Dubious LNG exports study was conducted in secret by contractor with ties to coal and oil industries
A study on the economic effects of exporting gas fracked in the US has opened the door for what Senator Ron Wyden (D-OR) and Congressman Edward Markey (D-MA) have called “a transfer of wealth from consumers to oil and gas companies.”
This particular study, which focuses on the economic impacts of exporting liquefied natural gas (LNG), was commissioned by the US Department of Energy, and will heavily influence the DOE’s decisions on the permitting of 15 proposed LNG export facilities.
Because of the way that exports of natural gas are regulated, the oil industry must convince the US Department of Energy that exporting America’s fracked gas is in the best interest of the country, in order for the DOE to approve any LNG export projects.
Alarmingly, the DOE kept the identity of NERA a secret from the public, and refused to answer Freedom of Information Act (FOIA) requests filed by Greenpeace, as well as requests from senators’ offices. The DOE’s excuse? According the DOE FOIA officer I spoke with, they didn’t want outside groups to “influence” the study.
It was Reuters that eventually revealed the identity of NERA, weeks before the DOE publicly released the the details of the contract. Reuter’s credited “industry sources” for the information.
So to recap, the DOE refused to tell the public the identity of group conducting an extremely important study on natural gas exports, citing a desire to protect the contractor from “influence,” a tacit admission that these studies are somehow corruptible. Then we find out that the notoriously unscrupulous gas industry knew the identity of the contractor before the DOE announced it publicly - the same gas industry willing to use psychological warfare techniques on rural Pennsylvanians - and it was the industry that leaked the contractor’s identity to the press.
Now the study has come out, and surprise, surprise, it says everything the gas industry wanted to hear. The NERA study supports the unlimited export of natural gas, which opens the door for the gas industry to sell fracked gas in foreign markets. Not only will that lead to higher gas prices here in the US, making fracking more profitable and therefore assuring the drilling of many more wells, but it also means more natural gas infrastructure, more methane leaks, and another blow to our already fragile climate. All the while increasing the profits of oil and gas corporations, like ExxonMobil.
According to NERA’s study:
"Across all these scenarios, the U.S. was projected to gain net economic benefits from allowing LNG exports. Moreover, for every one of the market scenarios examined, net economic benefits increased as the level of LNG exports increased. In particular, scenarios with unlimited exports always had higher net economic benefits than corresponding cases with limited exports."
Considering the DOE considers NERA to be vulnerable to outside influence, and we know the gas industry knew of NERA’s study before the public did, the NERA study and its results must be questioned.
When the oil and gas industry gets to write the rules supposed to govern them, public health and the public good are left by the wayside. Unfortunately that is exactly what is happening with the regulation of hydraulic fracturing in New York and other states.
In New York, Governor Andrew Cuomo’s administration has been accused of conspiring with the fracking industry to develop regulations that limit the states ability to oversee fracking.
Documents recently uncovered by Environmental Working Group show that industry representatives were given drafts of the state’s proposed regulations before they were released to the public. Industry representatives then used the privileged information to lobby against commonsense rules, like testing for radioactivity in waste-water.
Currently, the major federal environmental laws regulating hazardous waste, air pollution and water pollution all have significant loopholes and exemptions for fracking. This is because the fracking industry has fought hard to keep regulation at the state level, where it is easier to influence and harder to enforce. As a recent report by the OMB Watch illustrates, state laws, many of which may have been written by the fracking industry, have failed to protect public health.
For more on the environmental, public health, and community impacts of fracking, see Greenpeace’s recently updated fracking page.
We don’t want the oil and gas industry writing the laws that are supposed to regulate them.
The fracking industry does not have the health of the public in mind. As Josh Fox’s latest video discusses, the oil and gas industry continues to publicly deny that fracking leads to poisoned water wells, though internal industry documents show that they have acknowledged and attempted to address the problem (unsuccessfully). The industry has even deployed military personnel and tactics against Pennsylvanians, which one company executive referred to as “insurgents.” Frackers want cheap access to the hydrocarbons in the shale, which means externalizing environmental, public health, and community impacts.
The frackers don’t care about American jobs, the economy, or “energy independence.” One of the most popular talking points used by the oil and gas industry is summed up by the bumper sticker “drill here, drill now, pay less.” The idea being if we allow oil and gas corporations to exploit our land and water to extract fossil fuels, it will benefit the average citizen by lowering energy prices, reducing independence of “foreign” energy supplies, etc. This is completely false, as Rex Tillerson, CEO of Exxon Mobil will tell you. Companies involved in fracking want to increase the price of natural gas by exporting it out of the country. They want to sell it on an open market, to the highest bidder, no matter who that is.
The fracking industry’s short-sightedness hurts everyone involved, including themselves. When the fracking boom took off a few years ago, the oil and gas industry treated it like a gold rush. Companies like Chesapeake Energy put every dime they had into acquiring land and drilling wells, while taking out massive loans to finance the expansion. The frackers produced so much gas that gas prices dropped through the floor, to historically low prices. Right now, these companies are losing money and can’t even afford complete the wells they have already drilled. In Pennsylvania there are 5,000 wells awaiting completion, sitting idle, as their well casings deteriorate. Like the bankers responsible for the financial collapse, the fracking industry’s ravenous approach to drilling created a bubble, which the public will pay for with toxic water and a landscape ravaged by heavy industry.
Remember that controversial law last year, legalizing fracking in North Carolina after being vetoed by the state's governor? The law bears tell-tale signs of being written by the American Legislative Exchange Council (ALEC), a corporate front group with ties to the fracking industry.
Like the Exxon-backed fracking loopholes in Ohio and numerous other states, the new North Carolina law contains the same "trade secrets" provisions that ensure the public will not have the right to know which chemicals gas frackers are pumping underground to retrieve shale oil and gas. The "trade secrets" provisions are key to ALEC's model bill in order to allow Exxon, Shell, Duke Energy and other ALEC member companies to more quickly extract, pipe and burn gas without having to bother with pesky transparency laws.
