Archive for the ‘Politics’ Category

State of the Union: Obama promotes natural gas, but is the shale-gas drilling boom a ‘bridge to nowhere’?

Wednesday, January 25, 2012


During his State of the Union address last night, President Obama made a huge point of promoting natural gas, while also trying to appear concerned about any potential impacts from drilling. Here’s what he said:

We have a supply of natural gas that can last America nearly 100 years.  And my administration will take every possible action to safely develop this energy.  Experts believe this will support more than 600,000 jobs by the end of the decade.  And I’m requiring all companies that drill for gas on public lands to disclose the chemicals they use.   Because America will develop this resource without putting the health and safety of our citizens at risk.

The development of natural gas will create jobs and power trucks and factories that are cleaner and cheaper, proving that we don’t have to choose between our environment and our economy.   And by the way, it was public research dollars, over the course of 30 years, that helped develop the technologies to extract all this natural gas out of shale rock –- reminding us that government support is critical in helping businesses get new energy ideas off the ground.

The president didn’t mention the recent downsizing of government estimates of the Marcellus Shale gas play, which we covered the other day here.  But perhaps more importantly, President Obama didn’t mention at all the very vigorous scientific debate over whether natural gas really improved greenhouse gas emissions compared to coal. We’ve covered that issue before here, here, here and here. And it’s worth noting that there’s been another paper published criticizing Cornell scientist Robert Howarth’s work on this issue and a reply by Howarth that vigorously defends his original conclusion:

We believe the preponderance of evidence indicates shale gas has a larger GHG footprint than conventional gas, considered over any time scale. The GHG footprint of shale gas also exceeds that of oil or coal when considered at decadal time scales, no matter how the gas is used. Considered over the century scale, and when used to generate electricity, many studies conclude that shale gas has a smaller GHG footprint than coal, although some of these studies biased their result by using a low estimate for GWP and/or low estimates for methane emission. However, the GHG footprint of shale gas is similar to that of oil or coal at the century time scale, when used for other than electricity generation. We stand by the conclusion: “The large GHG footprint of shale gas undercuts the logic of its use as a bridging fuel over coming decades, if the goal is to reduce global warming.”

(more…)

How many jobs would a ‘cracker’ plant create?

Thursday, January 12, 2012

Gov. Earl Ray Tomblin waves to the crowd Wednesday, Jan. 11, 2012 prior to delivering his state of the state address at the Capitol in Charleston, W.Va. (AP Photo/Jeff Gentner)

Gov. Earl Ray Tomblin focused attention during last night’s State of the State address on his administration’s efforts to land a “cracker” plant that would create spin-off jobs based on the boom in natural gas drilling in the Marcellus Shale fields across West Virginia. The governor promised:

I will do everything in my power to make sure that West Virginia is positioned to take full advantage of this opportunity. I will not limit our efforts to just one project or even two. We will compete for every project — every dollar of investment and every new job that relies on the natural resources with which we have been so blessed.

Among other things, Gov. Tomblin said he plans to introduce legislation “to further refine our incentives in a fashion I believe will strengthen our competitiveness,” a proposal that the West Virginia Center for Budget and Policy have already explained is based on pretty questionable math.

But the governor also made this statement in his speech:

The American Chemistry Council estimates that we could create an additional 12,000 manufacturing jobs in West Virginia with the construction of an ethane cracker.

Now, when you think of manufacturing jobs, you think of pretty darned good jobs, right? Overall, the manufacturing sector in West Virginia pays about a third more in weekly wages than the private sector as a whole.

But Gov. Tomblin got this one wrong … Take a look at this two-page summary put together to describe the calculations the American Chemistry Council did of the economic impact of locating a cracker plant in West Virginia (for that matter, take a look at this fancier one-pager put together by the council’s communications department).

