News

Pyle:Independence Day a Reminder of How Thoroughly Dependent We Are On Others forthe Energy We Need to Survive – Thanks in No Small Part to Our Government. IER president Thomas J. Pyle writes (7/6) forthe Daily Caller,"Happy Dependence Day! This weekend, we celebrated our nation’s most importantholiday-the birth of this great country and the freedoms and liberty itprovides us.  But while we celebratedour independence as a nation, we continue to face increasing and alarmingdependence in our energy sector, the lifeblood of our economy. There is nodoubt that the moratorium will lead to higher energy prices-a fact the markethas already started to digest. Additionally, thousands of oil rig workers areout of work.  And though themoratorium has been called a temporary "pause" in drilling and production,those thousands of unemployed workers have little reason to believe that theenergy companies that previously employed them will allow their extraordinarilyexpensive equipment to sit idle off our coast when other nations welcome theinvestment, jobs, and affordable energy resources these wells provide. Wecelebrated our independence Sunday by driving to visit family, grilling outwith friends, or even basking in the comfort of air conditioned homes. Weshould all take a moment to consider how important energy is to our Americanway of life.  And then rememberthat while we may celebrate Independence Day, a federal government that keepsenergy under lock and key ensures that we are anything but.

Speaking Of: In Matter ofMonths, Imports of Russian Crude to U.S. West Coast Go from ZERO Barrels a Dayto 100,000. WallStreet Journal (7/6) reports, "Russian oil has taken an unexpected turn tothe U.S., where it is making inroads on the West Coast. Oil refineries spanningthe area between the Puget Sound in the Pacific Northwest and greater LosAngeles have been quick to try out oil that is landing in tankers sent fromRussia’s eastern coast. Imports have gone from zero to an estimated 100,000barrels a day in a matter of months since a pipeline bringing crude from deepinside Eastern Siberia came online. The influx has held down fuel prices inplaces like California, which often has the highest gasoline prices in the U.S.Traders have been caught off guard because the oil pipeline was built to targetfast-growing Asian markets. Few people expected to see so many tankerloadsreach U.S. shores. Russia, which only recently joined the list of the top oilexporters to the U.S., is set to climb those rankings thanks to the EasternSiberia-Pacific Ocean pipeline, or ESPO. "Russian crude will beimportant," said Amrita Sen, a commodities analyst for Barclays Capital inLondon.

Doublin’ Down: Obama Admin AsksFederal Court to Reinstate Sweeping Moratorium on Energy Development Offshore -Jobs, Revenue, People Be Damned.  WallStreet Journal (7/6) reports, "The Obama administration asked a federal appealscourt Tuesday to reinstate a moratorium on deepwater petroleum drilling, sayingit is needed to reduce the chance of a second spill similar to the one nowspewing crude into the Gulf of Mexico. In a filing with the U.S. Court ofAppeals for the Fifth Circuit, Justice Department officials said a six-monthsuspension of drilling in more than 500 feet of water is in the "long-termpublic interest of the nation," and is needed to give the InteriorDepartment time to develop and implement new regulations to prevent anotherspill. The filing was in response to a federal judge’s decision in June toblock the moratorium, saying the Interior Department had trivialized theeconomic impact of the temporary ban. In the filing, the administration citednot only the "catastrophic impacts" of the accident on the DeepwaterHorizon drilling rig but also the risk of a second spill, "which industryhas shown limited ability to contain." In Louisiana, many politicians havesaid the ban is crippling an economy already walloped by curtailed fishing anda loss of tourism.

Legal Filing From InternationalAssociation of Drilling Contractors (IADC) Argues Continuation of ObamaOffshore Ban Will Increase Oil Spillage in the Gulf. HoustonChronicle (7/6) reports, "The Obama administration’s ban on deep-waterdrilling is arbitrary, unfounded and will cause "a catastrophic loss ofjobs," the International Association of Drilling Contractors argues in anew legal filing. The IADC questions "whether the local economy can evensurvive the moratorium," as across the Gulf Coast, rig workers are laidoff, contractors lose work and suppliers of everything from rope to groceriessee their sales plummet.  "Oneof the most ruinous effects of the moratorium is that it will drive mobile rigsto leave the Gulf for the waters of foreign countries," the associationwarns. As a result, the ban "will necessarily decrease U.S. oil productionand thus increase America’s dependence on foreign oil." The group goes onto note that because of the record of oil spills from tankers — generallyhigher than spills from blown-out wells — "the moratorium will increasethe risk of oil spillage in the Gulf." The association made its case in afriend-of-the-court brief as the 5th Circuit Court of Appeals in New Orleansprepares to hear an hour of arguments Thursday over whether it should stay atrial judge’s decision to block the ban.

Funny How: EPA’s Modeling NotSophisticated Enough to Estimate # of Jobs Lost from Its Policies, But Has NoTrouble Modeling # of "Lives Saved" (!) from NOx and SOx Rules.  Politico (7/6)reports, "EPA’s proposed Clean Air Transport Rule is the administration’s mostambitious effort to date to tackle conventional smog- and soot-formingemissions. The agency said its standards, when finalized next year, would leadto hundreds of billions of dollars in public health benefits and help avoid asmany as 36,000 premature deaths every year.  "We believe that today is marking a large and important stepin EPA’s effort to protect public health," said the agency’s top air pollutionofficial, Gina McCarthy. The EPA rule is more aggressive than an earlier effortin 2005 during President George W. Bush’s administration. A federal appealscourt struck down that standard, known as the Clean Air Interstate Rule,forcing EPA to go back to the drawing board to justify its limits for curbingsulfur dioxide and nitrogen oxides, pollutants linked to chronic and acutebronchitis, heart attacks, asthma, acid rain and poor visibility in nationalparks. Environmentalists are already ratcheting up their campaign to stop anypotential changes to the EPA’s air pollution rules, even if offered in exchangefor their long-sought goals on global warming. "I expect that overreaching fromthe utility sector," said John Walke, a senior attorney at the NaturalResources Defense Council. "They’ve been doing that for three decades."

Dream Team: Texas Gov. AssemblesBest and Brightest to Ask and Answer Toughest Questions on How and Where WeWill Produce Oil and Gas in the Future. AssociatedPress (7/6) reports, "A new group will pool Texas’ brightest minds to comeup with better and safer ways of drilling and producing oil and natural gas inthe wake of the Gulf oil spill, Gov. Rick Perry announced Tuesday.The GulfProject will focus on developing and testing current equipment as well as newtechnologies for the next generation of oil and gas drilling, Perry said. Thegroup also will look to develop better ways of monitoring the equipment onceit’s in place and improve training for responding to oil spills. "Texasmust take the lead in this effort because Texas leads in energy," Perrysaid at a news conference at Johnson Space Center, which he suggested couldhelp in testing new equipment. "We are perfectly suited to lead the effortinto improving safety and reliability in our continued quest for new and bettersources of energy." Texas’ energy industry supplies 20 percent of thenation’s oil production, one-fourth of its natural gas production, a quarter ofits refining capacity and nearly 60 percent of its chemical manufacturing. TheGulf Project will be comprised of researchers, policy experts and stateofficials. But Perry also called on the oil and gas industry to join in itsefforts.

Plane Stupid: Swiss Pilot Slatedto Go on World’s First (and Last) 24-Hour "Solar Flight" Cancels Trip at LastMinute – Maybe ‘Cuz Aircraft Only Travels 44 MPH. HoustonChronicle (7/6) reports, "A Swiss pilot was expected to go on the world’sfirst 24-hour solar flight in an ultralight plane with 12,000 solar cells gluedto its wings tomorrow, ClimateWire said. But the flight was postponed for thesecond time due to technical difficulties. Weather permitting, pilot AndreBorschberg was to fly the plane all day to soak up the sun’s rays and then flythrough the night, waiting for dawn for the batteries to recharge again. TheSolar Impulse HB-SIA plane, with a wingspan roughly the size of a Boeing 747jumbo jet, but around the same size as a family car, uses solar cells to powerfour electric engines and recharge lithium batteries. The plane travels at anaverage speed of 44 mph and can go up to 26,000 feet, ClimateWire said. Theflight is propelled by 40-horsepower electric engines, roughly the same poweras a scooter. The website said they are unable to announce another date for thenext trial yet, but promise to update with further information as it develops.

Authorof New Study Commissioned by IER – Which Finds Kerry-Lieberman Leads toHemorrhaging of 5.1 Million Jobs – Takes on Entire Blogosphere One Greenie At aTime. Andrew Chamberlain writes(7/3) for PajamasMedia,"President Obama has repeatedly told Americans he has three main policypriorities – rewriting health care, overhauling the financial system, andimposing a cap-and-trade system to reduce greenhouse gas emissions. He met hisfirst goal and he’s closer than ever on the second; time is running out if hewants to meet the trifecta by the end of 2010. But make no mistake, thepresident and his allies in Congress are working hard to pass cap-and-tradebefore this year is up. The problem is that cap-and-trade bills are expensive,they inevitably cost jobs, and the American people know it. Last year, theHouse passed the Waxman-Markey cap-and-trade bill. But now that 1400+ page billis stalled in the Senate in large part because of its massive costs toAmericans. To jump start the debate, Senators Kerry and Lieberman recentlyannounced a new strategy to impose a cap-and-trade system on Americans – theinaptly named "American Power Act." Senator Kerry no longer calls his variousproposals "cap-and-trade," but changing a bill’s name to disguise itsintentions is a time-honored ruse in Washington. Click herefor IER press release; herefor Chamberlain study; and herefor NRDC’s hit piece (guess that means we hit bone).

