News

Ragin’Cajun: Landrieu Calls President’s Decision to Institute Blanket Ban on GulfExploration – And Then Fight to Keep It There – "Uninformed," "Reckless." TheHill (8/17) reports, "Senate Small Business chair Mary Landrieu(D-La.) on Tuesday sharply criticized President Obama’s reaction to the oilspill in the Gulf by halting nearly all drilling activity in the area. "Thedecision to stop virtually all new energy exploration in the Gulf of Mexico wasuninformed and in my view borders on reckless," she said in openingremarks at a field hearing on the moratorium’s affect on the local economy."Today, thousands of Gulf Coast businesses are fighting their way out ofthis government imposed economic disaster that only threatens jobs andbusinesses," she said, adding the moratorium has "substantially reducedthe total amount of economic activity taking place along" the Gulf Coast.The senator warned the president’s decision has made the U.S. more dependent offoreign sources of oil since the country continues to consume 20 millionbarrels of oil a day. "[The] U.S. will necessarily increase its oilimports from other countries with far weaker environmental standards andregulatory regimes, such as Nigeria, Angola, and Venezuela," she said."The record shows that these countries suffer significantly more spills ata much, much more frequent rate, causing more harm to the oceans of theworld."

SomethingRotten: Danish Wind Mill Maker, World’s Largest, Loses 30% of Its Value in aSingle Quarter – Three Guesses Who They’re Blaming for That! Bloomberg(8/18) reports, "Vestas, the world’s largest wind-turbine maker, lost more thana quarter of its value in Copenhagen trading after it reported a larger-than-expected loss and cut forecasts, blaming delayed orders.  The stock dropped the most sinceOctober 2008 after Danish company posted a second-quarter loss of 119 millioneuros ($153 million), exceeding the average estimate of a 7.3 million-euro lossin a survey of 15 analysts.  "Rightnow it’s just a shock, and Vestas has suffered a serious blow to itscredibility," Teea Reijonen, a London-based analyst with Royal Bank of ScotlandGroup Plc, said today. "Analysts are going to take a very dim view of marginsfor 2011 given what’s happened this year." Reijonen had a "hold" rating on theshares before today.  Vestas cutits sales forecast for this year to 6 billion euros from 7 billion euros ondelays in expected orders in the U.S., Spain and Germany. The credit crisis hasprompted banks to restrict loans to wind-park developers that buy turbines fromVestas and competitors including Germany’s Siemens AG, Gamesa Corp. TecnologicaSA and General Electric Co. "We were maybe too optimistic on what we expectedwe could execute in the second half of 2010," Vestas Chief Executive OfficerDitlev Engel said today.

FunnyThing About NOx and SOx Emissions from Coal Plants: Declined Another 36% ThisYear; Here’s the Funnier Thing: Had Nothing to Do with "Cap-and-Trade" Program.Greenwire (8/17, subs.req’d) reports, "Coal-fired power plants have continued to cut their soot- andsmog-forming emissions this year, according to newly released estimates fromU.S. EPA.Emissions data for the first two quarters of 2010 show declines intotal emissions as well as emissions intensity — the amount of pollutionproduced per unit of electricity. The roughly 850 coal-fired power plantsregulated under EPA’s existing Acid Rain Program emitted 2.5 million tons ofsulfur dioxide during the first two quarters of this year, a 36 percentdecrease from the 3.9 million tons they released during the first two quartersof 2008. Emissions of nitrogen oxides fell from 1.5 million tons to 930,000tons, a 37 percent decrease. EPA said the new figures should ease worries aboutpossible increases in SO2 emissions while the agency prepares to replace theClean Air Interstate Rule.  As aresult, SO2 prices have continued to fall, leading traders and some utilitiesto ask Congress to intervene. Without an incentive to hold on to bankedallowances, they say, power plants will not install new controls. "Themarket has said, ‘We get the message, these allowances are worthless,’"said Thaddeus Huetteman, chairman of the Environmental Markets Association

Let’sTalk About that Cap-and-Trade Bit on NOx and SOx – Some Folks Like to CompareIt to Cap-and-Raid for CO2 – Here’s Why They’re Wrong. Marlo Lewis writes (8/17) for MasterResource.org,"However successful the SO2 trading program may have been, it is a dubiousmodel for climate policy, because SO2 and CO2 are different. Utilitiesparticipating in the SO2 emissions trading program could meet all or part oftheir obligations by purchasing low-sulfur coal and/or installing scrubbers, acommercially-proven emission control technology. In contrast, as Kenneth Green,Steven Hayward, and Kevin Hassett of the American Enterprise Institute pointout, there is no low-carbon coal, and no commercial technology to "scrub"carbon dioxide (CO2) emissions out of power plant exhaust streams. Thus, unlikean SO2 trading program, a carbon cap-and-trade program has a high potential tobecome a job-killing energy-rationing scheme. The greater economic risk ofcarbon cap-and-trade schemes derives from another key difference as well.Unlike sulfur, which is an impurity in coal and oil, carbon is intrinsic to thechemistry of fossil fuels. Consequently, whereas capping SO2 does not logicallyentail an unlimited agenda aiming at the abolition of fossil fuels, capping CO2does imply total suppression as an ultimate objective.

TheWorld Is Not Enough: EPA Announces Plan for Regulating Economic Activity OutsideUS Jurisdiction – "Pollution Doesn’t End at the Border, Neither Can OurProtections." E&E News (8/17,subs. req’d) reports, "U.S. EPA will focus on six major internationalpriorities, including climate change and electronic waste, Administrator LisaJackson told environmental officials from the United States, Canada and Mexicoduring a summit yesterday. Announced during a meeting of the Commission forEnvironmental Cooperation in Guanajuato, Mexico, the goals were outlined in amemo to EPA employees yesterday. They are: building strong environmentalinstitutions and legal structures, combating climate change by limitingpollutants, improving air quality, expanding access to clean water, reducing exposureto toxic chemicals and cleaning up e-waste. The agency is committed tointernational work "at a time when our challenges are no longer local oreven national, but global," Jackson told an audience that includedCanadian Environment Minister Jim Prentice and Mexican Environment SecretaryJuan Elvira Quesada. "Pollution doesn’t stop at international borders, andneither can our environmental and health protections," Jackson said in astatement. "This document sends a strong message to our partners in theinternational community that our challenges are shared challenges, and that weare eager to work together on solutions."

Here’sHow Angry Al Gore Is that Congress Didn’t Pass Cap-and-Raid: He’s So Angry, HeFiled a Post on His Blog Today Calling on Other Folks to Do a Rally. TheHill (8/17) reports, "Former Vice President Gore is calling for majorrallies to protest congressional inaction on climate change. In a post on hispersonal blog headlined "The Movement We Need," Gore linked to and quoted froman Australian wire service report that "tens of thousands of protesters … havetaken to the streets across Australia to urge the major political parties totake action on climate change." "Across the world, when politicians fail totake action to solve the climate crisis, people are taking action," Gore wrote.He added after excerpting the news report: "It is my hope we see activism likethis here in the United States." Gore noted he trained activists in Australiato deliver the slideshow that formed the basis for the documentary film thatwon him an Academy Award. A representative of Gore’s Alliance for ClimateProtection addressed the rally in Sydney. Gore has in recent weeks stepped uphis criticism of the Senate for its inability to pass a comprehensive energyand climate bill that would put a price on carbon. In a conference call withenvironmental activists last week, he reportedly said "the United Statesgovernment in its entirety, largely because of the opposition in the UnitedStates Senate to taking action on clean energy and a solution to the climatecrisis, has failed us."

GunControl Ain’t About Guns, As They Say – It’s About Control; So It Is with theEnvironmental Movement: Not About the Environment, Just About Moving Your Jobto China. Robert J. Walker,former president of Handgun Control, Inc., writes on Grist.org,"Supporters of climate-change legislation have much to learn from anorganization that is often rated as the most powerful lobby in Washington: theNational Rifle Association. Don’t fear to be feared.  Progressive groups, including many supporters ofclimate-change legislation, love to be loved.  The gun lobby doesn’t care if you don’t like it, so long asyou fear it.  The NRA, the mostpowerful lobby in Washington, is one of the most reviled.  Many members of Congress, even pro-gunmembers, privately bristle at the tactics of the NRA, but that doesn’t stopthem from voting in lockstep with the gun lobby. Don’t get mad, get even.  Bruised, scarred, and brushed aside, noone could blame supporters of climate-change legislation for being angry at apolitical process that has stymied action on an issue of such greatimport.  When I worked on gunissues, I ran into a lot of activists, particularly the victims and survivorsof gun violence, who were incensed at Congress for its failure to adoptsensible gun laws.  The key was tochannel that anger and frustration into constructive action, and we did thatwith the passage of the Brady Law and the federal assault-weapons ban.

Meanwhile,Back in the Parts of the World that Actually Produce Energy: Massive Deepwater FindsOff the Coast of Australia – This Time, for Natural Gas. WallStreet Journal (8/18) reports, "Three significant deepwater gas discoveriesoff the west coast of Australia announced this week by Chevron Corp. andWoodside Petroleum Ltd. could add momentum to the nation’s emergence as a topnatural gas exporter.  Chevron onMonday said its Acme well, about 150 kilometers off the coast of WesternAustralia state, encountered a net gas pay of 896 feet, making it "one ofour most significant natural-gas discoveries in Australia." It was one ofnine discoveries by Chevron in the area since August 2009 and twice the size ofits next biggest discovery there. The news came as Perth-based Woodside said the Larsen Deep-1 andAlaris-1 wells struck material amounts of gas. Larsen Deep-1 is owned in ajoint venture with Hess Corp. A projected surge in demand for cleaner-burningfuels from developing Asian economies is prompting energy companies to investbillions of dollars on exploration campaigns and large-scale gas exportprojects. Australia’s stable political environment, substantial gas reservesand proximity to Asia make it an attractive place to invest, particularly withU.S. gas prices kept low by ballooning domestic supplies.

ReadingNYT’s Interview of Massey’s Blankenship Is Like Reading Tocqueville’s DemocracyIn America – Dude Can’t Believe Something Like This Even Exists! NYTimes (8/17) reports, "As energy executives go, few manage to stircontroversy and elicit vitriol from environmentalists with as much relish asDon L. Blankenship, the mustachioed chief executive of Massey Energy, one ofthe largest coal companies in Appalachia. Massey was the company involved in adeadly explosion at the Upper Big Branch mine earlier this year, it is alsodrawing fire for its plans to surface-mine a West Virginia mountaintop thatactivists in the area, realistically or not, would rather see turned into awind farm. In a lengthy interview, Mr. Blankenship was characteristicallyunreserved in explaining why he sees this idea – along with global warming andopposition to destructive mountaintop-removal mining techniques – as absurd. "Somepeople believe in CO2 so strongly it trumps every other thought that they’vegot, so we wouldn’t expect them to favor coal mining," Mr. Blankenship said. "Somepeople believe that the country should be socialized so they are opposed tofree enterprise. I mean, you have to have your own beliefs, your own corebeliefs, your own strengths and do what you think is right. You can’t do whatothers believe is right, you have to do what you believe is right."

