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Stink Tanks: Historical Records Reveal State Policy Network Was Created by ALEC

9:24 am in Uncategorized by Steve Horn

Cross-Posted by DeSmogBlog 

The Madison Hotel, DC

A 1991 report tracked down by DeSmogBlog from the University of California-San Francisco’s Legacy Tobacco Documents reveals that the State Policy Network (SPN) was created by the American Legislative Exchange Council (ALEC), raising additional questions over both organizations’ Internal Revenue Service (IRS) non-profit tax status.

Titled “Special Report: Burgeoning Conservative Think Tanks” and published by the National Committee for Responsive Philanthropy, the report states that State Policy Network’s precursor — the Madison Group — was “launched by the American Legislative Exchange Council and housed in the Chicago-based Heartland Institute.”

Further, Constance “Connie” Campanella — former ALEC executive director and the first president of the Madison Group — left ALEC in 1988 to create a lobbying firm called Stateside Associates. Stateside uses ALEC meetings (and the meetings of other groups) as lobbying opportunities for its corporate clients.

“Stateside Associates is the largest state and local government affairs firm,” according to its website. “Since 1988, the Stateside team has worked across the 50 states and in many local governments on behalf of dozens of companies, trade associations and government and non-profit clients.”

Named Constance Heckman while heading ALEC, Campenella also formerly served on the Board of Directors of Washington Area State Relations Group, a state-level lobbyist networking group. 

“The Washington Area State Relations Group (WASRG) is one of the nation’s largest organizations dedicated exclusively to serving state government relations professionals,” explains its website. “Since the mid-1970s, WASRG has been providing its corporate, trade association and public sector members with a unique and valuable opportunity to interact with their peers, key state officials and public policy experts.”

Shadow Lobbying All Along

ALEC is currently under fire for potentially abusing its 501(c)(3) non-profit IRS charity tax status, acting as a shadow lobbying apparatus and “corporate bill mill” throughout its 40 years of existence.

In response to criticism, internal documents recently revealed by The Guardian show that ALEC created a 501(c)(4) group called the Jeffersonian Project, a move activists said was a tacit admission ALEC has illegally served as a lobbying apparatus from the beginning.

What Campanella understood and cashed in on by creating Stateside Associates was how the “shadow lobbying” process works. Her career move from serving as ALEC’s executive director to setting up Stateside is another indicator ALEC and related groups facilitate lobbying.

“Stink Tanks” Ideas Factory

While ALEC facilitates passage of “model bills” — what the Center for Media and Democracy (CMD) has coined a “corporate bill mill” — State Policy Network proliferates the ideas legitimizing the myriad models that become legislation in statehouses nationwide.

These ideas come in the form of what CMD and Progress Now call “Stink Tanks,” modeled to be “mini-Heritage Foundations” by one of its original funders, Thomas Roe. State Policy Network has 64 state affiliates.

Roe, who passed away in 2000, served as vice chairman and finance chairman of the Republican Party in South Carolina and as a member of the Republican National Finance Committee. The Heritage Foundation, where Roe served on the Board of Trustees, now houses the Thomas Roe Institute for Economic Policy Studies.

Though current State Policy Network president Tracie Sharp claimed SPN member groups don’t coordinate with one another in a November Politico article, Roe explicitly funded the organization to do just that.

“Starting in 1987, these organizations began meeting regularly as the Madison Group…to trade information and discuss strategies,” a history of SPN published in 2007 explains. “Roe believed that these get-togethers were so helpful that they should be formalized through a professional association that would host annual conferences, provide services, and improve communications among its members.”

To this day, State Policy Network hands out an annual Roe Award.

“The annual Roe Award pays tribute to those in the state public policy movement whose achievements have greatly advanced the free market philosophy. It recognizes leadership, innovation and accomplishment in public policy,” explains the SPN website. “The award is an eagle, a symbol of liberty and the courage and conviction necessary for its preservation.”