Here's a list of NC ALEC legislators who co-sponsored the bill legalizing fracking: S820 or HB1052 -- the so-called "Clean Energy and Economic Security Act"
- Sen. Tom Apodaca
- Sen. David Rouzer -- member of ALEC's Energy, Environment and Agriculture task force, which created the frack fluid disclosure loophole bill with internal sponsorship by ExxonMobil.
- Rep. Mike Hager
- Rep. Tim Moffitt
- Rep. Fred Steen -- ALEC's State Chairman in NC
Rep. Fred Steen co-sponsored the House version of the so-called "Clean Energy and Economic Security Act." Steen was ALEC's State Chair in North Carolina, and his job is to ensure ALEC models are introduced and, ideally for ALEC, passed. Rep. Steen was the only state legislator serving as State Chair in North Carolina (other states often have multiple legislators serving as co-chairs), and according to ALEC's tax forms, his position implies the following responsibilities (emphasis mine):
State Chairmen duties shall include recruiting new members, working to ensure introduction of model legislation, suggesting task force membership, establishing state steering committees, planning issue events, and working with the Private Enterprise State Chairman to raise and oversee expenditures of legislative 'scholarship' funds.
As ALEC's state chairman in NC at the time of this vote, Rep. Steen appointed a "Private Sector Co-Chairman" to help oversee ALEC activity in NC. In this case, Rep. Steen worked with North Dakota lobbyist Joel Gilbertson, who represents clients like AIG, PhRMA, and Crop Life America (a front group for pesticide and chemical fertilizer interests). Rep. Steen was listed on ALEC's website as its State Chairman since at least late 2008, suggesting that he has been re-appointed to that position at least once--a term lasts two years.
Ironically, co-sponsoring Rep. Mike Hager has been asked about his role in ALEC before, telling the Charlotte Business Journal that, "I'm not a big fan of model legislation." Apparently, keeping toxic chemicals secret from constituents is something Rep. Hager is a big fan of, in which case ALEC models are pretty useful. Rep. Hager has received $15,500 from oil, gas and electric utility interests in this election cycle, on top of $3,250 from his first successful election bid in 2010. One of the utilities donating to Rep. Hager is Duke Energy, his former employer, which operates natural gas pipelines that deliver to over 500,000 customers and is expanding gas generation at its power plants.
North Carolina's fracking loophole law has drawn attention from around the country, including a statement of support from Republican presidential candidate Mitt Romney. The new NC law barely overturned a veto by former Gov. Beverly Perdue, in a heartbreaking twist involving one Democratic legislator being bought out at the last minute and another accidentally voting in favor of the bill and refused the opportunity to correct her vote, something that is commonly acceptable when such a mistake is made. The Charlotte Observer explains:
Rep. Becky Carney, a Democrat from Mecklenburg County who opposes fracking, pushed the wrong button and accidentally voted with Republicans to override the veto. A maneuver by Wake County Republican Paul “Skip” Stam prevented her from changing her vote, giving the GOP a historic one-vote margin of victory. "It was a huge mistake,” Carney said afterward. “I take full responsibility.” Democrats denounced Stam’s quick parliamentary maneuver as a dirty trick that resulted in the passage of a landmark energy overhaul that could create a natural gas production industry in the state. [...] Carney said it was the first time in her 10-year legislative career that she pushed the wrong button on a vote. Mistaken votes are not uncommon and letting lawmakers change their votes is routine practice in the state legislature.
This local news clip posted by the Voter's Legislative Transparency Project, which tracks ALEC activity in North Carolina, includes more on Rep. Carney's error:
Originally posted by Steve Horn at DeSmogBlog.
The Associated Press has a breaking investigative story out today revealing that the Obama Administration's Environmental Protection Agency (EPA) censored a smoking gun scientific report in March 2012 that it had contracted out to a scientist who conducted field data on 32 water samples in Weatherford, TX.
That report, according to the AP, would have explicitly linked methane migration to hydraulic fracturing ("fracking") in Weatherford, a city with 25,000+ citizens located in the heart of the Barnett Shale geologic formation 30 minutes from Dallas.
It was authored by Geoffrey Thyne, a geologist formerly on the faculty of the Colorado School of Mines and University of Wyoming before departing from the latter for a job in the private sector working for Interralogic Inc. in Ft Collins, CO.
This isn't the first time Thyne's scientific research has been shoved aside, either. Thyne wrote two landmark studies on groundwater contamination in Garfield County, CO, the first showing that it existed, the second confirming that the contamination was directly linked to fracking in the area.
It's the second study that got him in trouble.
"Thyne says he was told to cease his research by higher-ups. He didn’t," The Checks and Balances Project explained. "And when it came to renew his contract, Thyne was cut loose."
From Smoking Gun to Censorship: Range Resources Link
The Obama EPA's Weatherford, TX study was long-in-the-making, with its orgins actually dating back to a case of water contamination in 2010. The victim: Steve Lipsky.
"At first, the Environmental Protection Agency believed the situation was so serious that it issued a rare emergency order in late 2010 that said at least two homeowners were in immediate danger from a well saturated with flammable methane," the AP wrote.
AP proceeded to explain that Lipsky had "reported his family's drinking water had begun 'bubbling' like champagne" and that his "well...contains so much methane that the...water [is] pouring out of a garden hose [that] can be ignited."
The driller in this case was a corporation notorious for intimidating local communities and governmental officials at all levels of governance: Range Resources. Range, in this case, set up shop for shale gas production in a "wooded area about a mile from Lipsky's home," according to the AP.
As DeSmogBlog revealed in November 2011, Range Resources utilizes psychological warfare techniques as part of its overarching public relations strategy.
Due to the grave health concerns associated with the presence of methane and benzene in drinking water, the Obama EPA "ordered Range...to take steps to clean their water wells and provide affected homeowners with safe water," wrote the AP.
