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Revealed: Heather Zichal Met with Cheniere Executives as Obama Energy Aide Before Board Nomination

9:14 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

 

Portrait of Heather Zichal

Zichal through the revolving door?

Heather Zichal, former deputy assistant for energy and climate change to President Barack Obama and nominee to sit on the board of directors of LNG export company Cheniere Energy Inc., held two meetings with Cheniere executives while working for the White House.

White House meeting logs show Zichal attended the meetings with three executives from Cheniere, owner of the Sabine Pass LNG (liquefied natural gas) export facility, the first terminal to receive a final approval from the U.S. Federal Energy Regulatory Commission (FERC) during the hydraulic fracturing (“fracking”) boom.

The meetings appear to have taken place just over two weeks apart from one another, according to the meeting logs. The first meeting was on January 14, 2013, and the second on January 29, 2013. Just over eight months later, Zichal resigned from her White House job, with Reuters citing “plans to move to a non-government job.”

Cheniere CEO Charif Souki — who is facing a major ongoing class-action lawsuit— sat in on both of those meetings. He was joined by Cheniere executives Patricia Outtrim, vice president of governmental and regulatory affairs, and Ankit Desai, vice president of government relations.

Desai, a Cheniere lobbyist, formerly worked with Zichal on U.S. Secretary of State John Kerry’s 2004 presidential campaign, serving as his budget director. Desai also formerly served as political director for then-U.S. Senator and now Vice President Joe Biden.

Zichal served as Kerry’s energy and environment policy adviser for the 2004 campaign and in 2006, became his legislative director, a job she held until becoming policy director for energy, environment and agriculture for President Barack Obama’s 2008 presidential campaign.

“Ms. Zichal served as the top energy advisor to the President of the United States at a time when Cheniere was beginning construction on [Sabine Pass LNG],” Katie Pipkin, Cheniere’s senior vice president of business development and communications told DeSmogBlog. “The meeting was simply to inform and update the administration on that project.”

Pipkin also denied that two separate meetings took place in January 2013 between Cheniere and Zichal, telling DeSmogBlog, “Our records indicate only one meeting with Zichal on the 29th.” She did not respond to repeated requests for clarification on that claim.

While at the White House, Zichal earned a salary of $140,000 per year. If elected to the Cheniere board, she will make $180,000 per year, plus own 6,000 shares of Cheniere stock.

White House Open Door for Cheniere

According to a DeSmogBlog review of White House meeting logs, between 2009 and 2013, the Obama White House held 32 meetings with Cheniere board members and lobbyists, including the two attended by Souki, Desai and Outtrim.

Together, Souki and Outtrim attended four other meetings with White House officials and eight more each, either on their own or as part of other meeting blocs.

The Obama White House door has remained open to Outtrim even though she donated $10,000 to Republicans running in the the 2014 mid-term elections, according to OpenSecrets.org. Outtrim has also co-hosted a fundraiser for U.S.Sen. John Cornyn (R-TX).

Just 10 days after Cheniere landed its final approval from FERC to export LNG from Sabine Pass on April 16, 2012, the White House hosted a meeting with Outtrim and fellow board member R. (Robert) Keith Teague.

Majida Mourad, vice president of government relations for Cheniere, also met five times with the White House.

Two of those meetings were held directly with President Barack Obama himself, one on December 4, 2011, and another on January 18, 2013. First Lady Michelle Obama also attended the second meeting.

Prior to becoming a lobbyist for Cheniere, Mourad served as a senior aide for Spencer Abraham, former secretary of energy during the first term of the Bush Administration.

“Not Uncommon”

Some wonder whether Zichal will provide Cheniere even further top-level access to the Obama Administration if elected to the company’s board.

“Heather Zichal taking a position on Cheniere’s board of directors would be another example of the revolving door between those who set energy policies and the corporations that reap financial benefits from those policies,” Emily Wurth, water program director at Food & Water Watch, told DeSmogBlog.

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Former Obama Energy Aide Named to Board of Fracked Gas Exports Giant Cheniere

11:14 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

 

Face photo of Heather Zichal

Revolving door: An Obama energy aide may join a fracking giant.

Heather Zichal, former Obama White House Deputy Assistant to the President for Energy and Climate Change, may soon walk out of the government-industry revolving door to become a member of the board of directors for fracked gas exports giant Cheniere, who nominated her to serve on the board.

