Shell

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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US Gov't doesn't know exact Keystone XL pipeline route

  • Posted on: 8 July 2013
  • By: Connor Gibson

The U.S. government doesn't know exactly where TransCanada wants to lay pipe for the northern section of its Keystone XL tar sands pipeline, according to the results of a 14-month Freedom Of Information Act (FOIA) request to the U.S. State DepartmentIn its final answer to a FOIA request by Thomas Bachand of the Keystone Mapping Project, the State Department admitted:

Neither Cardno ENTRIX nor TransCanada ever submitted GIS information to the Department of State, nor was either corporation required to do so. The information that you request, if it exists, is therefore neither physically nor constructively under the control of the Department of State and we are therefore unable to comply with your FOIA request.

Yes, you read that right. The U.S. State Department published its draft Supplemental Environmental Impact Statement (SEIS)--supposedly an official account of the potential hazards of TransCanada's proposed pipeline on U.S. waterways, wildlife and other major considerations like global climate change--without knowing exactly where TransCanada wants to dig. Check out the full letter from State to Mr. Bachand at the Keystone Mapping Project.

Ongoing Conflicts of Interest in State Department Environmental Assessments

The State Department is already facing legitimate criticism for contracting companies with ties to TransCanada and other oil companies for its environmental impact estimates, which the Environmental Protection Agency has slammed for being "insufficient." State looked no further than oil industry contractors to run the draft SEIS--companies like Cardno ENTRIX, which calls TransCanada a "major client," and ERM Resources, a dues paying member of the American Petroleum Institute which is being investigated by the State Department's Inspector General for trying to hide its prior consulting for fossil fuel giants like ExxonMobil, BP and Shell. In fact, TransCanada chose ERM Resources to do the Keystone XL SEIS review for the State Department, and one of ERM's people working on the review was formerly employed by TransCanada. 

TransCanada has stacked the deck, wagering American waterways and private property against the promise to profit from continued extraction of dirty tar sands petroleum.

Tar Sands Pipelines Spill

The potential is too high for Keystone XL to leak just like TransCanada's existing Keystone I pipeline has repeatedly done, or rupture like ExxonMobil's Pegasus tar sands pipeline in Mayflower, Arkansas earlier this year, or Enbridge's tar sands pipeline spill in the Kalamazoo River. The southern leg of Keystone XL is already under construction, and the if the cracks, dents and other faults in the 'new' pipe are any indication, pollution from oil spills looks inevitable. Beyond being a disaster waiting to happen, KXL guarantees the continued disaster that is tar sands mining, a process that has already poisoned entire regions--and peoples' communities--in northern Alberta, Canada.

With President Obama's recently unveiled Climate Action Plan, it would be a limp gesture to approve the Keystone XL pipeline. You'd think with the State Department having its environmental analysis run by oil industry consultants, they'd listen to the oil industry's own guarantees that Keystone XL would increase demand for tar sands mining. That's bad news for our climate -- something the State Department cannot ignore if they do a reasonable review of the "unprecedented" amount of public comments on its draft SEIS on KXL.

What remains to be seen is if the State Department will be reasonable in the last leg of its review, or if it will continue letting TransCanada and Big Oil control the process to the bitter end.

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Keystone Academy: Where Legislators Learn the Etiquette of Serving Special Interests

  • Posted on: 2 July 2013
  • By: Connor Gibson

2012 ALEC Academy attendees. Photo via twitter

Written by Nick Surgey, crossposted with permission from PR Watch.

In October 2012, nine U.S. state legislators went on an industry paid trip to explore the Alberta tar sands. Publicly described as an "ALEC Academy," documents obtained by CMD show the legislators were accompanied on a chartered flight by a gaggle of oil-industry lobbyists, were served lunch by Shell Oil, dinner by the Canadian Association of Petroleum Producers, and that the expenses of the trip were paid for by TransCanada and other corporations and groups with a direct financial interest in the Alberta tar sands and the proposed Keystone XL (KXL) pipeline.

Among the nine legislators on the tour was the new ALEC national chairman, Representative John Piscopo from Connecticut, and Senator Jim Smith from Nebraska who has sponsored legislation in his state to speed up the building of the Nebraska segment of KXL. Email records obtained by CMD show that after the trip, legislators were asked by ALEC to send “thank you notes” to the lobbyists for their generosity in Alberta.

Far better than a mere "thank you," Rep. John Adams from Ohio returned from the trip and sponsored a bill given to him by a TransCanada lobbyist calling for the approval of KXL. As previously reported by CMD, similar legislation, reflecting both an ALEC “model” bill and language taken from a TransCanada set of talking points, has been introduced in seven states in 2013.

