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Thu, 2012-09-27 13:58Steve Horn
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Regulatory Non-Enforcement by Design: Earthworks Shows How the Game is Played

Earthworks Oil and Gas Accountability Project published a scathing 124-page report this week, “Breaking All the Rules: the Crisis in Oil & Gas Regulatory Enforcement.”

The content of the report is exactly as it sounds.

That is, state-level regulatory agencies and officials often aren't doing the jobs taxpayers currently pay them to do and aren't enforcing regulations on active oil and gas wells even when required to under the law.

This is both out of neglect and also because they're vastly understaffed and underfunded, meaning they literally don't have the time and/or resources to do proper inspections.

And on those rare instances when regulatory agencies and the regulators that work for them do enforce regulations on active oil and gas wells, Earthworks demonstrated that the penalties for breaking the rules are currently so weak that it's merely been deemed a tiny “cost of doing business” by the oil and gas industry.

Fri, 2012-07-27 03:30Steve Horn
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Exposed: Pennsylvania Act 13 Overturned by Commonwealth Court, Originally an ALEC Model Bill

On July 26, the Pennsylvania Commonwealth Court** ruled PA Act 13 unconstitutional.*** The bill would have stripped away local zoning laws, eliminated the legal concept of a Home Rule Charter, limited private property rights, and in the process, completely disempowered town, city, municipal and county governments, particularly when it comes to shale gas development.

The Court ruled that Act 13 “…violates substantive due process because it does not protect the interests of neighboring property owners from harm, alters the character of neighborhoods and makes irrational classifications – irrational because it requires municipalities to allow all zones, drilling operations and impoundments, gas compressor stations, storage and use of explosives in all zoning districts, and applies industrial criteria to restrictions on height of structures, screening and fencing, lighting and noise.”

Act 13 – pejoratively referred to as “the Nation's Worst Corporate Giveaway“ by AlterNet reporter Steven Rosenfeld – would have ended local democracy as we know it in Pennsylvania.

“It’s absolutely crushing of local self-government,” Ben Price, project director for the Community Environmental Legal Defense Fund (CELDF), told Rosenfeld. “It’s a complete capitulation of the rights of the people and their right to self-government. They are handing it over to the industry to let them govern us. It is the corporate state. That is how we look at it.”

Where could the idea for such a bill come from in the first place? Rosenfeld pointed to the oil and gas industry in his piece.

That's half of the answer. Pennsylvania is the epicenter of the ongoing fracking boom in the United States, and by and large, is a state seemingly bought off by the oil and gas industry.

The other half of the question left unanswered, though, is who do oil and gas industry lobbyists feed anti-democratic, state-level legislation to?

The answer, in a word: ALEC.

Thu, 2012-07-19 14:41Farron Cousins
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Texas Refineries And Chemical Plants Releasing Tens Of Thousands Of Tons Of Pollution

A damning new report from the Environmental Integrity Project (EIP) reveals some startling information regarding pollution in the state of Texas. According to the report, oil refineries and chemical plants in the state are releasing tens of thousands of tons of pollution every year, without as much as a peep from state regulators or the Environmental Protection Agency (EPA.)

Most of these emissions are the result of industrial accidents and other “equipment malfunctions” taking place at processing plants across the state. Among the more dangerous chemicals being released into the atmosphere and surrounding environment are sulfur dioxide and nitrogen oxide, both of which are major contributors to ozone depletion.

A few highlights from the new report:

Every year, refineries, chemical plants, and natural gas facilities release thousands of tons of air pollution when production units break down, or are shut off, restarted or repaired. Most of these “emission events” release pollution through flares, leaking pipelines, tanks, or other production equipment. Information obtained from the Texas Commission on Environmental Quality (TCEQ) for the last three years shows just how significant that pollution can be.

Between 2009 and 2011, emission events at chemical plants, refineries, and natural gas operations released a combined total of more than 42,000 tons of sulfur dioxide and just over 50,000 tons of smog- forming Volatile Organic Compounds (VOCs), according to industry reports filed with TCEQ. See Table 1. These releases are in addition to the amounts released year-round during so-called “normal operations,” and are usually not included in the data the government uses to establish and enforce regulations, or to estimate their health impacts. Natural gas operations — which include, well heads, pipelines, compressors, boosters, and storage systems — accounted for more than 85% of total sulfur dioxide and nearly 80% of the VOCs released during these episodes. Both pollutants are linked to asthma attacks and other respiratory ailments, and can form fine particles that contribute to premature death from heart disease.

Upsets or sudden shutdowns can release large plumes of sulfur dioxide or toxic chemicals in just a few hours, exposing downwind communities to peak levels of pollution that are much more likely to trigger asthma attacks and other respiratory systems. The working class and minority populations typical of neighborhoods near refineries and chemical plants bear the brunt of this pollution.
 
Fri, 2012-07-06 03:00Steve Horn
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EOG Resources: The Gas Corporation That Does It All From Cradle to Grave

DeSmogBlog, on multiple occasions, has reported that the damage caused by hydraulic fracturing, or “fracking” in the unconventional oil and gas industry goes far beyond water contamination, put in the spotlight by the documentary film “Gasland.” The multi-pronged harms were tackled in a comprehensive manner in our report, “Fracking the Future.”

