil Spill in Ceuta Port History

Tanker K Onset is detained and faces fines after an oil spill in the Spanish port of Ceuta (RTVCE/YouTube)

PUBLISHED MAY 2, 2024 12:53 PM BY THE MARITIME EXECUTIVE

Spanish authorities at the port of Ceuta on the southern side of the Strait of Gibraltar declared contained what they believe was the largest oil spill in the port’s history. The spill came from a crack in the hull of a Turkish-owned product tanker that is now being detained and facing stiff fines.

The port captain for Ceuta, one of only two Spanish ports in Africa and a vital link in Mediterranean traffic, told reporters they received a report of an oil leak from the product tanker K Onset (12,900 dwt) on Tuesday evening, April 30, and they immediately mobilized a containment effort. Within about two hours he said the leak had been contained. They deployed two containment booms and one absorbent boom. 

The Liberia-flagged tanker managed by Chemfleet of Turkey arrived on April 30 from the Spanish port of Vilagarcia and was conducting a fueling operation. The latest estimate is that the vessel leaked between 25,000 and 30,000 liters of a light marine fuel from a crack that measured 32 centimeters (approximately 12.5 inches) in one of the fuel tanks. Westerly winds helped to contain the spill and throughout the day on Wednesday, teams could be seen with absorbents mopping up the fuel. The port captain believes at least 85 percent of the spill was recovered.

 

 

The K Onset is now being detained at the port and it has been ordered to pump all the fuel from the cracked tank. The port captain said the tank would be vented and then examined and that they would require repairs before the vessel departs.

In addition, the port is demanding a deposit of €72,000 ($77,000) consisting of €60,000 in fines and €12,000 toward the clean-up costs. The final fine is yet to be determined but media reports said it will be at least €200,000 to €250,000, ($214,000-$267,000) with one report saying it could reach a half million euros. 

The vessel was cited in December 2023 for 18 deficiencies during a Port State inspection in the UK. Among the items identified were hull corrosion as well as issues with propulsion and other structural condition issues. However, the vessel was not detained.

Port officials in Ceuta acknowledged that this was the third incident this year although noting the prior two events were much smaller. Media reports said in mid-February, a Panama-flagged Ro-Ro cargo vessel, Lider Trabzon (7,225 dwt) had to pay €136,000 ($145,000) after another oil spill. Last week, a general cargo ship registered in Gibraltar, Schillplate (3,175 dwt) also caused a small spill in the port.

Mystery Spill Returns to San Juan Harbor

Courtesy U.S. Coast Guard

PUBLISHED MAY 1, 2024 7:38 PM BY THE MARITIME EXECUTIVE

 

The U.S. Coast Guard is working to clean up a mystery spill at the port of San Juan, Puerto Rico. According to Sector San Juan, a recurring discharge of heavy oil is seeping out of the storm drain system into the water, and experts are trying to trace it back to its source. In the meantime, thanks to funding from the Oil Spill Liability Trust Fund, a contractor is keeping the contamination contained and pulling oil out of the water. So far, about 1,770 gallons of waste have been recovered, including 17 drums of absorbent materials. 

"The discharged oil is being contained and recovered," said Lt. Cmdr. Ray Lopez, Sector San Juan Incident Management Division Chief. "We suspect this spill may be tied to an unidentified inactive historical source that for years has resulted in a series of mystery spills along the Old San Juan waterfront."

It is not the first time that an oil seep like this has leaked into San Juan's harbor. Three years ago, another release of a substance that looked like Bunker C occurred at Pier 4 (the San Juan cruise terminal). Recurring contamination was found in a storm drain system, as well as in the harbor, and response crews used vacuum trucks and absorbent boom for three weeks to clean it up. The responders suspected that the source might be somewhere in a network of buried oil pipelines that dated back to the early 1900s.  

Manhole contaminated with heavy oil from the 2021 spill (USCG)

The response crews are now planning an underground survey to find and assess the condition of long-abandoned oil pipelines that were buried in the area in the early or mid-1900s. The lines are no longer in service, but they may well have some residual oil inside.

Samples of the 2021 and 2024 leaks have some similarities, according to the Coast Guard, and might come from one common source of petroleum leaking into the storm drain system. Like last time, the response team plans to do a subsurface site assessment to determine the extent of any soil contamination and determine the source of the spill.