“Winning is the Operative Word”

In introducing the “Burgeoning Conservative Think Tanks” report in a July 1991 letter to Kurt Malmgren — then the Senior Vice President of State Activities for the Tobacco Institute — former ALEC Executive Director Sam Brunelli wrote “winning is what ALEC is all about.”

“Winning is the operative word. It is an experience you can appreciate because winning the public policy debate will continue to have a tremendous positive effect on the ‘bottom line’ of your company,” Brunelli wrote.

“At ALEC, we bring together, in an intellectually and challenging environment, state legislators and corporate and business executives, wherein we provide the mixture of determination, dedication, preparation, and teamwork — those elements so necessary to winning!”

Yet, it’s fair to say after a week of hard-hitting investigative journalism by The Guardian and many other outlets, both ALEC and the State Policy Network have doubled down on defense and are not “winning” for now. Read the rest of this entry →

Stink Tanks: State Policy Network Internal Budget Documents Revealed by The Guardian

10:00 pm in Uncategorized by Steve Horn

The Madison Hotel, DC

Cross-Posted from DeSmogBlog

It’s been a rough week for the American Legislative Exchange Council (ALEC). The “corporate bill mill” group’s annual States & Nation meeting was overshadowed by damaging evidence of misconduct revealed by The Guardian.

And it just got a whole lot rougher with yet another investigative installment in The Guardian series.

This time, instead of focusing on ALEC alone, Guardian reporters Suzanne Goldenberg and Ed Pilkington took a big swing at what Center for Media and Democracy and Progress Now have called the “stink tanks” network run by the right-wing State Policy Network (SPN). Leaked a copy of SPN’s tax and budget proposal published in July 2013, the documents offer a rare glimpse inside the SPN machine.

One of the biggest revelations in the energy and environment sphere: SPN Associate Member, the Beacon Hill Institute “requested $38,825…to weaken or roll back a five-year effort by states in the region to reduce greenhouse gas emissions,” explained The Guardian. ”The institute said it would carry out research into the economic impact of the cap-and-trade system operating in nine states known as the Regional Greenhouse Gas Initiative.”

“BHI appeared to have already arrived at its conclusions in advance, admitting from the outset that the aim of the research was to arm opponents of cap-and-trade with data for their arguments, and to weaken or destroy the initiative.”

Another huge related development came in a piece published concurrently by The Guardian. That piece pointed out that Beacon Hill Institute is in trouble with its host institution Suffolk University for pushing research explicitly funded by SPN to oppose the Regional Greenhouse Gas Initiative, with research results already determined before the inquiry began.

“The stated research goals, as written, were inconsistent with Suffolk University’s mission,” Greg Gatlin, the university’s vice-president for marketing and communications, wrote in an email to The Guardian.The Beacon Hill Institute’s grant proposal did not go through the university’s approval process. The university would not have authorized this grant proposal as written.”

Searle, Monsanto, “The Don”: Oh My

The Guardian‘s piece is based on funding proposals from SPN member organizations handed to the Searle Freedom Trust, “a private foundation that in 2011 donated almost $15m to largely rightwing causes,” the paper explains.

“The trust, founded in 1998, draws on the family fortune of the late Dan Searle of the GD Searle & Company empire – now part of Pfizer – which created NutraSweet,” wrote The Guardian. “The trust is a major donor to such mainstays of the American right and the Tea Parties as Americans for Prosperity, the American Legislative Exchange Council (Alec), the Heartland Institute and the State Policy Network itself.”

Prior to Pfizer buying it out, Searle was a wholly owned subsidiary of transnational agribusiness giant, Monsanto. Donald Rumsfeld, former Secretary of Defense under President George W. Bush, served as CEO of Searle & Company from 1977-1985. Rumsfeld left the firm after it was purchased by Monsanto, personally earning $12 million on the deal.

