Same story, different day: Lamborn, Tipton offer-up tired package of oil and gas company giveaways

May 22, 2013 by Leave a comment

House Republicans paraded out their latest series of giveaways to the billion-dollar oil and gas industry today in a subcommittee chaired by Rep. Doug Lamborn (R-CO). The bills would increase corporate welfare and a total disregard for western families and the economic health of local communities.

These reckless proposals put forth by Reps. Lamborn, Scott Tipton (R-CO), and Doc Hastings (R-WA) have failed over and over again in Congress because Americans want more out of their representatives than messaging bills for the oil and gas industry. At a time when oil and gas companies are already getting fat on the taxpayers’ dime, it’s appalling that politicians are dishing up yet another industry smorgasbord with zero regard for Western families’ safety and security.

Westerners want a real balance between protecting public lands and energy development. That balance is critical for attracting high-wage businesses and maintaining the billion-dollar outdoor recreation economy in the West.

The three tired bills paraded out yet again today include extreme measures that create quotas and mandates on behalf of oil and gas companies, and encourage risky speculation on publicly owned lands. These reckless proposals would sacrifice our drinking water, air quality, and public lands just to create more handouts that would do nothing to address our energy concerns.

These reckless measures run counter to western values and what’s best for local economies. Recent polling found that 9 out of 10 Westerners agree that national parks, forests, monuments and wildlife areas are an essential part of the economy, while 74% believe that national parks, forests, and monuments, help to attract high quality employers and good jobs to their state.

The outdoor recreation industry alone accounts for $646 billion in annual spending, 6 million jobs and nearly $80 billion in local, state and federal taxes.

Yet, House Republicans continue to push these same reckless proposals, regardless of the potentially devastating impacts to western families and economies – in order to provide more handouts to the billion dollar oil and gas industry which is already hoarding millions of acres of public lands, billions in taxpayer-funded subsidies and is focused on drilling on non-federal lands, where the best and most profitable oil resources are located.

Reps Lamborn, Tipton and Hastings, need to be held accountable for blatant disregard of taxpayer money and their continued attempts to increase corporate welfare for oil and gas companies.

Key provisions from the legislation considered today:

Rep. Lamborn’s bill (HR 1965) would:

  • Block the public from participating in oil and gas leasing decisions by creating “entrance fees” of up to $5,000 to join the conversation.
  • Mandate leasing and encourage costly oil shale speculation that has a century-long track record of failure despite billions in taxpayer-funded subsidies.
  • Roll back the Obama Administration’s common sense approach to the failed “rock that burns,” oil shale, which would put already scarce western water at risk.

Rep. Tipton’s bill (HR 1394) would:

  • Establish energy development – especially fossil fuels – as the primary use of public lands, jeopardizing the billion-dollar outdoor recreation and tourism industries and the thousands of western jobs that they create.
  • Require the Department of Interior to prioritize oil, gas and coal over renewable energy development.

Rep. Hastings bill (HR 1964) would:

  • Fast track approval of drilling permits, roads and pipelines in the National Petroleum Reserve (NPR-A) in Alaska, regardless of potential environmental impacts.
  • Eliminate the “integrated activity plan” for NPR-A that balances energy development with protection of wildlife habitat and other critical areas.

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Former park rangers launch group to protect America’s national parks from irresponsible oil & gas drilling

May 1, 2013 by Leave a comment

Former park rangers have launched a new group, Park Rangers for Our Lands, to provide solutions to irresponsible plans to drill near America’s national parks.

The former park rangers are advocating for a balance between energy development and conservation, just at a time when Colorado Bureau of Land Management (BLM) Director Helen Hankins has tried to push forward widely-criticized plans to drill next to Dinosaur National Monument and near Mesa Verde National Park. These are two areas of primary concern for the group.

According to Richard Ellis, who spearheaded the formation of Park Rangers for Our Lands:

“Our parks are under siege. Oil and gas drilling is encroaching our public lands from all sides…We need the BLM to work with its neighbors at the National Park Service and come up with common sense ways to protect the parks, the air quality in the region, and keep the West a beautiful place to visit.”

Director Hankins has come under fire, numerous times, for her oil and gas leasing plans next to Dinosaur Monument’s visitor center, near Mesa Verde National Park, perilously close to Denver’s drinking water supplies, and in the agricultural heart of North Fork Valley.