The tar sands of Alberta are estimated to be the third largest reserve of crude oil on the planet. But the process of turning the tar-like bitumen into a refined product that can be used as fuel is extremely energy intensive and highly polluting. The former NASA scientist James Hansen, warned that the extraction and use of Canadian tar sands would mean "game over" for the climate. TransCanada is the operator of the proposed KXL pipeline, which would carry the tar sands to Texas for processing and likely for exports to markets abroad.

In Private Jets and "Petroleum Club" Dinners, U.S Politicians Get the Dirt on Canadian Tar Sands

Officially, ALEC organized the Alberta tour as an "ALEC Academy." In ALEC’s description of corporate sponsorship opportunities, this type of event is described as being "an intensive, two--day program for legislators that focus on a specific area of policy." It comes with an $80,000 fee to sponsor. Unofficially however, and made clear to legislators on the trip in emails from ALEC obtained by CMD, the expenses were paid for by lobbyists from the oil-industry and by the government of Alberta. In an email sent to Ohio representative John Adams ahead of the trip, ALEC staffer Karla Jones reassured participants that all transportation, accommodation costs and meals would be paid for.

According to a copy of the trip itinerary obtained via a public records request, legislators flew into Alberta on Tuesday October 16, 2012, and were met by TransCanada lobbyists who took them on a tour of their facilities in Calgary.

TransCanada, which is a member of ALEC, sponsored ALEC’s Spring Task Force Summit in Oklahoma City in May 2013, alongside other corporations with tar sands interests including BP, Devon Energy and Koch Industries. TransCanada’s Vice President Corey Goulet presented to legislators at the conference during a session called "Embracing American Energy Opportunities."

Dinner on the first night was at the up-market Ruth’s Chris Steakhouse in downtown Calgary, paid for by American Fuel and Petrochemical Manufacturers (AFPM). The dinner included a presentation to the captive audience of lawmakers from AFPM about Low-Carbon Fuel Standards (LCFS), a mechanism designed to reduce the carbon intensity of transportation fuels. As CMD has reported recently, LCFS is considered a real threat to the tar sands industry, because it might restrict the U.S. market for fuels derived from the tar sands. AFPM, which has funded one of the other groups on the tour – the Consumer Energy Alliance (CEA) – to work to oppose LCFS legislation, would successfully sponsor an ALEC "model" bill on this issue just weeks after the trip, called "Restrictions on Participation in Low-Carbon Fuel Standards Programs."

On Wednesday morning, after breakfast at the hotel, legislators were taken to the airport where a private charted plane was waiting to fly them around a number of different tar sands operations. Accompanying the legislators and ALEC staffer Karla Jones, were lobbyists from AFPM, TransCanada, Devon Energy, CEA, Shell Oil, and the Government of Alberta. The flight was chartered by the Alberta Government, at a cost of $22,000, with the costs split evenly between them and another unknown entity.

During the day, legislators toured facilities owned by Shell – which also provided lunch – and Devon Energy, where they viewed the massive "Jackfish" tar sands projects. At these facilities, Devon utilizes Steam Assisted Gravity Drainage (SAGD), an energy intensive process that injects steam into the dirty bitumen to access otherwise inaccessible deposits too deep for mining. This process is expected to open up further areas of Alberta for tar sands extraction, including by Koch Industries subsidiary Koch Exploration Canada which has a pending permit request in Alberta to utilize SAGD.

Dinner on Wednesday night was served at the Petroleum Club, sponsored by the Canadian Association of Petroleum Producers. On the Thursday morning, just before their return flight, legislators did have a brief meeting with a representative from the Pembina Institute, an Alberta environmental group that calls for responsible exploitation of the tar sands. According to the ALEC trip itinerary, this was to "provide the opposing point of view."

Although Pembina does represent a different view from those that want completely unrestrained extraction of the tar sands, the group is not representative of those that oppose tar sands extraction. There are plenty of organizations that could have provided alternative viewpoints, particularly first nation tribes who are campaigning vigorously on this issue, but perhaps unsurprisingly they were not included. Even Pembina’s - somewhat limited - opposing voice was not wanted during the tour of the oil sands facilities, and they were not invited to the lobbyist-sponsored dinners.

ALEC as Emily Post

A month after the trip, the Director of International and Federal Relations at ALEC, Karla Jones, sent participants an email helpfully reminding them of what each industry lobbyist had paid for on the tour. CMD obtained a copy of that communication via a public records request, which included a spreadsheet containing the names, telephone numbers and mailing addresses of each of the lobbyists on the trip. The ALEC email also prompted legislators to send each of the sponsoring corporations a "thank you note."

The phenomenon of ALEC legislators sending such letters to lobbyists is something CMD has previously reported on. Ohio Rep. Adams, for example, sent at least a dozen letters to corporate lobbyists in 2010, thanking them for writing checks to the ALEC scholarship fund, which paid his and his colleagues way to an ALEC conference.

