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Documents: Cheniere Fuels ALEC’s New Push for Fracked Gas Exports

7:18 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Two LNG storage tanks, one labelled with Cheniere logo

Cheniere is pushing ALEC to encourage exporting of fracked gas.

Today, legislative and lobbyist members of the American Legislative Exchange Council (ALEC) voted on model legislation promoting both exports of gas obtained via hydraulic fracturing (“fracking”) and vehicles powered by compressed natural gas (CNG).

Dubbed a “corporate bill mill” by its critics, ALEC is heavily engaged in a state-level effort to attack renewable energy and grease the skids for exports of U.S. oil and gas. Today’s bills up for a vote — as conveyed in an ALEC mailer sent out on June 25 by ALEC’s Energy, Environment and Agriculture Task Force — are titled “Resolution In Support of Expanded Liquefied Natural Gas Exports“ and “Weights and Measures and Standards for Dispensing CNG and LNG Motor Fuels.”

An exclusive investigation conducted by DeSmogBlog reveals that Cheniere — the first U.S. company to receive a final liquefied natural gas (LNG) export permit by the U.S. Federal Energy Regulatory Commission (FERC) — has acted as the lead corporate backer of the LNG exports model resolution.

Further, Clean Energy Fuels Corporation, owned by energy baron T. Boone Pickens, of Pickens Plan fame, and trade associations it is a member of, served as the main pusher of the CNG model resolution.

ALEC has served as a key vehicle through which the fracking industry has curried favor and pushed for policies favorable to their bottom lines in statehouses nationwide. Now ALEC and its corporate backers have upped the ante, pushing policies that will lock in downstream demand for fracked gas for years to come.

With Cheniere becoming an ALEC dues-paying member in May 2013 and with America’s Natural Gas Alliance (ANGA) — the fracking industry’s tour de force — crowned an ALEC member in August 2013, it looks like many more fracking-friendly model bills could arise out of ALEC in the months and years ahead.

According to a document obtained by the Center for Media and Democracy, top ALEC 2014 Annual Meeting sponsors in Dallas include ANGA, ExxonMobil, Chevron, Devon Energy, and TransCanada, among others.

LNG exports will serve as the focus for part one of this series, while CNG vehicles will serve as the focus for part two.

“LNG Day”

The genesis of the Cheniere-backed model bill is tied to a March 26 “LNG Day” reception put together in Baton Rouge, La. on March 26 by the influential lobbying firm, The Picard Group.

“LNG Day gives Legislators the opportunity to learn more about the benefits of natural gas,” exclaimed a press release featuring a photo of the event taken by Dawn Cole of The Picard Group. “Attendance was great and the day was successful.”

That release was disseminated by the Louisiana Mid-Continent Oil and Gas Association, of which Cheniere is a member. Among The Picard Group’s clients: Cheniere, which it is registered to lobby for in Louisiana.

Emails obtained by DeSmogBlog under Louisiana Public Records Act reveal that Laura MacDiarmid, who works as a government and environmental affairs analyst for Cheniere, was copied on email outreach by The Picard Group to Louisiana state representatives inviting them to participate in LNG Day.

Further, “Our Energy Moment“ — the gas industry-funded propaganda campaign promoting LNG exports — put out a release of its own promoting “LNG Day.”

That release featured a quote from Jason French, listed only as a “spokesperson for the Our Energy Moment coalition” in the release. In reality, French serves as director of government and public affairs for Cheniere.

French wrote an article published in the July/August 2013 edition of “Inside ALEC” titled, “LNG Exports – A Story of American Innovation and Economic Opportunity” and also gave a presentation on LNG exports at ALEC’s 2013 Annual Meeting held in Chicago, Ill.

Via email, French confirmed with DeSmogBlog that he will also be giving a presentation at this year’s ALEC meeting in Dallas on LNG exports immediately before the model resolution promoting them receives a vote by ALEC member legislators and corporate lobbyists.

LNG Day, though, was more than a gas industry-manufactured media event. Out of it arose House Concurrent Resolution 29, co-sponsored by Speaker of The House, Rep. Chuck Kleckley and Sen. John A. Alario, Jr. (an ALEC member).