One corporation in particular, EOG Resources, epitomizes the shale gas lifecycle from cradle to grave and the damage it is causing in communities worldwide. 

Who is EOG? The Artist Formerly Known as Enron

EOG Resources – owned by CEO Mark Papa – is the born again sibling of the now disgraced corporation, Enron Oil and Gas, hence “EOG.” It is headquarted in Houston, TX.

Former President and Chief Opearing Officer of Enron, Richard Kinder, recently referred to by The Wall Street Journal as “The Luckiest Ex-Enron Employee,” now co-owns oil and gas industry pipeline giant, Kinder Morgan

After the fall of Enron, Kinder Morgan purchased Enron's pipeline assets and built up the Kinder Morgan behemoth into what it is today, the corporation with the most extensive array of pipelines in North America.

Mon, 2012-05-14 11:47Brendan DeMelle
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Oil and Gas Industry Moves to Silence Critics

Shutterstock image by iodrakon

At an industry public relations conference last year, Michael Kehs of Chesapeake Energy described a Wall Street Journal op-ed to gathered oil and gas officials, saying it pointed out the industry's “credibility problem.”

“And I’m sure some of it relates to defensiveness,” Kehs added. (MP3 Audio

Small wonder.

For years, the oil and gas industry has adopted a war-like mentality towards its critics. When confronted with problems caused by drilling and fracking, instead of acknowledging them and working to prevent more, their approach has too often been to cover up the issues while attacking any critics who make problems known publicly.

This pattern has sharply accelerated in recent months.

Earlier this month, Al Armendariz, the EPA's regional administrator for the oil-and-gas rich states of Texas, Louisiana, Arkansas, Oklahoma, and New Mexico, sent his letter of resignation to Lisa Jackson, head of the EPA. Mr. Armendariz had come under heavy fire over comments he made two years ago at a local government meeting in Texas. 

In explaining his law enforcement philosophy, he analogized his agency's strategy to the early Romans, who he said would “crucify” law-breakers to make examples of them. After a video of these remarks was circulated last week by Sen. James Inhofe, Republican from Oklahoma, who counts the oil and gas industry as one of his largest donors, a firestorm of controversy broke out.

As Media Matters pointed out, when Mr. Armendariz said he intended to make an example of offenders, he was referring only to companies that actually broke the law – but this was not enough to save his career.

Wed, 2012-05-02 10:04Steve Horn
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ALEC Wasn't First Industry Trojan Horse Behind Fracking Disclosure Bill - Enter Council of State Governments

19th Century German statesman Otto von Bismarck once said, “If you like laws and sausages, you should never watch either one being made.”

The American Legislative Exchange Council (ALEC), put on the map by the Center for Media and Democracy in its “ALEC Exposed” project, is the archetype of von Bismarck's truism. So too are the fracking chemical disclosure bills that have passed and are currently being pushed for in statehouses nationwide.

State-level fracking chemical disclosure bills have been called a key piece of reform in the push to hold the unconventional gas industry accountable for its actions. The reality, though, is murkier.

On April 21, The New York Times penned an investigation making that clear. The Times wrote:

Last December, ALEC adopted model legislation, based on a Texas law, addressing the public disclosure of chemicals in drilling fluids used to extract natural gas through hydraulic fracturing, or fracking. The ALEC legislation, which has since provided the basis for similar bills submitted in five states, has been promoted as a victory for consumers’ right to know about potential drinking water contaminants.

A close reading of the bill, however, 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. Most telling, perhaps, the bill was sponsored within ALEC by ExxonMobil, one of the largest practitioners of fracking — something not explained when ALEC lawmakers introduced their bills back home.

The Texas law The Times refers to is HB 3328, passed in June 2011 in a 137-8 roll call vote, while its Senate companion bill passed on a 31-0 unanimous roll call vote. Since then, variations of the model bill have passed in two other key states in which fracking is occuring.

Like dominos falling in quick succession over the following months, ColoradoPennsylvania and, most recently, the Illinois Senate passed bills based on the ALEC model. Louisiana also has introduced a similar bill. 

Mon, 2012-04-23 14:20Steve Horn
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Rendell and Ridge: From "Militant" Labelers to Terrorist Enablers

A new chapter has been added to the shale gas industry's eco-terrorism, counterinsurgency and psychological operations saga.

In March, NBC News investigative reporter Michael Isikoff revealed that many prominent U.S. public officials are on the payroll of the People's Mujahedin of Iran (MEK), a group labeled by the U.S. State Department as a terrorist organization. These U.S. officials are lobbying hard to remove the MEK from the list.

