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Fri, 2014-10-24 14:44Mike G
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Crude Oil Transport Project Halted In California After Environmentalists Sue

Back in August, DeSmog reported on California environmentalists stopping “stealth carbon bombs” in their communities. Now they're celebrating another victory as a dangerous—and illegal—crude oil transport project in Sacramento has been halted as well.

According to a report by the Sacramento Bee last March, the Sacramento Metropolitan Air Quality Management District first caught InterState Oil Company, a fuel distributor, offloading ethanol without a permit in the fall of 2012. Inspectors with the AQMD then caught InterState transloading crude oil from trains to trucks bound for Bay Area refineries in September of last year, again without a permit.

InterState was not fined for these violations and was even allowed by the AQMD to continue importing ethanol and crude oil into California by train while it sought the necessary permits.

InterState received the permit to transload crude from trains to trucks in March of this year. On September 23, Earthjustice filed a lawsuit in Sacramento Superior Court on behalf of the Sierra Club challenging what it called the AQMD's “furtive approval” of the permit.

Wed, 2014-10-22 12:52Farron Cousins
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Politico Allows BP Exec To Mislead Public About Gulf of Mexico Oil Spill Impacts

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Geoff Morrell, the senior vice president of communications at BP, wants the whole country to know that the company’s negligence that led to the Deepwater Horizon oil geyser has not destroyed the Gulf of Mexico. And all of those fears about lost revenue and declining tourism along the Gulf Coast? That never happened, according to Morrell.

Politico allowed the BP executive to use its platform to spread some of the most egregious and misleading information about the health of the Gulf of Mexico that we’ve seen to date.

Granted, it is Morrell’s job as VP of communications to put a positive spin on such a negative story for BP, but his op-ed in Politico goes far beyond whitewashing the problem. Morrell has completely fabricated a story that those of us who live along the Gulf Coast spot just as easily as we can spot the BP tar balls that still wash up on our shores.

Fri, 2014-10-17 14:00Mike G
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More Oil Companies To Disclose Risks Of Fracking, Climate Change To Investors

Last week brought yet more evidence that investors in oil and gas companies are waking up to the risks of fracking and climate change.

Two natural gas companies, Anadarko Petroleum and EOG Resources, recently struck a deal with New York Attorney General Eric Schneiderman to disclose the financial and environmental risks associated with fracking to their shareholders, including “probable future regulation and legislation” that could impact their operations, according to a statement released by Schneiderman's office.

The agreement resolves a probe by Schneiderman into the disclosure practices of oil and gas companies begun in 2011.

Business media outlets like Bloomberg are framing the story very much as “oil companies doing the right thing,” but it's important to note that these companies would not be doing this if they didn't feel it was in their best interest—and generally whatever keeps shareholders happy is in a company's best interest.

Bloomberg notes that the oil companies are hoping “to ease public fears about fracking after legal setbacks and concerns over water pollution.” As is becoming increasingly clear, concerns over water pollution are all too valid.

Legal setbacks are probably keeping any fracker in New York up at night, as well, after the New York state supreme court ruled in June that municipalities have the right to adopt their own rules on fracking.

So far, 180 New York towns and cities have issued a ban or moratorium on fracking.

Wed, 2014-10-15 23:10Mike G
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Fracking Boom Has Had Devastating Consequences For Motorists

A joint investigation by the Houston Chronicle and Houston Public Media shines a light on one of the fracking boom's lesser known impacts: traffic deaths.

With several shale fields in play—including Eagle Ford and Permian Basin, which together are pumping out over 3.2 million barrels per day—Texas has contributed heavily to the fracked oil boom. Apparently, motorists have paid a heavy price for that oil.

Since the state's fracking boom began in 2008, Texas has bucked the national trend and seen its traffic fatality numbers going up, leading the country in motor vehicle deaths every year.

The police don't note in accident reports whether or not a particular vehicle involved in a crash belonged to an oil company or who the driver at fault worked for, so it's nearly impossible to actually quantify the oil industry's responsibility for traffic deaths.

But the joint investigation finds that the shocking 51% increase in accidents involving commercial vehicles correlates closely to counties where fracking operations are concentrated:

Fri, 2014-10-10 09:53Sharon Kelly
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A Shift from Fossil Fuels Could Provide $1.8 Trillion in Savings, Two New Reports Conclude

A worldwide transition to low carbon fuels could save the global economy as much as $1.8 trillion over the next two decades, according to two reports published Thursday by the Climate Policy Initiative.

By switching to renewable energy sources, the high costs associated with extracting and transporting coal and gas could be avoided, the reports, titled Moving to a Low Carbon Economy: The Financial Impact of the Low-Carbon Transition, and Moving to a Low Carbon Economy: The Impact of Different Policy Pathways on Fossil Fuel Asset Values, conclude.

This would free up funds to bolster financial support for wind, solar and other renewables – with enormous sums left over, the reports conclude. Following an approach aimed at capping climate change at 2 degrees Celsius will require walking away from massive reserves of fossil fuels, stranding the assets of major corporations, many researchers have warned. The new reports give this issue a closer look, demonstrating that more than half of the assets at risk are actually owned by governments not corporations.

This finding could be double-edged, since that means taxpayer money in many countries is at stake and those governments have the power to establish policies that could promote or repudiate the fossil fuels they control. But the reports' conclusion that trillions could be freed up if governments and private companies abandon those assets could make it easier for governments to leave those fossil fuels in the ground.

Tue, 2014-10-07 16:05Mike G
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Confirmed: California Aquifers Contaminated With Billions Of Gallons of Fracking Wastewater

After California state regulators shut down 11 fracking wastewater injection wells last July over concerns that the wastewater might have contaminated aquifers used for drinking water and farm irrigation, the EPA ordered a report within 60 days.

