New pro-fracking group lacks CRED-ibility

Executives at Anadarko and Noble Energy are the board members and the Western Energy Alliance’s communications manager is the spokesperson for a new natural gas group in Colorado. The Center for Western Priorities takes a look at this group and asks the obvious question – is it willing to break ranks with the oil and gas industry, or is it just another empty mouthpiece.

A new industry-backed oil and gas group has sprung up in Colorado, and it’s calling itself CRED (Coloradoans for Responsible Energy Development). According to profiles in the Denver Business Journal and Greenwire, the group was created by top executives at two of Colorado’s biggest oil and gas players. CRED says its purpose is to correct Coloradans’ misunderstandings about the oil and gas industry. But, clever acronyms aside, the group is going to have to prove its CRED-ibility as an impartial, legitimate information source, before anyone’s going to take it seriously. That means acknowledging facts and taking positions even if they conflict with industry talking points.
– (CWP blog post, 9/10/13)

Read the full post and judge this new group for yourself.

Q&A: ALEC’s new tactics to weaken renewable laws

This Q&A originally appeared in Midwest Energy News. 

By 

ALEC40Though bills meant to revoke or undercut renewable standards in numerous states failed last session, clean energy advocates say the model Market Power Renewables Act and the Renewable Energy Credit Act proposed by ALEC’s energy task force during the conference pose a fresh threat.

The Market Power Renewables Act argues for a “voluntary market” that would allow people to invest in renewable energy if they choose without instituting mandates, and it claims that such an approach could lead to more renewable energy development overall.

The Renewable Energy Credit Act would expand the types of energy that would count toward credits. It would also remove caps on the proportion of an RPS that can be met through credits – a provision now enshrined in many states’ laws. And it would also allow the renewable standard’s full term – for example through 2025 – to be met in advance by bulk purchases of credits to meet future requirements.

The ALEC conference also included presentations by the American Petroleum Institute on local hydraulic fracturing bans; offshore energy as “good sense and good cents”; nuclear energy’s role in baseload electricity production; and the U.S. EPA’s “assault on state sovereignty,” hosted by a representative of the Competitive Enterprise Institute.

Gabriel Elsner, director of the pro-clean energy watchdog Checks and Balances Project, was among the advocates banned from ALEC’s meeting in Oklahoma City in May. Elsner was in Chicago for the recent conference, in an effort to learn more about state legislators’ and corporate executives’ ties with ALEC. The Checks and Balances Project also collaborated with the Center for Media and Democracy and Greenpeace to publicize ALEC’s confidential agenda and proposed model bills.

Midwest Energy News spoke with Elsner during his visit.

Midwest Energy News: Given that ALEC was unable to pass its bills last year, how serious a threat do these model bills pose to RPS standards and to renewable energy development as a whole?

Elsner: ALEC completely failed in 2013 to weaken or eliminate RPS laws. We’ve seen that because there’s bipartisan support for clean energy. Businesses and communities are seeing local economic development and job creation because of these laws.

ALEC’s new model legislation is a stealth attack on RPS’s. They are framed in a way that makes them seem pro-clean energy, but would open up RPS’s to allow sources of electricity – from large hydropower to landfill gas — to be included in state laws that are supposed to incentivize clean energy sources like wind, solar and geothermal. The net effect would be reduced incentives for local, clean energy development in states that adopted this new bill.

ALEC’s proposed “Market-Power Renewables Act” doesn’t mention hydropower or landfill gas – how do you figure it would allow such energy to be counted toward RPS compliance?

This bill as written would open up the market to the different registries that regulate renewable energy credits. For example, in Kansas, your renewable energy credits are regulated by a different entity than in California. But if Kansas passes this law, they could buy RECs from hydropower plants in California or Oregon to fulfill the entire RPS.

That’s already allowed in some states, how would this law be different?

I looked at the regional registries for RECs listed in the model bill. REC registries define renewable energy differently – some include hydropower plants as large as hundreds of megawatts. Others include landfills gas and biomass projects.

ALEC’s new model bills would create a lowest common denominator that would weaken the traditional RPS’s by allowing out-of-state RECs to fulfill the entire RPS. If building a wind turbine in Kansas cost a dollar and five cents but you could go out and buy an REC for a dollar from a hydropower plant in Maine, the utilities would go out and buy a credit and not build the local clean energy project. It would eliminate the economic benefit and jobs in the state.