Under U.S. Supreme Court precedent, after the recent Holder v. Humanitarian Law Project decision – a controversial decision itself – it is a federal crime to provide “material support” for a designated terrorist organization. But legal niceties are apparently of nil concern to those on the dole of the MEK, a list that includes several big name political figures, according to a report written by former Bush Administration attorney and RAND Corporation analyst Jeremiah Goulka. A sample is below:

  • Former Gov. Ed Rendell (D-PA)
  • Former Gov. Tom Ridge (R-PA), who was also the former head of the U.S. Department of Homeland Security under President George W. Bush
  • Former NY Mayor Rudy Giuliani, who was also a Republican primary candidate for President in 2008
  • Former Gov. Howard Dean (D-VT), formerly the head of the Democratic National Committee and a Democratic primary candidate for President in 2004  

Many other powerful people are on the bipartisan list, as well. 

Thu, 2012-04-19 13:45Steve Horn
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New Bakken Shale Pipeline to Cushing, OK in the Works

The controversy over TransCanada's Keystone XL pipeline has raged on for years now, with no end in sight. 

The Keystone XL pipeline would carry tar sands crude from the tar sands epicenter of the world in Alberta, Canada, take it down to Cushing, OK, and then eventually down to Port Arthur, TX, where it will be refined and placed on the lucrative oil export market.

While Republicans continue to try to make Keystone XL a campaign issue, President Obama has officially put the fate of the pipeline on the backburner until after the November 2012 U.S. elections.

But this has not stopped other key pipelines and pipeline extensions from being built “in the meantime, in between time,” as the song lyrics made famous by the classic novel, The Great Gatsby, go.

Most recently in the limelight: Obama's late-March approval of the TransCanada Cushing Extension, which extends from Cushing, OK – the self-proclaimed “pipeline crossroads of the world” – to Port Arthur, TX, where oil would be placed on the global export market. 

Now, another key pipeline proposal is in the works, one that would move unconventional oil and gas obtained via the problematic hydraulic fracturing (“fracking”) process in North Dakota's Bakken Shale basin southward to Cushing, where it would then be moved to Port Arthur and also placed on the global export market. Another portion of that pipeline would move the oil and gas westward toward Coos Bay, Oregon, where it would also be exported to the highest bidder.

Tue, 2012-03-20 14:03Steve Horn
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Obama Sojourns to "Pipeline Crossroads of the World" for Campaign Speech

It's the multi-pronged fight that never seems to end.

The Alberta Tar Sands have been near the forefront of the North American energy and climate debate, thanks in large part to growing public concern and grassroots efforts like Tar Sands Action, a campaign led by climate activists to block construction of the Keystone XL pipeline.

The temporary derailing of Keystone XL by President Obama - who in January delayed permission to construct the pipeline for the foreseeable future - was labeled a “victory” by many activists. 

But complicating the “victory” narrative, Obama later granted permission to TransCanada Corporation to build the southern segment of the pipeline, the Cushing Extension, sometimes also referred to as the Cushing Marketlink Project, which will run from Cushing, Oklahoma to Port Arthur, Texas

Pandering to Big Oil, Obama will visit Cushing on Thursday, the self-proclaimed “Pipeline Crossroads of the World,” to give a stump speech for his 2012 election campaign.

The Stillwater News Press explained the rationale for the visit this way:

The White House has announced the president will be in Cushing Thursday to discuss his 'all-of-the-above' energy policy…Thursday appears to some locals as an opportune time for Obama, who said he supports the southern leg, to get on board on the northern segment of the 36-inch pipeline from Canada.

CBC News reports that “Obama will make a speech at a storage yard that's holding pipes to be used to build the pipeline.” 

As the old adage goes, “A picture is worth a thousand words.” 

Fri, 2012-02-03 13:00Steve Horn
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Warren Buffett Exposed: The Oracle of Omaha and the Tar Sands

Credit: Pete Souza, Office of the President

On January 23, Bloomberg News reported Warren Buffett's Burlington Northern Santa Fe Railway (BNSF), owned by his lucrative holding company Berkshire Hathaway, stands to benefit greatly from President Barack Obama’s recent cancellation of the Keystone XL pipeline

If built, TransCanada's Keystone XL (KXL) pipeline would carry tar sands crude, or bitumen (“dilbit”) from Alberta, B.C. down to Port Arthur, Texas, where it would be sold on the global export market

If not built, as revealed recently by DeSmogBlog, the grass is not necessarily greener on the other side, and could include increased levels of ecologically hazardous gas flaring in the Bakken Shale, or else many other pipeline routes moving the prized dilbit to crucial global markets.

Rail is among the most important infrastructure options for ensuring tar sands crude still moves to key global markets, and the industry is pursuing rail actively. But transporting tar sands crude via rail is in many ways a dirtier alternative to the KXL pipeline. “Railroads too present environmental issues. Moving crude on trains produces more global warming gases than a pipeline,” explained Bloomberg.

A key mover and shaker behind the push for more rail shipments is Warren Buffett, known by some as the “Oracle of Omaha” – of “Buffett Tax” fame – and the third richest man in the world, with a net worth of $39 billion. With or without Keystone XL, Warren Buffett stands to profit enormously from multiple aspects of the Alberta Tar Sands project. He also, importantly, maintains close ties with President Barack Obama.

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