"Because of your help and others like you, the trip to ALEC was made possible for our legislators," Adams wrote to AT&T lobbyist Bob Blazer.

“Rather than sending thank you notes to their corporate lobbyist sponsors, these legislators should instead consider an apology to their constituents,” Stephen Spaulding, Staff Counsel for the good government group Common Cause told CMD. "I doubt lobbyists want thank you notes in return for bankrolling legislators' international vacations – they would rather a bright, shiny souvenir in the form of corporate-drafted legislation."

Better Than a Thank You Note, Payback in Ohio

After the trip to Alberta, Rep. Adams, the Assistant Majority Floor Leader and Ohio ALEC state chair, led the calls in Ohio for the approval of the KXL pipeline, sponsoring a bill (HCR 9) and talking publicly about the proposed pipeline. "It is of the upmost importance that we strongly urge the U.S. government to take the necessary steps towards operation of the Keystone Pipeline," Adams wrote in March 2013 while promoting his bill. Rep. Rosenberger, the other Ohio legislator on the ALEC trip to Alberta, accordingly co-sponsored the Adams bill.

According to documents CMD obtained from public record requests in Ohio, a draft bill was sent to Adams on January 23, from Steve Dimon of 21 Consulting LLC, who represents TransCanada. The bill was sent as an attachment to the Dimon email.

The email message itself simply read, "Thank you so much!"

Dimon stayed in touch with Adams' office over the proceeding months, providing his staff with further materials about Keystone XL, including a set of talking points stamped with the TransCanada logo.

By February 14, Adams had an updated draft that had been reviewed by the Ohio legislative service commission, the non-partisan body that assists legislators with drafting legislation. Adams staffer Ryan Crawford sent this language to Rob Eshenbaugh, a lobbyist with Ohio Petroleum Council, the state affiliate of the American Petroleum Institute. "Please let me know if I can be of further assistance," Crawford wrote to the lobbyist. Eshenbaugh responded with some requested changes, which Crawford then incorporated into the bill.

All this occurred prior to Adams sharing the bill with his fellow legislators, which didn't happen until February 20. Adams finally introduced his bill in the Ohio Assembly on March 9, without any public statement about his involvement with the ALEC Academy or that the source of the bill was a tar sands lobbyist.

The route of the proposed KXL pipeline takes it through Montana, South Dakota, Nebraska, Kansas, Oklahoma, and Texas. This is a long way from Ohio, but the debate over the KXL project has become a national issue. The ALEC Academy, and subsequent lobbying from the oil-industry, demonstrates that TransCanada sees value in developing a list of states supportive of the project to influence the federal debate over KXL approval.

The precise details of the ALEC tour, including the trip being part-sponsored by TransCanada, are not mentioned in Adams’ financial disclosures, which only reports his expenses as being from ALEC and the Alberta Government. Adams is not breaking the law here. This is because of the way ALEC works to fund legislator travel. Its scholarship system allows corporations to “sponsor” legislator’s expenses, which are then simply disclosed as being a payment from "ALEC" and not from the sponsoring corporations or groups. CMD documented the ALEC scholarship fund in a 2012 report released jointly with Common Cause: "How the American Legislative Exchange Council Uses Corporate-Funded “Scholarships” to Send Lawmakers on Trips with Corporate Lobbyists."

Graduates of the Keystone Academy appear to be learning a lot about how ALEC works behind the scenes to promote special interest legislation while keeping the public entirely in the dark.

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Four Oil Spills in One Week: Exxon's Arkansas Tar Sands spill one of many

  • Posted on: 9 April 2013
  • By: JesseColeman

As many people who watch the oil industry know, oil spills are not avoidable, preventable, or unlikely. From extraction to combustion, oil is a destructive and dirty business, based on sacrificing the health of environments and peoples for corporate profits.

Smoke pours from an Exxon Oil Refinery after an explosion in Baton Rouge, Louisiana in 1989

This fact was especially evident last week, when Exxon’s Pegasus pipeline spilled over 150,000 gallons of toxic tar sands crude oil into Lake Conway and adjoining neighborhoods in Mayflower, Arkansas.

Exxon's tar sands spill in Mayflower, Arkansas

However, Exxon’s Mayflower spill is not an isolated incident. In fact, there were three other significant oil spills that occurred last week.

The spills, which were the result of both train derailments and pipeline ruptures, spilled many hundreds of thousands of gallons of toxic crude oil in and around neighborhoods, marshes, and rivers.

