fred steen

How ALEC and Exxon Secretly Fracked North Carolina

  • Posted on: 17 July 2013
  • By: Connor Gibson

Former EPA Administrator Michael Leavitt speaks at an ALEC event sponsored by ExxonMobil, among other dirty energy interests and Fortune 500 companies. (AP Photo/Elaine Thompson through Bill Moyers.com)

Remember that controversial law last year, legalizing fracking in North Carolina after being vetoed by the state's governor? The law bears tell-tale signs of being written by the American Legislative Exchange Council (ALEC), a corporate front group with ties to the fracking industry.

Like the Exxon-backed fracking loopholes in Ohio and numerous other states, the new North Carolina law contains the same "trade secrets" provisions that ensure the public will not have the right to know which chemicals gas frackers are pumping underground to retrieve shale oil and gas. The "trade secrets" provisions are key to ALEC's model bill in order to allow Exxon, Shell, Duke Energy and other ALEC member companies to more quickly extract, pipe and burn gas without having to bother with pesky transparency laws.

Here's a list of NC ALEC legislators who co-sponsored the bill legalizing fracking: S820 or HB1052 -- the so-called "Clean Energy and Economic Security Act"

  • Sen. Tom Apodaca
  • Sen. David Rouzer -- member of ALEC's Energy, Environment and Agriculture task force, which created the frack fluid disclosure loophole bill with internal sponsorship by ExxonMobil.
  • Rep. Mike Hager
  • Rep. Tim Moffitt
  • Rep. Fred Steen -- ALEC's State Chairman in NC

Rep. Fred Steen co-sponsored the House version of the so-called "Clean Energy and Economic Security Act." Steen was ALEC's State Chair in North Carolina, and his job is to ensure ALEC models are introduced and, ideally for ALEC, passed. Rep. Steen was the only state legislator serving as State Chair in North Carolina (other states often have multiple legislators serving as co-chairs), and according to ALEC's tax forms, his position implies the following responsibilities (emphasis mine):

State Chairmen duties shall include recruiting new members, working to ensure introduction of model legislation, suggesting task force membership, establishing state steering committees, planning issue events, and working with the Private Enterprise State Chairman to raise and oversee expenditures of legislative 'scholarship' funds.

As ALEC's state chairman in NC at the time of this vote, Rep. Steen appointed a "Private Sector Co-Chairman" to help oversee ALEC activity in NC. In this case, Rep. Steen worked with North Dakota lobbyist Joel Gilbertson, who represents clients like AIG, PhRMA, and Crop Life America (a front group for pesticide and chemical fertilizer interests). Rep. Steen was listed on ALEC's website as its State Chairman since at least late 2008, suggesting that he has been re-appointed to that position at least once--a term lasts two years.

Ironically, co-sponsoring Rep. Mike Hager has been asked about his role in ALEC before, telling the Charlotte Business Journal that, "I'm not a big fan of model legislation." Apparently, keeping toxic chemicals secret from constituents is something Rep. Hager is a big fan of, in which case ALEC models are pretty useful. Rep. Hager has received $15,500 from oil, gas and electric utility interests in this election cycle, on top of $3,250 from his first successful election bid in 2010. One of the utilities donating to Rep. Hager is Duke Energy, his former employer, which operates natural gas pipelines that deliver to over 500,000 customers and is expanding gas generation at its power plants.

North Carolina's fracking loophole law has drawn attention from around the country, including a statement of support from Republican presidential candidate Mitt Romney. The new NC law barely overturned a veto by former Gov. Beverly Perdue, in a heartbreaking twist involving one Democratic legislator being bought out at the last minute and another accidentally voting in favor of the bill and refused the opportunity to correct her vote, something that is commonly acceptable when such a mistake is made. The Charlotte Observer explains:

Rep. Becky Carney, a Democrat from Mecklenburg County who opposes fracking, pushed the wrong button and accidentally voted with Republicans to override the veto. A maneuver by Wake County Republican Paul “Skip” Stam prevented her from changing her vote, giving the GOP a historic one-vote margin of victory. "It was a huge mistake,” Carney said afterward. “I take full responsibility.” Democrats denounced Stam’s quick parliamentary maneuver as a dirty trick that resulted in the passage of a landmark energy overhaul that could create a natural gas production industry in the state. [...] Carney said it was the first time in her 10-year legislative career that she pushed the wrong button on a vote. Mistaken votes are not uncommon and letting lawmakers change their votes is routine practice in the state legislature.

This local news clip posted by the Voter's Legislative Transparency Project, which tracks ALEC activity in North Carolina, includes more on Rep. Carney's error:

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