Unfortunately, this hasn’t stopped Dir. Hankins from continuing to push to open these areas for oil and gas drilling (see graphic) – despite the risks to our water, public health, farms and economies. It’s time for Director Hankins to adopt a common sense approach to oil and gas leasing that includes up to date analysis, implementing national BLM reforms – to cut down on Colorado’s highest in the region lease protests- and taking into effect the concerns of local businesses, landowners and the National Parks Service.

Filed under Colorado, In The News, Permitting

Oil shale causes 80 percent of Estonia’s pollution

April 8, 2013 by Leave a comment

The hits just keep coming against Estonian oil shale. A new story from Estonian Public Broadcasting sheds more light on the devastating environmental impact oil shale has on the small, European nation.

“The oil shale industry, which produces the bulk of Estonia’s energy, is responsible for about 80 percent of the pollution and carbon emissions produced by Estonia, as well as nearly all of the sulfur emissions. Quarries and landfills have also spoiled around 15 percent of Ida-Viru County’s territory, as 150 square kilometers of land has sunk or become unstable.”

Just the week before, Estonia’s Environmental Minister said that the country has maxed out on oil shale due to high water use and pollution.

Oil shale waste piles are also prone to catching fire. Last week the Estonian government had to allocate 38 million Euros [$4.9 million according to today’s conversion rate] to extinguish a fourteen-acre fire at an oil shale site.

If these problems weren’t enough, the Estonian Economy Minister is under fire for a sour investment it made with Eestia Energia, known as Enefit in the U.S., to build a new controversial oil shale plant – which has since been abandoned. A majority of Estonians surveyed want to see the Minister resign over this deal and other questionable decisions.

Thankfully, on this side of the Atlantic, Interior Secretary Ken Salazar recently finalized a smart approach to costly oil shale speculation that should help the United States avoid Estonia’s problems. The Salazar plan requires companies to prove they’ve developed oil shale technology that works, is commercially viable and won’t deplete our scarce water resources or harm our air, land and wildlife, before any commercial leases are considered.

The environmental devastation and questionable investments from Estonian oil shale are good examples of why we need Sec. Salazar’s common sense oil shale plan.

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Big Oil’s API insatiable lust for taxpayer handouts continues; Industry group demands that U.S. double down on failed oil shale experiments

March 27, 2013 by Leave a comment

**UPDATE** API’s Erik Milito may want to check with Estonian Environment Minister Keit Pentus-Rosimannus before continuing to pressure President Obama to double down on costly oil shale speculation. In an article in today’s Postimees, Minister Pentus-Rosimannus said,

“Eighty percent of our waste, water use and greenhouse gas emissions are connected with the oil shale industry. We must think together how to reduce the negative impact. With that as bottom line, I do not consider it possible for the annual extraction volume of oil shale to grow in the future.”

Estonian oil shale giant Eesti Energia’s U.S. arm, Enefit, is one of the companies trying to develop oil shale in Utah. For more on that, see our recent series Eyes on Enefit.**UPDATE**

The American Petroleum Institute (API) – see: Big Oil – called on President Obama, today, to double down on a century of failed oil shale experiments and risk western water supplies.

API’s response to outgoing Interior Sec. Ken Salazar’s smart oil shale plan was shameless, but predictable (for more on the Salazar Plan, see articles in the SL Tribune, Denver Business Journal and an editorial in the Grand Junction Daily Sentinel). Sec. Salazar adopted a reasonable approach that requires oil companies to prove any oil shale technology they might develop is commercially viable and won’t devastate water resources and air quality in the West.

The Government Accounting Office and industry experts have said oil shale could use up to 140 percent of what Denver Water provides its customers, today.

It turns out that common sense and good business practice aren’t slowing down API’s insatiable lust for taxpayer handouts. API wants to double down on 100 plus years of abject oil shale failure, despite the huge risks to the West’s scarce water supplies.

Erik Milito, API’s director of upstream and industry operations, claims that ensuring the safety of western water might delay investment in the development of oil shale technology. He ignores the fact that oil shale speculators have failed for over a century to develop any such technology, despite the billions in taxpayer subsidies – and private investments – already risked.