March 26 - Train Derailment in Minnesota - 30,000 gallons of crude oil spilled

Last week's cacophony of oil industry irresponsibility began with a train derailment in Minnesota, which spilled 30,000 gallons of crude oil. The oil was from Canada which has become a top exporter of crude to the United States because of their exploitation of the tar sands in Alberta.

aerial view of the Alberta Tar Sands

In a fit of ill-timed opportunism, supporters of the Keystone XL pipeline, which would pump tar sands oil from Canada to the gulf coast, used this this spill as a justification for building the tar sands pipeline. A spokesman for North Dakota Senator John Hoeven, who has been one of the chief political proponents of the Keystone XL pipeline, had this to say:

"It should be clear that we need to move more oil by pipeline rather than by rail or truck...This is why we need the Keystone XL. Pipelines are both safe and efficient."

March, 29 - Lake Conoway, Arkansas - 156,000 gallons of tar sands crude oil spilled

In an incident that should make anyone question the "safety and efficiency" of oil pipelines, Exxon’s Pegasus Pipeline spilled 157,000 gallons of tar sands crude into Lake Conway and surrounding neighborhoods in Arkansas. Since the spill, Exxon has limited press access to the spill site, oiled animals, and even the skies above the spill area. Exxon has even claimed that Lake Conway has been unaffected by the oil spill, though Arkansas Attorney General Dustin Mcdaniel has set that particular record straight.

"Of course there's oil in Lake Conway"

Mcdaniels said.

Arkansas Pipeline Spill
Exxon's tar sands oil spills into a cove of Lake Conway, Arkansas

April, 3 - Houston, Texas - 30,000 gallons of crude oil spilled

Four days after Exxon's Pegasus pipeline ruptured and seven days after Keystone XL pipeline proponents claimed "pipelines are both safe and efficient," a Shell pipeline running through a bayou outside of Houston spilled 30,000 gallons of oil into the Texas marsh. The actual amount of oil spilled by Shell's West Columbia Pipeline is still unknown, as the cause of the leak has not been released by Shell.

 

April, 3 - White River, Ontario - 16,642 gallons of crude oil spilled

At the same time that Shell was spewing oil into the wetlands of Texas, a train derailment in White River, Ontario was leaking oil in Canada. Most people know White River as the original home of Winnie the Pooh, but it is also a major train depot for shipping crude oil. The company responsible claimed that 4 barrels of oil were spilled, though the actual number turned out to be 10 times larger, at 400 barrels. That's 16,642 gallons of toxic crude oil. Sorry Winnie.

As the oil industry proved this week, they are incapable of protecting people and the environment from their product. As Micheal Brune of Sierra Club said:

"In Ontario, the company said it spilled four barrels when it had actually spilled 400. In Arkansas, Exxon learned about the spill from a homeowner but kept pumping tar sands crude into the neighborhood for 45 minutes, and is bullying reporters who want to tell the public what's going on. In Texas, a major oil spill came to light that Shell had been denying for days. Transporting toxic crude oil -- and tar sands in particular -- is inherently dangerous, more so because oil companies care about profit, not public safety. This is why Keystone XL, at nine times the size of the Arkansas Pegasus pipeline, must never be built.”

If built, the Keystone XL pipeline will spill. Stop the Keystone XL pipeline.

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Shell's Arctic Oil Spill Gear "Crushed Like a Beer Can" In Simple Test

  • Posted on: 4 December 2012
  • By: Connor Gibson

Parody advertisement from Greenpeace's mock "Arctic Ready" website.

Written by Brendan DeMelle, crossposted from DeSmogBlog.

Royal Dutch Shell, the massive multinational oil company, badly wants to be ready to drill for oil in the Arctic Ocean next summer. This year, the company's plans to begin drilling in the treacherous seas of the Arctic were thwarted by its late start and repeated failures to get even basic oil spill response equipment into place. 

But the full extent of the company's failed attempts to test oil spill response gear was recently revealed by Seattle's NPR radio affiliate KUOW. Shell has faced repeated criticism and regulatory scrutiny over its cavalier attitude towards Arctic drilling, and the KUOW investigation makes clear why Shell is not "Arctic Ready" by a long shot.

Documents obtained by KUOW through FOIA requests indicate that Shell's oil spill response gear failed spectacularly in tests this fall in the relatively tranquil waters of Puget Sound. 

The containment dome - which Shell sought to assure federal regulators would be adequate to cap a blowout in the event of emergency at its Arctic operations - failed miserably in tests.  The dome "breached like a whale" after malfunctioning, and then sank 120 feet. When the crew of the Arctic Challenger recovered the 20-foot-tall containment dome, they found that it had "crushed like a beer can" under pressure.
 

That was the embarrassing news that emerged from documents released through FOIA from the federal Bureau of Safety and Environmental Enforcement, which required the tests of Shell's proposed oil spill response system. 


Environmentalist Todd Guiton sums up the implications of the failed tests on Shell's plans to drill in the Arctic: 


"It failed under very calm, tranquil conditions in the best time of year up here in the Pacific Northwest. If it can’t handle the best we have here, I really have my doubts it can handle even a little adversity in the Arctic."