Alario, Jr. has taken significant campaign money from LNG exporters, such as ExxonMobil, Energy Transfer Partners and Sempra.

After HCR 29 passed the House under suspended rules, it also passed unanimously in a 36-0 vote in the Senate on March 25. The next evening after the lights went off on the day-time LNG Day festivities, lobbyists and legislators convened for a corporate-sponsored reception at the Jimmie Davis House.

Among the sponsors — a copy of the invitation obtained via Louisiana Public Records Act shows — were those set to benefit most from a policy of plentiful LNG exports: the frackers and the LNG exporters, such as Chesapeake Energy, ANGA, Our Energy Moment, Cheniere, Trunkline LNG, Magnolia LNG and Sempra LNG and others.

Guessing at Numbers and Figures

The language found within HCR 29 mirrors that found within the ALEC model resolution.

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Report: Obama Exporting Climate Change by Exporting Coal

3:40 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Greenpeace USA has released a major new report on an under-discussed part of President Barack Obama’s Climate Action Plan and his U.S. Environmental Protection Agency (EPA) carbon rule: it serves as a major endorsement of continued coal production and export to overseas markets.

Leasing Coal, Fueling Climate Change: How the federal coal leasing program undermines President Obama’s Climate Plan” tackles the dark underbelly of a rule that only polices coal downstream at the power plant level and largely ignores the upstream and global impacts of coal production at-large.

The Greenpeace report was released on the same day as a major story published by the Associated Press covering the same topic and comes a week after the release of another major report on coal exports by the Sightline Institute that sings a similar tune.

The hits keep coming: Rolling Stone’s Tim Dickinson framed what is taking place similarly in a recent piece, as did Luiza Ch. Savage of Maclean’s Magazine and Bloomberg BNA.

But back to Greenpeace. As their report points out, the main culprit for rampant coal production is the U.S. Bureau of Land Management (BLM), which leases out huge swaths of land to the coal industry. Greenpeace says this is occurring in defiance of Obama’s Climate Action Plan and have called for a moratorium on leasing public land for coal extraction.

“[S]o far, the Bureau of Land Management and Interior Department have continued to ignore the carbon pollution from leasing publicly owned coal, and have failed to pursue meaningful reform of the program,” says the report.

“Interior Secretary Sally Jewell and others in the Obama administration should take the President’s call to climate action seriously, beginning with a moratorium and comprehensive review of the federal coal leasing program, including its role in fueling the climate crisis.”

Dirty Details

Some of the numbers crunched by Greenpeace USA make the jaw drop.

For example, one chart shows the amount of coal leased by the BLM during Obama’s time in the White House. During that time, the BLM has leased off billions of tons of coal from Colorado, Montana and North Dakota, New Mexico, Utah, and Wyoming alone.

As Greenpeace points out, “This is equivalent to the annual emissions of over 825 million passenger vehicles, and more than the 3.7 billion tons that was emitted in the entire European Union in 2012.”

Further, in crunching the numbers on the social cost of carbon metrics, Greenpeace estimates producing all of this BLM-leased coal will cause between $52-$530 billion in damages.

recent major, precedent-setting federal court decision chided BLM for not taking the social cost of carbon into account in leasing out a plot of land for coal production. It remains unclear whether or not this will impact BLM’s future coal leasing activities, however.

Germany’s “Clean Break” or Greenwashing?

Interestingly and perhaps shockingly to many, much of this coal is being exported to Germany, home of what some have hailed the epicenter of the global green energy revolution. Though German coal mining is going by the wayside, imports are rising.

“German coal mining has been a dying tradition. The government will end subsidies in 2018, effectively killing it,” explained the Associated Press story.

“However, Germany is experiencing a resurgence in coal-fired power. Five German coal plants have been built since 2008, and more are coming…The result: In 2013, Germany’s emissions of carbon dioxide grew by 1.2 percent.”

Dirk Jansen, spokesman for Friends of the Earth-Germany, called the situation at-large tantamount to “greenwashing” in an interview with the Associated Press.