Palmer-House-Phillip-CantorWhat exactly is an ALEC model bill and where does it go from here?

The bills were discussed by the ALEC Energy, Environment and Agriculture Task Force on Friday and voted on by a combination of corporate representatives like AEP and Exxon Mobil and legislators who sit on the task force. Once it passes the task force, a bill goes to the executive board of ALEC. [If the board approves,] it becomes a model bill and is sent out to ALEC legislators across the country.

Who are ALEC legislators?

ALEC doesn’t publish a list of which legislators are members. The Center for Media and Democracy has compiled a list at ALECExposed.org. Right now, we know that about 25 percent of all state legislators are members of ALEC. Legislators who attacked RPS’s last year were in Chicago for the conference.

At the conference ALEC also discussed a model resolution supporting grid modernization. This would appear to put ALEC on the same page as clean energy groups. Is their support really a way to introduce curbs on improving the grid or promoting renewables on the grid?

It would be great if utilities were for grid modernization because it could lead to more clean energy development, smart meters, net metering. But more likely is that members of the ALEC energy task force are supporting grid modernization to maximize the benefits to the utilities at the expense of ordinary consumers.

It’s also a model resolution – not model legislation – so it lacks any details on what pieces of grid modernization they would actually support. The model resolution supports cost recovery by utilities, but would they support the increased use of smart meters and net metering?

If model bills don’t benefit the utilities and other fossil fuel interests funding ALEC, it’s probably not going to pass the task force.

ALEC calls for the possibility of buying renewable energy credits from businesses and private citizens. Might this in a sense further the goal of distributed energy and create incentives for people or businesses to generate their own renewable energy?

In theory this could lead to increased use of clean energy by opening up a voluntary market for RECs. But it’s more likely that opening the RPS to large existing hydro and other sources of electricity would water down the market and undermine in-state clean energy development.

It’s important to point out that RPS’s are already driving clean energy investment. In Kansas alone, it resulted in $3 billion of private sector investment in clean energy last year. These policies are working – if the members of ALEC really want to support clean energy they should work to increase the RPS standards.

The ALEC energy task force also passed a resolution to oppose a carbon tax. How much political significance does this have, especially given that ALEC works on the state level, and a carbon tax would be federal?

[The resolution] is a problem because it is a message to our national representatives in Congress. If state legislatures start passing resolutions against a carbon tax, it would send a strong message to people in Washington, D.C. that a carbon tax is not politically feasible.

What do groups hope to accomplish by publicizing ALEC’s agenda and model bills?

Transparency is always a good thing. ALEC for far too long has operated behind closed doors – lobbying our state legislators on behalf of their corporate members. The Checks and Balances Project is trying to bring accountability to that process by showing the public that major fossil fuel interests are working to impact our energy policy through ALEC.

Have these efforts had an impact already, such as with the failure of the bills in the past year?

I think that they have certainly mobilized people who are in favor of clean energy. ALEC’s attacks on clean energy mobilized businesses and other allies to defend these important policies. I think these attacks on something as popular as clean energy is also having an impact on ALEC itself, with many corporations deciding to leave ALEC because of the controversy surrounding the organization.

In regards to ALEC’s energy work, it’s no surprise that they are launching the next attack on clean energy policies. ALEC is a front group representing major fossil fuel interests, that see the growth of the clean energy industry as a long-term competitive threat.

Fossil Fuel Interests Continue Attacks on Clean Energy Policies

This response was originally posted at National Journal’s Energy Insiders blog, which asked energy experts this week, “How Bright Is Renewable Energy’s Future?”

The outlook for clean energy remains strong because smart investments like state Renewable Portfolio Standards (RPS) are combining with technological innovation to produce tremendous growth for the industry and tens of thousands of good-paying American jobs. These policies have successfully stood up to forceful attacks from entrenched fossil fuel interests in more than a dozen states in the past year. Washington should take note that the public supports and wants more energy from renewable sources.

At the state level, fossil fuel interests have worked through the American Legislative Exchange Council (ALEC) to weaken or eliminate RPS, because the clean energy industry poses a competitive threat to their market share. State renewable energy standards are projected to add enough new renewable power capacity by 2025 to power 47 million homes.

