News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Mutiny: Senior Senate Dem.Demands  Majority Leader "Set Aside"Legislation to Ration Public and Private Use of Carbon-Based Energy. TheHill (6/18) reports, "Sen. Jay Rockefeller (D-W.Va.) on Thursday said theSenate should abandon efforts – at least for now – to pass a sweeping climatechange bill and also urged adoption of his plan that would block some EPAgreenhouse gas regulations for two years. "The Senate should be focusing on theimmediate issues before us – to suspend EPA action on greenhouse gas emissions,push clean coal technologies, and tackle the Gulf oil spill," he said in a preparedstatement Thursday afternoon. "We need to set aside controversial and morefar-reaching climate proposals and work right now on energy legislation thatprotects our economy, protects West Virginia and improves our environment,"added Rockefeller, an ally of the his home state’s coal industry. Rockefeller’soffice circulated the comment Thursday afternoon, following a meeting of theSenate Democratic caucus on energy legislation.  It notes that Majority Leader Harry Reid (D-Nev.) plans toallow a vote this year on Rockefeller’s bill that would delay EPA regulation ofcarbon emissions from power plants and other stationary sources for two years.

Kish: Policymakers Who Lamentthat America’s National Energy Policy Is a Failure Are Right – But They’re theCause of that Failure, Notwithstanding Their Silly Affectation.  ICISNews (6/17, subs. req’d) reports, "Dan Kish, senior vice president forpolicy at the Institute for Energy Research (IER), an energy industry thinktank, contends that US energy policy has been nothing less than "death by athousand cuts" for US domestic energy production. Kish, who worked on CapitolHill for 25 years in both the House and Senate natural resources committees,charges that federal policymakers have consistently fired regulatory bulletsinto US energy interests, then reloaded and fired again, year after year. "Youalways hear members of Congress complaining about our failed energy policy, andthey’re right," he said, "but for reasons other than what they think." "Of thisnation’s offshore territory, 97% of it is not leased, and 94% of federalonshore lands remain unleased" for energy development, he points out. Thefederal government owns about one-third of all US territory, he noted, withmuch of that in the resource-rich US West, and almost all of it closed todevelopment. "If you take the US offshore OCS areas plus the federally ownedonshore lands and combined them, that territory is larger than all of the USdry land mass, including Alaska," Kish said. "If it were a country by itself,if would be the third largest in the world behind Russia and Canada."

Previously Silent on theCalamity Facing Offshore Workers Along the Gulf Coast, NY Times Reverses Course- Begins to Tell the Stories of the Folks Affected by Obama Ban. NY Times(6/17) reports, "In addition to the fishermen and hoteliers whose livelihoodshave been devastated by BP’s hemorrhaging undersea oil well, another group ofGulf Coast residents is beginning to suffer: the tens of thousands of workerslike Ronald Brown who run the equipment or serve in support roles on deepwateroil rigs in the Gulf of Mexico. Mr. Brown, known as Rusty to his friends, is a "shakerhand."In the rugged vernacular of offshore drilling, that means he monitors the mudflowing back from the drill hole thousands of feet below.  He works aboard the Ocean Monarch,which was idled along with 32 other oil rigs when the Obama administrationordered a six-month moratorium on all deepwater drilling after the April 20Deepwater Horizon disaster. The rig’s owner is now seeking customers in otherparts of the world. If the rig moves, Mr. Brown and his fellow motormen,roughnecks and roustabouts will be left behind, jobless, with few alternativesthat would pay anything close to the $3,500 to $4,000 a month typical for suchjobs.

Mutiny x 2: Arkansas DemocratRejects the Notion of Carbon Criminalization Passing the Senate Out-of-Hand – "MaybeSomething a Little Less Ambitious."ArkansasNews Bureau (6/16) reports, "The Senate is unlikely to pass comprehensivelegislation addressing climate change in the next couple of years, though aless ambitious bill may be achievable, U.S. Sen. Mark Pryor, D-Ark., saidtoday. "I think that the president would like to see a comprehensive energybill and climate change bill come through the Senate. My view is there’s notenough votes to get that done this year, and quite frankly I’m not sure therewill be next year," Pryor said in a conference call with reporters. "If thepresident tries to push an energy package with climate change provisions in it,I think it’s a really hard sell," Pryor said today. "I don’t think you’ll getany Republicans at all, or certainly not many. … My guess is, if it has climatechange in it, it will not go anywhere in the Senate." The Associated Presstoday quoted Senate Minority Leader Mitch McConnell, R-Ky., as saying SenateRepublicans are unanimously opposed to a sweeping Senate climate bill by JohnKerry, D-Mass., and Joe Lieberman, I-Conn.

Pogo Sticks for Everyone: NewStudy on Low-Carbon Fuel Standards Finds National Mandate Would Cost 4.5Million Jobs – Send Gas Prices Past $7. HoustonChronicle (6/17) reports, "Low carbon fuel standards like those beingrolled out in California and planned in some Northeastern States could lead tosteep spikes in fuel prices and the loss of millions of U.S. jobs by 2025,according to a report being released today with funding from the ConsumerEnergy Alliance. Just as tighter fuel economy standards are meant to spurchanges in vehicle design and urban planning policies meant to change consumerbehavior, the LCFS is supposed to hurry up the development of new fueltechnologies, according to the study (authored by Charles RiverAssociates).  But the LCFS willdrive major changes "because the targets are beyond reach with foreseeablefuel technology," the study says. Some of the effects of the fuelstandards, according to the study, include: A 90 to 170 percent jump in fuelcosts by 2025; A nationwide net loss of 2.3 million to 4.5 million jobs by2025, including the addition of "green jobs" that would be created bythe fuel standard; A reduction in annual household purchasing power of $1,400to $2,400 relative to 2010 income levels by 2025; A 2 to 3 percent reduction ingross domestic product by 2025.