The announcement, made through Cheniere’s U.S. Securities and Exchange Commission Form 8-K and its Schedule 14A, comes just as a major class-action lawsuit was filed against the board of the company by stockholders.

In reaction to the lawsuit, Cheniere has delayed its annual meeting. At that meeting, the company’s stockholders will vote on the Zichal nomination.

The class-action lawsuit was filed by plaintiff and stockholder James B. Jones, who alleges the board gave stock awards to CEO Charif Souki in defiance of both a stockholders’ vote and the company’s by-laws.

Souki — a central character in Gregory Zuckerman‘s book The Frackers — became the highest paid CEO in the U.S. as a result of the maneuver, raking in $142 million in 2013, $133 million of which came from stock awards.

Zichal was nominated to join Cheniere’s audit committee of the board, and will be paid $180,000 per year for the gig if elected.

Among the audit dommittee duties: “Prepare and review the audit committee report for inclusion in the proxy statement for the company’s annual meeting of stockholders,” which is now set for September 11 after the push-back following the filing of the stockholder class-action lawsuit.

“The audit committee’s responsibility is oversight, and it recognizes that the company’s management is responsible for preparing the company’s financial statements and complying with applicable laws and regulations,” Cheniere’s audit committee charter further explains.

Cheniere (stock symbol LNG, shorthand for “liquefied natural gas”) is currently awaiting a final decision on Corpus Christi LNG, its proposed LNG exports facility. That terminal would send gas obtained predominantly via hydraulic fracturing (“fracking”) to the global market.

The company already received the first ever final approval to export fracked gas from the U.S. Federal Energy Regulatory Commission (FERC) in April 2012 for itsSabine Pass LNG export terminal, which is scheduled to be operational by late-2015.

The nature of what role Zichal will play on the board and audit committee of the first company to make a major bet on LNG exports remains unclear. But one thing remains clear: she joins a politically well-connected cadre of Cheniere board members.

Other prominent Cheniere board members include John Deutch, former head of the U.S. Central Intelligence Agency (CIA) and Vicky Bailey, a FERC commissioner, both of whom worked for the Clinton administration.

And given Zichal’s former role as liaison between the oil and gas industry at the White House and her track record serving in that role, it raises the question: was she working for the industry all along?

Zichal Oil and Gas Services

Zichal was best known to many as the main mediator between the oil and gas industry and the White House during her time working for the Obama administration. In fact, Cheniere cites that experience as the rationale for nominating her to serve on the board.

“Zichal has extensive knowledge of the domestic and global energy markets as well as the U.S. regulatory environment,” reads the “skills and qualifications” portion of her nomination announcement on Cheniere’s Schedule 14A. “She brings a diversified perspective about the energy industry to our board having served in significant government positions during her career.” 

As Obama’s “climate czar,” Zichal headed up the effort — mandated via an April 13, 2012 Obama Executive Order — to streamline regulatory oversight of the gas industry in the U.S.

Titled, “Supporting Safe and Responsible Development of Unconventional Domestic Natural Gas Resources,” the Executive Order signed in the form of a “Friday news dump” created “a high-level, interagency working group that will facilitate…domestic natural gas development” overseen by Zichal.

Obama signed the Executive Order after meeting with Jack Gerard, head of the American Petroleum Institute (API), and other industry leaders. According to EnergyWire, API requested the creation of that working group.

“We have called on the White House to rein in these uncoordinated activities to avoid unnecessary and overlapping federal regulatory efforts and are pleased to see forward progress,” Gerard told the Associated Press in response to a question about the order.

A month later on May 15, Zichal spoke to API about her efforts and those of the Obama administration on fracking.

“It’s hard to overstate how natural gas — and our ability to access more of it than ever — has become a game-changer and that’s why it’s been a fixture of the President’s ‘All of the Above’ energy strategy,” she told API.

Just think about it: a few years ago, the conventional wisdom was that the United States would need to build more terminals to import natural gas overseas. And today, America is the world’s leading producer of natural gas and we’re actually exploring opportunities for exports.

As a May 2012 Bloomberg article explained, among Zichal’s tasks was wooing API head Jack Gerard, which she appears to have succeeded at.