Donors Trust/Donors Capital, Chicago Ties

The Chicago-based Searle Freedom Trust also gives big money to Donors Trust/Donors Capital, donating $1,880,000 between 2009 and 2011 according to SourceWatch and millions more to ALEC, according to the Bridge Project. Donors is referred to by Mother Jones reporter Andy Kroll as the ”the dark-money ATM of the conservative movement.”

The Windy City ties that bind are key. Among them, the Chicago-based Heartland Institute and the ”anonymous donor” behind its anti-science climate denial campaign (mentioned in the “Heartland Institute Exposed” documents), Chicago billionaire Barre Seid.

The Guardian‘s piece notes that Chicago Mayor Rahm Emanuel — the former chief of staff to President Barack Obama who has been dubbed “Mayor 1%” by Chicago activists and in a recent book by Kari Lyderson — was selected by SPN member the Illinois Policy Institute as the ideal spokesman for slashing pensions of public sector workers in Illinois.

Today, Illinois Democratic Party Governor Pat Quinn signed legislation doing just that.

“Mini-Heritage Foundations”

Holding its first meeting at the Madison Hotel in Washington DC, and coining itself the Madison Group, the right-wing Powell Memo-inspired founders of the group envisioned the organization to consist of a nationwide network of “mini-Heritage Foundations,” according to The National Review.

Decades later, the vision has come to fruition, with the State Policy Network’s $83 million worth of “stink tanks” polluting the public square with the ideas necessary to push forward ALEC’s corporate agenda. Read the rest of this entry →

Obama Approves Major Border-Crossing Fracked Gas Pipeline Used to Dilute Tar Sands

8:39 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Kinder Morgan logo

Kinder Magic?

Although TransCanada’s Keystone XL tar sands pipeline has received the lion’s share of media attention, another key border-crossing pipeline benefitting tar sands producers was approved on November 19 by the U.S. State Department.

Enter Cochin, Kinder Morgan’s 1,900-mile proposed pipeline to transport gas produced via the controversial hydraulic fracturing (“fracking”) of the Eagle Ford Shale basin in Texas north through Kankakee, Illinois, and eventually into Alberta, Canada, the home of the tar sands.

Like Keystone XL, the pipeline proposal requires U.S. State Department approval because it crosses the U.S.-Canada border. Unlike Keystone XL – which would carry diluted tar sands diluted bitumen (“dilbit”) south to the Gulf Coast – Kinder Morgan’s Cochin pipeline would carry the gas condensate (diluent) used to dilute the bitumen north to the tar sands.

“The decision allows Kinder Morgan Cochin LLC to proceed with a $260 million plan to reverse and expand an existing pipeline to carry an initial 95,000 barrels a day of condensate,” the Financial Post wrote.

“The extra-thick oil is typically cut with 30% condensate so it can move in pipelines. By 2035, producers could require 893,000 barrels a day of the ultra-light oil, with imports making up 786,000 barrels of the total.”

Increased demand for diluent among Alberta’s tar sands producers has created a growing market for U.S. producers of natural gas liquids, particularly for fracked gas producers.

“Total US natural gasoline exports reached a record volume of 179,000 barrels per day in February as Canada’s thirst for oil sand diluent ramped up,”explained a May 2013 article appearing in Platts. ”US natural gasoline production is forecast to increase to roughly 450,000 b/d by 2020.”

Before Eagle Ford, Kinder Morgan Targeted Marcellus

Pennsylvania’s Marcellus Shale basin was Kinder Morgan’s first choice pick for sourcing tar sands diluent for export to Alberta. It wasn’t until that plan failed that the Eagle Ford Shale basin in Texas became Plan B.

Known then as the Kinder Morgan Cochin Marcellus Lateral Project proposal, the project fell by the wayside in February 2012.

“The company’s Cochin Marcellus Lateral Pipeline would have started in Marshall County, West Virginia, and transported natural gas liquids from the Marcellus producing region of Pennsylvania, West Virginia and Ohio,” wrote the Mount Vernon News of the canned project. [It] would [then] carry the [natural gas] liquids to processing plants and other petrochemical facilities in Illinois and Canada.”