So, it’s no surprise that fossil fuel interests like American Electric Power, Peabody Coal, ExxonMobil and others are working to rollback renewable energy laws. These corporations that sell electricity produced from coal and natural gas are in direct competition with electricity generated from clean energy sources. This year, ALEC members and fossil fuel-funded front groups worked to rollback RPS laws in at least 13 states. But, a bipartisan coalition of business leaders, farmers and clean energy advocates stopped them in their tracks. Of all the bills proposed by ALEC members to weaken or eliminate RPS, 0 out of 13 passed, including in key target states like Kansas, Missouri and North Carolina.

Despite failing completely in 2013, ALEC’s energy task force met last week to propose new model bills that would effectively gut RPS laws by allowing large, existing hydro and landfill gas and other electricity sources from out-of-state to count towards the Renewable Portfolio Standards. The Market-Power Renewables Act and the Renewable Energy Credit Act would let utilities meet the clean energy standards by purchasing credits from out-of-state companies instead of generating or buying their own clean energy. In effect, the new model bills would eliminate incentives for in-state clean energy investment that are creating jobs and economic opportunities. Since their inception 10 years ago, RPS laws have leveraged over $100 billion in private sector investment in clean energy in 29 states.

ALEC and fossil fuel-front groups are lobbying our state representatives and spreading disinformation behind closed doors to attack pro-clean energy laws. With energy policy mostly stalled at the federal level, fossil fuel-funded attacks on the state level will continue and likely ramp up in the future, posing a major threat to the clean energy industry and the policies that support its growth.

Hickenlooper’s Fifth Misdeed: Recording a misleading radio ad for oil & gas lobbyists

In 2012, Gov. John Hickenlooper recorded a misleading radio ad paid for by the Colorado Oil & Gas Association. In the ad, the governor parses his words to make the claim that Colorado has not had a single instance of drilling and fracking contaminating groundwater, since 2008.

“In 2008, Colorado passed tough oil and gas rules. Since then, we have not had once instance of groundwater contamination associated with drilling and hydraulic fracturing.” – Gov. John Hickenlooper

The records show that Gov. Hickenlooper’s claim is a nice, industry-friendly talking point. But, it’s entirely misleading when it comes to the facts about spills in the Centennial State.

A review of the Colorado Oil and Gas Information System shows that approximately 20 percent of all spills in 2012 resulted in water contamination; 22 of those spills impacted surface water, while 63 impacted groundwater. Fifty-seven percent of spills during the year occurred within 1,500 feet of surface water, and 28 percent of the spills occurred within 500 feet of surface water. Thirty-seven percent of spills – 147 of 402 – occurred less than 50 feet from the shallowest ground water, eight percent occurred between 50 and 100 feet from groundwater, and 9 percent occurred more than 100 feet from groundwater.

In June of this year, Bruce Finley at the Denver Post reported that, according to Colorado Oil and Gas Commission records, 179 oil and gas industry spills occurred in the state, just during the first half of 2013. In 26 of those spills, groundwater was contaminated, and 15 of them directly polluted ponds and creeks.

In one of the highest profile spills, people living near Parachute Creek learned in March that an ongoing hydrocarbon spill near Williams Midstream’s Parachute Gas Plant dumped more than 10,000 gallons of hydrocarbons into the ground.

Today, the Parachute Creek spill has been ongoing for more than six months, and testing in July shows that levels of benzene – a carcinogen – are elevated, again. Parachute Creek is a tributary to the Colorado River, a main water source for the region, and the benzene levels in the creek exceed state water quality standards.

In a second well-known spill that occurred in June, WPX Energy reported the release of 2,100 gallons of water that had been polluted by the drilling and fracking process. The spill occurred two miles south of the Colorado River, and most of the contaminated water was absorbed into the soil.

When Gov. Hickenlooper plays word games, like he did in COGA’s radio ad, he’s following industry’s lead. They like to parse the term fracking and then claim it’s never hurt water supplies. This is the sort of wordplay usually heard from teenagers explaining why they didn’t actually break curfew. The entire drilling and fracking process contaminates water – groundwater and otherwise – removing millions of gallons from the water cycle, in addition to what it pollutes on the surface.

Gov. Hickenlooper is being dangerously dishonest with Coloradoans when he says that fracking has never contaminated groundwater. He needs to stop prioritizing oil and gas companies over the safety of the people who elected him.

This is the fifth installment in our blog series “Hickenlooper’s Misdeeds” which shines a spotlight on how Colorado Gov. John Hickenlooper has put the interests of oil and gas companies ahead of the health of Colorado families and local communities.

