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Faulkner County: ExxonMobil’s “Sacrifice Zone” for Tar Sands Pipelines, Fracking

7:00 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Swamp with trees

A swamp in Faulkner County, Arkansas -- an area despoiled by fracking and a recent Exxon tar sands spill.

There are few better examples of a “sacrifice zone” for ExxonMobil and the fossil fuel industry at-large than Faulkner County, Arkansas and the counties surrounding it.

Six weeks have passed since a 22-foot gash in ExxonMobil’s Pegasus tar sands Pipeline spilled over 500,000 gallons of heavy crude into the quaint neighborhood of Mayflower, AR, a township with apopulation of roughly 2,300 people. The air remains hazardous to breathe in, it emits a putrid strench, and the water in Lake Conway is still rife with tar sands crude.

These facts are well known.

Less known is the fact that Faulkner County – within which Mayflower sits – is a major “sacrifice zone” for ExxonMobil not only for its pipeline infrastructure, but also for the controversial hydraulic fracturing (“fracking”) process. The Fayetteville Shale basin sits underneath Faulkner County.

ExxonMobil purchased XTO Energy for $41 billion in Dec. 2009 as a wholly-owned subsidiary. XTO owns 704,000 acres of land in 15 counties in Arkansas. Among them: Faulkner.

Private Empire” ExxonMobil is now the defendant in a class action lawsuit filed by the citizens of Mayflower claiming damages caused in their community by the ruptured Pegasus Pipeline. ExxonMobil’s XTO subsidiary was also the subject of a class action lawsuit concerning damages caused by fracking in May 2011 and another regarding fracking waste injection wells in Oct. 2012.

This isn’t the naturalist novelist William Faulkner’s Faulkner County, that’s for certain.

A Fracking Class-Action Lawsuit

In May 2011, James and Mindy Tucker filed a class action lawsuit in the U.S. District Court for the Eastern District of Arkansas. Among the defendants was XTO.

“This action is being brought against the Defendants for the creation of a noxious and harmful nuissance, contamination, trespass and diminution of property values that the Gas Wells have caused and continue to cause,” explained the complaint. “This action seeks…injunctive relief in the form of monitoring of air quality, soil quality and water quality on Plaintiffs’ property…[and] to have their property monitored for the harmful effects of the Gas Wells owned and operated by the Defendants.”

Like many others, those living in the vicinity of the industry’s fracking wells saw their drinking water become contaminated and lost forever for consumption purposes. The complaint says the Plaintiffs noticed their water began to smell like “cotton poison.”

“After the water had acquired this smell, the Plaintiffs had to discontinue use of their water for normal household uses,” reads the complaint.

A subsequent well water test revealed massive levels of alpha-Methylstyrene, a flammable and poisonous chemical and a known component found within fracking fluid.

“Each of these suits asks for establishment of a fund for monitoring environmental contamination, a medical monitoring fund, $1 million in compensatory damages, and $5 million in punitive damages,” explains a press release from the law firm that brought the suit.

Epicenter of Fracking Wastewater Injection Earthquakes

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30 Toxic Chemicals at High Levels at Mayflower Exxon Tar Sands Spill

10:12 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

An independent study co-published by the Faulkner County Citizens Advisory Group and Global Community Monitor reveals that, in the aftermath of ExxonMobil’s Pegasus tar sands pipeline spill of over 500,000 gallons of diluted bitumen (dilbit) into Mayflower, AR, air quality in the area surrounding the spill has been affected by high levels of cancer-causing chemicals.

Roughly four weeks after the spill took place, many basic details are still unknown to the public, according to recent reporting by InsideClimate News. Questions include what exactly caused the spill, how big was the spill exactly, and how long did it take for emergency responders to react to the spill, to name a few.

But one thing is certain according to the new study: For the residents of Mayflower, quality of life has been changed forever.

The chemicals found in the samples include benzene, toluene, ethylbenzene, n-hexane, and xylenes. Breathing in both ethylbenzene and benzene can cause cancer and reproductive effects, while breathing in n-hexane can damage the nervous system and usher in numbness in the extremities, muscular weakness, blurred vision, headaches, and fatigue.

All of these chemicals are hazardous air pollutants (HAPs), “regulated under the 1990 Federal Clean Air Act amendments as the most toxic of all known airborne chemicals,” as explained in the press release summarzing the study.

