Fri, 2014-06-27 01:00Steve Horn
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Revealed: Heather Zichal Met with Cheniere Executives as Obama Energy Aide Before Board Nomination

Heather Zichal, former deputy assistant for energy and climate change to President Barack Obama and nominee to sit on the board of directors of LNG export company Cheniere Energy Inc., held two meetings with Cheniere executives while working for the White House. 

White House meeting logs show Zichal attended the meetings with three executives from Cheniere, owner of the Sabine Pass LNG (liquefied natural gas) export facility, the first terminal to receive a final approval from the U.S. Federal Energy Regulatory Commission (FERC) during the hydraulic fracturing (“fracking”) boom.

The meetings appear to have taken place just over two weeks apart from one another, according to the meeting logs. The first meeting was on January 14, 2013, and the second on January 29, 2013. Just over eight months later, Zichal resigned from her White House job, with Reuters citing “plans to move to a non-government job.”

Cheniere CEO Charif Souki — who is facing a major ongoing class-action lawsuit — sat in on both of those meetings. He was joined by Cheniere executives Patricia Outtrim, vice president of governmental and regulatory affairs, and Ankit Desai, vice president of government relations.

Desai, a Cheniere lobbyist, formerly worked with Zichal on U.S. Secretary of State John Kerry's 2004 presidential campaign, serving as his budget director. Desai also formerly served as political director for then-U.S. Senator and now Vice President Joe Biden.


President Barack Obama (L), Heather Zichal (Center), Sec. of State John Kerry (R); Photo Credit: Facebook

Zichal served as Kerry's energy and environment policy adviser for the 2004 campaign and in 2006, became his legislative director, a job she held until becoming policy director for energy, environment and agriculture for President Barack Obama's 2008 presidential campaign

Thu, 2014-06-26 14:22Farron Cousins
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Obama Administration Secretly Weakening EPA Rules

One of highest hopes that environmentally-minded Americans had for President Obama when he first entered office was that he would finally put an end to the secrecy that marred the former Bush administration when it came to environmental policy. 

The image of then-Vice President Dick Cheney meeting in secret with dirty energy industry leaders was still fresh in our heads as we went to the polls in 2008, and we were all but certain that the country chose a leader that would leave those dark days in the past.

Sadly, those hopes for a policy change were dashed before the end of Obama’s first year.  He talked a big game on the campaign trail, but when it came to acting on those promises, that rhetoric proved to be just as hollow as his predecessor’s. 

Obama doubled down on coal, oil, and fracking, while allowing renewable energy investments to fall.  But the most disturbing part of the story is that Obama and his officials have been working in secret to weaken environmental standards that his administration has been patting themselves on the back for in public.

Recently, a federal judge expanded a Freedom of Information Act lawsuit that was filed against the Small Business Administration (SBA), which claims that officials within the White House Office of Management and Budget (OMB) has been working to weaken the Environmental Protection Agency’s (EPA) power plant pollution standards.  The administration has been dragging its feet in providing the information requested, even after the court ruling, which has led environmental groups to file a complaint against the White House.

At issue is the EPA’s failure to update standards for existing power plants as required by the Clean Air Act — a move that the U.S. Supreme Court had previously said was required of the agency.  The current rules have not been updated since 1982, and environmental groups say that the lack of updating is due to influence from the White House itself.

Thu, 2014-06-26 08:38Guest
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National Gas Industry Hires Family Members of Leading Politicians

This is a guest post by Lee Fang.

In May of last year, Rep. Shelley Moore Capito, now considered the favorite to win West Virginia’s open Senate seat, stood on a small platform in Charleston, behind a row of tiny trophies in the shape of drilling rigs.

She was there to congratulate the Energy Corporation of America, a major gas exploration and distribution company, on its plans to open a new building in the state capital.

The company needed new space to accommodate over a hundred new employees in coming years.

I am honored to attend the groundbreaking celebration of the ECA’s new eastern headquarters,” Capito told the crowd, according to an ECA press release. “This privately held company has brought economic growth to West Virginia.”

Though there’s no record of her having acknowledged it publicly, among those hired by the growing firm is her own son, Arch Moore Capito, who was retained as in-house counsel by ECA after his graduation from Washington & Lee University’s law school in 2011.

The hiring of Arch, named after Capito’s father, the late West Virginia governor Arch Moore, highlights a growing trend. Major players in the  gas industry, which faces major regulatory hurdles relating to its extraction and distribution infrastructure, exports, and environmental issues, have taken to hiring the relatives of powerful politicians.

Wed, 2014-06-25 17:00Anne Landman
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Second Earthquake in Under a Month Shuts Down Colorado Fracking Wastewater Injection Well

second earthquake struck Greeley in northeastern Colorado on Monday, June 23 prompting the state's Oil and Gas Conservation Commission to order a halt to the injection of contaminated drilling wastewater into a deep disposal well in the area.

The ban on injecting wastewater will last for 20 days as officials explore a potential link between the injection activity and the sudden jump in seismicity in the area. The most recent quake was a 2.6 magnitude temblor that hit about five miles north of Greeley at 12:27 p.m. It follows a 3.4 magnitude quake which struck the same area May 30.

Two quakes in less than a month, in an area the U.S. Geological Survey formerly called “aseismic,” has led to speculation that the temblors are “frackquakes,” seismic activity induced by the injection of drilling wastewater into deep rock formations. 

Wed, 2014-06-25 13:27Steve Horn
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Recent Federal Court Decision Could Muddy Waters for Keystone XL South, Flanagan South

On June 6, the U.S. Court of Appeals for the District of Columbia Circuit handed down a ruling that will serve as important precedent for the ongoing federal legal battles over the Keystone XL and Flanagan South tar sands pipelines.

In the Delaware Riverkeeper v. Federal Energy Regulatory Commission (FERC) case, judges ruled that a continuous pipeline project cannot be segmented into multiple parts to avoid a comprehensive National Environmental Policy Act (NEPA) review. This is what Kinder Morgan proposed and did for its Northeast Upgrade Project.

As reported on DeSmogBlog, the U.S. Army Corps of Engineers did the same thing to streamline permitting for both the southern leg of TransCanada's Keystone XL and Enbridge's Flanagan South. Sierra Club and co-plaintiffs were denied injunctions for both pipelines in October and November 2013, respectively.

Delaware Riverkeeper v. FERC dealt with breaking up a new 40-mile long pipeline upgrade into four segments. For the other two cases, the Army Corps of Engineers shape-shifted the two projects — both hundreds of miles long each — into thousands of “single and complete” projects for permitting purposes.

On the day of the Delaware Riverkeeper v. FERC decision, Sierra Club attorney Doug Hayes submitted the case as supplemental authority for the ongoing Flanagan South case.

On May 5, Hayes also submitted paperwork to appeal the Keystone XL South decision in front of the U.S. Court of Appeals for the Tenth Circuit, which was docketed by the clerk of Ccurt the next day.

Hayes told DeSmogBlog his side will file an opening brief for the appeal on July 30. It seems likely Delaware Riverkeeper v. FERC will be a key part of that appeal.

In a sign of the importance of the outcome for the oil and gas industry, the American Petroleum Institute (APIentered the Sierra Club v. Army Corps of Engineers case on Keystone XL as an intervenor on May 16, represented by corporate law firm Hunton & Williams.

At the federal level, Hunton & Williams lobbies on behalf of Koch Industries, a company with a major stake in tar sands leases and refining.

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