Table 1 outlines the estimated ongoing (permanent) jobs that might be created if a company invests $3.2 billion in a major cracker facility here: About 12,300 total jobs. That figure includes 2,500 direct jobs, 6,300 indirect jobs and 3,500 induced jobs. As Kevin Swift, the council’s chief economist, just explained to me, that total number of jobs — the 12,000 figure the governor cited in his speech on statewide television and radio, before a joint session of the Legislature — includes all manner of jobs. It is not only direct manufacturing jobs, but positions with suppliers and support industries — everything from a waitress at a new cafe across the road from the plant to a doctor who starts a practice to serve residents in a growing community.

But they’re not all manufacturing jobs, and the ACC study doesn’t provide more detail that would give a clearer picture of how many jobs in various sectors with various levels of pay and benefits might be includes. You can get perhaps a bit more information by looking at the average wages for each category — $112,000 annually for direct jobs and $34,000 for indirect. But that’s a basic average, and may not tell the whole story.

For those who want to understand the methodology of the industry study, you might check out this more detailed analysis that looks more broadly at impacts from expansions of the chemical industry associated with the natural gas boom and any accompanying cracker plants. It’s also worth remembering that these industry-produced studies are not necessarily the most helpful source for these sorts of projections, as we’ve reported before here.

Industry letter outlines opposition to Marcellus bill

Thursday, November 10, 2011

When I was talking with Delegate Tim Manchin, D-Marion, earlier this week about the Marcellus Shale drilling bill (see here and here), he said one of the biggest problems for lawmakers and staff has been that industry lobbyists kept declining for months to put their concerns about specific language — or proposals for improvement — in writing.

But Delegate Manchin did mention that the West Virginia Oil and Natural Gas Association had recently sent lawmakers a short letter outlining some specific objections to language added to the legislation by a special interim committee. So I thought we’d post that letter here so everyone can give it a read. Among the industry’s objections:

– A buffer zone of 1,000 feet (as originally proposed, but reduced by the committee to 625 feet) between homes and wells “will cause very significant portions of the state to become off-limits to drilling thereby sterilizing many resources.”

– The “casing and cementing requirements” should be left to the state Department of Environmental Protection to write during rulemaking, rather that specifically set by lawmakers. The industry letter says:

It appears that the drafters of the amendment essentially borrowed the language from Pennsylvania regulations that were finalized after considering around 2,000 comments. West Virginians deserve the same opportunity to participate in a rulemaking process rather than having the Legislature serve in the rulemaking capacity.

– Requiring public notices of new permit applications to be published in the newspaper “will result in obstructing the well permit application process.”

– Proposed permit fee increases to fund additional inspectors send “a clear message to the industry that “West Virginia is an uncompetitive business environment.”

The letter concludes:

It is WVONGA’s view that the adopted and pending amendments do not advance the cause of promoting the development of our natural resources while at the same time ensuring long-term protection of the environment.

Lawmakers have postponed a scheduled Sunday committee meeting on the bill, instead setting a meeting for 8 a.m. Monday. Stay tuned …

Report: Industry spent $747 million on 10-year campaign to protect gas fracking from regulations

Thursday, November 10, 2011

Here’s the latest from a new report today from Common Cause:

Natural gas interests have spent more than $747 million during a 10-year campaign – stunningly successful so far – to avoid government regulation of hydraulic “fracking,” a fast-growing and environmentally risky method of tapping underground gas reserves.

A faction of the natural gas industry has directed more than $20 million to the campaigns of current members of Congress and put $726 million into lobbying aimed at shielding itself from oversight, according to the report, the third in a series of “Deep Drilling, Deep Pockets” reports produced by the non-profit government watchdog group.

“Players in this industry have pumped cash into Congress in the same way they pump toxic chemicals into underground rock formations to free trapped gas,” said Common Cause President Bob Edgar. “And as fracking for gas releases toxic chemicals into groundwater and streams, the industry’s political fracking for support is toxic to efforts for a cleaner environment and relief from our dependence on fossil fuels.”