Range's response? It "threatened not to cooperate" with the Obama EPA's study on fracking's link to water contamination. The non-cooperation lead to the Obama EPA suing Range Resources.
It was during this phase of the struggle where things got interesting. As the AP explained,
Believing the case was headed for a lengthy legal battle, the Obama EPA asked an independent scientist named Geoffrey Thyne to analyze water samples taken from 32 water wells. In the report obtained by the AP, Thyne concluded from chemical testing that the gas in the drinking water could have originated from Range Resources' nearby drilling operation.
Despite this smoking gun, everything was soon shut down, with the Obama EPA reversing its emergency order, terminating the court battle and censoring Thyne's report. The AP explained that the Obama EPA has "refused to answer questions about the decision."
"I just can't believe that an agency that knows the truth about something like that, or has evidence like this, wouldn't use it," Lipsky, who now pays $1,000 a month to have water hauled to his family's house, told the AP.
"Duke Study" Co-Author Confirms Veracity of Thyne's Study
Robert Jackson, a Professor of Global Environmental Change at Duke University and co-author of the "Duke Study" linking fracking to groundwater contamination did an independent peer review of Thyne's censored findings. He found that it is probable that the methane in Lipsky's well water likely ended up there thanks to the fracking process.
Range predictably dismissed Thyne and Jackson as "anti-industry."
Americans Against Fracking: An "Unconscionable" Decision
Americans Against Fracking summed up the situation best in a scathing press release:
It is unconscionable that the Environmental Protection Agency (EPA), which is tasked with safeguarding our nation’s vital natural resources, would fold under pressure to the oil and gas industry...It is again abundantly clear that the deep pocketed oil and gas industry will stop at nothing to protect its own interests, even when mounting scientific evidence shows that drilling and fracking pose a direct threat to vital drinking water supplies.
There's also a tragic human side to this tale.
"This has been total hell," Lipsky told the AP. "It's been taking a huge toll on my family and on our life."
Written by Steve Horn, crossposted from DeSmogBlog.
Last year, a hydraulic fracturing ("fracking") chemical fluid disclosure "model bill" was passed by both the Council of State Governments (CSG) and the American Legislative Exchange Council (ALEC). It proceeded to pass in multiple states across the country soon thereafter, but as Bloomberg recently reported, the bill has been an abject failure with regards to "disclosure."
That was by design, thanks to the bill's chief author, ExxonMobil.
Originating as a Texas bill with disclosure standards drawn up under the auspices of the Obama Administration's Department of Energy Fracking Subcommittee rife with oil and gas industry insiders, the model is now codified as law in Colorado, Pennsylvania, and Illinois.
Bloomberg reported that the public is being kept "clueless" as to what chemicals are injected into the ground during the fracking process by the oil and gas industry.
"Truck-Sized" Loopholes: Fracking Chemical Fluid Non-Disclosure by Design
"Drilling companies in Texas, the biggest oil-and-natural gas producing state, claimed similar exemptions about 19,000 times this year through August," explained Bloomberg. "Trade-secret exemptions block information on more than five ingredients for every well in Texas, undermining the statute’s purpose of informing people about chemicals that are hauled through their communities and injected thousands of feet beneath their homes and farms."
For close observers of this issue, it's no surprise that the model bills contain "truck-sized" loopholes.
"A close reading of the bill...reveals loopholes that would allow energy companies to withhold the names of certain fluid contents, for reasons including that they have been deemed trade secrets," The New York Times explained back in April.
Disclosure Goes Through FracFocus, PR Front For Oil and Gas Industry
The model bill that's passed in four states so far mandates that fracking chemical fluid disclosure be conducted by FracFocus, which recently celebrated its one-year anniversary, claiming it has produced chemical data on over 15,000 fracked wells in a promotional video.
The reality is far more messy, as reported in an August investigation by Bloomberg.
"Energy companies failed to list more than two out of every five fracked wells in eight U.S. states from April 11, 2011, when FracFocus began operating, through the end of last year," wrote Bloomberg. "The gaps reveal shortcomings in the voluntary approach to transparency on the site, which has received funding from oil and gas trade groups and $1.5 million from the U.S. Department of Energy."
This moved U.S. Representative Diana DeGette (D-CO) to say that FracFocus and the model bills it would soon be a part of make a mockery of the term "disclosure."
"FracFocus is just a fig leaf for the industry to be able to say they’re doing something in terms of disclosure," she said.
"Fig leaf" is one way of putting it.
Another way of putting it is "public relations ploy." As Dory Hippauf of ShaleShock Media recently revealed in an article titled "FracUNfocusED," FracFocus is actually a PR front for the oil and gas industry.
Hippauf revealed that FracFocus' domain is registered by Brothers & Company, a public relations firm whose clients include America’s Natural Gas Alliance, Chesapeake Energy, and American Clean Skies Foundation - a front group for Chesapeake Energy.
Given the situation, it's not surprising then that "companies claimed trade secrets or otherwise failed to identify the chemicals they used about 22 percent of the time," according to Bloomberg's analysis of FracFocus data for 18 states.
Put another way, the ExxonMobil's bill has done exactly what it set out to do: business as usual for the oil and gas industry.
Written by Steve Horn, crossposted from DeSmogBlog
There's an old German proverb that goes, "Whose bread I eat his song I sing."
Enter a recent spate of reportage by the Public Broadcasting System's (PBS) "Newshour." In a September 17 story titled, "Climate Change Skeptic Says Global Warming Crowd Oversells Its Message" (with a URL titled, "Why the Global Warming Crowd Oversells its Message") the Newshour "provided an unchecked platform for Anthony Watts, a virulent climate change denier funded by the Heartland Institute," as described by Forecast the Facts.
Forecast the Facts created a petition demanding that the "PBS ombudsman...immediately investigate how this segment came to be aired," stating that, "This is the kind of reporting we expect from Fox News, not PBS."