Federal regulators are reviewing the wisdom of Shell's Arctic adventure, and are calling for more real-world testing in the Arctic Ocean to see how the oil spill response gear would stand up to extreme conditions. 

Besides the horrifying prospect of an out-of-control oil disaster in the far north, why would the Obama administration want to flirt with catastrophe in the Arctic when there is (supposedly) a huge oil boom going on in the Lower 48 anyway? If there really is such a glut of recoverable oil in unconventional shale plays via fracking, then why would the U.S. or any other nation allow Big Oil to rush into the Arctic? 

If Shell is this ill-prepared to operate critical safety equipment in the calm waters of Washington State, then they clearly have no business drilling for oil in the Arctic. 

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ALEC slips Exxon fracking loopholes into new Ohio law

  • Posted on: 31 May 2012
  • By: Connor Gibson

Wake up and smell the frack fluid! But don't ask what's in it, at least not in Ohio, cause it's still not your right to know.

Ohio is in the final stages of making an Exxon trojan horse on hydrofracking into state law, and it appears that the American Legislative Exchange Council (ALEC) connected Exxon's lawyers with co-sponsors of Ohio Senate Bill 315: at least 33 of the 45 Ohio legislators who co-sponsored SB 315 are ALEC members, and language from portions of the state Senate bill is similar to ALEC's "Disclosure of Hydraulic Fracturing Fluid Composition Act."

...disclosure of fracking fluids? On behalf of ExxonMobil?!

Frack fluids include unknown chemicals that gas drillers mix with sand and large amounts of water. The mixture is pumped underground at high pressure in order to retrieve gas and oil by fracturing shale formations. These are the chemicals that have caused widespread concern among residents near gas fracking operations, concerns echoed by doctors who don't know how to treat patients harmed by exposure to chemicals that oil companies keep secret. Oil companies like XTO Energy, a subsidiary of ExxonMobil, the first company lined up to drill in Ohio's Utica shale.

Concern over unconventional energy like gas fracking may be the reason by Ohio SB 315 also addresses clean energy standards and drilling regulations. While the new law will allow doctors to obtain disclosure of fracking chemicals, it places a gag order on them...meaning some chemicals aren't disclosed to the public at all (Cleveland Plain Dealer). Instead, chemicals that subsidiaries of Big Oil use during fracking can remain exempt from public disclosure as "trade secrets," mirroring language of ALEC's model law.

What's most suspicious is that seven of the ten Ohio Senators co-sponsoring SB 315 are ALEC members, as are 26 of the 35 co-sponsoring Representatives.

Among the co-sponsors are Ohio Senate President Tom Niehaus and state Senator Troy Balderson. Senators Niehaus and Balderson are members of ALEC's Energy, Environment and Agriculture task force, which approved the fracking "disclosure" bill internally sponsored by ExxonMobil, modeled after a Texas bill (see New York Times and ProPublica).**

Four of the co-sponsors of SB 315 attended ALEC's meeting in Scottsdale, AZ, although it is unclear which (if any) of them may have been inside the EEA task force meeting the day that the fracking chemical loophole bill was discussed and approved:***

  • Rep. Cheryl Grossman
  • Rep. Casey Kozlowski
  • Rep. Louis Terhar
  • Rep. Andrew Thompson

Some co-sponsors became ALEC members in the lead up to ALEC's late 2011 meeting in Scottsdale, AZ, where the fracking disclosure loophole model bill was finalized by ALEC's Energy, Environmental and Agriculture task force. Emails between representatives of ALEC, the Ohio state government and Time Warner Cable's Ed Kozelek show that last-minute recruitment of new ALEC members before the Scottsdale meeting brought in three state legislators who ended out co-sponsoring SB 315 (PDF pp. 71-76): Rep. Lou Terhar, Rep. Brian Hill and Sen. Bob Peterson (who was appointed to the Ohio Senate in 2012).

 

Head spinning yet? Let's summarize:

  • Exxon pushed the fracking loophole bill through ALEC's [anti]environment task force,
  • A couple of key Ohio legislators directly involved in that task force brought the bill back home...
  • ...and then a pile of Ohio legislators used ALEC's model to mold Exxon's Ohio fracking disclosure loopholes into state law!

While over 50 state legislators have cut ties with ALEC due to its widespread controversies, no Ohio lawmakers have responded in such a fashion. ALEC remains particularly influential in Ohio.

Beyond their involvement in these ALEC task force meetings, Exxon and API were involved in the creation of a similar fracking bill through the Council of State Governments before the ALEC model even existed. As if being a Private Empire isn't enough...

ALEC, CSG, OMG!

ALEC isn't the only group that peddles corporate-written state laws, as DeSmogBlog's Steve Horn pointed out in a blog on state fracking bills and the "Council of State Governments." With direct financial support from Exxon, API, TransCanada and others, the Council of State Governments (CSG) drafted a similar fracking chemical "disclosure" bill two months before ALEC's was internally approved, although they both appear to be modeled off of a Texas law.

While one of the co-sponsoring Senators of Ohio SB 315, Troy Balderson, is a member of CSG Midwest's Energy Committee, Ohio politicians aren't part of the Suggested State Legislature (SSL) committee that vetted the Council's version of the fracking bill. Because of that disconnect and the overwhelming influence of ALEC politicians sponsoring SB 315, ALEC appears to be the keeper of Exxon's fracking secrets in Ohio.

Regardless of the varying influence of groups like ALEC and CSG forging Big Business state laws, ExxonMobil is getting what it wants. According to Don't Frack Ohio!--a project of 350:

  • Fracking companies can hide which chemicals they use in the fracking process by calling them ‘trade secrets’. That means they are exempt from telling you what they put in your water. What little they do disclose is 60 days after drilling takes place, too late for communities to test to show what was in their water before drilling, rendering the disclosure meaningless.
  • The gas industry pays nothing for the mess they create. Gov. Kasich’s minor tax on individual wells is offset by new tax breaks on property taxes and other giveaways, which means the gas industry will pay less in Ohio taxes than they do in any other state in the country.
  • No citizen notification or input will be allowed on any part of the fracking industry. There is no public notice, no public comment, and no right to appeal for drill sites, pipelines, or compressor stations.

Ohio Governor John Kasich has numerous ties to ALEC and was "involved with ALEC in its formative years," but he called for SB 315 to include full disclosure of chemicals used in hydraulic fracturing. Senators replaced true disclosure requirements with Exxon's loopholes and ALEC Representatives decided to leave them.

ALEC secrecy in Ohio

ALEC legislators have found ways to make their moves harder to track in light of repeated exposure of ALEC's pollution of democracy in the United States over the last year, and sometimes existing state laws don't help. Ohio's financial disclosure forms for legislators specifically mention that expenses or reimbursements from ALEC conferences do not need to be publicly disclosed. In Ohio and other states, ALEC dodges lobby laws through corporate-funded "scholarship" programs that are thoroughly documented by the Center for Media and Democracy through open records requests. 

People for the American Way and Progress Ohio report that ALEC's scholarship fund in Ohio is financed donations from the American Petroleum Institute, Duke Energy, Reynolds Tobacco, and other major corporations interested in buying the loyalty of Ohio lawmakers.

I'm sure you'd understand if you were in the same position. Sometimes steak and cigars are more important than energy that doesn't poison us.

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*Cross-referenced between a list of ALEC legislators listed in an Aug. 9, 2011 email from the legislative aid of ALEC's Ohio State Chairman, Rep. John Adams, obtained through a public records request (see PDF pp. 82-84 and PFAW p.12).

**ALEC documents published by Common Cause show that Sen. Balderson was a member of ALEC's EEA task force throughout 2011, although Sen. Balderson did not attend the ALEC task force meeting last December in Pheonix, AZ, according to a staffer at his office over the phone, nor is he listed in emails obtained through a public records request as attending the previous meetings in New Orleans (Aug. 2011) or Cincinnati (Apr. 2011). Ohio Senate President Tom Niehaus was a consistent member of ALEC's [anti]environment task force from August 2010-August 2011, the time period for which ALEC's EEA task force rosters are available. SB 315 co-sponsoring Representatives Carey, Damschroder and Derickson were all listed as members of ALEC's EEA task force as of August, 2011.

***Co-sponsors cross referenced with an email from ALEC Ohio State Chairman John Adams' legislative aid to Emily Petrovich of US Steel, dated 11/22/2011--eight days before the Scottsdale meeting (see PDF p. 138).

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API's Jack Gerard Refuses to Answer Activists on Vote 4 Energy Advertising Costs

  • Posted on: 7 March 2012
  • By: Connor Gibson

Referees call foul on Big Oil Lies

Jack Gerard won't reveal how much API spends on the "Vote 4 Energy" ad campaign

We'll get to the encounter with Mr. Gerard below, but first, some context:

Gas prices! Everyone's talking about them, including our government at a Congressional hearing today held by the House of Representatives Energy & Power Subcommittee featuring, among others, Mr. Jack Gerard of the American Petroleum Institute. As API's president, Jack Gerard is Big Oil's top lobbyist, and today he was doing what companies like Exxon and Shell pay him the big bucks to do - justify government subsidies and giveaways to Big Oil.
 
Also attending the hearing: referees raising the red flags on misleading statements and calling attention to the $5.97 million that oil companies have given to current members of the Energy & Power subcommittee since 1999 (data provided by the Center for Responsive politics through DirtyEnergyMoney).