After Fossil Fuel Front Group Attacks on Clean Energy Fail, New Model Bill Emerges to Weaken RPS Laws

ALECFossilFuelFundersMembers of the American Legislative Exchange Council (ALEC), including fossil fuel corporations and front groups, will meet in Chicago this week to discuss their next round of attacks on clean energy policies. The Center for Media and Democracy (CMD), The Checks & Balances Project (C&BP) and Greenpeace released ALEC’s confidential model bills and agenda ahead of their Annual Meeting taking place in Chicago, that include a new anti-clean energy model bill, “The Market-Power Renewables Act.”

 “A little sunlight is a powerful force for good. ALEC is trying every trick in the book to keep the agenda of their upcoming meetings secret,” said Nick Surgey of The Center for Media and Democracy. “They are even claiming every state’s public record laws don’t apply to them. This is preposterous. The ALEC documents that CMD obtained show that ALEC is continuing to scheme on behalf of fossil fuel corporations, working together to undermine state’s efforts to promote renewable energy production.”

 “The Market-Power Renewables Act” will likely serve as the model for another round of attacks on state Renewable Portfolio Standards (RPS) in 2014 following ALEC’s failure to weaken or eliminate clean energy policies this year. The new bill would significantly weaken state clean energy laws by broadening the eligible electricity sources to include existing, large hydroelectric power plants, biomass, biogas and other sources of electricity.

 “Fossil fuel-backed efforts to rollback clean energy laws in states across the country have failed, including in at least three critical battleground states,” said Gabe Elsner, Director of C&BP. “It’s no surprise that ALEC is pushing a new model bill that would eliminate incentives for in-state investments in clean energy. These policies are boosting investment in the clean energy industry and creating jobs, which poses a major threat to fossil fuel interests.”

Despite a robust lobbying effort from fossil fuel corporations and fossil fuel-funded front groups, ALEC and its allies lost in the critical battleground states of Kansas, North Carolina and Missouri. Bipartisan majorities defeated ALEC’s model legislation this year, after ALEC legislators in at least 13 states sponsored or co-sponsored legislation to weaken or eliminate RPS laws.

But despite complete failure in 2013, ALEC’s Energy, Environment and Agriculture Task Force Director Todd Wynn indicated that attacks on clean energy laws would resume in 2014.

 “Fossil fuel-funded front groups connected to the Koch-funded State Policy Network and ALEC advocated to repeal or weaken RPS laws in at least 14 states,” said Connor Gibson of Greenpeace. “Many of these front groups published flawed economicreports written by the fossil fuel-funded Beacon Hill Institute to inflate the cost of RPS and ignore the economic benefits of the pro-clean energy laws.”

Hickenlooper’s Misdeed #4 – Opposing local efforts to protect residents from oil & gas drilling pollution

Gov. John Hickenlooper continues to oppose local efforts to protect residents from oil and gas drilling pollution, going so far as to sue local governments and taxpayers.

In his most recent action, the Hickenlooper-appointed Colorado Oil and Gas Conservation Commission openly joined the Colorado Oil and Gas Association, an industry lobby-group headed-up by CEO Tisha Schuller, in the administration’s second lawsuit against the city of Longmont.

As drilling operations encroach more and more on suburban and urban residential neighborhoods, Colorado communities have taken steps to protect residents while the Hickenlooper administration has actively opposed stronger health and safety protections.

In a February interview for CBS affiliate 4 News, Gov. Hickenlooper said that he would, “have to” sue every city and county that passes a fracking ban.

However, local elected officials aren’t taking the governor’s attacks lying down. In June, after Gov. Hickenlooper helped kill bills in the legislature to improve drilling and fracking regulations, 100 current and former local electeds signed a letter to Gov. Hickenlooper that read, “We would like to work with you in crafting an improved approach to addressing oil and gas development in Colorado.”

The letter went on to read, “We are concerned that the State’s positions do not adequately address the growing outcry from our citizens who are concerned about the health and safety of their families, the livability of neighborhoods, and the long-term economic vitality of our communities.”

As far as we know, that meeting hasn’t happened. As a former mayor of the City of Denver, one would think Gov. Hickenlooper would support local control and the right of municipalities to protect residents from dangerous oil and gas operations.

Ironically, he recently admitted that “oil and gas is an industrial process that none of us want in our backyard.”

As long as he insists on making oil and gas companies a priority over the health of Colorado families, he should expect local officials and residents to get involved. The least he could do is stop wasting taxpayer money on lawsuits fighting communities from doing the job he’s failed to do, protect Colorado.