As covered here on DeSmog, the spill clean-up in Mayflower has more closely resembled PR image clean-up than on-the-ground clean-up, both because of the firm the AR Attorney General has hired to do spill clean-up assessment and because of the ongoing Federal Aviation Administration (FAA) no-fly zone being run on behalf of the FAA by Exxon’s “Aviation Advisor,” Tom Suhrhoff.

Given the revalations in this latest study, Exxon has proven it has much to cover up, with this study only scratching the surface of the ecological harms of the pipeline spill.

“The spill and response has been a disservice to the community,” said Global Community Monitor’s Ruth Breech. “People are obviously suffering and experiencing health symptoms from chemical exposure related to the oil spill. State and Federal need to step up immediately to document and prevent any further health issues associated with the Exxon oil spill. Agencies need to share information in a manner to ensure informed decision making and enable access to necessary resources such as medical treatment for chemical exposure.”

With a decision looming on the future of the prospective TransCanada Keystone XL tar sands pipeline by the Obama Administration, Mayflower is yet another sordid case study of the hazards that accompany tar sands pipelines wherever they meander.

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Oops, Inc.: Firm with History of Cover-Ups Hired to Clean Up Arkansas Tar Sands Spill

5:50 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Arkansas’ Attorney General Dustin McDaniel has contracted out the “independent analysis of the cleanup” of the ExxonMobil Pegasus tar sands pipeline spill to Witt O’Brien’s, a firm with a history of oil spill cover-ups, a DeSmogBlog investigation reveals.

At his April 10 press conference about the Mayflower spill response, AG McDaniel confirmed that Exxon had turned over 12,500 pages of documents to his office resulting from a subpoena related to Exxon’s response to the March 29 Pegasus disaster. A 22-foot gash in the 65-year-old pipeline spewed over 500,000 gallons of tar sands dilbit through the streets of Mayflower, AR.

McDaniel also provided the media with a presser explaining that his office had“retained the assistance of Witt O’Brien’s, a firm whose experts will immediately begin an independent analysis of the cleanup process.”

Witt O’Brien’s describes itself as a “global leader in preparedness, crisis management and disaster response and recovery with the depth of experience and capability to provide services across the crisis and disaster life cycle.”

But the firm’s actual performance record isn’t quite so glowing. O’Brien’s has had its hands in the botched clean-up efforts of almost every high-profile oil spill disaster in recent U.S. history, including the Exxon Valdez spill, the BP Deepwater Horizon spill, the Enbridge tar sands pipeline spill into the Kalamazoo River, and Hurricane Sandy.

Most troubling of all, Witt O’Brien’s won a “$300k+ contract to develop a Canadian-US compliant Oil Spill Emergency Response Plan for TransCanada’s Keystone Oil Pipeline Project” in Aug. 2008.

Thus, if the Keystone XL (KXL) pipeline inevitably suffered a major spill, Witt O’Brien’s would presumably handle the cleanup. That should worry everyone along the proposed KXL route.

From OOPS, Inc. to Witt O’Brien’s

In Dec. 2012, Witt Associates merged with O’Brien’s Response Management to form Witt O’Brien’s. The merger at-large is owned by Seacor Holdings.

O’Brien’s was formed in the early 1980s by Jim O’Brien – a former U.S. Coast Guard officer – as O’Brien Oil Pollution Service, otherwise known by OOPS, Inc. That’s not a joke, it was their actual name.

OOPs, Inc. was acquired by Seacor Holdings Inc. under the auspices of Seacor Environmental Services division in 1997, later renamed The O’Brien’s Group (TOG). TOG was later re-named O’Brien’s Response Management Inc. in Oct. 2008.

Importantly, in Dec. 2009, O’Brien’s acquired a powerful public relations spin machine wing, as its former website explains:

In December of 2009, O’Brien’s completed the successful acquisition of PIER (Public Information Emergency Response) Systems Inc., a crisis communications company that has developed the PIER software application, an all-in-one, web-based solution for communications management, public relations, media monitoring, employee notification, and business continuity.