Similar to the interagency working group created by the April 13, 2012, Executive Order, Zichal also oversaw the Bakken Federal Executives Group, which was created through the signing of Executive Order 13604 on March 22, 2012. That order was part of the same package that called for expedited building of the southern leg of the Keystone XL tar sands pipeline.

Executive Order 13604 created an interagency steering committee with a goal “to significantly reduce the aggregate time required to make federal permitting and review decisions on infrastructure projects while improving outcomes for communities and the environment.”

Zichal was also instrumental in legalizing the American Legislative Exchange Council‘s (ALEC) approach for fracking chemical fluid disclosure on U.S. public lands, overseen by the U.S. Department of Interior’s Bureau of Land Management.

“Zichal met more than 20 times in 2012 with industry groups and company executives lobbying on the proposed rule,” reported EnergyWire. “Among them were the American Petroleum Institute (API) and the Independent Petroleum Association of America (IPAA), along with BP America Inc., Devon Energy Corp. and Exxon Mobil Corp.”

Beyond overseeing streamlined permitting for fracking sites on both public and private lands, Zichal also oversaw the White House file for the Pavillion, Wyo., fracking groundwater contamination study.

Conducted by the U.S. Environmental Protection Agency (EPA), many believe the White House — counseled by Zichal — made a political calculus to cancel the ongoing investigation, the first of three major major studies on the subject shutdown by the EPA.

“Deeply Embedded”

The Zichal nomination is taking place alongside the deployment of the Obama Administration regulating coal-fired power plants through the U.S. Environmental Protection Agency. The rule is a de facto endorsement of fracking and gas-fired power plants as part of the “all of the above” energy policy.

As the Zichal case makes clear with regards to climate change-causing fracked gas, LNG exports flow through the revolving door in Washington, DC, and beyond.

“The fact that one of Obama’s top climate advisors is now helping expand fossil fuel use raises questions about how deeply embedded oil and gas industry interests are in the administration,” Jesse Coleman, a researcher for Greenpeace USA told DeSmogBlog.

Revealed: Former Energy in Depth Spokesman John Krohn Now at EIA Promoting Fracking

9:11 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog 

For those familiar with U.S. Energy Information Administration’s (EIA) work, objectivity and commitment to fact based on statistics come to mind. Yet as Mark Twain once put it, “There are three kinds of lies: lies, damned lies, and statistics.”
Untitled
That’s where John Krohn comes into play. A former spokesman for the gas industry front group Energy in Depth (EID), Krohn now works on the Core Team for EIA’s “Today in Energy!

Krohn has been at EIA since at least January 2014, when his name first appeared on the EIA website. On his Twitter account, he describes himself as an EIA communications manager.

As DeSmog revealed in February 2011, Energy In Depth was launched with a heavy injection of funding from oil and gas industry goliaths such as BP, Halliburton, Chevron, Shell and XTO Energy (now owned by ExxonMobil).

With its public relations efforts conducted by FTI Consulting, EID now serves as a key pro-industry front group promoting unfettered hydraulic fracturing (“fracking”) to the U.S. public.

Krohn follows in the footsteps through the government-industry revolving door of the man President Barack Obama named to head the U.S. Department of Energy (DOE) for his second term, former Massachusetts Institute of Technology “frackademic,” Ernest Moniz. DOE is the parent agency for EIA.

Further, EIA Administrator Adam Sieminski, another second-term appointee of President Obama, also passed through the same revolving door as Krohn and Moniz in his pathway to heading EIA. He formerly worked in the world of oil and gas finance. 

“From 1998 to 2005, he served as the director and energy strategist for Deutsche Bank’s global oil and gas equity team,” his EIA biography explains. “Prior to that, from 1988 to 1997, Mr. Sieminski was the senior energy analyst for NatWest Securities in the United States, covering the major U.S. international integrated oil companies.”

The revolving door, though, is as American as apple pie. What makes the Krohn appointment more alarming to some observers is what this means in the context of the potential looming shale gas and oil bubble.

This revelation comes after EIA downgraded its Monterey Shale oil reserves estimate from 13.7 billion barrels to 600 million barrels, a 96-percent decrease

EIA: “Seriously Exaggerating Shale Gas Production”

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Gulf Stream: Williams Nixes Bluegrass Gas Export Pipeline, Announces New Export Line

12:45 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Williams Companies logo

Under grassroots pressure, Williams pivots toward new pipeline plan.