AsObama Offshore Ban Claims Livelihoods of Thousands of Gulf Coast Residents aDay, American Energy Alliance Says Enough Is Enough – Launches New Campaign toSave US Energy Jobs. AEA officiallylaunches SaveUSEnergyJobs.com:Save U.S. Energy Jobs is a project of the American Energy Alliance (AEA)dedicated to promoting safety in the development of our offshore resources andto promoting America’s energy jobs. The public widely acknowledges that the BPoil spill is a disaster of staggering societal and economic proportions. Whilethe accident itself is tragic, it is important to separate the actions of onebad actor from the rest of the industry. The far reaching impacts of thisdisaster should not include cutting off access to our domestic energyresources, the economic prosperity and national security benefits thoseresources provide, and the much needed jobs energy production provides to hardworking Gulf residents. By focusing efforts on industry best practices, andensuring across the board implementation of the best technologies andprocesses, we can more safely cultivate our vast national resources while alsogrowing our economy and creating more jobs. Now more than ever, it is essentialthat our leaders turn to America’s world leading energy experts and engineersto guide the way forward, not to partisan rhetoric and talking points. SaveU.S. Jobs will set the record straight.

Battleover Marcellus Shale in Northeast PA is Really a Battle Between Farmers WhoLived There All Their Life (Pro) and Rich Folks from NY with Second Homes(Anti). PhiladelphiaInquirer (7/4) reports, "Tim Coulter’s farm in this rocky corner ofnortheastern Pennsylvania is in financial trouble. He’s sold off the livestock.There’s no market for the timber. And with only 121 acres left, Coulter can’tcarve off any more of the land that his family has owned for five generations.In September, a week before the Wayne County sheriff was scheduled to forecloseon Coulter’s farm to collect $7,000 in taxes, salvation arrived in the form ofa check from a natural-gas company that leased Coulter’s land for MarcellusShale exploration. "Everybody’s counting on the gas to come through,"said Coulter, 48. "Without it, we would have gone under." KarlCanfield, interviewed as he was milking his 70 Holsteins last week, said hisgas-lease bonus offset the $70,000 his farm lost last year because of thedepressed dairy market. His wife, Susan, earns extra money cleaning thevacation homes of wealthy New Yorkers. Pat Carullo, a Staten Island, N.Y.,native who moved to Wayne County after the attacks of Sept. 11, 2001, goescrimson with rage at the mention of hydraulic fracturing, the extractiontechnique that involves huge injections of water, chemicals, and sand deep intoa well. He compares it to the Gulf of Mexico oil spill. "Look at thegulf!" shouted Carullo, a Damascus Citizens cofounder who speaks inhigh-volume sound bites. "We’re fighting for our lives here! Look at myhands. They’re shaking! It’s no game here!"

GoodMoney After Bad: Obama Acknowledges that No Jobs Created Yet From His GreenJobs Push – So What Does He Do? Dump Another $2 Billion into Expensive SolarProject. Energy Guardian (7/6, subs.req’d) reports, "President Barack Obama is acknowledging much of the impact ofhis jobs stimulus package hasn’t been felt yet, but he is targeting fresh moneyto the clean energy sector that has been one of the few economic bright spots.The president used his weekend radio and video address to announce that theEnergy Department is providing $1.85 billion in loan guarantees to two solarprojects in Arizona and Colorado that promise to create as many as 5,000 jobs.More than $1.4 billion in loan guarantees will go to Abengoa Solar to help itbuild one of the world’s largest solar plants in the desert near near GilaBend, Arizona. Abengoa Solar, based in Lakewood, Colo., is a division of theSpanish renewable energy and engineering company Abengoa. The project willcreate 1,600 construction jobs. "After years of watching companies build thingsand create jobs overseas, it’s good news that we’ve attracted a company to ourshores to build a plant and create jobs right here in America," Obama said.Obama said $400 million in loan guarantees will also be awarded toColorado-based Abound Solar Manufacturing to manufacture advanced solar panelsat two new plants, creating more than 2,000 construction jobs and 1,500permanent jobs. A Colorado plant is already being built and an Indiana plant willbe retooled from an empty Chrysler factory.

IndependentsDay? Carol Browner Admits that Lifting Liability Cap Will Eliminate Ability ofIndependent Oil and Gas Producers to Produce Offshore – And She’s AbsolutelyFine with That. WallStreet Journal (7/3) reports, "The White House’s top energy adviseracknowledged that smaller oil firms might no longer be able to drill in theGulf of Mexico as a result of legislation moving through Congress that wouldeliminate the cap on their liability for oil spills. "Maybe this is asector where you really need large companies who can bring to bear theexpertise and who have the wherewithal to cover the expense if something goeswrong," Carol Browner, special adviser to President Barack Obama on energyand climate change, said in an interview. Eliminating the $75 million cap onliability for oil spills "will mean that you only have large companies inthis sector," she said. The administration has imposed a now-challengedmoratorium on deepwater drilling while a presidential commission conducts asix-month investigation of the BP disaster. Oil companies have been pushing theInterior Department to lift the moratorium, saying that new safety regulationscould allow drilling to resume. "The small companies did nothing wrong -andyou’re going to shut them down?" said Robert Dillon, a spokesman for Sen.Lisa Murkowski (R, Alaska.) "So the only thing you are going to have leftare the big, national oil companies like China. Where are the free-marketvalues in that?"

NYTReporter Apparently Confused Over Which Industries Get Grants and Tax Credits(Renewables) and Which Are Allowed to Keep Slightly More of What They Earn(Oil, Gas) NYTimes (7/3) reports, "With federal officials now considering a new tax onpetroleum production to pay for the cleanup, the industry is fighting themeasure, warning that it will lead to job losses and higher gasoline prices, aswell as an increased dependence on foreign oil.  But an examination of the American tax code indicates that oilproduction is among the most heavily subsidized businesses, with tax breaksavailable at virtually every stage of the exploration and extractionprocess.  According to the mostrecent study by the Congressional Budget Office, released in 2005, capital investmentslike oil field leases and drilling equipment are taxed at an effective rate of9 percent, significantly lower than the overall rate of 25 percent forbusinesses in general and lower than virtually any other industry. And for manysmall and midsize oil companies, the tax on capital investments is so low thatit is more than eliminated by various credits. These companies’ returns onthose investments are often higher after taxes than before.  Oil industry officials say that the taxbreaks, which average about $4 billion a year according to various governmentreports, are a bargain for taxpayers. By helping producers weather marketfluctuations and invest in technology, tax incentives are supporting anindustry that the officials say provides 9.2 million jobs.

China’sPremier Declares He’s Prepared to Use an "Iron Hand" to Make His People UseEven Less Energy Than They Already Do – But Numbers Might Sink Him Anyway. NYTimes (7/4) reports, "Premier Wen Jiabao has promised to use an "iron hand"this summer to make his nation more energy efficient. The central governmenthas ordered cities to close inefficient factories by September, like the vastGuangzhou Steel mill here, where most of the 6,000 workers will be laid off orpushed into early retirement. China has shut down more than a thousand oldercoal-fired power plants that used technology of the sort still common in theUnited States. China has also surpassed the rest of the world as the biggestinvestor in wind turbines and other clean energy technology. And it hasdictated tough new energy standards for lighting and gas mileage for cars.  But even as Beijing imposes the world’smost rigorous national energy campaign, the effort is being overwhelmed by the billionfolddemands of Chinese consumers. Chinese and Western energy experts worry that China’s energy challengecould become the world’s problem – possibly dooming any international effortsto place meaningful limits on global warming.  If China cannot meet its own energy-efficiency targets, thechances of avoiding widespread environmental damage from rising temperatures "arevery close to zero," said Fatih Birol, the chief economist of the InternationalEnergy Agency in Paris.

CubaLibre: Obama Ban on Offshore Energy Exploration Forgets One Important Thing:The Cubans Don’t Observe It; Clear the Way for Drilling 45 Miles from Key West.WallStreet Journal (7/2) reports, "Florida has long fought to prevent oildrilling anywhere near its white sandy beaches. But as the state continues todeal with oil from the Gulf of Mexico spill washing up on its shores, it facesa new threat: deepwater drilling in nearby Cuban waters. Maria Ritter, aspokeswoman for Spanish oil company Repsol YPF SA, said it plans to drill offCuba, about 60 miles south of Key West, Fla., early next year. If successful,this would likely kick off a spate of exploration. Only one deepwater well hasbeen drilled in Cuban waters, by Repsol in 2004. The effort found oil but notenough to justify commercial development. Since then, the U.S. GeologicalSurvey has said there could be a substantial amount of untapped oil off theCuban coast, whetting the appetite of several global oil companies that havesigned exploration leases. Drilling off Florida in U.S. waters has been bannedby federal moratorium for decades. It’s not clear what U.S. or Floridaofficials could do to stop oil exploration in Cuba. The U.S. controls coastalwaters up to 200 miles from its shores, but under a 1977 treaty it agreed todivide the Straits of Florida equally with Cuba. That means Repsol can drill adeepwater well about the same distance from Key West, Fla., as the DeepwaterHorizon was from the Louisiana coast.

DuckLame: Bingaman Shoots Down Greens’ Idea of Ramming Through Controversial CarbonLegislation in Lame-Duck Session – "Senate Will Have to Act Before August" IfAt All. WallStreet Journal (7/1) reports, "A hot idea circulating in Washington is thatcongressional Democrats might try to pass climate-change legislation in thelame-duck session after the November elections. The idea has gained currency asthe Senate’s calendar has grown crowded. But a leading Senate Democrat said theapproach won’t work. If an energy bill is to reach President Barack Obama’sdesk this year, the Senate will have to pass a substantial bill before theAugust recess, said Sen. Jeff Bingaman. Bingaman, chairman of the Energy andNatural Resources Committee, warned his colleagues against assuming they canpass a bill before the election with popular items – such as incentives forwind and solar power and electric cars – and then add more controversialprovisions, such as a cap on carbon emissions, in a conference committee withthe House after the election.  Thatapproach, he said, has failed in the past.  "Any plan that contemplates ‘let’s just get somethingthrough the Senate and … people come back in a lame duck and all of us agree onsomething,’ I think that’s not likely," the New Mexico Democrat said. "If we’regoing to get legislation to the president for signature in this Congress, Ithink the Senate’s going to have to act before the August recess."