“Obama pretties up his own climate balance, but it doesn’t help the global climate at all if Obama’s carbon dioxide is coming out of chimneys in Germany.”

Beyond Obama, though, it raises equally troubling questions about just how “clean” Germany’s clean break will be when all is said and done.

Not Just the Atlantic: Obama Leasing Millions of Gulf Acres for Offshore Drilling

9:39 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog 

Deepwater Horizon

Deploying the age-old “Friday news dump,” President Barack Obama’s Interior Department gave the green light on Friday, July 18 to companies to deploy seismic air guns to examine the scope of Atlantic Coast offshore oil-and-gas reserves.

It is the first time in over 30 years that the oil and gas industry is permitted to do geophysical data collection along the Atlantic coast. Though decried by environmentalists, another offshore oil and gas announcement made the same week has flown under the radar: over 21 million acres of Gulf of Mexico offshore oil and gas reserves will be up for lease on August 20 in New Orleans, Louisiana at the [Mercedes-Benz] Superdome.

On July 17, the U.S. Department of Interior’s Bureau of Ocean Energy Management (BOEM)  announced the lease in the name of President Obama’s “all of the above” energy policy.

“As part of President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production, BOEM…today announced that the bureau will offer more than 21 million acres offshore Texas for oil and gas exploration and development in a lease sale that will include all available unleased areas in the Western Gulf of Mexico Planning Area,” proclaimed a July 17 BOEM press release.

The release says this equates to upwards of 116-200 million barrels of oil and 538-938 billion cubic feet of natural gas and falls under the banner of the U.S.-Mexico Transboundary Hydrocarbon Agreement.

That Agreement was signed into law on December 26, 2013. It served as a precursor to the recently-passed Mexican oil and gas industry privatization reforms, which have opened the floodgates to international oil and gas companies to come into Mexico for onshore and offshore oil and gas exploration and production.

Tourist Hot Spots Port Isabel, South Padre Island for Sale

According to BOEM’s Proposed Notice of Sale Package, dozens of blocks sitting in close proximity to both Port Isabel and South Padre Island will be auctioned off during the August 20 lease. Both Port Isabel and South Padre Island are vacation and tourist hot spots, which were visited during a recent vacation by this writer.

(click to embiggen)

In total, an enormous 4,057 blocks of Gulf of Mexico oil and gas reserves are up for lease on August 20 in the Superdome.

Climate Action Plan?

The Obama Administration will auction off the thousands of blocks of Gulf of Mexico oil and gas leases in the midst of rolling out its Climate Action Plan, best known to some simply as the U.S. Environmental Protection Agency’s carbon rule for coal-fired power plants.

Ruled out of Obama’s Climate Action Plan, however, is any second-guessing of his “all of the above” energy policy.

While critics of the climate plan have noted the carbon rule is a full-fledged embrace of hydraulic fracturing (“fracking”) for onshore oil and gas, another undeniable truism has arisen: it’s also a full-fledged embrace of offshore drilling for oil and gas both in the Gulf — and perhaps soon in the Atlantic. Read the rest of this entry →

Obama Patron Warren Buffett Buys Over $500 Million of Suncor Tar Sands Stock

1:01 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

President Obama bestowing the Medal of Freedom on Warren Buffett

Warren Buffett — the fourth richest man on the planet and major campaign contributor to President Barack Obama in 2008 and 2012 – may soon get a whole lot richer.

That’s because he just bought over half a billion bucks worth of Suncor Energy stock: $524 million in the second quarter of 2013, to be precise, according to Securities and Exchange Commission filings. Suncor is a major producer and marketer of tar sands via its wholly owned subsidiary Petro-Canada (formerly Sunoco) and this latest development follows a trend of Buffett enriching himself through dirty investments and deal-making.

So far in 2013, Suncor (formerly Sun Oil Company) has produced 328,000 barrels per day of tar sands crude.

Though he receives far less negative press than the Koch Brothers, Buffett’s no deep green ecologist. Not in the slightest.