Know Your Audience: Obama VeryCareful on Where Drops a Line for Cap-and-Raid During Trip Out West – Waits ‘Til$1 Million Fundraiser in Los Angeles to Let ‘Er Rip. LATimes (8/17) reports, "Onlookers lined Olympic Boulevard, snappingcellphone photos. One person held a small sign declaring, "We needjobs." "I was an Obama supporter, but … was stopped by police fromcrossing Olympic to get home … during my daily dog walk," Amy Christinesaid on the website. "I’ve lost all belief in his judgment. Can he reallythink he’s more important than the tens of thousands of people trying to gethome to their families?" Obama told the crowd that he and congressionalDemocrats, through the economic stimulus measure, had "made the biggestinvestments in clean energy in our history – building solar panels and windturbines and advanced batteries." Reaching out to Republicans – andevoking his message at a stop he made earlier in the day – Obama said, "Onenergy, we’re willing to compromise on a whole bunch of issues, but we’ve gotto have a strategy that starts to limit carbon, because we want thoseclean-energy jobs here in the United States. Not in China. Not in Germany."On his way west, the president visited Wisconsin, where he told workers at ZBBEnergy Corp. that his administration had helped jump-start "a homegrownclean-energy industry." At the Los Angeles fundraiser, Obama called foremissions limits – the first time he had mentioned them all day.

Fake It ‘Til You Make It (Up):President Just Pulling Numbers Out of the Ether at This Point – Says Green JobsStimulus Cash will Create 800,000 New Jobs (!) in 18 Months. ABCNews (8/16) reports, "Speaking at advanced battery and electricity storageplant outside Milwaukee, President Obama to push his administration’scommitment to a "homegrown clean-energy industry" to jumpstart manufacturingand create jobs. "For years, we’ve heard about manufacturing jobs disappearingoverseas. Well, companies like this are showing us how manufacturing can comeback right here in the United States of America, right back here to Wisconsin,"Obama said at ZBB Energy Corporation in Menomonee Falls, Wisconsin.  The White House said that ZBB Energy isexpanding its battery production through a $1.3 million Recovery Act loan. Theloan will help fund a factory renovation that the company says will triple itsmanufacturing capacity, help retain several dozen workers and allow it to hire80 new workers. Obama said that the new commitment to clean energy could leadto more than 800,000 new jobs by 2012. "That’s not just creating work in the short term; that’s going to helplay the foundation for lasting economic growth," he said. 

Meanwhile, Investment BankersWho Had Banked on Guaranteed Prices, Markets Thanks to Cap-and-Raid DownrightPetulant Over Congress’s "Inaction" on Artifiically Pricing Carbon. Reuters(8/17) reports, "Alternative energy investment prospects have shriveled in theUnited States after the U.S. Senate was unable to break a deadlock overtackling global warming, a Deutsche Bank official said. "You just throwyour hands up and say … we’re going to take our money elsewhere," saidKevin Parker in an interview with Reuters. Parker, who is global head of theFrankfurt-based bank’s Deutsche Asset Management Division, oversees nearly $700billion in funds that devote $6 billion to $7 billion to climate changeproducts. Amid so much political uncertainty in the United States, Parker saidDeutsche Bank will focus its "green" investment dollars more and moreon opportunities in China and Western Europe, where it sees governmentsproviding a more positive environment. "They’re asleep at the wheel onclimate change, asleep at the wheel on job growth, asleep at the wheel on thisindustrial revolution taking place in the energy industry," Parker said ofWashington’s inability to seal a climate-change program and other alternativeenergy incentives into place. Besides failing to set a policy dealing with climatechange, Parker also complained that on-again, off-again tax incentives forrenewable energy contributes to the poor outlook for investment in the UnitedStates.

Interior Dept. Doubles Down onOffshore Assault – Will Require New EIS and NEPA’s Every Time Someone Throws aDip In Offshore From Now On. E&E News (8/16,subs. req’d) reports, "Full environmental assessments will be required for allnew deepwater drilling, the Interior Department announced today. The move comesas a new federal report outlines flaws in the government’s process in approvingthe well that caused the Gulf of Mexico oil spill. The department will curtailthe use of a provision it had been employing to streamline offshore drillingapplications, including the BP PLC well. For deepwater drilling, the departmentwill no longer use "categorical exclusions," which allowed it toapprove projects without preparing new environmental analyses that wouldnormally be required by the National Environmental Policy Act. A new WhiteHouse Council on Environmental Quality report says the categorical exclusionsused to approve the BP plans were established in 1981 and 1986, long beforedeepwater drilling became widespread. The decision also will affect newdrilling closer to shore. All shallow-water plans will require acategorical-exclusion review to examine whether any factors would trigger anenvironmental assessment — such as the use of unusual technology or a locationnear biologically sensitive areas — and whether the plan’s worst-case spillvolume is greater than accounted for in oil spill response plans.

Lehman, PA’s About as Rural AsIt Gets – Folks Out There Love Their Land, Love Their Country, and Love ThemSome Marcellus Shale Exploration As Well. Wilkes-Barre (Pa.) TimesLeader (8/17) reports, "Despite negative feedback in recent months fromanti-"fracking" groups concerning Marcellus Shale gas drilling, supervisors onMonday night expressed their support for the industry, as did several townshipresidents. Fracking refers to the drilling process of hydraulic fracturing,which uses water and chemicals under pressure to liberate natural gas from theshale deposits. Many have expressed concern that the process could impactdrinking water wells. Carl Kern, who owns trucks that service drillers inBradford County, said the public should listen to the positive side of drillinginstead of the protest.  Forexample, he said the companies are maintaining the roads they use. In LehmanTownship, if a road repair is necessary, the supervisors can call the companyand it will fix it, he said. Board Chairman Dave Sutton concurred, adding thatif the township must repair a road in an emergency situation, it will bereimbursed by the drillers. "It’s nice to hear something positive," Suttonsaid. Kern discussed his support with state Sen. Lisa Baker and believes she isdoing what she can to ensure the drilling "is done right."

EPA Jumps the Shark (Again):Agency Gets Set to Issue New CAFE Rules for Huge Industrial Work Trucks – Can’tWait to See What a Hybrid Caterpillar Looks Like. Greenwire (8/16, subs.req’d) reports, "The Obama administration is preparing to issue new fueleconomy standards and the first-ever greenhouse gas limits for large trucks andbuses. U.S. EPA and the Transportation Department sent draft rules Friday tothe White House regulatory review office that would limit heavy-duty vehicles’emissions under the Clean Air Act and boost fuel economy standards for medium-and heavy-duty trucks, according to a federal website that tracks new rules.President Obama announced the latest initiative during a Rose Garden speech inMay, where he directed officials at EPA and DOT to expand on a joint rulemakingfinalized earlier this year for cars and light-duty trucks for model years 2012through 2016. Obama issued a memorandum directing the agencies to expand theprogram to include medium- and heavy-duty trucks for model years 2014 through2018. "While the federal government and many states have now created aharmonized framework for addressing the fuel economy of and greenhouse gasemissions from cars and light-duty trucks, medium- and heavy-duty trucks andbuses continue to be a major source of fossil fuel consumption and greenhousegas pollution," Obama wrote in the memo.

Sierra Club Chooses College inVermont as "Greenest University" — For the 321^st Consecutive YearThat the Survey Has Been Around. SierraMagazine, the Club’s monthly rag (8/16), writes, "Green Mountain College;Poultney, VT | Score: 88.6; GMC excels in most categories, and it’s the MVPwhen it comes to creativity. The campus gets power and heat from biomass andbiogas (a.k.a. cow power) and plans to be carbon-neutral by next year.Intercollegiate rivalry is a long and hallowed tradition. That was theoperating premise, anyway, behind our fourth annual Coolest Schools survey. Wesent out 11-page questionnaires to 900 colleges and universities across theUnited States, asking them to detail their sustainability efforts. We received162 responses, nearly all of them painstakingly thorough. Justin Mog, who workson sustainability initiatives at Kentucky’s University of Louisville, was oneof several respondents who confirmed our original idea, thanking us for"keeping up the competitive pressure on universities to push thesustainability envelope." Although we worked hard to apply rigorous,objective standards when evaluating the questionnaires, a certain amount ofsubjectivity was inevitable, and we hope that readers (and the growing legionof college sustainability officers) will bear that in mind. The point, afterall, is to create competition, to generate awareness, and to celebrate that somany colleges even have a sustainability officer.

"Changingthe Color of the Getaway Car": WH Denies It’s Trying to End Gulf Drilling -While At Same Time Instructing Its Interior Dept. to Withhold Permits for NewActivity. FOXNews (8/11) reports, "With the Obama administration returning to federalcourt to defend its six-month suspension of oil drilling in the Gulf of Mexico,industry executives and analysts claimed the ban was more stringent thanoriginally believed, and exerting a greater impact on the lives and livelihoodsof Gulf Coast residents. "They’re painting the getaway car a different color,"said Dan V. Kish, senior vice president for policy at the Institute for Energy Research in Washington.  Kish said the original moratoriumapplied only to drilling rigs operating in 500 feet of water or deeper, butthat the July 12 order by Salazar applies to all floating rigs in the Gulf.What’s more, Kish said there are effectively two moratoria in place: the formalone, targeting deepwater drilling, and an informal one targeting shallow-waterdrilling operations.  "About halfof the rigs in the shallow waters of the Gulf are not operating," said Kish, "becausethey can’t get permits from the government agency that is supposed to give thempermits.  So, in essence, what’shappening is that much of the fleet of deep- and shallow-water rigs in the Gulfof Mexico, which supplies a third of our domestic oil, are being laid up, putin cold storage, awaiting the government to make a decision one way or theother."

Don’tMess: Republic of Texas Jumps Foursquare Into Offshore Ban Debate; Files Suitin Federal Court Demanding This Monstrosity Be Lifted – For Real. HoustonChronicle (8/11) reports, "The state of Texas has filed suit against thefederal ban on offshore drilling, saying the move violates a law requiringofficials to consult with the states on such matters first. The law, the OuterContinental Shelf Lands Act (OCSLA), requires the Interior Secretary tocoordinate with states that might be affected by drilling decisions beforetaking any actions and to weigh the economic impact of actions such as the banbefore imposing them.  TheDepartment of the Interior imposed the ban earlier this year, in reaction tothe massive oil spill that followed a blowout of a BP oil well in the Gulf ofMexico. The administration withdrew it when a federal judge in New Orleansblocked the effort and a number of companies filed suit. But on July 12 the DOIre-imposed the ban with some changes. "The federal government ignored theState of Texas and failed to comply with the law when the Secretary of theInterior unilaterally imposed the Administration’s offshore drilling ban,"Attorney General Greg Abbott said in a statement. "Under federal law,affected states are guaranteed the right to participate in offshoredrilling-related policy decisions, but the Obama Administration did not botherto communicate, coordinate or cooperate with Texas." An economicimpact analysis done by Louisiana State University says Texas will suffer a$622 million decrease in Gross State Product due to the six-month moratorium,meaning the state meets the statutory definition of an "affectedstate" under the OCSLA and should be consulted, the filing says.