Facedwith Order from Federal Judge to Reverse Course on Moratorium, WH Press Sec.Says New "Partial Ban" Plan Is In the Offing – Directly Violating Court’sOrder. E&E News (7/2, subs.req’d) reports, "The White House yesterday said it will issue a revisedsix-month moratorium on new deepwater drilling in the next few days. "Ithink that will come from the Department of Interior, I would expect in thenext few days," White House press secretary Robert Gibbs told reporters.The Obama administration has been crafting a revised proposal since a federaljudge struck down its original drilling ban. President Obama in late May haltedapproval of new deepwater drilling permits and suspended drilling at 33exploratory wells while an independent panel conducts a six-month study ofoffshore drilling safety. But U.S. District Judge Martin Feldman ordered theObama administration on June 22 to lift the moratorium, saying the governmenthad not provided adequate reasoning for it and that it would have a permanentand harmful effect on the economy of the Gulf region. Although theadministration requested a stay, Feldman two days later reaffirmed his orderand gave the administration 30 days to comply.

KnowHow Folks Like to Claim that PA’s Portion of the Marcellus Has Hundreds ofTrillions of Cubic Feet of Natural Gas? They’re Wrong – There’s Even More. Reuters(7/1) reports, "Is there even more natural gas than thought encased in the rockbelow Pennsylvania? The state that is already estimated to have enough gas inits Marcellus Shale formation to meet total U.S. needs for a decade or more mayhave additional reserves trapped in geological strata above and below theMarcellus, some energy companies believe. Test wells sunk in recent months haveyielded promising quantities of gas that may indicate major new reserves of afuel that would reduce carbon emissions, cut U.S. petroleum imports, andgenerate thousands of jobs. One of the fields, the Utica Shale, has alreadygenerated interest in the Canadian province of Quebec where a number of horizontaltest wells have been drilled, and that optimism is spreading to Pennsylvania,birthplace of the world’s oil industry in the mid-19th century. Range ResourcesCorp. (RRC.N: Quote), a Texas-based gas driller that is active in thesouthwestern Pennsylvania portion of the Marcellus, said it has successfullytested two wells, in the Upper Devonian Shale above the Marcellus, and theUtica, below it. It plans to release more details in the coming months."The results are very promising," Range spokesman Matt Pitzarellawrote in an email. "Even though it’s still very early, the prospects arevery good, indicating that either of these formations could be stand-alone gasfields."

FederalLIHEAP Program – a Band-Aid Approach to High Energy Prices Embraced by LawmakersUninterested in Examining the Root Cause – Is Exposed as a Scam. AssociatedPress (7/1) reports, "A federal program designed to help impoverished familiesheat and cool their homes wasted more than $100 million paying the electricbills of thousands of applicants who were dead, in prison or living inmillion-dollar mansions, according to a government investigation. The U.S.Department of Health and Human Services spent $5 billion through the Low-IncomeHome Energy Assistance Program in 2009, doling out money to states with littleoversight of the program. Some states don’t verify applicants’ identifies orincome. For example, the program helped pay the electric bill of a woman wholives in a $2 million home in a wealthy Chicago suburb and drives a Mercedes,according to the yet-to-be released report obtained by The Associated Press.GAO studied the program after a 2007 investigation by Pennsylvania’s stateauditor found 429 applicants received more than $162,000 using the SocialSecurity numbers of dead people. "LIHEAP is supposed to be for poorpeople, not for cheats who pose as something or someone they’re not and gettheir paperwork rubber-stamped by gullible government officials," saidU.S. Rep. Joe Barton, R-Texas, the ranking GOP member of the House Energy andCommerce Committee, which requested the investigation.

IEASays Worldwide "Revolution" of Renewable and Alternative Energy Just Over the Horizon- All That’s Needed to Initiate It? 500% (!) Higher Taxpayer Subsidies. E&E News (7/1,subs. req’d) reports, "The International Energy Agency says an energytechnology revolution is under way, but the next decade is critical insustaining that transition. The Paris-based energy watchdog says in a newreport out today that governments should intervene at "an unprecedentedlevel" over the next decade to scale up new clean technologies and avoidlocking in inefficient, high-emissions technologies. "For several years,the IEA has been calling for an energy revolution to tackle climate change andenhance energy security and economic development," Nobuo Tanaka, executivedirector of the International Energy Agency, said this morning in Washington,D.C. "For the first time, we see early indications that such a revolutionis under way." To achieve a 50 percent reduction in carbon dioxideemissions by 2050, government research and development funding in low-carbontechnologies — like wind, solar, nuclear, and carbon capture and sequestration– will need to be two to five times higher than current levels, the reportsays.

SocialistParadise: Venezuelan President Hugo Chavez Decides the Best Way to SettleDispute over Payment with Offshore Contractor is to Steal the Rigs.   Bloomberg(7/1) reports, "Venezuelan President Hugo Chavez decreed the seizure of 11Helmerich & Payne Inc. oil rigs after the company idled its equipmentbecause of a payment dispute, according to a resolution published in theOfficial Gazette. Petroleos de Venezuela SA President and Oil Minister Rafael Ramireztraveled to Anaco, Anzoategui state, today to take control of the rigs and allgear associated with their operation. Some 600 rig workers, whom Ramirezexhorted to look after the equipment when the planned seizure was firstannounced last month, become PDVSA employees. "We’re here to comply with ourrevolutionary laws and to safeguard our national interests," Ramirez told acrowd of workers today in a speech broadcast on state television. "Myrecognition goes out to workers who watched over the rigs and didn’t allow thecompany to take them out of the country." Helmerich, which has operated inVenezuela for more than 50 years supplying oil field services, said that itidled the rigs after failing to receive more than $40 million of past duepayments. Ramirez called the company "intransigent" in negotiations for newfees following a plunge in oil prices and said PDVSA won’t allow privatecompanies to slow production.

Rebuke:Democrats and Republicans Come Together in the Senate to Establish REALCommission on Deepwater Horizon – Will Compete Directly with Obama’s PotemkinPanel. Energy Guardian (7/1, subs.req’d) reports, "After unanimously approving legislation to overhaul the nation’soffshore drilling laws, members of the Senate Energy Committee did somethingunexpected. They voted to approve their own independent commission toinvestigate the BP accident that would compete with one that Obama createdseveral weeks ago. Five Democrats joined all 10 Republicans in voting to createa dueling panel with 10 members. The vote was a rebuke of Obama’s decision toname the head of an anti-drilling advocacy group-Natural Resources DefenseCouncil President Frances Beinecke-to the commission he created back in May.Sen. John Barasso, R-Wyo., introduced the surprise legislation, sayinglawmakers like himself felt Obama had stacked his own commission withanti-drilling critics who would tarnish the credibility of any of itsfindings.  Sen. Mary Landrieu, aDemocrat from Louisiana, challenged her own party members to consider how theywould have reacted if former President George W. Bush had stacked thecommission with pro-oil members. "We would say this is not fair. And I’m sayingto my colleagues this is not fair," she argued. The committee ultimatelydecided there were enough questions about the independence of Obama’scommission that it was — in the words of New Hampshire Sen. Jean Shaheen –prudent to get a second opinion.

A Tale of Two Panels: Senate Offshore Commissionwill be Populated by Scientists, Engineers; Whereas Obama Panel is Staffed byAdvocates and Hacks.  The Houston Chronicle (7/1) reports, "TheSenate Energy and Natural Resources Committee voted 15-8 to add thecongressional commission proposal to a broader offshore drilling bill, afterSen. John Barrasso, R-Wyo., insisted that the nation needs an "unbiased"examination of the April 20 BP well blowout that triggered the spill. Heblasted a seven-member panel created by President Barack Obama as "stackedwith people who philosophically oppose offshore drilling." Obama launchedthe commission last month and tasked it with conducting a six-month probe ofthe Deepwater Horizon disaster and a rigorous review of drilling safety. Itsfindings could dictate the future of offshore drilling and lead to majorchanges in the way the government polices oil and gas production along thenation’s coasts. But its membership has come under fire in recent days becausewhile its roster includes science and engineering experts, none are drillingexperts. Instead, the membership includes a renewable energy advocate who has complainedabout America’s oil addiction and a marine science professor who recentlyappeared to endorse a delay of planned drilling along the East Coast.

Sassy Waxy: House Energy Chairman Warns that CarbonRationing Will Be Added in Conference Even if It’s Dropped from SenateLegislation.The Hill (7/1) reports, "HouseEnergy and Commerce Committee Chairman Henry Waxman (D-Calif.) said he would "absolutely"seek to keep greenhouse gas limits alive in a House-Senate conference if theSenate approves energy legislation this summer that omits carbon provisions. "Itwould be open in conference to consider because our bill has it," Waxman toldThe Hill Wednesday. Waxman authored a sweeping climate and energy bill that theHouse narrowly approved last year that merges an "economy-wide" cap-and-tradesystem with other provisions to boost alternative energy and energy efficiency.Greenhouse gas caps face large hurdles in the Senate, and may be left on thecutting-room floor when the Senate debates an energy package that MajorityLeader Harry Reid (D-Nev.) wants to bring up next month. But Waxman, an ally ofHouse Speaker Nancy Pelosi (D-Calif.), said the climate issue would remainalive in conference, noting he would "absolutely" press for measures thatcreate a cost for emitting greenhouse gases. "I would hope we can put a priceon carbon," Waxman said, arguing it would give the private sector the "rightmarket signal" to develop low-emissions technologies.

George Miller Says His New Bill Seeks to Prevent BPfrom Acquiring an Offshore OCS Lease for the Next 7 Years; The Reality? ItSeeks to Shut Down Offshore Energy In General. The Hill (6/30) reports, "Rep.George Miller (D-Calif.) said Wednesday that he’s drafting legislation to denyBP new offshore oil-and-gas leases for up to seven years due to the oil giant’spattern of safety and environmental problems. "British Petroleum has a flagranthistory of taking risks to boost profits that has resulted in deaths ofworkers, destruction of the environment, and economic chaos in localcommunities," Miller said in a prepared statement about BP, which is strugglingto contain oil from its blown-out Gulf of Mexico well. Miller, a top ally ofHouse Speaker Nancy Pelosi (D-Calif.), hopes to offer his plan as an amendmentto drilling safety legislation under construction in the House NaturalResources Committee. He once headed that panel and currently chairs theEducation and Labor Committee. Miller’s plan is not limited to BP. His officedescribes the upcoming bill this way: "Under Miller’s draft legislation, theSecretary of Interior could not issue offshore oil and gas leases to a companythe Secretary determines is a danger to workers and natural resources," theirsummary states.