Very true, this is exactly the type of reporting we've come to expect out of Rupert Murdoch's Fox News, a cable "news" network that provides a voice for right-wing propagandists on all policy issues, including climate change denial. But perhaps expectations are too high for PBS' "Newshour" and we should've expected exactly what we got: a friendly platform for the climate change denying merchants of doubt.
What's at play here goes above and beyond a single bad story by "Newshour." Rather, it's a small piece and the result of an aggressive campaign that's been going on for nearly two decades to destroy public television in the public interest.
Based on the shift in how the "Newshour" has funded itself over the years, it's evident that the once-esteemed "MacNeil/Lehrer NewsHour" streamed on the Public Broadcasting System has transformed PBS into what investigative reporter Greg Palast calls the "Petroleum Broadcasting System."
"Petroleum Broadcasting System" Sponsored by Chevron, Koch Industries, ExxonMobil, Et Al
In an October 2010 story, Palast pointed out that the "Newshour" is funded by Chevron in critiquing its softball coverage of the BP oil disaster. This led him to refer to PBS as the "Petroleum Broadcasting System."
Above and beyond funding from Chevron, "Newshour" also lists Burlington Northern Santa Fe (BNSF), owned by Warren Buffett under the auspices of Berkshire Hathaway, as a sponsor. As previously reported here on DeSmog, BNSF - the second largest freight rail company in the U.S. behind Union Pacific - is a major transporter of tar sands infrastucture to the Alberta tar sands. It's also a major mover of coal being sent to coastal terminals and exported to Asia.
BNSF also inked a deal in June 2012 with U.S. Silica Holdings Inc. to "build and run a major warehousing operation...to store sand destined for the Eagle Ford Shale." The Texas-based Eagle Ford Shale basin, like all shale basins, requires vast amounts of fracking sand (aka sillica sand) in order to tap into the gas located deep within the shale reservoir. This sand predominantly comes from western Wisconsin's "sand land," as we explained in a recent short documentary.
The San Antonio Business Journal explained the situation in-depth:
The proposed facility, scheduled to open in early 2013, will be constructed on 290 acres of land the railroad purchased late last year. It will be able to store up to 15,000 tons of sand used by drillers during the hydraulic fracturing process to release oil and gas from dense shale rock.
The Fort Worth-based railway will haul up to 40,000 tons of silica sand and other products per month to San Antonio from U.S. Silica operations in Ottawa, Ill., and Rochelle, Ill.
To top it off, Buffett himself has major personal investments in Big Oil, as we've written about on DeSmog. As of August 2011, he owned 29.1 million shares of stock in ConocoPhillips, 421,800 shares of stock in ExxonMobil, and 7.777 million shares of stock in General Electric, all three of which are involved in various aspects of the tar sands extraction industry and the shale gas extraction industry.
In sum, BNSF is cashing in big time from the shale gas boom, the tar sands boom, and the coal export boom.
Koch Industries - a major Heartland Institute funder and key behind its founding - has also funded PBS' "Nova" to the tune of $7 million. ExxonMobil has also provided funds to PBS' "Nova," "Nightly Business Report" and "Masterpiece Theatre." Both ExxonMobil and Koch Industries are among the top funders of the climate change denial machine.
The Plan: Cut Public Funding, Make PBS Rely on Fossil Fuel Industry Money
Looking at the situation more broadly, it's important to understand that PBS didn't always rely on fossil fuel industry largesse to keep itself afloat.
Rather, over the past two decades, PBS has been under attack by the Republican Party, with constant threats and a coordinated campaign to defund a network originally set up to be a public educational service via the Public Broadcasting Act of 1967.
As explained in a February 2011 ABC News story,
One of Newt Gingrich's first acts as speaker of the House in 1995 was to call for the elimination of federal funding for CPB, and for the privatization of public broadcasting. Neither attempt was successful, though it did keep the hot-button issue in the limelight for years.
During the early 2011 budget debates, ABC explained that "The House Republicans' budget would rescind any funding for the Corporation for Public Broadcasting -- which partially supports these two organizations -- for the remainder of the year, and zero out millions in funds after that."
President Barack Obama joined in on the attack on public television with his "bipartisan deficit commission" -- referred to as the "Catfood Commission" by FireDogLake -- calling for "eliminating funding for the CPB, estimating that it would save the government $500 million in 2015," ABC explained. His Republican Party opponent for the 2012 presidential race, Mitt Romney, has also called for the defunding of PBS.
Private funding of what was originally supposed to be a publicly-funded television station comes with its own agenda. This agenda departs from the mission set out by the 1967 Act, which deemed it "in the public interest to encourage the growth and development of public...television broadcasting, including the use of such media for instructional, educational, and cultural purposes" and said it "should be created...to afford maximum protection from extraneous interference and control."
The New York Times said it best in a May 2008 story: benevolent corporate underwriting of public television is "increasingly out of step with the...needs of corporations" as they don't "sponsor public television programs for purely philanthropic reasons."
Plenty of Money for PSYOPs Campaigns Abroad
Even PBS President Paula Kerger has internalized the message that the U.S. government is "broke," stating after the latest attempt to defund NPR by House Republicans, "While we understand the many difficult decisions appropriators must make and that the nation is facing challenging economic times, if enacted, such drastic cuts in federal funding could have a devastating effect on public television stations."
Far from being strapped for cash, though, the U.S. government has plenty of money to spend on overseas psychological operations (PSYOPs) campaigns around the world of the sort covered by DeSmog during the shale gas industry's PSYOPs revelation of November 2011.
Media scholar Bob McChesney explained this phenomenon in a March 2011 Democracy Now! appearance, during the middle of the previous round of PBS funding cuts debate in the U.S. House of Representatives:
You know, currently the United States spends roughly twice as much money bankrolling international broadcasting — Voice of America and the various Radio Martís and things like that — than it does paying for domestic public broadcasting and community broadcasting, roughly twice as much — $750 million, roughly, last year. And the idea of raising that and putting more propaganda out to sort of enhance the view of the United States vis-à-vis other nations of the world is entirely the wrong way to go.