FollowUs on This: Enviros Want BP to Pay $20 Billion (and More) to All Who Ask – ButDon’t Want BP to Produce the Energy Needed to Generate those Funds. TheHill (8/11) reports, "Environmentalists are attacking potential White Houseplans to use money from BP’s future Gulf of Mexico production as collateral forthe $20 billion oil spill claims fund, fearing it would make the government acheerleader for wider drilling. "We haveserious concerns. We think it would incentivize new drilling by BP in the Gulf,"said Beth Lowell, federal policy director for Oceana. "It is outlandishthat we would encourage them to do the same thing that got them into this messin the first place." "Under the latest negotiations, BP would use productionpayments from its producing Gulf wells as collateral for the fund and wouldprovide quarterly production updates to the government. The collateralrequirements would be reduced as BP pays money into the fund," the Journalreported, citing an administration official who called it an "option." TheNatural Resources Defense Council is also criticizing the idea. "We do need BPto remain solvent to fund the escrow account, but what the Journal reports is abad idea which will, if implemented, cast a shadow on the legitimacy of futureregulatory activity in the Gulf by the Bureau of Ocean Energy (formerly theMinerals Management Service), NOAA, and every other federal agency charged withwatching over BP’s Gulf operations," said NRDC’s David Pettit in a blog postTuesday.

PreviouslyContent to Spend Millions Attacking Job-Creators Along Coasts, Hard CoreEnviros Turn Their Attention to Coal Producers in Intermountain West. DowJones/Wall Street Journal (8/11) reports, "Western U.S. coal producers areincreasingly coming under fire by environmental groups that see a chance tofight climate change by curbing output from the nation’s largest coal basin.For years environmentalists have lobbied for tougher limits on the emissions ofheat-trapping gases blamed for climate change from power plants, vehicles andother direct sources. But the collapse of federal climate-change legislation inrecent weeks and growth of coal exports to Asia is leading some groups to lookpast the smoke stacks and aim to quash emissions by stymieing production offuel. Environmental groups have found some success curbing eastern coalproduction, particularly from mountaintop-removal mining in Appalachia. WesternU.S. coal production has largely stayed out of the spotlight, but this ischanging as environment advocates begin to zero in on the new leases andgrowing exports of Powder River Basin coal to Asia from the U.S. West Coast.Exports are a particular concern because the sale of U.S. coal overseasundercuts domestic effort to reduce emissions and weakens internationalcooperation on climate change, environmental groups say.  "That is a very serious line inthe sand," said Bruce Nilles, director of the Sierra Club’s Beyond CoalCampaign, of efforts by Western U.S. miners to grown Asian exports.

HowPerverse Is Their Obsession to Destroy Coal? Enviros Actively Oppose Efforts toCapture and Store Carbon Emitted by Coal – Makes for a Better Fundraising Letter. ClimateWire (8/11,subs. req’d) reports, "George Peridas, who has been pushing California’sinterest in decarbonization efforts for the Natural Resources Defense Council,explained at the symposium that the state’s powerful environmental groups aresplit on the issue of CCS. Some worry that the technology will detract fromfurther efforts to promote renewable energy; others are mainly focused on fighting the coal industry. He agreeswith Benson that if California is going to succeed in taking most of the carbonout of its energy system, CCS technology will be needed. "Pioneer projectslike HECA are very important," he said in an interview. "Althoughthis isn’t one of our favorite climate solutions, it is one of those that isneeded. It helps move the ball forward in getting CCS deployed." Peridasis concerned that while California is leading the nation by imposing a cap oncarbon emissions, it has fallen behind other states and the federal governmentsin drafting regulations for carbon capture and storage. In theory, a plant suchas HECA should get benefits under a cap-and-trade system, if it has loweremissions than a natural gas-fired power plant. "They might get excesscredits to sell, but the framework for this has yet to be worked out."Mark Brownstein, deputy director of energy programs for the EnvironmentalDefense Fund, agreed. He said the "simple fact is that it [coal] is goingto be with us for quite a while. Phasing out of coal may take 50 to 100 yearsto do."

Stopthe Presses: New Report Finds EPA Not Capable of Brining In the Best People toDo The Jobs They Need – Like Destroying Our Economy. E&E News (8/11,subs. req’d) reports, "U.S. EPA suffers from a hiring process that fails toplace the right candidates in the right positions, a recent report from theagency’s inspector general found. The 37-page report analyzed the consolidationof EPA’s hiring services into three centers in North Carolina, Ohio and Nevada.Without sufficient technology investments or staffing plans, the servicecenters have failed to meet expectations, the report found. "Servicecenters did not consistently provide program managers with the best candidates,and data quality and recruitment action processes need improvement," IGinvestigators wrote. "As a result, the appointment process is notproviding program offices with the right people, in the right place, at theright time, thus impacting EPA’s ability to effectively perform itsmission." EPA now takes an average of 141 days to fill vacant positions –far above the Office of Personnel Management’s government-wide goal of 80 days.And because the agency has not implemented a complete electronic work flowsystem, employees are filling positions using a mixture of electronic and paperforms. The report describes one instance where a missing page in an applicationled to 27 days of e-mails to resolve the problem. IG officials also found thatemployees at the service centers are not as experienced "asexpected," leading to further delays and increased training.

WSJDetails How Iran’s Once Buoyant Plans to Develop OPEC-Style Cartel for NaturalGas Have Fallen By Wayside – Shale Gas, We’re Looking At You.  WallStreet Journal (8/12) reports, "Iran’s LNG plans have been key to Tehran’slong-term goal of diversifying away from its aging oil fields as a source ofexport revenue. In interviews with the Iranian oil ministry website, Shana,published Saturday and Monday, top Iranian oil officials said they wouldsuspend the Persian LNG and Pars LNG projects. Both were being developed to takeadvantage of gas from one of the world’s largest gas fields, which Iran callsSouth Pars and shares with Qatar in the Persian Gulf. In the Saturdayinterview, Ahmed Ghalebani, managing director of the National Iranian Oil Co.,didn’t cite sanctions as a reason for the suspension. He said the nationalenergy company was scrapping some LNG projects because they were too costly andcomplex. Iran would instead build more pipelines, he said.  Iran’s decision-making could have beeninfluenced in part by the current cyclical glut in the LNG market, which hasdepressed prices in various parts of the world. But one Iranian gas officialfamiliar with the projects said the most recent round of sanctions enacted bythe EU, some of which target Iran’s energy sector, played a role. Mr. Ghalebanisaid the country wouldn’t abandon LNG projects altogether. Another largeproject, Iran LNG, is nearing completion and is expected to go online in 2012.

NowWe See: With Passing of Peak Oilers’ Top Exponent, How Will the ConspiracyTheory Fare in a World of Near-Daily (Massive) Energy Discoveries? WallStreet Journal (8/9) reports, "But Simmons helped to being the peak oiltheory to the mass media, after traveling to Saudi Arabia in 2003 to researchthat nation’s secretive data on oil reserves, or the amount of oil able to bepumped out of the ground. His book became an instant classic among conspiracytheorists. Simmons was back in the limelight this spring when BP oil’s rig inthe Gulf of Mexico exploded. He went out on a limb (his critics say too farout) by predicting in June that the spill would cause BP to go bankrupt andthat "if a hurricane comes and blows this to shore, it could paint the GulfCoast black." In recent weeks, BP has capped the leak and independentscientists have found that environment damage from the spill has been less thaninitially feared. (Simmons supported offshore oil drilling in 2008, but saidAmericans need to change their energy-consumption habits because even offshoresources wouldn’t produce enough oil to sustain world demand.)  Peak oil remains hotly contested andthe information about reserves from less than forthcoming from such oil-richnations as Saudi Arabia and Nigeria is incomplete, to say the least.Regardless, peak oil has lost one of its most eloquent adherents.

GoodNews, Everyone (Who Lives in Georgetown): New Fancy Light Bulbs Mandated byCongress Now Only Cost $20 a Piece, Down from $30 Last Year. NYTimes (8/11) reports, "This week, Home Depot fired a new marketing salvo inwhat is expected to be a broader national effort to get home customers to adoptLED lighting. A 40-watt-equivalent bulb sold online at Home Depot. The retailgiant began selling one of the light bulbs in its highly energy-efficientlineup at a surprisingly affordable price of just under $20 online.Bricks-and-mortar stores will follow in September. While $20 hardly sounds likea deal at first blush, such bulbs are expected to last as long as 30 years. Notlong ago, such bulbs were not expected by most experts to cost less than $30until 2012. That’s the year, of course, when a federal law takes effectrequiring that all bulbs sold in the United States be 30 percent more efficientthan current incandescent bulbs. Even with improvements, incandescent bulbs arenot expected to meet those standards, so many manufacturers are working onpushing their LED bulbs. Unlike compact florescent bulbs, which have beenunpopular with consumers because of the pallid light they cast, some newer LEDbulbs are closer to the warmth and brightness of the regular incandescent. HomeDepot says it is actively encouraging consumers to compare.

Fmr.Sen. Ted Stevens Remembered as Indefatigable Proponent and Exponent ofAffordable, Reliable, American Energy.TheHill (8/10) reports, "American Petroleum Institute President Jack Gerard onTuesday joined the list of people expressing sadness over the death of formerAlaska Sen. Ted Stevens (R) in a plane crash. "Ted Stevens loved Alaska andcared deeply about his constituents. He understood the importance of the oiland natural gas industry, and he worked tirelessly to help secure a strongerenergy future for Alaskans and all Americans. We express our condolences to hisloved ones," Gerard said in a statement. Stevens was a longtime advocate of theoil industry and helped bring jobs and revenues to the state by backingdrilling throughout his career. Stevens steered legislation through Congress inthe early 1970s that authorized construction of the Trans-Alaska Pipeline. Buthe fell short in his decades-long push to open the Arctic National WildlifeRefuge to oil drilling, calling a late 2005 vote that defeated ANWR drilling "thesaddest day of my life."

EPAWilling to Spend $2 Million of Your Tax Dollars on Duplicative Study onHydraulic Fracturing – But Not Willing to Pony Up a Few Extra K to Hold CivilForum in Binghamton. NYTimes (8/10) reports, "The hearing had just been moved to Syracuse afterthe original venue, Binghamton University, set conditions that E.P.A. officialsfound unacceptable and sent the agency looking for an alternate site in ahurry. Judith Enck, the E.P.A.’s regional administrator in New York, said thatBinghamton University had been squared away as a site last month but suddenlydecided to change the meeting’s location to a room with no air conditioning.When the E.P.A. "pushed back" on this change, she said, the university relentedbut raised its fee for the event.  "Itis regretful that Binghamton University has put E.P.A., and more importantly,thousands of people on both sides of the issue who had planned to attend thismeeting, in this inconvenient and difficult position," Ms. Enck said in astatement. "Universities are places where civic participation should flourish,especially on a major environmental topic like hydraulic fracturing’s potentialimpact on drinking water." But university officials countered that they hadraised the price to cover security and logistical costs after consulting locallaw enforcement officials, special interest groups and others that indicatedthat as many as 8,000 people could show up for the hearing, far more than the1,200 participants that the E.P.A. had pre-registered for the event.

HouseGOP Puts Members on the Record Regarding Support or Opposition to Using LameDuck Session as Means to Ram Thru Unpopular Carbon Criminalization Bill. E&E News (8/10,subs. req’d) reports, "House lawmakers today derailed a Republican bid to blockDemocrats from pushing through controversial climate legislation during alame-duck session. On a 236-163 procedural vote, the House quashed a resolutionfrom Rep. Tom Price (R-Ga.) pledging that Congress would not convene betweenNovember and January except in the case of a national emergency. Price andother GOP lawmakers are looking to fend off Democrats’ efforts to pass majorlegislation including a sweeping climate and energy bill after the Novemberelection. Top White House officials and Democratic leaders have suggested thatclimate legislation that stalled in the Senate this year may have a better shotonce political pressure on Capitol Hill has dissipated. "Democrats aretrying to avoid accountability by delaying the passage of a national energy taxand other unpopular policies until after Election Day," Price said in astatement. "Some might think that is a good way to override the will ofthe public, but it is a terrible way to govern. A lame duck session should notbe used as a post-election blitz to impose liberal programs that Americans donot support."