Right before the champagne bottles began popping for activists engaged in agrassroots struggle to halt the construction of Williams Companies‘ prospective Bluegrass Pipeline project — which the company suspended indefinitely in an April 28 press release — Williams had already begun raining on the parade.

The pipeline industry giant took out the trash on Friday, April 25, announcing its intentions to open a new Louisiana pipeline named Gulf Trace.

Akin to TransCanada’s ANR Pipeline recently reported on by DeSmogBlog, Gulf Trace is not entirely “new,” per se. Rather, it’s the retooling of a pipeline system already in place, in this case Williams’ Transco Pipeline system.

The retooling has taken place in the aftermath of Cheniere’s Sabine Pass LNGexport facility receiving the first ever final gas export permit from the U.S.Federal Energy Regulatory Commission (FERC) during the fracking era.

Both ANR and Gulf Trace will feed into Sabine Pass, the Louisiana-based LNGexport terminal set to open for business in late 2015. Also like ANR, Transco will transform into a gas pipeline flowing in both directions, “bidirectional” in industry lingo.

Bluegrass, if ever built, also would transport fracked gas to the Gulf Coast export markets. But instead of LNG, Bluegrass is a natural gas liquids pipeline (NGL).

“The project…is designed to connect [NGLs] produced in the Marcellus-Utica areas in the U.S. Northeast with domestic and export markets in the U.S. Gulf Coast,” itexplained in an April 28 press release announcing the project’s suspension.

With Bluegrass tossed to the side for now, Williams already announced in a press release that the company has launched an open season to examine industry interest in Gulf Trace. It closes on May 8, 2014.

“Although we recognized the suspension of the Bluegrass could impact non-conventional drilling here in Western Pennsylvania, we should all know better than to get too excited about this announcement,” Carrie Hahn, a Pennsylvania-based activist told DeSmogBlog. “There is too much at stake here for them to give up that easily.”

The announcement follows in the aftermath of the flurry of federal-level lobbying activity by Williams during the first quarter of 2014.

Williams Spends Big Lobbying for Exports

First-quarter lobbying disclosure forms indicate Williams spent $450,000 lobbying at the federal level for both shale gas exports and pipeline permitting issues. It has done so utilizing both its in-house lobbyists and outside lobbying firms.

In-House Lobbyists 

In-house, Williams spent $410,000 on its own to advocate for gas exports and pipeline permitting issues during the first quarter. Williams’ lobbying efforts were headed by its vice president for governmental affairs, Deborah Lawrence anddirector of governmental affairs, Glenn Jackson.

Outside Lobbying Firms

No smart corporation makes a big announcement of this sort without first greasing the skids and Williams is no different in that regard, utilizing the age-old government-industry revolving door to curry favor.

In that vein, meet Ryan, MacKinnon, Vasapoli and Berzok, LLP, which Williams paid $40,000 to lobby on its behalf during the first quarter.

Lobbyist Thomas Ryan formerly served as chief counsel for the U.S. House Energy & Commerce Committee. That committee has pushed forward shale gas exports in a big way so far in 2014. Ryan is one of the lobbyists listed on the firm’s first-quarter disclosure form on the Williams file.

Jeffrey MacKinnon, another lobbyist listed on the firm’s lobbying disclosure form, also has close ties to the Energy & Commerce Committee. MacKinnon formerly served as legislative director for U.S. Rep. Joe Barton (R-TX), the climate change denier and former chairman of the Energy &Commerce Committee.

Add Joseph Vasapoli to the list, as well.

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Documents: MD County Housing First East Coast LNG Export Facility Signs Non-Disclosure Deal

1:48 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Co-authored by Steve Horn and Caroline Selle

DeSmogBlog has obtained documents revealing that the government of Calvert County, MD, signed a non-disclosure agreement on August 21, 2012, with Dominion Resources — the company proposing the Cove Point Liquefied Natural Gas (LNG) export terminal in Lusby, MD. The documents have raised concerns about transparency between the local government and its citizens.

The proposal would send gas obtained via hydraulic fracturing (“fracking”) from the Marcellus Shale basin to the global market. The export terminal is opposed by the Chesapeake Climate Action Network, Maryland Sierra Club and a number of other local environment and community groups.

The Accokeek Mattawoman Piscataway Creeks Council (AMP Council), an environmental group based in Accokeek, MD, obtained the documents under Maryland’s Public Information Act and provided them to DeSmogBlog.

Cornell University’s Law School explains a non-disclosure agreement is a “legally binding contract in which a person or business promises to treat specific information as a trade secret and not disclose it to others without proper authorization.”

Upon learning about the agreement, Fred Tutman, CEO of Patuxent Riverkeeper — a group opposed to the LNG project — told DeSmogBlog he believes Calvert County officials are working “in partnership with Dominion to the detriment of citizen transparency.”

“We’re unhappy that it does seem to protect Dominion’s interest rather than the public interest,” Tutman said. “The secrecy surrounding this deal has made it virtually impossible for anyone exterior to those deals, like citizens, to evaluate whether these are good transactions or bad transactions on their behalf.”

Details of the Non-Disclosure Agreement

The six-page non-disclosure agreement explains Calvert County “desires to participate in discussions regarding Calvert County property tax credits. During these discussions, [Dominion] may share certain proprietary information with the [county].”

What’s confidential? According to the non-disclosure agreement,

… any data or information…not generally known to the public, whether in tangible or intangible form, and meeting the requirements for mandatory denial of inspections pursuant to the Maryland Public Information Act…whenever and however disclosed, including, but not limited to: (i) marketing strategies, plans, financial information, or projections, operations, sales estimates, business plans and performance results relating to the past, present or future business activities of such party, its affiliates, subsidiaries and affiliated companies; (ii) plans for products or services, and customer supplier lists; (iii) any scientific or technical information, invention, design, process, procedure, formula, improvement, technology or method; (iv) any concepts, reports, data, know-how, works-in-progress, designs, development tools, specifications, computer software, source code, object code, flow charts, databases, inventions, information and trade secrets; and (v) any other information that should reasonably be recognized as confidential information of [DCP].

In a statement provided to DeSmogBlog, Calvert County Commissioner Evan K. Slaughenhoupt, Jr. said it would be the “height of naiveté” to think a government would not sign a non-disclosure agreement in this type of situation, given the stakes involved.

“When businesses have contractual concerns, and meet with elected officials in a lawful duly authorized executive session to discuss expansion of a business, I honor my responsibility to not convey what was discussed in such a session,” he said. “Citizens expect no less of that from us.”

Non-Disclosure Agreements “Normal Part of Negotiations”

The use of non-disclosure agreements by local governments is not unprecedented. Some cases in point:

Queried about Dominion’s non-disclosure agreement with Calvert County, Dominion spokesman Jim Norvelle told DeSmogBlog such agreements are “a routine, normal part of negotiations involving multi-billion dollar economic development projects.”

“Companies and counties often use non-disclosure agreements because they each need to share business-sensitive, confidential information that cannot be shared with other businesses or counties for competitive reasons,” Norvelle said. “The result this time around is certainty for both Dominion and the county.”

U.S. Congressmembers Decline Comment

Asked for comment on the agreement on multiple occasions by DeSmogBlog, Maryland’s U.S. Senators Ben Cardin (D) and Barbara Mikulski (D) declined to comment, as did U.S. Rep. and Democratic Party Whip Steny Hoyer.

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The Geopolitics of Energy: An Interview with Steve Horn

9:14 am in Uncategorized by Steve Horn

Cross-Posted from Frack the Media

If there is an up-and-coming investigative journalist to follow, it’s Steve Horn of DeSmog Blog. If you follow any of Frack The Media’s social media, you’ve been exposed to Steve. What draws us to Steve (and others like him) is his attention to detail surrounding the energy issue. It’s a multifaceted, highly complex and propagated geopolitical issue — regular reports often miss these intricacies (as mainstream media outlets tend to gloss over complex topics ). Long story short, we got to pick Steve’s brain and highlight some of the important investigative work he does.

Frack The Media: A lot of your reporting has focused on fracking and tar sands. What draws you to these particular issues?

Steve Horn: I focus on these issues for a number of reasons. Most importantly, the majority of the reporting on these issues by U.S. and Canadian reporters only grazes the surface, treating them as only environmental issues or only as energy issues. That’s not the case.

Given my academic background is in sociology and history and my keen interest in geopolitics, there is far more to these issues than meets the eye at face-value. I use my “sociological imagination,” as C. Wright Mills put it, when doing reporting on these issues. That means being an ecologist and looking at how the local interconnects with the global and looking at energy as not only an environmental issue, but also as a geopolitical issue.

In the case of fracking and tar sands, they’re the two biggest sources of energy that have transformed the U.S. and Canada into the “New Saudi Arabia” for oil and gas, huge players in the geopolitical “great game,” as Zbiginiew Brzezinski once put it. Not only are these important issues because they’re ravaging ecosystems and racing us to climate change catastrophe, but they’re also reshaping geopolitics as we know it.

There will still be wars for oil of course, as it’s a cornerstone of U.S. geopolitical planning. But given tar sands and fracking are both seen as political pawn chips on the “Grand Chessboard” to fend off Russian dominance of the global gas market and Saudi/Russian dominance of the global oil market, these issues aren’t going away anytime soon without a hell of a fight by grassroots activists, regardless of the idealism of some well-meaning environmentalists. That means busy times for an investigative journalist and endless stories to tell, an incredible time to be in the business to say the least.

FTM: You’ve reported on the industry influence of academic research on fracking (“frackademia”). Can you explain this issue and it’s significance?

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Obama DOE Issues 1st Marcellus Shale Fracked Gas Export Permit

3:59 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

LNG carrier ship

Fracking gas from Marcellus Shale may soon be headed overseas.

The U.S. Department of Energy (DOE) has granted the first ever LNG export permit license to Dominion Resources, Inc. to export gas obtained from the controversial hydraulic fracturing (“fracking”) process in the Marcellus Shale basin.

It’s the fourth ever export terminal approved by the DOE, with the three others along the Gulf Coast: Cheniere’s Sabine Pass LNG, Freeport LNG (50-percent owned by ConocoPhillips) and Lake Charles Exports, LLC.

Located in Lusby, Maryland, the Dominion Cove Point LNG terminal will be a key regional hub to take gas fracked from one of the most prolific shale basins in the world — the Marcellus — and ship it to global markets, with shale gas exports a key geopolitical bargaining chip with Russia, the biggest producer of conventional gas in the world.

Dominion owns not only Cove Point, but also the pipeline infrastructure set to feed the terminal.

“Dominion … owns both the existing Cove Point LNG Terminal and the 88-mile Cove Point pipeline,” explained industry publication LNG Global. “Dominion Cove Point … stated in their application that natural gas will be delivered to the Cove Point Pipeline from the interstate pipeline grid, thereby allowing gas to be sourced broadly.”

DOE handed Dominion a permit lasting a generation.

“Subject to environmental review and final regulatory approval, the facility is conditionally authorized to export at a rate of up to 0.77 billion cubic feet of natural gas a day (Bcf/d) for a period of 20 years,” LNG Global further explained.

It’s a decision that is set to affect the course of U.S. energy markets, the global climate system and sensitive ecosystems for decades to come.

With the DOE authorizing Dominion to export gas from Cove Point, Maryland, “it is deeply disappointing to see that Secretary [Ernest] Moniz persists in leading the nation and the world into a dirty energy future. It’s a bad deal all around: for public health, the environment, and America’s working people,” the Sierra Club said in a statement.

“Exporting LNG to foreign buyers will lock us into decades-long contracts, which in turn will lead to more drilling — and that means more fracking, more air and water pollution, and more climate-fueled weather disasters like record fires, droughts, and superstorms like last year’s Sandy…As we have shown, once environmental impacts are evaluated, it becomes clear that the additional fracking and gas production exports would induce is unacceptable.”

“Dominion” means “the act or fact of ruling” and today in the Marcellus it equates to the “golden rule”: he who has the gold makes the rules, in which Marcellus fracked gas will soon flow to the highest bidder on the global market.

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Friday Trash Dump: Obama DOE Approves 2nd Fracked Gas LNG Export Terminal

8:41 am in Uncategorized by Steve Horn

Freeport LNG, Texas

Cross-Posted from DeSmogBlog

Friday is the proverbial “take out the trash day” for the release of bad news among public relations practitioners and this Friday was no different.

