Chesapeake Energy

Wed, 2014-02-19 10:27Steve Horn
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ALEC's Fracking Chemical Disclosure Bill Moving Through Florida Legislature

The American Legislative Exchange Council's (ALEC) model bill for disclosure of chemicals injected into the ground during the controversial hydraulic fracturing (“fracking”) process is back for a sequel in the Sunshine State legislature. 

ALEC's model bill was proposed by ExxonMobil at its December 2011 meeting and is modeled after a bill that passed in Texas' legislature in spring 2011, as revealed in an April 2012 New York Times investigative piece. ALEC critics refer to the pro-business organization as a “corporate bill mill” lending corporate lobbyists a “voice and a vote” on model legislation often becoming state law.

The bill currently up for debate at the subcommittee level in the Florida House of Representatives was originally proposed a year ago (as HB 743) in February 2013 and passed in a 92-19 vote, but never received a Senate vote. This time around the block (like last time except for the bill number), Florida's proposed legislation is titled the Fracturing Chemical Usage Disclosure Act (HB 71), introduced by Republican Rep. Ray Rodrigues. It is attached to a key companion bill: Public Records/Fracturing Chemical Usage Disclosure Act (HB 157).

HB 71 passed on a party-line 8-4 vote in the Florida House's Agriculture and Environment Subcommittee on January 14, as did HB 157. The next hurdle the bills have to clear: HB 71 awaits a hearing in the Agriculture and Environment Appropriations Subcommittee and HB 157 awaits one in the Government Operations Subcommittee.

Taken together, the two bills are clones of ALEC's ExxonMobil-endorsed Disclosure of Hydraulic Fracturing Fluid Composition Act. That model — like HB 71 — creates a centralized database for fracking chemical fluid disclosure. There's a kicker, though. Actually, two.

First kicker: the industry-created and industry-owned disclosure database itself — FracFocus — has been deemed a failure by multiple legislators and by an April 2013 Harvard University Law School studySecond kicker: ALEC's model bill, like HB 157, has a trade secrets exemption for chemicals deemed proprietary. 

Fri, 2013-12-13 07:00Steve Horn
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Former Chesapeake Energy CEO Aubrey McClendon Buys Fracking Wells In Ohio's Utica Shale

Former Chesapeake Energy CEO and Founder Aubrey McClendon is back in the hydraulic fracturing (“fracking”) game in Ohio's Utica Shale in a big way, receiving a permit to frack five wells from the Ohio Department of Natural Resources on November 26. 

“The Ohio Department of Natural Resources awarded McClendon's new company, American Energy Utica LLC, five horizontal well permits Nov. 26 that allows oil and gas exploration on the Jones property in Nottingham Township, Harrison County,” a December 6 article appearing in The Business Journal explained. “In October, American Energy Utica announced it has raised $1.7 billion in capital to secure new leases in the Utica shale play.”

McClendon is the former CEO of fracking giant Chesapeake Energy and now the owner of American Energy Partners, whose office is located less than a mile away from Chesapeake's corporate headquarters.

The $1.7 billion McClendon has received in capital investments for the purchase of 110,000 acres worth of Utica Shale land came from the Energy & Minerals GroupFirst Reserve Corporation, BlackRock Inc. and Magnetar Capital.

McClendon — a central figure in Gregory Zuckerman's recent book “The Frackers” — is currently under investigation by the U.S. Securities and Exchange CommissionHe left Chesapeake in January 2013 following a shareholder revolt over his controversial business practices.

In departing, he was given a $35 million severance package, access to the company's private jets through 2016 and a 2.5% stake in every well Chesapeake fracks through June 2014 as part of the Founder's Well Participation Program.

Little discussed beyond the business press, McClendon has teamed up with a prominent business partner for his new start-up: former ExxonMobil CEO Lee Raymond.

Wed, 2013-12-11 05:00Julie Dermansky
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Texas Fracking Bonanza: How Arlington Fell to the Frackers

Fort Worth was the first major city in America to allow extensive fracking within the city limits — but it wasn’t the last. Arlington, Texas, fell to the frackers next — only this time, the frackers were required to make their installations less of an eyesore.

Berms were built up around fracking sites and compressor centers to hide them from view, and active drill sites have temporary walls built up around them to keep the noise down. But walls don't stop chemical seepage.


Fracking site in Arlington, Texas, a suburb of Dallas. ©2013 Julie Dermansky

Kim Feil, an educator, blogger and environmental activist, is no stranger to chemical exposure. She moved from New Sarpy, Louisiana, part of an area known as Cancer Alley due to its many refineries and high incidence of cancer, to Arlington, before the fracking began.

Feil monitors new industrial developments and does what she can to stop them by attending city-zoning meetings. Her blog keeps neighbors informed about what is coming next and which fracking installations are having problems. Other concerned citizens share heartbreaking stories with her about sicknesses they believe are connected to fracking.

Tue, 2013-12-10 05:00Julie Dermansky
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Urban Fracking Bonanza Threatens Dallas Suburbs

When a representative from Chesapeake Energy knocked on Phyllis Allen's door in 2003 and offered $300 for her mineral rights and an invitation to a lease-signing pizza party, she turned them down.  

Allen’s home is in the United Riverside neighborhood, predominately poor and working class African American, the place where fracking first took hold in the city. She'd like to say she didn't sign because of her concerns for environmental issues but, at the time, she hadn’t heard of fracking.

She didn't sign because of the advice her father gave her: “Never sign anything you don't understand.”

Since then, Phyllis Allen, a retired Yellow Pages sales representative, has educated herself about fracking. During her daily walks along the Trinity River she takes note of environmental problems. In 2011, she saw a white chemical cloud rising over a compressor center and workers in hazmat suits going in to shut it down.

In another instance, Allen witnessed fluid being pumped into the Trinity River during the peak of the drought. She contacted Streams and Valleys, the organization responsible for the trails along Trinity, but never found out exactly what was going on. And she's noticed that migratory birds don't come back to the riverbank anymore.


Phyllis Allen in front of a compressor station near her home in Fort Worth. ©2013 Julie Dermansky

Wed, 2013-08-21 05:00Steve Horn
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Exclusive: Ousted Chesapeake Energy CEO Aubrey McClendon Launching Ohio Land Grab

Aubrey McClendon's penchant for “land grab” as a business model made the recently-ousted Chesapeake Energy CEO infamous - and he's at it again for his new start-up hydraulic fracturing (“fracking”) company in Ohio's Utica Shale basin. It's a formation he once hailed as the “biggest thing to hit Ohio since the plow.”

Under Securities and Exchange Commission investigation for sketchy business practices, McClendon departed Chesapeake with a severance package including $35 million, access to the company's private jets through 2016 and a 2.5% *return on ownership stake in* every well Chesapeake fracks through June 2014.

Since then, he launched three new start-ups: McClendon Energy PartnersAmerican Energy Partners and Arcadia Capital LLC.

American Energy Partners' headquarters are just half a mile down the road from Chesapeake's, the number two U.S. producer of shale gas behind ExxonMobil. Some of those in McClendon's Chesapeake inner circle have left Chesapeake and joined him (or reportedly intend to join him) at his new ventures.**

Though former Chesapeake employees are barred from working for McClendon, this excludes “any employee assigned to Mr. McClendon as an assistant,” “any employee who has been terminated by the Company,” “any employee who elects (or has elected) to accept any voluntary severance or retirement program offered by the Company,” or “any employee for whom the Company consents in advance to the soliciting and hiring by Mr. McClendon.” 

In other words, the scandal-ridden AKM Operations has shape-shifted into McClendon Energy Partners, American Energy Partners and Arcadia Capital LLC.

McClendon's playing the same business plan game using a different company name, with Ohio serving as the first pit stop. Although his business plans were held close to the chest since his Chesapeake departure, recent stories indicate that McClendon's Ohio “land grab” has now begun in earnest.

Mon, 2013-05-20 10:09Steve Horn
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Obama Admin. Approves ALEC Model Bill for Fracking Chemical Fluid Disclosure on Public Lands

On May 16, the Obama Interior Department announced its long-awaited rules governing hydraulic fracturing (“fracking”) on federal lands.

As part of its 171-page document of rules, the U.S. Bureau of Land Management (BLM), part of the U.S. Dept. of Interior (DOI), revealed it will adopt the American Legislative Exchange Council (ALEC) model bill written by ExxonMobil for fracking chemical fluid disclosure on U.S. public lands.

ALEC is a 98-percent corporate-funded bill mill and “dating service” that brings predominantly Republican state legislators and corporate lobbyists together at meetings to craft and vote on “model bills” behind closed doors. Many of these bills end up snaking their way into statehouses and become law in what Bill Moyers referred to as “The United States of ALEC.”

BLM will utilize an iteration of ALEC's “Disclosure of Hydraulic Fracturing Fluid Composition Act” - a bill The New York Times revealed was written by ExxonMobil - for chemical fluid disclosure of fracking on public lands and will do so by utilizing FracFocus.org's voluntary online chemical disclosure database.

In a way, it's all come full circle. As we covered here on DeSmogBlog, the original chemical disclosure standards and the decision to utilize FracFocus' database came from the Obama Dept. of Energy's (DOE) industry-stacked Fracking Subcommittee formed in May 2011. DOE gave a $1.5 million grant to FracFocus

The Texas state legislature soon thereafter adopted the first bill making FracFocus the fracking chemical disclosure database at the state level in June 2011. Since then, it's been off to the races, with the Council of State Governments adopting the TX bill as model bill in Aug. 2011, ALEC adopting it as a model bill in Oct. 2011, and the bill becoming state law in Colorado, Pennsylvania and other states.

Both the Illinois and Florida state legislatures have also tried to push through this model, but it died dead in its tracks.

FracFocus has been an anemic and failed effort by the Obama Admin. to alter the George W. Bush Admin. “Halliburton Loophole” standards for fracking chemical disclosure, which allowed the recipe of fracking chemicals to remain a “trade secret.” It's amounted to nothing more than the same game by a different name, with a Harvard study recently giving FracFocus a “failing grade.”     

Thu, 2013-03-28 05:00Sharon Kelly
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More Financial Worries Coming to Light in Domestic Shale Drilling Industry

Virtually anyone who has followed the onshore drilling bonanza knows the name Aubrey McClendon and the company he co-founded, Chesapeake Energy.

McClendon was the hard-driving CEO and chairman of one of America’s most aggressive drilling companies, but he was brought down earlier this year after a string of financial scandals and potential conflicts of interest came to light. It turned out that at the heart of the natural gas industry’s poster child lay financial practices that drew the ire of investors, the attention of SEC investigators and the fixation of the news media.

But in the past several months there have been a series of largely under-reported events that demonstrate that Mr. McClendon's problems are by no means distinct.

Might the drilling industry have broader financial issues?

Thu, 2013-02-28 09:51Steve Horn
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ALEC Sham Chemical Disclosure Model Tucked Into Illinois Fracking Bill

Illinois is the next state on the American Legislative Exchange Council (ALEC)'s target list for putting the oil industry's interests ahead of the public interest.

98 percent funded by multinational corporations, ALEC is described by its critics as a “corporate bill mill” and a lobbyist-legislator dating service. It brings together corporate lobbyists and right wing politicians to vote up or down on “model bills” written by lobbyists in service to their corporate clientele behind closed doors at its annual meetings.

These “models” snake their way into statehouses nationwide as proposed legislation and quite often become the law of the land. 

Illinois, nicknamed the “Land of Lincoln,” has transformed into the “Land of ALEC” when it comes to a hydraulic fracturing (“fracking”) regulation bill - HB 2615, the Hydraulic Fracturing Regulation Act - currently under consideration by its House of Representatives. “Fracking” is the toxic horizontal drilling process via which unconventional gas and oil is obtained from shale rock basins across the country and the world.

HB 2615 - proposed on Feb. 21 with 26 co-sponsors - has an ALEC model bill roped within this lengthy piece of legislation: the loophole-ridden Disclosure of Hydraulic Fracturing Fluid Composition Act.

As covered here on DeSmogBlog, this model bill has been proposed and passed in numerous statehouses to dateIf the bill passes, Illinois' portion of the New Albany Shale basin will be opened up for unfettered fracking, costumed by its industry proponents as the “most comprehensive fracking legislation in the nation.“ 

Tue, 2013-02-05 19:19Steve Horn
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Ed Rendell Intervened For Oil Company to Stop EPA Contamination Case Against Range Resources

A breaking investigation by EnergyWire appears to connect the dots between shadowy lobbying efforts by shale gas fracking company Range Resources, and the Obama EPA's decision to shut down its high-profile lawsuit against Range for allegedly contaminating groundwater in Weatherford, TX.

At the center of the scandal sits former Pennsylvania Gov. Ed Rendell, the former Chairman of the Democratic National Committee and the National Governors' Association.

Just weeks ago, the Associated Press (AP) broke news that the U.S. Environmental Protection Agency (EPA) shut down the high-profile Texas lawsuit and buried an accompanying scientific report obtained during the lawsuit's discovery phase in March 2012.

That confidential report, contracted out to hydrogeologist Geoffrey Thyne by the Obama EPA, concluded that methane found in the drinking water of a nearby resident could have originated from Range Resources' nearby shale gas fracking operation

Range Resources - which admitted at an industry conference that it utilizes psychological warfare (PSYOPs) tactics on U.S. citizens - launched an aggressive defense against the EPA's allegations that the company might be responsible for contaminating resident Steve Lipsky's groundwater.

Thu, 2013-01-31 04:00Steve Horn
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Three States Pushing ALEC Bill To Require Teaching Climate Change Denial In Schools

The American Legislative Exchange Council (ALEC) - known by its critics as a “corporate bill mill” - has hit the ground running in 2013, pushing “models bills” mandating the teaching of climate change denial in public school systems. 

January hasn't even ended, yet ALEC has already planted its Environmental Literacy Improvement Act - which mandates a “balanced” teaching of climate science in K-12 classrooms - in the state legislatures of Oklahoma, Colorado, and Arizona so far this year. 

In the past five years since 2008, among the hottest years in U.S. history, ALEC has introduced its “Environmental Literacy Improvement Act in 11 states, or over one-fifth of the statehouses nationwide. The bill has passed in four statesan undeniable form of “big government” this “free market” organization decries in its own literature.

ALEC's “model bills” are written by and for corporate lobbyists alongside conservative legislators at its annual meetings. ALEC raises much of its corporate funding from the fossil fuel industry, which in turn utilizes ALEC as a key - though far from the only - vehicle to ram through its legislative agenda through in the states. 

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