David Petraeus

"Carbon Copy": How Big Oil and King Coal Ghost Write Letters for Public Officials, Business Groups

The Billings Gazette has revealed that coal mining company Cloudpeak Energy ghost wrote protest letters to the U.S. Department of Interior (DOI) on behalf of allied policymakers and business groups. 

Reporter Tom Lutey examined numerous letters written to DOI from Montana-based stakeholders and noticed something unusual: the language in every single letter was exactly the same. That is, the same except for a parenthetical note in one of them instructing the supposed writer of it to “insert name/group/entity.”

The “carbon copied” (pun credit goes to Lutey) letters requested for the DOI to give states a time extension to begin implementing new rules dictating the coal industry give states a “fair return” on mining leases granted to industry by the states. DOI ended up giving King Coal the 60-day extension.

“Last month, coal proponents scored a major victory by convincing the Department of Interior to hold off on its rule making for 60 days so that more people could respond,” Lutey wrote. “Members of the Montana Legislature, along with county commissioners and mayors from Montana and Wyoming communities put the weight of their political offices behind letters asking the DOI for more time. What they didn’t offer were their own words.”

Among those who submitted a “carbon copied” letter originally written by Cloudpeak Energy include the Montana Chamber of Commerce, Billings Chamber of Commerce, Montana Coal Council, Montana Sen. Debby Barrett and the Yellowstone County Board of Commissioners.  

Unlike others, the Montana Chamber of Commerce embarassingly forgot to take out the boilerplate “insert name/group/entity” language. 

Montana Chamber of Commerce Ghostwriting Coal Letter
Image Credit: Quit Coal

Cloud Peak responded by saying this was a “sample letter…included as part of…briefings,” but did not clarify if those allied stakeholders were supposed to send them to DOI in verbatim fashion, as did the Montana Chamber.

Revealed: Emails Show ND Ethics Law Potentially Broken on Petraeus Fracking Trip

DeSmogBlog has obtained emails via North Dakota's Open Records Statute revealing facts that could be interpreted as indicating that North Dakota Treasurer Kelly Schmidt broke State Investment Board ethics laws.

The potential legal breach occurred during a late-April fracking field trip made to the state by former CIA Director Gen. David Petraeus.

In a radio interview responding to DeSmogBlog's original investigation about the trip, Schmidt said rolling out the red carpet for Petraeus — who now works at Manhattan-based private equity giant Kohlberg Kravis Roberts (KKR), which holds over $1 billion in oil and gas industry assets and calls itself a “mini oil and gas company“ — was “not unusual.”

KKR initially told DeSmogBlog it followed all state and federal laws during the Petraeus visit. 

But new emails obtained by DeSmogBlog from both the North Dakota State Investment Board and the Office of the North Dakota State Treasurer call that and much more into question. 

Rewinding back to where it all began, for the final stops of the two-day Petraeus visit to North Dakota, he and his KKR colleagues Ari Barkan and Vance Serchuk met with representatives from the North State Investment Board and the North Dakota Department of Land Trusts.

Banal convenings at face-value, what preceded and followed the meetings tells a bigger story: first a crucial plane flight and then a follow-up invitation to come to New York City to talk business.

Looked at on the whole, the plane flight and what came after it raises fundamental legal and ethical questions about the burgeoning — and much-touted in some circles — North Dakota oil and gas Legacy Fund.  

ND Treasurer: Red Carpet Rollout for Gen. Petraeus Fracking Field Trip "Not Unusual"

North Dakota Treasurer Kelly Schmidt has responded to DeSmogBlog's investigation of the Bakken Shale basin fracking field trip her office facilitated for former CIA Director Gen. David Petraeus, who now works at the Manhattan-based private equity firm Kohlberg Kravis Roberts (KKR)

Schmidt expanded on the initial comments she provided to DeSmogBlog in response to our findings obtained via North Dakota Open Records Statute. Among other things, she described the blurred lines existing between the North Dakota government, the oil industry and private equity firms like KKR as “not unusual.” 

Schmidt's comments came on May 23 on WDAY's Jay Thomas Show, guest hosted that day by Rob Port, just over three weeks after her office hosted Petraeus.

DeSmogBlog's May 22 investigative piece revealed that KKR — which has ties to North Dakota's hydraulic fracturing (“fracking”) boom via Samson Resources and The Ridge housing complex and considers itself a “mini oil and gas company” — wrote the press release for the Office of North Dakota State Treasurer announcing Petraeus' visit, closely counseled Schmidt's office on media strategy and hosted Schmidt on a company chartered private jet.

Documents: Petraeus Fracking Field Trip Reveals ND Government, Oil, Private Equity Nexus

DeSmogBlog has obtained hundreds of documents portraying the blurred lines between North Dakota's government, the oil and gas industry and the private equity world. They also offer one of the first looks inside the professional life of former CIA Director Gen. David Petraeus after he resigned from the agency in 2012.