Western families, farmers, ranchers and business owners, already in year two of the worst drought in a decade, can’t afford to have any more of their water risked on costly oil shale speculation. We need President Obama to put the security and safety of the West’s water and communities before Big Oil’s hunger for more taxpayer handouts.

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Wall Street Journal Editorial Twists CRS Report Like a Drill Bit

March 13, 2013 by Leave a comment

In an editorial today, the Wall Street Journal claimed a “sharp drop in production on federal lands is the direct result of Obama Administration policies.” They cherry pick statements from a Congressional Research Service (CRS) report to try and support their claim, but ignore sections of the report that directly refute them. The CRS report actually shows that outside factors such as price and geology are driving industry to drill on nonfederal lands, where the most lucrative plays exist.

If you read the CRS report, you learn that:

  • “Any increase in production of natural gas on federal lands is likely to be easily outpaced by increases on non-federal lands, particularly because shale plays are primarily situated on nonfederal lands and is where most of the growth in production is projected to occur.” (Pg. 3, 1st and 2nd paragraph)
  • “The big shale gas plays are primarily on non-federal lands and are attracting a significant portion of investment for natural gas development.” (Pg. 1, 2nd paragraph)
  • “But having more lands accessible may not translate into higher levels of production on federal lands, as industry seeks out the most promising prospects and highest returns.” (Pg. 2, 3rd paragraph)

 

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Senators get it wrong on oil & gas production at Jewell nomination hearing; Industry is following the oil to nonfederal lands

March 8, 2013 by Leave a comment

The Senate Energy and Natural Resources convened, Thursday, to question President Obama’s Interior Sec. nominee, REI Chief Executive Officer Sally Jewell. The three-hour hearing was generally friendly, but some Senators couldn’t pass up the chance to repeat oil and gas industry talking points, rather than deal in facts.

The Checks and Balances Project watched the hearing and used Twitter to fact check senators. Sen. Lisa Murkowski (R-AK), Sen. Joe Manchin (D-WV) and Sen. Tim Scott (R-SC) all ignored the facts about western land use and energy development at various points during the hearing.

Here are five statements from the hearing where senators got it wrong on U.S. oil and gas production*:

“They’ve driven us backward on the development of nearly a trillion barrels of oil shale in the Green River formation in Colorado, Utah, and Wyoming.”

– Sen. Tim Scott (1:29:38 – 1:30:05)

The facts: BLM released a revised PEIS late in 2012 that gave oil shale speculators access to 600,000 acres of public lands. For more than a century, people have tried and failed to make oil shale – a rock that doesn’t actually contain oil – a viable energy source. Along the way, billions of American taxpayer dollars have been risked, with nothing to show for it. According to Taxpayers for Common Sense, the federal government awarded nearly $7 billion in the 1980’s (over $12 billion adjusted for inflation) on oil shale loan and price guarantees.

Being from South Carolina, Sen. Scott may not know all this about oil shale, since they don’t have any. We suggest he reads our Century of Failure report, and visits No More Empty Promises, to learn more.

* * *

“If you look at the amount of production we have off of federal lands, that you would be responsible for, has declined, when private land production has increased. So it looks like the Department of Interior was going a different direction when the economy and the market was driving it – in the private sector – in a complete different direction.”

– Sen. Joe Manchin (54:20 – 54:45)

The facts: Earlier this week the Salt Lake Tribune ran a story on a new report which shows that price and geology are the reason there’s more drilling on private lands today:

Overproduction of U.S. natural gas, not burdensome drilling regulations, is driving energy developers from western public mineral leases to non-federal lands rich in oil to the east…According to the new report, 89 percent of shale oil and mixed oil and gas in the Intermountain West occupy non-federal deposits even though the feds control much of the region’s lands.

Phil Taylor at Greenwire also wrote on oil shale production on federal lands, showing that it’s actually on the rise.

* * *

“Despite tremendous resources on federal lands, nearly all gains in energy production have occurred on State and private lands.”

