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Tue, 2013-10-08 06:00Guest
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Why Are Coal Industry PR Pros Laughing About Climate Change in Private Talks on Export Terminals?

Ed. Note October 17: In response to misleading allegations from Edelman and the Alliance for Northwest Jobs & Exports, DeSmog has posted a follow-up demonstrating clearly that Mr. Stark's presence was known and that he had introduced himself to both Ms. Hennessey and Mr. Ferguson prior to the conversation.

This is a guest post by Mike Stark from FossilAgenda.

Last month, I attended Platt’s 36th Annual Coal Marketing Days. As a journalist predominantly focused on climate change and the coal industry for the past year, I was pleasantly surprised at how much ground was covered. At the same time, I was not surprised by the subdued mood that permeated this event.

If coal is your business, your best days are behind you, whether you're a mining executive or a PR flack. And the convention attendees were incapable of hiding their forlorn resignation. The gallows humor was contagious, even to someone who can be characterized as generally happy to see one of the world's dirtiest fuels in decline. 

But one flickering glimmer of hope was provided by Lauri Hennessey, a Vice President at Edelman, the world's largest public relations firm notorious for its corporate greenwashing campaigns.

Lauri Hennessey represents the Alliance for Northwest Jobs & Exports, a front group for coal mining and rail corporations that would profit from the export of Powder River Basin coal. Listen to her hallway conversation with some Arch Coal executives reflecting on the prospects of coal export terminal proposals in the Northwest: 


  

Thu, 2013-09-19 14:37Ben Jervey
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An End to Powder River Basin Coal Leases? Second Auction in Two Months Fails to Seal a Mining Deal

The Bureau of Land Management is having a hard time getting rid of our publicly owned coal. For the second time in two months, a federal coal lease auction resulted in no sales.

On Wednesday, the BLM announced that it was officially rejecting the lone bid on the Hay Creek II coal lease tract in Wyoming. The lone bidder, Kiewit Mining Properties, had offered a measly $0.21-per-ton of the estimated 167 million tons of mineable coal in the Hay Creek II tract. The BLM declared that the bid “did not meet fair market value” and rejected it.

Hey, at least we can’t accuse the BLM of literally giving away coal on public lands.

This failure to secure a suitable bid comes on the heels of last month’s stunning news that there were absolutely no bids for the auction of the Maysdorf II tract, also in the Powder River Basin in Wyoming.

If these two failed auctions represent a larger trend, it is that the market for coal has gotten so bad that even the BLM’s bargain bin prices are too high for industry to pay. And, yes, the BLM’s prices are cheap, as they’ve leased over 2 billion tons of coal in the Powder River Basin alone since 2011 at an average of around $1-per-ton.

That price point was criticized in a recent report by the Interior Department’s own Inspector General, which accused the BLM of failing to factor international markets and coal exports into their “fair market values,” and which calculated that for every cent that publicly-owned coal deposits are undervalued, American taxpayers get stiffed by $3 million.

Wed, 2013-09-18 14:49Caroline Selle
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Poland Partners with Coal and Oil Corporate Sponsors for COP19 Climate Conference

On Tuesday, the Polish Government - host of the UNFCCC COP19 international climate negotiations - announced twelve corporate partners of the conference. While the Polish Environment Ministry suggests, “The products and services they [the partners] offer are green,” many of the corporate partners’ histories tell stories of a different hue.

This rare decision to openly embrace corporate partners for COP19 begs the question of whether this is simply a greenwashing exercise for the coal and oil corporations involved.

The COP19 corporate partners include:

Alstom Power: The French energy company was one of seven finalists for the People’s Public Eye Awards in 2013 for its numerous bribery scandals. Alstom claims to be a key component of nearly 25% of the world’s power production capacity.

Among other services, Alstom builds coal power plants. A fact sheet on the company’s website states that Alstom is the original equipment manufacturer for 95% of Poland’s coal power plant fleet installed since 1990. Alstom is currently seeking to play a major role in the construction of two new 900 megawatt coal plants in Poland.

Alstom will provide free drinking water and cups to conference attendees.

Tue, 2013-08-20 14:02Ben Jervey
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Maysdorf II By the Numbers: BLM's Big Coal Giveaway Tomorrow

Update Aug 23: In a stunning development, there wasn't a single bid at the BLM auction, with Cloud Peak Energy passing up the chance to bid out of fear that it would not be profitable.   