The report explains:

… The industry’s political giving also heavily favors lawmakers who voted  in favor of the 2005 Energy Policy Act, which exempted fracking from regulation under the Safe Drinking Water Act. Current members who voted for the bill received an average of $73,433, while those who voted against the bill received an average of $10,894.

If you’re wondering, Rep. Shelley Moore Capito, R-W.Va., led our state’s delegation with $144,603 in campaign donations from the industry. Sen. Jay Rockefeller, D-W.Va., received $93,150. Both voted in favor of exempting fracking from the Safe Drinking Water Act, according to Common Cause. Rep. Nick J. Rahall, D-W.Va., received $56,850, but voted against the loophole. Sen. Manchin and Rep. McKinley were not in office at the time.

Tomblin and Marcellus: Attacking environmental protection at a press conference announcing new environmental protection rules on drilling?

Tuesday, July 12, 2011

West Virginia Sen. President Earl Ray Tomblin, acting as governor, just finished a press conference called to announce his administration’s plan for emergency regulations governing Marcellus Shale gas drilling. Tomblin said:

This executive order is the first step in my long-term plan to ensure responsible development of Marcellus Shale. The good-paying jobs predicted with this development must include the protection of our public’s health and safety as well as that of our environment. I want to thank our citizens who have voiced their concerns about Marcellus Shale drilling and want to assure them that I recognize this emerging segment of the natural gas industry warrants my immediate attention to ensure responsible development.

The first thing worth knowing about the event is that Mr. Tomblin spent quite a bit of his introductory remarks — at an event he called to announce his plan for protecting the environment — criticizing efforts to protect the environment.  Perhaps when he’s acting as governor, Mr. Tomblin just can’t possibly pass up any opportunity to attack the U.S. Environmental Protection Agency’s efforts to limit the damaging impacts of mountaintop removal mining. He took time out from talking about Marcellus drilling to say:

… They have allowed the EPA to spent out of control. Because of their over-reaching rulemaking, the EPA is killing jobs, which is hurting the economy of America. Washington … needs to take control of the EPA before it does further damage.

Also fascinating is that the acting governor’s executive order directing WVDEP to promulgate emergency rules was made available on the website of a gas industry group’s website well before it was posted on any of the state government’s sites.

You have to wonder if citizens and environmentalists who are concerned about the industry and its political influence will find this very comforting as they review what Tomblin and the WVDEP are proposing.

Among the items that are to be included in the WVDEP’s emergency rules:

– Erosion and sediment control plans for certain drilling permits would have to be certified by a registered professional engineer. Larger sites would have to be  constructed under an engineer’s supervision;

– All well permits applications must specify the amount of water to be used in drilling and fracturing, and larger operations must submit formal “water management plans”;

– Any permit applications for drilling within a municipality or within a one-mile radius of any municipality must publish a public notice of their permit application.

(more…)

Tomblin reschedules Marcellus task force meeting

Wednesday, April 27, 2011

Senate President Earl Ray Tomblin, acting as governor, has rescheduled the first meeting of his “Marcellus to Manufacturing Task Force” for next week. From the online meeting list at the Secretary of State’s office:

Date of Meeting: May 4, 2011

Time of Meeting: 10:30 AM

Location:

West Virginia Technology Park

2001 Union Carbide Drive Building 2000

Room 1220

South Charleston, West Virginia

The notice also said:

Discuss organizational matters; Review Executive Order No. 1-11 and duties of Task Force; Consideration of matters related to ethane and natural gas extracted from the Marcellus Shale in West Virginia; Discussion of ethane, ethane conversion facilities and ethylene generally; Discussion of available resources in West Virginia that could be utilized to promote investment in ethane to ethylene conversion facilities; Discussion of potential economic impact of ethane conversion facility locating in West Virginia; Formation of Task Force Subcommittees and related matters; Consideration and adoption of meeting procedures; Discussion related to formation of a comprehensive Marcellus to Manufacturing Action Plan generally; Consideration of other matters related generally to the foregoing. An agenda will be available three days prior to the meeting in Room M-146, Office of General Counsel, Office of the Governor, 1900 Kanawha Boulevard, East, Charleston, West Virginia.