Lotsof Talk About How a Boxer Loss Might Impact Cap-and-Raid in DC – But WhatHappens to CA’s A.B. 32 if Jerry Brown Loses the Governor’s Seat? Politico (8/11)reports, "Nowhere is the battle more intense than in California, whereDemocratic Attorney General Jerry Brown and Republican Meg Whitman are at oddsover the state’s landmark law to reduce heat-trapping emissions to 1990 levelsby 2020. Whitman favors a one-year suspension of the law, known as AB 32, togive the state’s economy time to recover from the recession. The former eBaychief executive said last fall that the climate law, which Republican Gov.Arnold Schwarzenegger signed in 2006, "may have been well-intentioned, but itis wrong for these challenging times." Brown’s campaign has seized on Whitman’srightward shift during her heated GOP primary, which waded into doubts on thescience of global warming. And his campaign said Whitman is waffling when itcomes to her views on a separate ballot initiative – funded by out-of-state oilcompany interests – that would halt AB 32 unless there’s a dramatic economicturnaround. "We’re opposed to climate change, and Meg Whitman isn’t sure it’sreal," said Brown spokesman Sterling Clifford. "That’s the critical distinctionon that issue."

EdMarkey Likens Vote to Bail Out Public Sector Unions By Cutting Solar Hand-Outsto a "Sophie’s Choice" – Our 8^th Grade Literature Teacher Tells UsHe Meant a "Hobson’s Choice." TheHill (8/10) reports, "Rep. Edward Markey (D-Mass.) on Tuesday denounced theSenate for forcing the House into making a "Sophie’s choice" in backingemergency state aid partially paid for by stripping away renewable energyincentives. Markey – who has been a leading lieutenant to House Speaker NancyPelosi (D-Calif.) on energy and environment issues – blamed the Senate forsending the House a $26.1 billion state education and Medicaid funding packagethat is partially paid for by slashing $1.5 billion in renewable energy loanguarantees approved in last year’s economic stimulus bill. "It’s just somethingthat unfortunately I have to deal with in terms of the way in which the Senatehas been forced to operate in 2010," Markey said, shortly before the Houseapproved the Senate-passed aid package. "It’s unfortunate that these kinds ofSophie’s choices [occur] but it in no way undermines the long-term commitmentfor renewable energy, which the Speaker and the Democrats have." Pelosi madethe unusual move of calling House lawmakers back from their summer recess toapprove the emergency funding, and held a signing ceremony afterward. She didnot take any questions from reporters. 

NoSunshine in Britain? No Problem, Say Solar Lobbyists – Just Ensure Our Power IsPrices 10 Times the Market Price, and All Will Be Fine. ClimateWire (8/10,subs. req’d) reports, "A new feed-in tariff 10 times the price of regularelectricity is fueling a boom in photovoltaic solar power generation in theUnited Kingdom. Since the tariff came into effect April 1, 12.4 megawatts ofphotovoltaic solar power generation were installed — that’s 50 percent morethan in the last two years combined, according to the Office of the Gas and ElectricityMarkets, or Ofgem, Britain’s energy regulator. The bulk of the new solar panelswere connected at 4,882 domestic installations in England, Scotland and Wales,accounting for 12.28 megawatts. Twenty-three commercial installations and eightcommunity installations account for the rest. Northern Ireland operates asimilar feed-in tariff program that is not included in this data. The U.K.government hopes the feed-in tariff will encourage deployment of small-scale,low-carbon electricity generation, particularly by individuals, householders,organizations, businesses and communities that have not traditionallyparticipated in the electricity market. The government expects the program willeventually support more than 750,000 small-scale low-carbon electricityinstallations and will save 7 million metric tons of carbon dioxide.

ActivistsAttempting to Target BP Hilariously Miss the Mark in Boycotting, VandalizingBP-Branded Filling Stations – Think These Folks Know BP Doesn’t Actually OwnThese Things? NYTimes (8/10) reports, "BP owns fewer than 2 percent of the 10,000 stationsacross the country that carry its brand, but that did not spare its independentstation owners from boycotts, protests, vandalism and customer tirades aboutfouled beaches and oiled wildlife during the more than three months that crudeflowed into the Gulf of Mexico. "You don’t have a problem like this and have itgo away overnight," said Tom Bower, whose company owns about 30 BP stations inGeorgia and supplies BP brand gas to many more stations in the state. "It’sgoing to take a lot of work, but hopefully they’ll persevere." Sales remaindown at BP stations nationwide, not just those in the Gulf Coast. The degreesof loss vary widely, with a few station owners still experiencing severedeclines in business, and others feeling little or no effect. In general, thedisruption appears to have topped out early in the crisis, with the persistenthit to sales lower than industry observers had expected. To blunt the impact ofthe spill, BP has also offered station owners and distributors small discountson fuel and a break on credit card fees. Those hurt the most by the crisisappear to be small, family-owned stores where a combination of geography andthe proximity of competing stations has driven large numbers of former patronsaway.

Peak-OilerMatt Simmons Was Wrong (A Lot) More Times in His Career Than He Was Right, ButHis Passing Marks Sad Day for Energy Sector. HoustonChronicle (8/9) reports, "Matthew R. Simmons, 67, founder of Houston-basedinvestment bank Simmons & Co. and the Ocean Energy Research Institute passedaway in Maine suddenly on Sunday, according to a statement from his office.According to local press reports he accidentally drown "with heart diseaseas a contributing factor" at his home in North Haven, Maine. He issurvived by his wife, Ellen, and their five daughters.  Details of the services are pending. Inlieu of flowers, the family asks that donations be made to the Ocean EnergyResearch Institute. Simmons is perhaps best known for his book Twilight in theDesert, which claims Saudi Arabia’s oil fields were becoming depleted much morequickly than the kingdom would admit. Most recently Simmons expressed seriousdoubts about BP and government accounts of the Gulf oil spill. A formalsevering of ties between Simmons & Co. and Simmons followed some of hisharsher comments.

Taps for TAPS: Enviro Efforts toDeny Access to Chukchi, Beaufort, ANWR Part of a Larger, Simpler Strategy toRender Useless the Alaskan Pipeline. LATimes (8/10) reports, "In its heyday in the 1980s, the pipeline carried asmuch as 2.1 million barrels of oil a day from America’s largest oil field atPrudhoe Bay to the port of Valdez. Alaska was transformed into a petro statewith an oil savings account worth $33.3 billion. Today, however, the pipelineis carrying only about 660,000 barrels of oil a day, and production from theNorth Slope’s aging fields is set to steadily decline over the nextdecade.  What this means for thecontinued delivery of oil to the rest of the U.S. from Alaska is significant.Engineers have warned that the pipeline – the only means of delivery of NorthSlope oil – will develop potentially dangerous problems with corrosion and iceif flows drop below 500,000 barrels a day, as they are expected to within thenext five to 10 years. At 350,000 barrels a day, frost heaves could cause theunderground portions of the pipeline to dangerously wrinkle and kink. Already,oil that once took 4½ days to surge from Prudhoe Bay to Valdez now crawlsthrough in 14 days, with flow rates slowed to 2 mph. Alaska officials say thebest way out of the pipeline dilemma is to generate new production.Conservationists who have urged a slowdown in the march of oil development intothe vulnerable regions of the Arctic coastal plain and outer continental shelfconcede the problem with pipeline flows but say the oil companies are using thethreat of a pipeline shutdown to get access to more oil without paying for thescientific studies needed to do it safely.

Red All Around: Chinese RigSlated to Be Producing Oil in Cuban Waters for a Spanish Company Operated byCanadian Engineers Starting in 2011. Edmonton Sun(8/9) reports, "A Chinese-built drilling rig is expected to arrive in Cubanwaters in early 2011, likely opening the way for full-scale exploration of theisland’s untapped offshore fields. The journey to Cuba will take two months,and once it arrives it will be put into operation almost immediately, said theofficial, who asked not to be identified. It will be used first as anexploratory well for a consortium led by Spanish oil giant Repsol YPF, whichdrilled the only offshore well in Cuba in 2004 and said at the time it had foundhydrocarbons. Cuba has said it may have 20 billion barrels of oil in itsoffshore, but the U.S. Geological Survey has estimated a more modest 4.6billion barrels and 10 trillion cubic feet of gas. Repsol has been mostlysilent on the long delay in drilling more wells, but it is widely assumed inthe oil industry it was due to the longstanding U.S. trade embargo againstCuba. Repsol is said to be planning at least one exploration well and possiblyanother. The rig will then be passed to other companies with contracts to drillin Cuban waters. Cuba’s portion of the Gulf of Mexico has been divided into 59blocks, of which 17 have been contracted to companies including Repsol,Malaysia’s Petronas Brazil’s Petrobras, Venezuela’s PDVSA and PetroVietnam. 

The Story You Won’t Hear: MoreCash Paid to PA State Forests by Single Marcellus Producer Than the StateDivvies Out for Forest Conservation in 3 Years. PittsburghTribune-Review (8/10) reports, "Marcellus shale gas drilling in stateforests could pay the Pennsylvania Oil and Gas Fund – an account for stateparks and conservation projects – more cash from a single energy company thanit typically collects in three years. A spokesman for Talisman Energy Inc.,which leases mineral rights on 5,700 acres in Tioga State Forest, saidyesterday that 13 Talisman wells there are producing 55 million cubic feet ofnatural gas a day. That translates to about $33,000 to $34,000 daily in royaltiesto the state fund.  At that rate,the publicly traded Warrendale company could pay $12 million a year to a fundthat previously collected $3.5 million to $4 million a year. Royalties aregrowing as wells ramp up production. A spokesman for the Department ofConservation and Natural Resources said the fund collected $680,877 inroyalties from Marcellus shale wells last month, as of July 28. That’s adramatic increase from six months earlier when the royalties totaled $98,333.In Pennsylvania, Mark Scheuerman of Talisman Energy said his company’s stateroyalty payments could increase significantly as drilling continues.  And that’s just a portion of thepotential money for the state fund. A spokesman for the Department ofConservation and Natural Resources said three other companies – Anadarko,Seneca Resource and PGE – have producing Marcellus shale wells on state landwhere they hold leases.

Why Would George Soros PumpMillions Into MoveOn.org to Deny Private Landowners Access to Their Gas Rightsin PA, NY? Read On. Ed Laskywrites (8/9) on the AmericanThinker, "George Soros is continuing his assault on America’s shale gasindustry. His latest step is to mobilize MoveOn.Org, a so-called 527 group thathe liberally funds, to join forces with the very left-wing Working FamiliesParty of New York in an effort to stop the process of hydrofracking: a crucial, and safe, technology used to tap our nation’s abundant natural gas reserves:Why would the group focus on stopping the development of shale gas? BecauseMoveOn is following the agenda of George Soros. He wants shale gas — a vast,easily tapped resource located on-shore throughout large swaths of America –to be plugged up. This helps his big financial interest in the Brazilianpetroleum company Petrobras, the Australian-based InterOil corporation, and thebillion dollars he is pouring into "renewable" energy schemes. Sorosalso has pulled in his billionaire pals, Herbert and Marion Sandler who havefounded and funded their own media outfit, ProPublica, that is purportedly anon-partisan investigative group. ProPublica has for some odd reason focusedmuch of its efforts on disparaging the shale gas industry. There seems to be aconcerted effort among George Soros and the Sandlers and their pet groups,MoveOn.Org and ProPublica, to derail America’s most promising domestic energyresource: shale gas.