This particular meeting of the subcommittee exposed some of the more blatant absurdities that API and their oil funded buddies in Congress like to propagate. Take gas prices - Jack Gerard likes to say "we need more American energy," by which he means we need to open up every square inch of soil and water to oil and gas extraction. His argument is that gas prices would be lower if we sacrificed our land and investment capital to Big Oil's drill.

Luckily Congressman Edward Markey was there to point out how ridiculous it is to assume anything extracted by multinational oil corporations is "American." Once multinationals like BP and Exxon get oil from American sources, it becomes their oil, to sell on the open world market for the best price. The fact is, letting companies drill for oil on American soil won't result in any drop in price at the gas pump because the amount of oil American sources would produce is miniscule in comparison to the amount consumed globally. Allowing companies like Shell to drill off Alaskan shores or in other high-risk ways wouldn't save American consumers a dime, but would add many millions of dollars to Shell's bottom line. Gerard's refusal to acknowledge this belies a truth about API that he doesn't want the public to know - the American Petroleum Institute does not want to lower gas prices for Americans, API wants to increase the political power and profits of their member organizations.

That's why Rep. Markey suggested some more appropriate labels for Gerard's group than the American Petroleum Institute; like the "World Petroleum Institute" due to multinational members like BP and Shell who will sell oil from America to the highest bidder,  the "Wall Street Petroleum Institute" because Gerard and API refuse to acknowledge the role speculation plays in driving up oil prices, or the "Caymen Islands Institute", because of API's dedicated defense of tax breaks, subsidies, and other loopholes which keep oil corporations from paying their fair share.

If Gerard meant it when he said "The more transparent the discussion, the better off we'll be," he would take one of Rep. Markey's suggestions. That way the American public would know that API's attacks blaming the president for high gas prices, repeated lies about Keystone XL's affect on gas prices, or blocking rules to protect air and water from the dangers of fracking are all part of an extensive dirty energy PR campaign.
 
Short of re-branding his organization, Jack could at least be transparent about the amount of oil industry money he is using to influence elections through the Vote 4 Energy ad campaign. The Vote 4 Energy campaign has blanketed cable television and much of Washington DC in misleading pro-drilling, pro-fracking propaganda in an attempt to further Big Oil's political agenda by misleading voters. API wants you to vote for ExxonMobil and Shell instead of yourself.

In spite of Mr. Gerard's lip service to "transparent discussion," when we repeatedly asked him how much oil money he is using to influence the upcoming election with Vote 4 Energy propaganda, he didn't want to be part of the discussion. If Mr. Gerard is so proud of the ad campaign, why won't he talk about how much of API's $200 million budget is going toward Vote 4 Energy?

 

And if you haven't seen our own Vote 4 Energy commercial mocking API's prized public relations campaign, compare both Vote 4 Energy ads yourself.

Gerard photo credit: Houston Chronicle

Industry: 

Oil lobbyist Jack Gerard fact checked during Press Club speech

  • Posted on: 20 January 2012
  • By: Connor Gibson

Jack Gerard announcing the Vote 4 Energy campaign in early January.

Photo: Fortune/CNN Money

Two days ago, President Obama denied the permit for the destructive Keystone XL tar sands pipeline, much to the dismay of Big Oil's top lobbyist and propagandist. Speaking at the National Press Club to an audience dominated by oil, coal and nuclear representatives and lobbyists, American Petroleum Institute (API) president Jack Gerard continued to lash out at President Obama over the pipeline decision. However, activists attending their event fact checked Jack's big oil talking points.

Shortly after asking the president, "what are you thinking?!" a group of activists stood and delivered a call-and-response "fact check" over Gerard's speech -- see the full Fact Check video. After the event, PolluterWatch's Connor Gibson approached Jack Gerard on camera and repeatedly asked him how much the American Petroleum Institute (API) is spending on its new "Vote 4 Energy" advertising campaign (which, as Mr. Gerard has absurdly claimed, is "not an advertising campaign"). Jack refused to answer:

Vote 4 Energy, which was mocked by a parody commercial during its public release, is the American Petroleum Institute's newest money dump to pretend that most Americans support politicians who represent Big Oil more than their own constituents. Wrapping its talking points in patriotic rhetoric, API's real intent is to continue getting billions of taxpayer dollars each year to corporations like ExxonMobil, Shell and Chevron, which rank among the most profitable companies in the world

Vote 4 Energy sets the stage for API to push it's key priorities--unlimited offshore drilling, including in the Arctic, hydraulic fracturing for gas, pushing the rejected Keystone XL tar sands pipeline, and keeping those massive taxpayer subsidies
 
On E&E TV yesterday, Jack Gerard was asked to address the fact that Keystone XL serves as a tool to export large amounts of Canadian tar sands to foreign markets after pumping it across the US. Rather than being able to echo API's dishonest claims of "energy security" through increased access to Canadian oil, Gerard was forced to acknowledge that Keystone XL could be used to boost foreign exports.
 