“Kinder Magic”: More to Come?

Industry market trends publication RBN Energy described Kinder Morgan’s dominance of the tar sands diluent market as “Kinder Magic” in a January 2013 article.

“These are still early days for the developing condensate business in the Gulf Coast region,” RBN Energy’s Sandy Fielden wrote. “Plains All American and Kinder Morgan are developing the potential to deliver at least 170,000 barrels per day of Eagle Ford condensate as diluent to the Canadian tar sand fields in Alberta by the middle of 2014.”

Fielden explained we could see many more of these projects arise in the coming years.

“We have a sense that before too long there will be many more condensate infrastructure projects showing up like ‘magic’ in midstream company presentations.”

While the industry press coverage sounds optimistic, it doesn’t account for the concurrent rise of public opposition to dirty energy pipelines and expansion plans in the fracking and tar sands arenas, so only time will tell the fate of Cochin and its kin.

Fracking “Shock Doctrine” Unveiled as 2013 Illinois Legislative Session Nears End

1:48 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Fracking

The shale gas industry has performed the “shock doctrine” at the 11th hour of the 2013 Illinois State Legislature’s debateover hydraulic fracturing (“fracking”), the toxic horizontal drllling process through which oil and gas is obtained from shale rock basins nationwide.

This year, both the Illinois House and Senate are set to adjourn for the year on May 31 and HB 2615 – the Hydraulic Fracturing Regulation Act - will likely receive a full floor vote by adjournment. The regulatory bill has 59 House co-sponsors and eight Senate co-sponsorsDemocratic Party Gov. Pat Quinn said he will sign the bill when it arrives on his desk.

With the deadline looming rapidly, anti-fracking activists – or “fracktivists” – have been protestingsitting intestifying in committee hearings and committing acts of non-violent civil disobedience daily at the Illinois State Capitol in Springfield.

Two days before that deadline, the Associated Press (AP) reported that records from the state Department of Natural Resources (DNR) indicate fracking already has begun in Illinois’ New Albany Shale Basin.

“Carmi, Ill.-based Campbell Energy LLC submitted a well-completion report last year to the [DNR] voluntarily disclosing that it used 640,000 gallons of water [fracking] a well in White County,” AP reports. AP also explained the report was first obtained by the Natural Resources Defense Council (NRDC).

The last-minute announcement paves the way for a “buzzer beater” public relations effort by the industry to ram through a regulatory bill deemed the “most comprehensive fracking legislation in the nation” by its proponents and a “worst case scenario” by its detractors. The bill was predominatly written by Illinois Oil and Gas Association (IOGA), working alongside two major environmental groups: the Illinois Sierra Club and NRDC.

NRDC told DeSmogBlog it caught wind of the Campbell Energy well-completion report not from the industry itself at the negotiating table, but through a Freedom of Information Act (FOIA) request. The FOIA request also showed another company has fracked a well: Strata-X Energy Ltd.

Among other things, the bill allows fracking to take place within 1,500 feet of groundwater sources and 500 feet of schools, houses, hospitals, nursing homes, and places of worship; and within 300 feet of rivers, lakes, ponds and reservoirs. Necessary context: the horizontal drilling portion of the fracking process extends between 5,000-7,500 feet.

“We need to acknowledge that fracking is legal today in Illinois, and for all we know, may already be occurring as you read this,Sierra Club Illinois‘ Director Jack Darin wrote ambiguously in a Feb. 2013 Huffington Post piece.

Darin’s ominous hypothetical scenario proved true, begging the question: did the industry hide this from those it was at the negotiating table with until the last minute? Darin could not be reached for comment at the time this article went to press.

