Showing posts with label Subsidies. Show all posts
Showing posts with label Subsidies. Show all posts

Sunday, June 7, 2015

Lawsuit: Gov't Must End Offshore Fracking Secrecy


  Louisiana blow out after a Fracking attempt went wrong

Lawsuit Forces Government To Disclose Extent Of Offshore Fracking In Gulf of Mexico



In August of last year, 21.6 million acres of the Gulf of Mexico were auctioned off to the dirty energy industry so that they could expand their offshore fracking activities in an area that was still reeling from the effects of the 2010 Deepwater Horizon oil spill.

As DeSmog’s Steve Horn reported at that time, many of the leases sold by the government in August were located in the Lower Tertiary Basin, an area defined by hard-to-penetrate rock where the crude is located in deep water, making the practice of hydraulic fracturing exceptionally risky and prone to environmental disaster.

It wasn’t until the lease sale that the media — and the American public — became painfully aware of the fact that we know so little about what the industry is actually doing in the Gulf of Mexico. It was this lack of knowledge that led the Center for Biological Diversity to file a lawsuit against the government to compel them to release that info.

This past week, that lawsuit was settled in Washington, and now the government will have to reveal the extent of fracking activities in the Gulf of Mexico.

From a CBD press release announcing the settlement:

Offshore fracking has been shrouded in secrecy, but this settlement will finally force the government to tell us where oil companies are using this toxic technique,” said Kristen Monsell, a Center attorney. “Fracking pollution is a huge threat to marine animals, and the high pressures used to frack offshore wells increase the risk of another devastating oil spill. This inherently dangerous activity just doesn’t belong in the Gulf of Mexico.”

So far, we know that at least 115 offshore fracking wells are currently in operation in the Gulf, but the settlement will force the government to disclose the number of operations, the companies that have obtained leases, and the extent of chemical dumping from fracking activities.

The industry is currently allowed to dump fracking wastewater that is laced with fracking chemicals directly into the fragile Gulf ecosystem, and the lawsuit will unfortunately not be changing that practice. But what will change is that the public will learn who is dumping and where they are dumping, which could easily open companies up to liability lawsuits if they cause harm to the environment or to Gulf Coast residents. In short, the lawsuit brings us some much-needed liability and accountability.

Again, the Gulf of Mexico’s ecosystem is still a shambles as a result of BP’s 2010 oil spill, and the increase in fracking operations in the Gulf, and the subsequent dumping of chemicals into the waters, is only going to make things worse. And fracking operations are only expected to increase, as Mike Ludwig from Truthout points out:

Industry officials have also said they plan to increase the use of fracking techniques to exploit wells in deep Gulf waters, and with more than 4,000 platforms in the region, the Center claims that the scope offshore fracking could be “staggering.”

Map showing density of off shore oil platforms in Gulf Coast region. Image here:

Without meaningful change, the Gulf of Mexico is set to become a wasteland due to the actions of the dirty energy industry. Policy changes from the highest level are the only way to help restore the Gulf, but as long as campaign money continues to flow, it is becoming increasingly unlikely that we’ll see a ban on offshore fracking in the near future.


Friday, May 15, 2015

Three Oil Projects Cost Taxpayers Almost $2 Billion in Subsidies; Oil Train Safety Rules Challenged

Three Oil Company Projects Cost Taxpayers Almost $2 Billion in Subsidies

It’s no secret that the fossil fuel industry and the government are horribly intertwined, but a recent investigation by The Guardian reveals just how codependent their relationship really is and just now much it’s costing American taxpayers.

The Guardian examined three specific projects — one each run by Shell, ExxonMobil, and Marathon Petroleum — and found that all three corporations benefited from huge tax subsidies granted, of course, “by politicians who received significant campaign contributions from the fossil fuel industry.

Specifically, the investigation found that:
  • A proposed Shell petrochemical refinery in Pennsylvania is in line for $1.6 billion in-state subsidy, according to a deal struck in 2012 when the company made an annual profit of $26.8 billion.
  • ExxonMobil’s upgrades to its Baton Rouge refinery in Louisiana are benefiting from $119 million of state subsidy, with the support starting in 2011, when the company made a $41 billion profit.
  • A jobs subsidy scheme worth $78 million to Marathon Petroleum in Ohio began in 2011, when the company made $2.4 billion in profit.
Overall, these three projects cost taxpayers nearly $2 billion. There is no reason the government should be giving these hugely successful corporations such huge tax breaks, especially when considering the amount of environmental damage oil production and consumption causes.

“Subsidies to fossil fuel companies are completely inappropriate in this day and age,” Oil Change International’s executive director Stephen Kretzmann. “Climate science is clear that the vast majority of existing reserves will have to stay in the ground, yet our government spends many tens of billions of our tax dollars – every year – making it more profitable for the fossil fuel industry to produce even more.”