Witt Associates, meanwhile, was founded by James Witt, former head of the Federal Emergency Management Agency (FEMA) under President Bill Clinton who also served Gov. Clinton in Arkansas as head of the state’s Office of Emergency Services. He started Witt Associates upon leaving his Clinton Administration post.

Oil and Gas Industry Ties Run Deep at Witt O’Brien’s

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Exxon’s Skies: Why Is Exxon Controlling the No-Fly Zone Over Arkansas Tar Sands Spill?

4:59 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Map of Mayflower No-Fly Zone

Exxon is in control of a No-Fly Zone over the Mayflower, Arkansas Tarsands Spill.

The Federal Aviation Administration (FAA) has had a “no fly zone” in place in Mayflower, Arkansas since April 1 at 2:12 PM and will be in place “until further notice,” according to the FAA website and it’s being overseen by ExxonMobil itself. In other words, any media or independent observers who want to witness the tar sands spill disaster have to ask Exxon’s permission.

Mayflower is the site of the recent major March 29 ExxonMobil Pegagus tar sands pipeline spill, which belched out an estimated 5,000 barrels of tar sands diluted bitumen (“dilbit”) into the small town’s neighborhoods, causing theevacuation of 22 homes.

The rules of engagement for the no fly zone dictate that no aircraft can fly within 1,000 feet of the ground in the five-mile radius surrounding the ExxonMobil Pegasus tar sands pipeline spill. The area located within this radius includes the nearby Pine Village Airport.

The Arkansas Democrat-Gazette revealed that the FAA site noted earlier today that “only relief aircraft operations under direction of Tom Suhrhoff” were allowed within the designated no fly zone.

Suhrhoff is not an FAA employee: he works for ExxonMobil as an “Aviation Advisor and formerly worked as a U.S. Army pilot for 24 years, according to his LinkedIn page.

Lynn Lunsford, an FAA spokesman, told Dow Jones a no fly zone was issued because ”at least one” helicopter was needed to move clean-up crews around, as well as to spot oil that can’t be seen from the ground.

“The pilot of the helicopter needs to be able to move about freely without potential conflicts with other aircraft,” he told Dow Jones.

This also means press is prohibited from the area, though Lunsford told Dow Jonesthat the FAA “is in the process of amending the restriction to allow news media aircraft into the area.”

When will news media be allowed back into the designated no fly zone area? That portion of the question was either never asked by Dow Jones or never answered by Lunsford.

This comes one day after Arkansas Attorney General Dustin McDaniel said his office would be opening an investigation into the incident. It also comes one day after federal pipeline regulators barred ExxonMobil from restarting the pipeline until it receives close inspection.

It appears the Pegasus spill is becoming the BP Gulf oil disaster take two, with the responsible polluter running every step of the show.

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Florida Pushing ALEC, CSG Sham Fracking Chemical Disclosure Model Bill

7:09 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Florida may soon become the fourth state with a law on the books enforcing hydraulic fracturing (“fracking”) chemical disclosure. The Florida House of Representatives’ Agriculture and Natural Resources Subcommittee voted unanimously (11-0) on March 7 to require chemical disclosure from the fracking industry. For many, that is cause for celebration and applause.

FL Rep. Ray Rodrigues didn’t mention the law still contains the “trade secrets” loophole.

Fracking for oil and gas embedded in shale rock basins across the country and world involves the injection of a 99.5-percent cocktail of water and fine-grained sillica sand into a well that drops under the groundwater table 6,000-10,000 feet and then another 6,000-10,000 feet horizontally. The other .5 percent consists of a mixture of chemicals injected into the well, proprietary information and a “trade secret” under the Energy Policy Act of 2005, which current President Barack Obama voted “yes” on as a Senator.

That loophole is referred to by many as the “Halliburton Loophole” because Dick Cheney had left his position as CEO of Halliburton - one of the largest oil and gas services corporations in the world – to become Vice President and convene the Energy Task Force. That Task Force consisted of the Secretaries of State, Treasury, Interior, Agriculture, Commerce, Transportation and Energy. One of its key actions was opening the floodgates for unfettered fracking nationwide.

Between 2001 and the bill’s passage in 2005, the Task Force held over 300 meetings with oil and gas industry lobbyists and upper-level executives. The result was a slew of give-aways to the industry in this omnibus piece of legislation. On top of the “Halliburton Loophole,” the bill also contains an exemption for fracking from Environmental Protection Agency (EPA) enforcement of the Clean Water Act and the Safe Drinking Water Act.

