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Martin O'Malley's Dark Money Group has Secret Meeting with Fracking Lobbyists

  • Posted on: 28 May 2014
  • By: JesseColeman
Martin O'Malley at a newDEAL meeting

Last week in Washington DC, Maryland Governor Martin O’Malley’s political dark money group met with corporate funders at the DC headquarters of the American Natural Gas Alliance (ANGA). ANGA is the lead lobby group for the fracking and shale industry, with a budget of $69 million in 2012. O’Malley’s group is called newDEAL, which describes itself as a “national network searching the country for state and local elected leaders who are pro-growth progressives to help them share their innovative ideas.” I found out about the meeting when I was forwarded an invitation. When I replied to a RSVP, I was initially sent a welcoming “see ya there” from Lauren Wessler, the organizer for the event. Wessler works for Helen Milby, who runs HM&CO, a fundraising group that connects corporations with legislators. Her work has been described as “To communicate behind the scenes with power brokers in government and in the corporate world, and create events so that they can come together to make exchanges of money and influence.” O’Malley created newDEAL with Alaska Senator Mark Begich, and the group is co-chaired by democratic politicians Cory Booker, and CO Governor John Hickenlooper. They bill themselves as “pro-growth” democrats, but an expose by Lee Fang in Vice revealed that newDEAL was funded by some of the largest corporations in the US, the same corporations that provide the majority of funding to republican politicians. newDEAL funders include Comcast, Fluor, Merck, Microsoft, New York Life, Pfizer, Qualcomm, Verizon, Wal-Mart, the Private Equity Growth Capital Council, among others, including, of course, the host of Tuesday's event, ANGA. Given the corporate connection, the newDEAL is an attempt to grow O’Malley and company’s political war chests with corporate dollars, more “deal” than “new.” A few hours after receiving confirmation of my RSVP, another email buzzed into my inbox from Lauren. Apparently she had made a mistake. “The room seats less people than I originally thought…So sorry,” read her retraction of my RSVP. Sounds fishy, but OK. Maybe there just isn’t enough space at the largest fracking lobbyists’ headquarters for a researcher from Greenpeace. But there are always those people who RSVP and don’t show, so I went to ANGA the day of the event, just in case they could squeeze me in. The O’Malley connection to ANGA is particularly interesting given the battle the gas industry is waging in his state. Fracking is still being studied in Maryland, and drillers have not yet started exploiting the shale that lies under parts of the state. Maryland is also home to Cove Point, a proposed Liquified Natural Gas export plant. The plant will be the 3rd LNG export plant fully permitted in the US according to most analysis. Cove Point was just conditionally approved by FERC, which just released an Environmental Impact Statement. FERC’s statement has been roundly criticized for missing key elements, such as climate impacts, community safety, marine impacts, and fracking.

Cove Point LNG

Cove Point has been particularly controversial because it would be located in a populated, residential area on the coast of Maryland. Assistant fire chief for the area Mickey Shymansky resigned after calling attention to the fire department’s inability to control a disaster at the plant. So, what does O’Malley’s financial relationship with ANGA change about the future of fracking and gas exports in Maryland? Alas, we were unable to find out. When I arrived at ANGA’s headquarters I told them my name and showed them my RSVP. The front desk person gave me a leery eye, and within minutes a large man named Pablo came out of an elevator bank and walked up to me. “You have to leave the premises.” he said. Why? I asked “They said that if you come in we aren’t allowed to let you up” He said. “Who is they?” I asked. “You know who” he said. “America’s Natural Gas Alliance?” “Yes” Pablo said “But I have an RSVP, did they say my name specifically” “yes” he said. O’Malley and company plan on using newDEAL to fund campaigns of like minded politicians, basically creating a money laundering dark money pipeline from corporate interests to campaign coffers. As Ruth Marcus said in her Washington Post editorial last week:

Big money is troubling; secret money is toxic. Having millions of dollars from outside groups pumped into elections distorts the democratic process. Not knowing what interests are behind those millions magnifies that distortion.