– Sen. Lisa Murkowski (Opening statement)

The facts: In 2011 the Bureau of Land Management held three of its five largest-ever lease sales for the rights to drill on public land for oil and gas. Those are just some of the 6,314,914 acres of public land the Obama Administration has leased to oil and gas companies – nearly 2.5 times as much as the Administration has permanently protected. A Denver Post story, U.S. oil and gas drilling moving to private land where the shale is, cited a new report from the Center for Western Priorities on the industry’s shift to drilling on nonfederal lands, saying that:

…nationally 93 percent of the shale oil and mixed oil-gas plays and 90 percent of the pure shale natural gas plays were not on federal land.

Oil and gas companies have plenty of public land – so much that 20 million acres of leased lands and nearly 7,000 approved drilling permits lay idle. The most valuable commodities are on private lands, so that’s where industry is drilling.

* * *

“It seems the President’s ‘all of the above’ strategy has not included public land very much. It seems like our success has been on private lands, state lands, but not on public lands, federally owned.”

– Sen. Tim Scott (1:31:08 – 1:31:20)

The facts: Obviously, Sen. Scott also needs to get up to speed on basic facts on U.S. oil and gas production. If CWP’s report isn’t enough, Sen. Scott should read a recent Congressional Research Service report that stated:

Any increase in production of natural gas on federal lands is likely to be easily outpaced by increases on non-federal lands, particularly because shale plays are primarily situated on nonfederal lands and is where most of the growth in production is projected to occur.

Sen. Scott may also want to check out a report (pg. 22) from the Bipartisan Policy Center that states:

This shift [in drilling location] generally reflects a coincidence of geography. The large shale formations that have attracted most of the recent development activity are located in parts of the country where the federal government simply does not have large land holdings (including notably the Bakken, Barnett, Haynesville, Marcellus, and Fayetteville plays).

* * *

“This administration has obstructed access to billions of barrels of oil in ANWR, off our Atlantic, Pacific, and Gulf coasts, and on federal lands out west.”

– Sen. Tim Scott (1:29:38 – 1:30:05)

The facts: The oil and gas industry are sitting on 7,000 idle, green lighted drilling permits, and the federal government consistently approves drilling permits faster than industry can drill new oil and gas wells. Any delays in the permitting process are largely attributable to industry, and not the federal government.

If Sen. Scott would like to come visit the West to see this all for himself, we’d be happy to show him around.

*Transcribed by Checks and Balances Project from Energy and Natural Resources Committee Archived Webcast,

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Donors Trust: The Secret Group Funding Attacks on Clean Energy & Climate Science

February 15, 2013 by Leave a comment

New research shows almost $120 million flowed from two secretive groups, called “Donors Trust” and “Donors Capital” to 102 groups denying climate science and attacking clean energy. The Guardian’s Suzanne Goldenberg reports that “the funds, doled out between 2002 and 2010, helped build a vast network of think tanks and activist groups working to a single purpose: to redefine climate change from neutral scientific fact to a highly polarizing ‘wedge issue’ for hardcore conservatives.”

Greenpeace research (.pdf) into the tax records of these organizations shows that publicly-disclosed funding for climate denial groups from foundations connected to the Koch Brothers began to decrease in 2006. But, funding from Donors Trust and Donors Capital Fund soared from less than $20 million per year to almost $35 million per year from 2006 to 2009. Kert Davies, research director at Greenpeace said to the Guardian, “These groups are increasingly getting money from sources that are anonymous or untraceable. There’s no transparency, no accountability for the money. There is no way to tell who is funding them.”

Many of these organizations funded by Donors Trust and Donors Capital Fund are also working to attack clean energy. Goldenberg notes in a companion article that recipients, including groups like the Heartland Institute and Americans for Prosperity (AFP), have received millions from the two secretive organizations.

AFP, which received $7.6 million from Donors Trust and Donors Capital Fund in 2010 (43% of its budget), drove anti-wind efforts last fall, leading a coalition of fossil fuel-funded groups to write a letter calling on Congress to block tax credits for wind energy. The Washington Post reported in November 2012 that the Heartland Institute, which received $1.6 million from Donors Trust and Donors Capital Fund in 2010 (27% of its budget), joined with the American Legislative Exchange Council (ALEC) to push model legislation to state legislators in an effort to eliminate state clean energy standards across the country. In addition, organizations that are part of the State Policy Network (SPN), which received $4.8 million from Donors Trust in 2010 (36% of its budget), published reports bashing clean energy standards that are now likely being used to attack clean energy policies in states across the country (like Kansas and Ohio).