The federal-level response to closing the ”Halliburton Loophole” is the Fracturing Responsibility and Awareness of Chemicals (FRAC) Act, a bill that never garnered more than a handful of co-sponsors.

The state-level response, the story goes, is versions of the bill that recently passed onan 11-0 bipartisan basis in a Florida state house subcommittee.

Introduced as the “Fracturing Chemical Usage Disclosure Act” on Feb. 13, bill sponsor Rep. Ray Rodrigues (R-76) told The Palm Beach Post the day the bill passed in Subcommittee that there is ”every indication … at some point in the future” that fracking will proceed in the Sunniland Shale basin and that being “proactive” is the way to go. A senate companion bill was also introduced as SB 1028 by Sen. Jeff Clemons (D-27) and if the bill passes in both chambers, it will be labeled SB 1776.

What Rodrigues didn’t mention: the law was written by what investigative journalist Steve Coll referred to as a “private empire,” ExxonMobil.

Like its federal-level predecessor, it still contains the “trade secrets” loophole. It’s also a model bill distributed both by the American Legislative Exchange Council (ALEC), asfirst revealed by The New York Times in April 2012, and the Council of State Governments (CSG), as first revealed here on DeSmogBlog.

FracFocus Façade: Sunshine State’s Copy-Paste and Disaster-in-the-Make

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ALEC Sham Chemical Disclosure Model Tucked Into Illinois Fracking Bill

12:29 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Illinois Capitol Dome

Illinois is the next target for ALEC's environmental tampering.

Illinois is the next state on the American Legislative Exchange Council (ALEC)‘s target list for putting the oil industry’s interests ahead of the public interest.

98 percent funded by multinational corporations, ALEC is described by its critics as a “corporate bill mill” and a lobbyist-legislator dating service. It brings together corporate lobbyists and right wing politicians to vote up or down on “model bills” written by lobbyists in service to their corporate clientele behind closed doors at its annual meetings.

These “models” snake their way into statehouses nationwide as proposed legislation and quite often become the law of the land.

Illinois, nicknamed the “Land of Lincoln,” has transformed into the “Land of ALEC” when it comes to a hydraulic fracturing (“fracking”) regulation bill - HB 2615, the Hydraulic Fracturing Regulation Act - currently under consideration by its House of Representatives. “Fracking” is the toxic horizontal drilling process via which unconventional gas and oil is obtained from shale rock basins across the country and the world.

HB 2615 - proposed on Feb. 21 with 26 co-sponsors - has an ALEC model bill roped within this lengthy piece of legislation: the loophole-ridden Disclosure of Hydraulic Fracturing Fluid Composition Act.

As covered here on DeSmogBlogthis model bill has been proposed and passed in numerous statehouses to date. If the bill passes, Illinois’ portion of the New Albany Shale basin will be opened up for unfettered fracking, costumed by its industry proponents as the “most comprehensive fracking legislation in the nation.”

“If At First You Don’t Succeed, Dust Yourself Off and Try Again”

This isn’t ALEC’s first fracking-related crack at getting a model bill passed in Illinois. In 2012, the Disclosure of Hydraulic Fracturing Fluid Composition Act – introduced as SB 3280 - passed unanimously by the Illinois Senate but never passed the House.

SB 3280 isn’t merely an ALEC model, but is a Council of State Government’s (CSG) model, too, as covered here on DeSmog.

The “disclosure” standards’ origins lay in the Obama Department of Energy’s (DOE) industry-stacked fracking subcomittee, formed in May 2011 ”to study the practice of hydraulic fracturing (fracking), and determine if there are ways, or even a necessity, to make it safer for the environment and public health.”

As exposed by The New York Times in April 2012, these ”disclosure” standards were originally written by ExxonMobil, first passed in Texas in June 2011, and now serve as both an ALEC and CSG model bill for the states. I say “disclosure” – as opposed to disclosure – because the bill includes loopholes for “trade secrets,” ala the “Halliburton Loophole” written into the industry-friendly federal Energy Policy Act of 2005.

Section 77 of HB 2615, titled “Chemical disclosure; trade secret protection,” also includes the same trade secrets exemption from the ALEC/CSG ExxonMobil-written model bill.

