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Obama Admin. Approves ALEC Model Bill for Fracking Chemical Fluid Disclosure on Public Lands

11:27 am in Uncategorized by Steve Horn

Natural gas drilling

On May 16, the Obama Interior Department announced its long-awaited rules governing hydraulic fracturing (“fracking”) on federal lands.

As part of its 171-page document of rules, the U.S. Bureau of Land Management (BLM), part of the U.S. Dept. of Interior (DOI), revealed it will adopt the American Legislative Exchange Council (ALEC) model bill written by ExxonMobil for fracking chemical fluid disclosure on U.S. public lands.

ALEC is a 98-percent corporate-funded bill mill and “dating service” that brings predominantly Republican state legislators and corporate lobbyists together at meetings to craft and vote on “model bills” behind closed doors. Many of these bills end up snaking their way into statehouses and become law in what Bill Moyers referred to as “The United States of ALEC.”

BLM will utilize an iteration of ALEC’s “Disclosure of Hydraulic Fracturing Fluid Composition Act” – a bill The New York Times revealed was written by ExxonMobil - for chemical fluid disclosure of fracking on public lands and will do so by utilizing FracFocus.org‘s voluntary online chemical disclosure database.

In a way, it’s all come full circle. As we covered here on DeSmogBlog, the original chemical disclosure standards and the decision to utilize FracFocus’ database came from the Obama Dept. of Energy’s (DOE) industry-stacked Fracking Subcommittee formed in May 2011. DOE gave a $1.5 million grant to FracFocus.

The Texas state legislature soon thereafter adopted the first bill making FracFocus the fracking chemical disclosure database at the state level in June 2011. Since then, it’s been off to the races, with the Council of State Governments adopting the TX bill as model bill in Aug. 2011, ALEC adopting it as a model bill in Oct. 2011, and the bill becoming state law in Colorado, Pennsylvania and other states.

Both the Illinois and Florida state legislatures have also tried to push through this model, but it died dead in its tracks.

FracFocus has been an anemic and failed effort by the Obama Admin. to alter the George W. Bush Admin. “Halliburton Loophole” standards for fracking chemical disclosure, which allowed the recipe of fracking chemicals to remain a “trade secret.” It’s amounted to nothing more than the same game by a different name, with a Harvard study recently giving FracFocus a “failing grade.”

The FracFocus Façade: “Truck-Sized” Disclosure Loopholes

Almost two years after FracFocus‘ debut, it is important to scrutinize its disastrous performance.

“Drilling companies in Texas, the biggest oil-and-natural gas producing state, claimed similar exemptions about 19,000 times this year through August,” explainedBloomberg in a Dec. 2012 investigation. “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.”

One representative from Texas – the original FracFocus state – said it allows “truck-sized” loopholes in chemical disclosure. An earlier investigative effort by Bloomberg explained just how big these 18-wheelers are.

“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. Rep. Diane DeGette, author of the FRAC Act – which would mandate actual fracking chemical disclosure, although it’s never garnered more than a handful of co-sponsors - to say FracFocus offers nothing more than the mirage of transparency.

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 a generous way of putting it. After all, FracFocus is merely a PR front for the oil and gas industry.

FracFocus‘ domain is registered by Brothers & Company, a public relations firm whose clients include industry lobbying tour de force America’s Natural Gas Alliance (ANGA), Chesapeake Energy, and American Clean Skies Foundation – a front group for Chesapeake Energy.

ALEC Model Bill Gone U.S. Public Lands in BLM Rules

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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 →