That $750 million is more than the $500 President Obama said the U.S. could save by slashing publicly-funded media. In leiu of public funding, American citizens are being shafted with fossil fuel-funded disinformation here at home, while subsidizing it with their tax dollars abroad.
Unless we see big changes in funding for public television, it'll continue to be a standard operating procedure for outlets like PBS to transform into iterations of the newfangled "Petroleum Broadcasting System" - and to end where we began - play the game of "Whose bread I eat his song I sing."
Image Credit: Forecast the Facts
At a recent meeting of the Council on Foreign Relations, ExxonMobil CEO Rex Tillerson laid down some knowledge on the general public, which he referred to as "lazy" and "illiterate." Mr. Tillerson is supremely confident that technology will solve the problems of resource extraction and climate change, if those "problems" even exist. Here are some of the highlights:
Think the tar sands are destructive and dirty?
“There are always technological solutions to these challenges and the risk associated with resource development.”
Worried about hydraulic fracturing ruining groundwater and damaging the environment?
“If you look at the technologies that are front and center today around the shale resources -- hydraulic fracturing, horizontal drilling, the integration of those technologies, how we drill these wells, how we protect fresh water zone, how we protect emissions -- we have all of that engineered.”
"And the consequences of a misstep by any member of our industry -- and I'm speaking again about the shale revolution -- the consequences of a misstep in a well, while large to the immediate people that live around that well, in the great scheme of things are pretty small, and even to the immediate people around the well, they could be mitigated."
Well. Rex thinks the permanent poisoning of your water well is "in the great scheme of things are pretty small." Good to know.
Worried about Global climate change, rising seas, crippling drought?
“And as human beings as a -- as a -- as a species, that's why we're all still here. We have spent our entire existence adapting, OK? So we will adapt to this. Changes to weather patterns that move crop production areas around -- we'll adapt to that. It's an engineering problem, and it has engineering solutions. And so I don't -- the fear factor that people want to throw out there to say we just have to stop this, I do not accept."
Have high hopes for electric cars and renewable energy as a solution to the coming climate change related problems?
“No, I think we're not [going to use electric cars], which is why I'm not optimistic because it is a -- it's a very, very difficult science-physics problem to overcome.”
So when it comes to pumping more oil and gas from the ground, the answer is “yes, we can,” but when we talk about reducing carbon and the technologies required to do it, Tillerson sings a different tune.
Wake up and smell the frack fluid! But don't ask what's in it, at least not in Ohio, cause it's still not your right to know.
Ohio is in the final stages of making an Exxon trojan horse on hydrofracking into state law, and it appears that the American Legislative Exchange Council (ALEC) connected Exxon's lawyers with co-sponsors of Ohio Senate Bill 315: at least 33 of the 45 Ohio legislators who co-sponsored SB 315 are ALEC members, and language from portions of the state Senate bill is similar to ALEC's "Disclosure of Hydraulic Fracturing Fluid Composition Act."
...disclosure of fracking fluids? On behalf of ExxonMobil?!
Frack fluids include unknown chemicals that gas drillers mix with sand and large amounts of water. The mixture is pumped underground at high pressure in order to retrieve gas and oil by fracturing shale formations. These are the chemicals that have caused widespread concern among residents near gas fracking operations, concerns echoed by doctors who don't know how to treat patients harmed by exposure to chemicals that oil companies keep secret. Oil companies like XTO Energy, a subsidiary of ExxonMobil, the first company lined up to drill in Ohio's Utica shale.
Concern over unconventional energy like gas fracking may be the reason by Ohio SB 315 also addresses clean energy standards and drilling regulations. While the new law will allow doctors to obtain disclosure of fracking chemicals, it places a gag order on them...meaning some chemicals aren't disclosed to the public at all (Cleveland Plain Dealer). Instead, chemicals that subsidiaries of Big Oil use during fracking can remain exempt from public disclosure as "trade secrets," mirroring language of ALEC's model law.
What's most suspicious is that seven of the ten Ohio Senators co-sponsoring SB 315 are ALEC members, as are 26 of the 35 co-sponsoring Representatives.*
Among the co-sponsors are Ohio Senate President Tom Niehaus and state Senator Troy Balderson. Senators Niehaus and Balderson are members of ALEC's Energy, Environment and Agriculture task force, which approved the fracking "disclosure" bill internally sponsored by ExxonMobil, modeled after a Texas bill (see New York Times and ProPublica).**
Four of the co-sponsors of SB 315 attended ALEC's meeting in Scottsdale, AZ, although it is unclear which (if any) of them may have been inside the EEA task force meeting the day that the fracking chemical loophole bill was discussed and approved:***
- Rep. Cheryl Grossman
- Rep. Casey Kozlowski
- Rep. Louis Terhar
- Rep. Andrew Thompson
Some co-sponsors became ALEC members in the lead up to ALEC's late 2011 meeting in Scottsdale, AZ, where the fracking disclosure loophole model bill was finalized by ALEC's Energy, Environmental and Agriculture task force. Emails between representatives of ALEC, the Ohio state government and Time Warner Cable's Ed Kozelek show that last-minute recruitment of new ALEC members before the Scottsdale meeting brought in three state legislators who ended out co-sponsoring SB 315 (PDF pp. 71-76): Rep. Lou Terhar, Rep. Brian Hill and Sen. Bob Peterson (who was appointed to the Ohio Senate in 2012).
Head spinning yet? Let's summarize:
- Exxon pushed the fracking loophole bill through ALEC's [anti]environment task force,
- A couple of key Ohio legislators directly involved in that task force brought the bill back home...
- ...and then a pile of Ohio legislators used ALEC's model to mold Exxon's Ohio fracking disclosure loopholes into state law!
Beyond their involvement in these ALEC task force meetings, Exxon and API were involved in the creation of a similar fracking bill through the Council of State Governments before the ALEC model even existed. As if being a Private Empire isn't enough...