UPDATED: Tomblin cancels Marcellus meeting

Monday, April 25, 2011

UPDATED: Just heard from Kurt Dettinger, general counsel for the governor’s office, and he informed me that they’ve called off tomorrow’s task force meeting, citing the inadequate public notice.

“It was determined that we needed to give more notice,” Dettinger said. The meeting will be rescheduled for early May, Dettinger said.

—————————————————————————-

It’s been more than two months since Senate President Earl Ray Tomblin, acting as governor, created a “task force”  to encourage further development of the Marcellus Shale and to try to lure spin-off industries into West Virginia.

That group appears to be actually starting to get down to work, with a meeting scheduled for tomorrow at the Capitol … Interestingly, the meeting is being billed — and was filed with the Secretary of State’s office — as an “emergency meeting.”

That designation allowed the governor’s office to avoid the five-day-in-advance public notice requirement when the meeting hit the State Register on Friday.

But is this really an emergency meeting?

Under state law, such meetings may be held only when there is some facts or circumstances “requiring immediate official action,” and those “facts and circumstances” must be spelled out in the meeting notice.

In this instance, the task force says it is having an emergency meeting “to discuss organizational matters.”  There is no mention of a need for immediate government action …

The meetings is set for 2 p.m. in the Governor’s Cabinet and Conference Room.

GOP candidates on Marcellus Shale drilling

Monday, April 25, 2011

The Associated Press had a story over the weekend about the differing views of various candidates for governor of West Virginia about Marcellus Shale drilling … and the Sunday Gazette-Mail included the following questions and answers from the candidates on the issue:

Do you believe West Virginia needs new regulations for oil and gas drilling? If so, what specific requirements should be in the legislation?

– Clark S. Barnes:

We must address: Surface owners’ rights, protection of the aquifer which residents depend upon for their personal needs and for livestock use, the amount and location of water removal needed for the drilling and “fracking” process and, the disposal of chemically treated fluids used in the drilling process.

– Mitch B. Carmichael:

I believe that existing regulations for oil and gas drilling are working well. I do support additional DEP inspectors to ensure that regulations are enforced, water supplies are pure, and surface owners are protected.

– Ralph William “Bill” Clark:

We need lower corporate taxes and a competitive severance tax for energy companies, to guarantee profitability, but higher permit fees to pay for more inspectors. We must protect water quality and quantity and surface owners’ rights — now and for the future — and require disclosure of chemicals used in the fracturing process.

– Larry Faircloth:

While capitalizing on natural resources, the environment and property rights must be respected. As governor I will introduce legislation to protect landowners, water systems, rivers and streams as we explore for and extract oil and gas reserves.

– Betty S. Ireland:

– Predictable regulatory process

– Responsive, consistent, balanced permitting process

– Process for local governments/municipalities to provide feedback

– Citizens assured that drilling provides a direct and significant economic benefit

– Consistent and predictable process for individual landowners to insure fair and equitable treatment

– Assurance of outstanding water resources with exemplary water quality

– Bill Maloney:

We already have regulation on oil and gas, including the Marcellus Shale. When I’m governor, West Virginia will drill. We need to streamline the permitting process to ensure we take advantage of this huge potential, while protecting property rights and addressing environment concerns.

– Mark A. Sorsaia:

Yes we do need new regulations that will insure the quality of ground water, and public safety. Our regulations must place us in a competitive position that will promote the development of our gas resources.

Governors race: Candidates talk fracking

Monday, April 18, 2011

In Sunday’s Gazette-Mail, our political staff asked the Democratic candidates for governor of West Virginia this question:

Do you believe West Virginia needs new regulations for oil and gas drilling? If so, what specific requirements should be in the legislation?