Despite a rocky week and an advertising campaign mocked by the spoof Vote 4 Energy commercial, Jack Gerard will continue working to increase Big Oil's influence on our election. Numerous API advertisements are airing across the country and API is holding "Energy Forums" in key states, peddling their energy lies to American voters. What voters should keep in mind is that Big Oil's Vote 4 Energy advertising campaign is really about a Vote 4 Big Oil.
 
Industry: 

Mock commercial undermines new Vote 4 Energy oil advertisement

  • Posted on: 4 January 2012
  • By: Connor Gibson

A Greenpeace activist hands out flyers promoting a mock Vote4Energy commercial calling attention to Big Oil's astroturf campaigns.

Today, the American Petroleum Institute unveiled its 2012 Vote 4 Energy astroturf campaign, centered around a major election-linked CNN advertising package that PolluterWatch helped expose last month with audio recordings from inside the studio. Vote 4 Energy attempts to show 'real Americans' who are 'energy voters,' meaning they are committing to vote for whichever politicians support Big Oil's dirty agenda in this election year. Typical. API also bought the back page of the A section of the Washington Post with a Vote 4 Energy ad, space that costs hundreds of thousands of dollars to normal people.

Anticipating this new misinformation campaign, PolluterWatch created a mock commercial to show how API and it's oil company members (Exxon, BP, Shell, Chevron and all the usual suspects) have to fake citizen support for the oil industry:

The American Petroleum Institute (API) is Big Oil's top lobbying firm, using a $200 million budget to push dirty energy incentives and tax handouts for oil companies into our national laws. They have been caught in the past staging rallies for their Energy Citizens astroturf campaign, as revealed by Greenpeace in a confidential API memo to oil executives. Why do they fake citizen support? Probably because Americans overwhelmingly support clean energy over dirty oil development.

Knowing that API is rolling out the astroturf on cable TV, we decided to roll out actual astroturf at the location of their press conference today, literally making attendees walk down a long astroturf 'green carpet' shrouded by Big Oil logos as they entered the event. The K St lobbyists seemed downright confused by seeing the corporate logos that are normally invisible at API events.

Inside, API CEO Jack Gerard announced the campaign and promoted dirty energy development like the Keystone XL tar sands pipeline in his "State of American Energy" address. Apparently Jack thinks he's the President of United States of Energy, I thought he was just an oil lobbyist. Reporters leaving the session spoke about how bogus the event was--same old same old from Jack.

Jack Gerard may want to trick Americans into his Vote 4 Energy nonsense, but he demonstrates the same predictable rhetoric that oil companies always use to make themselves sound somewhat responsible, when everyone knows they aren't--see our profiles for ExxonMobil, Shell, BP, Chevron and ConocoPhillips, all multi-billion dollar corporations, making record profits even in a global recession, and looking for more tax breaks and handouts. If you are watching election coverage on CNN and spot API's astroturf ad, don't buy the lie. Vote for yourself, not oil executives.

Industry: 

Canada, Shell, BP Lobby Europe on Tar Sands

  • Posted on: 4 August 2011
  • By: Connor Gibson

The Guardian reports Canadian cooperation with oil supermajors BP and Shell in what Friends of the Earth Europe calls an "unprecedented" lobbying effort to peddle the world's dirtiest oil across the Atlantic. The Guardian's Terry Macalister writes:

"The Canadians have managed to delay the EU's original deadline of January 2011 for confirming baseline default values despite new peer-reviewed studies to support the European position."

Known for crippling our global climate, the tar sands also have a notably destructive impact on the indigenous community inhabiting the area that is now Northen Alberta, poisoning food and water sources while ignoring their calls for help from the government, which at the provincial and national level has repeatedly favored Big Oil. This excellent photo essay documents how destructive tar sands development has impacted the life of Melina Laboucan-Massimo, Greenpeace Canada's Climate and Energy Campaigner and member of the Lubicon Cree First Nation community:

Here in the United States, corporate titans like ExxonMobil ignore these fatal consequences as they push pro-tar sands advertisements onto consumers. As the debate over the proposed Keystone XL pipeline rages on, the US Chamber of Commerce is running a dirty lobbying campaign to support the project while the American Petroleum Institute has actually used recent oil pipeline spills as their nonsensical justification for the pipeline's construction. Check out PolluterWatch's profiles for each of these climate villians for documentation of their role in perpetuating global warming denial and inaction.

In spite of the continued and predictable madness demonstrated by Big Oil and its widespread apologists over the Keystone XL issue, activists are organizing a full two weeks of nonviolent civil disobedience outside of the White House to ensure the Keystone XL project is not actualized. More information can be found on the Tar Sands Action website.

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