Fracking Well Owned by IOGA Board Member, Connected to Lake Michigan Oil Drilling

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“Gasland 2″ Grassroots Premiere in Illinois Highlights Industry PSYOPS and Ongoing Fracking Fights

11:10 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

 

Gasland Promo image

Gasland Part 2 continues documenting energy industry spin and climate change.

Gasland 2 screened yesterday in Normal, IL and DeSmogBlog was there to gain a sneak peak of the documentary set for a July 8 HBO national premiere.

Josh Fox’s documentary played at the Normal Theater, the second-ever screening since the film officially premiered on April 21 at the Tribeca Film Festival in New York City

The movie builds on Fox’s Academy Award-nominated Gasland, further making the case of how the shale industry’s hydraulic fracturing (“fracking”) boom is busting up peoples’ livelihoods, contaminating air and water, polluting democracy and serving as a “bridge fuel” only to propel us off the climate disruption cliff. 

A central theme and question of the film is, “Who gets to tell the story?” That is, industry PR pros and bought-off politicians utilizing the “tobacco playbook” and saying “the sky is pink,” or families directly injured by the industry? Fox explains how the industry has gamed the system, ensuring the communities have their voices drowned out. The Gasland films seek to tell some of the victims’ stories. 

Another theme is the bread and butter of following any big industry’s influence: following the money. In depicting the financial clout of Big Oil, Gasland 2 shows that the oil and gas industry has gone to the lengths of deploying warfare tactics – literally – on U.S. citizens to ram through its agenda. 

PSYOPs Use by Gas Industry PR Flacks Featured

Much of the content in Gasland 2 has also been covered on DeSmogBlog over the past few years.

Robert Howarth’s and Anthony Ingraffea’s prominent “Cornell Study” receives some good play in the film. Howarth and Ingraffea demonstrated that from cradle to grave, fracked gas has a more dangerous global warming effect than coal, a death knell to the “natural gas as a bridge fuel” meme. President Obama’s deployment of American Petroleum Institute “jobs” talking points for fracking is in there too.

Former head of the Dept. of Homeland Security under President George W. Bush and Republican Gov. of Pennsylvania, Tom Ridge, also takes a beating in the film. His appearance on “The Colbert Report” is righteously roasted, the same appearance in which he lied to U.S. citizens and declared he was “not a lobbyist” even though he was registered to lobby at that time for the U.S. Chamber of Commerce.

Tailsman Terry the Fracosaurus,” which demonstrates the industy’s willingness to utilize propaganda on young children, receives a similar round of ridicule in Gasland 2. Fox also explains the oil industry’s use of Big Tobacco’s Playbook through interviews with Naomi Oreskes, author of Merchants of Doubt, a major theme of our coverage of both the shale gas industry and the Tea Party

Steve Lipsky, who was left in the dust by Range Resouces and the Environmental Protection Agency (EPA), is one of the central characters of the film. The major villain of that tale is former PA Democratic Gov. Ed Rendell, who helped derail and censor the EPA’s fracking groundwater contamination study motivated by Lipsky’s water contamination in Weatherford, TX.

While the prospective shale gas export boom is covered in some depth in the film, so too is the concept of the government-industry revolving door, particularly as it pertains to Pennsylvania. The Public Accountability Initiative’s study “Fracking and the Revolving Door in Pennsylvania” is featured in the film, a study we also covered.

Last but certainly not least, Gasland 2 devotes an entire section to the industry’s admitted use of psychological warfare tactics (PSYOPs) on U.S. citizens, as we first revealed in Nov. 2011.

The Houston PR conference referred to in the film is one I attended and covered in some depth. It was a gathering of industry public relations executives talking among friends about how to best manipulate mainstream media journalists, divide and conquer anti-fracking activists, and intimidate local communities to go along with fracking operations that endanger their health and drinking water.

Gasland 2 presents the audio of Range Resouces Director of Corporate Communications and Public Affairs Matt Pitzarella revealing that Range hires PSYOPs Iraq War veterans to use their skills to pressure local communities. The film also features Anadarko Petroleum External Affairs Manager Matt Carmichael advising gas industry PR pros to read the Army “Counterinsurgency Field Manual” and “Rumsfeld’s Rules,” because “we are dealing with an insurgency.”

