House Natural Resources Committee takes yet another action promoting same oil and gas giveaways, mandates leasing quotas for oil companies

The U.S. House Natural Resources Committee meets on Wednesday to mark up a slew of bills, and sandwiched in among them are a familiar series of giveaways to the multibillion-dollar oil and gas industry. In fact, the legislation would mandate leasing quotas for oil companies and increase speculation on public lands.

“The oil and gas giveaway bills being considered in the House today mandate leasing quotas, a policy that is dramatically out of step with public opinion in the West,” said Center for Western Priorities Policy Director Greg Zimmerman. “Westerners acknowledge there is room for energy development, but polling shows that recreation and conservation are their highest priorities for public lands. Moreover, 90 percent of western voters say protected lands were vital to their local economies.”

Wednesday’s hearing continues the determination by House Republicans, over the last five years, to put the interests of oil and gas companies ahead of conservation and the future of America’s public lands. This, despite the fact that a majority of Westerners in oil and gas producing states want to see a balance struck between energy development and protection of public lands.

ADDITIONAL BACKGROUND

About H.R. 1965 – Sponsor Rep. Doug Lamborn (R-Colo.) 

  • The Lamborn bill blocks the public from participating in leasing decisions by creating “entrance fees” of up to $5,000 to join the conversation. It also mandates leasing quotas for oil and gas companies, encourages speculation, and bars the public, local officials and others from protesting potentially dangerous leasing decisions.
  • The Lamborn bill prevents the Bureau of Land Management (BLM) from protecting water, air and land from the impacts of drilling. It also rolls back the Obama Administration’s common sense approach to the failed “rock that burns,” oil shale, and in doing so endangers western water supplies and local economies.
  • The Lamborn bill continues to promote oil shale speculation despite the fact a Congressional Budget Office analysis of his proposal during the previous Congress found that opening up public lands to oil shale speculation would have zero effect on revenue.

About H.R. 1394 – Sponsored by Rep. Scott Tipton (R-Colo.)

Attitudes of Westerns about energy development and conservation (Hart Research)

  • About two in three (65%) voters say that permanently protecting and conserving public lands for future generations is very important to them personally, and another 63% say that ensuring access to public lands for recreation activities is personally important to them (as indicated by a rating of “9” or “10” on a zero-to-10 scale). By comparison, only half as many voters (30%) say the same about making sure oil and gas resources on public lands are available for development.
  • Voters reject the idea that there must be a single-minded, “either/or” approach to public lands. When explicitly given the opportunity to choose a third option, a majority (55%) instead say the government should put conservation on equal ground with drilling for oil and gas. This is the case among independents (59%), Republicans (64%), hunters and anglers (57%), and even among people who rate oil and gas as very important to them personally (57%). Democrats, in contrast, are divided between putting drilling and conservation on equal ground (44%) and focusing more on conservation and protection (47%).

# # #

Industry’s new leaf?

Maybe the oil and gas lobby’s latest efforts should strike hope in the hearts of Coloradans. Are they turning over a new leaf and willing to balance energy development with conservation interests? Maybe … maybe not.

From Colorado Oil and Gas Association Director Tisha Schuller’scharm offensive” to Western Energy Alliance President Tim Wigely’spoll for the people,” oil and gas lobbyists are in high gear trying to stop a public relations mess that industry themselves created.

Clearly the effort is garnering them good press like Schuller reinventing herself as the environmentalist or Mr. Wigley taking a tired poll they rehash nearly every year and parading it as proof they want to know what Coloradans think.

Mr. Wigley makes broad claims about the support for energy development using his national poll, but he fails to take a look at what people believe in his own backyard. If industry really wants to know what Coloradans think, they don’t have too far to go far to find out. They want the health of their communities, our air, and our national parks on equal ground with energy development.

A recent poll of westerners by Hart Research Associates found that nearly two-thirds of voters (65 percent) believe that “permanently protecting and conserving public lands for future generations is very important to them personally” while less than a third (30 percent) feel that “making sure oil and gas resources on public lands are available for development” is important.

Just this week, a delegation from the North Fork Valley traveled to Washington, DC calling for balance. The group included a winery owner, local official, and agricultural representative. After officials like Colorado BLM Dir. Helen Hankins and industry failed to listen to the community, they took matters into their own hand and drafted a citizen proposal which allows for responsible energy development while protecting the booming agri-tourism economy of the North Fork.

This isn’t the first time that there have been questions about Dir. Hankins continually listening to the oil and gas industry instead of local communities and conservation interests. Industry proposals to drill near Mesa Verde National Park and place a drill rig near the visitor center of Dinosaur National Monument have faced severe backlash.

Yesterday, Boulder County Councilors decided to put a three-year oil and gas fracking ban on the ballot to give its residents an opportunity to speak and industry to listen. It’s no wonder so many local communities along the Front Range are proposing hard-lines like that after industry failed to “listen” to Coloradans and instead sided with Gov. John Hickenlooper to kill numerous bills which would have protected our water, our air, and our health.

Ms. Schuller and Mr. Wigley have one thing right. A rational conversation about oil and gas drilling is long overdue. We must put our communities, our air, and our national parks on equal ground with energy development.

It’s time for the oil and gas lobby to turn over that leaf.

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.

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

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.

Group’s new oil shale report contains wildly inaccurate claims

The Institute for Energy Research (IER), recently posted a blog about oil shale that doesn’t have its facts straight.