Referred to as one of 17 “Climate Killers” by Rolling Stone‘s Tim Dickinson in a January 2010 story, Buffett owns the behemoth holding company, Berkshire Hathway. It’s through Berkshire that he’s making a killing – while simultaneously killing the ecosystem – through one of its most profitable wholly-owned assets: Burlington Northern Santa Fe (BNSF).

Buffett purchased BNSF for $26 billion and was “the largest acquisition of Buffett’s storied career,” Dickinson wrote.

BNSF hauls around frac sand for the controversial horizontal oil and gas drilling process known as “fracking.” The rail company also moves fracked oil from North Dakota’s Bakken Shale basin, tar sands logistical equipment and tar sands crude itself and tons of coal. And not only does Buffett’s BNSF haul around ungodly amounts of coal, he actually owns coal-burning utility companies, too.

“BNSF is the nation’s top hauler of coal, shipping some 300 million tons a year. That’s enough to light up 10 percent of the nation’s homes — many of which are powered by another Berkshire subsidiary, MidAmerican Energy,” Dickinson explained.

Beyond MidAmerican Energy, Buffett also owns the coal-burning PacifiCorp and his BNSF freight trains are largely responsible for the coal export boom unfolding in the northwest corridor of the United States.

“PacifiCorp…owns the most coal plants in the West and recently unveiled a long-term energy plan that did not include a single wind project over the next ten years,” explained a recent blog post written by the Sierra Club. “And Warren Buffett is still involved with one of the biggest coal-burning schemes of all — ongoing plans to export coal…to…Asia.”

“Buffett’s BNSF Railway would be the primary transporter of that coal, and the company has tried to get the coal export terminals approved over the objections of thousands of activists across the Pacific Northwest.”

And as his slam dunk, Buffett also has plans to convert BNSF’s freight trains to utilize fracked shale gas. He then plans to use those same shale gas-powered trains to transport fracked shale oil from North Dakota (5-percent of BNSF’s total shipments and 190,000 cars/week), a win-win for Buffett and a lose-lose for the ecosystem and the climate.

“We have a couple locomotives we’re experimenting with this year on it. The railroads are definitely experimenting with converting to natural gas,” he told CNBC’s Jim Cramer in a March 2013 interview. “[Y]ou’ve got to look at converting any kind of an engine to natural gas.”

‘Tis quite the list of “dirty deeds” by the man coined the “Oracle of Omaha.” And relative to his uber-wealth – to cue up the AC/DC – they’re “done dirt cheap.” Read the rest of this entry →

Smoke and Mirrors: Obama DOE Fracked Gas Export Study Contractor’s Tobacco Industry Roots

4:19 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

At first, it was kept secret for months, cryptically referred to only as an “unidentified third-party contractor.”

Finally, in November 2012, Reuters revealed the name of the corporate consulting firm the U.S. Department of Energy (DOE) hired to produce a study on the prospective economic impacts of liquefied natural gas (LNG) exports.

LNG is the super-chilled final product of gas obtained – predominatly in today’s context – via the controversial hydraulic fracturing (“fracking”) process taking place within shale deposits located throughout the U.S. This “prize” 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 firm: National Economic Research Associates (NERA) Economic Consulting, has a long history of pushing for deregulation. Its claim to fame: the deregulation “studies” it publishes on behalf of the nuclear, coal, and oil/gas industry – and as it turns out, Big Tobacco, too.

Alfred E. Kahn, the late “Father of Deregulation,” founded NERA in 1961 along with Irwin Stelzer, now a senior fellow and director of the right-wing Hudson Institute’s Center for Economic Policy. 

The NERA/Obama DOE LNG export economic impact study, released in early-December 2012, concluded that exporting the U.S. shale gas bounty is in the best economic interest of the country. 

This conclusion drew metaphorical hisses from many analysts, including prominent shale gas market economist and former Wall Street investor Deborah Rogers, who now maintains the blog Energy Policy Forum. Her critique cut straight to the very foundation of the study itself, stating that “economic model[s] are only as good as their inputs.”

She proceeded to explain,

In fact, it is neither difficult nor unusual for models to be designed to favor one outcome over another. In other words, models can be essentially reverse engineered. This is especially true when the models have been commissioned by industries that stand to gain significantly in monetary terms. Or government agencies which are perhaps pushing a political agenda.