The documents reveal Kohlberg Kravis Roberts (KKR) — a private equity firm where Petraeus now works at the KKR Global Institute — wrote a press release for North Dakota's State Treasurer announcing the Petraeus visit, meticulously counseled the state treasurer's office on media strategy and hosted the state treasurer on its company plane.

A large part of Petraeus' visit centered around a tour of the state's Bakken Shale basin, where upwards of 1 million barrels of oil are extracted each day via hydraulic fracturing (“fracking”). The Bakken pumped out its billionth barrel of oil during his stay.

KKR, with $87 billion in assets, owns two major Bakken entities: The Ridge in Williston, ND, and Samson Resources.

The Ridge is a KKR-owned housing complex for Bakken oil and gas workers, while Samson Resources is a major company fracking for oil and gas throughout the U.S., including in the Bakken.  

With over $4 billion sitting in an energy investment fund as of June 2012, KKR also owns over $950 million in oil and gas industry assets. Marc Lipschultz, head of energy and infrastructure for KKR, called the firm a “mini oil and gas company“ in an April 2013 interview with Privcap.

“We have our own technical abilities attached to the firm we have our own back office [and] we can manage the daily flows of oil and gas in drilling wells and managing our own hedges,” said Lipschultz. 

Controversial State Department Keystone XL Climate Study the Basis of David Petraeus' CUNY Seminar

Former CIA-head David Petraeus' City University of New York (CUNY) Macaulay Honors College seminar readings include several prominent Big Oil-funded “frackademia” studies, a recent DeSmogBlog investigation revealed.

Further digging into records obtained via New York's Freedom of Information Law (FOIL) also reveals “a survey of the global economy to set the stage for the course” - as stated in an email from Petraeus to an unknown source due to redaction - utilizes the U.S. State Department's Keystone XL environmental review written by Environmental Resources Management (ERM Group) to argue that Transcanada's tar sands export pipeline deserves approval.

“[Redacted], atttached is a document that my Harvard researchers and I put together for the seminar I'll lead at Macaulay Honors College of CUNY,” wrote Petraeus in the email. “It is intended to be a survey of the global economy to set the stage for the course…[It] will have considerable value, I think, for the undergrads in the course.”

The “Global Economy” survey was penned on behalf of Petraeus by Vivek Chilukuri, one of Petraeus' researchers at Harvard University's Kennedy School of Public Policy, where Petraeus sits as a Non-Resident Fellow. Chilukuri serves as Editor-in-Chief for the Harvard Journal of Middle Eastern Politics & Policy, and worked for Obama for America before the 2008 election. 

It was at the Harvard Kennedy School where all of Petraeus' troubles began. His biographer, Paula Broadwell, whom he had an affair with, met Petraeus while a Harvard graduate student, a scandal that ultimately drove him out of the CIA.

His CIA departure landed Petraeus his current gigs on Wall Street at Kohlberg Kravis Roberts (KKR) and as an adjunct professor at CUNY Honors College and University of Southern California - and coming full circle - back at Harvard, where the spool began to unravel. 

Revealed: Gen. David Petraeus' Course Syllabus Features "Frackademia" Readings

Records obtained by DeSmogBlog pertaining to City University of New York (CUNY) Macaulay Honors College's hiring of former head of the Central Intelligence Agency (CIA) David Petraeus to teach a seminar this coming fall reveal that his syllabus features two of the most well-known “frackademia” studies. 

“Frackademia” is shorthand for oil and gas industry-funded research costumed as independent economics or science covering the topic of hydraulic fracturing (“fracking”), the controversial horizontal drilling process via which oil and gas is obtained deep within shale rock basins.

According to the syllabus, Petraeus will devote two weeks to energy alone, naming those weeks “The Energy Revolution I” and “The Energy Revolution II.” The two “frackademia” studies Petraeus will have his students read for his course titled “The Coming North American Decade(s)? are both seminal industry-funded works.

One of them is a study written by industry-funded National Economic Research Associates (NERA) concluding liquified natural gas (LNG) exports are beneficial to the U.S. economy, despite the fact that exporting fracked gas will raise domestic home-heating and manufacturing prices. NERA was founded by “father of deregulation” Alfred E. Kahn. The study Petraeus will have his students read was contracted out by the U.S. Department of Energy (DOE) to NERA.

The other, a study written by then-Massachusetts Institute of Technology (MIT) research professor Ernest Moniz - now the head of the DOE - is titled “The Future of Natural Gas” and also covers LNG exports. DOE oversees the permitting process for LNG exports. That study was funded by the Clean Skies Foundation, a front group for Chesapeake Energy and covered in-depth in the Public Accountability Initiative's report titled, “Industry Partner or Industry Puppet?

Noticeably absent from the reading list: studies tackling the climate impacts, air quality impacts, over-arching ecological impacts such as water contamination, wastewater impacts and supply issues (aka diminishing supply)

Together, the two crucial studies on the syllabus reading list - and the lack of critical readings on the topic of fracking - offers a gimpse into the stamp of legitimacy industry-funded studies get when they have the logo of elite research universities on them. It's also another portrayal of the ascendancy of the corporate university.  

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