This is the fourth installment in our blog series “Hickenlooper’s Misdeeds,” which shines a spotlight on how Colorado Gov. John Hickenlooper has put the interests of oil and gas companies ahead of the health of Colorado families and local communities.

Media shines a light on Colorado BLM leasing plans

News stories last week show that BLM Colorado State Director Helen Hankins is up to her old tricks. According to stories in E&E News’ Energywire, the Durango Herald, and the Denver Business Journal, Dir. Hankins is following her consistent pattern of offering to auction off controversial land for oil and gas, even after major public outcry. This time, Dir. Hankins’ plans to offer more than 10,000 acres near Mesa Verde National Park – worsening air pollution problems the park is already experiencing from existing nearby drilling operations and coal-fired power plants.

It’s worth noting that bringing these oil and gas proposals back puts Dir. Hankins in direct conflict with the balanced approach to public land use that Interior Sec. Sally Jewell spent her weekend endorsing to Western governors.

You may remember that in early 2013, Dir. Hankins deferred the Mesa Verde parcels after the National Park Service, landowners, and community groups protested the threat posed to the park from drilling pollution. Her reversal demonstrates why Sec. Jewell should rein in the Colorado BLM office and ensure that Dir. Hankins is using innovative 2010 oil and gas leasing reforms such as “Master Leasing Plans” which allow a more balanced approach to energy development and look at on-the-ground impacts, including threats to air quality and tourism and recreation. Instead, Dir. Hankins continues ignore the balanced approach Westerners want and plays her part as the oil and gas industry’s real estate agent.

In the Durango Herald, Emery Cowan reported that the La Plata County Commissioners sent a letter to Dir. Hankins asking her to implement the Obama administration’s oil and gas leasing reforms.

County asks for delay in gas and oil lease

“However, by making the decision to lease (the La Plata County parcels in November), the BLM appears to be shutting the door on a (master plan) and a smart approach to protect the treasures that are so important to our local community and economy,” the letter said.

Scott Streater, writing for E&E News, noted that former park rangers weighed in on the original lease sale with concerns of how oil and gas leasing would affect one of the nation’s most iconic parks, Mesa Verde National Park.

BLM to put deferred parcels near Colo. national park back on the block

Among those that protested against leasing the parcels was the Coalition of National Park Service Retirees, which wrote a letter in February to Salazar complaining that development of the eight parcels “could further impair the already degraded air quality at Mesa Verde, harm important scenic values within the surrounding landscape and negatively affect the local economy, which depends greatly on the national park’s protected status.”

Writing in the Denver Business Journal, Cathy Proctor noted that Mesa Verde attracts more than half a million visitors annually.

Denver Business Journal: Feds to re-offer oil and gas leases near Mesa Verde National Park

The federal Bureau of Land Management is moving forward with a controversial plan to offer about 12,000 acres of mineral rights in southwest Colorado for oil and gas drilling at its November auction — including parcels near the entrance to Mesa Verde National Park.

As public outcry continues to grow, we’ll be watching to see if Dir. Hankins is allowed to continue making the Administration’s reforms into a broken promise for Western communities.

New survey proves Westerners want conservation on equal ground with drilling

Today, the Center for American Progress (CAP) announced new public opinion research that illustrates the stark gap between Washington’s public equal ground logoland use priorities – heavily weighted toward pro-development policies – and what Westerners believe is an appropriate balance between oil and gas drilling and protecting treasured landscapes for future generations.

This new research clearly shows a bipartisan majority of Western voters are more interested in preserving land for recreation and the enjoyment of future generations than in using it for oil and gas drilling. From CAP’s press release:

“When it comes to public lands, oil and gas drilling is not popular (30%); instead, Western voters across party lines are most concerned with preserving access to recreation opportunities (63%) and permanently protecting wilderness, parks, and open spaces for future generations (65%).”

As CAP points out, this research confirms a severe lack of citizen accountability from our government.

  • On one hand, we have the Obama administration, which has leased more than 6.3 million acres of public land to oil and gas companies for drilling –  more than two and a half times as much as it has permanently protected for future generations;
  • And on the other, a Congress that was the first since World War II to not protect a single new acre of public land as wilderness, national park, monument, or wildlife refuge – despite the opposing sentiments of their own constituents.

Read the full report.