Here are their answers:

Jeff Kessler

Yes. More DEP inspectors and regulations that include protection of our water resources; protection of landowner surface rights; repair of our roads and highways; fair distribution of the production royalties to mineral right owners; that West Virginia residents are employed in the industry and that adequate severance dollars are collected.

John Perdue -

Before we start drilling in the Marcellus Shale, we should first set regulations that will allow us to extract the gas in an environmentally safe way, provide protections for our water supply and establish landowner’s rights.

Natalie Tennant -

Responsible development of our natural resources will allow West Virginia to create thousands of new jobs and strategic investment in education, research and technology. We must, however, ensure we protect our environment, our roads and our communities. We must also ensure companies hire West Virginians for West Virginia work.

Rick Thompson -

Yes, and that’s why I proposed a special session to deal with the issue. Producers need a process that is understandable, attainable and reasonable. Communities need to be assured that their groundwater and infrastructure are protected and surface owners need assurance their rights are protected.

Earl Ray Tomblin -

Yes. The Marcellus Shale presents an enormous economic opportunity, and I support drilling in a responsible and reasonable manner. I proposed additional funding for inspectors to ensure compliance with regulations, and I will continue pushing the Legislature to provide that money and adopt reasonable regulations.

Rockefeller: Don’t let ‘emotion’ rule nuclear debate

Thursday, March 17, 2011

In this photo made off NHK TV video footage, a Japan Self-Defense Force helicopter dumps water over the No. 3 unit of the Fukushima Dai-ichi nuclear power plant in Okumamachi, Fukushima Prefecture, Thursday, March 17, 2011. The Japanese caption reads: “No. 3 unit of Fukushima Dai-ichi nuclear power plant, Japan Self-Defense Force helicopter began to dump water.” (AP Photo/NHK TV)

A lengthy McClatchy Newspapers story about how Japan’s nuclear plant crisis is affecting energy policy debates here in the United States had an interesting passage quoting West Virginia Sen. Jay Rockefeller:

Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va., for instance, noted that while he’s “not a big fan of nuclear power … we don’t make (decisions) out of emotion; we don’t make them because of a catastrophe in another country. So before we make the decision, let’s be thoughtful about it.”

Among the flurry of media reports coming out of the Japanese crisis, a couple of things are especially interesting.

First, there’s a New York Times story that explains:

The warnings were stark and issued repeatedly as far back as 1972: If the cooling systems ever failed at a “Mark 1” nuclear reactor, the primary containment vessel surrounding the reactor would probably burst as the fuel rods inside overheated. Dangerous radiation would spew into the environment.

Now, with one Mark 1 containment vessel damaged at the embattled Fukushima Daiichi nuclear plant and other vessels there under severe strain, the weaknesses of the design — developed in the 1960s by General Electric — could be contributing to the unfolding catastrophe.

When the ability to cool a reactor is compromised, the containment vessel is the last line of defense. Typically made of steel and concrete, it is designed to prevent — for a time — melting fuel rods from spewing radiation into the environment if cooling efforts completely fail.

In some reactors, known as pressurized water reactors, the system is sealed inside a thick steel-and-cement tomb. Most nuclear reactors around the world are of this type.

But the type of containment vessel and pressure suppression system used in the failing reactors at Japan’s Fukushima Daiichi plant is physically less robust, and it has long been thought to be more susceptible to failure in an emergency than competing designs. In the United States, 23 reactors at 16 locations use the Mark 1 design, including the Oyster Creek plant in central New Jersey, the Dresden plant near Chicago and the Monticello plant near Minneapolis.

G.E. began making the Mark 1 boiling-water reactors in the 1960s, marketing them as cheaper and easier to build — in part because they used a comparatively smaller and less expensive containment structure.

American regulators began identifying weaknesses very early on.

(more…)