ALEC, CSG, OMG!
ALEC isn't the only group that peddles corporate-written state laws, as DeSmogBlog's Steve Horn pointed out in a blog on state fracking bills and the "Council of State Governments." With direct financial support from Exxon, API, TransCanada and others, the Council of State Governments (CSG) drafted a similar fracking chemical "disclosure" bill two months before ALEC's was internally approved, although they both appear to be modeled off of a Texas law.
While one of the co-sponsoring Senators of Ohio SB 315, Troy Balderson, is a member of CSG Midwest's Energy Committee, Ohio politicians aren't part of the Suggested State Legislature (SSL) committee that vetted the Council's version of the fracking bill. Because of that disconnect and the overwhelming influence of ALEC politicians sponsoring SB 315, ALEC appears to be the keeper of Exxon's fracking secrets in Ohio.
Regardless of the varying influence of groups like ALEC and CSG forging Big Business state laws, ExxonMobil is getting what it wants. According to Don't Frack Ohio!--a project of 350:
- Fracking companies can hide which chemicals they use in the fracking process by calling them ‘trade secrets’. That means they are exempt from telling you what they put in your water. What little they do disclose is 60 days after drilling takes place, too late for communities to test to show what was in their water before drilling, rendering the disclosure meaningless.
- The gas industry pays nothing for the mess they create. Gov. Kasich’s minor tax on individual wells is offset by new tax breaks on property taxes and other giveaways, which means the gas industry will pay less in Ohio taxes than they do in any other state in the country.
- No citizen notification or input will be allowed on any part of the fracking industry. There is no public notice, no public comment, and no right to appeal for drill sites, pipelines, or compressor stations.
Ohio Governor John Kasich has numerous ties to ALEC and was "involved with ALEC in its formative years," but he called for SB 315 to include full disclosure of chemicals used in hydraulic fracturing. Senators replaced true disclosure requirements with Exxon's loopholes and ALEC Representatives decided to leave them.
ALEC secrecy in Ohio
ALEC legislators have found ways to make their moves harder to track in light of repeated exposure of ALEC's pollution of democracy in the United States over the last year, and sometimes existing state laws don't help. Ohio's financial disclosure forms for legislators specifically mention that expenses or reimbursements from ALEC conferences do not need to be publicly disclosed. In Ohio and other states, ALEC dodges lobby laws through corporate-funded "scholarship" programs that are thoroughly documented by the Center for Media and Democracy through open records requests.
People for the American Way and Progress Ohio report that ALEC's scholarship fund in Ohio is financed donations from the American Petroleum Institute, Duke Energy, Reynolds Tobacco, and other major corporations interested in buying the loyalty of Ohio lawmakers.
I'm sure you'd understand if you were in the same position. Sometimes steak and cigars are more important than energy that doesn't poison us.
*Cross-referenced between a list of ALEC legislators listed in an Aug. 9, 2011 email from the legislative aid of ALEC's Ohio State Chairman, Rep. John Adams, obtained through a public records request (see PDF pp. 82-84 and PFAW p.12).
**ALEC documents published by Common Cause show that Sen. Balderson was a member of ALEC's EEA task force throughout 2011, although Sen. Balderson did not attend the ALEC task force meeting last December in Pheonix, AZ, according to a staffer at his office over the phone, nor is he listed in emails obtained through a public records request as attending the previous meetings in New Orleans (Aug. 2011) or Cincinnati (Apr. 2011). Ohio Senate President Tom Niehaus was a consistent member of ALEC's [anti]environment task force from August 2010-August 2011, the time period for which ALEC's EEA task force rosters are available. SB 315 co-sponsoring Representatives Carey, Damschroder and Derickson were all listed as members of ALEC's EEA task force as of August, 2011.
***Co-sponsors cross referenced with an email from ALEC Ohio State Chairman John Adams' legislative aid to Emily Petrovich of US Steel, dated 11/22/2011--eight days before the Scottsdale meeting (see PDF p. 138).
Tomorrow, the American Legislative Exchange Council--known as ALEC--will host their 2012 Spring Task Force summit in Charlotte, NC. At tomorrow's meeting, the corporate front group will round up its various committees and prepare to peddle new state-level legislation to attack clean energy laws, protect polluting industries, privatize education, and suppress voters, among other big business schemes.
Need a refresher on ALEC? It's the group that brings state legislators to the table with representatives from major corporations in the sectors of energy, healthcare, tobacco, private prisons, and other groups to manipulate state politics to maximize their profits and limit their liabilities. These companies help craft template bills for state legislators to bring home and introduce in their respective statehouses.
Documents obtained and published by Common Cause now give us a roster of specific attendees at ALEC's environmental meetings, a consortium of state legislators and a who's who of the most offensive polluting political heavyweights including: Koch Industries, ExxonMobil, Duke Energy and Peabody. Participating legislators know well they're walking into a dirty party, sometimes using state taxpayer money to foot the bill.
The corporations that fund ALEC are well known for their political spending on both sides of the aisle. ALEC funders include Koch Industries, known for its coordinated political spending against President Obama, and Duke Energy, which is laying down a ten million dollar line of credit to host the Democratic National Convention in their hometown of Charlotte, NC. But these polluting companies are co-conspirators under the banner of ALEC, where partisan politics are set aside to focus on the mission of destroying environmental protections, clean energy competition and liability for crimes against both people and the ecosystems sustaining us.
So what exactly are ALEC and these oil, coal, chemical and public relations companies focusing on tomorrow?
According to their newest meeting memorandum, ALEC's Energy, Environment and Agriculture task force is going to discuss some pending model laws that ALEC will likely be approved for state distribution:
- The "Electricity Freedom Act" (really? Electricity Freedom?!) is a new attack on states with plans requiring companies to get a certain percentage of their electricity from renewable sources. This new bill is similar to other legislation ALEC has already peddled in several states and compliments an "email and telephone campaign" against state renewable energy standards, according to the Guardian.