Both audio clips were obtained by Earthworks’ Sharon Wilson at the conference and provided to media by Earthworks and DeSmogBlog. CNBC first broke the story on Nov. 8, 2011.

Illinois Fracking Fight Wages On

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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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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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ALEC, CSG, ExxonMobil Fracking Fluid “Disclosure” Model Bill Failing By Design

11:02 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Official portrait of Representative DeGette

Representative Diana DeGette says fracking bills make a mockery of disclosure.

Last year, a hydraulic fracturing (“fracking”) chemical fluid disclosure “model bill” was passed by both the Council of State Governments (CSG) and the American Legislative Exchange Council (ALEC). It proceeded to pass in multiple states across the country soon thereafter, but as Bloomberg recently reported, the bill has been an abject failure with regards to “disclosure.”

That was by design, thanks to the bill’s chief author, ExxonMobil.

Originating as a Texas bill with disclosure standards drawn up under the auspices of the Obama Administration’s Department of Energy Fracking Subcommittee rife with oil and gas industry insiders, the model is now codified as law in Colorado, Pennsylvania, and Illinois.

Bloomberg reported that the public is being kept “clueless” as to what chemicals are injected into the ground during the fracking process by the oil and gas industry.

“Truck-Sized” Loopholes: Fracking Chemical Fluid Non-Disclosure by Design

“Drilling companies in Texas, the biggest oil-and-natural gas producing state, claimed similar exemptions about 19,000 times this year through August,” explained Bloomberg. “Trade-secret exemptions block information on more than five ingredients for every well in Texas, undermining the statute’s purpose of informing people about chemicals that are hauled through their communities and injected thousands of feet beneath their homes and farms.”

For close observers of this issue, it’s no surprise that the model bills contain “truck-sized” loopholes.

“A close reading of the bill…reveals loopholes that would allow energy companies to withhold the names of certain fluid contents, for reasons including that they have been deemed trade secrets,” The New York Times explained back in April.

Disclosure Goes Through FracFocus, PR Front For Oil and Gas Industry

The model bill that’s passed in four states so far mandates that fracking chemical fluid disclosure be conducted by FracFocus, which recently celebrated its one-year anniversary, claiming it has produced chemical data on over 15,000 fracked wells in a promotional video.

The reality is far more messy, as reported in an August investigation by Bloomberg.

“Energy companies failed to list more than two out of every five fracked wells in eight U.S. states from April 11, 2011, when FracFocus began operating, through the end of last year,” wrote Bloomberg. “The gaps reveal shortcomings in the voluntary approach to transparency on the site, which has received funding from oil and gas trade groups and $1.5 million from the U.S. Department of Energy.”

This moved U.S. Representative Diana DeGette (D-CO) to say that FracFocus and the model bills it would soon be a part of make a mockery of the term “disclosure.”

“FracFocus is just a fig leaf for the industry to be able to say they’re doing something in terms of disclosure,” she said.

“Fig leaf” is one way of putting it.

Another way of putting it is “public relations ploy.” As Dory Hippauf of ShaleShock Media recently revealed in an article titled “FracUNfocusED,” FracFocus is actually a PR front for the oil and gas industry.

Hippauf revealed that FracFocus‘ domain is registered by Brothers & Company, a public relations firm whose clients include America’s Natural Gas Alliance, Chesapeake Energy, and American Clean Skies Foundation – a front group for Chesapeake Energy.

Given the situation, it’s not surprising then that “companies claimed trade secrets or otherwise failed to identify the chemicals they used about 22 percent of the time,” according to Bloomberg‘s analysis of FracFocus data for 18 states.

Put another way, the ExxonMobil’s bill has done exactly what it set out to do: business as usual for the oil and gas industry. Read the rest of this entry →