Beyond its history working as a hired gun for the fossil fuel industry, NERA also has deeper historical roots producing “smoke and mirrors” studies on behalf of the tobacco industry. The long view of the firm’s past is something NERA would likely rather see “go up in smoke,” forever buried in the historical annals. But that would be a disservice to U.S. taxpayers since NERA continues to receive government contracts to produce tobacco-era disinformation to this day. 

NERA and the “Tobacco Playbook”

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Revealed: NERA Economic Consulting is Third Party Contractor for DOE LNG Export Study

7:33 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Retuers has revealed the identity of the mysterious third party contractor tasked to publish the economic impact study on LNG (liquefied natural gas) exports on behalf of the Department of Energy (DOE). Its name: NERA Economic Consulting.

“NERA” is shorthand for National Economic Research Associates, an economic consulting firm SourceWatch identifies as the entity that published a June 2011 report on behalf of coal industry front group American Coalition for Clean Coal Electricity (ACCCE). ACCCE’s report concluded, “clean-air rules proposed by the Obama administration would cost utilities $17.8 billion annually and raise electricity rates 11.5 percent on average in 2016.”

That report went so far to say that Environmental Protection Agency (EPA) regulations of the coal-generated electrcity sector would amount to some 1.5 million lost jobs over the next four years.

NERA was founded by Irwin Stelzer, senior fellow and director of the right-wing Hudson Institute’s Center for Economic Policy. In Oct. 2004, The Guardian described Stelzer as the “right-hand man of Rupert Murdoch,” the CEO of News Corp., which owns Fox News.

According to NERA’s website, the late Alfred E. Kahn, the “father of deregulation,” advised NERA’s 1961 foundation.

In 2010, NERA published a letter to the New York Department of Environmental Protection (DEP) to protest the prospective closure of theIndian Point Nuclear Power Plants.

A NERA report from earlier this year provided the basis for the popular King Coal refrain that the EPA’s Mercury and Air Toxics Standards (MATS) Rule would cost the U.S. tens of billions of dollars and “kill” 180,000-215,000 jobs.

These figures were picked up and cited by climate change denier U.S. Sen. James Inhofe (R-OK) in June when he spoke out against President Barack Obama’s mythological “war on coal,” as well as by the Republican Policy Committee in a May policy paper titled, “Obama’s War on Coal.”

With a track record like this, it’s best to view whatever report the Obama Administration’s DOE (aka NERA) produces on the economic impact of LNG exports, set to come out by the end of the year, with extreme skepticism if not downright hostility.

As You Sow: Coal Investments, Shale Gas, a Bad Bet

12:58 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Two lumps of coal

Photo: Jeffrey Beall / Flickr

In a missive titled “White Paper: Financial Risks of Investments in Coal,” As You Sow concludes that coal is becoming an increasingly risky investment with each passing day. The fracking boom and the up-and-coming renewable energy sector are quickly superseding King Coal’s empire as a source of power generation, As You Sow concludes in the report.

As You Sow chocks up King Coal’s ongoing demise to five factors, quoting straight from the report:

1. Increasing capital costs for environmental controls at existing coal plants and uncertainty about future regulatory compliance costs

2. Declining prices for natural gas, a driver of electric power prices in competitive markets

3. Upward price pressures and price volatility of coal

4. High construction costs for new coal plants and unknown costs to implement carbon capture and storage

5. Increasing competitiveness of renewable generation resources

Prong one pertains to what groups like the American Legislative Exchange Council (ALEC), the Republican Party at-large, and the conservative media echo chamber have coined a “War on Coal” and a “Regulatory Train Wreck,” echoing what the shale gas industry’s PR squad has coined a “War on Shale Gas.”

According to As You Sow, regulations have tied the hands of the coal industry to a sufficient level that it’s no longer as lucrative of a venture to make a capital investment into coal as it is to invest in the shale gas and renewable energy industries. “Uncertainty about future regulations plagues coal plant operators who face the incremental imposition of more stringent standards over time,” As You Sow explained.

Shale Gas “Killing” Coal Power Plants

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