Furthermore, the Guardian revealed in a third story that Donors Trust bankrolled the Franklin Centre for Government and Public Integrity, a newly established organization founded in 2009, which is running a campaign to “stop state governments moving towards renewable energy.” The Franklin Centre has strong ties to American’s for Prosperity and the Koch Brothers, including former staff members of both AFP and a Koch Family Foundation according to a PR Watch investigation.

Are these attacks ideological? Or are other fossil fuel interests like the Koch Brothers funding these efforts to stop a potential market threat? We know that fossil fuel corporations that have a financial incentive to stop the growth of the clean energy industry and their benefactors and foundations have funded many of these groups over the years. With an ability to hide the money trail through groups like Donors Trust, I would bet fossil fuel interests continue to fund fake grassroots campaigns and front groups to attack clean energy.

Filed under In The News, Pundit Masquerade Tagged with , , , , , , , , , , , , , , , , , , ,

Fact Check on #SOTU and Rep. Doc Hastings

February 14, 2013 by Leave a comment

In Tuesday night’s State of the Union address, President Barack Obama stated:

“Now, in the meantime, the natural gas boom has led to cleaner power and greater energy independence. We need to encourage that. That’s why my administration will keep cutting red tape and speeding up new oil and gas permits.”

House Natural Resources Committee Chairman Doc Hastings claimed in a response, yesterday, that Obama administration-created red tape has slowed down energy production.

The truth is that the oil and gas industry already has plenty of land and opportunities to drill. Oil and gas companies are sitting on millions of leased acres of public land that they’re using for production or exploration, and thousands of idle drilling permits. Meanwhile, the United States has seen oil production skyrocket on federal lands. Technology, geology and price determine where and how much industry drills, not red tape.

Instead of worrying about multi-billion dollar oil and gas companies, the Obama Administration needs to adopt a more aggressive policy when it comes to conserving public land. During President Obama’s first term, his administration permanently protected far fewer acres than his immediate four predecessors. The President and Congress need to adopt a more balanced approach to public land use, putting as much effort into protecting lands that are crucial to the nation’s tourism and outdoor recreation industries as they do expanding the oil and gas industries’ already-swollen public land holdings.

A few things Americans need to know about oil and gas production on public lands:

  • Industry is responsible for the majority of permitting delays. Last year, BLM announced it is moving to an online permitting system that will hopefully help companies cut down the time it takes them to properly file permit applications.

permit_timingBLM Table of Average Application for Permit to Drill (APD) Approval Timeframes:  FY2005 – FY2012

  • Industry is submitting far fewer permits to drill on public lands because of the shift from public lands’ natural gas resources to private lands’ shale oil deposits, and the federal government can’t approve a permit unless industry submits an application for it. More importantly, the federal government consistently approves drilling permits faster than industry can drill new oil and gas wells. The only thing holding back industry is industry.

wells_v_permitsBLM Summary of Onshore Oil and Gas Statistics

  • Industry does not use the drilling permits that have already been issued for oil and gas development. In fact, there are nearly 7,000 unused drilling permits that industry could develop on federal public lands.

unused_permitsBLM Approve Permits – Not Drilled table

  • According to the Department of Interior’s Oil and Gas Lease Utilization, Onshore and Offshore report, issued May 2012, “As of March 31, 2012, approximately 56 percent (20.8 million acres) of total onshore acres under lease on public lands in the Lower 48 States were conducting neither production nor exploration activities”

leased_productionDOI Oil and Gas Lease Utilization Report

  • The latest oil boom in the lower 48 states is due largely to an unconventional resource known as “shale oil,” (oil trapped within shale rock). The vast majority of both “shale oil” and “shale gas” (natural gas trapped within shale rock) is found under private and not public lands. The location of these resources, not safeguards for air and water, explain the shift in drilling from public to private lands.

shale_locationAdam Sieminski, U.S. House, Subcommittee on Energy and Power Committee on Energy and Commerce, 2 August 2012

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The Checks and Balances Project praises nomination of Sally Jewell as next Interior Secretary

February 6, 2013 by Leave a comment

Today, President Obama nominated Sally Jewell as the next Secretary of the Interior. Ms. Jewell would bring a diverse and accomplished background to the department. She is well positioned to expand upon the Administration’s balanced approach toward energy development on public lands. This approach is necessary to reign in oil and gas companies that act as if they are the sole owner of our public lands.