The IER blog falsely claims that the federal government put oil shale resources ‘under lock and key’. Oil shale companies have been awarded billions in taxpayer-funded subsidies and received research, development, and demonstration (RD&D) leases on publicly owned lands that don’t require the payment of bonuses, rents, or royalties.

Despite more than a century of failed oil shale projects and billions of dollars risked, taxpayers are still subsidizing oil shale research and development. Currently, there are seven such RD&D leases being pursued in Colorado and Utah.  The companies include: Shell, American Shale Oil (AMSO), Enefit, ExxonMobil, and Natural Soda Holdings.

Chevron also had an RD&D holding, but abandoned it last February in order to focus on viable energy sources – hardly the first oil shale experiment to go bust. On Black Sunday, Exxon closed its Colony oil shale project, which put more than 2,000 out of work and devastated the economy of Colorado’s western slope for years.

kivioli_tuhamaed

Arial photo of a pile of oil shale ‘ash’ in Estonia. Source: EcoCrete Project.

In their blog, IER also highlights Estonia, considered the world leader in oil shale, as the prime example of successful oil shale development – but that’s not factual either. Oil shale isn’t economically viable in Estonia, has caused significant water, air and land pollution, and is highly controversial.

The head of Estonia’s biggest oil shale company, Eestia Energia – known as Enefit in the U.S. – has admitted that oil shale is not profitable without large taxpayer subsidies. Underscoring this point was Moody’s recent move downgrading Enefit’s credit rating to negative, over concerns that they can’t make oil shale profitable.

In addition, oil shale is a dirty, polluting fossil fuel that’s responsible for 80 percent of all of Estonia’s pollution.  Enefit’s track record includes contaminated groundwater, creating 600-foot high mountains of oil shale waste that spontaneously ignite, and causing the emission of “lots of carbon dioxide.”

IER’s blog also boasts that there are huge oil shale deposits in the U.S. But these projections are irrelevant because oil shale isn’t a viable energy source and fails the basic economic test. In other words, the return on oil shale doesn’t outweigh the investment. The amount of energy and water that it takes to superheat, mine and process oil shale – which is actually fossilized algae – is more than the energy that oil shale provides. If you need more evidence just look to the billion dollar oil and gas industry, which has almost limitless resources, and has 100 plus years of failed oil shale experiments to show for their efforts.

The IER can spin oil shale all day, but it won’t change the cold hard fact that oil shale isn’t ready for prime time.

Oil & gas public lands management 101: How to put our farms, water, and national parks at risk

Bureau of Land Management (BLM) Colorado State Director Helen Hankins has developed a pattern of offering controversial drilling plans, which when met with widespread public outcry are temporarily halted, only to be re-offered after the furor has died down.

Colorado BLM Drilling 101

In 2011 Dir. Hankins proposed oil and gas leasing in Park County at South Park, home to several large reservoirs for metro Denver, Colorado’s drinking water, serving over two million people.

When the City of Aurora raised serious concerns about the sale, including a lease parcel located within ¼ mile of the high water mark of a city reservoir, Hankins temporarily halted the lease plan. Unfortunately, in 2012, Hankins revived plans to lease South Park for oil and gas drilling. True to form, Hankins temporarily halted the oil and gas lease plans again after local elected officials, sportsmen and others raised significant concerns about the plans, including impacts to water quality, wildlife habitat and tourism.

In early 2012, Colorado BLM proposed drilling next to vineyards, orchards, organic farms and a dairy in the North Fork Valley. When local farmers, ranchers, businesses and residents overwhelmingly opposed the plan, Hankins, again, temporarily halted BLM’s plans to lease the area for oil and gas drilling.

Fast forward to the end of 2012, and Hankins – predictably – offered a similar plan that still threatened the Valley’s local economy and water supplies, and even included leasing land for oil and gas drilling near a public school. Residents, local business owners and others once again opposed the controversial plan, and widely criticized Hankins for basing her plan on outdated analysis and failing to pursue a balanced approach to energy development.  In early February 2013, Hankins again temporarily halted drilling plans in North Fork Valley.

Name this tune: In late 2012, Colorado BLM announced plans to lease land for oil and gas drilling next to Dinosaur National Monument’s visitor center and along its southern entrance, as well as near Mesa Verde National Park. BLM’s proposal would mean that visitors could see drill rigs along with 149 million year old fossils, and create more air quality problems for Mesa Verde National Park – which is already beset with pollution problems. This time, the former Superintendent of Dinosaur National Monument, National Parks Service, and La Plata County joined the chorus of locals who raised serious concerns the drilling proposals. And, once again, Hankins halted the lease plans.

Unfortunately, since then, statements from Dir. Hankins’ staff indicate that this stoppage is temporary. In March, the local Colorado BLM assistant field manager said that the drilling leases near Mesa Verde National Park could be back on the auction block as early as this summer.

Dir. Hankins needs to end this contentious cycle of offering controversial oil and gas drilling leases, deferring them when locals rise up, and then trying to drive them back through later when protests have died down.

Dir. Hankins needs to adopt a new curriculum. She needs a smart-from-the-start approach that addresses the concerns of local residents, business owners, and the many industries that drive Colorado’s economy. She needs to adopt a balanced approach that protects the state’s drinking water, farms and national parks.

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