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Halliburton/Koch Brothers lobbyist has cozy ties with North Carolina’s fracking commission

  • Posted on: 15 May 2014
  • By: JesseColeman

 

Fracking North Carolina:

In North Carolina, Halliburton and other fracking industry interests helped write a fracking chemical disclosure bill.  But when that bill ended up requiring disclosure of harmful chemicals to the state environmental agency, the bill was killed and replaced with one that further limited disclosure of the chemicals used in fracking.

cache of emails obtained by Greenpeace has revealed the cozy relationship between the hydraulic fracturing industry and North Carolina’s Mining and Energy Commission.

The Mining and Energy Commission (MEC) was set up after an errant vote by a state senator legalized fracking in North Carolina. Because the state had not seen oil and gas drilling in recent history, the Mining and Energy Commission was tasked with writing oil and gas regulations, specifically for fracking. The 15 members of the MEC propose regulations for fracking, which are then passed on to the North Carolina legislature to be turned into law.

Emails and meeting schedules from members of the North Carolina’s Mining and Energy Commission reveal how various fracking companies and national lobby groups, including America’s Natural Gas Alliance (ANGA), Energy in Depth (EID), Halliburton, and Koch Industries, influenced the Mining and Energy Commissioners, in regards to disclosure of chemicals used in fracking.

Halliburton’s Hand

Halliburton has played a significant role in shaping potential fracking regulations in North Carolina. In March of 2013, the Commissioners approved a chemical disclosure bill in committee which would have required fracking companies to disclose to the North Carolina Department of Environment and Natural Resources (DENR) the chemical ingredients in fracking fluid, many of which are extremely toxic. However, Halliburton, a major fracking services company, raised some reservations which killed the bill, as AP reporter Michael Biesecker confirmed:

In an interview with AP, Mining and Energy Commission Chairman Jim Womack acknowledged that before deciding to delay the vote, he spoke with a senior Halliburton executive.

Jim Womack
Jim Womack

“They indicated to me in a phone conversation that there may be other options than what was written in that rule,” Womack said.

The bill was taken off the agenda by Womack, and sent back to be rewritten by the chemical disclosure committee.
Commissioner Womack himself is not worried about water contamination from fracking. He once said:

“You’re more likely to have a meteorite fall from the sky and hit you on the head than you are to contaminate groundwater with fracking fluid percolating up from under the ground.”

Halliburton has always cast a long shadow over the MEC. Commissioner Vikram Rao was at Halliburton for over 30 years, ultimately as the company’s Senior Vice President and Chief Technology Officer.  He maintains a significant financial stake in Halliburton, and also has over $10,000 invested in BioLargo, a company involved in disposal of fracking wastewater.

Rao has also called the idea of disclosing the contents of frackfluid “a joke.”

Documents obtained by Greenpeace also reveal that the shale industry was close with one commissioner in particular.

George Howard, the pro-fracking conservationist

George Howard
George Howard

George Howard serves as vice chairman of the MEC, and as the chairman of the chemical disclosure committee, which is tasked with creating regulations for frack fluid and other fracking chemicals. He was appointed by North Carolina’s Senate President Pro-Tem Philip E. Berger to serve in one of two “conservation” slots on the MEC. Berger received $46,700 in campaign contributions from fracking interests between 2009 and 2011.

In his tenure as Mining and Energy Commissioner, George Howard has been a strong proponent of hydraulic fracturing. He has said that public fears around fracking are exaggerated and that responding to public pressure is “pandering.” He has also claimed “it is physically impossible for hydraulic fracturing – the full industry term for fracking – to contaminate underground aquifers.”

In addition to serving as commissioner for the MEC, Howard is the founder and CEO of Restoration Systems, an environmental remediation company. Through Restoration Systems, Howard has a significant financial stake in the fracking industry, including a multi-million dollar shale play project in Pennsylvania. Howard has also invested in the area of North Carolina most likely to be leased by fracking companies.

Howard is connected to other top regulators, especially John Skvarla, the Head of North Carolina’s Department of Environmental and Natural Resources (DENR), who was president of Restoration Systems before becoming an environmental regulator. DENR would be the agency responsible for enforcing fracking laws recommended by the MEC.

Halliburton/Koch Industries Lobbyist Pushed ALEC fracking bill

Documents obtained by Greenpeace include correspondence between George Howard and various representatives of the oil and gas industry during the creation of the first chemical disclosure bill. Howard had multiple meetings with the American Petroleum Institute (API) and spoke with high-ranking members of the American Natural Gas Association (ANGA). Howard specifically requested help from Energy In Depth (EID), an oil and gas front group run by the PR firm FTI Consulting and funded by the fracking industry. Howard asked Steve Everley, the spokesman for EID and an FTI Consulting operative, to help him prepare for a MEC meeting on chemical disclosure.