Anti-Natural Gas PropagandaPiece Getting Lots of Love from the Avant-Garde Film Press – But MainstreamPapers Starting to Wonder Whether Anything In It Is Actually True. AssociatedPress (6/18) reports, "Gasland has won critical acclaim, but the industryhas challenged its veracity. A 4,000-word rebuttal by a coalition of gas andoil producers asserts that Fox botched the facts, misstating the drillingprocess and the regulations that govern it, and spotlighting citizens whoseclaims have already been investigated and debunked."The object of the filmis to shock, and not to enlighten," said Chris Tucker, spokesman for theEnergy in Depth coalition. "If that’s the kind of project you’re trying todo, you’re not going to let a few silly facts get in the way."Wilkes-Barre TimesLeader (6/18) reports, "On the same day as a special screening of the filmin Montrose earlier this month, Energy in Depth released an alert on itswebsite entitled "Debunking Gasland," pulling out numerous quotes from themovie and disputing them. Energy In Depth claimed that Fox was "misstating thelaw" when he said that a 2005 energy bill exempted the oil and gas industryfrom the Clean Water Act, the Clean Air Act, the Safe Drinking Water Act, andthe Superfund law. The industry is regulated under every single one of thoselaws, said Energy In Depth spokesman Chris Tucker.

Here’s the Problem withCantwell/Collins Cap-and-Raid Bill: It Doesn’t Matter Where You Send the Loot;For It to "Work" – You Need to Loot. Sens.Cantwell (D-Wash.) and Collins (Maine) write (6/19) in the WashingtonPost, "Our concept is simple: Instead of cap-and-trade, our approach is"cap-and-dividend," with the dividends going where they belong: intothe pockets of hardworking Americans. The legislation would set up a mechanismfor selling "carbon shares" to the few thousand fossil fuel producersand importers through monthly auctions. Seventy-five percent of the auctionrevenue would be returned to every citizen and legal resident of the UnitedStates through equally divided rebate checks — averaging $1,100 for a familyof four each year. The remaining 25 percent would finance clean-energy researchand development; help reduce emissions in agriculture, forestry andmanufacturing; and provide transition assistance for workers and communities incarbon-intensive regions. The legislation aims to reduce greenhouse gasemissions 20 percent by 2020 and 83 percent by 2050.

EPA Informs Farm Lobby that Its Decisionon Whether Cars "Can Handle" an Increase in Ethanol Blend Wall Will Have toWait ‘Til the Fall – Engine Blocks the World Over Rejoice. AssociatedPress (6/18) reports, "The Environmental Protection Agency says it willwait until this fall to decide whether U.S. car engines can handle higherconcentrations of ethanol in gasoline. The agency had been expected to decideby this month whether to increase the maximum blend from 10 to 15 percent. TheEPA said Thursday that initial tests "look good" and should becompleted by the end of September. A decision will come after the EnergyDepartment completes the testing of the higher blend on vehicles built after2007. The ethanol industry has maintained that there is sufficient evidence toshow that a 15 percent ethanol blend in motor fuel will not harm theperformance of car engines. But the refining industry, small enginemanufacturers and some environmental groups have argued against an increase.Agriculture Secretary Tom Vilsack said the announcement is good news forethanol producers and that the EPA is taking "a significant stepforward" by discussing their timeline.

Deepwater-Gate: TechnicalExperts Whose Views Were Misrepresented by Salazar Call Obama Ban on CurrentOffshore Exploration "Craziness." WallStreet Journal (6/17) editorializes, "The experts were certainly under theimpression they were reviewing a comprehensive document, as some of therecommendations would take six months or even a year to implement. And thereport they agreed to did address moratoria: It recommended a six-month ban onnew deepwater permits. Yet Benton Baugh, president of Radoil, said that in atleast two separate hour-and-a-half phone calls among Interior and the experts,there was no discussion of a moratorium on existing drilling. "Because ifanybody had [made that suggestion], we’d have said ‘that’s craziness.’" "This was a political call; this wasnot a technical call," says Mr. Arnold. Interior Secretary Ken Salazar hassince testified that the call was his. But Robert Bea, from the University ofCalifornia at Berkeley, who also reviewed the report, told us Interior had senthim a letter that "stated clearly that [the moratorium] had been insertedat the request of the White House." As for Ms. Browner’s claim that no onewas "misrepresented," Mr. Brett disputes that. Several reviewers saidthey had, in fact, received "apology" notes from the InteriorDepartment acknowledging the misrepresentation. "We did not mean to implythat you also agreed with the decision to impose a moratorium on all newdeepwater drilling," read one. All of this matters because it offers proof the moratorium was driven bypolitics, not safety.