 WH Cries Crocodile Tears onUntimely Death of Carbon Criminalization – Blames GOPers Publicly, ButPrivately Tossing Greens Under the Hybrid Bus. Greenwire(8/9, subs. req’d) reports, "The White House is "deeply disappointed"that Congress hasn’t passed climate legislation but won’t give up on getting itdone this year, President Obama’s top climate and energy adviser saidyesterday. Carol Browner said on NBC’s "Meet the Press" that theadministration is still holding out hope for a legislative victory on climateand energy, despite the political challenges of passing a controversial billthrough the Senate after the chamber returns from its August recess. "TheCongress is coming back. We will continue to see if we can getlegislation," she said. "We passed it in the House. We’ll continue towork in the Senate." Rep. Tom Price (R-Ga.) will seek a vote this week ona resolution asking Congress to agree not to pursue controversial bills likeenergy and climate during such a session. But even advocates of greenhouse gascurbs acknowledge that a lame-duck push for a climate bill will be a toughslog. "Barring a surprise, it’s going to be very hard, even in a lame-ducksession, to get 60 votes for a carbon cap," climate bill co-author Sen.Joe Lieberman (I-Conn.) said last week. "It’s not impossible, but it’svery hard."

 The Sun Also Sets: SolarLobbyists Won’t Get Bonuses This Year if Pelosi Public Sector Bailout BillPasses – Can’t Believe They Let a $1.5B Rescission Slip Thru.E&E News (8/9,subs. req’d) reports, "The renewable industry is stepping up calls for Congressto replace loan guarantee funding on the eve of House passage of a state aidbill partially paid for by taking $1.5 billion from the Energy Department’sstimulus program. The Solar Energy Industries Association said taking another$1.5 billion from the program on top of $2 billion that Congress rescinded lastyear would be a "terrible mistake" and "jeopardizes" $15billion to $20 billion in private investment. "A $1.5 billion rescissionwould cut the DOE loan guarantee program to the point where it would besubstantially over-subscribed and many meritorious applications would likely bedenied," wrote Daniel Adamson, vice president of government affairs forSEIA, in a letter to lawmakers. SEIA President Rhone Resch also asked PresidentObama today to restore the funding and to extend another program that providescash in lieu of tax credits for renewable energy project financing. The solarindustry’s efforts follow requests last week from wind, biomass, hydropower andgeothermal companies asking the House not to approve the program cuts.

From Small Mom and Pop Shop inHouston, to Fast Growing Washington Powerhouse, IER Quickly Becoming a Force inWashington Energy Policy Circles.Human Events (8/8) reports, "For an organization that opposescap-and-trade legislation and bans on offshore drilling, promoting free-marketenergy principles comes naturally. Praised by Rush Limbaugh as the "energyequivalent" of the Heritage Foundation, the Institute for Energy Research seeksto educate the public, legislators, academia and the media on free-marketsolutions to the world’s energy challenges. IER was founded in 1989 by RobertL. Bradley Jr. in Houston. Leading a small group of volunteers at first,Bradley worked nights and weekends to grow IER into an effective educationalorganization. In establishing itself as a respected research institute, IERbegan distributing quarterly reports to a small but growing list of donors inthe early 1990s and eventually expanded its publishing capabilities to includehighly publicized studies. Despite having an impressive media presence, IER’sability to influence lawmakers was limited due to the organization’s distancefrom Washington, D.C. This all changed in 2007 when IER opened its Washingtonoffice, transforming itself into a formidable energy think tank offeringresearch and analysis on global energy markets. Recently, IER has been involvedin a number of campaigns to influence public policy. The organization was thefirst to call for the removal of President George W. Bush’s ban on offshoreenergy exploration. In 2008, IER experts conducted analysis on theWarner-Lieberman Climate Security Act, creating an online map that projectedthe legislation’s potential cost to each state. Most recently, IER staffcreated a website where homeowners can go to calculate how much they will haveto pay for the Kerry-Lieberman cap-and-trade bill."

With Unemployment Nearing 10Percent, There’s Hope in Appalachia; It’s Called the Marcellus Shale, and He’sHiring. West Virginia Public Broadcasting (8/9) reports, "Marcellus Shaledrilling is still in its infancy in West Virginia, but the industry is alreadycontributing millions of dollars to the state’s economy. It may be awhilebefore the gas industry’s economic impact rivals that of coal in West Virginia.Mike Shaver, clad in a hard hat and muddy boots, surveys a gas drilling rig ona site in Upshur County. As a crew drills towards the Marcellus Shale, a pipepumps water and dirt out of the hole in the earth and into a huge pit of muddy,rock-filled water. Shaver looks at the water, trying to determine how muchfarther the drill has to go before reaching shale gas. Shaver is the owner ofMountain V Oil and Gas, based in Bridgeport. His company started drilling inthe Marcellus Shale two years ago. He says the Marcellus hasn’t changed hisbusiness-he’s still drilling for gas, after all-but now things are done on abigger scale. He drills fewer wells to get the same amount of gas, but they’redeeper and more expensive to drill. "Instead of drilling 60-100 conventionalwells, we’re looking at only drilling 15 Marcellus wells due to the cost," hesaid. "The production on the Marcellus has proven to be worth changing ourbusiness model. Basically, the way we’re looking at it, it takes 10conventional wells to equal the production of one Marcellus well, based on ourresults in Upshur County." When gas drillers began tapping the West VirginiaMarcellus Shale in 2002, only two wells were drilled. In 2008, that number hadskyrocketed to 299, according to a report sponsored by the federal government.Though gas has been drilled in the state for years, with the Marcellus Shalethe industry is booming."

CanAnyone Name One Industry (Other than Ethanol) that Receives Guaranteed MarketShare? Well, That’s What an RES will Accomplish, and Senate Dems are Lining up BehindLame-Duck Strategy to Make it Happen.  E&E News (subreq’d, 8/5) reports, "Fivemore senators have signed onto a growing push — which now includes more thanhalf the chamber’s Democrats — to convince their party’s leaders to include arenewable electricity standard in an energy bill that could come to the floorin September. Majority Leader Harry Reid (D-Nev.) stripped language dealingwith an RES from his pared-down energy package that was slated to come to thefloor this week, saying it did not have enough support. But plans to debate thebill were scuttled, as Democratic leaders were unable to garner 60 votes.Yesterday, Reid indicated he was considering bringing a larger energy packageafter recess. That news likely will please the 32 Democrats who signed onto a letter yesterday urging him to includean RES in an energy package. "We write today to express our support forincluding a national renewable electricity standard (RES) in any energy legislationthat is brought to the floor this summer and want to work with you to ensurethat the strongest possible RES passes in the Senate," the letter says.The group, led by Sens. Byron Dorgan of North Dakota, Tom Udall of New Mexicoand Mark Udall of Colorado, also urges Reid to "ensure that the strongestpossible RES passes in the Senate."

Recognizing That They GotTheir Clocks Cleaned by the American People in the Cap-and-Trade Debate, EnviroMovement Going on Defense to Protect EPA Endangerment. Politico(8/8) reports, "When it comes to global warming, the environmental lobby isgoing on defense. Stung by the failure to secure a Senate vote on climate and energylegislation and wary of a possible GOP-led Congress, leaders of some of thecountry’s most influential green groups are moving cash and staff away from capand trade. Environment America, the Sierra Club and the Union of ConcernedScientists, with more than 2.5 million members combined, now consider it theirtop job to defend the Environmental Protection Agency’s authority to writeclimate rules against attacks in the courts and on Capitol Hill. "The era ofthe big bill I think is over," said an environmentalist whose group has not yetcome out publicly on the issue. The groups also are hoping to defend and expandon state and regional climate laws and compacts, including a carbon market forpower plants operating in the Northeast and emerging systems in the West. Andthey will work at the state public utility commission level to make carbondioxide emissions a crux in reviewing permits for new and existing coal-firedpower plants. The Sierra Club is spending $18 million and has 100 people acrossthe country working on challenges to coal-fired electricity, said MichaelBrune, the group’s executive director. He hopes to increase the budget to $25million next year."

Meanwhile, Top "Energy" Advisor Over at the White Housegoes on Meet the Press, says President is Open to Lame-Duck Strategy onNational Energy Tax.The Hill (8/8) reports, "White House Energy Adviser CarolBrowner said Sunday that while the Obama administration is "deeplydisappointed" that an energy bill was unable to make its way throughCongress, the president has not given up hope that it can get done this year.In an exclusive interview on NBC’s "Meet the Press," Browner wasasked whether the president has conceded defeat on energy legislation."Not yet," Browner said. "The Congress is coming back and wewill continue to see if we can get legislation. We passed it in the House andwe will continue to work in the Senate." Asked if Democrats couldpotentially get it done in a lame-duck session, Browner responded,"Potentially."

With Obama Moratorium Entering Third Month, DeepwaterRig Workers on Standby – Waiting on WH to give Green Light. The Times-Picayune (8/6) reports, "Despiteuncertainty about when the federal moratorium on deepwater oil exploration inthe Gulf of Mexico may be lifted, drilling companies say they are readying toreturn to work, maintaining their full complement of rig workers at full payand making improvements in their rigs to meet new federal safety standardsrequired by the Interior Department. "Most of the discussions we’ve hadabout the readiness to resume work during this period of suspension has beenaround … maintaining crews and the capability of equipment to go back to workas quickly as possible," Steven Newman, president and CEO of Transocean,the largest offshore drilling contractor in the world and in the Gulf, saidThursday. "So setting aside the process we are going through to complywith NTL-05 (Notice to Lessee), the rigs are ready to go back to work and thecustomers are similarly in a position where they have kept all their capabilityintact as well. So I would think it would be a relatively timely resumption ofactivity." Newman spoke Thursday in a conference call the day afterTransocean, which has 14 rigs in the Gulf, released its second quarter earnings.His status report was consistent with that made in a July 20 conference call byDavid Williams, chairman, president and CEO of Noble Corp., the second biggestdrilling contractor in the deepwater Gulf, with seven rigs, including onerecently purchased from Frontier Drilling."

TopEnviro Regulator in Okla. Sets the Record Straight on HF: "Never Seen AnythingApproaching this Unfounded and Growing National Hysteria." Bob Anthony, chairman of the OklahomaCorporation Commission, writes (8/6) in theOklahoman, "In more than 20 years as a corporation commissioner, I’ve neverseen anything that approaches this current unfounded and growing nationalhysteria. Simply put, hydraulic fracturing (HF) is an essential oil and gasproduction technique used for reservoir stimulation. Ironically, given theopposition in the name of the environment, HF is also used for environmentallyfriendly applications such as geologic storage of carbon, developing waterwells and "green" geothermal energy and even cleaning up Superfundsites. Opponents portray hydraulic fracturing as some horrible practice thatendangers our water supplies, polluting them with cancer-causing chemicals. Infact, 99 percent of the materials injected are water and sand. Other HFingredients are no stronger than chemicals found around the house. Furthermore,the fracturing process takes place thousands of feet below treatable (meaningpotentially drinkable) groundwater, with layers of rock in between. We’ve usedHF for some 60 years in Oklahoma, and we have no confirmed cases where it isresponsible for drinking water contamination – nor do any of the other naturalgas-producing states. Maintaining regulation of oil and gas at the state levelis essential. Doing the job properly requires knowledge of the unique geologyand hydrology of formations.