Henry Waxman Says His "Blowout Prevention Act" IsJust Making Sure Rigs Are Kept Safe; The Reality? It Defines Every On- andOffshore Well in America As "High-Risk," and Then Blows ‘Em Up. Marlo Lewis writes(6/30) on MasterResource.org, "The draftlegislation that Chairmen Henry Waxman (D-Calif.) and Ed Markey (D-Mass.) willpromote at today’s hearing could shut down all offshore drilling in the UnitedStates. The draft text says the federal government "shall not issue a permit todrill for a high-risk well unless the applicant for such permit demonstrates .. . and the appropriate federal official determines that . . . the applicanthas an oil spill response plan that ensures that the applicant has the capacityto promptly stop a blowout in the event the blowout preventer and other wellcontrol measures fail." Sounds innocent enough. However, the bill defines as "high-risk"any "offshore oil or gas exploration or production well," not justultra-deepwater rigs. The implication is obvious: The federal government "shallnot" issue any more permits for offshore drilling, because nobody knows how to "promptlystop a blowout in the event that the blowout preventer and other well controlmeasures fail." Rep. G.K. Butterfield (D-N.C.) put it this way: "BP ignored avery simple rule. If you can’t plug the hole, don’t drill the well." But, asthe BP disaster shows, some holes cannot be plugged, at least not in time toprevent gigantic spills. Logically, the bill implies that no permits to drillshould be granted and that existing permits should be revoked.

Big AP Story This Week Informed Readers that ShaleProducers in PA Use Benzene, Toluene and Other Nasty Stuff in Frac Fluids -Falsely, As It Turns Out.  Scranton Times-Tribune (7/1) reports, "Anearlier version of the list, provided by DEP to the Associated Press andpublished in newspapers throughout the state this week, purportedly includedall of the chemicals used in Pennsylvania during the gas extraction processcalled hydraulic fracturing. Instead, it included not just the chemicals pumpeddeep underground but also those stored or used on a well site, including fuelfor vehicles and brake fluid. "You can blame it on me," Scott Perry,the director of DEP’s Bureau of Oil and Gas Management, said on Wednesday. Theoriginal list was a compilation of the chemicals identified on safety documentscalled material safety data sheets that hydraulic fracturing contractors mustsubmit to the department, but he did not realize that it included substancesthe contractors use both above and below ground on a well site, he said. Thesecond list was winnowed by a DEP chemist, who recognized that some of thechemicals on the initial list are not among those injected underground duringthe fracturing process. Three compounds specifically addressed in the AParticle because of the risks they can pose to human health – naphthalene,toluene and xylene – are not on the list of hydraulic fracturing chemicals DEPposted on its website on Wednesday.

Steely Determination: Steel Producers Join theScrum in Challenging EPA’s Attempt to Re-Write the Clean Air Act with the Help ofCongress on "Tailoring" Rule.E&E News (6/30, subs. req’d) reports, "The steel industryhas filed a pair of court challenges to U.S. EPA’s "tailoring" rule,putting the trade group in the unusual position of challenging a rulemakingthat would limit the scope of the agency’s greenhouse gas regulations. AfterEPA announced earlier this year that it plans to begin regulating largestationary sources of greenhouse gases next January, the agency proposed ascaled-back approach for the regulations, initially limiting them to newsources producing more than 100,000 tons of greenhouse gases and to existingsources that increase their emissions by more than 75,000 tons. Petitions filedyesterday with the U.S. Circuit Court of Appeals for the District of Columbiaby Gerdau Ameristeel US Inc. and the American Iron and Steel Institute ask thecourt to review the tailoring rule, which multiplied the threshold forregulation by about 750 times. Groups have until Aug. 2 to challenge the rule,which was finalized earlier this month, and two industry-backed advocacy groups– the Coalition for Responsible Regulation and the Southeastern LegalFoundation — have already filed petitions for review. "It’s simply a planto pick winners and losers arbitrarily as to who will be subject to regulationand who will not," he said. "It’s not in keeping with thestatute."

Kerry-Lieberman "AmericanPower Act" (Really, Guys?) Will Cut 5.1 Million U.S. Jobs over Next 40 Years -And, As Usual, Disproportionately Affect Working-Class Families. Investor’sBusiness Daily (6/29) editorializes, "On Wednesday, the Institute forEnergy Research will release an analysis of the American Power Act, pushed byKerry and Lieberman (sans Graham). IER says it will cut U.S. employment byroughly 522,000 jobs in 2015, rising to more than 5.1 million by 2050."Gross annual burden" imposed by the current Senate version ofcap-and-trade is put at a paltry $125.9 billion a year or $1,042 per household,with costs disproportionately borne by low-income households. According to IER,Kerry-Lieberman will redistribute roughly $12.3 billion per year from thebottom 80% of earners to the highest quintile. As the average age of eachhousehold rises, so does the economic burden imposed on it. Health carerationing and Kerry-Lieberman – a double whammy for seniors. Whether throughthe front door, the back door or behind another closed Senate door,cap-and-trade will put a price not only on carbon, but also on freedom. Thepower to tax is the power to destroy, but it is also the power to control. Clickhere for IER’s press release on the study. And clickhere to access the study itself.

No Respect forElders: IER-Commissioned Analysis Finds Folks over the Age 75 Hit the HardestUnder Kerry-Lieberman. MarkTapscott writes (6/29) for the WashingtonExaminer, "More than half a million jobs could be lost by 2015 if Congressapproves the cap-and-trade portion of the Kerry-Lieberman anti-global warmingbill, according to an independent analysis to be made public tomorrow by theInstitute for Energy Research. The study was done by Chamberlain Economics LLCat IER’s request of the measure being sponsored by Sen. John Kerry, D-MA, andSen. Joe Lieberman, I-CN. Besides the 522,000 jobs lost within five years, themeasure if approved would destroy an estimated 5.1 million jobs by 2050. Otherfindings of the Chamberlain study include:  Households would face a gross annual burden of $125.9billion per year or $1,042 per household, with costs disproportionately borneby low-income households. On a net basis, the top income quintile will benefitfinancially, redistributing to these households roughly $12.3 billion per yearfrom the bottom 80ercent of earners. Households over age 75 bear the largestburden at 2.3 percent of income, followed by households aged 65-74 and underage 25 at 2.1 percent. By contrast, the nation’s highest-earning householdsbetween age 45 and 54 years would bear the smallest percentage burden of just1.5 percent.

Kerry Emerges fromMeeting with the President with Promises to Scale Back Cap-and-Raid Provisions -But the Enviros Know Better than That.Politico(6/30) reports, "Some moderate Democrats aren’t even interested in going thatfar. "I’ve got a lot of concerns about utility-only, in a state like mine whereI’ve got a lot of low-income consumers," said Senate Agriculture CommitteeChairwoman Blanche Lincoln (D-Ark.), who urged Reid to keep the focus on theenergy bill approved more than a year ago in Bingaman’s committee. And some ofthe far left environmental groups don’t like the idea all that much either. "Capitulate,then compromise is not a strategy that will produce a real climate bill," saidErich Pica, president of Friends of the Earth. "It’s time for senators to stopcaving to corporate polluters and start listening to the people they representwho are demanding clean, safe energy and jobs." Reid is planning a mid-Julyfloor debate on the energy and climate bill, before the Senate begins theconfirmation debate on Supreme Court nominee Elena Kagan, his spokesman, JimManley, told reporters Tuesday. "I think it’s probably at least a week, if notmore," Manley said of the amount of time Reid has blocked off for energy andclimate.

The Wax ManCometh: Energy Chairman Introduces a Bill that would Allow Any Joe Off theStreet the Shut Down a $400 Million Offshore Rig. TheHill (6/29) reports, "Waxman floated a draft 34-page bill to otherpanelists Friday that would impose new drilling safeguards.  Beginning in one year, it would preventnew "high-risk" onshore and offshore oil-and-gas drilling unless the drillingcompany has a plan ensuring a blowout could be prevented or promptly stopped.Companies must also be able to drill a relief well within 15 days of a blowoutand complete that well within 90 days. The draft sets minimum federal standardsfor blowout preventers and the casing and cementing of wells – areas that aresubject to intense scrutiny in probes of the Deepwater Horizon disaster. One provision that may ruffle some feathersallows for citizen suits to "compel compliance" with the bill’s requirements.It also requires minimum standards for work stoppage "when there are conditionsindicating an immediate risk of a blowout at a high-risk well," and establishesan independent panel to review well-control technology and assess the adequacyof regulations. Other requirements in the draft include unannounced inspectionsof rigs and the banning of retaliation against whistleblowers.  A Waxman spokeswoman called it a "straightforward"plan that will be the subject of a hearing Wednesday in the panel’s Energy andEnvironment Subcommittee.

Obama AgencyDecision to Deny Sale of US PRODUCTS to India Just Because They’re Used to MineCoal Really Rubbing Folks in Wisconsin – Rs and Ds – the Wrong Way. ClimateWire (6/30,subs. req’d) reports, "Pressure is mounting on President Obama to reverse theExport-Import Bank of the United States’ decision to deny funding to a3,960-megawatt coal plant in India. In a letter to President Obama, WisconsinRepublicans criticized the bank’s rejection of a $250 million loan guarantee toReliance Industries Ltd. in India. The financing would have helpedMilwaukee-based Bucyrus International Inc. provide about $600 million worth ofdraglines, electric mining shovels and trucks to a coal mine and supercriticalpower plant in Madhya Pradesh, India. The board voted 2-1 against the loanbecause the plant will produce 26.4 million tons of emissions annually, acarbon footprint Ex-Im bank officials indicated they felt was too high. Butthis week, Bucyrus received cancellation orders for its three contracts withReliance, affecting what the company estimated to be nearly 1,000 jobs acrossseveral states. "It’s a big order for us," Bucyrus President and CEOTim Sullivan said. "It’s substantial business, not only for our plant butall our suppliers and contractors in 13 different states."