Tomorrow, the Bureau of Land Management will sell off roughly 148 million tons of coal. The BLM is opening the sealed bids for the so-called “Maysdorf II” tract in the heart of the Powder River Basin in Wyoming. The coal will likely be sold to Cloud Peak Energy, which operates the adjacent Cordero Rojo mine, one of the nation's largest strip mine operations. 

Cloud Peak Energy's Tesoro Rojo mine, soon to be expanded. Video by Greenpeace.  

According to Joe Smyth of Greenpeace, who penned a great post putting this sale (and another, even larger coal lease scheduled for next month) in the context of President Obama's recent climate announcements, the coal will be sold for roughly $1-per-ton. That represents a deep discount below market rates, which is what you'd expect from a lease auction with only one bidder.

Fri, 2013-08-16 10:51Steve Horn
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Warren Buffett Buys Over $500 Million of Suncor Tar Sands Stock, Latest in "Dirty Deeds Done Dirt Cheap"

Warren Buffett - the fourth richest man on the planet and major campaign contributor to President Barack Obama in 2008 and 2012 - may soon get a whole lot richer.

That's because he just bought over half a billion bucks worth of Suncor Energy stock: $524 million in the second quarter of 2013, to be precise, according to Securities and Exchange Commission filings. Suncor is a major producer and marketer of tar sands via its wholly owned subsidiary Petro-Canada (formerly Sunoco) and this latest development follows a trend of Buffett enriching himself through dirty investments and deal-making. 

So far in 2013, Suncor (formerly Sun Oil Company) has produced 328,000 barrels per day of tar sands crude.

Though he receives far less negative press than the Koch Brothers, Buffett's no deep green ecologist. Not in the slightest. 

Referred to as one of 17 “Climate Killers” by Rolling Stone's Tim Dickinson in a January 2010 story, Buffett owns the behemoth holding company, Berkshire Hathway. It's through Berkshire that he's making a killing - while simultaneously killing the ecosystem - through one of its most profitable wholly-owned assets: Burlington Northern Santa Fe (BNSF).

Buffett purchased BNSF for $26 billion and was “the largest acquisition of Buffett's storied career,” Dickinson wrote.

BNSF hauls around frac sand for the controversial horizontal oil and gas drilling process known as “fracking.” The rail company also moves fracked oil from North Dakota's Bakken Shale basin, tar sands logistical equipment and tar sands crude itself and tons of coal. And not only does Buffett's BNSF haul around ungodly amounts of coal, he actually owns coal-burning utility companies, too.

Thu, 2013-08-15 07:00Farron Cousins
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Coal Industry Waging War Against EPA

After playing the victims of an allegedly unfair, and completely fabricated, “war on coal,” the coal industry has gone on the offensive by launching their own war on federal regulators.  Specifically, the group has their sights set on the Environmental Protection Agency (EPA).

Coal lobbyists, led by the American Coalition for Clean Coal Electricity (ACCCE), have been meeting with White House officials to weaken EPA standards on CO2 emissions.  The lobbyists claim that a rule requiring carbon capture and storage (CCS) technology at all new coal-burning power plants should be removed because the technology is “not available.” 

Once you move past their talking points, their real agenda is clearly visible.  After claiming that the required technology is not available, the lobbyists then admitted that their goal was to completely exempt the industry from any form of emissions standards put forth by the EPA through the Clean Air Act.

The EPA is currently working on draft proposals that would significantly reduce the amount of allowable carbon pollution from existing power plants, a move that the coal industry views as too costly.  The lobbyists' meeting with White House officials is, according to The Hill, the most recent in a string of meetings between industry and administration officials this summer.

Tue, 2013-08-13 07:00Sharon Kelly
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Greenwashing Concerns Mount as Evidence of Fracking's Climate Impact Grows

Several years ago, Utah public health officials realized they had a big problem on their hands – one with national implications as other states were racing to increase oil and gas drilling. Smog levels in the state’s rural Uintah basin were rivaling those found in Los Angeles or Houston on their worst days.

The culprit, an EPA report concluded earlier this year: oil and gas operations. The industry was responsible for roughly 99 percent of the volatile organic compounds found in the basin, which mixed under sunlight with nitrogen oxides – at least 57% of which also came from oil and gas development – to form the choking smog, so thick that the nearby Salt Lake City airport was forced to divert flights when the smog was at its worst.

But the haze over the Uintah isn’t the most dangerous air pollutant coming from the oil and gas fields in the valley.

