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Sued by Chesapeake Energy for Stealing Trade Secrets, Aubrey McClendon Hires PR Giant Edelman

Chesapeake Energy has sued its former CEO, Aubrey McClendon, for allegedly stealing its trade secrets in the months between his resignation and the formation of his new company, American Energy Partners. To defend itself outside of the courtroom, American Energy Partners has hired Edelmanthe 'world's largest' and often controversial public relations firm.

Filed on February 17 at the District Court of Oklahoma County, Chesapeake's legal complaint alleges McClendon covertly took map-based data owned by the company in the time between resigning from the company and then officially leaving the company in early 2013. Chesapeake also alleges that he then utilized that same confidential data for business and investment decisions at his new startup in deciding which land to purchase for hydraulic fracturing (“fracking”) for oil and gas.

AEP used confidential information and trade secrets stolen by McClendon from Chesapeake as a basis for their decision to acquire certain acreage in the Utica Shale Play,” alleges the lawsuit. “Further, in acquiring this acreage…AEP interfered with Chesapeake's business plans and its negotiations for its own acquisition of acreage in the Utica Shale play.”

Chesapeake Energy alleges that, before taking the data with him, McClendon asked a former company vice president of land, whose name is redacted in the complaint, to optimize and update the data.

Chesapeake Energy v. American Energy Partners Complaint
Image Credit: District Court of Oklahoma County

Facing Felony Charges, Rick Perry Joins Board of Energy Transfer Partners, Owner of Proposed Oil Pipeline Across Iowa

Additional Reporting by David Goodner

Former Texas Republican Governor Rick Perry has joined the board of directors at Energy Transfer Partners, a natural gas and propane company headquartered in Dallas, Texas that has proposed to build a controversial Bakken crude oil pipeline across Iowa.

The announcement, which appeared in Energy Transfer Partners' February 3 Form 8-K filing to the U.S. Securities and Exchange Commission (SEC), comes as Perry faces two Texas state-level felony charges for abuse of power. Perry pleaded not guilty to both charges and District Judge Bert Richardson recently ruled against dismissing Perry's case.  

“It isn't immediately clear how much Perry will be paid for his board position,” explained the Texas Tribune. “According to regulatory filings published on the company's website, non-employee board directors were paid $50,000 a year in 2013.”

Despite the felony charges, Perry is still strongly considering a 2016 presidential run, according to a recent article published by the Associated Press, which reported he may make a final decision on whether or not to run by May. 

The Energy Transfer Partners filing to the SEC describes Perry's appointment: 

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On February 3, 2015, James R. (Rick) Perry was appointed as a director of Energy Transfer Partners, L.L.C., the general partner of Energy Transfer Partners GP, L.P., which is the general partner of Energy Transfer Partners, L.P. (the “Partnership”). Mr. Perry served as the Governor of Texas from 2000 until 2015.
There are no arrangements or understandings with the Partnership, or any other persons, pursuant to which Mr. Perry was appointed as a director of Energy Transfer Partners, L.L.C. Mr. Perry is not currently expected to be named to any committees of the board of directors of Energy Transfer Partners, L.L.C. At this time, the Partnership is not aware of any transactions, since the beginning of the Partnership’s last fiscal year, or any currently proposed transactions, in which the Partnership was or is to be a participant involving amounts exceeding $120,000, and in which Mr. Perry had or will have a direct or indirect material interest. Consistent with other non-employee members of the Board of Directors, Mr. Perry will be eligible to receive cash compensation for his service on the Board of Directors and equity compensation under the Second Amended and Restated 2008 Long-Term Incentive Plan, as described in the Definitive Proxy Statement on Schedule 14A filed by the Partnership with the SEC on October 24, 2014.

Enbridge Gets Another Federal Tar Sands Crude Pipeline Permit As Senate Debates Keystone XL

On January 16, the U.S. Army Corps of Engineers gave Enbridge a controversial Nationwide Permit 12 green-light for its proposed Line 78 pipeline, set to bring heavy tar sands diluted bitumen (“dilbit”) from Pontiac, Illinois to its Griffith, Indiana holding terminal.

The permit for the pipeline with the capacity to carry 800,000 barrels-per-day of tar sands dilbit came ten days after the introduction of S.1 — the Keystone XL Pipeline Act — currently up for debate on the U.S. Senate floor, which calls for the permitting of the northern leg of TransCanada's Keystone XL

Enbridge Line 78 Army Corps of Engineers Permit

Griffith is located just south of Whiting, Indiana, home of a massive refinery owned by BP. In November 2013, BP opened its Whiting Modernization Project, which retooled to refine up to 85-percent of its capacity as heavy dilbit from the tar sands, up from its initial 20-percent capacity.

Federal Court Order: Explosive DOT-111 "Bomb Train" Oil Tank Cars Can Continue to Roll

A U.S. federal court has ordered a halt in proceedings until May in a case centering around oil-by-rail tankers pitting the Sierra Club and ForestEthics against the U.S. Department of Transportation (DOT). As a result, potentially explosive DOT-111 oil tank cars, dubbed “bomb trains” by activists, can continue to roll through towns and cities across the U.S. indefinitely.  

“The briefing schedule previously established by the court is vacated,” wrote Chris Goelz, a mediator for the U.S. Court of Appeals for the Ninth Circuit. “This appeal is stayed until May 12, 2015, or pending publication in the Federal Register of the final tank car standards and phase out of DOT-111 tank cars, whichever occurs first.”

Order to Delay DOT-111 Bomb Trains Case
Image Credit: U.S. Court of Appeals for the Ninth Circuit

Filing its initial petition for review on December 2, the Sierra Club/ForestEthics lawsuit had barely gotten off the ground before being delayed.

Heather Zichal, Former Top Obama Energy Aide, Named Fellow at Industry-Funded Atlantic Council

Heather Zichal, former top climate and energy aide to President Barack Obama his top aide in crafting his 2008 presidential campaign energy platform, has joined the industry-funded Atlantic Council as a fellow at its Global Energy Center.

Center for Public Integrity Reveals How PR Firms Manufacture Consent for Oil, Big Business

The Center for Public Integrity has broken new ground by publishing a months-long investigation into the public relations and influence-peddling spending conducted by Big Business trade associations between 2008-2012.

That investigation highlights spending for trade associations ranging from the American Petroleum Institute, National Mining AssociationEdison Electric Institute, America's Natural Gas Association and many others not in the oil, gas and coal industry. The energy industrial complex, though, by far spent the most on public relations according to the Center.

Image Credit: Center for Public Integrity

API by far spent the most money on public relations according to the Center's analysis, which explained its research methodology as a side-bar to the story.

Did DeSmog's Coverage of Coal Baron Bob Murray v. Fracker Aubrey McClendon Lawsuit Lead To Sealing of Court Records?

On December 12, Magistrate Judge Mark R. Abel issued an order for the U.S. District Court for the Southern District of Ohio to place five sets of court records under seal for the ongoing case pitting coal baron Robert E. Murray against Aubrey McClendon, one of the godfathers of the hydraulic fracturing (“fracking”) boom.

DeSmogBlog published parts of two sets of the five sets of documents ordered under seal by Abel in an October 2014 article about the Murray v. McClendon case. The documents we published revealed a lease for McClendon's new venture — American Energy Partners — for the first time. 

Bob Murray, owner of American Energy Corporation Century Mine in Ohio, sued Aubrey McClendon for allegedly infringing upon his company's copyright in August 2013. He claimed McClendon commandeered the “American Energy” brand.

Both sides have now gone back-and-forth over discovery related issues for months. The dispute has shaken loose many newsworthy documents revealing much about McClendon's new company in particular.

This includes the American Energy Partners lease; a local newspaper advertisement pushing readers to apply for an American Energy Partners job; heavily redacted depositions of officials representing both companies; a redacted document revealing some of the companies to which McClendon's new venture sells the gas it produces; and more.

Not Just Public Lands: Defense Bill Also Incentivizes Fracked Gas Vehicles

DeSmogBlog recently revealed how Big Oil's lobbyists snuck expedited permitting for hydraulic fracturing (“fracking”) on public lands into the National Defense Authorization Act (NDAA) of 2015, which passed in the U.S. House and Senate and now awaits President Barack Obama's signature.

A follow-up probe reveals that the public lands giveaway was not the only sweetheart deal the industry got out of the pork barrel bill. The NDAA also included a provision that opened the floodgates for natural gas vehicles (NGVs) in the U.S.—cars that would largely be fueled by gas obtained via fracking.

The section of the bill titled, “Alternative Fuel Automobiles” (on page 104) lays it out:

NDAA of 2015 Natural Gas Vehicles
Image Credit: U.S. Government Publishing Office 

Revealed: How Big Oil Got Expedited Permitting for Fracking on Public Lands Into the Defense Bill

The U.S. Senate has voted 89-11 to approve the Defense Authorization Act of 2015, following the December 4 U.S. House of Representatives' 300-119 up-vote and now awaits President Barack Obama's signature.

The 1,616-page piece of pork barrel legislation contains a provision — among other controversial measures — to streamline permitting for hydraulic fracturing (“fracking”) on U.S. public lands overseen by the Bureau of Land Management (BLM), a unit of the U.S. Department of Interior.

Buried on page 1,156 of the bill as Section 3021 and subtitled “Bureau of Land Management Permit Processing,” the bill's passage has won praise from both the American Petroleum Institute (API) and the Independent Petroleum Association of America (IPAA) and comes on the heels of countries from around the world coming to a preliminary deal at the United Nations climate summit in Lima, Peru, to cap greenhouse gas emissions.

We applaud the Senate…and are hopeful the president signs this measure in a timely fashion,” said Dan Naatz, IPAA lobbyist and former congressional staffer, in a press release

Alluding to the bottoming out of the global price of oil, Naatz further stated, “In these uncertain times of price volatility, it’s encouraging for America’s job creators to have regulatory certainty through a streamlined permitting process.”

Streamlined permitting means faster turn-around times for the industry's application process to drill on public lands, bringing with it all of the air, groundwater and climate change issues that encompass the shale production process. 

At the bottom of the same press release, IPAA boasted of its ability to get the legislative proposal introduced initially by U.S. Sen. Tom Udall (D-NMas the BLM Permit Processing Improvement Act of 2014 after holding an “educational meeting” with Udall's staffers. Endorsed by some major U.S. environmental groups, Udall took more than $191,000 from the oil and gas industry during his successful 2014 re-election campaign.

IPAA's publicly admitted influence-peddling efforts are but the tip of the iceberg for how Big Oil managed to stuff expedited permitting for fracking on U.S. public lands into the National Defense Authorization Act of 2015.

Obama Signals Keystone XL "No" on Colbert Report As Enbridge "KXL Clone" He Permitted Opens

In his December 8 “Colbert Report” appearance, President Barack Obama gave his strongest signal yet that he may reject a presidential permit authorizing the Alberta to Cushing, Oklahoma northern leg of TransCanada's Keystone XL tar sands pipeline. 

Yet just a week earlier, and little noticed by comparison, the pipeline giant Enbridge made an announcement that could take the sails out of some of the excitement displayed by Obama's “Colbert Report” remarks on Keystone XL North. That is, Enbridge's “Keystone XL Clone” is now officially open for business

“Keystone XL Clone,” as first coined here on DeSmogBlog, consists of three parts: the U.S.-Canada border-crossing Alberta Clipper pipeline; the Flanagan, Illinois to Cushing Flanagan South pipeline; and the Cushing to Freeport, Texas Seaway Twin pipeline.

Enbridge announced that Flanagan South and its Seaway Twin connection are now pumping tar sands crude through to the Gulf of Mexico, meaning game on for tar sands to flow from Alberta to the Gulf through Enbridge's pipeline system.

Alberta Clipper, now rebranded Line 67, was authorized by Hillary Clinton on behalf of the Obama State Department in August 2009 and got a quasi-official permit to expand its capacity by the State Department over the summer. That permit is now being contested in federal court by environmental groups.

Flanagan South, meanwhile, exists due to a legally contentious array of close to 2,000 Nationwide Permit 12 permits handed out by the U.S. Army Corps of Engineers, which — as with Alberta Clipper expansion — has helped Enbridge usurp the more democratic and transparent National Environmental Policy Act (NEPA) review process