Defense Dept.Currently in the Middle of Two Wars and One Rolling Stone Article – And Yet:Investing Millions of Your Dollars in "Extreme" Solar Installations. WiredMagazine (6/25) reports, "For years, the military has made on-again, off-againattempts to find eco-friendly ways to get power war-zones, bases and drones.Now Darpa, usually the agency behind the Pentagon’s most out-there ideas, isputting their money into an old standby: solar power. They’re investing $3.8million into the creation of high-powered, lightweight solar cells that can "standup to battle conditions and environmental extremes." Birkmire is quick to pointout, the cells Darpa’s after will require some lofty innovation. Thin-film,flexible solar cells are a major priority for the military, because they can beapplied onto almost everything – from tents to uniforms – and would minimizethe number of generators and portable battery packs needed by troops in battle.In 2005, the Army tested tents lined with silicon-based solar cells that wereable to generate adequate power for fans, lap tops and lights.Right now,Birkmire said, the cells are in their infancy, and operate at 7-11 percentefficiency. Darpa wants to see that doubled – at least. "They want to takeperformance to another level, and I’m not sure that we’ll get there," he saidof the program, which will also include four industry partners. "Add to that thechallenge of encapsulating these models to make them resilient for battle, andkeeping them lightweight in spite of that, and it’s a big challenge."

At Least It’s Goodfor Something: Squabbles over Corn-Based Ethanol Effectively Shut DownNegotiations in Ways and Means over "Green Jobs" Mass Subsidy Bill. E&E News (6/30,subs. req’d) reports, "A debate over whether to extend tax credits forcorn-based ethanol has emerged as a stumbling block for Democratic members ofthe House Ways and Means Committee working to develop a "green jobs"tax package, even as the larger question of how to pay for the possible $20billion bill lingers. Democratic committee members yesterday left a meeting onthe bill without resolving whether to include an extension of a 45-cent taxcredit for oil companies that blend ethanol with gasoline. Davis is aco-sponsor of a bill — H.R. 4940, introduced by Rep. Earl Pomeroy (D-N.D.),another member of the Ways and Means Committee — that would extend the ethanol"blenders’ credit" until 2015. Pomeroy has noted if the blenders’credit is allowed to expire this year, North Dakota would lose 2,930 jobs, andthe United States would lose a total of 112,000 jobs. Corn ethanol is criticizedfor escalating food prices and polluting the environment — especially withfertilizer run-off into rivers and oceans. Supporters tout the fuel for cuttinggreenhouse gas emissions and imports of foreign fuel, as well as supportingU.S. farmers and rural communities.

One Year Later: 365 Days Removedfrom House Passage of Waxman-Markey, Backers of Carbon Criminalization ViewAttachment to Oil Spill Bill as Only Hope. E&E News(6/25, subs. req’d) reports, "One year ago, the stars seemed aligned forCongress to enact a sweeping climate and energy bill. Democrats held largemajorities on Capitol Hill, President Obama touted a cap-and-trade plan as oneof his top legislative priorities, and the House passed a historic bill settingmandatory limits on greenhouse gas emissions. A year ago Saturday, Reps. HenryWaxman (D-Calif.) and Ed Markey (D-Mass.) eked out a 219-212 vote in support oftheir climate bill. House leaders trumpeted their legislative victory whileSenate Majority Leader Harry Reid (D-Nev.) pledged to quickly hold a floordebate on an energy and climate package. At the time, Axelrod said Obama wouldnot let the House bill wither. "The vote will come sometime in the fall. Ithink we will fashion an energy package that will move this country forward andcarry the day," he said on NBC’s "Meet the Press." Now, after alost year of fits and starts, senators continue to disagree over what form aclimate and energy bill should take as repeated deadlines for a floor debateslip by the wayside. David Hamilton, director of the Sierra Club’s globalwarming program, said the environmental community thought the Senate would actmore quickly on climate legislation, "but there are all sorts of forces innational politics that got in the way of that.

G-20 Negotiators in TorontoAgree to Cut Subsidies for Fossil Fuels – GOOD! Problem Is: Don’t Seem toUnderstand That ONLY Taxing a Company at 46% Isn’t a Subsidy. LATimes (6/27) reports, "In a last-minute turn in global climate talks,international negotiators agreed over the weekend to adopt more ambitious plansthan expected to trim government subsidies to oil companies worldwide, part ofa broader effort to reduce greenhouse-gas emissions. Earlier this week,negotiators were hammering out an agreement among the top 20 industrialized andemerging nations that called for each to take "voluntary" measures tocut production and consumption incentives. But privately under pressure fromthe Obama administration over the last two days, the group now is preparing tosign an agreement that omits the word "voluntary." In another changein the language of the proposed agreement, the pact will pledge an ongoingreview process that evaluates how well countries are living up to theircommitment. The tougher language was seen in part as a reaction to the ongoingoil spill crisis in the Gulf of Mexico. The statement containing the newagreement was described by officials close to the negotiations Sunday afternoonas the final communique was being pieced together. The agreement’s climatepassage will be part of a more sweeping statement that will be issued bymembers of the G-20 nations shortly before they wrap up their summer summitSunday evening.

Obama, Senate Dems on the Huntfor a Few GOPers to Walk the Plank on Carbon Criminalization – Will Need AtLeast a Handful, Owing to Mass Defections Among Moderates. Politico(6/28) reports, "President Barack Obama needs a couple of Senate Republicans toplay ball if he’s going to pass a cap on greenhouse gases this year.  But few, if any, GOP senators seemwilling to work with him on a plan their leaders have dubbed a "national energytax" – despite the fact that some of them have seemed supportive of the ideabefore. While there are 59 senators in the Democratic Caucus, Obama knows hemay need more than one Republican crossover to get 60 "yes" votes on acomprehensive climate bill; Democrats Evan Bayh of Indiana, Byron Dorgan ofNorth Dakota, Blanche Lincoln of Arkansas and John Rockefeller of West Virginiahave made it clear in recent weeks they’d prefer a much different route. "Noone in our conference supports a national energy tax," said Don Stewart, aspokesman for Minority Leader Mitch McConnell (R-Ky.). Republican operativesexplain that their members are living in a much different environment in 2010than they were in previous years, when it might have been more politicallypossible to sign up on climate change.

Democratic Nominee for Gov. ofWisconsin BLASTS Obama Admin for IMF No-Vote on Indian Power Plant – Turns OutDecision Cost Wisc. 1,000 Jobs. WallStreet Journal (6/26) reports, "Bucyrus International Inc. said it may losea $310 million order for mining machinery from a subsidiary of Reliance PowerLtd. of India because of a decision by the U.S. Export-Import Bank againstproviding loan guarantees for the project. The decision is equivalent to"throwing 1,000 jobs in the ditch," Tim Sullivan, chief executive ofthe South Milwaukee maker of mining equipment, said. The board of the Ex-ImBank voted 2-1 Thursday against supporting the project. The mining equipmentwould be used for a coal mine that is to supply a new power plant in MadhyaPradesh, India. Mr. Sullivan said that the order from Reliance was contingenton the guarantees and that he feared Reliance would turn to rival suppliersfrom China or Belarus. The bank board split along party lines. Two Democraticmembers-Fred Hochberg, chairman, and Diane Farrell-voted against supporting theproject, while a Republican, Bijan R. Kian, voted in favor. The decision couldput President Barack Obama in an awkward spot during a planned visit toWisconsin Tuesday and Wednesday. "Thiswas a very bad decision," Tom Barrett, the Democratic nominee for governorof Wisconsin, said. Mr. Barrett, currently mayor of Milwaukee, added:"We have to focus on creating jobs." He pledged to "exploreavenues to reverse the outcome." That is likely to be difficult as thereis no appeals process for votes by the Ex-Im Bank board.

Missing: Charlie Christ;Previous Location: Supporter of Offshore Energy; Last Known Address: Standingon Beach with Hippies Protecting That Same Energy. Associated Press(6/26) reports, "Organizers of "Hands Across the Sand" said similarprotests were held at beaches around the nation and in several foreigncountries. The demonstration also was intended to show support for cleanalternatives to fossil fuels. Gov. Charlie Crist returned to Pensacola Beach,where he walked with President Barack Obama on the snow white sand June 15.That was before gobs of goo from the BP oil spill in the Gulf of Mexico cameashore last week. Demonstrators shared the beach with tourists and heavyequipment standing by in case more oil comes ashore. Michael DeMaria, aclinical psychologist from Pensacola, led demonstrators from a pavilion to theshore like an environmentalist pied piper, tooting softly on a nativeAmerican-style flute. He said he often tells patients to go swimming in theGulf as part of therapy. "It breaks my heart," DeMaria said of thespill. "It’s amazing how healing just being by the water is." Abarefoot Crist held hands with his wife, Carole, and Joan Jackson, a middleschool teacher in nearby Pace. Dozens frolicked in the water, and Crist, whowore shorts, waded a few feet in as the demonstration broke up. He assuredpeople the water was safe.

Coalition of Enviro Groups FileSuit Against Cape WIND Project – But Here’s the Kicker: One of the Litigants isa Group Called Californians for Renewable Energy (!). Greenwire (6/25, subs.req’d) reports, "A coalition of environmental groups filed a lawsuit today,arguing that the nation’s first proposed offshore wind farm violates theEndangered Species Act. The lawsuit filed in federal district court inWashington, D.C., alleges that the Obama administration violated the ESA byapproving the Cape Wind project in Nantucket Sound without requiring adequateprotections for endangered shorebirds and migrating whales. "We are inthis lawsuit because science was manipulated and suppressed for politicalreasons to which the Obama administration turned a blind eye," accordingto former U.S. EPA attorney Kyla Bennett, the director of Public Employees forEnvironmental Responsibility New England. The Interior Department’s Bureau ofOcean Energy Management, Regulation and Enforcement and the Fish and WildlifeService relied "on an unlawful biological opinion" that allows the130-turbine project to proceed. Interior Secretary Ken Salazar approvedconstruction of the wind farm in April. PEER is joined in the lawsuit by theAlliance to Protect Nantucket Sound, Californiansfor Renewable Energy Inc., the Texas group Lower Laguna Madre Foundationand others.

