Wed, 2014-07-23 14:16Steve Horn
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Not Just the Atlantic: Obama Leasing Millions of Gulf Acres for Offshore Drilling

Deploying the age-old “Friday news dump,” President Barack Obama's Interior Department gave the green light on Friday, July 18 to companies to deploy seismic air guns to examine the scope of Atlantic Coast offshore oil-and-gas reserves.

It is the first time in over 30 years that the oil and gas industry is permitted to do geophysical data collection along the Atlantic coast. Though decried by environmentalists, another offshore oil and gas announcement made the same week has flown under the radar: over 21 million acres of Gulf of Mexico offshore oil and gas reserves will be up for lease on August 20 in New Orleans, Louisiana at the Superdome. 

On July 17, the U.S. Department of Interior's Bureau of Ocean Energy Management (BOEM)  announced the lease in the name of President Obama's “all of the above” energy policy

“As part of President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production, BOEM…today announced that the bureau will offer more than 21 million acres offshore Texas for oil and gas exploration and development in a lease sale that will include all available unleased areas in the Western Gulf of Mexico Planning Area,” proclaimed a July 17 BOEM press release.

The release says this equates to upwards of 116-200 million barrels of oil and 538-938 billion cubic feet of natural gas and falls under the banner of the U.S.-Mexico Transboundary Hydrocarbon Agreement

That Agreement was signed into law on December 26, 2013. It served as a precursor to the recently-passed Mexican oil and gas industry privatization reforms, which have opened the floodgates to international oil and gas companies to come into Mexico for onshore and offshore oil and gas exploration and production.  

Wed, 2014-07-23 10:51Justin Mikulka
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Obama Administration Releases Weak Proposed Rules On Crude By Rail After Industry Lobbying Blitz

The Department of Transportation released its Notice of Proposed Rulemaking today for the transportation of crude oil and ethanol by rail. With the release of the proposed new regulations, a public comment period now begins before the rules will be finalized.

The proposed rules offer a wide variety of options for the public to comment on with the weakest proposals essentially being the status quo, as is the case for the rail tank car recommendations.

These proposed regulations have been under review for the past several months at the White House’s Office of Information of Regulatory Affairs where industry lobbyists have been hard at work to weaken and delay the regulations. An initial review of the proposal makes it clear their efforts have paid off and first reactions from advocates for increased safety reflect this.

Matt Krogh, of ForestEthics, the group which recently released a website where people can check if they are within the blast zone for the oil trains, released a statement telling the Obama administration to “go back to the drawing board and put public safety first.”

“Today the Obama administration announced weak new standards for high-hazard flammable trains that give the oil industry a license to threaten the safety of millions of Americans and leave communities and emergency responders holding the bag.

The administration seems to have carefully calculated and managed the inconvenience of these rules to the oil industry, but they’ve severely underestimated the threat of these trains to the American public.”

A review of the proposal reveals many things in the industry’s favor.

Wed, 2014-07-23 09:08Sharon Kelly
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Pennsylvania Environmental Regulators Flunk State's Own Shale Gas Audit

In January 2013, Pennsylvania's auditor general announced that he would conduct an investigation into whether state regulators were effectively overseeing the impacts from the shale gas drilling rush.

A year and a half later, the results are in: the state's environmental regulators are failing badly in at least eight major areas, at times declining to cite drillers who broke the law. In a damning 158-page report, the state's auditor general highlighted the agency's wide-ranging failures. The report detailed the Department of Environmental Protection's (DEP) use of a legal “loop hole” to avoid inspecting wells and described the agnecy's failure to fulfill its duty to track the industry's toxic waste. The report also faulted the agency for a reliance on voluntary measures in policing the industry.

The federal government has largely taken a hands-off approach to policing the drilling boom. What federal rules do exist have various broad exemptions exemptions for the oil and gas industry. Pennsylvania, which features a large swath of the Marcellus shale, is widely viewed as ground zero for the current fracking boom. In the unusually candid report released this week, state auditors have concluded that the state is overwhelmed by the industry and is providing insufficient oversight.

“It is DEP’s responsibility to protect the environment from these environmental risks and to ensure that laws and regulations which govern potential impacts to water quality are enforced,” Pennsylvania's auditors wrote. “Unfortunately, DEP was unprepared to meet these challenges because the rapid expansion of shale gas development has strained DEP, and the agency has failed to keep up with the workload demands placed upon it.”

Auditors described state environmental regulators as woefully outgunned and unprepared for the sudden arrival of the shale gas drilling frenzy.

Tue, 2014-07-22 10:55Guest
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BNSF Nears Shift To One-Member Crews, Possibly Even on Dangerous Oil Trains

This is a guest post by Cole Stangler.

For decades, the U.S. railroad industry has successfully shed labor costs by shifting to smaller and smaller operating crews. Now, it’s on the verge of what was once an unthinkable victory: single-member crews, even on dangerous oil trains.

A tentative agreement reached by BNSF Railway and the Transportation Division of the Sheet Metal, Air, Rail and Transportation (SMART) union would allow a single engineer to operate most of the company’s routes. It would mark a dramatic change to a labor contract that covers about 3,000 workers, or 60 percent of the BNSF system.  

It’s not just bad news for workers. The contract has major safety implications—especially amid North America’s dangerous, and sometimes deadly, crude-by-rail boom. Last year’s Bakken shale oil train derailment and explosion in Lac Mégantic, Quebec, which killed 47 people, brought increased scrutiny to oil trains. 

In response, Canadian regulators outlawed one-person crews on trains carrying hazardous materials. (A single engineer was in charge of the ill-fated train, although it was unmanned when it rolled into the town center.) 

BNSF spokesperson Roxanne Butler told DeSmogBlog the new contract would not apply to so-called “key trains” — loads of crude oil, ethanol and other hazardous materials.

As it stands, she says, the company mandates two-member crews for such shipments , and those are the terms of BNSF’s existing labor agreement.

But there is no federal law on the books that requires two-person rail crews for shipments of dangerous goods. The Federal Railway Administration (FRA) is expected to issue a proposed rule on the subject by the end of the year.

Workers worry that without contract guarantees, and no federal protections in place, BNSF will make the cost-cutting shift to one-person crews.

If you look at the contract, there’s nothing that shows they will exempt oil trains,” says Ron Kaminkow, general secretary of Railroad Workers United, a labor group that opposes single-employee freight trains.

[BNSF] will do whatever they want to do,” says Robert Hill, a BNSF engineer based in Hauser, Idaho, roughly twenty miles east of Spokane, a major rail hub for the Northwest. “At some point, you eventually will see a one-man crew on these oil [trains]. There’s nothing specific in their company policy that says they have to have two-man crews on oil trains.”

Mon, 2014-07-21 14:26Justin Mikulka
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Maine Residents Fight American Petroleum Institute Lobbyists Over Ban on Tar Sands Shipments

Portland, Maine, has become the latest battleground in the fight against tar sands oil, with local residents facing off against energy industry forces in an attempt to ban tar sands oil from the city’s port.

The South Portland Clear Skies Ordinance, would ban tar sands oil from being loaded on to ships at the local port. City council will take a final vote on the measure today.

Three weeks ago, about 200 people attended a presentation on the proposed ordinance, many wearing blue “clear skies” t-shirts to show their support. Only three people spoke against the ordinance at that meeting.

But on July 7, when many of the same 200 people in blue t-shirts showed up at the meeting when the city council was set to vote on the ordinance, they were met with a surprise. The meeting room was packed with people in red shirts that read “American Energy” on the front and “SoPo Jobs” on the back.

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