A string of studies by the National Oceanic and Atmospheric Administration show that the core ingredient in natural gas, methane, is leaking at rates far higher than previously suspected.  This methane has climate change impacts that, on a pound-for-pound basis, will be far more powerful over the next two decades than the carbon dioxide emissions that have been the focus of most climate change discussions.

The smog problem is especially pronounced in Utah. But a growing body of research nationwide suggests that methane is leaking from the natural gas industry at levels far higher than previously known.

In Washington D.C., pressure is mounting to ignore these methane leaks. The oil and gas industry says there is no time to waste. We must proceed immediately with the “all-of-the-above” national energy strategy they say, code for “drill baby drill”. This pressure is coming not only from the natural gas industry itself, but also from a surprising ally: the Environmental Defense Fund, which has supported natural gas development as a “bridge” from coal to renewables.

This position has drawn renewed accusations that the EDF is “greenwashing” for the natural gas industry.

Mon, 2013-08-12 12:18Farron Cousins
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Could Lead Paint Lawsuit Pave Way For Class Action Against Coal Industry?

Coal industry executives ought to pay attention to the lead paint lawsuit currently happening in the California court system.

Recently, a lawsuit was filed against the makers of lead paint, alleging that the industry knew about the toxicity of their product and yet still promoted it as “safe” to the public.  The industry has faced many lawsuits over their products in the past, most of which were unsuccessful for the victims, due to the fact that the industry was often up front about the dangers of their products, and they funded public studies to determine the health effects.

But things have changed in the American legal system, and attorneys are now taking a page out of the tobacco litigation playbook.  By unearthing documents that detail the lead paint industry’s attempted cover-up of the dangers, they avoid the “buyer beware” caveat that the tobacco industry used for so long. 

And just like the tobacco industry, lead paint manufacturers were specifically targeting children with their ads.  The California lawsuit is making that a central part of the trial.  Also reminiscent of the tobacco litigation, the suit was filed by cities and municipalities, not individual victims, greatly increasing the chance for success.

The coal industry should be paying very close attention to the progress of this litigation, as their activities could become the next target of skilled attorneys.  For decades, the coal industry has been poisoning American citizens with their coal-mining, -burning and -dumping activities.  Additionally, the dismal working conditions for miners has cost many families an unnecessary loss of life.

Sun, 2013-08-11 14:03Farron Cousins
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Kentucky Lawmakers Still Fighting Nonexistent War On Coal

Even the coal industry itself has conceded that there is no “war on coal”, but lawmakers in the coal-dependent state of Kentucky are still fighting this imaginary battle.

In the wake of President Obama’s speech earlier this summer where he discussed the need to reduce our dependence on coal and work on ways to control coal plant pollution, a bi-partisan group of lawmakers in Kentucky sent a letter to the president last week, warning him that his “war on coal” would be devastating to their state.

The 50 state legislators who signed onto the letter accuse the president of launching an “unfair attack on coal,” which the lawmakers argue will have a devastating effect on their state economy.

The bi-partisan group told the president that the coal industry is responsible for as much as $10 billion in “yearly” economic activity, although that number only represents the year 2010, and subsequent years have seen a sharp decline in the profitability of the industry’s operations in Kentucky.

Mon, 2013-07-22 08:10Farron Cousins
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Renewable Energy Sources Gaining Market Share

In a positive sign for United States energy consumption, a new report shows that the market share of renewable energy sources grew at a larger pace than fossil fuels for the year 2012.  Additionally, the first half of this year has seen an enormous surge in renewable energy infrastructure and generating capacity.

For 2012, a decline in the cost of solar and wind infrastructure is partly credited with the surge in use.  The International Energy Agency is now feeling more optimistic that renewable sources of energy could make up as much as 25% of global electricity generation by the year 2018.

And in another positive step for America, consumer energy consumption fell significantly in 2012, although that was in the wake of increased consumption from corporations.

A July Energy Infrastructure Update from the Federal Energy Regulatory Commission says that renewable energy provided 25% of new electricity generation for the first six months of 2013.  

The increased use and infrastructure build-out become even more remarkable when you consider the attacks that have been flowing towards renewable energy standards all over the country.

The American Legislative Exchange Council (ALEC) launched an all-out assault on renewable energy standards last year, managing to get at least 16 different states with imposed Renewable Portfolio Standards (rules that provide a guaranteed commitment to investment in fossil fuels) to consider legislation that would have either scaled these requirements back, or eliminated them altogether. 

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