The Center for Responsive Politics estimates that the 2012 election saw more than $250 million in political spending by nonprofit groups organized under 501(c)(4) of the Internal Revenue Code, up from $86 million in 2008 and $3 million in 2004. Wonder how many of those millions was from the shale industry, looking to open Maryland for drilling? Or Wal-Mart, trying to erode minimum wage? Or Wall Street making sure limits on risky banking will not be enforced?

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ALEC, CSG, ExxonMobil Fracking Fluid "Disclosure" Model Bill Failing By Design

  • Posted on: 4 December 2012
  • By: Connor Gibson

Written by Steve Horn, crossposted from DeSmogBlog.

Last year, a hydraulic fracturing ("fracking") chemical fluid disclosure "model bill" was passed by both the Council of State Governments (CSG) and the American Legislative Exchange Council (ALEC). It proceeded to pass in multiple states across the country soon thereafter, but as Bloomberg recently reported, the bill has been an abject failure with regards to "disclosure."

That was by design, thanks to the bill's chief author, ExxonMobil

Originating as a Texas bill with disclosure standards drawn up under the auspices of the Obama Administration's Department of Energy Fracking Subcommittee rife with oil and gas industry insiders, the model is now codified as law in Colorado, Pennsylvania, and Illinois.

Bloomberg reported that the public is being kept "clueless" as to what chemicals are injected into the ground during the fracking process by the oil and gas industry.

"Truck-Sized" Loopholes: Fracking Chemical Fluid Non-Disclosure by Design 

"Drilling companies in Texas, the biggest oil-and-natural gas producing state, claimed similar exemptions about 19,000 times this year through August," explained Bloomberg. "Trade-secret exemptions block information on more than five ingredients for every well in Texas, undermining the statute’s purpose of informing people about chemicals that are hauled through their communities and injected thousands of feet beneath their homes and farms."

For close observers of this issue, it's no surprise that the model bills contain "truck-sized" loopholes

"A close reading of the bill...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," The New York Times explained back in April.

Disclosure Goes Through FracFocus, PR Front For Oil and Gas Industry

The model bill that's passed in four states so far mandates that fracking chemical fluid disclosure be conducted by FracFocus, which recently celebrated its one-year anniversary, claiming it has produced chemical data on over 15,000 fracked wells in a promotional video

The reality is far more messy, as reported in an August investigation by Bloomberg

"Energy companies failed to list more than two out of every five fracked wells in eight U.S. states from April 11, 2011, when FracFocus began operating, through the end of last year," wrote Bloomberg. "The gaps reveal shortcomings in the voluntary approach to transparency on the site, which has received funding from oil and gas trade groups and $1.5 million from the U.S. Department of Energy."

This moved U.S. Representative Diana DeGette (D-CO) to say that FracFocus and the model bills it would soon be a part of make a mockery of the term "disclosure."

"FracFocus is just a fig leaf for the industry to be able to say they’re doing something in terms of disclosure," she said.

"Fig leaf" is one way of putting it.

Another way of putting it is "public relations ploy." As Dory Hippauf of ShaleShock Media recently revealed in an article titled "FracUNfocusED," FracFocus is actually a PR front for the oil and gas industry.

Hippauf revealed that FracFocus' domain is registered by Brothers & Company, a public relations firm whose clients include America’s Natural Gas Alliance, Chesapeake Energy, and American Clean Skies Foundation - a front group for Chesapeake Energy. 

Given the situation, it's not surprising then that "companies claimed trade secrets or otherwise failed to identify the chemicals they used about 22 percent of the time," according to Bloomberg's analysis of FracFocus data for 18 states.

Put another way, the ExxonMobil's bill has done exactly what it set out to do: business as usual for the oil and gas industry.

Image Credit: ShutterStockbillyhoiler

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