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Fri, 2014-10-17 14:00Mike G
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More Oil Companies To Disclose Risks Of Fracking, Climate Change To Investors

Last week brought yet more evidence that investors in oil and gas companies are waking up to the risks of fracking and climate change.

Two natural gas companies, Anadarko Petroleum and EOG Resources, recently struck a deal with New York Attorney General Eric Schneiderman to disclose the financial and environmental risks associated with fracking to their shareholders, including “probable future regulation and legislation” that could impact their operations, according to a statement released by Schneiderman's office.

The agreement resolves a probe by Schneiderman into the disclosure practices of oil and gas companies begun in 2011.

Business media outlets like Bloomberg are framing the story very much as “oil companies doing the right thing,” but it's important to note that these companies would not be doing this if they didn't feel it was in their best interest—and generally whatever keeps shareholders happy is in a company's best interest.

Bloomberg notes that the oil companies are hoping “to ease public fears about fracking after legal setbacks and concerns over water pollution.” As is becoming increasingly clear, concerns over water pollution are all too valid.

Legal setbacks are probably keeping any fracker in New York up at night, as well, after the New York state supreme court ruled in June that municipalities have the right to adopt their own rules on fracking.

So far, 180 New York towns and cities have issued a ban or moratorium on fracking.

Wed, 2014-08-20 07:00Justin Mikulka and Steve Horn
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Big Rail Cites Bin Laden, Al Qaeda to Fend Off Oil-by-Rail Route Transparency

While many states around the U.S. have released information to the public about the frequency and routes of trains carrying oil obtained from hydraulic fracturing (“fracking”) in North Dakota’s Bakken Shale basin, holdouts still remain. 

Why the delay? Homeland security concerns, claim some companies. 

In an ongoing Maryland court case over the issue of transparency for in-state oil-by-rail routes, a July 23 affidavit from Carl E. Carbaugh — director of infrastructure security for Norfolk Southern — goes into extensive detail about the supposed risk presented by terrorism attacks on “Bomb Trains.” 

In so doing, Carbaugh mentions Al-Qaeda. 

The most recent edition of Inspire magazine, March 2014, the online, English-language propaganda publication of [Al-Qaeda in the Arabian Peninsula], presents a full-page collage depicting varied images…in order to construct an explosive device,” reads Carbaugh’s affidavit

Among these images are a derailed passenger train and a partly covered note paper listing cities in the [U.S.] as well as the terms ‘Dakota’ and ‘Train crude oil.’” 

Carbaugh also cited Osama bin Laden, the late Al-Qaeda international ring-leader, in his affidavit.

Among the materials seized in the May 1, 2011, raid on Osama bin Laden’s compound in Abbottabad, Pakistan, were notes indicating interest in ‘tipping’ or ‘toppling’ trains — that is causing their derailment,” Carbaugh wrote.

Osama Bin Laden Compound Diagram; Image Credit: Wikimedia Commons

Wed, 2014-07-02 10:38Justin Mikulka and Steve Horn
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For Oil-By-Rail, a Battle Between “Right to Know” and “Need to Know”

Lac Megantic train explosion

Since the first major oil-by-rail explosion occurred on July 6, 2013, in Lac-Mégantic, Quebec, citizens in communities across the U.S. have risen up when they've learned their communities are destinations for volatile oil obtained from hydraulic fracturing (“fracking”) in North Dakota’s Bakken Shale basin. 

As the old adage goes, ignorance is bliss. It's also one of the keys to how massive oil-by-rail infrastructure was built in just a few short years — the public simply didn't know about it. 

Often, oil companies are only required to get state-level air quality permits to open a new oil-by-rail facility.

Terry Wechsler, an environmental attorney in Washington, recently explained to Reuters why there was no opposition to the first three oil-by-rail facilities in the area.

“There was no opposition to the other three proposals only because we weren't aware they were in formal permitting,” he said

The same thing unfolded in Albany, N.Y., where there is an ongoing battle over expansion of the major oil-by-rail facility set to process tar sands crude sent by rail from Alberta. The initial permits for the oil rail transfer facility, which would allow two companies to bring in billions of gallons of oil a year, were approved with no public comment

Tue, 2014-06-24 14:04Chris Rose
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Tackling Global Warming Would Increase GDP (And Save 94,000 Lives a Year): World Bank Report

High-speed train

Aggressively tackling global warming through better public transportation and increased energy efficiencies could increase global GDP by between $1.8 trillion and $2.6 trillion annually, a new report has found.

Released on Monday, the report by the World Bank and the ClimateWorks Foundation said tackling global warming now would also save as many as 94,000 lives a year from pollution-related diseases and reduce crop losses.