Bo Heath
Bowen Heath

Although George Howard met with and solicited information from multiple shale industry groups, one lobbyist was particularly influential.  Bowen Heath, who represents Halliburton, Koch Industries, and various other oil and gas interests for the lobbying firm McGuireWoods, had unparalleled access to the Commission. Emails reveal a chummy relationship between George Howard and Heath, who spent evenings together and went for beers in the afternoons.

Heath used that access to advocate for a fracking chemical disclosure system that allows generous exemptions for chemicals that companies deem “trade secrets.”

Heath provided a fracking chemical disclosure bill  to Howard that the shale industry and its political allies previously passed in Colorado. The Colorado bill was based on a model bill from the American Legislative Exchange Council (ALEC), a corporate-funded group dedicated to passing legislation approved by ALEC’s corporate funders, including fracking companies like Chesapeake Energy. Bo Heath has longstanding ties to ALEC, and has attended ALEC annual meetings.

A New York Times investigation found that the Colorado chemical disclosure bill was the handiwork of one ALEC funder in particular, ExxonMobil.

As part of the push for the ALEC fracking bill passed in Colorado, Bo Heath arranged for Colorado ex-governor Bill Ritter to fly down to North Carolina to meet with George Howard and the MEC. The AP confirmed that Ritter’s fees and expenses were not paid by the MEC, and Bo Heath’s lobbying group refused to comment on Ritter’s funding.

Hallmarks of the ALEC fracking bill include generous exemptions from disclosure for “trade secrets,” and reliance on the FracFocus website for disclosing chemicals to the public. FracFocus’s operational costs are paid for by the oil and gas industry lobbying groups American Petroleum Institute (API) and America’s Natural Gas Alliance (ANGA). FracFocus was found to be “severely lacking” as a regulatory tool by a recent Harvard study.

Heath continued to advocate for the industry/ALEC approach to chemical disclosure, and even brought in a key member of FracFocus, Mike Paque. Paque is the executive director of the Ground Water Protection Council (GWPC). The GWPC has long been an ally of the oil and gas industry, receiving funding from the American Petroleum Institute and other industry affiliates. Reports produced by GWPC are the backbone of the oil and gas industry’s claims about the safety of fracking. The GWPC also runs  the FracFocus website, and advocates for its use.

Taking up his drinking buddy's suggestion, George Howard selected Paque as an expert witness for the MEC. Paque presented the industry-funded FracFocus website in an unrecorded meeting on December 18, 2012.

The New Bill Further Limits Disclosure

In the end, even though the bill that George Howard passed through committee was shot down by Jim Womack and Halliburton, it contained most of what Bo Heath and other industry lobbyists wanted. It used the API, ANGA funded website FracFocus for disclosure of chemicals, and exempted chemicals deemed trade secrets from being disclosed to the public on that website. However, Halliburton killed the bill because it required disclosure of all chemicals to the Department of Environment and Natural Resources.

The new bill, which has passed through the MEC committee and is headed for ratification in the State House of North Carolina, included a requirement to use the FracFocus website, following the ALEC fracking model legislation passed in multiple states. And like those states, trade secrets are not disclosed the state, or the public.

Known Associates: 
Industry: 

ALEC is Pushing Climate Denial to Kids in Three More States

  • Posted on: 30 January 2013
  • By: Connor Gibson

Science education is a problem in the United States. Studies consistently show the U.S. ranking poor in science education testing in industrialized countries.

Exxon, Koch Industries, Duke Energy and other profiteers of global warming inaction are not helping. Through the American Legislative Exchange Council, these companies are working to ensure that in certain states, children and young adults will be taught that certain myths are scientifically credible. Steve Horn at DeSmogBlog broke the ALEC connection:

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 states, an undeniable form of "big government" this "free market" organization decries in its own literature.

Each of the three new bills were sponsored by paying ALEC-member legislators - the Arizona bill was exclusively co-sponsored by six ALEC politicians.

The three states considering ALEC's climate denial law are already struggling to teach quality science. While Colorado scores an "average" ranking among states in science education, both Arizona and Oklahoma score "far below average," according to a 2011 ranking by the Statistical Research Center at the American Institute of Physics.