Meanwhile,Top Enviro Regulator in PA Lambasts New York Senate for Ridiculous VoteTargeting HF – "Perhaps They Should Stop Buying Our Gas."  Wilkes-Barre(Pa.) Citizens Voice (8/6) reports, "When the New York State Senate passeda nine-month moratorium on a crucial natural gas drilling technique lateTuesday, legislators there held up Pennsylvania, state regulators and a smallSusquehanna County community as models for how not to drill for gas in theMarcellus Shale. The senators’ criticism raised the ire of PennsylvaniaEnvironmental Protection Secretary John Hanger, who defended the state’senvironmental regulations on Thursday and criticized New York for riding themoral "high horse while consuming Pennsylvania gas." "If theyare so ashamed of what’s gone on here perhaps they should stop buyingPennsylvania gas," Hanger said. "I think because the state ofPennsylvania was so thirsty to get this development opportunity they did nothave enough infrastructure in place, making sure they were inspecting the wellsproperly, making sure that landowners were protected," Thompson, D-Buffalo,said Tuesday night. [Hanger] described two years of work the department hasdedicated to strengthening Pennsylvania’s drilling standards and enforcement,including doubling the size of its gas enforcement staff while "New Yorkhas added nobody."

Ratepayersin North Dakota Shocked to See Their Utility Bills Jump 50% in a Quarter – AllBecause of Addition of Wind, PUC Commish Says. AssociatedPress (8/6) reports, "Otter Tail Power Co.’s North Dakota customers willsee higher electric bills as the utility adds more wind power to its energysources, state regulators say. Beginning Sept. 1, a separate charge assessed toratepayers to pay for Otter Tail wind energy projects will increase the monthlybill by almost $1.40 for a residential customer who uses 750 kilowatt-hours ofelectricity, state Public Service Commission filings say. For that customer,the wind energy charge would rise from $2.76 monthly to $4.13, an increase ofalmost 50 percent. The "renewable energy rider" is listed separatelyon customers’ bills. Commissioner Tony Clark said the charge is intended toallow Otter Tail Power to begin recouping development costs for wind projects.But it does have its drawbacks, Clark said. "It makes wind perhaps look alittle boutique, or that we’re treating it a little different," he said."It’s certainly not intended to be that way." Fergus Falls,Minn.-based Otter Tail Power has about 57,000 North Dakota electric customers.It serves the cities of Wahpeton, Devils Lake and Jamestown, as well as anumber of rural communities. About 18 percent of the utility’s electricitycomes from wind turbines

BipartisanGroup of Senators Ask EPA’s Lisa Jackson to Be Reasonable – Just This Once – onCapricious New Air Rules Targeting Places Where Real People Work. TheHill (8/5) reports, "A bipartisan group of Midwestern and Gulf Coastsenators are asking the Environmental Protection Agency to rethink the agency’srethinking of national smog limits. EPA normally reviews national air qualitystandards every five years or more, but the agency "has proposed tosignificantly tighten the standards that were adopted less than two years ago,with no new data prompting EPA’s reconsideration," seven senators wrote EPAAdministrator Lisa Jackson in a letter dated Thursday. "We believe thatchanging the rules at this time will have a significant negative impact on ourstates’ workers and families and will compound the hardship that many are nowfacing in these difficult economic times," according to the senators led bySens. Evan Bayh (D-Ind.) and George Voinovich (R-Ohio).  Others on the letter are DemocraticSens. Mary Landrieu (La.) and Claire McCaskill (Mo.), and Republican Sens.Richard Lugar (Ind.), Kit Bond (Mo.) and David Vitter (La.). They say that "manystates" only recently are becoming compliant with EPA’s 1997 ground-level ozonelimits. "Attaining that standard required costly mandates on businesses, whichgreatly restricted the ability of local communities to grow their economies,"the senators wrote. States are still trying to meet a tougher 2008 EPArequirement, they argue, while EPA is looking to toughen that even more. "Thisis unacceptable," the senators wrote.

Bewarethe Herd: Not Many Folks Interested in Suing BP for Texas City Back Before theSpill – Now? 3,400 People Literally Come Out of the Woodwork. HoustonChronicle (8/5) reports, "On Wednesday, more than 3,400 people lined thehallways and sidewalks around the Nessler Center to sign on to a $10 billionclass-action lawsuit filed Tuesday in Galveston federal court by Friendswoodattorney Anthony Buzbee. The lawsuit alleges the release of 500,000 pounds ofchemicals – including 17,000 pounds of benzene – has jeopardized the health andproperty values of people who live and work in the area. At the nearby Collegeof the Mainland, a separate town hall meeting drew a crowd of 600. "I’venever seen anything like this," Buzbee said, looking at the lines waitingto enter a large room at the civic center where lawyers helped people fill outpaperwork. "I can’t believe this is mass hysteria and that everybody hereis a faker," Buzbee said. Word of the lawsuits spread this week, propelledin part by rumors that BP was cutting checks to head off the benzene claimsfrom the $20 billion fund established to pay claims related to the oil spill.BP spokesman Michael Marr said those rumors are untrue. On Wednesday afternoon,a family used a convenience store copy machine to make dozens of copies oflegal contracts. A clerk said the machine had been in constant use by would-beplaintiffs.

MustRead: Pipeline Company Works with Enviro Group to Protect Sage Grouse – Cool,Right? Not According to Local Commissioners: "You Went to Bed with the WorstThere Is." Elko(Nev.) Daily Free Press (8/5) reports, "A settlement between environmentalgroups and El Paso Corp. over the Ruby Pipeline Project has caused "worry,concern and anger," the president of El Paso Western Pipeline Group toldElko County Commissioners Wednesday. About 30 people attended the commissionmeeting and heard about two-and-a-half hours of discussion about the RubyPipeline Project and, particularly, El Paso Corp.’s agreement with WesternWatersheds Project and the Oregon Natural Desert Association. El Paso Corp.didn’t expect "the firestorm that has erupted over this deal," saidJim Cleary, president of El Paso Western Pipeline Group. "You guys wentinto bed with the worst there is," Commissioner John Ellison told El PasoCorp. representatives, referring to the company’s $20 million agreementfinalized last month with the two groups. Money will go into the Sage GrouseHabitat Conservation Fund over a 10-year period and will be used for habitatprotection. In exchange, the environmental groups will drop litigation opposingthe pipeline project.

MustScoff: VP of Crayola Announces New Solar Installation at Plant – Because "MyBet in the Future Is Expensive Energy" – What About the PRESENT?! LehighValley Express-Times (8/5) reports, "Even as Crayola LLC finished puttingits 15-acre solar farm online Thursday, the crayon maker was already planningon doubling the size of the array in the next two years, a company officialsaid.  Peter Ruggiero, executivevice president of Crayola’s global operations, said the company wants to expandthe solar system behind their township factory to 30 acres, which is themaximum allowed by the state. Using solar energy behooves Crayola because it is an environmentallysound business practice and will save the company money in the long run,Ruggiero said.  "My bet is thefuture is expensive energy," Ruggiero said. Township supervisors Thursdaynight unanimously approved a five-acre expansion of the solar farm. The rest ofthe planned expansion will be implemented in future phases.  "It’s a wonderful endeavor for ourbusinesses to become more environmentally conscious," said SupervisorsChairman Erik Chuss. "The board is very supportive of these efforts andwould love to see more of them in the township.

MacArthur,Rockefeller, Park & Tides Foundations None Too Happy with Their EnviroFoot-Soldiers in Wake of Cap-and-Raid Collapse – "We Got Our Ass Kicked,"Admits One Group. Politico(8/5) reports, "They didn’t deliver a single Republican," an administrationofficial told POLITICO just hours after Reid pulled the plug on the climatebill. "They spent like $100 million, and they weren’t able to get a singleRepublican convert on the bill." How much money was spent is difficult to pin down. NRDC, the Sierra Cluband Clean Energy Works declined to open up their books to show how much theyspent on the climate campaign. EDF had spent $20 million on climate legislationsince October 2008. Al Gore’s Alliance for Climate Protection pledged in 2006to spend $300 million, but it’s unclear how much it ended up using. Enragedenvironmentalists flooded the White House with phone calls after the quotationappeared in publication. Publicly, they decried the finger-pointing and insistedthey aren’t alone in deserving fault, saying President Barack Obama failed touse his bully pulpit and moderate Senate Republicans weren’t allowed by theirleaders to fully negotiate. "My sense is we did fail," said Kevin Knobloch,president of the Union of Concerned Scientists. "I think there’s nosugarcoating it." "We really got our ass kicked in August during the townhalls," EDF spokesman Tony Kreindler said. Durbin insisted that environmentalgroups also still garner plenty of sway in the Senate. "A lot of us payattention," he said.

Meanwhile,Gov’t Report that Shows 75% of Spilled Oil No Longer in the Gulf Infuriates theGreens – In Their World, What’s Good for America is Bad for Fundraising. Politico (8/5)reports, "Speaking before the AFL-CIO Wednesday, President Barack Obama calledthe developments "welcome news." But green groups – irked by the administration’sinitial low-balling of the rate of oil billowing into the Gulf – were skepticalof the claim that three-quarters of the crude has been evaporated, dissolved,dispersed, skimmed or burned. They say the report actually accounts for only 25percent of the oil discharged into the sea since April 29, and as much as halfof the spill still lingers in Gulf waters in various concentrations. "My mainproblem is that this overstates what they know," said John Hocevar ofGreenpeace. "There really isn’t very much data to support this. It’s somewherebetween a wild guess, wishful thinking and spin to make these claims at thispoint." Wednesday’s report has some environmental groups feeling wary. Someeven look at the government’s own data and are drawing different conclusions.According to David Pettit, a senior attorney at the Natural Resources DefenseCouncil, the administration is using the report to suggest that "the worst isover." The truth, Pettit says, is that about a quarter of the oil has dispersed- meaning it still exists, but in microscopic particles in the ocean – and another26 percent of the oil is still unaccounted for.

AStory You’ll Never Read in Print: Sen. Reid Tried to Gut the Oil SpillLiability Trust Fund Earlier This Year – To Pay for the Damn HomeSTAR Program?! E&E News (8/5, subs.req’d) reports, "Reid proposed in his energy and spill bill to increase the feeto 49 cents per barrel. The additional tax would raise more than $18 billionover 10 years, which Reid would use to offset the $5 billion energy efficiency"Home Star" program, oil spill mitigation research and alternativevehicle incentives in the bill. Democrats attempted to use the oil spillliability trust fund to help offset billions of dollars in tax creditextensions earlier this year. It ultimately failed to pass the Senate,partially because of Republicans objecting to the use of the oil spill trustfund as an offset. A spokesman for Sen. Lisa Murkowski (R-Alaska) said whileissues with the offset provision of Reid’s legislation got lost among thedebate on the liability cap, they are still on the list of problems Republicanshad with the bill. "If you want to argue about the oil spill liabilityfund, that might be worth a discussion, but that money should be lock-boxed todeal with oil spills," spokesman Robert Dillon said. The fund should notbe used to pay for other programs that have nothing to do with oil spills andthat should be dealt with in an energy bill, Dillon added. But if the oil spillliability trust fund is eliminated or its funds are taken off the table innegotiations for the spill bill likely to be taken up in September, Democratshave no obvious pool of money to pay for any other energy measures they wouldlike to approve.

NYSenate Resolution Demands Year-Long Ban on Hydraulic Fracturing – Wonder IfThese Clowns Know that HF’s Been Used Up There for 50 Years, on 14,000Different Wells. Bloomberg(8/4) reports, "New York moved closer to a temporary state ban on drilling fornatural gas from shale. The state Senate approved a measure late yesterday thatwould prohibit new drilling permits until May 15 in the New York portion of theMarcellus Shale formation pending further environmental studies. The moratoriumpassed 49-9. The Assembly has yet to take up the measure. Bloomberg(8/3) reports,  "The measure wouldsuspend drilling until May 15 in New York’s portion of the Marcellus Shaleformation for further study, said Kate Sinding, senior attorney with the NewYork- based Natural Resources Defense Council. The drilling moratorium may comeup during a special session weighing legislation to close a $9.2 billion gap inthe state’s $135.6 billion budget. "We have strong indications from Senateleaders they will bring the moratorium bill to the floor for a vote, hopefullytoday," Sinding said in an interview. "There’s no way that they’re not feelingthe pressure from all of the public opposition." "Fundamentally this is thesame process we’ve used up there for generations," Chris Tucker, a spokesmanfor Energy In Depth, a Washington-based industry group, said in a statement. "Theselegislators are badly informed, and apparently unmoved by the idea ofconverting these resources into tens of thousands of jobs in a state wherenearly a million folks are currently unemployed."

Dukeand Xcel Love them Some NRDC in DC – But Find Themselves on Other End of Roomin Court Case Over Whether Their Emissions Are "Nuisances" Under the Law. E&E News (8/4,subs. req’d) reports, "American Electric Power Co. Inc., Duke Energy Corp., SouthernCo. and Xcel Energy Inc. filed a petition Monday asking for review of thedecision. Climate change is the type of political question that must beanswered by Congress, they say, and if EPA is moving forward with regulationsunder the Clean Air Act, courts have no reason to step in. "Theramifications of this holding, if it is allowed to stand, are staggering,"the petition says. "Virtually every entity and industry in the world isresponsible for some emissions of carbon dioxide and is thus a potentialdefendant in climate change nuisance actions under the theory of thiscase." Nuisance claims are a long-standing fixture of common law, used forcenturies to settle disputes with neighbors over annoyances such as overgrowntrees and foul smells. In the absence of congressional action on climatechange, environmental groups argue, nuisance cases will allow affected peopleto recoup their losses from those whose emissions are responsible. In theirpetition, the four utilities said the potential for nuisance-based lawsuitswould add another element of uncertainty as EPA crafts climate regulations andCongress mulls over legislation. Because each of the companies is subject tonew EPA rules on greenhouse gases from stationary sources, they say, thefederal government is already starting to outline their responsibility forglobal warming.

Speakingof Xcel, Largest Investor-Owned Wind Provider, Don’t Ya Know: Turns Out TheyDon’t Have Enough Juice to Service N.M. and Texas Right Now. Clovis (N.M.)News-Journal (8/4) reports, "Unexpected problems had Xcel Energy declaringan energy alert Wednesday in its Texas and New Mexico service territory, urgingcustomers to cut back their use of electricity. Wes Reeves, a spokesman forXcel, said the recent heat is only part of the reason for high energy demand. "Itis, but we also have some maintenance on power generators we didn’t expect tohave to do this week," Reeves said. "We’re not able to bring all of ourgenerators to bear. We could be really close to dipping into our reserves. "Xcel Energy declares an energy alert only when a reduction in electricity useis urgently needed to maintain the electricity system and service to customers.The company suggests: Turn off air conditioning or increase your thermostatsetting to 85 degrees, slowly lowering the setting after 7 p.m. to a morecomfortable setting. This does not apply to customers who depend on airconditioning for health reasons. Put off household chores that involveelectrical appliances until after 7 p.m. (dishwashers, washing machines,clothes dryers, vacuum cleaners, etc.) If energy demand exhausts Xcel’s abilityto produce, Reeves said there will be outages of roughly 30 minutes to an hourat a pre-selected group of locations. The outage would take place too quickly,Reeves said, for the company to alert individuals.

Shakeand Bake: Not Every Day You See NRDC Quoted in a Story on NASCAR, But News of aRacetrack Installing Sun Catchers on the Infield Gets a Nice Adda-Boy fromGreens. AssociatedPress (8/4) reports, "Racing relies on tens of thousands of litres of fueleach year to power cars, but when Pocono Raceway flipped the switch on its10-hectare solar farm last week for the Pennsylvania 500, a NASCAR track becamethe world’s largest solar-powered sports facility. "Hopefully we can bethe catalyst for something big in American sports," said track presidentBrandon Igdalsky. "We can show this is the right way to do it, and is agood thing to do." Sports teams have been pursuing more environmentalinitiatives in recent years as "going green" becomes a marketingcatch phrase – and a way to save on utility bills. "Sports have atremendous opportunity to create both action on the ground with environmentalfootprint changes … and a real opportunity to help educate people onrenewable energy options," said Darby Hoover, a San Francisco-based seniorresource specialist with the National Resources Defence Council. Theenvironmental group advises Major League Baseball, the NFL, NHL, NBA and MLS.While NRDC does not advise NASCAR, Hoover praised Pocono’s solar installation"as a way where fans can see genuine effort by the league." Shecommended sports leagues in general for efforts in promotingenvironmentally-friendly messages.

Send this Clip to Every Energy Reporter and Producer You Know. MichaelBromwich, Head of the "New" MMS said this Yesterday about the Obama Moratorium:"I have seen enough to know that people are hurting." E&E News (sub’s req., 8/3)reports, "The man in charge of overseeing the Obama administration’s deepwaterdrilling moratorium says it could be lifted well before its expiration inNovember. "We might be able to cut short the moratorium before November 30if that’s what the facts support," said Michael Bromwich, director of theBureau of Ocean Energy Management, Regulation and Enforcement. Thefact-gathering process to see if that is possible, Bromwich said, beginstomorrow at Tulane University in New Orleans with the first in a series offorums about offshore drilling. Bromwich said he will report back on thoseforums to Interior Secretary Ken Salazar to see if they can "develop alevel of comfort" that would allow them to end the moratorium in a"principled way." Bromwich is in charge of overhauling the agencylong known as the Minerals Management Service in the wake of the DeepwaterHorizon oil spill that has fouled the Gulf of Mexico. One factor that couldspeed lifting of the moratorium is BP PLC’s capping of its blown-out well atthe site last month. "All available spill response was soaked up byresponse to the Deepwater Horizon," Bromwich said. "That’s no longerthe case." And he said that the administration does have to consider theeconomic consequences of the moratorium. "These decisions are not beingmade in a vacuum," Bromwich said. "Ihave seen enough to know that people are hurting."

Meanwhile,Dozens of Energy Industry Employees Fly to DC to Rally Against ObamaMoratorium, as Wash. Post and BP Team Up for Hit Piece on Pro-Energy JobsCampaign/AEA. Washington Post (8/4) reports, "Daysafter the Deepwater Horizon oil rig sank in the Gulf of Mexico, a conservativenonprofit group called the Institute for Energy Research asked BP to contribute$100,000 for a media campaign it was launching in defense of the oil industry.Although BP took a pass, the group’s advocacy arm went ahead with a campaign –only instead of defending BP, it vilified the company as a "safetyoutlier" in an otherwise safe industry. The campaign’s Web site featuresdozens of images of the burning rig, oil-smeared birds and other environmentaldevastation from the spill. "BP is a victim of its own carelessness,"the group’s president, Thomas Pyle, wrote as part of the campaign’s kickoff inearly July. "The rest of us should not be." To backers of BP who werefamiliar with the discussions and spoke on the condition of anonymity, itseemed an awful lot like a shakedown. The initial proposal contained nocriticism of the British oil giant or its handling of the spill. A BP spokesmandeclined to comment. But Pyle, previously an oil-industry lobbyist and an aideto former congressman and Texas Republican Tom DeLay, said the anti-BP messagewas part of a separate campaign and was not intended as retaliation. "Alot of people were trying to lump the industry together as one cohesiveunit," Pyle said in an interview. "Our point was to not judge thewhole industry by one incident and one actor."

Senate Dems See Writing on the Wall with "Spill Bill;" Hope that GreenGroups Call Off the Dogs so They Can Hold a Few Seats in November. Politico (8/3) reports, "SenateDemocrats on Tuesday punted their oil spill response bill to next month, butthe extra time doesn’t guarantee the measure will pass – far from it. The delayvirtually ensures that strategists from both parties will use the congressionalrecess to hone their plans, talking points and poison-pill amendments for anyfloor debate, all with an eye toward the midterm elections. Majority LeaderHarry Reid’s decision to pull the plug on offshore drilling is the latest blowto Democratic efforts to move energy legislation, beginning with the deaths ofa sweeping climate change bill and then a scaled-down renewable energy bill. Itinitially appeared that the slender offshore drilling package was a must-passbill with political momentum, but it became evident over the past week that theNevada Democrat lacked the votes within his own caucus to force the issue asthe Republicans held firm against it. Some Democrats and environmentalists saidthey are optimistic the extra time will allow them to revisit the broaderrenewable energy provisions they had to jettison earlier, in hopes of foldingthem into the drilling bill."

Repeal AB32 Campaign in California Scores Huge Victory in Court, JudgeForces Sec. of State to Rewrite Ballot Description to Accurately ReflectInitiative.E&E News (sub’s req., 8/3) reports, "Interest groups behinda ballot measure that would suspend California’s climate change law scored alegal victory today when a court ordered Secretary of State Debra Bowen torevise how the referendum will appear before voters this fall. SacramentoCounty Superior Court Judge Timothy Frawley ruled that a title and summaryattached to the ballot measure by Attorney General Jerry Brown (D) was misleadingbecause it used the word "polluters" to describe those subject togreenhouse gas emissions regulations under the state’s climate law, A.B. 32.Brown, as required by law, had drafted a title to the November referendum thatwas meant to quickly highlight and summarize its intent. But those behindProposition 23 said his title was biased and might sway voters to reject it.The wording Brown chose said the measure "Suspends Air Pollution ControlLaws Requiring Major Polluters to Report and Reduce Greenhouse Gas EmissionsThat Cause Global Warming Until Unemployment Drops Below Specified Level forFull Year." The judge struck "Polluters" and replaced it with"Sources of Emissions." He also ordered a rewrite of the summary forProp 23 that would replace the word "abandon" with"suspend" in describing the effects of the ballot measure on A.B. 32.Prop 23, if approved, would suspend A.B. 32 until unemployment in Californiadrops to 5.5 percent or lower for a full year."

Markey’s Not Going to Like This: Gov. Report Finds Most Oil From SpillPoses Little Additional Risk to Environment. New York Times (8/4) reports, "Thegovernment is expected to announce on Wednesday that three-quarters of the oilfrom the Deepwater Horizon leak has already evaporated, dispersed, beencaptured or otherwise eliminated – and that much of the rest is so diluted thatit does not seem to pose much additional risk of harm. A government reportfinds that about 26 percent of the oil released from BP’s runaway well is stillin the water or onshore in a form that could, in principle, cause new problems.But most is light sheen at the ocean surface or in a dispersed form below thesurface, and federal scientists believe that it is breaking down rapidly inboth places. On Tuesday, BP began pumping drilling mud into the well in anattempt to seal it for good. Since the flow of oil was stopped with a cap onJuly 15, people on the Gulf Coast have been wondering if another shoe was goingto drop – a huge underwater glob of oil emerging to damage more shorelines, forinstance. Assuming that the government’s calculations stand scrutiny, thatlooks increasingly unlikely. "There’s absolutely no evidence that there’s any significantconcentration of oil that’s out there that we haven’t accounted for," said JaneLubchenco, head of the National Oceanic and Atmospheric Administration, thelead agency in producing the new report."

Sorry, Markey, No More Live Video of Oil Spilling into the Gulf. After100 Days, Looks Like BP Finally Successful in Killing Run-Away Well.Houston Chronicle (8/4) reports, "BPclaimed a key victory Wednesday in its effort to plug its blown-out oil well inthe Gulf of Mexico while the government said the vast majority of oil from theworst offshore spill in U.S. history was already gone. Declaring it amilestone, BP PLC said mud that was forced down the well was holding back theflow of crude and it was in a "static condition." Also, White Houseenergy adviser Carol Browner said on morning TV talk shows that a newassessment found that about 75 percent of the oil has either been captured,burned off, evaporated or broken down in the Gulf. "It was captured. Itwas skimmed. It was burned. It was contained. Mother Nature did her part,"Browner told NBC’s "Today" show. In the Gulf, workers stopped pumpingmud in after about eight hours of their "static kill" procedure andwere monitoring the well to ensure it remained stable, BP said. "It’s amilestone," BP PLC spokeswoman Sheila Williams said. "It’s a steptoward the killing of the well." The next step would be deciding whetherto cement the well, Williams said."

Hey New York, You See the Job Creation and Economic Development TakingPlace in Pennsylvania? It’s Because of the Marcellus – and You Could Get a Cutof the Action with Commonsense Policy.Bloomberg (8/3) reports, "Companiesled by Chesapeake Energy Corp. would be banned temporarily from drilling fornatural gas in shale in New York under state legislation proposed because ofdisputes over environmental risks. The measure would suspend drilling until May15 in New York’s portion of the Marcellus Shale formation for further study,said Kate Sinding, senior attorney with the New York- based Natural ResourcesDefense Council. The drilling moratorium may come up during a special sessionweighing legislation to close a $9.2 billion gap in the state’s $135.6 billionbudget. To get gas from shale, companies use hydraulic fracturing, or fracking,in which water, sand and chemicals are injected deep underground to break uprock and allow gas to flow. The U.S. Environmental Protection Agency is planninga study to determine whether fracking fluids have contaminated drinking water. "Fundamentallythis is the same process we’ve used up there for generations," Chris Tucker, aspokesman for Energy In Depth, a Washington-based industry group, said in astatement. "These legislators are badly informed, and apparently unmoved by theidea of converting these resources into tens of thousands of jobs in a statewhere nearly a million folks are currently unemployed."

NRDCCo-Opts San Fran Chamber of "Commerce" in Bid to Generate News Stories on "Dissension"in Chamber Ranks on Carbon Criminalization – Nice Try. MotherJones (8/2) writes, "A new split over climate policy is brewing within theranks of the US Chamber of Commerce as a breakaway group of local chambers isgetting ready to publicly split with the business lobby’s hardline stanceagainst climate legislation. The new climate coalition, known as the Chambersfor Innovation and Clean Energy (CICE), will press Congress to take strongeraction on climate and energy issues. It has already signed up about a dozenchambers and will officially launch later this year. Local Chamber president Win Hallett writesto members, "This week, I learned that several state and local chambers ofcommerce have been approached by a group calling itself "Chambers forInnovation & Clean Energy". Your chamber may have been asked to join. Thegroup is being pitched as an organic movement led by the San Francisco Chamberof Commerce, with the express purpose of "putting a price on carbon" and "limitingcarbon and greenhouse gases". Ironically, their indirect purpose appears to beundermining the U.S. Chamber’s and the business community’s leadership on thisvital issue. Some very simple research reveals that this group is not anorganic movement; rather, this group was established by the Natural ResourcesDefense Council (NRDC), an environmental activist organization.

GoodThing Markey Knows No Shame: Or Else He Would Be Plenty Embarrassed By How EPAShellacked Him on Dispersant Science.TheHill (8/3) reports, "BP’s use of the dispersant Corexit 9500A with federalapproval is a politically charged issue. Environmentalists and some lawmakersallege officials allowed massive applications despite unknown risks to marinelife and cleanup workers. But Paul Anastas, who heads EPA’s Office of Researchand Development, said the decision to allow dispersant use was sound given thedangers posed by the oil that spewed uncontrolled for months from BP’s rupturedwell. He called the oil "enemy No. 1," and said that test results show thedispersant use "seems to be a wise decision and the oil itself is the hazardthat we are concerned about." Anastas spoke on a conference call with reportersabout newly released testing data. EPA said peer-reviewed tests using eightdispersants on two aquatic species – the mysid shrimp and a fish called theinland silverside – showed various oil-dispersant mixes were generally no moretoxic than oil alone, and Corexit mixed with oil is no worse than mixtures ofother dispersants and oil. "For all eight dispersants in both test species, thedispersants alone were less toxic than the dispersant-oil mixture," states anEPA summary of the results. EPA found Corexit is "is no more or less toxic thanthe other available alternatives."

ClotureVote on Reid’s Spill Bill Expected to Go Down in Flames Tomorrow – But That’sOK, Says Kerry; We Can Still Grill Up that Lame Duck. E&E News (8/3, subs.req’d) reports, "Several key Democrats expressed concern over language in theDemocrats’ bill (S. 3663), which would need at least 60 supporters attomorrow’s cloture vote in order to move forward. Sen. Mary Landrieu (D-La.)yesterday said she would not vote for the Democrats’ proposal. "Not in thecondition that it’s in, no," she said. Likewise, Sen. Mark Begich(D-Alaska) said he would not vote for the Democratic bill as is. Both senatorswould like to see some form of revenue-sharing language in the bill. Begichsaid he would prefer the version of revenue sharing included in the Republicanbill. The two senators also are concerned about language that would eliminateoil companies’ liability caps in the case of a spill. "I wish thatsomebody would focus on helping the Gulf Coast instead of their focus ondestroying an industry and not caring about the consequences of unlimitedcaps," Landrieu said. The pair is working on compromise language that willlikely address the liability issue. Sen. Mark Pryor (D-Ark.) and others arealso helping craft the compromise, Begich said.

Landrieu,Begich, Precious Few Others in the Senate Dem Caucus Try to Find Third Way onSpill Bill – But Reid Not Interested in Solutions At this Stage. TheHill (8/3) reports, "Sen. Mark Begich (D-Alaska) said Monday that it wouldaddress setting aside revenue from oil and gas production in federal waters forstates with production off their coasts. It also seeks to end a stalemate overhow much to increase the current $75 million liability limit oil companies facefor offshore spills, and could alter the Obama administration’s temporary banon deepwater drilling. Begich met Monday with Sen. Mark Pryor (D-Ark.) andothers and staff worked over the weekend as well, he said. But time hasprobably run out, at least for now. "I don’t think we’re making much progress,unfortunately, so I don’t think the bill’s going to go anywhere," Sen MaryLandrieu (D-La.) said of a separate oil spill and energy strategy SenateDemocratic leaders have proposed. "But maybe when we come back, cooler headswill prevail." Landrieu said she is working with Begich and "the few reasonablepeople in my caucus on this issue. They’re not many of them." This includes "business-minded"Democrats like Sens. Ben Nelson (D-Neb.) and Evan Bayh (D-Ind.), she said.

Meanwhile,Back on the Gulf Coast, Folks Continue to Lose Their Jobs – And Papers Continueto Report on AEA Study Explaining Just How Bad It Will Get. Bastrop(La.) Daily Enterprise (8/3) reports, "A recently released study by LSUeconomist Dr. Joseph Mason concludes the Obama administration’s six-monthmoratorium on deepwater oil drilling will have grave economic consequences forLouisiana and the nation. Following the Deepwater Horizon oil rig explosion onApril 20, the White House issued a moratorium on exploratory drilling on May30. Enforcement of the initial moratorium was blocked by a federal judge in NewOrleans on June 22, citing a lack of basis for the regulation. The Obamaadministration issued a second moratorium on July 12 which re-asserts thepolicies and timeframe of the May 30 moratorium — to be in effect until Nov.30 — and also includes all floating facilities. "The Economic Cost of aMoratorium on Offshore Oil and Gas Exploration to the Gulf Region" by Dr.Joseph Mason, a professor of finance and endowed chair of banking in LSU’s E.J.Ourso College of Business, was released in July. The study was sponsored bySave U.S. Energy Jobs, a project of the American Energy Alliance, and exploreshow the moratorium on offshore drilling will affect the economies of the Gulfstates — Louisiana, Texas, Alabama and Mississippi — as well as the nation.

BobCasey Takes a Little Nibble from NRDC Cheese on Hydraulic Fracturing, thenDevours the Entire Wheel – Agrees to Prostrate Himself to EPA on Endangerment. E&E News (8/3, subs.req’d) reports, "Two Senate Democrats may attempt to bolster U.S. EPA’sauthority to regulate greenhouse gases if West Virginia Democrat JayRockefeller tries to hamstring the agency’s climate rules. Sens. Tom Carper(D-Del.) and Bob Casey (D-Pa.) for several months have been consideringoffering a countermeasure to Senate efforts to stymie EPA climate regulations.Their provision would exempt small sources from EPA climate rules whileallowing the agency to regulate the largest polluters. Carper yesterday saidtalks about the proposal so far have remained at the staff level but that couldchange now that Rockefeller is seeking a vote this year on a bill to limitEPA’s authority to regulate greenhouse gas emissions. "I’m not sure whatSenator Rockefeller is going to do, but if he’s intent on pressing for a vote,Bob Casey and I may have to finally have that conversation," Carper said.Rockefeller told reporters yesterday that there is a "100 percent"chance that he will seek a vote on the legislation this year. He has sixDemocratic co-sponsors for his bill, which would prevent EPA from regulatinggreenhouse gases from industrial facilities for two years.

Sen.Brownback Has a Shiny National Debt Clock on His Official Website – So Why DoesHe Support a Federal Mandate Ordering Utilities to Buy Expensive, UnreliableWind? Tom Stacy writes (8/1) on MasterResource.org,"US Senator Sam Brownback (R-KS) displays a national debt clock on his homepage and is a proclaimed conservative. Yet he supports wasteful governmentspending on deployment of impotent technologies like wind energy. I believe Samand his kind are the root cause of a failure for industrial windpower opponentsto gain the upper hand in Washington D.C. I further believe that in Brownback’scase, his faulty platform correlates to his committee membership, which showshis allegiance to the agriculture lobby, which represent the secondaryfinancial beneficiaries of wind energy deployment. It would be more fiscallyconservative and environmentally benign to simply hand the agri-community theequivalent taxpayer money Carte-Blanche which they stand to receive from windenergy leases. But I do not advocate this over the best course of action:removing special government favors and mandates for windfarms. While it isunfathomable to me that Sam Brownback can display a national debt clock on hisweb site while simultaneously calling for a national renewable energy standard(RES),  I cannot change Senator’sposition on wind energy in light of his allegiance to agriculture on my own.