Low-Carbon Fuel Standard – Never Heard of It, Right?Mission Accomplished for Folks Who Support It; Turns Out Only Path toImplementation Is Covered by a Thick Canopy of Ignorance. CEA’s Michael Whatley writes (6/25) in the StamfordAdvocate, "Just as the Constitution State was bracing for the rest ofanother cold New England winter at the end of 2009, Gov. M. Jodi Rell and thegovernors of 10 mid-Atlantic and New England states were signing an agreementthat could significantly raise home heating oil prices throughout the region.By signing onto a Memorandum of Understanding on December 30, the governorspaved the way for the adoption of a region-wide Low-Carbon Fuel Standard(LCFS). As a state without fossil fuel reserves and a large portion of homeheating oil consumers, citizens of Connecticut have reason to be concerned.While proponents are selling this LCFS as a "market-based" way toreduce the carbon content of our fuel, it actually won’t make the fuels in yourhome heating tank or gas tank any cleaner that they are right now. What it willdo is restrict which markets we can get our fuels from and hurt our economy byincreasing energy prices across the board. Never heard of an LCFS? It is asystem in which bureaucrats determine which fuels are available to consumersbased on their life-cycle carbon emissions — which are based on severalfactors including the amount of energy used to produce the fuel. Under thisformula, heavy crudes — such as oil produced in Canada, the Southwest andMexico receive a higher life-cycle carbon score since they require more energyto produce than light crudes.

Grown-Up Time: BinghamtonAttorney Sends Detailed Letter to Every Assemblyman in Albany Laying Out theFacts on Hydraulic Fracturing in NY.BinghamtonPress & Sun-Bulletin (6/27) reports, "Broome Co. attorney Sluzar wrotethat by banning horizontal wells for an extended time, the bill would have theadverse consequence of encouraging companies to drill a large number of closelyspaced vertical wells. "Every drill site is an industrial constructionzone with truck traffic, storage of chemicals, cement casings, etc.,"Sluzar’s letter states. "Unfortunately, more vertical wells mean morechances for surface disruption, surface spills, worker error, andcontamination." Another bill would ban hydraulic fracturing on landsitting atop sole source aquifers — effectively banning any drilling in theentirety of Broome County — and a third would restrict drill cuttings frombeing placed in these areas. Sluzar said the proposed laws would create anunfair double-standard for gas drilling materials. "Quite frankly, thereare many more toxic materials deposited in our landfill than would ever be on anatural gas site," Sluzar wrote, noting that DEC allows landfills to sitatop the aquifer. "This simply makes no sense." Sluzar urged statelawmakers to let the DEC complete its review of the technique, and trust thefinal judgment of the agency rather than trying to draw up rules and regulationson its own. "The DEC has the scientists and engineers with the expertiseto address these matters," Sluzar wrote. "The Legislature should nowlet DEC do its job."

Here’s How Senate Dems DescribedTheir Next-Steps Meeting on Carbon Rationing Bill: "Inspirational." "Powerful."Our Favorite: "Thrilling!" But Nothing Actually Decided. E&E News (6/24,subs. req’d) reports, "Senate Democrats left their latest round of energy andclimate talks with what they hailed as a renewed sense of unity — and littleelse. Majority Leader Harry Reid (D-Nev.) and other party leaders called thisafternoon’s meeting "inspirational," "powerful" and even"thrilling" but conceded that Democrats had yet to rally around anyof the legislative proposals currently on the table. Sen. John Kerry (D-Mass.)said Reid would ultimately take the lead in finding a compromise, but Sen. JoeLieberman (I-Conn.) said there had been discussion of creating a committee ofsenators to recommend what should be in the final draft. Despite the optimistictone from Democrats, few could offer any specific progress that had beenhammered out during the hourlong talks. Sen. Frank Lautenberg (D-N.J.) said theonly consensus was "to do some soul-searching to make sure that we knowwhat it is that we want to do."

Cash, Money, Foes: Enviros GetSet to Roll Out $11 Million Ad Campaign Aimed at Enforcing Purity on CarbonCriminalization Vote. Politico (6/24)reports, "Left-leaning advocacy groups are firing up an $11 million ad campaignto pressure a handful of swing-vote Democratic and Republican senators ahead ofnext month’s expected floor debate on comprehensive energy and climatelegislation. The League of Conservation Voters, the Service EmployeesInternational Union, the Sierra Club and the VoteVets.org Action Fund announceddetails Thursday. Ad scripts and video of the commercials won’t be releaseduntil they start airing on TV and other multimedia, likely next week. GeneKarpinski, president of LCV, said the ads will start with a focus on four orfive senators, though he declined to name names. The commercials will air overthe next month, referencing the Senate vote from earlier this month thatthreatened to strip EPA of its authority to write climate change rules andleading up to an expected Senate vote in July and then beyond it.  Karpinski said the ads would "praisethose who vote the right way and criticize those who vote with Big Oil."

Did You Know: The "DISCLOSE"Campaign Finance Act Passed by the House Yesterday Includes an EXPLICITEXEMPTION for the Sierra Club? E&E News (6/25,subs. req’d) reports, "The House yesterday passed campaign finance legislationthat would place heavy new disclosure requirements on the majority ofcorporations and advocacy groups, though it will avoid hitting one of the country’sbest-known environmental groups. The "DISCLOSE Act," which clearedthe House 216-206, will force many of the outside entities involved in electionactivities to identify themselves in election advertising and disclose theirtop donors. In a deal intended to help overcome opposition from the NationalRifle Association, the final bill exempts the NRA, along with the Sierra Club,the Humane Society, AARP and labor unions. "The House bill is not perfect– I would have preferred that it include no exemptions," Obama said in astatement. "The purpose of this bill, plain and simple, is to allowDemocrats to use their majority in this House to silence their politicalopponents," said House Minority Leader John Boehner (R-Ohio). "This isa backroom deal to shred our Constitution for raw, ugly, partisan gain."

What Are You Doing Today atNoon? Interested in Standing on a Beach and Holding Hand with the Nearest AgingHippie to Protest the Responsible Development of Energy Offshore? Greenwire (6/24)reports, "It’s an opportunity for individuals and organizations and peopleof all walks of life to draw a line in the sand and say no" to moreoffshore oil drilling, Rauschkolb said. "Now is the time to start takingcontrol of our energy future and not leaving it to the oil industry to decideit for us." As of this morning, supporters had organized 742 events inplaces that include Australia, India, South Africa, Japan, South Korea,Greenland, Brazil, several spots in Europe and 678 places in the United States.Many events are on beaches. The hand-holding will start at noon local times,moving around the world "in a wave" that starts in New Zealand andends in Kauai, Hawaii, Rauschkolb said. In Washington, D.C., people will gatheron Pennsylvania Avenue in front of the White House. Though people have toldRauschkolb and other organizers they are attending, he said he has no way ofknowing how many actually will show up. The event’s name echoes the 1986 effort"Hands Across America." In that event, people in locations across thecountry held hands to raise money for charities working on hunger andhomelessness. There were disagreements about how many people actually attended,although they included such high-profile figures as then-President Reagan andHouse Speaker Tip O’Neill (D-Mass.). In Arkansas, then-Gov. Bill Clinton (D)joined in.

Here’s the Story You Don’t Hearon Shale Gas: Single-Handedly Responsible for SLASHING Utility Rates All Acrossthe Mid-Atlantic. ScrantonTimes-Tribune (5/18) reports, "After maintaining the state’s highestnatural gas rates for the better part of a year, UGI Penn Natural Gas announcedtwo rate cuts for 2010, delivering a double-digit decrease in consumers’ billnext heating season. Customers using 8.9 thousand cubic feet, or Mcf, of gasper month will see their bills fall from $121.70 per month to an estimated$101.82 per month as of December. The company will request two 14 percent cutsin the purchased gas cost rate, which is the wholesale cost of gas thatutilities pass to consumers. It accounts for about 70 percent of a customer’stotal bill. The first cut on June 1 will drive the rate down to $7.08 per Mcf.The company will follow that with a Dec. 1 cut to $6.09. It will be the lowestrate since 2002 and represent half of what natural gas rates peaked at inwinter of 2005-2006. With the development of shale gas, the cost of gas hasbeen plunging. Of the state’s 10 major natural gas utilities, the lowest rateas of April 1 was Columbia Gas’ $5.33 per Mcf, the result of a 29 percentdecrease from that utility. Eventually, gas from Pennsylvania will be usedlocally, said UGI spokesman Joe Swope. Tapping into Marcellus gatheringpipelines would reduce gas transportation costs for the utility and thecustomer. "Shale gas will fundamentally change the market," Mr. Swopesaid. "Some say we are entering an era of price stability."

Coming to America: Chinese ShaleGas Producer Inks Major Deal to Develop Clean-Burning Resource in BritishColumbia; Can USA Be Far Behind?Reuters(6/25) reports, "Encana Corp., Canada’s largest producer of natural gas, andstate-owned China National Petroleum Corp. agreed yesterday to negotiate ajoint venture to develop the Canadian company’s shale-gas properties innorthern British Columbia. The two signed a memorandum of understanding inOttawa that could see the Chinese oil company get a stake in Encana’s HornRiver and Montney properties, both in B.C. Randy Eresman, Encana’s chiefexecutive, said this month he would look for more partners to help develop thetwo unconventional natural gas fields as the company looks to double itsnatural gas production within five years. Indeed, CNPC would be the second Asianpetroleum company to team up with Encana. In February, Korea Gas Corp. pledgedUS$1.1-billion over five years for a stake in the two shale gas fields."With this potential CNPC joint venture, we would expect, upon successfulcompletion of a transaction, to lower costs … and tap natural gasopportunities that would otherwise remain dormant for some time," Mr.Eresman said.

Less than a Month After ObamaAdmin "Abstains" from Vote on South African Power Plant, Obama Votes NO on SameExact Plant Set for Installation in India. ClimateWire(6/25, subs. req’d) reports, "The U.S. Export-Import Bank yesterday denied $250million in loan guarantees to a coal-fired power plant and mine in India,averting a clash with environmental groups and marking what some analysts saycould become a green shift in the agency’s lending policy. The 2-1 vote was tonot move forward with financing for the Sasan mine and plant in Madhya Pradesh,India. The plant was the first major fossil fuel project to come before theEx-Im Bank since it was compelled to devise a climate change policy as part ofa lawsuit settlement. It comes on the heels of a bruising environmental fightat the World Bank over lending for a coal plant in South Africa, and just daysbefore President Obama meets Group of 20 leaders in Canada, where he will callfor eliminating fossil fuel subsidies. "President Obama has made clear hisadministration’s commitment to transition away from high-carbon investments andtoward a cleaner-energy future," Ex-Im Bank Chairman Fred Hochberg said ina statement. "After careful deliberation, the Ex-Im board voted not toproceed with this project because of the projected adverse environmentalimpact."

Major Breakthrough on SolarPower Hits the News Wire: Company Boasts of Developing a Cell with anEfficiency Rating of a Whole 24 PERCENT; Wowzers. SunPower Corp. announces (6/24) in a pressrelease, "SunPower Corp. has announced the creation of a solar cell thatbreaks the world record with 24.2 percent electricity conversion efficiency.The cell was manufactured in the company’s Philippines plant and the U.S.Department of Energy’s National Renewable Energy Lab independently confirmedthe figure and the record.  BillMulligan, vice president of technology and development at SunPower, said"this new world record demonstrates SunPower’s ability to extend our leadin manufacturing the world’s highest efficiency solar cells."  SunPower’s landmark achievement comesat a critical time for the solar industry, with indicators pointing to bothenormous possibilities and huge pitfalls for the industry. Persistent questionsabout costs, threats to federal and state subsidies, and the high-profilecancellation of Solyndra’s IPO last week mark the general concern about priceand efficiency that dog solar power. SunPower is one of the higher-profilesolar power companies, and one of just a handful of publicly traded solarcompanies in America. However, its shares have not performed particularly well,falling to $13.67 after trading at a peak of over $130 a share in 2007 andnearly $100 in 2008.

Federal Judge Does Right By theLaw, Right By His Neighbors, in Striking Down Obama Offshore Ban – WithinMinutes, WH Dispatches Pressure Groups to Attack the Judge.  LATimes (6/22) reports, "Sen. Mary Landrieu (D-La.) said she would urge theObama administration not to appeal the ruling but to find a way to achieve itsgoal of ensuring safety without harming her state’s fragile economy. Theadministration has said it would appeal. Landrieu warned that the moratoriumwould drive rigs from the gulf to other countries, not only costing the gulf regionjobs but making the U.S. more dependent on foreign oil. "If you owned oneof these rigs, would you allow your rig to sit there and lose $500,000 aday?" she said. "You have no obligation as a rig owner to produce oilfor America." Rep. Bill Cassidy (R-La.) called the decision "welcomenews for thousands of Louisiana welders, pipe fitters, engineers androustabouts whose jobs were threatened by a political decision." Thomas J.Pyle, president of the Institute forEnergy Research, said in a statement that the moratorium was "never about safety — it was about politics."Landrieu said that the Obama administration could do more to address safetyconcerns, short of shutting down the rigs. The Interior Department, she said,could deploy inspectors to every deep-water rig.  Clickhere to view IER’s statement on the decision.

Captain Ken Prepared to Go Downwith the Ship: Issues Half-Hearted Statement Indicating Interior Will Appealthe Decision, Seek to Extend Hardship Into the Future. EnergyGuardian (6/23) reports, "In his statement, Salazar sounded many of thethemes that could be expected in an appeal." The decision to impose amoratorium on deepwater drilling was and is the right decision. The moratoriumis needed to protect the communities and the environment of the Gulf Coast, andDOJ is therefore appealing today’s court ruling. We see clear evidence everyday, as oil spills from BP’s well, of the need for a pause on deepwaterdrilling. That evidence mounts as BP continues to be unable to stop itsblowout, notwithstanding the huge efforts and help from the federal scientificteam and most major oil companies operating in the Gulf of Mexico," thesecretary said. The administration’s environmental allies are taking a morepersonal approach, pointing out that Judge Feldman owned stock in the oil anddrilling industry and questioning whether that could have influenced hisdecision. The oil industry’s allies, including Sen. Mary Landrieu and Gov.Bobby Jindal of Louisiana, are pleading with the White House to drop the appealand let oil rig workers go back to their jobs. Neither side appears ready tobudge, and that means a long, hot summer of battle remains ahead.

A Nobel Experiment: EnergySecretary Struggles to Keep Head Above Water in Dealing with the Spill; Tellsthe LA Times "Look, We’re Not Oil People. We’re Mostly Physicists." LATimes (6/22) reports, "Engineers working to plug BP’s massive oil gusher inthe Gulf of Mexico should have acted sooner to attempt the so-called top killmethod to overpower and seal the well to boost its chances for success, EnergySecretary Steven Chu said in a recent interview. His team of government scientistshas struggled since soon after the Deepwater Horizon accident to persuade BP toincrease its estimates of how much oil was pouring out of the well – to up to60,000 barrels a day now, from about 19,000 barrels previously – and to deploymore skimming ships and oil booms accordingly. Last month, Chu flew to a BPcommand center in Houston to oversee diagnostics for the top-kill effort, whichengineers scuttled after several days of pumping drilling fluid and bits ofdebris into the blown-out well in hopes of stopping the flow of oil."Look, we’re not oil people. We’re mostly physicists, a mechanicalengineer or two. But on the other hand, there’s a bunch of smart people here,and what we’ve found is that having a bunch of smart people with a differentset of eyes actually see things that other people don’t see and actually helpimprove things," he said.

Most Extreme Elements of EnviroCommunity Circulate Memo Laying Out Attack Strategy on Lindsey Graham; Hey,Frank O’Donnell: Count Us In. E&E News (6/23,subs. req’d) reports, "After nearly a year of treating Sen. Lindsey Graham asperhaps their closest ally on the Republican side of the aisle, environmentalgroups are ready to turn their fire on the South Carolina lawmaker. Athree-page memo acquired by E&E Daily that has been circulating around theenvironmental community indicates that advocacy groups are poised to launch anaggressive campaign against their one-time ally that will paint him as a"flip-flopper" on climate and energy policy. "We’ve watched asSenator Lindsey Graham (R-S.C.) has gone from being a supporter ofcomprehensive climate and energy plan to vocal critic," states the memo."Now Graham is working overtime with his Republican colleagues to kill anymeaningful legislation. "We are tired of Graham saying one thing and doinganother," the memo adds. "It is imperative we hold his feet to thefire and showcase his many flip-flops to the media, Beltway pundits, congressionalstaffers, and our key allies working to pass a bill." "We encourageyou to actively use and promote these points to go on the offensive and damagehis credibility," the memo states.

You Know How Important theMarcellus Shale Is to PA? Folks Who Don’t Even Live in Areas Where theMarcellus is Located Are Demanding Its Exploration. U.S. Rep. Joe Pitts (R-Pa.) writes in the PottstownMercury, "By now, you’ve probably heard about the Marcellus Shale, a layerof rock running thousands of feet below the ground. We’ve known for years thatthe shale held natural gas, however, standard drilling only yielded smallamounts of this gas. By combining the decades old hydraulic fracturing processwith newer methods of horizontal drilling, energy exploration companies areable to extract shale gas in significant quantities for the first time.Hydraulic fracturing involves injecting a water-based mixture into the rock,creating tiny cracks in the shale and releasing gas. The process was first usedin Texas to release gas from wells that were considered dry. A Penn StateUniversity estimate shows that there is now enough gas in the Marcellus Shaleto supply the entire U.S. for more than 14 years. Obviously, the Shale is notgoing to be tapped all at once and will not be the sole source of gas in theU.S., meaning that wells in Pennsylvania will provide a source of natural fordecades. It is estimated that natural gas exploration could lead to more than100,000 jobs statewide. While Pennsylvania’s 16th Congressional District is notlocated above the shale, local companies will certainly benefit.

NYT Not Happy to Report that EPAOfficials Grudgingly Admit the Dispersants Are Working – You Know, the StuffLisa Jackson Spent 3 Weeks Trying to Curtail. NYTimes (6/22) reports, "A continuing question in the spill has been whetherthe injection of a dispersant, itself mildly toxic, to break up the oil ishelping or hurting. The official said that indications were that it washelping. The number of small droplets measured in water nearby was 20 to 40percent higher when dispersant was being applied than when it wasn’t, theofficial said. Early indications are that naturally occurring bacteria aredoing their work on the spilled oil. Government scientists are measuring thisindirectly by monitoring oxygen levels in the gulf. The bacteria consume oxygenas they eat oil, and oxygen levels are normal or slightly depressed, theofficial said. "What we’re finding are conditions that would be consistent andconducive for biological degradation of the oil,” the official said. "We’re notfinding any conditions that show toxicity around the wellhead increasing suchthat we’re concerned we’re making conditions worse instead of better.” And thedispersant has not shown up in near-shore monitoring, the official said.

Group of Corn-Fed GOP SenatorsAsk Obama to Lift the 10% "Blend Wall" on Ethanol – Declare that Clean-Running,Efficient, Operable Engines Are Wildly Overrated. E&E News (6/23,subs. req’d) reports, "Sens. Chuck Grassley (R-Iowa), John Thune (R-S.D.), MikeJohanns (R-Neb.) and Kit Bond (R-Mo.) criticized the delay of a waiver forethanol in a letter to Obama yesterday. "While your commitments in supportof biofuels are encouraging, they are not matched by the actions of youradministration, specifically by the Environmental Protection Agency," theletter states. "The fact is, simple steps could be taken in the very nearterm that would have a real impact on our dependence on foreign oil.Inexcusably, the EPA continues to delay and obstruct those efforts." Thelawmakers — all from states with a heavy economic interest in ethanol — areangry over the recent announcement that EPA’s decision on whether to approvethe higher ethanol blends would come at least several months later thanexpected. Biofuels trade group Growth Energy petitioned EPA for the waiver inMarch 2009. The agency officially had 270 days to decide, but EPA officialssaid in December the decision would have to wait until this summer in order tocomplete more tests.