The report — Climate-Smart Development: Adding Up the Benefits of Actions that Help Build Prosperity, End Poverty and Combat Climate Change — shows the potential gains from scaling up pro-climate policies.

The report’s findings show clearly that the right policy choices can deliver significant benefits to lives, jobs, crops, energy, and GDP — as well as emissions reductions to combat climate change,” World Bank President Jim Yong Kim said.

Written in advance of UN Secretary-General Ban Ki-moon’s Climate Summit in New York in September, the report looks at benefits that ambitious climate mitigation policies can generate across the transportation, industry and building sectors, as well as in waste and cooking fuels. It focuses on Brazil, China, India, Mexico, the United States and the European Union.

Wed, 2014-06-11 13:09Steve Horn
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Revealed: Emails Show ND Ethics Law Potentially Broken on Petraeus Fracking Trip

DeSmogBlog has obtained emails via North Dakota's Open Records Statute revealing facts that could be interpreted as indicating that North Dakota Treasurer Kelly Schmidt broke State Investment Board ethics laws.

The potential legal breach occurred during a late-April fracking field trip made to the state by former CIA Director Gen. David Petraeus.

In a radio interview responding to DeSmogBlog's original investigation about the trip, Schmidt said rolling out the red carpet for Petraeus — who now works at Manhattan-based private equity giant Kohlberg Kravis Roberts (KKR), which holds over $1 billion in oil and gas industry assets and calls itself a “mini oil and gas company“ — was “not unusual.”

KKR initially told DeSmogBlog it followed all state and federal laws during the Petraeus visit. 

But new emails obtained by DeSmogBlog from both the North Dakota State Investment Board and the Office of the North Dakota State Treasurer call that and much more into question. 

Rewinding back to where it all began, for the final stops of the two-day Petraeus visit to North Dakota, he and his KKR colleagues Ari Barkan and Vance Serchuk met with representatives from the North State Investment Board and the North Dakota Department of Land Trusts.

Banal convenings at face-value, what preceded and followed the meetings tells a bigger story: first a crucial plane flight and then a follow-up invitation to come to New York City to talk business.

Looked at on the whole, the plane flight and what came after it raises fundamental legal and ethical questions about the burgeoning — and much-touted in some circles — North Dakota oil and gas Legacy Fund.  

Mon, 2014-06-02 11:53Justin Mikulka
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Earthjustice to Defend Right of Dryden, NY, to Ban Fracking Within Town Limits

Don't Frack New York

On June 3rd, lawyers from Earthjustice will argue to New York’s highest court that the town board of Dryden, NY, has the right to ban fracking within its borders.   

Gas company Norse Energy has sued the Town of Dryden to try to negate its town council’s 2011 unanimous vote to ban fracking. Dryden’s decision has withstood challenges at two lower levels of New York’s judicial system, but this decision in the state’s highest court will be the one that sets precedent.

Dryden’s initial efforts to ban fracking were organized by a group of citizens with legal help from Helen Slottje, a lawyer who has since won the prestigious Goldman Prize for her work on this issue. Once the gas industry sued the Town of Dryden, Earthjustice volunteered to take on the case and has represented the town in this legal battle.

Earthjustice has produced a video, narrated by actor and activist Mark Ruffalo, which tells the story of the Dryden residents who organized the petition drive that led to the unanimous town board vote establishing the ban on fracking. 

Mon, 2014-06-02 05:00Sharon Kelly
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Loopholes Enable Industry to Evade Rules on Dumping Radioactive Fracking Waste

As the drilling rush proceeds at a fast pace in Pennsylvania's Marcellus shale, nearby states have confronted a steady flow of toxic waste produced by the industry. One of Pennsylvania's most active drilling companies, Range Resources, attempted on Tuesday to quietly ship tons of radioactive sludge, rejected by a local landfill, to one in nearby West Virginia where radioactivity rules are still pending. It was only stopped when local media reports brought the attempted dumping to light.

“We are still seeking information about what happened at the Pennsylvania landfill two months ago when the waste was rejected, and about the radiation test results the company received from the lab,” Kelly Gillenwater, a West Virginia Department of Environmental Protection spokeswoman, told the Pittsburgh Post-Gazette, which had tracked the waste after it was rejected by a Chartiers, PA landfill because it was too radioactive. “For now this is still under investigation.”

It's one of a series of incidents involving the disposal of fracking's radioactive waste. Collectively these incidents illustrate how a loophole for the oil and gas industry in federal hazardous waste laws has left state regulators struggling to prevent the industry from disposing its radioactive waste in dangerous ways.