- The "Coal Intrastate and Use Act" serves to prevent EPA from overruling state permits for coal mining and producing dirty coal products (like liquid coal for fuel) if all the coal operations are conducted within the borders of a single state.
- The "Resolution on U.S. Conference of Mayors Climate Protection Agreement Accountability" mandates a report be filed on cities and states that have fallen short of their goals to reduce greenhouse gases through the Mayors Climate Protection Agreement, which has over 1,000 signatories. ALEC's new resolution then demands that any program that hasn't met its goal be canceled out right, voiding the Climate Protection Agreement altogether. Keeping in mind that ALEC's members like Koch and Exxon have fought greenhouse gas programs at every turn for years, it is obvious that this ALEC bill is meant for one thing, attacking programs that address carbon emissions.
- A resolution demanding the passage of the notorious federal REINS Act, which would give Congress the power to block the enforcement of just about any federal protection--clean air and water laws, safeguards for mine workers, prohibiting tobacco sales to kids, protection from discrimination, you name it. It's the ultimate gift from Congress to their corporate fundraisers who would like to avoid responsibility for...everything.
- The exhaustively-titled "Resolution Supporting a Reasonable Compliance Timeline and Economy-wide impact study of EPA’s Mercury and Air Toxics Rule" has a simple purpose: delay when coal-burning utilities have to reduce mercury pollution and other severely hazardous emissions. For major mercury polluters like Energy Future Holdings, American Electric Power, and Duke Energy, this is likely to be a popular item tomorrow.
Documents obtained and published by Common Cause also show us what ALEC's focal points have been for other meetings in the last two years. Here are a few examples:
- A resolution urging Congress and the State Department to push through TransCanada's Keystone XL tar sands pipeline. ALEC recycles a lofty jobs lie in their reasoning for this resolution, ignoring State Department KXL job estimates under 2,000 and a Cornell study warning that "There is evidence to suggest that the effects of KXL construction could very well lead to more jobs being lost than are created." How many jobs does ALEC assume? 120,000 -- see Greenpeace's letter to the SEC to understand how they were calculated by politics rather than reality. Go figure--the American Petroleum Institute and its largest members were in the room when this resolution was forged.
- A deceptive ALEC bill pushed by ExxonMobil that "discloses" chemicals used by the oil industry in fracking operations, but actually inserts loopholes to avoid disclosure of certain fracking chemicals. This bate-and-switch comes at a time when doctors are concerned about signing confidentiality agreements if they ask for disclosure of fracking chemicals when treating people who are exposed to chemicals from gas drilling.
- A resolution that would prevent EPA from recognizing coal ash as a hazardous substance (it contains neurotoxins, carcinogens and radioactive elements). This may well have served as the model for the coal ash amendment that is currently being tacked on to the federal transportation bill by Rep. David McKinley (R-WV). Coal ash was a repeated topic of discussion at ALEC's energy task force meetings over the last two years, according to their meeting documents.
Who exactly attends these events? Beyond ALEC staff and dozens of corporate representatives, industry front groups are also represented. Tomorrow will feature John Felmy of the American Petroleum Institute in a presentation on gas prices (spoiler alert: this crowd will probably blame the President). Next up: presentations from representatives of the Edison Electric Institute (utility trade group) and the Nuclear Energy Institute (nuclear industry lobby).
Perhaps most intriguing will be a chat about "The Dirty Truth Behind Reusable Bags" led by Charles Gerba, who will warn attendees that reusable bags will give them "projectile vomiting and diarrhea." Gerba may not mention this dramatic and messy sickness can be avoided by simply washing one's reusable bags, since Mark Daniels of Hilex Poly (a plastic bag company) regularly attends these meetings, and Gerba serves as an advisor to Hilex Poly.
ALEC always gets some of industry's most interesting mouthpieces to set the rhetorical tone for those attending ALEC's anti-environmental jamborees. Looking back to last August at ALEC's Energy, Environment, and Agriculture task force meeting in New Orleans, presenters included:
- Robert Bradley of the Institute for Energy Research, which made press recently when its sister group the American Energy Alliance spend $3.6 million on ads blaming the President for high gas prices. IER has a former Koch lobbyist on staff and has received $175,000 from Koch foundations in recent years as part of the climate denial network.
- Gerry Angevene of the Fraser Institute, another longtime player in the Koch- and Exxon-funded climate denial machine
- James Taylor of the Heartland Institute, which has helped champion ALEC efforts to confuse K-12 students about climate science. Heartland is currently in the middle of a crisis as corporate funders are distancing themselves from its comparison of terrorists and serial killers to those who recognize the reality of global warming. Seriously, they put the Unabomber on a billboard saying, "Do you still believe in global warming? I do. www.heartland.org"
- Craig Idso, whose nutjob Center for the Study of Carbon Dioxide and Global Change has been paid by the coal industry and the Heartland Institute to tell people that global warming is good for the planet. Craig Idso explained this nonsense to state legislators in August. As is the pattern here, see the Center's history of Koch- and Exxon-funding, as well as Idso's former employment at Peabody and work for the Western Fuels Association.
- Stephen Miller of the American Coalition for Clean Coal Electricity, which spends big on national advertisements promoting the idea that perhaps coal isn't inherently dirty, dangerous and deadly (it is). Miller, who is resigning from ACCCE this year after serving as a dilligent coal apologist for the last decade, came under Congressional fire in 2009 when it was revealed that ACCCE contractors forged letters on behalf of groups "representing senior citizens, minorities and veterans," including the NAACP.