Massey Lawsuit Alleges FederalMine Regulator’s Decision to Not Approve Critical Ventilation Efforts CouldHave Led to, and Then Exacerbated, Tragedy in W.Va.  WallStreet Journal (6/22) reports, "Massey Energy Co. sued the federal MineSafety and Health Administration and three of its officials Tuesday, arguingthat the agency wouldn’t approve ventilation practices in its mines that Masseysays would have benefited the safety and health of miners. The company, whichis being investigated by the MSHA following an April explosion that killed 29miners at its Upper Big Branch Mine in Montcoal, W.Va., said it couldn’tchallenge the MSHA’s ventilation-plan requirements under federal mine law.Massey said that violated its constitutional rights. In particular, Massey saidthe MSHA prevented the company from using dust scrubbers in its mines thatwould filter out dust that is dangerous for miners to breathe. The lawsuit wasfiled in U.S. District Court in Washington, D.C., by six Massey subsidiariesbased in West Virginia and Kentucky. "The goal of the lawsuit is prettysimple. It’s to retain some control of the ventilation plans our mines operateunder," said Shane Harvey, Massey’s general counsel.

Live It Up While You Can,Comrades: Latest Move by Russia to Deny Its Neighbors Natural Gas Set Against aBackdrop of Massive Expansion of Shale Gas All Across Europe. AssociatedPress (6/23) reports, "Russia on Wednesday further reduced natural gassupplies to ex-Soviet neighbor Belarus over what it claims is a debt of nearly$200 million, but said the transit of its deliveries to European customers hascontinued unimpeded. Supplies to Belarus from Russia’s state-controlled naturalgas monopoly Gazprom were reduced by 60 percent as of Wednesday, the company’schief executive Alexei Miller said in televised remarks. Gazprom initiallyreduced supplies by 15 percent on Monday and cut them by another 15 percentTuesday. It warned Belarus it would eventually cut the deliveries by 85 percentif it refuses to pay off its debt. Belarus’ Energy Ministry has warned in aletter to the European Commission that cuts of more than 15 percent could leadto transit shortages. But the transit of Russian gas to European customers hasso far continued uninterrupted despite the Belarusian threat, Miller saidWednesday.

All Eyes on TheHonorable Martin Feldman. Federal Judge, Appointed by the Gipper, Could Rule asEarly as Tomorrow on Deepwater Drilling Ban. The LATimes (6/22) reports, "Inside New Orleans’ federal courthouse Monday,a judge was deliberating the points of law that could determine the fate of theObama administration’s six-month moratorium on deep-water drilling. Outside,Lucy Lailhengue was marching up and down Poydras Street with a sign thatoffered a more blunt line of reasoning: "If you support the moratorium,stop using oil and gas!" "I just think it’s ridiculous to shut down awhole industry and ruin thousands of lives to punish one company," shesaid. "We’ve had a lot of fatalities on the bridges. You don’t see themshutting down the bridges." That argument, echoed by Gov. Bobby Jindal(R-La.), the oil industry and a multitude of regular folks living close to thedisaster, is at the heart of a lawsuit challenging the moratorium, which wasfiled this month by companies that provide ships and supplies to the offshorerigs. In a two-hour hearing Monday morning, U.S. District Judge Martin Feldmanweighed those arguments as well as rebuttals from environmental groups. He isexpected to decide by Wednesday morning whether to issue an injunctionoverturning the moratorium. Whatever Feldman’s decision, it will likely makewaves far beyond Louisiana. Overturning the moratorium would be an embarrassingsetback for the Obama administration, which has been criticized for not movingaggressively enough to solve the oil spill, and hammered by conservative criticsfor what they say are bullying, anti-business tactics across a range ofindustries. Upholding the moratorium could mean even more economic pain forstates like Louisiana already reeling from the blow to their seafood andtourism industries."

Pres. Obama:"The days of science taking a back seat to ideology are over," ExceptWhen it Comes to Offshore Drilling.The WallStreet Journal (6/22) editorializes, "The President has appointed aseven-person commission to take what he says will be an objective look at whatcaused the Gulf spill and the steps to make offshore drilling safe. But judgingfrom the pedigree of his commissioners, we’re beginning to wonder if his realgoal is to turn drilling into a partisan election issue. Mr. Obama filled outhis commission last week, and the news is that there’s neither an oil nordrilling expert in the bunch. Instead, he’s loaded up on politicians and environmentalactivists. The choice of men and women who are long opposed to more drillingsuggests not a fair technical inquiry but an antidrilling political agenda.With the elections approaching and Democrats down in the polls, the White Houseis looking to change the subject from health care, the lack of jobs and runawaydeficits. Could the plan be to try to wrap drilling around the necks ofRepublicans, arguing that it was years of GOP coziness with Big Oil that led tothe spill? Even as this commission moves forward, engineering experts acrossthe country have agreed that there is no scientific reason for a blanketdrilling ban. The Interior Department invited experts to consult on drillingpractices, but as we wrote last week eight of them have since said their advicewas distorted to justify the Administration’s six-month drilling moratorium.Judging from that decision and now from Mr. Obama’s drilling commission, thedays of "science taking a back seat to ideology" are very much withus."

Anti-DrillingCommission to have "Organizational" Meeting Today in Washington, First "Real"Meeting Not Until Mid-July – Which Means Deepwater Ban May Last Well into 2011.The WallStreet Journal (6/21) reports, "The presidential commission charged withinvestigating the Deepwater Horizon accident has picked a staff director and isholding its first organizational meeting in Washington Tuesday. But oneco-chairman says he’s not sure how quickly policy recommendations will beissued. William K. Reilly, a former Environmental Protection Agencyadministrator, said in an interview that "it’s not inconceivable" the panelwill recommend that President Barack Obama lift his six-month moratorium ondeepwater drilling before the commission finishes its report. But he said thepanel would first need to decide whether the government and industry haveapplied new safeguards to prevent another disaster. "There are about four or five[safety-related] things you’d have to satisfy yourself on before you made sucha recommendation," Reilly said. "It will take us a certain amount of time to[verify] that those things are changed." The pace of the commission’s work hasgenerated intense interest among energy companies as well as members ofCongress worried about the impact of the administration’s six-month halt ondrilling in depths greater than 500 feet. Obama has set a six-month deadlinefor the panel to report back on the cause of the accident. But the clock doesn’tstart ticking until the group’s first official meeting, which Reilly said won’tbe until mid-July at the earliest. That would put the panel’s report – andpotentially the lifting of the moratorium – into 2011."

Facts on Fracking:States Require Disclosure of Fracking Fluids. Accept it and Move on to NextAnti-Energy Campaign. Greenwire/NewYork Times (6/21) reports, "In the intense but inscrutable debate about thechemicals that drillers inject underground to flush out natural gas, this muchcan be said: Everyone is for disclosure. Fracturing — vital to extracting gasfrom shale formations — involves injecting tanker-loads of water and sand intoa gas well to blow apart the rock and release the gas. A small fraction of thatconcoction is a mixture of chemicals as mundane as ice cream thickener and astoxic as benzene."Disclosure would shine a light and encourage companiesto use less toxic chemicals," said Amy Mall, an analyst who works onfracturing issues for the Natural Resources Defense Council. "It givesindividuals the ability to know what’s being used." Companies say they,too, are for full disclosure of the ingredients, but only to state regulatorsand medical personnel willing to sign confidentiality agreements. Making publicdetailed lists of chemical constituents, they say, gives away valuable tradesecrets. And they see the drive for disclosure as a stalking horse for harshnew restrictions on drilling that would bog down gas production in the UnitedStates. "Our position is, ‘We do support it.’ It’s a question of whatlegal channel you’re using to get disclosure," said Chris Tucker, aspokesman for Energy in Depth, an industry group formed to fight federalregulation of fracturing. "But we believe there’s a lot more informationout there than you think right now."

Sen. LugarDraws Early Line in the Sand Prior to WH Meeting on Global Warming: NoCap-and-Trade. TheHill (6/21) reports, "A centrist Republican that President BarackObama is courting on energy legislation on Monday rejected the idea ofgreenhouse gas limits applied only to electric utilities, just days after asenior White House official floated the concept. "No. I said no cap-and-trade,"said Sen. Richard Lugar (R-Ind.), speaking to reporters in the Capitol. Lugar -who is among the bipartisan group of senators slated to meet with Obama at theWhite House Wednesday – said he opposed the utility-focused idea for a "greatnumber" of reasons. This month Lugar floated a bill to curb oil use that doesnot include any carbon regulation. White House Chief of Staff Rahm Emanuel toldthe Wall Street Journal on Friday that "The idea of a ‘utilities only'[approach] will also be welcomed" as a topic for discussion at the Wednesdaymeeting. Emanuel floated the trial balloon at a time when advocates ofgreenhouse gas limits are struggling to keep any carbon provisions in the mixas the Senate prepares to debate energy legislation this summer."

DebunkingGasland: Fella From Trucksville, Pa. on Crusade to Get the Facts out AboutFracking, Natural Gas. WTAE-TV(Pittsburgh) (6/21) reports, "A documentary called "Gasland" thatpremieres Monday night on HBO is a critical look at the natural gas drillingboom that’s happening across the country, including western Pennsylvania. Team4 investigator Jim Parsons said the film is airing in the midst of a politicalfirestorm in Pennsylvania that was sparked by two recent natural gas drillingaccidents in the region. The HBO documentary throws gas on the fire of thedebate over gas well drilling. "Gasland" tells the stories ofeveryday Americans who say gas well drilling has ruined their lives, includinga Colorado homeowner who said nearby gas drilling contaminated his well withmethane and allowed him to light tap water on fire at his home. Chris Tucker,an advocate for the natural gas drilling industry, said "Gasland"director Josh Fox ignored a scientific report that showed the gas in the waterin the Colorado example was naturally occurring and had nothing to do withdrilling. "The film director has that report. He had access to the reportbefore he went there, but obviously that doesn’t make for as good a story, andso he decided to exclude that," Tucker said. An industry group calledEnergy In Depth gave Team 4 the following web links as a rebuttal to claimsmade in the "GasLand" movie: DebunkingGasLand."