It was revealed yesterday that the California State Water Resources Board has sent a letter to the EPA confirming that at least nine of those sites were in fact dumping wastewater contaminated with fracking fluids and other pollutants into aquifers protected by state law and the federal Safe Drinking Water Act.

The letter, a copy of which was obtained by the Center for Biological Diversity, reveals that nearly 3 billion gallons of wastewater were illegally injected into central California aquifers and that half of the water samples collected at the 8 water supply wells tested near the injection sites have high levels of dangerous chemicals such as arsenic, a known carcinogen that can also weaken the human immune system, and thallium, a toxin used in rat poison.

Timothy Krantz, a professor of environmental studies at the University of Redlands, says these chemicals could pose a serious risk to public health: “The fact that high concentrations are showing up in multiple water wells close to wastewater injection sites raises major concerns about the health and safety of nearby residents.”

Sun, 2014-09-28 07:00Mike G
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Arctic Madness: Shell and ConocoPhillips Plead With US Govt to Avoid Standards For Arctic Spill Preparedness

Two oil companies planning to drill in remote Arctic waters, Shell and ConocoPhillips, are pleading with U.S. regulators not to make them follow new guidelines proposed by the Interior Department that would require the companies to keep emergency spill response equipment close at hand and prohibit the use of chemical dispersants.

The precise details of the new rules for Arctic drilling operations have not been made public as an inter-agency review of the Interior Department's proposal is still being carried out.

But records of meetings with officials at the Office of Management and Budget (OMB), which is currently reviewing the new standards, show that Shell is vigorously contesting rules that would require the company to keep on hand the necessary equipment for emergency response in the event of a blowout, such as containment systems and a rig to drill a relief well.

Shell says that keeping a rig on standby would cost the company an additional $250 million a year.

Both Shell and ConocoPhillips are taking issue with another of the proposed rules, a potential ban on the use of highly toxic chemical dispersants in favor of booms, skimmers, and other physical equipment to contain spilled oil.

In a presentation to the OMB's Office of Information and Regulatory Affairs, Shell argued: “A 100 percent mechanical requirement leads to increasing costs and environmental impacts — less recovery of oil — as operators enter plays with higher daily worst-case discharges.”

Studies have shown that while dispersants can help prevent oil from washing ashore and may protect surface-dwelling sea life, it can have serious impacts on marine life living below the surface.

Tue, 2014-09-23 23:08Mike G
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Investors Waking Up To Risks Of Stranded Assets, Realities Of Shale Bubble

The day after some 400,000 people marched in the streets of New York to call for climate justice, the world woke to some more historic news: The Rockefeller family, heirs to the Standard Oil fortune, announced that they were directing their $860 million charitable fund to divest from fossil fuels.

The Rockefellers cited their moral obligation to leave a better planet for their children as motivation, but it was also a business decision: “We see this as having both a moral and economic dimension,” Steven Rockefeller says.

Investors are beginning to realize that it’s not just coal in decline. All fossil fuels, including oil and natural gas, are living on borrowed time.

According to Carbon Tracker, we can only burn one-fifth of proven fossil fuel reserves if we are to avert the most catastrophic global warming, and if capital expenditures continue at current rates, some $6.74 trillion will be wasted over the next decade developing reserves that are likely to become unburnable.

Translation: The clean energy revolution is coming, and the forward-looking money is backing renewables, not fossil fuels.

Tue, 2014-09-23 14:00Mike G
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California Farmers File Suit Alleging Oil Companies' Faulty Wastewater Injection Caused Crop Loss

A farming company in Kern County, California, has sued four oil producers over claims that their faulty wastewater injection methods led to the contamination of groundwater it uses for irrigation.

Palla Farms LLC, a ninety-two-year-old family farm operation, says it had to tear out hundreds of cherry trees due to high levels of salt and boron in the groundwater it has used to irrigate its crops for the past 25 years. The company claims its almond orchard has also experienced production declines.

Palla Farms' suit alleges that the four oil companies—Crimson Resource Management Corp., Dole Enterprises Inc., E&B Natural Resources Management Corp. and San Joaquin Facilities Management Inc.—violated state environmental regulations when disposing of produced water, drilling mud, and flowback water from fracking, which led to the contamination of the groundwater.

The Bakersfield Californian has the details on the allegations:

Fri, 2014-09-05 12:00Mike G
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Federal Judge: BP's "Willful Misconduct," "Gross Negligence" Led To Deepwater Horizon Disaster

A federal judge in New Orleans minced no words in handing down a ruling this week that found BP's “willful misconduct” and “gross negligence” caused the worst offshore oil spill in U.S. history.

The ruling is the result of a jury-less trial to determine who was at fault for the 2010 Deepwater Horizon disaster and oil spill. The trial was held by District Judge Carl Barbier in New Orleans.

A blowout at BP's ultra-deepwater Macondo well in the Gulf of Mexico on April 20, 2010 caused an explosion that took the lives of 11 workers on the Deepwater Horizon rig, which then sank to the bottom of the Gulf, some 5,000 feet below, leaving the well to spew oil for 87 days until it was capped.

Barbier rejected BP's assertion that Transocean, which leased the Deepwater Horizon rig to BP, and Halliburton, which was contracted by BP to do cement work on the well, deserved equal shares of blame. “BP's conduct was reckless,” Barbier wrote in his 153-page ruling. “Transocean's conduct was negligent. Halliburton's conduct was negligent.”

The judge assigned 67 percent of the fault to BP, 30 percent to Transocean, and 3 percent to Halliburton. According to Bloomberg, this makes BP liable for as much as $18 billion in fines. Having been found merely negligent, Transocean and Halliburton aren't facing such hefty punitive damages.

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