The launch of the “Equal Ground” campaign also makes good sense in that it will push Congress and the Obama Administration to align their priorities for how we use public lands with the obvious expectations of communities across the West that rely on national parks, wildlife refuges and other open spaces to attract high-paying businesses, entrepreneurs and visitors to come to enjoy world-class recreation resources just as much as they rely on energy development – done responsibly, in appropriate places.

One way the Obama administration could start achieving the balance Westerners expect from federal policymakers is to implement its own 2010 leasing reform directives, meant to drive our local economies with a real balance between protecting public lands to support and attract high-wage businesses in the West, and using them to produce energy. These reforms give federal officials crucial tools to look at the landscape before the leasing phase, and plan out the right places to drill and the right areas to leave alone because they bring major economic benefits to the community.

But in Colorado, federal bureaucrats have failed to implement these new directives – turning the President’s balanced reforms into a broken promise for Western communities.

As John Podesta rightfully said today:

“This is a case where Washington’s policies and rhetoric are still locked in a drilling-first mindset, but Westerners want the protection of public lands to be put on equal ground. Voters do not see conservation and development of public lands as an either-or choice; instead, they want to see expanded protections for public lands—including new parks, wilderness, and monuments—as part of a responsible and comprehensive energy strategy.”

The Equal Ground campaign is supported by a variety of individuals and organizations, including The Center for American Progress, Conservation Lands Foundation, The Wilderness Society, and The Center for Western Priorities.

For House Republicans, the season of oil and gas giveaways has begun

As reported by Politico’s Andrew Restuccia, Tuesday, House Republicans will spend the summer trying to breathe new life into tired ideas filled with industry giveaways. It’s no wonder given these politicians receive huge contributions from the oil and gas industry. Ironically, these “conservatives” want more mandates and quotas for oil companies while also cutting common sense protections for our air and water.

What Congress should focus its energy on – and what people in the West support – is balance between conservation and energy development. Instead of handouts to oil companies, our leaders in Washington should promote a diverse and thriving economy that supports main street businesses, farming and ranching, tourism, and outdoor recreation.

GOP House leadership has already said it will move the same failed giveaways it tried to push through last year, and the year before that. The problem they’re already running into is that they’ve already tried – and failed – to dupe Americans into thinking these handouts are anything else. Even a Republican energy adviser quoted in Restuccia’s story said, “It’s probably going to look a lot like it’s looked in the last four or five years.”

Westerners want more out of their elected officials than repeated political plays and messaging bills for the oil and gas industry. They want a real balance between protecting the public lands that support and attract high-wage businesses and using them to produce American-made energy.

Here’s a quick preview of the rhetoric we can expect to hear from House Republicans this summer, and the facts they will ignore:

The economy

numbers_graphicShot: Failure to open more federal lands to drilling will hurt job creation and economic growth in Western communities.

Chaser: Western states have grown out of the boom and bust cycle that comes with relying solely on energy development. Protecting as much public land as we lease will further build out the outdoor recreation industry, which already accounts for $64 billion in annual spending, 6 million jobs and nearly $80 billion in local, state and federal taxes.

Price at the pump

Shot: These bills are an important step toward bringing down gasoline prices.

Chaser: In 2012, an Associated Press study showed that oil production has no effect on gas prices. Meanwhile, a Goldman Sachs analysis found that Wall Street speculation was adding more than $23 to the price of crude, or as much as $0.56 per gallon at the pump.

Drilling on private lands

Shot: Increased pressure to develop on private lands is just one result of the slowdown of public lands energy development by this administration .

Chaser: 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, not public, lands. The location of these resources – not safeguards to protect air quality and water supplies – 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

Permitting delays

Shot: Regulatory hurdles, long delays, and policies that keep federal lands under lock-and-key have become all too common.

Chaser: 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

Permits

Shot: The Obama administration is playing fast and loose with drilling permit pledges.

Chaser: 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

Idle lands

Shot: President Obama and his Administration have actively blocked, hindered and delayed American energy production.

Chaser: 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 facts are not on House Republicans’ side, and neither is public opinion. A recent poll shows 9 out of 10 Westerners agree that national parks, forests, monuments and wildlife areas are an essential part of the economy. Seventy-four percent believe they help attract high quality employers and good jobs to western states.

It’s time we put conserving our treasured public lands back on equal ground with leasing them for oil and gas drilling. If oil- and gas-funded politicians continue to try and resurrect these industry giveaways, they’re just showing where their priorities lie – with the companies that fund them rather than the people they represent.