Ever persistent, ALEC has taken the late pop diva Aaliyah’s words to heart with regards to chemical fluids “disclosure,” at first not succeeding and dusting itself off and trying again.

The FracFocus Façade

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NY Fracking Scandal: 7 Groups Demand Conflict of Interest Investigation of Cuomo Administration

1:15 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Lawrence Schwartz, Secretary to Gov. Andrew M. Cuomo

New York could soon become the newest state in the union to allow hydraulic fracturing (fracking), the controversial technique used to enable shale oil and gas extraction. The green light from New York Governor Andrew Cuomo could transpire in as little as “a couple of weeks,” according to journalist and author Tom Wilber.  

That timeline, of course, assumes things don’t take any crazy twists or turns.

Enter a press conference today in Albany, where seven groups, including Public Citizen, Food and Water WatchFrack Action, United for ActionCatskill Citizens for Safe Energy, and Capital District Against Fracking, called for an Albany County District Attorney General investigation of the Cuomo Administration.

They are asking “whether Lawrence Schwartz, Secretary to Gov. Andrew M. Cuomo, has a conflict of interest between his stock investments and his involvement in the state’s decision on whether to allow high-volume hydraulic fracturing for shale gas.”

Schwartz – dubbed “the ringleader” of Governor Cuomo’s administration – potentially has what these groups describe as a legal conflict-of-interest. A months-long DeSmogBlog investigation reveals that Cuomo’s chief-of-staff actually has a direct financial interest in fracking going forward in New York state, potentially falling under the sphere of insider trading.  

Above and beyond Schwartz’s annual oil and gas industry stock holdings in corporations ranging from Occidental Petroleum, Williams Companies, ExxonMobil/XTO, and General Electric (GE) for the past decade, the Cuomo Administration has also held numerous meetings with lobbyists representing some of these same corporations dating back to when Cuomo assumed office in Jan. 2011, records obtained under New York’s Freedom of Information Law (FOIL) by DeSmogBlog reveal.

Dirty Details: Oil/Gas Industry Stock Holdings, Meetings with Lobbyists from Same Corporations

The details are dirty, both figuratively and literally.

A September 2012 investigation by the Environmental Working Group (EWG) examined Schwartz’s past three financial disclosure forms. That probe revealed that he had stock holdings of $1,000+ each in Occidental, Williams, Exxon/XTO, and GE in both 2010 and 2011, respectively. All four of these corporations possess a financial stake in Cuomo approving fracking in New York.

2009 saw much of the same, a year in which Schwartz had $1,000+ in his stock portfolio invested in GE, Williams, and Burlington Resources (purchasd as a subsidiary by ConocoPhillips in 2005).

DeSmogBlog followed in the footsteps of the EWG investigation by filing both an Executive Chamber FOIL request, as well a FOIL request to Schwartz’s former employer, the Westchester County Executive Office, asking for his financial disclosure forms dating back to 2002.

That latter request revealed that Schwartz has had stock holdings in the oil and gas industry dating back to 2002. At that time he was working as chief-of-staff to then-Westchester County Executive, Andrew J. Spano.

In 2002 and 2003, Schwartz had over $1,000 in stock holdings in Chevron and GE. Until 2001, Texaco – purchased in 2000 as a subsidiary by Chevron – was headquarted in Westchester. The Westchester County Executive Chamber did not possess Schwartz’s forms for 2004 or 2005.

His 2006 filings reveal $1,000 or more in his stock portfolio invested in Burlington Resources, GE, and Williams Companies.

Records obtained from Cuomo’s Executive Chamber also revealed that lobbyists from the very corporations Schwartz has thousands of dollars of stock holdings in have earned the ear of Cuomo in the form of exclusive meetings with his high-level aides.  

One case in point: Both in April 2012 and in Sept. 2012, Williams Companies lobbyists had meetings with Cuomo aides on the status of its proposed Constitution Pipeline, a joint venture between Cabot Oil and Gas, Piedmont Natural Gas and Williams Companies. That 120-mile long, 30-inch prospective pipeline, if approved, will carry gas produced in NY’s section of the Marcellus Shale to markets throughout the northeastern U.S.