Likely due to the publicity of ALEC Exposed and the recent mass migration of 16 companies and 34 state politicians away from ALEC (in response to controversial bills on voter suppression and Stand Your Ground laws that protected Trayvon Martin's killer), ALEC no longer includes the specific members of its task forces in the documents it mails to participants beforehand. ALEC's Energy task force as of June, 2011 shows the nefarious people who run this dirty operation, by name. People representing the following groups have been consistently present at recent ALEC meetings over the last couple years:
Oil and gas industry:
- Shell Oil
- American Petroleum Institute
- Occidental Petroleum
- Marathon Oil
- Continental Resources
- American Gas Association (trade association)
- Peabody Energy
- Cloud Peak Energy
- Duke Energy & Progress Energy (which are merging into the nation's largest utility company)
- Energy Future Holdings
- American Electric Power
- PacifiCorp (a MidAmerican subsidiary, owned by Warren Buffet's Berkshire Hathaway)
- Alliant Energy
- Pinnacle West
- MDU Resources
- NV Energy
- Edison Electric Institute (trade association, membership includes all utilities above)
- American Coalition for Clean Coal Electricity (membership includes AEP, Peabody, and Energy Future Holdings subsidiary Luminant)
- Salt River Project
- National Rural Electric Cooperative Association (an aggressive lobbying group for electrical utility cooperatives and top political donor in the energy sector)
- Nuclear Energy Institute (trade association)
- Duke, Progress, AEP, and Pinnacle West all have notable nuclear generation capacity
Other major polluters:
- Dow Agrosciences
- International Paper
- American Chemistry Council (top trade association for chemical companies)
- Bayer Healthcare (Bayer is the country's top air polluter according the Political Economy Research Institute at U-Mass, Amherst)
- Honeywell (#31 on PERI's toxic air polluters list)
- General Motors (GM has a history of climate denial, although GM Foundation just dumped the Heartland Institute)
- LyondellBasell Industries (third largest chemical company in the world)
Front groups, all involved in climate science denial (Koch funding since 2005):
- Americans for Prosperity ($5,760,781)
- Atlas Economic Research Foundation ($152,600)
- Commonwealth Foundation ($84,532)
- Goldwater Institute ($70,427)
- John Locke Foundation ($47,472)
- Heartland Institute ($25,000)
Public Relations Firms
Dezenhall Resources, which Businessweek calls the "Pit Bull of Public Relations." Dezenhall Resources is currently included in a Greenpeace lawsuit due to its role in hiring spies on behalf of chemical companies to track Greenpeace's internal campaign plans.
The annual State of the Union address is political theater at its best--millions of Americans tune in to watch the big wigs schmooze, applaud the President in partisan waves and reveal the administration's platform for the rest of the year. Entertaining as it can be, the State of the Union also gives frustrating examples of who is successfully framing the national debates in our country. This year it was obvious that Big Oil, particularly the American Petroleum Institute (API), is forcing the U.S. to adopt it's narrow idea of America's "energy future."
In fact, the President of the United States sounded a lot like the self-appointed President of U.S. Energy--API president and CEO Jack Gerard. Compare one of Jack Gerard's key talking points from his recent "State of American Energy" address with a line from Obama's State of the Union speech last night (emphasis added):
GERARD: "We need all of our resources—oil and natural gas, coal, nuclear, wind, solar, biofuels and more."
OBAMA: "This country needs an all-out, all-of-the-above strategy that develops every available source of American energy - a strategy that's cleaner, cheaper, and full of new jobs."
It appears that, after repeated circulation among oil lobbyists and their apologists in Congress, President Obama has bought into this "all of the above" nonsense, an empty rhetorical gesture designed to keep our country dependent upon dirty energy like synthetic tar sands crude oil and gas obtained through controversial hydraulic fracturing. The "all of the above" line has been promoted on the websites of the American Petroleum Institute as well as API's "Energy Tomorrow" blog, the American Fuel & Petrochemical Manufacturers website and among members of Congress.
What Big Oil really means is that they'll continue to wave the carrot of clean energy in our faces as they push aggressively for increased oil and gas projects, subsidies and profits. This agenda infiltrates our government through the millions spent on Congressional campaign contributions and millions more on federal lobbying, and infiltrates the American public through expensive advertising campaigns like API's new "Vote 4 Energy" commercials. See Greenpeace's mock Vote 4 Energy commercial at the bottom of the blog.
While I'm sure Gerard and other oil lobbyists are thrilled with the results of their mass media campaigns and federal influence peddling, you can be their public response to the President's speech will be less appreciative.
Dirty energy lobbyists like Jack Gerard aren't going to stop harassing President Obama even if his administration "opened millions of new acres for oil and gas exploration." It will never be enough for Big Oil, which is why it's alarming that the President just bowed to two of the American Petroleum Institute's three major demands: opening up "75 percent of our potential offshore oil and gas resources," which spells inevitable doom for our coastlines, and pushing dangerous gas fracking forward despite the inability for state regulators and the Environmental Protection Agency to keep up with the industry's voracious appetite. API and it's Big Oil members aren't going to stop griping over the rejected Keystone XL tar sands pipeline because of these concessions--they will continue to demonize Obama's cabinet as a perpetual obstruction to "freedom" and "prosperity" and bombard us all with inflated jobs claims cooked up by their own reports. Congressional Republicans are already demanding more in response to Obama's energy plan despite it's destructive concessions, repeating the "all of the above" line in the process.
These criticisms are not to say that the President got it all wrong on his energy ambitions. His statements on prioritizing clean energy development and investing in widespread energy efficiency are crucial to the reduction of greenhouse gas concentration in our atmosphere as well as securing our energy infrastructure, creating space for newer, safer jobs while reducing unnecessary risks like deadly air pollution from refineries and unstoppable oil spills started by foreign companies like BP.
Without making the connection to the oil industry (and every other large industry meddling in federal policies), President Obama mentioned the "corrosive influence of money in politics." The oil industry has spent over $55.7 million on federal politicians in the last five years and an additional $651 million on federal lobbying in the same timeframe. Activist leader and scholar Bill McKibben notes that the 234 House Representatives who voted last December to fast track the Keystone XL pipeline took $42 million from the fossil fuel industry, while the 193 opposing members took a cumulative $8 million.
If that's not corrosive influence, then I don't know what is.
Vote 4 Energy mock commercial: