Exxon Mobil

Tue, 2013-05-14 11:46Ben Jervey
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Pegasus Pipeline Spill: Mayflower Residents Find Conflicting Advice from Arkansas Agencies

It’s been over five weeks since ExxonMobil’s Pegasus pipeline burst beneath a Mayflower, Arkansas subdivision, spilling diluted bitumen born of tar sands throughout the neighborhood. Five weeks later, and still the air carries noxious fumes. Residents complain of headaches, nausea, and worse.

Meanwhile, these residents of Mayflower are getting mixed signals from various state agencies, as well as the EPA and ExxonMobil.

While Exxon, the EPA, the Arkansas Department of Environmental Quality (ADEQ), and the Arkansas Department of Health are assuring the community that the air is safe, Arkansas’s Attorney General Dustin McDaniel isn’t so sure.

As we met with residents and groups that represent them, like Remember Mayflower, I heard time and time again about their health, especially the health of their children,” McDaniel said last week. “Many continue to suffer from headaches and nausea and air sampling continues to show that the carcinogen benzene remains in the air.”

Wed, 2013-04-03 16:34Carol Linnitt
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Tar Sands Tax Loophole Cost US Oil Spill Fund $48 Million in 2012, Will Cost $400 Million by 2017

A tax loophole exempting tar sands pipeline operators from paying an eight-cent tax per barrel of oil they transport in the US is costing the federal Oil Spill Liability Trust Fund millions of dollars every year. With expected increases in tar sands oil production over the next five years, this loophole may have deprived US citizens of $400-million dollars worth of critical oil-spill protection funds come 2017.

According to a report by the US Natural Resources Committee the federal government pays for immediate oil-spill response from the Liability Trust Fund which is supported by an excise tax on all crude oil and gas products in the US.

But in 2011 the Internal Revenue Service exempted tar sands oil from the tax, saying the substance did not fit the characterization of crude oil.

This exemption has come under scrutiny this week after Exxon Mobil's Pegasus pipeline ruptured in Mayflower, Arkansas, releasing 300,000 litres of tar sands oil and water into a residential neighbourhood and surrounding wetlands. Because the line carried tar sands-derived oil from Alberta, Exxon was exempt from paying into the spill liability fund for the corrosive fuel's potential cleanup.

Wed, 2013-04-03 13:51Ben Jervey
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Can We Trust Exxon To Pay for Pegasus Tar Sands Spill Cleanup? Their History Suggests Otherwise

ExxonMobil is getting defensive about its response plans for the tar sands pipeline spill in Arkansas. The company took to Twitter this afternoon to respond to what it called “allegations” that Exxon isn't liable for the full costs of cleaning up their tar sands crude spill in Mayflower, Arkansas.  

Here's the tweet from @exxonmobil sent in response to critics who pointed out that, because of a major loophole that needs to be closed, bitumen is not considered crude oil, and therefore tar sands pipeline operators like Exxon aren't required to pay into the oil spill cleanup fund

A couple of things to unpack here.

Tue, 2013-01-08 11:30Sharon Kelly
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Shale Gas Uncertainty: How an Industry Talking Point Misses the Mark

When oil and gas executives gathered in Pittsburgh, Pennsylvania to discuss the state of the industry shortly after Obama won re-election, they raised a recurring complaint.

“We now face four more years of regulatory uncertainty,” said Randy Alpert, an official with Consol energy told gathered shale gas executives.

Penny Seipel, Vice President of the Ohio Oil and Gas Association hit a similar note the very next day.

“Unfortunately, we have had quite a bit of uncertainty regarding our fiscal situation,” she said as she described proposed regulation and taxation of drilling companies in her state.

This uncertainty mantra has been trotted out by many industries facing potential oversight and is now being picked up by oil and gas: “We are not against regulation, we are against regulatory uncertainty,” the line goes. “We don’t care what the rules are,” companies say, “just tell us ahead of time and then we will follow them gladly.”

This well-worn trope gives the impression that drillers do not view regulators as adversaries. All they’re asking for is common-sense fairness. Who could be against someone asking to know what the rules are? Predictability is a reasonable request.

It's a shrewd position for the shale industry. But it’s also deeply misleading and worth flagging now since it is likely to get amplified in coming months as more attention turns to whether federal officials should step up their oversight of oil and gas drilling.

Fri, 2011-07-29 12:14Ben Jervey
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The Many Problems With Tar Sands Pipelines

Enbridge tar sands pipeline spill Kalamazoo River Michigan

Note: This post is part of an ongoing series about North American pipelines. For an introduction and links to the wide-ranging coverage–from safety to legal issues to the business and economics to vulnerabilities–see this regularly-updated intro post.

On Monday, the House passed a bill that would force the Obama administration to make a final decision on TransCanada’s controversial Keystone XL pipeline by November 1. The Keystone XL project (which regular DeSmogBlog readers should be familiar with) would funnel tar sands oil from Alberta’s massive reserves down to Gulf Coast refineries in Texas.

This isn’t the place to discuss in too much depth the various and plentiful problems with Alberta tar sands itself – from extraction to transportation to refining to combustion, it’s the dirtiest oil on the planet. From a climate perspective, the Alberta tar sands contain enough carbon to lock the planet into climate chaos. In the words of NASA climatologist Jim Hansen, “if the tar sands are thrown into the mix it is essentially game over.”

Because Keystone XL is so controversial, and because its construction could be such a tipping point in the climate fight, a broad and diverse coalition of scientists and activists are digging in their heels for a big fight, and planning a multi-week action at the White House. (Here’s more on how to get involved.)

But since this is a post about pipelines, I’m going to focus on how tar sands pipelines are different than those that carry conventional crude, how they’re much more prone to leaks and spills, and how those spills are particularly bad for the environment.

Fri, 2011-07-22 05:15Ben Jervey
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Koch Brothers And ExxonMobil Join Forces To Fight RGGI With Copy-Paste State Legislation

As we’ve reported over and over again, the popular and successful Regional Greenhouse Gas Initiative (RGGI) and other regional climate agreements are under attack from polluters. Today, a bombshell report by Bloomberg News makes it undeniably clear who is leading the attack, and paints an ugly picture of collusion, influence, and state legislators deep in the pocket of the fossil fuel industry. 

The report shines a light on the American Legislative Exchange Council (ALEC), which serves as a drafting board for industry-friendly state legislation and then subsequently as a sort of mixer for corporations and state politicians who are willing to accept financial favors to bring these copy-and-paste laws back to their home states.

Bloomberg reporter Alison Fitzpatrick 
writes:
The opportunity for corporations to become co-authors of state laws legally through ALEC covers a wide range of issues from energy to taxes to agriculture. The price for participation is an ALEC membership fee of as much as $25,000 – and the few extra thousands to join one of the group’s legislative-writing task forces. Once the “model legislation” is complete, it’s up to ALEC’s legislator members to shepherd it into law.
Fitzpatrick calls out Exxon Mobil and Koch Industries as two companies whose handwriting (forget fingerprints) are all over the template legislation that forces states out of their regional climate agreements.
Thu, 2011-06-23 15:58Carol Linnitt
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Economic Benefits of Unconventional Gas Drilling Overblown by Industry PR

A new poll suggests that Pennsylvanians are supportive of unconventional gas drilling in their state. Not because it is safe, but because they are convinced the economic benefits outweigh the risks to public health, water supplies and the environment. This kind of reasoning indicates that gas industry rhetoric is having an impact: advertise the benefits, downplay the risks, convince people that you know what you’re doing and there’s nothing to worry about.

And this is just what the industry has done. 

According to the Pittsburgh Tribune-Review, Pennsylvanians are a receptive audience to the extensive public relations campaigns waged by gas interests to confuse the public on the contentious issue of unconventional gas drilling. Between Exxon Mobil’s commercials, Chesapeake Energy’s first-person testimonials from “true Pennsylvanians,” and the Pennsylvania Independent Oil and Gas Association’s billboards lining the highway, industry is leaving no public opinion stone unturned.

Sat, 2011-05-07 09:15Farron Cousins
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West Virginia Congressman Wants EPA To Stop Monitoring Toxic Waste

Republican Representative David McKinley from West Virginia has proposed a bill that would prohibit the Environmental Protection Agency (EPA) from regulating toxic coal ash. The EPA has not yet made a decision on whether or not to classify coal ash as toxic, but reports show that the substance poses significant risks to human health.

McKinley is the sponsor of HR 1391, formally known as Recycling Coal Combustion Residuals Accessibility Act of 2011, a bill that would strip the EPA of their ability to exempt toxic coal ash from the EPA’s “Subtitle C” classification. Subtitle C lays out the guidelines that the agency follows in order to regulate toxic substances from “the cradle to the grave,” meaning that they provide oversight throughout the cycle of any form of hazardous waste. It also gives the agency the authority to conduct periodic inspections of plants producing hazardous wastes, as well as providing states and cities with training programs in how to manage these wastes.

Mon, 2010-11-22 18:55Brendan DeMelle
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Exxon Fracking Fluid Spill In Pennsylvania Dumps Estimated 13,000 Gallons Into Nearby Waterways

XTO Energy, a subsidiary of Exxon Mobil, is under investigation by the Pennsylvania Department of Environmental Protection (DEP) after a 13,000 gallon hydraulic fracturing fluid spill at XTO Energy’s natural gas drilling site in Penn Township, Lycoming County, PA.

The spill was first discovered last week by a DEP inspector who found a valve had been left open on a 21,000-gallon fracking fluid tank, discharging fluid off the well pad into local waterways, threatening a nearby cattle herd that had to be fenced off from the contaminated pasture.  Exxon/XTO has not provided an explanation on why the valve was left open.

“This spill was initially estimated at more than 13,000 gallons by the company and has polluted an unnamed tributary to Sugar Run and a spring,” said DEP Northcentral Regional Director Nels Taber. “There are also two private drinking water wells in the vicinity that will be sampled for possible impacts.”

DEP’s sampling confirmed elevated levels of conductivity and salinity in the spring and unnamed tributary, clear indications that the fracking fluid was present in the waterways.

Thu, 2010-10-07 13:45Jim Hoggan
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Koch-funded Prop 23 Campaign Manufacturing Science

In the latest example of polluter attempts to exert influence over science, the Koch-funded Pacific Research Institute was paid to manufacture another junk science “study” designed to lend credibility to California’s disastrous Proposition 23 ballot measure, an oil industry-backed effort to derail the state’s landmark AB 32 law to fight global warming.

The Yes on 23 campaign, a group launched and funded primarily by three oil companies – Valero Energy, Tesoro Corporation and Koch Industries’ subsidiary Flint Hills Resources - has been meddling in science, much to the liking of its oil industry bankrollers.  Recent financial reports reveal the Yes on 23 campaign has raised more than $5.2 million in the past three months, mostly from the oil companies.

The funding reports reveal payments of tens of thousands of dollars going to researchers at an industry front group well known for ginning up misleading research suggesting that California’s clean energy efforts would kill jobs. 

According to the financial disclosures, the oil-backed campaign paid Pacific Research Institute $40,000, no doubt intended to bolster its efforts to attack California’s AB 32 law. 

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