Unfortunately, as this attack on science education is considered in Oklahoma, Colorado and Arizona, there at least four states that already passed the ALEC bill. From DeSmogBlog last March:

First it was Louisiana, back in 2009, then Texas in 2009, South Dakota in 2010 and now Tennessee has joined the club, bringing the total to four U.S. states that have mandated climate change denial in K-12 "science" education. 

It's unfortunate that these students won't be told how much scientific literature concludes that human-induced global warming is occurring:

 

ALEC and the Heartland Institute: Selling Doubt to Students

The Heartland Institute and American Legislative Exchange Council have long been buddy-buddy on rejecting climate science. Heartland is driving much of ALEC's interference policies on climate change with support from other members of ALEC's Energy, Environment and Agriculture task force. An oil industry apologist with ties to both ALEC and Heartland named Sandy Liddy Bourne facilitated the creation of the "Environmental Literacy Improvement Act." DeSmogBlog refreshes our memories:

ALEC's Natural Resources Task Force, now known as its Energy, Environment and Agriculture Task Force, adopted this model at a time when the Task Force was headed by Sandy Liddy Bourne. Bourne, who served in this capacity from 1999-2004, would eventually ascend to the role of Director of Legislation and Policy for ALEC in 2004. 

Upon leaving ALEC in 2006, Bourne become Heartland's Vice President for Policy Strategy. Today she serves as Executive Director of the American Energy Freedom Center, an outfit she co-heads with Arthur G. Randol. Randol is a longtime lobbyist and PR flack for ExxonMobil, a corporation which endowed the climate change denial machine for years.

Heartland's website still lists Bourne as one of its "experts," stating that "Under her leadership, 20 percent of ALEC model bills were enacted by one state or more, up from 11 percent." 

ALEC and Heartland's focus on injecting fossil fuel public relations into science curriculum is picking up where another front group left off. A disbanded organization called the Environmental Literacy Council, set up by the Koch- and Exxon-funded George C. Marshall Institute, was established to be a resource for any teachers willing to misinform their students on climate science.

Unfortunately, Koch, Exxon and ALEC's other supporters seems less interested in maintaining a habitable planet for the upcoming generation and more interested in profiting from their ignorance.

Industry: 

Virginia Clean Energy Under Threat from Cuccinelli, Coal Companies, ALEC and Koch Front Groups

  • Posted on: 30 January 2013
  • By: Connor Gibson

Image credit: ReneweBlog

Virginia Attorney General Kenneth Cuccinelli is working with coal companies and State Policy Network groups backed by Koch Industries to rollback VA's voluntary clean energy program.

In states across the country, the American Legislative Exchange Council--or ALEC--and other State Policy Network groups are lining up to roll back clean energy laws, an effort complimented by captured politicians like Mr. Cuccinelli.

Ken Cuccinelli is a former ALEC member, and he's working with ALEC member company Dominion Resources to end Virginia's clean energy program. The same Dominion that just gave him $10,000 for his run for governor, on top of almost $46,000 in previous years for other political positions.

While Virginia's voluntary renewable portfolio standard is far from perfect, it's neither helpful nor inspiring for Mr. Cuccinelli to scrap the program altogether on behalf of a few vested dirty energy interests.

Rather, as Chesapeake Climate Action Network suggests, Virginia's law needs to be strengthened in ways that increase clean energy production and the good jobs that come with it. Both Cuccinelli and CCAN agree the law has flaws and loopholes that don't properly incentivize new clean energy development within the state of Virginia. Some of the law's weaknesses:

  • Dominion Virginia and Appalachian Power have each qualified for ratepayer subsidies without actually building any new clean energy facilities in Virginia.
  • The law's loose definition of "renewable energy" ensures that filthy energy qualifies for government support, including burning gas collected from landfills and producing energy from trash incineration, which is dirtier than burning coal and are usually located in areas with disproportionately high populations of people living in poverty, often people of color.
  • Unambitious targets for the proportion of renewable energy production by 2025.
  • The program is voluntary in the first place.

So far, Mr. Cuccinelli has not seemed to notice legislation alternatives proposed by CCAN that would "tie any RPS bonuses to investment in Virginia-made wind and solar energy. This solution will ensure that Virginians are getting the benefits of a cleaner environment. It also creates a market that fosters growth in the renewable energy sector which will create thousands of jobs within our borders."

Ken Cuccinelli and Climate Science Intimidation:

The point of making clean energy competitive with dirty fossil fuels is to keep our air and water clean and avoid runaway climate change, an issue where Ken Cuccinelli has been aggressively counterproductive.