The latter meeting was held between two Williams’ lobbyists – Tonio Burgos and John Charlson – and upper level Cuomo aides.

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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

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BuyPartisan Consensus: ExxonMobil Donates $260,000 to Obama Inauguration

7:21 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

"Why do Big Oil, Gas and Coal have so much support on both sides of the aisle? Because they BuyPartisan."

The Other 98% and Oil Change International consider the inauguration.

President Barack Obama will be publicly sworn in today – on Martin Luther King Jr. Day – to serve his second term as the 44th President of the United States.

Today is also the three-year anniversary of Citizens United v. FEC, a U.S. Supreme Court ruling that – in a 5-4 decision – deemed that corporations are “people” under the law. Former U.S. Sen. Russ Feingold (D-WI) – who now runs Progressives United (a rhetorical spin-off of Citizens United) - said in Feb. 2012 that the decision “opened floodgates of corruption” in the U.S. political system.

Unlike for his first Inauguration, Obama has chosen to allow unlimited corporate contributions to fill the fund-raising coffers of the entity legally known as the Presidential Inaugural Committee. Last time around the block, Obama refused corporate contributions for the Inauguration Ceremony as “a commitment to change business as usual in Washington.”

But not this time. With a fundraising goal of $50 million in its sights, the Obama Administration has “opened floodgates” itself for corporate influence-peddling at the 57th Inaugural Ceremony.

A case in point: the Obama Administration’s corporate backers for the Inaurguation have spent over $283 million on lobbying since 2009, the Center for Public Integrity explained in a recent report.

This has perturbed some.

“It’s a deeply disturbing move, and a reversal from the positive steps they took in 2009,” Robert Weissman, president of Public Citizen told Roll Call. “Corporations make donations to events like the inaugural festivities because they get something back in return.”

One of the biggest givers so far is none other than what Pulitzer Prize winning investigative journalist Steve Coll calls a “Private Empire” – ExxonMobil.

ExxonMobil: Over $260,000 to Obama’s Inauguration Committee

According to a scoop by The Hill, ExxonMobil contributed $250,000 to the Inaugural Committee. Additionally, ExxonMobil attorney Judith Batty has given the Committee $10,750, according to the Center for Responsive Politics‘ OpenSecrets.org. Thus, ExxonMobil has given the Committee a grand total of over $260,000.

ExxonMobil earned a profit of $41.1 billion in 2011 and in the first three quarters of 2012 earned a profit of $34.92 billion, well on pace to surpass its 2011 profit margin.

Some mathematical context is warranted. This means ExxonMobil earned $9,935 per minute in the first three quarters of 2012, $596,107 per hour and $14.3 million per day in profits.

Despite these oligarchic-type bottom lines, ExxonMobil doesn’t even pay its fair share in taxes, as ThinkProgress explained in a March 2012 article:

Citizens for Tax Justice reported Exxon paid only 17.6 percent taxes in 2010, lower than the average American, and a Reuters analysis using the same criteria estimates that Exxon will pay only 13 percent in effective taxes for 2011. Exxon paid zero taxes to the federal government in 2009.

In practice, this means that ExxonMobil actually pays less in taxes by percentage than an average Middle Class American family.

For a corporation with financial wealth of this magitude and one that, to boot, evades paying taxes, $260,000 is truly a “drop in the bucket.” And yet in a political system favoring those who can “pay to play,” it’s a true game-changer in terms of gaining direct access to the Administration.

Obama Administration Responds…Sort Of

Critics say it’s more of the same out of an Obama Administration that in the first term had a cozy relationship with corporate patrons.

“It fits into a pattern of not treating this campaign-finance issue with concern when in fact it is of great concern to the integrity of the political process and our democratic system,” Fred Wertheimer, president of Democracy 21, told The Hill.

The Obama team’s response? According to them, they are champions of campaign-finance reform and anti-corruption measures.

“This president has done more to reduce the influence of special interests in Washington than any administration in history,” White House spokesman Eric Schultz told The Hill.

It looks as if Oil Change International has hit the nail on the head in framing this one, asking and answering the following question with an accompanying graphic co-created with The Other 98%.

Corporate Interests Influencing State Legislators via National Conference of State Legislatures

11:35 am in Uncategorized by Steve Horn

Fracking sign

Cross-Posted from Checks and Balances Project

The National Conference of State Legislatures (NCSL) describes itself as “a bipartisan organization that serves the legislators and staffs of the nation’s 50 states, its commonwealths and territories.  NCSL provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues.”

Affiliated with NCSL, is the NCSL Foundation which was created by NCSL as a  “nonprofit tax-exempt 501(c)(3) corporation that offers opportunities for businesses, national associations, nonprofit organizations and unions seeking to improve the state legislative process and enhance NCSL’s services to all legislatures.”

While the descriptions sound benign, the access to legislators NCSL and the NCSL Foundation provide to fossil fuel interests and other corporate “sponsors” sounds a lot like lobbying. Sourcewatch defines lobbyists as those who do “work on the behalf of their clients or the groups they’re representing to convince the government or others involved in public policy development to make a decision that is beneficial to them.”

Nowhere in the descriptions of NCSL or the NCSL Foundation is the unique access to state legislators granted to corporate funders characterized as lobbying.

In fact, William Pound, NCSL’s Executive Director, said in an interview with Checks & Balances Project at NCSL’s 2012 Fall Forum in Washington, D.C., that legislators are being educated, not lobbied.

However, this access has been called “stealth lobbying” by Steve Horn and Sarah Blaskey in a recent Truthout piece.

According to the NCSL Foundation website, there are many ways for fossil fuel interests to “educate” state legislators. They include:

  • Opportunity to participate in the annual standing committee new officer orientation session
  • Regular forums with NCSL officers and NCSL standing committee officers
  • Opportunity to suggest topics to standing committee officers
  • Opportunity to attend NCSL Executive Committee subcommittee meetings
  • Invitations to attend receptions and dinners with legislative leaders at yearly NCSL leadership meetings

In addition, with legislators from 40 out of the 50 states earning an average of $35,326 for their work and an average staff of 3.1 per member (or 1.2 staff in some states),[1] it raises questions of how much time and resources they have to research issues versus relying on positions posted by corporate sponsors or NCSL papers which corporate sponsors have had input on, according to Pound.

Given the role of Michael Behm as the Vice President of the NCSL Foundation and a Senior Vice President for Stateside Associates, a lobbying firm focused on lobbying state-centric groups like NCSL and the Council of State Governments (CSG), the partnerships being enabled by NCSL between legislators and fossil fuel interests should not be surprising.[2] This is especially true, given that many of Stateside Associates’ clients are also NCSL Foundations sponsors.

According to the current list of sponsors on the NCSL Foundation website (dated 1/31/12), fossil fuel interests such as ExxonMobil and America’s Natural Gas Alliance contributed $142,500, an increase from FY 2011 (July 2010-June 2011) when fossil fuel companies donated $100,000[3].

Perhaps the increase in contributions from fossil fuel interests, coupled with their ability to  “review” NCSL policy papers, explains the change in positions on hydraulic fracturing (or fracking) between 2010 and 2012. A 2010 policy paper provided a relatively balanced look at the costs, financial and environmental, associated with fracking. However, a June 2012 paper raises and dismisses the potentially devastating costs that fracking poses to states and the environment.

NCSL’s activities sound suspiciously like those of the American Legislative Exchange Council (ALEC), which is now facing a lawsuit under the Tax Whistleblower Act with the Internal Revenue Service. Common Cause filed the lawsuitafter accusing ALEC, legally a 501(c)(3) nonprofit organization, of “massive[ly] underreporting” the amount of lobbying it was undertaking.

While 501(c)(3)’s can engage in some lobbying, it cannot be the majority of its activity. According to Mother Jones, “The suit alleges that ALEC exists primarily to give corporate members the ability to ‘lobby state legislators and to deduct the costs of such efforts as charitable contributions.’ “

Checks and Balances will continue monitoring NCSL and other like-minded organizations that interact with legislators for purported “educational” purposes that could possibly be masking stealth lobbying activities.


[2] Horn and Blaskey write in their Truthout piece about how Behm and his other Stateside Associates colleagues take over organizations such as NCSL to influence state legislators on behalf of corporate interests.

[3] No figures were listed in the FY 2011 annual report. Therefore current sponsorship level amounts were applied to derive the $117,500 number.

Image by Bosc D’Anjou under Creative Commons License.