Sun, 2014-06-01 15:59Ben Jervey
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How Your Town Can Ban Fracking: A Q&A with Goldman Prize Winner Helen Slottje

Helen Slottje has redrawn the map of fracking in upstate New York.

Since 2010, Slottje and her husband David, both attorneys, have battled to keep fracking out of New York communities using local zoning laws. Since pioneering this novel legal strategy in the town of Ulysses, near their home town of Ithaca, the Slottjes have traveled town to town, helping communities understand language in the state’s constitution that gives municipalities the right to make and enforce these local land use decisions.

Today, more than 175 communities in New York have fracking bans on the books, so that even if the statewide moratorium on fracking were to be lifted tomorrow, oil and gas companies would be barred from plunging their drills within those municipalities' borders.

Their efforts were recognized last month with the Goldman Environmental Prize, which some call the “Green Nobel.” The prize committee celebrated Slottje’s pro-bono legal assistance for “helping towns across New York defend themselves from oil and gas companies by passing local bans on fracking.”

Of course, the fracking industry has fought back, challenging the bans in many towns, all of which have been decided in the towns’ favor in the state’s lower courts. Two cases, in the towns of Dryden and Middlefield, are up before the Court of Appeal which will hear oral arguments on June 3 in Albany.

DeSmogBlog spoke with Helen Slottje about how she got into the fracking fight, how to talk about fracking to communities that are being promised so much wealth by industry, how to go face-to-face with big oil and gas flacks, and what lessons could be learned from the success of the town bans for other battles against the fossil fuel industry. The hour-long conversation has been edited for length and clarity.

Fri, 2014-05-23 05:00Steve Horn
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Revealed: Former Energy in Depth Spokesman John Krohn Now at U.S. EIA Promoting Fracking

For those familiar with U.S. Energy Information Administration's (EIA) work, objectivity and commitment to fact based on statistics come to mind. Yet as Mark Twain once put it, “There are three kinds of lies: lies, damned lies, and statistics.”

That's where John Krohn comes into play. A former spokesman for the gas industry front group Energy in Depth (EID), Krohn now works on the Core Team for EIA's “Today in Energy!“ 

Krohn has been at EIA since at least January 2014, when his name first appeared on the EIA website. On his Twitter account, he describes himself as an EIA communications manager.

As DeSmog revealed in February 2011, Energy In Depth was launched with a heavy injection of funding from oil and gas industry goliaths such as BP, Halliburton, Chevron, Shell and XTO Energy (now owned by ExxonMobil).

With its public relations efforts conducted by FTI Consulting, EID now serves as a key pro-industry front group promoting unfettered hydraulic fracturing (“fracking”) to the U.S. public.

Krohn follows in the footsteps through the government-industry revolving door of the man President Barack Obama named to head the U.S. Department of Energy (DOE) for his second term, former Massachusetts Institute of Technology “frackademic,” Ernest Moniz. DOE is the parent agency for EIA

Further, EIA Administrator Adam Sieminski, another second-term appointee of President Obama, also passed through the same revolving door as Krohn and Moniz in his pathway to heading EIA. He formerly worked in the world of oil and gas finance. 

Thu, 2014-05-01 12:06Steve Horn
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Gulf Stream: Williams Suspends Bluegrass Gas Export Pipeline, Announces New Export Line

Right before the champagne bottles began popping for activists engaged in a grassroots struggle to halt the construction of Williams Companies' prospective Bluegrass Pipeline project — which the company suspended indefinitely in an April 28 press release — Williams had already begun raining on the parade.

The pipeline industry giant took out the trash on Friday, April 25, announcing its intentions to open a new Louisiana pipeline named Gulf Trace.

Akin to TransCanada's ANR Pipeline recently reported on by DeSmogBlog, Gulf Trace is not entirely “new,” per se. Rather, it's the retooling of a pipeline system already in place, in this case Williams' Transco Pipeline system

The retooling has taken place in the aftermath of Cheniere's Sabine Pass LNG export facility receiving the first ever final gas export permit from the U.S. Federal Energy Regulatory Commission (FERC) during the fracking era.

Williams' Transco Pipeline System; Photo Credit: William Huston

Both ANR and Gulf Trace will feed into Sabine Pass, the Louisiana-based LNG export terminal set to open for business in late 2015Also like ANR, Transco will transform into a gas pipeline flowing in both directions, “bidirectional” in industry lingo.

Bluegrass, if ever built, also would transport fracked gas to the Gulf Coast export markets. But instead of LNG, Bluegrass is a natural gas liquids pipeline (NGL)

“The project…is designed to connect [NGLs] produced in the Marcellus-Utica areas in the U.S. Northeast with domestic and export markets in the U.S. Gulf Coast,” it explained in an April 28 press release announcing the project's suspension. 

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