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Follow the Money: Three Energy Export Congressional Hearings, Climate Undiscussed

9:33 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

A joint meeting of the US Congress

Congress keeps talking, but not about climate change.

In light of ongoing geopolitical tensions in Russia, Ukraine and hotly contested Crimea, three (yes, three!) U.S.Congressional Committees held hearings this week on the U.S. using its newfangled oil and gas bounty as a blunt tool to fend off Russian dominance of the global gas market.

Though 14 combined witnesses testified in front of the U.S. Senate Committee on Energy and Natural Resources, the U.S. House Energy and Commerce Committee’s Subcommittee on Energy and Power and U.S. Senate Committee on Foreign Relations, not a single environmental voice received an invitation. Climate change and environmental concerns were only voiced by two witnesses.

Using the ongoing regional tumult as a rationale to discuss exports of U.S. oil and gas obtained mainly via hydraulic fracturing (“fracking”), the lack of discussion on climate change doesn’t mean the issue isn’t important to national security types.

Indeed, the Pentagon’s recently published Quadrennial Defense Review coins climate change a “threat force multiplier” that could lead to resource scarcity and resource wars. Though directly related to rampant resource extraction and global oil and gas marketing, with fracking’s accompanying climate change and ecological impacts, “threat force multiplication” impacts of climate change went undiscussed.

With another LNG (liquefied natural gas) export terminal approved by the U.S.Department of Energy (DOE) in Coos Bay, Ore., to non-Free Trade Agreement countries on March 24 (the seventh so far, with two dozen still pending), the heat is on to export U.S. fracked oil and gas to the global market.

So, why wasn’t the LNG climate trump card discussed in a loud and clear way? Well, just consider the source: ten of the witnesses had ties in one way or another to the oil and gas industry.

Senate Committee on Energy and Natural Resources

Headed by recently named chair U.S. Sen. Mary Landrieu (D-LA), the March 25 U.S. Senate Energy and Natural Resources Committee hearing featured four of five witnesses with industry ties, all of which went undisclosed. It was titled, “Importing Energy, Exporting Jobs. Can it be Reversed?”

“The last thing Putin and his cronies wants (sic) is competition from the United States of America in the energy race,” Landrieu declared in her opening statement. “Tyrants and dictators throughout history have had many reasons to fear revolutions, and this U.S. energy revolution is one they should all keep their eyes on!” More on that later.

Given the enthusiasim conveyed in her statement, perhaps it’s unsurprising Landrieu — whose state of Louisiana is an oil and gas industry hub like few others — also has close industry ties.

Up for re-election in 2014, Landrieu has already taken close to half a million dollars from the industry to the chagrin of environmentalistsCommittee Ranking Member Lisa Murkowski (R-AK) has taken $40,600 during this campaign cycle, as well, even though she isn’t up for re-election until 2016.

Daniel Adamson, senior counsel for the committee, worked as a lobbyist fornatural gas utility company Avista Corporation from 2004-2010.

And now for the witnesses:

Adam Sieminski: Before taking the seat as head of the U.S. Energy Information Administration (EIA) in 2012, Sieminski worked in the fossil fuel finance sector.

“From 2005 until March 2012, he was the chief energy economist for Deutsche Bank, working with the bank’s global research and trading units,” explains his EIAbiography. “From 1998 to 2005, he served as the director and energy strategist for Deutsche Bank’s global oil and gas equity team.”

- W. David Montgomery: Testifying at both this committee hearing and the U.S.House Energy and Commerce Committee’s Subcommittee on Energy and Power hearing, Montgomery is the senior vice president of NERA (National Economic Research Associates) Economic Consulting.

NERA penned a study on behalf of the DOE published in December 2012concluding LNG exports will be economically beneficial to the U.S. It recently published an updated follow-up study funded by Cheniere — the first company to receive a permit to export fracked U.S. gas in Sabine Pass, La., in 2012 — concluding “unlimited LNG exports benefit U.S.