In that vein, yesterday the Obama Department of Energy (DOE) announced a conditional approval of the second-ever LNG (liquefied natural gas) export terminal.

LNG is the super-chilled final product of gas obtained – predominantly in today’s context – via the controversial hydraulic fracturing (“fracking”) process taking place within shale deposits located throughout the U.S. Fracked gas is shipped from the multitude of domestic shale basins in pipelines to various coastal LNG terminals, and then sent on LNG tankers to the global market.

The name of the terminal: Freeport LNG.

Freeport LNG is 50-percent owned by ConocoPhillips and located in Freeport, Texas, an hour-long car ride south of Houston. The export facility is the second one approved by the Obama DOE, with the first one – the Sabine Pass terminal, owned by Cheniereand located in Sabine Pass, Louisiana - approved in May 2011.

DOE gave its rubber stamp of approval to Freeport LNG to export up to 1.4 billion cubic feet of LNG per day from its terminal.

Moniz’s DOE is Dept. of LNG Exports

The announcement comes in the aftermath of an April DeSmogBlog investigation revealing that recently confirmed Energy Department Secretary Ernest Moniz - a former member of the Board of Directors of ICF International – has a binder full of conflicts-of-interest in any decision the DOE makes to export the U.S. shale gas bounty.

As we explained in that investigation, a Feb. 2013 “study” published by the American Petroleum Institute (API) and conducted on its behalf by ICF International concluded exporting shale gas was on the economically sound up-and-up.

ICF is a consulting firm that teams up with oil and gas industry corporations and was one of three firms that did the Supplemental Environmental Impact Statement on behalf of the U.S. State Department for the northern half of TransCanada’s Keystone XL pipeline. The SEIS was published in March 2013.

Furthermore, among the members of the Obama Administration’s industry-stacked DOE Fracking Subcommittee formed in May 2011 was Kathleen “Katie” McGinty. McGinty formerly served as Vice President Al Gore’s top climate aide during the Clinton Administration, segueing from that position into one as chair of the Clinton Council on Environmental Quality from 1993-1998. Her husband is Karl Hausker, the Vice President of ICF International.

In Dec. 2012, the DOE – like API/ICF - said exporting LNG was economically sound. The DOE’s LNG exports economics study itself was published by another industry-tied firm, NERA (National Economic Research Associates) Economic Consulting.

Given the myriad ties that bind, it’s tough to fathom any other decision being made by the DOE on Freeport or any other LNG export terminal from here on out. And the ecological consequences of that will be disastrous.

“Exporting LNG will lead to more drilling — and more drilling means more fracking, more air and water pollution, and more climate fueled weather disasters like last year’s record fires, droughts, and superstorms,” Deb Nardone, Director of the Sierra Club’s Beyond Natural Gas campaign said in a press release in response to the DOE announcement.

“Once environmental impacts are evaluated, it becomes clear that the additional fracking and gas production exports would induce is unacceptable.” Read the rest of this entry →

Ties That Bind: Ernest Moniz, Keystone XL Contractor, American Petroleum Institute and Fracked Gas Exports

9:53 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Ernest J Moniz

Ernest J Moniz, Obama's candidate for Secretary of Energy, has many conflicts of interest due to energy industry ties.

Congress will review the Obama Administration’s nomination of Ernest Moniz for Secretary of the Department of Energy (DOE) in hearings that start today, April 9.

Moniz has come under fire for his outspoken support of nuclear powerhydraulic fracturing (“fracking”) for shale gas and the overarching “all-of-the-above” energy policy advocated by both President Barack Obama and his Republican opponent in the last election, Mitt Romney.

Watchdogs have also discovered that Moniz has worked as a long-time corporate consultant for BP. He has also received the “frackademic” label for his time spent at Massachusetts Institute of Technology (MIT). At his MIT job, Moniz regularly accepted millions of dollars from the oil and gas industry to sponsor studies under the auspices of The MIT Energy Initiative, which has received over $145 million over its seven-year history from the oil and gas industry.

MIT’s “The Future of Natural Gas” report, covered by many mainstream media outlets without any effort to question who bankrolled it, was funded chiefly by the American Clean Skies Foundation, a front group for the shale gas industry’s number two domestic producer, Chesapeake Energy. That report concluded that gas is a “bridge fuel” for a renewable energy future and said that shale gas exports were in the best economic interests of the United States, which should “not erect barriers to natural gas imports and exports.”