Unfortunately for Kretzmann — and the Earth, the politicians doling out these gigantic tax subsidies deny climate change is real and man-made, or at least they publicly say they are. Admitting that it’s real and problem would definitely have an effect on campaign contributions from the fossil fuel industry.

“Big oil, gas, and coal have huge influence on politicians and governments and they get that influence the old fashioned way — they buy it,” said Kretzmann. “Through campaign finance, lobbying, advertising, and super [political action committee] spending, the industry has many ways to influence candidates and government officials seeking re-election.”

“Every single well, pipeline, refinery, coal and gas plant in the country is heavily subsidized. Big Fossil’s lobbyists have done their jobs well for the last century.”

Click here to read The Guardian’s full investigation.

U.S. green groups sue in challenge to oil train safety rules



Saturday, January 24, 2015

NM Crude Facility Delayed Despite Taxpayer Funds for BNSF

 Why should a profitable company look for taxpayer subsidies??

NGL Offers Reason for Construction Delay

By Rosanne Boyett    Cibola Beacon     01/23/15

MILAN – Village of Milan received notification early last week that NGL has delayed the construction of its $50 million project.

"NGL Energy Partners, LP confirmed today that the start of construction for its crude-by-rail loading facility in Milan, N.M., has been pushed back by between two to three months because of delays in receiving certain authorizations.  A revised start date for construction is under evaluation," said Project Manager Greg Staff in a Jan. 19 email. (The project manager’s office is located in Houston, Texas.)

“I told the Board of Trustees during last week’s closed session that the project has been put on hold because of the crude oil market,” said Bruce Boyton, Village legal counsel. “Hopefully it has been delayed for only a short time.”.....

...The company received a Local Economic Development Act grant from the State last year. Governor Susana Martinez made the $1.2 million award during the Oct. 16 ceremony at the Village Hall.
Eileen Chavez Yarborough, Cibola Communities Economic Foundation executive director, had been instrumental in assisting with the NGL application for the LEDA grant. The award was designed to provide funding for upgrades to the Burlington Northern Santa Fe Railroad crossing at Mill Road. “I have not received an official response from the State about how the project’s delay will affect the LEDA funding,” she said on Tuesday.

Boynton noted, “My understanding is that the LEDA funds must be used before the end of the current fiscal year, which is June 30.”.....    more here


Thursday, January 15, 2015

The Methane Monster; FOIA requests target Oil agencies and lobbyists

  Image: Icy waters, rising steam, gas jets via Shutterstock

The Methane Monster Roars

13 January 2015      By Dahr Jamail,   Truthout

.... Vast amounts of methane lie frozen in the Arctic. It's not news that the Arctic sea ice is melting rapidly, and that it will likely be gone for short periods during the summers starting as early as next year. Losing that ice means releasing larger amounts of previously trapped methane into the atmosphere.

Additionally, lying along the Arctic's subsea continental margins and beneath Arctic permafrost are methane hydrates, often described as methane gas surrounded by ice. In March 2010, a report in Science indicated that these cumulatively contain the equivalent of 1,000 to 10,000 gigatons of carbon.

For perspective, humans have released approximately 1,475 gigatons in total carbon dioxide since the year 1850.

"What happens in the Arctic does not stay in the Arctic."

Beckwith warns that losing the Arctic sea ice will create a state that "will represent a very different planet, with a much higher global average temperature, in which snow and ice in the northern hemisphere becomes very rare or even vanishes year round."....     more here


Groups Questions Industry Influence on Oil Train Safety Rules

Freedom of Information Requests Target Five Federal Agencies, Nearly 100 Lobbyists

Jan 15, 2015    Eddie Scher,      Forest Ethics

[Bellingham, WA] Today four public interest groups requested records exchanged between five US government agencies and nearly 100 oil and rail industry representatives on new oil train safety standards. The Department of Transportation announced yesterday that the agency would miss the January 15 deadline set by Congress and issue final rules by May 12, 2015.

“New oil train safety standards are decades late: the National Transportation Safety Board first called antiquated DOT-111 tank cars unsafe for hauling crude oil in 1991,” says Ross Hammond, ForestEthics US campaigns director. “But the administration seems to have trouble asking the oil and rail industry for common sense safety standards like speed limits, sharing information with firefighters, and a ban of the most dangerous cars.”

The Freedom of Information Act requests ......name 97 individual lobbyists from the American Petroleum Institute, Association of American Railroads and specific oil and rail companies, including Chevron, Tesoro, and Burlington Northern Santa Fe (BNSF). Among the lobbyists named are six former members of Congress: Trent Lott, Vin Weber, John Breaux, Steve LaTourette, Max Sandlin and Bill Lipinski.

“The public has the right to know how an army of lobbyists is influencing the Department of Transportation,” says Ross Hammond, ForestEthics......     more here

Links:

New Death Count Projections for Bakken Oil Train Disasters?

CP Rail delayed reporting Glacier National Park derailment

Overnight train derailment blocks Cheney-Spokane Rd.