Author of a 2009 paper titled, “Organized Hypocrisy as a Tool of Climate Diplomacy,” commissioned by the fossil fuel funded American Enterprise Institute, Montgomery is not a climate change denier. He just doesn’t think anything should be done to tackle climate change.

“Trying to bribe or coerce unwilling countries into curtailing their GHG emissions threatens to cause more harm than good,” he wrote in the American Enterprise Institute paper.

Montgomery sang a similar tune during a March 2011 U.S. House Committee on Science, Space and Technology hearing:

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Days Before Oil Train Explosion, Obama Signed Bill Hastening Fracking Permits on ND Public Lands

6:57 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Obama

President Obama eases fracking regulations days before explosive crash.

On December 20, both chambers of the U.S. Congress passed a little-noticed bill to expedite permitting for hydraulic fracturing (“fracking”) on public lands in the Bakken Shale basin, located predominantly in North Dakota. And on December 26, President Obama signed the bill into law.

Days later, on December 30, a Burlington Northern Santa Fe (BNSF) freight train owned by Warren Buffett carrying Bakken fracked oil exploded in Casselton, North Dakota. Locals breathed a smoky sigh of relief that the disaster happened outside the town center. In July 2013, a “bomb train” carrying Bakken oil exploded in Lac-Mégantic, Quebec, killing 47 people.

Dubbed the “Bureau of Land Management (BLM) Streamlining Act,” the bill passed unanimously in the Senate as S.244 and 415-1 in the House as H.R. 767, with Rep. Justin Amash (R-MI) serving as the sole “nay” vote and 16 representatives abstaining. Among the abstentions were representatives Peter Defazio (D-OR), Henry Waxman (D-CA) and John Campbell (R-CA).

H.R. 767′s sponsor is North Dakota Republican Rep. Kevin Cramer, who received $213,150 from the oil and gas industry prior to the 2012 election, and an additional $29,000 for the forthcoming 2014 elections.

Cosponsors include Wyoming Republican Rep. Cynthia Lummis ($109,050 from the oil and gas industry pre-2012 election, $28,500 in the 2014 election cycle), South Dakota Republican Rep. Kristi Noem ($95,501 from the industry pre-2012 election, $20,400 pre-2014) and Montana Republican Rep. Steve Daines ($124,620 pre-2012 election and $87,412 pre-2014).

S.244 is sponsored by Sen. John Hoeven (R-ND), who has taken $291,237 from the oil and gas industry since his 2010 election to Congress. Cosponsor Sen. Heidi Heitkamp (D-ND) received $111,050 from the oil and gas industry since her 2012 electoral victory.

Sen. Hoeven visited BNSF’s Fort Worth, Texas, corporate headquarters on January 3 to meet with the company’s CEO, Matt Rose, “to get an update on the Casselton derailment and measures that can be taken to enhance railroad safety.”

“While it’s a blessing that no one was hurt in this accident, we must now work with the National Transportation Safety Board (NTSB), industry and leaders on all levels to get to the root cause of this week’s derailment,” Hoeven said in a press statement, not mentioning the bill he sponsored will create additional oil-by-rail markets.

“We also need to rigorously review ways that shipping petroleum products by rail can be improved for safety.”

Energy Policy Act of 2005 Amendment

The BLM Streamlining Act passed into law by the Obama administration is actually an amendment to Section 365 of the Bush-era 2005 Energy Policy Act. It creates offices in North Dakota and Montana to rubber stamp fracking permits on public lands in those states.

Section 365 created a “Pilot Project to Improve Federal Permit Coordination” on public lands “to improve coordination of oil and gas permitting…as a means of meeting the Nation’s need for dependable, affordable, environmentally responsible energy,” explains the BLM website.

This compelled BLM to set up field offices to more efficiently fast track oil and gas drilling permits in Rawlins and Buffalo, Wyoming; Miles City, Montana; Farmington and Carlsbad, New Mexico; Grand Junction/Glenwood Springs, Colorado; and Vernal, Utah.

Left out of the original Section 365: North Dakota, the new darling of the U.S. domestic oil fracking scene. The BLM Streamlining Act ”[r]eplaces the Miles City, Montana field office with the Montana/Dakotas State Office,” creating an open season for fracking North Dakota’s public lands.

The Energy Policy Act of 2005 is perhaps most famous for the “Halliburton Loophole,” which exempted the fracking industry from the legal dictates of the Safe Drinking Water Act and other laws. The loophole also made the chemicals contained in “fracking fluid” a trade secret, meaning the industry doesn’t have to disclose the recipe of chemicals injected into the ground in fracking operations.

Obama Executive Order: Fast-Track Bakken Permits

In March 2012, President Obama issued Executive Order 13604, lending an explanation to his signing off on the BLM Streamlining Act.

Obama announced the Order while standing in front of the sections of pipe that would soon become the southern half of TransCanada’s Keystone XL pipeline (now rebranded the “Gulf Coast Pipeline“) in Cushing, Oklahoma (the “pipeline crossroads of the world“) — a pipeline that will be fast-tracked by the Order.

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Dollarocracy: U.S. Congressmen Refuse to Address Keystone XL Southern Half Spill Concerns

2:00 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog  

What’s the U.S. congressional response to the safety issues with the 485-mile southern half of TransCanada‘s Keystone XL pipeline raised by Public Citizen‘s Texas office? Mostly what Simon & Garfunkel called “The Sound of Silence” in their famous song.

DeSmogBlog contacted more than three dozen members of the U.S. Congress representing both political parties to get their take on Public Citizen’s alarming findings in its November investigation (including dents, metal that had to be patched up and pipeline segments labeled “junk”), but got little in the way of substantive responses.

Set to open for business on January 22approved via an Executive Order by President Barack Obama in March 2012 and rebranded the “Gulf Coast Pipeline Project” by TransCanada, the southern half of the pipeline has garnered far less media coverage than its U.S.-Canada border-crossing brother to the north, Keystone XL‘s northern half.

Over two dozen members of the U.S. House of Representatives wrote a letter to President Obama on December 12 expressing concern over the conflicts-of-interest in the U.S. State Department’s environmental review process for the northern half of the line.

But none of them would comment on concerns with the southern half of the line raised in the Public Citizen report after multiple queries via e-mail from DeSmogBlog.

Two to Tango

Only two out the dozens contacted offered somewhat substantive comments.

And one of them, U.S. Rep. Ralph Hall (R-TX) (Left), did not respond to the meat and bones of the question at hand. He did offer some oft-used industry talking points, though.

“The Keystone pipeline will create jobs and help reduce dependence on oil supplies from unfriendly nations,” Hall told DeSmogBlog. ”The State of Texas has a proven track record of successful oversight of the oil and gas industry, including pipelines, and I am confident that they will be diligent in ensuring the pipeline’s safety.”

Hall — who took $59,500 from the oil and gas industry before the 2012 elections and has already taken $12,500 for the upcoming 2014 elections — is far from a neutral stakeholder in the debate over anything pertaining to the petroleum industry.

“Since 2010, Hall has earned as much as $1 million from a company that holds mineral rights along the Barnett Shale,” explained a March 2013 Sunlight Foundation article. “The money was disclosed as dividends from a company called North & East Trading Co. (N&E).”

On the other side of the aisle, U.S. Rep. Gene Green (D-TX) (Right) also responded toDeSmogBlog‘s request for comment, offering more cautious words of support for the southern half of the pipeline’s commencement.

“Over the past decades, our interstate and intrastate pipeline systems have had remarkable safety records, unmatched by rail or highway modes of transportation,” Green stated. Read the rest of this entry →