As first revealed on DeSmogBlogMoniz is also on the Board of Directors of ICF International, one of the three corporate consulting firms tasked to perform the Supplemental Environmental Impact Study (SEIS) for TransCanada’s Keystone XL (KXL) tar sands pipeline. KXL is slated to bring tar sands – also known as “diluted bitumen,” or “dilbit” - from Alberta to Port Arthur, TX, where it will be sold to the highest bidder on the global export market.

Moniz earned over $300,000 in financial compensation in his two years sitting on the Board at ICF, plus whatever money his 10,000+ shares of ICF stock have earned him.

Moniz’s American Petroleum Institute Ties to Shale Gas Export Advocacy

Another controversial oil and gas industry export plan exists for fracking.

Read the rest of this entry →

Congressmen Supporting Fracked Gas Exports Took $11.5 Million From Big Oil, Electric Utilities

7:37 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

south texas oil

South Texas Oil Refinery

On Jan. 25, 110 members of the U.S. House of Representatives – 94 Republicans and 16 Democrats - signed a letter urging Energy Secretary Steven Chu to approve expanded exports of liquified natural gas (LNG).

It was an overt sign of solidarity with the Obama Administration Department of Energy’s (DOE) LNG exports study, produced by a corporate consulting firm with long ties to Big Tobacco named NERA Economic Consulting (NERA is short for National Economic Research Associates), co-founded in 1961 by the “Father of Deregulation,” Alfred E. Kahn. That study concluded exporting gas obtained from the controversial hydraulic fracturing (“fracking”) process - sent via pipelines to coastal LNG terminals and then onto tankers – is in the best economic interests of the United States.

A DeSmogBlog investigation shows that these 110 signatories accepted $11.5 million in campaign contributions from Big Oil and electric utilities in the run-up to the November 2012 election, according to Center for Responsive Politics data.

Big Oil pumped $7.9 million into the signatories’ coffers, while the remaining $3.6 million came from the electric utilities industry, two industries whose pocketbooks would widen with the mass exportation of the U.S. shale gas bounty. Further, 108 of the 110 signers represent states in which fracking is occurring.

Exhibit A: Human Geography of Campaign Finance Post-Citizens United

Energy issues are almost always questions of infrastructure, geography, and geopolitics. So too is the case of LNG exports, with this letter serving as Exhibit A of the new human geography of campaign finance in the post-Citizens United world.

Texas

The expression always seems to ring true: everything is bigger in Texas.

This letter is no different, as 19 of the 110 signatories represent congressional districts in The Lone Star State, 12 Republicans and seven Democrats. Texas is home to both the Eagle Ford Shale basin and the Barnett Shale basin, as well as prospective LNG export terminals in Sabine Pass (co-owned by ExxonMobil, ConocoPhillips and Qatar Petroleum), Freeport (partially owned by ConocoPhillips) and Corpus Christi (owned by LNG export giant, Cheniere).

The “Texas 19″ alone raked in $2.5 million from Big Oil and electric utilities. 

Rep. Kevin Brady (R-TX8), a recipient of $166,000 from Big Oil and another $23,000 from the electric utilities industry, oversees a congressional district in part based in Houston, the corporate epicenter for the oil and gas industry and home to the innovative leader in the sphere of LNG exports, Cheniere Energy. ExxonMobil and Chesapeake Energy, the number one and two producers of unconventional gas in the U.S., each gave Brady $10,000 before his 2012 electoral victory. Anadarko, Marathon and Valero also followed suit with $10,000 contributions and ConocoPhillips chipped in an extra $7,500.

Brady’s Texas colleague Joe Barton (R-TX6), whose congressional district in large part overlaps the Barnett Shale basin, took $162,150 from Big Oil and another $124,950 from the electric utilities industry. He received $13,000 from utilities giant Exelon Corporation, $12,500 from ExxonMobil, $10,000 from Koch Industries, $7,000 from Chevron and $5,000 from Chesapeake Energy. Koch Industries’ Koch Pipeline runs from the Eagle Ford Shale basin to Corpus Christi.

The Dirty, Dirty South

Read the rest of this entry →