Mr. Cuccinelli is well known for his harassment of Michael Mann, a climate scientist vilified by industry apologists for creating the "Hockey Stick" graph illustrating the increase of average global temperature measurements over the last millennium.

Mirroring the scientifically unfounded attacks of State Policy Network outfits like the Competitive Enterprise Institute and American Tradition Institute, Cuccinelli was heavily criticized by a Virginia judge for not having an "objective basis" for accusations of fraudulent research at the University of Virginia. Cuccinelli's persecution of science has even put off other climate science deniers, according to a Greenpeace Freedom of Information Act request.

Demonstrating direct cooperation with Koch-funded State Policy Network groups, Ken Cuccinelli will attend an Americans for Prosperity event in Richmond, VA on February 7. Tea Party activists will be bussed in on the dime of Koch and other AFP donors to hear Cuccinelli speak along with David Koch's top PR captain--AFP president Tim Phillips--and other Virginia politicians like Lt. Governor Bill Bolling.

We'll see if the renewable energy rollback is a point of discussion at AFP's event. Americans for Prosperity has promoted a fossil fuel agenda since David Koch helped re-birth AFP from its predecessor, Citizens for a Sound Economy, which was also run by the Kochs and Koch Industries executive Richard Fink.

Ken Cuccinelli's Dirty Money:

Mr. Cuccinelli's financial conflicts of interest have drawn extra attention to this discussion on Virginia's commitment to renewable energy. Huffington Post reported that Intrust Wealth Management, a company whose board of directors has included Charles Koch since 1982, gave Cuccinelli $50,000 for his failed gubernatorial election bid, on top of a previous $10,000 from Koch Industries. Also on the Cuccinelli payroll were coal interests like Dominion Energy, CONSOL Energy and Alpha Natural Resources (which purchased the mountain top removal menace, Massey Energy).

Mr. Cuccinelli is used to being bankrolled by dirty interests. According to the National Institute for Money in State Politics, from 2003-2011 the following interests were top supporters of his VA Senate and Attorney General election campaigns:

  • COAL MINING AND BURNING$161,796
    • $46,500 from Dominion Resources -- ALEC member
    • $42,000 from Alpha Natural Resources
    • $10,000 from Massey Energy -- merged with Alpha after a fatal mining disaster
    • $33,000 from Consol Energy
    • $16,750 American Electric Power -- ALEC member
    • $6,996 from the Virginia Coal Association
    • $6,550 from Norfolk Southern, a railroad company that transports and markets coal
  • TOBACCO INTERESTS$58,000
    • $24,500 from Altria (owns Phillip Morris) -- ALEC member, ALEC Private Enterprise Board member
    • $10,000 from U.S. Smokeless Tobacco (owned by Altria)
    • $12,500 from Bailey's Cigarettes
    • $11,000 from S&M Brands (owned by Bailey's)
  • GUN LOBBY$17,000
    • $17,000 from the National Rifle Association (many of the illegal guns in this country are from Virginia gun shows) -- ALEC member
  • CORPORATE POLLUTER LOBBYING FIRMS: $19,562
    • $11,250 from Hunton & Williams, a corporate lobbying firm that runs the coal front group Utility Air Regulatory Group (UARG) to interfere with EPA pollution controls. Hunton was also caught up in a scandal to monitor and smear political opponents of Bank of America and the U.S. Chamber of Commerce.
    • $8,312 from Troutman Sanders, a corporate lobbying firm that has recently represented coal and tobacco interests like Duke Energy, the National Mining Association, Southern Company, Peabody Energy, and Altria.

Dirty energy interests like Dominion, AEP, Duke Energy, Peabody and others are using their political allies and groups like ALEC alike to attack renewable energy across the board, in coordination with a familiar public relations play that victimizes dirty coal operations and mocks all forms of clean energy.

Coal pollution from companies like these prematurely kill thousands of Americans each year. The Clean Air Task Force notes that government action to reduce coal pollution has a direct effect on reducing these needless deaths. A peer-reviewed report by the late Paul Epstein in the Annals of the New York Academy of Sciences estimated up to $500 billion--half a trillion dollars--in annual costs to society from the life cycle of coal.

Clean energy generation doesn't pose the same terrible threats to our economy, air, water, health, and the global climate that life on this planet is adapted to, but good luck telling that to Ken Cuccinelli, another politician captured by the pollution lobby.

Industry: 

ALEC EXPOSED: Polluter Front Group's Dirty Secrets Revealed

  • Posted on: 18 July 2011
  • By: Connor Gibson

Crossposted from Greenpeace USA.