“Sally Jewell’s deep knowledge of public lands issues makes her an excellent choice for Secretary of the Interior,” said Ellynne Bannon, western lands program manager for the Checks and Balances Project. “She knows that protecting the public lands that drive tourism, travel, recreation, and agriculture is as important as setting aside lands for energy development. Ms. Jewell has the opportunity to bring more balance to our public lands and ensure that conservation and energy development are on equal ground. Key to finding that balance will be the continued implementation of outgoing Secretary Ken Salazar’s oil and gas leasing reforms.”

The leasing reforms enacted in 2010 help ensure that all stakeholders have a seat at the table and that air quality, water quality, wildlife habitat, and recreational values receive the protections they deserve.

The experience of Colorado demonstrates what happens when oil and gas leasing is allowed to go unchecked without proper public input. Due to Colorado BLM Director Helen Hankins’ failure to implement the leasing reforms, oil and gas protests in Colorado dwarf those in other states. Dir. Hankins has put vital public resources at risk because of a drill first, ask questions later approach to oil and gas leasing.

Ms. Jewell is the CEO of REI, an outdoor retailer, but began her career as an engineer for the oil industry. She serves on the Board of Regents at her alma mater, the University of Washington as well. Ms. Jewell was also key stakeholder in discussions to craft the President’s America’s Great Outdoors program, an agenda for the 21st century to support community-driven conservation and outdoor recreation initiatives.

Ms. Jewell has an excellent opportunity at Interior to remind Congress, as well as the oil and gas industry, that conservation and public lands fuel our economy and create jobs through outdoor recreation and tourism, and cannot be sacrificed for oil and gas companies’ speculative land grabs.

Filed under Blog, In The News

ICYMI: Colorado BLM Director under fire in national, state press for controversial oil and gas leasing

February 4, 2013 by Leave a comment

“All it takes is one spill, and we’re toast.” – rancher, Landon Deane

“I can’t guarantee you there won’t be a spill,” – Colorado BLM deputy state director for energy and minerals, Lonny Bagley

Worried what unchecked oil and gas drilling would do to their communities and livelihoods, Coloradans are up in arms about the state BLM’s out-of-step oil and gas leasing proposals. State and national outlets have taken notice, as both the New York Times and Denver Post took a look at this issue this weekend. Both stories highlight the controversy surrounding the Colorado BLM, and its Director, Helen Hankins, have created by refusing to follow leasing reforms enacted in 2010 to improve oil and gas leasing on public lands and reduce protests. Hankins and the Colorado BLM are out of step with responsible land management practices in the rest of the West.

Local residents are questioning the agency’s use of a 30-year old Resource Management Plans as part of its determination on which parcels of land should be leased. Hankins and the agency have been unwilling to update these plans, despite the pleas of local elected officials and residents to do so.

“They said there wasn’t enough oil and gas development interest to merit a plan. Then they put up parcels in the county for sale” – Park County administrator, Tom Eisenman.

Hankins also came under fire from a former superintendent of Dinosaur National Monument in a Denver Post column for her ‘irresponsible’ drilling proposals near national parks.

In the New York Times’ article, Hankins claims that her office doesn’t have the “luxury” of delaying the leases. But in fact, BLM policy under the 2010 leasing reforms put into place by Secretary Salazar state:

“The BLM recognizes that, in some cases, leasing of oil and gas resources may not be consistent with protection of other important resources and values. . . . Under applicable laws and policies, there is no presumed preference for oil and gas development over other uses.”

By not adopting these reforms, of Hankins’ outdated approach has given the Colorado the dubious honor of leading the West when it comes to protests against proposed leasing. In the past five years, nearly 9 out of every 10 acres proposed for leasing has come under protest in Colorado. By comparison, protests in Utah, Wyoming and New Mexico have declined by two-thirds to 27%.

“We’re unbelievably blessed by this place here,” he said. “We could be unblessed really quickly.” – farmer Wayne Talmage

Filed under Blog, In The News

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