Cracks in the Façade: SalazarTells Out-of-Work Residents of the Gulf Coast that Offshore Ban "Might" BeLifted Early – But Doesn’t Have the Juice to Guarantee It. NewOrleans Times-Picayune (6/16) reports, "Interior Secretary Ken Salazarrejected calls Wednesday from Gulf Coast officials for the immediate lifting ofa six-month moratorium on deepwater drilling, although he said it’s possible itcould be shortened. "We will not allow wells to be drilled unless we canbe assured of safety," Salazar said after a meeting with about 20 Gulf Coastcongressional members. He repeated the message in a meeting later with Sen.Mary Landrieu, D-La., and state and local officials from Louisiana, led byinterim Lt. Gov. Scott Angelle. Salazar, following up on President BarackObama’s statement Tuesday night that the commission investigating the DeepwaterHorizon accident might issue its findings on improving drilling safety soonerthan six months, said it is "possible" the moratorium could endsooner. Sen. David Vitter, R-La., said the deepwater drilling moratorium"is a huge job-killer that may ultimately do more damage to our economythan the oil spill itself, and the Obama administration needs to end itnow."

Sen. Kerry Tells Press that "EverySingle Study" Shows Mass Subsidization of "Green Jobs" Is an Economic Winner -But Spain (and DK, et. al) are "Anomalies." CEI’s Chris Horner writes (6/17) for the DailyCaller, "One should hold deeply mitigated expectations for a senator who,as lead author of a cap-and-trade bill, admits he doesn’t know whatcap-and-trade means. But Sen. John Kerry (D-Mass.) is tempting me to thinkthat, if he is merely uninformed, it must be willfully so. Or else he’s got anuncomfortable relationship with the truth and, it would seem particularly giventhe absence of specifics or examples, is making stuff up. Kerry Picket reportsthe following stunner,in the face of Spain’s disaster: Senator Kerry told reporters that "every study"shows that the subsidizing of alternative energy creates jobs, tellingreporters on Tuesday, "We just told you that every study that has been madesays that this creates hundreds of thousands of jobs a year," he said. However,according to a 2009 study from King Juan Carlos University in Madrid, Spain,the subsidizing of renewable energy was a complete disaster. In fact, the studysaid that for every new job depending on energy price supports, at least 2.2jobs in other industries will disappear. I asked Senator Kerry about Spain’sown failed experience in the area of subsidizing alternative energy: "You havesome anomalies in some countries where they began slowly. They didn’t have theright incentives, they over-subsidized a couple of different things- we’velearned something from some of those mistakes, but I’m confident that the waywe’re approaching this is really private sector determined." (Audiofile available)

Potemkin "Religious" Group -Funded Exclusively By the Godless – Comes Up with Six-Figure Ad Buy BlastingLindsey Graham for Backing Out on Cap-and-Raid. Politico(6/16) reports, "Sen. Lindsey Graham is under fire from a religious advocacygroup that once hailed his work on climate change but now is running ads oncable TV in the Washington market that question his reversal.  The American Values Network started airingcommercials Wednesday on MSNBC, CNN and Fox that contrast the South CarolinaRepublican’s past remarks in support of a major global warming bill with newsheadlines announcing that he no longer supports the legislation. "Now he’sbacking what he himself called a ‘half-assed energy bill,’" a narrator says inthe ads, citing perhaps Graham’s most widely quoted statement from earlier thisyear, in which he challenged the push by moderate Democrats to focus on energylegislation and skirt a vote on limits for greenhouse gases. Eric Sapp,executive director of the American Values Network, said his organization madethe "six-figure" ad buy to highlight Graham’s steady retreat over the past twomonths from closed-door talks with Sens. John Kerry (D-Mass.) and Joe Lieberman(I-Conn.).

These Are the Days of Our Lives:As Rest of the Nation Trips Over Itself to Figure Out Best Way to TakeAdvantage of Shale Gas, New York Continues to Wait for Godot. Peter Applebome writes (6/16) in the New YorkTimes, "Gas drilling isn’t new in New York. There are 13,000 active wellsin the state; the industry says the first gas well was drilled at Fredonia in1821. What’s new is the combination of hydraulic fracturing and horizontaldrilling in the rich gas deposit known as the Marcellus Shale, which runsroughly 600 miles – including in parts of Virginia, West Virginia, Ohio,Pennsylvania and New York. "It’s an awful idea," said Scott Kurkoski, a lawyer forthe Joint Landowners Coalition of New York, which represents 37 landownersgroups whose members own 800,000 acres. He said the failure to develop gas wasan economic hardship to landowners and to the state. Proponents of drilling saythat while New York has dithered, drilling in Pennsylvania has created 44,000jobs and has had a $1.8 billion economic impact. He added: "If there was alegitimate, rational reason to study this further, it would be one thing, butthis has already been studied to death. The calls for a delay are coming frompeople who don’t want to see it happen in New York."

Backers of NortheastCap-and-Raid System Cite Precipitous Drop in Emissions as Proof that RGGI IsWorking – Except: New Study Shows the Drop Had NOTHING TO DO with RGGI. E&E News (6/16,subs. req’d) reports, "Prices for RGGI allowances for the current commitmentperiod fell below $2 per short ton of carbon dioxide equivalent at the latestauction held on June 9 to $1.88 and are nearing the $1.86 price floorestablished under the cap-and-trade scheme. That is down from a record clearingprice of $3.51 per short ton netted at an auction held in March 2009.Allowances for the next RGGI commitment period are already trading at the floorprice. ENE says record low natural gas prices are behind the fall. Low gasprices and pressure to reduce greenhouse gas pollution have seen firmsswitching from coal-fired generation to gas in a big way. The sharp drop injust the first two years of RGGI’s existence, though driven by economicdecline, proves that quick gains in emissions reductions at minimal costs toratepayers are possible, ENE analysts say. Low natural gas prices helped pushfuel oil generation down 38 percent lower in 2009 than the prior year, whilecoal generation decreased 24 percent. "It appears that 2009 emissionslevels were caused more by relative fuel prices than by the RGGI capitself."

EU Finally Waking Up to the Factthat All the Suncatchers They Want to Install Require "Rare Earth" Metals ToWhich They Don’t Have Access – Hoping China Will Send Some Over. NYTimes (6/17) reports, "The European Union is facing shortages of 14critical raw materials needed for mobile phones and emerging technologies likesolar panels and synthetic fuels, according to a study by the EuropeanCommission to be released on Thursday. The commission is ringing the alarm bellon raw materials as China again plans to tighten its control over its rareearth minerals by allowing just a handful of state companies to oversee themining of the scarce elements that are vital to some of the world’s greenesttechnologies. To tackle the problem, the commission proposed that the EuropeanUnion improve its recycling policies, develop products that require fewer rawmaterials and encourage research on finding substitutes. But the commissionattributed the shortages to trade, taxation and investment policies in emergingeconomies that were aimed at reserving their resource bases for their exclusiveuse. "We need fair play on external markets," the European Union’s commissionerfor enterprise, Antonio Tajani, said in a draft statement that he plans todeliver on Thursday at a conference in Spain.

EPA Did Its Best to Hide It, Butin Agency’s Report on Kerry-Lieberman, an Interesting Nugget: Bill Will OnlyReduce Fossil Fuel Usage by FOUR PERCENT over Next 20 YEARS. LATimes (6/16) reports, "Major changes in energy policy – and attendantpolicies on climate change – are hard to bring to fruition because they requiresupport from Congress and a broad array of contending interest groups. So far,even modest steps toward energy independence have proved unacceptable. Case inpoint: EPA said Tuesday that additional fossil fuel costs imposed by anObama-blessed energy proposal being discussed in the Senate would cut petroleumconsumption only 4% over the next 20 years. Environmentalists want thepresident to use the oil spill as a bully pulpit to push harder on renewableenergy sources, such as wind and solar power, while avoiding fossil fuels.Conservatives have advocated more efforts at extracting fossil fuels. "TheUnited States has over a trillion barrels of oil shale out West. Billions ofbarrels of untapped oil in Alaska. And more coal and natural gas than we knowwhat to do with," said PatrickCreighton, a spokesman for the free-market Institute for Energy Research."An effective energy policy would treat these homegrown, job-creatingenergy resources as an asset, not a liability," he said.

Speaking of that EPA Report: TheRest of It Is a Heap of Garbage – But Even Cooked Research Shows Annual Cost toMiddle-Class Families of $150 – Not Peanuts. E&E News(6/15, subs. req’d) reports, "Sponsors of a Senate climate and energy bill hopea U.S. EPA analysis showing a modest increase on household energy costs willcreate a wave of new momentum for their legislation. Sens. John Kerry (D-Mass.)and Joe Lieberman (I-Conn.) released EPA’s analysis of their cap-and-trade billtoday, which states the measure would cost households between $80 and $150annually over the next 40 years. The analysis also shows that households’energy bills will decrease through 2030 under the bill. Critics of theKerry-Lieberman bill, meanwhile, accused EPA of underestimating the costs ofcap-and-trade legislation."The American people overwhelmingly oppose anincrease in the gas tax — yet, it’s included in this legislation," said Thomas Pyle, president of the Institute forEnergy Research. "We can argue about how high the costs of thislegislation will be, but no one denies that the consumer will end up with lessmoney in their pockets after this legislation is signed into law."Cap-and-trade legislation faces a difficult battle getting 60 votes in theSenate, where many moderate lawmakers have indicated opposition.

Obama Uses Primetime Address toLink Spill in the Gulf with Need to Pass Carbon Criminalization Bill – But AtLeast One Key Democrat Isn’t Buying It. UnitedPress International (6/15) reports, "A key Democrat on the U.S. Senateenergy committee said backers lack the votes to get climate-change rules intothe energy bill. Sen. Byron Dorgan, D-N.D., a senior member of the SenateEnergy and Natural Resources Committee, noted adding the rules would require 60votes. "I doubt very much whether those 60 votes exist right now," hesaid on C-SPAN’s "Washington Journal," The Hill reported. TheWashington publication noted President Barack Obama and Senate Majority LeaderHarry Reid, D-Nev., are preparing to squeeze an energy bill into a busy summerschedule on Capitol Hill. Obama has e-mailed supporters to try to expand their ranks.Reid has told committee heads to prepare for work on an energy bill. A loss ofDorgan’s support would mean Democrats would be at least two votes short ofmoving ahead with climate-change regulations.

Obama Announces Replacement forBirnbaum over at MMS – Some Fellow Named Michael Bromwich, Who Has ZEROExperience in Energy. CNN(6/15) reports, "President Barack Obama on Tuesday appointed Michael Bromwich,a former Justice Department watchdog in the Clinton administration, as the newhead of a reorganized federal effort to regulate offshore oil drilling."He has a mandate to implement far-reaching change and will have theresources to accomplish that change," the statement said. InteriorSecretary Ken Salazar previously announced plans to split MMS into three newdivisions — the Bureau of Ocean Energy Management, the Bureau of Safety andEnvironmental Enforcement, and the Office of Natural Resources Revenue. Bromwich,a lawyer who specializes in internal investigations and regulatory matters, wasthe Justice Department inspector general from 1994-1999 under President BillClinton. The job entailed investigating alleged corruption and misconduct inthe department. A graduate of Harvard College, Harvard Law School and Harvard’sJohn F. Kennedy School of Government, Bromwich was a federal prosecutor in NewYork and served as an associate for the independent counsel office in theIran-Contra case.

Even the Greens Scratchin’ TheirHead Over Obama’s Mystery MMS Pick – But Taking Comfort in the Fact He "MaxedOut" for Obama in 2008. E&E News (6/16, subs.req’d) reports, "Bromwich’s scarce experience in the field does raise eyebrowswith some Interior veterans."It is interesting that the president wouldselect someone who does not appear to have any natural resource or energyexperience to both reform and lead this organization during a time ofchallenge," said David Bernhardt, solicitor at the Interior Departmentduring the George W. Bush administration and now a lawyer in the Washingtonoffice of Brownstein Hyatt Farber Schreck. "However, he will actually findmany talented and dedicated public servants within Interior who will want tohelp him succeed, and who are radically different from the way they aredescribed in the talking points of politicians." "I don’t know himpersonally. I have not even heard of him," said Bill Snape, senior counselwith the Center for Biological Diversity. "Bromwich looks solid, though hedoes come out of a corporate law culture himself." Bromwich is not acomplete stranger to politics. He "maxed out" on politicalcontributions to President Obama’s 2008 campaign, giving $4,600, the limit underthe law. He gave $2,000 in 2004 to then-Democratic nominee Sen. John Kerry(D-Mass.).

Obama Calculation on MoratoriumProbably Didn’t Account for Constant Bird-Dogging from Gulf Coast Lawmakers -Scalise, Vitter, Landrieu Leading the Charge. Politico (6/15)reports, "House Republicans on Tuesday accused President Barack Obama of usingthe oil spill crisis as an excuse to push a new energy policy and an unpopularcap and trade proposal. Republican lawmakers also ripped the moratorium ondeepwater drilling.  "This jobkilling ban on drilling is causing more problems right now than the oil [spill]long term because it’s threatening over 40,000 jobs," said Rep. SteveScalise (R-La.). "It’s starting to already have reverberating, cripplingeffects to our economy and it doesn’t do anything to cap the well and toactually address the problems of the oil coming onto our shore."  Scalise, who visited Grand Isle, La.last week, said he heard from local leaders that they’re "spending moretime battling the federal government and BP than they are battling theoil." He said he’s heard that workers on the ground have waited as long asfive days to get answers from federal agencies.  "There’s no excuse for that," he said.

Labor Dept. Announces Plan toSpend Millions on New "Green Jobs" Programs – Only a Week After Admitting(Again) It Didn’t Know What a Green Job Was. E&E News(6/15, subs. req’d) reports, "The Labor Department awarded $9 million in grantstoday to train military veterans for "green" jobs, such as installingsolar panels and weatherizing homes. The competitive grants, provided throughthe Veterans’ Workforce Investment Program, are separate from a $500 millionAmerican Recovery and Reinvestment Act initiative the Labor Department isspearheading to position workers in the energy efficiency and renewable energyindustries. Twenty-two governments, nonprofits and work force investment boardsin 19 states and the District of Columbia will can begin tapping into the fundon July 1, an agency spokesman said. The organizations will use the money toprovide about 4,000 veterans job skills assessments, counseling, training,placement assistance and follow-up services. The grant recipients are: theColorado Department of Labor and Employment ($500,000); Goodwill Industries ofHouston Inc. ($500,000); Veterans Outreach Center Inc., Rochester, N.Y.($270,000); Commonwealth of Massachusetts ($500,000); Community Solutions forClackamas County, Ore. ($500,000); East Central University, Ada, Okla.($500,000); American G.I. Forum National Veterans Outreach Program Inc., SanAntonio, Texas ($500,000); Pima County, Ariz. ($500,000); Pennsylvania Departmentof Labor and Industry ($500,000);

Unearthed Report from FederalMine Safety Administration Seems to Indicate that Agency Gave Massey SomePretty Bad Advice on Methane. Reuters(6/15) reports, "Massey Energy Corp, owner of the coal mine where 29 men diedin a blast in April, said on Tuesday that mine safety regulators knew of cracksin the mine floor years earlier and made contradictory recommendations onpreventing deadly methane gas leaks. The company cited a July 15, 2004, reportby the federal Mine Safety and Health Administration (MSHA) regarding twoprevious methane outbursts at the Upper Big Branch mine in West Virginia."Importantly, the report contained recommendations inconsistent withMSHA’s recent handling of ventilation at UBB," Massey said in a pressrelease. Massey said MSHA personnel internally discussed prior methaneoutbursts at UBB in July 2003 and February 2004 that occurred when cracks inthe mine floor allowed methane to escape into the mine. "MSHA personnelrecommended that a number of steps be considered to address the potential forfuture outbursts," the company said. The primary recommendation was forincreased airflow to dilute the methane at the coal face. "Contrary to therecommendation, MSHA in 2009 and 2010 mandated changes resulting in less air onthe UBB longwall (coal face)," Massey said.

TopBloomberg Reporter (And Head of White House Correspondents Assn) Set to Re-JoinNRDC Staff for Second Time in 4 Years.Politico (6/13) reports, "Bloomberg’sEd Chen is joining the Natural Resources Defense Council. Chen left the LosAngeles Times to join the NRDC in 2006, but then jumped back into the world ofjournalism in 2007 with a job at Bloomberg. In an email obtained by POLITICO’sMike Allen, Chen says: "My regret over leaving one of the world’s largest –and certainly the most ambitious — news organizations is offset by a sense ofurgency in resuming doing the Lord’s work, particularly after the BP oil spill.That debacle was a divine signal to redouble my efforts to help clean up theenvironment, help America kick its petroleum addiction, and help publicofficials find the wisdom and courage to do the right thing to combat climatechange before it’s too late. So, I’m returning to the Natural Resources DefenseCouncil." The ease with which reporters seem able to jump between reporting andadvocacy seems to be increasing and fewer people seem to be surprised orshocked within Beltway circles. Still, it is this ease and comfort that willlikely reinforce notions across the country that all journalists are bias andlargely towards Democratic-friendly organizations.

Speakingof NRDC: What Business Does Frances Beinecke Have Serving on A Technical PanelExamining Details of the Deepwater Horizon Explosion? CNN (6/14) reports, "A White House statementsaid Obama named Frances Beinecke, president of the Natural Resources DefenseCouncil; Donald Boesch, president of the University of Maryland Center forEnvironmental Sciences; Terry Garcia, executive vice president for missionprograms for the National Geographic Society; Cherry Murray, dean of theHarvard School of Engineering and Applied Sciences; and Frances Ulmer,chancellor of the University of Alaska-Anchorage. Obama previously appointedformer U.S. Sen. Bob Graham of Florida, a Democrat, and former EnvironmentalProtection Agency administrator William Reilly as co-chairman of theseven-member commission. "These individuals bring tremendous expertise andexperience to the critical work of this commission," Obama said inMonday’s statement. "I am grateful they have agreed to serve as we work todetermine the causes of this catastrophe and implement the safety andenvironmental protections we need to prevent a similar disaster from happeningagain."

OutsourcingWorks: Far-to-the-Left DC Think Tank Has "More Influence on Spill Policy" withObama "Than the President’s In-House Advisors." Jonathan Weismanwrites (6/14) in the Wall Street Journal, "The liberal thinktank with close White House ties appears to have more influence on spill policythan the president’s in-house advisers. On May 4, for instance, the CAP’s energyand environment expert, Daniel Weiss, called on the president to name anindependent commission to look at the causes of the Deepwater Horizon disaster.On May 22, he did just that.  OnMay 21, CAP president, John Podesta, privately implored White House officialsto name someone to be the public point person for the spill response. A weeklater, the White House announced that Coast Guard Adm. Thad Allen would holddaily briefings on the spill, wherever he would be on any given day.  On May 26, Weiss said the White Houseneeded to demand that BP immediately set up an escrow account with billions ofdollars from which claims for Gulf state residents would be paid out.  Monday’s headlines proclaimed thepresident’s latest get-tough stand: BP needs to set up a billion-dollar escrowaccount. What’s next, Mr. Podesta?

Kerry,Lieberman Set to Unveil EPA Analysis of Bill Today – Anyone Else Confused WhyEPA, Putatively an Independent Agency, Isn’t Releasing It Itself?E&E News (6/14, subs. req’d) reports, "The architects of aSenate climate and energy bill will release U.S. EPA’s long-anticipatedeconomic modeling results of their legislation tomorrow. Sens. John Kerry(D-Mass.) and Joe Lieberman (I-Conn.) are expected to unveil the analysis at anews conference tomorrow afternoon. "I hope they’ll say that our billwill, as other independent studies have done, will say that adoption of ourbill over time will create millions of good new jobs," Lieberman said lastweek, noting that a "modest" increase in energy prices is expected(E&ENews PM, June 9). EPA’s analysis of the bill was expected go to CapitolHill last week, but agency spokesman Brendan Gilfillan said the analysis wassent to Kerry and Lieberman today. Kerry and Lieberman are pushing to getpieces of their bill included in a broad Senate energy and climate bill thatSenate Democratic leaders hope to bring to the floor in July.

EnvirosCan’t Even Process All the Money Coming In Right Now – Decide to Spend Some ofIt  On Ads in Expensive DC Market Thanking Webb, Warner for Voting AgainstMurkowski.Washington Post (6/14) reports, "Virginia’stwo Democratic senators are getting some free praise on the airwaves. CleanEnergy Works, a coalition of liberal and environmentalist groups, has launchedan ad thanking James Webb and Mark Warner for their votes last week against abill that would have blocked the Environmental Protection Agency fromregulating greenhouse gases. Webb and Warner joined 49 fellow Democrats, plusthe Senate’s two Independents, in voting against proceeding to Sen. LisaMurkowski’s (R-Alaska) "resolution of disapproval" curtailing theEPA’s authority. Explaining his vote, Webb said he would instead support acompromise measure by Sen. Jay Rockefeller (D-W.Va.) that would suspend theEPA’s regulation of greenhouse gases for two years, but not block italtogether. "I do not believe that Congress should cede its authority overan issue as important as climate change to unelected officials of the ExecutiveBranch," Webb said. Warner’s office said he voted against Murkowski’s bill"because he believes removing this EPA authority removes any impetus toadopt a comprehensive energy bill."

StevenChu May Not Be the Only Obama Cabinet Secretary Using the Tragedy in the Gulfto Advance a Favored Political Agenda – But He’s Probably the Worst At It.Bloomberg (6/14) reports, "U.S.Energy Secretary Steven Chu said Monday the oil spill disaster in the Gulf ofMexico underscores the need to develop wind power and a national energy plan. Alongtime advocate of wind power, Chu toured the University of Maine’s AdvancedStructures and Composites Center to learn more about its plans to design andtest floating deep-water wind turbine platforms. Maine officials hope to have awind farm in operation off the coast within six years. Chu said the oil spillwas "a tragedy" that served to highlight the imperative for anational energy plan. "It’s another reminder to step back and say, ‘We doneed a comprehensive energy strategy in the United States for the comingdecades,’" he said. Habib Dagher, the center director, said a greater pushfor renewable energy could be something good to come out of the calamity in theGulf. "It’s a major disaster and the sooner we can find other ways to powerthe country, the better off we’re going to be," Dagher said.

AnEffort We Can Get Behind: President Strikes Optimistic Tone Ahead of OvalOffice Speech Tonight – Says Gulf Coast is Open for Business, Local Seafood "IsDelicious."E&E News (6/15, subs. req’d) reports, "President Obamayesterday took on a newly optimistic tone about the ongoing BP PLC oil spill,vowing that the Gulf Coast would recover from the disaster that has sullied itswaters, fishing grounds and beaches. "I promise you this, that things aregoing to return to normal," Obama said after touring the Theodore, Ala.,staging facility. Obama is visiting Mississippi, Alabama and Florida this weekon his fourth visit to the Gulf since the Deepwater Horizon exploded in lateApril, prompting the massive spill. He made separate plugs for the region’sseafood and tourism industries, urging travelers to spend their tourism dollarson the Gulf Coast and proclaiming Gulf of Mexico seafood safe to eat. "Letme be clear, seafood from the Gulf today is safe to eat," he said. "Ihad some of that seafood for lunch and it was delicious." He announced astrengthened effort by the National Oceanic and Atmospheric Administration andthe Food and Drug Administration to ensure Gulf seafood safety. And Obamaseemed positive his administration could come to an agreement with BP aboutformation of a hefty fund designed to compensate people and businesses affectedby the spill.

Break Out the Flash Cards: AidesSay Markey "Has Been Prepping for Weeks" Ahead of Tomorrow’s Annual Show Trialwith Big Five Energy Executives.E&E News (6/14,subs. req’d) reports, "Rep. Chairman Ed Markey (D-Mass.) has summoned the topexecutives of Exxon Mobil Corp., Chevron Corp., ConocoPhillips and Shell OilCo., as well as BP, to a hearing in his House Energy and EnvironmentSubcommittee tomorrow. While the other executives are unlikely to deliver theharsh rebuke that BP has received from lawmakers and elsewhere, they will beput on the spot to explain how their safety protocol and response plans differfrom BP’s, making it difficult for them to completely avoid leveling at leastimplicit criticism against BP, according to congressional aides. Markey hasbeen unrelenting in his criticism of BP’s handling of the oil spill, sayingthat the actions and comments from company executives show that "they areeither incompetent or they are lying." He has floated a number oflegislative proposals in response to the accident, ranging from efforts toincrease the financial liability of oil companies drilling offshore to thecreation of an industry-funded research and development fund for spill cleanupand leak containment. Markey — a key ally of Speaker Nancy Pelosi (D-Calif.)and one of several Democratic leaders crafting a package of oil spill responselegislation — has been prepping for weeks for tomorrow’s hearing, according toaides.

Mutiny: In-Cycle Senate Dems,Sensing a Setting Sun on Cap-and-Raid, Rush to Fill the Hopper with as ManyBills As Their Staff Can Write Press Releases For. TheHill (6/14) reports, "No clear answers emerged from a meeting Reid heldwith several committee chairs and other Democratic leaders Thursday, while abroader Senate Democratic caucus meeting on energy awaits this coming Thursday.Ahead of that session, Sen. Jeff Merkley (D-Ore.) plans to outline proposalsMonday for curbing reliance on oil, and will speak on the matter at the Centerfor American Progress, a liberal think tank with deep ties to the White Houseand influential Democrats. Other members are preparing new energy plans too.Sources on and off Capitol Hill say Sen. Amy Klobuchar (D-Minn.) is readyinglegislation on renewable electricity and biofuels. Across the aisle, Sen.Richard Lugar (R-Ind.) unveiled a plan last week aimed at curbing oil usethrough various vehicle efficiency and renewable energy provisions. Other ideasabound. Sen. Frank Lautenberg (D-N.J.) is pushing a plan backed by severalenvironmental groups that would levy new fees on offshore oil-and-gas leases tofund alternative energy programs.

Demands from Gulf Coast forObama to Lift Short-Sighted Deepwater Moratorium Clearly Making a Difference;Browner Tells Press the Ban Will Likely Be Shortened. E&E News (6/11,subs. req’d) reports, "The Obama administration hopes to shorten the six-monthban on deepwater drilling in the Gulf of Mexico, a top presidential advisersaid today. Carol Browner, director of the White House Office of Energy andClimate Change Policy, said the independent commission President Obama hastasked with investigating the causes and effects of the ongoing BP PLC spill inthe Gulf may issue its final report sooner than its November deadline, leadingto an earlier end to the deepwater moratorium. "We certainly hopeso," Browner said on CNN’s "American Morning." "As soon aswe have those answers, clearly we want to make sure these people get back towork." The news will likely be welcomed by Sen. Mary Landrieu (D-La.), whoearlier today urged Obama to strike a balance between boosting the safety ofoffshore drilling and recognizing the importance of the offshore energyindustry to Louisiana’s economy.

And Just In Case Browner’sFibbing: Members of the House Line Up to Introduce New Legislation Demandingthe Job-Destroying Moratorium Be Lifted Now. TheHill (6/13) reports, "Freshman Texas Rep. Pete Olson plans to introduce abill to lift the Obama administration’s six-month moratorium on deepwaterdrilling, Texas TV station KPRC Local 2 reports.  Olson, a Republican, said the moratorium could cost the GulfCoast upward of 100,000 jobs if its 33 rigs remain idle.  "What that’s doing is turning thistragedy into an unmitigated disaster for our nation," Olson said."We’re going to lose thousands of jobs." Separately, Rep. CharlesBoustany (R-La.) wrote to President Barack Obama and Interior Secretary KenSalazar on Thursday to warn them that the moratorium could cause Louisiana tolose thousands of jobs. Boustany was one of 58 bipartisan House members whosigned a letter urging the administration to lift the earlier ban on shallow-wateroperations. "While recent decisions allow some shallow-water oil and gasproduction, the administration’s inconsistency furthers the uncertainty forthousands of Louisiana workers," Boustany wrote in an editorial publishedSunday by the Daily Advertiser in Lafayette, La. "The knee-jerk reactionto stop all permitting demonstrates a lack of informed decision-making from thefederal authorities."

Mo’ Money, Mo’ Problems: GreensSwimming in Cash in Wake of Offshore Tragedy, But Some Enviros Concerned thatNot Enough Attention Being Paid to … Rain Forests. Kate Galbraith writes (6/14) in the NYTimes, "As Rahm Emanuel says, a disaster is a terrible thing to waste,"said Zygmunt J.B. Plater, a law professor at Boston College, paraphrasing a2008 comment by the White House chief of staff about the then-burgeoning economiccrisis. Environmentalists, for their part, are hoping that the country will paymore attention to green issues after seeing the devastation in the gulf.  Another environmental group, AmericanRivers, is anticipating more attention to wetlands issues in general, eventhough oil was spilled into the sea, not rivers. "People are simply more tunedinto environmental issues right now, especially when it comes to clean water,"said Amy Souers Kober, a spokeswoman for the group. There is a flip side,however: other environmental causes could get starved of money and attention.For the past 50-plus days, the oil spill has dominated the headlines, the newsprograms and even the comedy shows across the United States. Other issues couldget overlooked. "Nobody’s talking right now about whales and rain forests," Mr.Plater said, "but what we are discovering is there is a huge economic backlashwhen environmental things go wrong."

Sestak Forced to Stake OutAggressively Anti-Marcellus Position to Beat Specter in Democratic Primary -But Now, In the General, He Finds Himself In a Pretty Tough Spot. PittsburghPost-Gazette (6/14) reports, "Sestak has endorsed legislation proposed byhis colleague, Sen. Bob Casey, D-Pa., that would bring Marcellus Shale drillingunder the oversight of the Safe Drinking Water Act. He has echoed PresidentBarack Obama’s call for a strict moratorium on offshore drilling. The Democrathas also endorsed a proposal from Mr. Casey and New York Democratic Sen.Charles E. Schumer that is designed to increase federal oversight of gasdrilling. Asked about the measure last week, Mr. Toomey warned that overlappingbureaucracies pose threats of inefficiency and rising costs. He pointed withapproval to the regulatory steps taken by Pennsylvania’s environmentalofficials in response to a Clearfield County gas blowout last week. To justifythe new federal oversight, Mr. Toomey said, "the burden is on Mr. Sestak"and other supporters of the Casey-Schumer bill to demonstrate thatPennsylvania’s environmental officials are somehow derelict in their oversight.

Eagle Ford the New Marcellus:Companies See a Shale Formation with Gas and Oil, and a State that Knows aThing or Two About Going Large. Bloomberg(6/14) reports, "KKR & Co., the buyout firm run by Henry Kravis and GeorgeRoberts, may purchase about $400 million of Texas shale assets from HilcorpEnergy Co., two people with direct knowledge of the talks said. KKR andHilcorp, a closely held exploration and production company based in Houston,may partner to develop the formation known as Eagle Ford in the southern partof the state, which has unconventional gas deposits, according to one of thepeople who declined to be identified because the deal is private. KKR’spurchase of a stake may be announced as early as today, the person said. KKRspokeswoman Kristi Huller said she couldn’t comment. Calls to Hilcorp over theweekend weren’t returned. Unconventional gas is the industry term to describefuel trapped in shale formations, coal beds and impermeable sandstone rock.Marc Lipschultz, global head of KKR’s energy business, is looking for oil andgas investments as the firm exits a 1-year-old minority stake in East ResourcesInc. That developer, focusing on the Appalachian basin’s Marcellus Shale area,agreed last month to sell itself to Royal Dutch Shell Plc for $4.7 billion.