pennsylvania

Fri, 2012-08-03 05:00Steve Horn
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Delaware Tax Haven: The Other Shale Gas Industry Loophole

Most people think of downtown Houston, Texas as ground zero for the oil and gas industry. Houston, after all, serves as home base for corporate headquarters of oil and gas giants, including the likes of BP America, ConocoPhillips, and Shell Oil Company, to name a few.

Comparably speaking, few would think of Wilmington, Delaware in a similar vein. But perhaps they should, according to a recent New York Times investigative report by Leslie Wayne.

Wayne's story revealed that Delaware serves as what journalist Nicholas Shaxson calls a “Treasure Island” in his recent book by that namesake. It's an “onshore tax haven” and an even more robust one than the Caymen Islands, to boot.

The Delaware “Island” is heavily utilized by oil and gas majors, all of which are part of the “two-thirds of the Fortune 500” corporations parking their money in The First State.

Delaware is an outlier in the way it does business,” David Brunori, a professor at George Washington Law School told The Times. “What it offers is an opportunity to game the system and do it legally.”

The numbers are astounding. “Over the last decade, the Delaware loophole has enabled corporations to reduce the taxes paid to other states by an estimated $9.5 billion,” Wayne wrote

“More than 900,000 business entities choose Delaware as a location to incorporate,” explained another report. “The number…exceeds Delaware's human population of 850,000.”

Fri, 2012-07-27 03:30Steve Horn
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Exposed: Pennsylvania Act 13 Overturned by Commonwealth Court, Originally an ALEC Model Bill

On July 26, the Pennsylvania Commonwealth Court** ruled PA Act 13 unconstitutional.*** The bill would have stripped away local zoning laws, eliminated the legal concept of a Home Rule Charter, limited private property rights, and in the process, completely disempowered town, city, municipal and county governments, particularly when it comes to shale gas development.

The Court ruled that Act 13 “…violates substantive due process because it does not protect the interests of neighboring property owners from harm, alters the character of neighborhoods and makes irrational classifications – irrational because it requires municipalities to allow all zones, drilling operations and impoundments, gas compressor stations, storage and use of explosives in all zoning districts, and applies industrial criteria to restrictions on height of structures, screening and fencing, lighting and noise.”

Act 13 – pejoratively referred to as “the Nation's Worst Corporate Giveaway“ by AlterNet reporter Steven Rosenfeld – would have ended local democracy as we know it in Pennsylvania.

“It’s absolutely crushing of local self-government,” Ben Price, project director for the Community Environmental Legal Defense Fund (CELDF), told Rosenfeld. “It’s a complete capitulation of the rights of the people and their right to self-government. They are handing it over to the industry to let them govern us. It is the corporate state. That is how we look at it.”

Where could the idea for such a bill come from in the first place? Rosenfeld pointed to the oil and gas industry in his piece.

That's half of the answer. Pennsylvania is the epicenter of the ongoing fracking boom in the United States, and by and large, is a state seemingly bought off by the oil and gas industry.

The other half of the question left unanswered, though, is who do oil and gas industry lobbyists feed anti-democratic, state-level legislation to?

The answer, in a word: ALEC.

Tue, 2012-05-29 14:31Farron Cousins
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Fracking Industry Trying To Keep Doctors Silent About Chemical Dangers

Polls conducted in recent years show that close to 80% of Americans trust their doctors. They believe, rightly so, that their personal doctors are looking out for their patients’ best interests, and that doctors will do what is necessary to get patients healthy. But what happens when a doctor is legally bound to keep vital health information away from not just their patients, but from the general public? Under new laws being pushed by the fracking industry, we’ll soon have an answer to that question.

Earlier this year, Mother Jones reported on a new law in Pennsylvania that allows doctors to have access to the secret fracking formulas that the dirty energy industry is pumping into the ground, but they are legally required to keep that information private. From the Mother Jones report:
  

There is good reason to be curious about exactly what's in those fluids. A 2010 congressional investigation revealed that Halliburton and other fracking companies had used 32 million gallons of diesel products, which include toxic chemicals like benzene, toluene, ethylbenzene, and xylene, in the fluids they inject into the ground. Low levels of exposure to those chemicals can trigger acute effects like headaches, dizziness, and drowsiness, while higher levels of exposure can cause cancer.

Pennsylvania law states that companies must disclose the identity and amount of any chemicals used in fracking fluids to any health professional that requests that information in order to diagnosis or treat a patient that may have been exposed to a hazardous chemical. But the provision in the new bill requires those health professionals to sign a confidentiality agreement stating that they will not disclose that information to anyone else—not even the person they're trying to treat.
 
Fri, 2012-05-25 10:44Steve Horn
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Public Accountability Initiative Produces New Report on SUNY Buffalo's "Shill Gas Study"

The Public Accountability Initiative (PAI) has upped the ante on DeSmogBlog's reporting on what we coined a “Shill Gas Study” recently conducted by SUNY Buffalo.

In our critique of the “study” we pointed out the fact that all of the authors and nearly the entire peer review board of the study, other than one person, was or has been connected to the oil and gas industry.

The study, published by the brand new SUNY Buffalo's Shale Resources and Society Institute and titled “Environmental Impacts During Shale Gas Drilling: Causes, Impacts and Remedies,” was also, as we pointed out, based on likely purposefully flawed methodology. We wrote:

The Shale Resources and Society Institute ”study“ concluded that between Jan. 2008-Aug. 2011, ”1,844 of the [Pennsylvania Department of Environmental Protection (DEP)] violations [by the gas industry], or 62 percent, were administrative and preventative in nature. The remaining 1,144 violations, or 38 percent, were environmental in nature.”

Left out of the study is the fact that, as a May 10 Cleveland Plain Dealer report shows, a majority of wells are not even inspected in the state of Pennslyvania by the DEP. In 2009, the DEP inspected 23% of its wells, 24% in 2010 and 35% in 2011, with 84 hired inspectors to examine what grew to 69,000 wells by 2011 in the state.

Taking our reporting a step further, PAI published a study this week titled, “The UB Shale Play: Distorting the Facts about Fracking,” which offered additional critiques of the methodology of SUNY Buffalo's “study.” PAI explained in a press release:

Wed, 2012-05-02 10:04Steve Horn
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ALEC Wasn't First Industry Trojan Horse Behind Fracking Disclosure Bill - Enter Council of State Governments

19th Century German statesman Otto von Bismarck once said, “If you like laws and sausages, you should never watch either one being made.”

The American Legislative Exchange Council (ALEC), put on the map by the Center for Media and Democracy in its “ALEC Exposed” project, is the archetype of von Bismarck's truism. So too are the fracking chemical disclosure bills that have passed and are currently being pushed for in statehouses nationwide.

State-level fracking chemical disclosure bills have been called a key piece of reform in the push to hold the unconventional gas industry accountable for its actions. The reality, though, is murkier.

On April 21, The New York Times penned an investigation making that clear. The Times wrote:

Last December, ALEC adopted model legislation, based on a Texas law, addressing the public disclosure of chemicals in drilling fluids used to extract natural gas through hydraulic fracturing, or fracking. The ALEC legislation, which has since provided the basis for similar bills submitted in five states, has been promoted as a victory for consumers’ right to know about potential drinking water contaminants.

A close reading of the bill, however, reveals loopholes that would allow energy companies to withhold the names of certain fluid contents, for reasons including that they have been deemed trade secrets. Most telling, perhaps, the bill was sponsored within ALEC by ExxonMobil, one of the largest practitioners of fracking — something not explained when ALEC lawmakers introduced their bills back home.

The Texas law The Times refers to is HB 3328, passed in June 2011 in a 137-8 roll call vote, while its Senate companion bill passed on a 31-0 unanimous roll call vote. Since then, variations of the model bill have passed in two other key states in which fracking is occuring.

Like dominos falling in quick succession over the following months, ColoradoPennsylvania and, most recently, the Illinois Senate passed bills based on the ALEC model. Louisiana also has introduced a similar bill. 

Mon, 2012-04-23 14:20Steve Horn
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Rendell and Ridge: From "Militant" Labelers to Terrorist Enablers

A new chapter has been added to the shale gas industry's eco-terrorism, counterinsurgency and psychological operations saga.

In March, NBC News investigative reporter Michael Isikoff revealed that many prominent U.S. public officials are on the payroll of the People's Mujahedin of Iran (MEK), a group labeled by the U.S. State Department as a terrorist organization. These U.S. officials are lobbying hard to remove the MEK from the list.

Under U.S. Supreme Court precedent, after the recent Holder v. Humanitarian Law Project decision – a controversial decision itself – it is a federal crime to provide “material support” for a designated terrorist organization. But legal niceties are apparently of nil concern to those on the dole of the MEK, a list that includes several big name political figures, according to a report written by former Bush Administration attorney and RAND Corporation analyst Jeremiah Goulka. A sample is below:

  • Former Gov. Ed Rendell (D-PA)
  • Former Gov. Tom Ridge (R-PA), who was also the former head of the U.S. Department of Homeland Security under President George W. Bush
  • Former NY Mayor Rudy Giuliani, who was also a Republican primary candidate for President in 2008
  • Former Gov. Howard Dean (D-VT), formerly the head of the Democratic National Committee and a Democratic primary candidate for President in 2004  

Many other powerful people are on the bipartisan list, as well. 

Mon, 2012-04-09 12:15Farron Cousins
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Survey Says...Fracking IS Causing Earthquakes

A new report by the U.S. Geological Survey (USGS) says that the increased seismic activity taking place in certain areas of the United States is almost certainly the result of oil and gas drilling activities. The group has been studying dozens of earthquakes across America for the last 8 months and determined that the man-made quakes were taking place in areas where fracking or deep waste water injection had recently occurred.

Here is a brief snippet from the report's abstract:
  

A remarkable increase in the rate of M 3 and greater earthquakes is currently in progress in the US midcontinent. The average number of M >= 3 earthquakes/year increased starting in 2001, culminating in a six-fold increase over 20th century levels in 2011. Is this increase natural or manmade? To address this question, we take a regional approach to explore changes in the rate of earthquake occurrence in the midcontinent (defined here as 85° to 108° West, 25° to 50° North) using the USGS Preliminary Determination of Epicenters and National Seismic Hazard Map catalogs…

The modest increase that began in 2001 is due to increased seismicity in the coal bed methane field of the Raton Basin along the Colorado-New Mexico border west of Trinidad, CO. The acceleration in activity that began in 2009 appears to involve a combination of source regions of oil and gas production, including the Guy, Arkansas region, and in central and southern Oklahoma. Horton, et al. (2012) provided strong evidence linking the Guy, AR activity to deep waste water injection wells. In Oklahoma, the rate of M >= 3 events abruptly increased in 2009 from 1.2/year in the previous half-century to over 25/year. This rate increase is exclusive of the November 2011 M 5.6 earthquake and its aftershocks. A naturally-occurring rate change of this magnitude is unprecedented outside of volcanic settings or in the absence of a main shock, of which there were neither in this region. While the seismicity rate changes described here are almost certainly manmade, it remains to be determined how they are related to either changes in extraction methodologies or the rate of oil and gas production.


What’s interesting is that the USGS points out the obvious fact that has been ignored by the industry – these earthquakes are occurring in areas where earthquakes shouldn’t be happening. Still, that hasn’t stopped the dirty energy industry from denying that there is a correlation between fracking and earthquakes.

Thu, 2011-08-18 05:37TJ Scolnick
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Shale Gas Outrage Rally And Freedom From Fracking Conference In Philadelphia

On Wednesday, September 7th, opponents of hydraulic fracturing (fracking) and unconventional gas exploitation are invited to come to Philadelphia for the Shale Gas Outrage rally. The next day, all are welcome at the Freedom From Fracking: Building Strategies Together conference.

Protecting Our Waters is spearheading the events, and is partnering with another 43 groups from inside and outside of Pennsylvania. Like the Day of FRACtion in New Brusnwick, the Pennsylvania protest intends to send a direct message to industry and government that many citizens are worried and do not want more drilling.

Appearing at the event will be:

Josh Fox, Director of the Oscar-nominated “Gasland;” Al Appleton, internationally respected water systems expert;  impacted families from “shale country”;organizers fighting for the life of the Delaware River watershed, the commonwealth, the Marcellus Shale region, and the nation; and elected officials who have championed the cause of clean water, clean air, and human health.

Wed, 2011-08-03 11:39Farron Cousins
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Federal Government Asks Judge To Dismiss New York State Fracking Lawsuit

The U.S. government is asking a federal judge in New York to dismiss a lawsuit brought by the state of New York against the government that was seeking to demand a complete review of the environmental damage caused by hydraulic fracturing (fracking). The federal government claims that New York state does not have the grounds to file a suit as they have “no evidence” of injury and they do not have the authority to sue the federal government.

Sandra Levy, an Assistant U.S. Attorney, wrote to District Judge Nicholas Garaufis, telling him that the suit was barred because the federal government has “sovereign immunity,” and therefore, federal agencies cannot be sued by states.

Thu, 2011-07-07 11:07Carol Linnitt
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Gas Industry Spent "Staggering" Amount Lobbying in Pennsylvania Last Year

The gas industry spent $3.5 million last year attempting to convince Pennsylvania lawmakers of the benefits of drilling the state’s deposits of unconventional gas. According to lobbying disclosure reports filed with the Department of State, the lobbying blitz to influence public policy was orchestrated by a collection of 22 companies, the Marcellus Shale Coalition (MSC) and the Pennsylvania Independent Oil and Gas Association (PIOGA).

Rep. Greg Vitali of Havertown described the disclosed amounts as “staggering,” adding that, “it isn’t the type of spending you would find from fledgling companies.”

The Times-Tribune reports the figures as follows:

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