State Department Inspector General Probing Keystone XL Contractor’s Conflicts of Interest

In yet another investigation into the Obama Administration’s activities, the State Department Inspector General is probing the conflicts of interest surrounding the contractor that performed the Keystone XL review,.

ERMProposalThe American public was supposed to get an honest look at the impacts of the Keystone XL pipeline. Instead, Environmental Resources Management (ERM), a fossil fuel contractor, hid its ties from the State Department so they could green light the project on behalf of its oil company clients.

Hiring an oil company contractor to review an oil pipeline that its clients have a financial interest in should be illegal – and it is. The Federal Government has strict laws to avoid conflicts of interest and prevent the hiring of contractors who cannot provide unbiased services.

Unredacted documents from the contractor’s proposal (revealed by Mother Jones) show that the company had worked for TransCanada, ExxonMobil and other fossil fuel companies that have a stake in the Canadian Tar Sands.

But, ERM misled the State Department at least twice in its proposal (see C&BP’s original post on ERM’s conflicts of interest)– which may have led to its selection by the State Department to review the Keystone XL pipeline.

OCI Question 6

First, ERM answered “No” to the question “Within the past three years, have you (or your organization) had a direct or indirect relationship (financial, organizational, contractual or otherwise) with any business entity that could be affected in any way by the proposed work?“ ERM appears to have added to the Yes/No questionnaire that, “ERM has no existing contract or working relationship with TransCanada.” Regardless of the addendum, the oil company contractor misled the State Department by checking “No” to the specific question above. Despite the fact that unredacted documents show that ERM worked for TransCanada and other fossil fuel companies with a stake in Keystone XL pipeline in the three years prior to its proposal.

Second, ERM claimed it was not an energy interest. The State Department question defines an energy interest in part as any company or person engaged in research related to energy development. Yet, ERM has worked for all of the top five oil companies and dozens of other fossil fuel companies. In other words, ERM is clearly an energy interest.

How can we trust ERM to perform an honest review of the Keystone XL pipeline, if it can’t answer a yes/no question honestly?

These misleading statements should have been flagged by the State Department and the contractor should not have been able to perform the review because of these seeming conflicts of interest.

ERMLetterBecause of the issues above, Checks & Balances Project (C&BP) and 11 environmental, faith-based and public interest organizations sent a letter  [.PDF] on April 8, 2013, calling on Secretary of State John Kerry and the State Department Deputy Inspector General Harold Geisel to investigate two things: first, whether ERM hid conflicts of interest which might have excluded it from performing the Keystone XL environmental assessment and second, how State Department officials failed to flag inconsistencies in ERM’s proposal.

A few weeks later, C&BP received a voicemail from a Special Agent at the State Department’s Office of Inspector General (OIG):

Hello Mr. Elsner, my name is Special Agent Pedro Colon from the State Department’s Office of Inspector General.  I’m calling to inform you that we have received your request and are reviewing the matter.  If you have any questions please contact me at 703-284-2688.

On May 7, 2013, I called Special Agent Colon but he was unable to speak at the time. I followed up the next day and spoke with the Special Agent via phone regarding the request for an investigation. I asked a few basic questions about the status of the complaint and asked specifically if C&BP would be informed should the complaint be fully investigated by the Office of Inspector General (OIG). Special Agent Colon informed me that he could not speak to any of the questions and referred us to other staff in the OIG.

On May 9, 2013, I received an email from the OIG General Counsel saying, “that the complaint was being processed per the OIG hotline procedures and is under review.” (See the entire email correspondence here [.PDF])

I then asked the OIG General Counsel the same question he asked Mr. Colon:

If the hotline is moved out of the review process and onto the next step (an investigation?), will I be notified?

The OIG  replied via email saying that the OIG Office of Investigations will not comment if it is engaged in an investigation.

The correspondence between C&BP and the OIG indicates that there is a probe into the Keystone XL review conflicts of interest.

The public was supposed to get an honest look at the impacts of the Keystone XL pipeline. Instead, ERM, an oil company contractor, misled the State Department, in what appears to be an attempt to green light the project on behalf of oil industry clients.

The American Public needs a full investigation into the conflicts of interest and misleading statements of the Keystone XL review contractor, Environmental Resources Management.

Secretary Kerry needs to stop the Keystone XL process until the Inspector General completes a full investigation of these conflicts of interest and the State Department has an unbiased review of Keystone XL’s impact.

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