As revealed by The Nation and hosted by the Center for Media and Democracy’s new ALEC Exposed website, today marks a breakthrough in democratic transparency with the release of over 800 internal documents created by the American Legislative Exchange Council, or ALEC.

Who is ALEC?

Greenpeace has tracked the American Legislative Exchange Council and its role in the climate denial machine, along with the money it receives from polluters including Koch Industries and ExxonMobil to peddle doubt over established conclusions of climate scientists. Check out some of ALEC’s climate denier deeds at ExxonSecrets.


ALEC links state legislators with some of corporate America's largest and most dubious players—Exxon, Koch, coal giant Peabody Energy, and Reynolds Tobacco for example—to create model state legislation. State legislators who pay a small fee to become ALEC members are granted access to a large pool of draft bills and resolutions created by representatives of the corporate giants who finance ALEC, some of which also help govern the organization. ALEC creates a cover for state legislators who ultimately benefit from ALEC’s corporate supporters without having to disclose who pays for the corporate-handout policies they push in state houses across the country.

The Nation's John Nichols explains the ALEC agenda:

"ALEC's model legislation reflects long-term goals: downsizing government, removing regulations on corporations and making it harder to hold the economically and politically powerful to account. Corporate donors retain veto power over the language, which is developed by the secretive task forces. The task forces cover issues from education to health policy. ALEC's priorities for the 2011 session included bills to privatize education, break unions, deregulate major industries, pass voter ID laws and more. In states across the country they succeeded, with stacks of new laws signed by GOP governors like Ohio's John Kasich and Wisconsin’s Scott Walker, both ALEC alums."

ALEC's Dirty Assault on Environmental Causes

ALEC has long served corporate polluters in attacking or preempting environmental protections through state laws. A revealing article in Grist linked legislative repeals from the Regional Greenhouse Gas Initiative (RGGI) to ALEC's draft legislation, offering polluters like Koch Industries another avenue of attack to bolster the work of other front groups, including Americans for Prosperity's pressure on states participating in RGGI. Center for Media and Democracy Executive Director Lisa Graves and The Nation have more details on the connection between Koch Industries and ALEC.

The over 800 internal documents revealed at ALEC Exposed brings other laws drafted by and for corporate polluters to light. Examples include:

• A 2010 resolution [PDF] resisting long-overdue EPA classification of coal ash as hazardous material. Coal ash is a leftover product from burning coal containing neurotoxins, carcinogens and radioactive elements—not the type of material that should be less regulated than household garbage (as it currently is).
 
• A 2009 resolution to dodge federal oversight of hydraulic fracturing [PDF] for natural gas by promoting state-level regulation of hydrofracking. New York Times reporting has shown state fracking regulations are notably insufficient. Currently, the private sector chairs of ALEC's Energy, Environment and Agriculture Task Force are Tom Moskitis of the American Gas Association and Martin Schultz, a lobbyist for a large firm representing dozens of corporate heavyweights including the U.S. Chamber of Commerce, Warren Buffet's Berkshire Hathaway and oil supermajor ConocoPhillips.
 
• A 2008 resolution [PDF] to challenge the federal offshore drilling moratorium, which ignores the reality that offshore drilling won’t reduce gas prices. ALEC’s [Exxon-funded] language uses the American taxpayer as an excuse to push for more dangerous offshore drilling even as giant oil companies like Exxon take billions in taxpayer subsidies and make record profits. Currently, the private sector chair of ALEC's Civil Justice task force (which adopted the resolution) is Victor Schwartz of Shook, Hardy & Bacon, a law firm representing Peabody and the U.S. Chamber of Commerce.
 

The range of ALEC's model legislation provides a historical record of the most aggressive efforts to combat environmental protection. A resolution from 1998 getting states to oppose the Kyoto protocol [PDF] apparently passed in ten states and was introduced or passed by one legislative chamber in another ten states, according to an ALEC speech transcript. A resolution from 2002 shows ALEC’s role in early efforts to hijack chemical security legislation. After the U.S. Senate adopted a bill (S.1602) in July, 2002 that would have conditionally required the use of safer processes at high risk chemical plants, ALEC fought back, approving a Resolution in Opposition to S. 1602 [PDF] a month later. That fall, the chemical security bill fell on its face.

More to Come...

Greenpeace is continuing to research the contents of ALEC's documents. ALEC's template environmental bills repeatedly attack clean energy, push the most dangerous and dirty fossil fuel developments and try to roll back safeguards that reduce pollution. We will continue to update you on what we find.

Industry: