davy crockettYour Texas legislators have done their work and the citizens are safe for the next two years.  The other good news is that industry supporters generally believe the 2015 Legislature was their friend.

House Bill 2: Set aside $4,471,800 to the University of Texas at Austin Bureau for Economic Geology and appointed a technical advisory committee to study the effects of hydraulic fracturing and disposal wells on earthquakes. The Bill authorized seismic equipment, maintenance of seismic networks, and modeling of reservoir behavior in the vicinity of faults. The committee will have nine members appointed by the governor. Two members will represent higher education institutions and have seismic or reservoir modeling experience, two will be experts in the oil and gas industry, and at least one must be a RRC seismologist. The committee will advise the governor and the House Committee on Energy Resources.

House Bill 40:  Preempts local jurisdiction over subsurface operations. This is the legislative response to the ogre that was Denton’s anti-fracking ordinance.

House Bill 1331: Once an operator has transferred drill cuttings to a third party for subsequent beneficial use, such as recycling, the operator can no longer be held liable in tort for consequences of the subsequent use.

Senate Bill 1589: Requires holders of unclaimed mineral proceeds to include more information when reporting to the Comptroller, such as lease, property and well names, and identification numbers used to identify the lease, property or well.

House Bill 2207: An existing oil and gas lease will remain in effect upon the foreclosure of a security interest if the lease was executed and recorded before the foreclosure sale. If the leased property is sold in a foreclosure sale, the rights granted to the lessee to use the surface will be terminated. Royalty payments which become due after the foreclosure sale will pass to the purchaser of the foreclosed property. A subordination agreement would control conflicting provisions of the law.

House Bill 30: Requires regional water planning groups to include opportunities for benefits of developing large scale desalinization facilities. The point is to establish brackish groundwater production zones that would not affect industry’s use of brackish water. The Texas Water Development Board is to study the use of brackish groundwater. As passed the Bill does not create a scheme for the use of brackish groundwater.

The Ones That Got Away (or Euthanized, If You See It That Way)

House Bill 1552: The allocation well Bill. An operator would have been allowed with a RRC permit to drill, operate and produce from wells that traverse multiple tracts. The Bill would have removed doubts about the legality of allocation wells. Royalty and mineral owners defeated this one.

House Bill 3291: Would have established as a second degree felony the possession transporting, removing or purchasing oil and gas or condensate without a RRC permit. Passed in a version that was far different from the original, then  vetoed by the governor. I’m told the reason was because it would have criminalized what has otherwise been a RRC permitting violation. Thieves and some DA’s were pleased, operators were not.

House Bill 1392: The fieldwide unitization effort that has failed in every session since Davy Crockett realized there wasn’t a back door to the Alamo. This year it was known by the catchy “Cenozoic Era Unitization”. Some have been in favor, some not.

To see the text and history of the Bills, go to www.capitol.state.tx.us/.  Under Search Legislation type in bill number (“SB … or HB …), and search.  If it passed, see the “engrossed” version.

Our legislative interludes:

To the supporters of HB 40

To legislators everywhere who can’t get a bill passed

To legislators everywhere who prevent their colleagues from passing a bill

 

 

amniotic fluidFirst, an apology. I have brought shame to my own self and this blog for failing to invoke trigger warnings about activities I will mention again, after the appropriate trigger warning. (I had no idea there were so many.)

Trigger Warning

This post will refer to activities in oil and gas production as they are commonly described in the industry. This post will feature the mindset of the industry and its enemies. Don’t take my word for it. Read the links themselves. First, see James Lileks‘ treatment of trigger warnings in National Review.

Fracking (ouch) had mixed poll results in a recent Gallup Poll.  Perhaps that is because of …

Hysteria

Michael Lynch in Forbes cites emotional, bordering on the ridiculous, claims by anti-frackers, including our favorite Yoko and related anti-fracing groups who resort to demagoguery and overuse and misuse of “frac”.

Women in the oil business, do know what you are? Sandra Steingraber is an environmental activist who “peer-reviewed” the study relied on by Gov. Cuomo to ban fracking in New York. She opined that the only jobs for women in the “fossil fuel industry” are as prostitutes and hotel maids. But then, there is …

Science

Energy in Depth reports that according to the California Council on Science and Technology, five myths by fracking opponents have been debunked:

  • Hazardous chemicals are released by hydraulic fracturing,
  • Hydraulic fracturing directly causes ground water contamination,
  • Fluid injected in the process of fracing causes earthquakes,
  • Upstream oil and gas sources represent small proportions of toxics in certain highly-urbanized areas in the South Coast air district. Eliminating oil and gas production would not eliminate air pollution problems in the San Joaquin Valley. (To be fair about it, oil and gas facilities emit significant air toxics in the area and are responsible for a large fraction of H2S emissions.)
  • Fracturing operations use a large amount of fresh water compared to other human water use.

CCST is a “non-partisan, impartial not for profit corporation established in 1988 by an assembly concurrent resolution to provide objective advice from California’s best scientists and research institutions on policy issues involving science.”

According to a grudgingly favorable report from Treehugger, billions of gallons of treated wastewater from fracking operations are being delivered to California almond and pistachio producers for irrigation.

The Massachusetts Institute of Technology reports that electrodialysis may provide a cost effective treatment of salty water from hydraulic fracturing.  Both of these reports show progress in the important area of water use. Do not let the likes of CERES tell you nobody but them is doing anything about it.

Announcing the Gray Reed Safe Room

By now you are aware of “safe rooms” on college campuses – havens for those youngsters who are so traumatized by ideas that offend their firmly and sincerely held personal beliefs that they can’t function. I learned about the one at Brown University from a source not The Onion and not first presented on April 1st. That’s what you get for $48,272 in annual tuition.

Gray Reed goes one better than Brown.  Sand is an irritant to sensitive young skin, a little one could gag on a chunk of Play Doh, and communing with your inner three-year-old isn’t sufficiently therapeutic. In the Gray Reed safe room there will be the frolicking puppies, but also more! To bring a profound and perfect peace to the utterly infantilized, participants in the Gray Reed safe room will be bathed in a warm, gently flowing stream of amniotic fluid. No harsh abrasives or choking hazards. You can’t get any closer to “home” than that.

A Bo Diddley interlude.

Coming soon: Huckleberry Finn, uncensored.

million dollar quartetThe Texas legislature has been busy on energy.

House Bill 40, similar to House Bills 539 and 540, steamrolled through the House of Representatives last week by a vote of 122 to 18. Reminds us of A L pitchers not rookies and the Rangers’ betting order.

The bill would preempt local control of oil and gas operations. If the bill becomes law political subdivisions could not enact or enforce ordinances that ban, limit or otherwise regulate an oil and gas operation within its boundaries.

Exceptions would be:

  • Above ground activity that governs fire and emergency response traffic, lights, or noise, or “reasonable” setback requirements;
  • That is commercially reasonable;
  • Does not effectively prohibit an oil and gas operation conducted by a reasonably prudent operator (hello Dallas and Denton); and
  • Is not otherwise preempted by state or federal law.

A regulation is prima facie commercially reasonable if it has been in place for at least five years and has allowed oil and gas operations to continue during that period.

See the House Research Organization’s analysis of who’s for and who’s against. You won’t be surprised at the lineups.

What Supporters Say:

  • To satisfy concerns that Railroad Commission surface regulations are insufficient and not enforced, the Legislature should fully fund the Railroad Commission and focus on improving state policies and regulations instead of off-loading that task to municipalities (good luck on the “fully fund” part);
  • The law would affirm the preemptive nature of state oil and gas regulations and reduce litigation (a cause dear to the heart of our legislature, regardless of the side effects);
  • Municipal regulations that effectively ban attempts to exploit natural resources deprive mineral rights owners of their property.
  • The law would affirm the dominance of the mineral estate (as has been the law of Texas since minerals were discovered).
  • The impact of operations are only temporary and can be mitigated by above-ground regulations such as setbacks, fencing, etc.
  • Establishes regulatory certainty.

What Opponents Say:

  • Even basic ordinances intended to insure public health and safety would be prohibited;
  • Effects of operations are felt most acutely at the local level, and municipalities are better equipped than state agencies to understand the effects of operations in their communities.
  • State agencies may not have the political will to enforce regulations to protect public health and the environment.
  • Gaps in state subsurface rules and regulations are filled by local ordinances, which would be preempted.
  • State regulations on oil and gas operations are notoriously weak.
  • Municipalities might have statutory obligations that cannot be performed without limiting subsurface activity.
  • Current law is sufficient to protect property rights. Regulatory takings are not inherently bad; property owners are compensated for a regulatory taking facilitated by municipal regulation.
  • Erosion of property rights is worthwhile if local regulations are necessary to protect neighborhoods from environmental degradation and public health consequences.
  • Oil and gas operations infringe on property rights of surface owners.

What Sam Phillips Did For You Yesterday

After watching Rhodes Baseball take three out of three from Millsaps, we had a holy experience Sunday in Memphis. The 8:00 a.m. Rite I service at Calvary Episcopal Church downtown was one, but I’m really talking about Sun Studio – “The birthplace of Rock and Roll”. Today’s musical interludes are the first studio recordings ever by these artists. What’s so new and different? Nothing, until you consider the best-selling tune of 1952 for perspective. Imagine the world before Rock and Roll and then listen:

Howling Wolf 1952 (not R&R of course, but it set the stage).

Elvis 1953

The Killer 1956

Three more next time, including two gents in the picture.

LesserPrairie-Chicken-Vyn_090420_0194It was an abrupt and remarkable about-face. In a Rose Garden ceremony in the presence of the CEOs of America’s largest oil companies and special guest David Koch (brother Charles remained ball-gagged and handcuffed by the editorial board of The Nation), President Obama signed an executive order fast-tracking construction of the Keystone XL Pipeline and, to the astonishment of all in attendance, promised federal subsidies and loan guarantees to TransCanada Corporation for the facility. In his remarks the president said, “It’s high time the helping hand of my all-powerful and omnipotent administration come to the aid of our country’s most popular and vital industry. Our citizens will no longer be denied the high-polluting, pet-coke discharging, energy-sucking Canadian tar sands oil so necessary to maintain their wasteful and profligate lifestyles and, in the case of Al Gore and Pharrell Williams, that precious fuel that sends their Gulfstream G650’s to the next global-warming summit.

Environmental activist Yoko Ono’s reaction was as lucid as we have come to expect. For their part some Republicans were, as they often are, chagrined, although in this case no one knows why.  (This post is interactive: Visualize your favorite chagrined Republican now).

In other news today:

Sports

LSU quarterback Anthony Jennings appeared on the 2015 Heisman Trophy watch list.  The pundits predict a 72 percent pass-completion rate, achieved solely by screen passes to Leonard Fournette.

Alternative Energy

Prominent environmentalists condemned wind and solar power, remarking that solar is “too hot and burns up too many cute little birds when they fly over”, and wind is “unreliable; its sharp and unforgiving blades pulverize bigger-but-still-cute birds into bite-sized chunks for the coyotes, and its tall towers endanger the lesser prairie chicken, that flightless, cute kind-of-little bird so beloved by the several ranch hands in West Texas who come into contact with the species every year”. Solar is fine for Bubba from Mississippi. “Them critters drop right out of the sky, all fried up good and well done, just how I like ’em. And it saves Lurleen from another day in the kitchen.”

Religion

After 17 ballots the Episcopal Diocese of Dallas elected its first openly gay bishop, who narrowly defeated a Hispanic woman from the Rio Grande Valley and a transgender African-American person from the Diocese of New Hampshire. The early favorite – the middle-aged white guy (Diocese of Quincy, ACNA) – was eliminated early. In his post-election remarks the new bishop, who most-recently served as rector of Saint Stonewall Church of the Heavenly Liberation (Diocese of California) said, “I look forward to the warm and loving embrace – spiritual, of course – of my new flock, where I am destined to encounter, at long last, the  “orthodox” Episcopal church.

Grievance Leftism

Al Sharpton paid his delinquent tax bills, renounced the millions in protection money extracted over the years from major corporations, resigned his membership in posh New York private clubs, took up residence in a cardboard box in Megyn Kelly’s front yard, and began medical treatments to turn himself Caucasian. In a press conference in which all the words were pronounced correctly he rejected his sordid history of race-baiting, apologized to the New York police for the Tawana Brawley incident, and denied that he ever really believed Officer Wilson should in any way be prosecuted for the Michael Brown incident.

And finally this, to explain the day.

Who should decide when, where, how, and even if, hydraulic fracturing should occur?

The locals: “You hypocrites Our good public servants in Austin want ‘local control’ when its against Washington, but deny us the same right.  We know better than you about what’s best for our community. To hell with catastrophic litigation exposure and declining tax revenuesIf you didn’t get a regular royalty check and had to Live next door to a loud, stinky, dangerous industrial operation and then tell me how you’d vote”.

The Lege: “A few ignorant and misguided socialists well-meaning local leaders, abetted by left-wing, Gore-ite, out-of-town agitatorsdispense lies are misinformed, deprive the state of much-needed revenues, and steal private property rights from our campaign contributors brave and visionary explorationists. What’s next, plastic bags?

Austin Doing What It Does – Legislation

Rep. Phil King has introduced two bills relating to fracking. House Bill 539 would add requirements for municipalities that propose petitions or ordinances that will affect oil and natural gas production. The Bill would require cities to make up for any lost revenue as a result of passing a municipal oil and gas ordinance affecting production. Cities would also have to provide a fiscal impact note and an equalized education funding impact statement detailing all associated lost revenue and would be required to reimburse the state for the cost of the measure for a five year period.

Not everyone is enchanted with the bill, especially the Texas Municipal League, who says the bill essentially precludes local governments from regulating oil and gas activities.

House Bill 540 would require a municipality to send any proposed petition that would enact or repeal an ordinance to the Attorney General for review. The AG would determine whether any portion of the proposed measure violates the Texas or federal Constitution, a state statute, a rule, or if it would be considered a governmental taking of private property. If a violation exists, then the petition would not be placed on the ballot.

Even Gov. Abbott has stepped into the fray, admonishing municipalities who have exerted local control over not only fracking, but tree-cutting, bag-banning and gun control.

In Denton – Amending the Drilling Ordinance

The City of Denton has published proposed amendments to their drilling ordinance.

Proposed changes include:

  • Require inspections to be performed by a third party to determine if equipment is properly functioning;
  • Grant authority to the city to map gas pipelines in Denton and its extraterritorial jurisdiction;
  • Increase disclosure requirements of the location of the pad site, existence of wells, possibility of new wells, possibility of more hydraulic fracturing and/or drilling, and possibility of re-working;
  • To minimize surface impact, an operator would be required to select the optimum surface site location within a leased acreage, then capitalize on technological advances to utilize co-location of multiple wells on a single site. Afterwards, the land would be reopened for other development; and leased acreage would be restricted from future gas well drilling;
  • Increase insurance coverage requirements for operators.

The City Council has added this recommendation to their priority legislative issues agenda, aimed at resolving the issue of “vested rights”: “support legislation that would clarify that the state’s vested rights law does not apply to subsurface mineral development as it relates to permits issued by the municipality for oil and gas development activities”.

Which Side Are You On?

An unscientific sample of Dallas Business Journal readers believe, by a 76% to 23% vote, the legislature should be able to limit a city’s ability to regulate oil and gas drilling in its local jurisdiction.

Here is today’s Musical Interlude.

The box scores after election day showed frackers 4, anti’s 4. Courtesy of a gubernatorial grand-slam by Gov. Andrew Cuomo, hydraulic fracturing is now banned throughout the entire state of New York.

In this ballgame within a ballgame, it’s

Yoko and Shawn, the likes of Moveon.org , and wealthy Manhattanites: 1

Mineral owners, asthmatics, underemployed up-staters, and cash-starved municipalities: 0

Producers are safe at home. They will take their bonus money, royalty payments, and jobs elsewhere, such as to other producing states, or just over the border to Pennsylvania.

Why did he do it?

A cynic would say it’s a political decision: He needs the environmentalists for his next election more than the citizens who actually live where production would occur. The professed rationale is that health concerns outweighed economic benefits.

The New York Times reported:

  • The governor said, “I have never heard anyone say to me “I believe fracking is great” . . . “What I get is ‘I have an alternative but fracking’”.
  • The move seems “likely to help repair [Gov. Cuomo’s] ties to his party’s left wing.” (Did we say “cynic”?)
  • In announcing the report, Health Commissioner Dr. Howard Zucker said there was “insufficient scientific evidence to affirm the safety of fracking.”
  • “We can’t afford to make a mistake”, he said. “The potential risks are too great, in fact they are not even fully known”.

Decide for yourself what those explanations really mean, or if they are plausible, but the long and short of it is that unless and until fracking is proven beyond any doubt to be safe in all circumstances, at least under the current thinking there will be no fracking – and thus minimal oil and gas production – in New York. Given the propensity of certain groups to make up what they want out of the available scientific evidence, that is not likely to happen.

Here is the 184-page report if you want to read it. Jillian Kay Melchior of National Review Online summarizes:

  • At his news conference Cuomo said that the commissioners made the decision and “I think I don’t even have a role here”.
  • The first draft of the report, under then-Governor David Patterson, concluded that New York should allow fracking to proceed. Patterson asked for do-over that was followed by years of intensive environmental lobbying.
  • There was a suggestion that prosperity itself poses a public health risk (see p. 6).
  • The report focused on what it referred to as “significant uncertainties about the kinds of adverse health outcomes that may be associated with fracking”.
  • Absolute scientific uncertainty of fracking is unlikely to ever be attained.

What could he have done?

Here is what comes immediately to mind:

  • For communities that might want the economic benefits of oil and gas production, let the  voters decide for themselves.
  • Impose reasonable regulations, as producing states have done.
  • Pay attention to the long and safe history of hydraulic fracturing.

Natural Gas is Evil Because …

It’s cleaner?

The protestors in the Times photo gathered in Manhattan, where air pollution is the lowest it’s been in 50 years thanks to, among other efforts, more natural gas for home heating.

It’s the preferred fuel?

New York City’s Pollution Control Code revisions announced in April by Mayor deBlasio will require certain targets, such as mobile food trucks and char broilers, to be run on natural gas and renewables in order to clean up the atmosphere.

You can count on this

Citizens where the process is legal thank the governor for helping keep the production at home, and for affirming New York’s hostile business environment.

Today’s musical interlude – a big Christmas thank you from the Far Left to the Guv for his Kris Kringle moment.

 

As you probably know, the Denton City Council denied a petition signed by several thousand citizens to ban hydraulic fracturing within the city limits. The denial sent the question to the November 4 general election ballot.  Here is the proposition, its legalese in full bloom:

SHALL AN ORDINANCE BE ENACTED PROHIBITING, WITHIN THE CORPORATE LIMITS OF THE CITY OF DENTON, TEXAS, HYDRAULIC FRACTURING, A WELL STIMULATION PROCESS INVOLVING THE USE OF WATER, SAND AND/OR CHEMICAL ADDITIVES PUMPED UNDER HIGH PRESSURE TO FRACTURE SUBSURFACE NON-POROUS ROCK FORMATIONS SUCH AS SHALE TO IMPROVE THE FLOW OF NATURAL GAS, OIL, OR OTHER HYDROCARBONS INTO THE WELL, WITH SUBSEQUENT HIGH RATE, EXTENDED FLOWBACK TO EXPEL FRACTURE FLUIDS AND SOLIDS

The players

Supporters and detractors of the ban are divided into two predictable groups: Local and national environmentalists on the one hand and producers and local royalty owners on the other. Who’s who and what they say can be seen from their websites:

In support of the ban you have FrackFree Denton.

Against the ban you have Denton Taxpayers for a Strong Economy.

Dig a little deeper, say into campaign finance filings, and you can see whose money is behind the campaigns.  Here is the local Denton Record Chronicle on where the bulk of the money is coming from on both sides.

In the news

Want news on the election? The Denton Record Chronicle evaluates the claims of both sides.

Here is a report from StateImpact, a publication of National Public Radio member stations.

And a comprehensive and pretty fair article from the New York Times.

There is no shortage of opinions

Here is one from the Dallas Morning News.

In another, Eagle Ridge Energy presents a forceful case for the benefits of hydraulic fracturing. They have every reason to have an opinion. Eagle Ridge has been the target of litigation by homeowners and opprobrium by bloggers for their operations in the city limits.

Here is one from Energy in Depth, a non-local group with an interest in fracking everywhere.

The Texas Railroad Commission also has an opinion.

In the spirit of open debate, on these web sites you can read about the “evils” of fracking. I’m not of this mindset, but it’s helpful to know what the uninitiated are hearing.

One from “Texas Sharon“.

And from the environmental group Earthworks, which is working hard in Denton and worldwide to pass the  ban. (Disclaimer:  The photo is Earthwork-like in its extremism, but it is not from Denton.)

Let’s have a live debate?

A debate is scheduled in Denton between FrackNation Producer Phelim McAleer and environmental activist Calvin Tillman on Monday, October 27. Here is the link.

What does it mean?

If the ban passes, litigation.

Failure would be a retreat from overreaction, and maybe a debate about whether Denton needs more neighborhood-friendly drilling oversight.

In the spirit of universal suffrage …

Today’s musical interlude has nothing to do with the topic, unless it’s divine guidance you are seeking (in which case, why are you reading this blog?).  We all get to vote. How do you like your Amazing Grace, … Celtic, …  African, … or Country?

Special thanks to Tricia Davis of the Texas Royalty Council for her help on this post.

“What is it like to live inside your head with Peter Pan and the Easter Bunny?” So asks the sister in “Bridges of Madison County” after the brother wonders if the Meryl Streep and Clint Eastwood characters had sex all those years ago.

And so it is from certain quarters in the hydraulic fracking debate who continue to insist, hysterically and despite the evidence, that the process is a threat to Civilization As We Know It. This post is a summary of several discussions.  Read the articles themselves for details.

Gas Flaring

According to Earthworks, gas flaring in the Bakken and Eagle Ford Shale is out of control and tons of greenhouse gases are being fired into the atmosphere; therefore, we should ban fracking. According to Energy in Depth, Earthworks fails to address that the flaring is significantly decreasing in the Bakken both in percentage of gas produced and actual volume, all as production increases. There is flaring because pipeline capacity hasn’t caught up with new gas production. Flaring will continue to go down as pipeline capacity comes on line. Does anyone seriously believe that the industry is not focused on finding a solution?

Methane Leaks

Speaking of inflammatory emissions, Bill McKibben points to methane leaks as one more reason to ban hydraulic fracturing, now and entirely. This is reported by the Energy Exchange, a publication of the Environmental Defense Fund. To its credit, the EDF disagrees, and also sees methane leaks as bad thing and lobbies for stronger, smart regulations.  Most people can go along with “smart”.

Lest you believe people like McKibben are not a menace to common sense and a safe, abundant and clean energy supply, Energy In Depth reveals the folly of his ideas and the bad “science” on which they are based. Among other points: Hydraulic fracturing has contributed the decrease in GHGs in the United States, a fact proclaimed by the IPCC, of all people, and surveys by McKibben and his colleague Ingraffea have been discredited by organizations such as the US IEA, MIT and other mainstreamers.

“Science” With a Political Agenda

And while we are on the topic of misleading “science”, the Hill published a reply by Isaac Orr of the Heartland Institute to an earlier piece by one Helen Slotttje, who wrote about the perils of fracking. (Preview: It’s Bush’s fault and FDR is on her side. I don’t have enough space here to unpack that point of view.)  Among her other errors is a report on the dangers of fracking by the Colorado School of Public Health that was repudiated by the Colorado Department of Health and Environment.

A musical interlude to accommodate the dark vision  of the likes of Earthworks.

In their search for Utopia, some opponents of oil and gas drilling ignore innovation … What’s harmful now will forever be that way.

The Question

That isn’t true, but it raises a question for producers: What are you doing to reduce the negative effects of your activities on the communities where you operate?

The Answers

Here are examples of the industry investing considerable time, money and effort to reduce its impact on the environment:

  • In Colorado, Anadarko is concentrating hydraulic fracturing operations in “Stim Centers”, locating those operations in a single location, thereby reducing truck traffic, and time and money otherwise spent on setting up.
  • and using pipelines instead of trucks to carry frac water.
  • Noble Energy is using “integrated development plans” to centralize facilities, reducing truck traffic and costs.
  • Marcellus shale producers are recycling 90% of their flowback water, according to Ben Seifer of Energy in Depth.
  • Statoil is reducing flaring and air emissions in the Bakken shale by testing a mobile system that converts associated gas into CNG at the well site.  The gas is then used on the well as a power source.
  • According to the Environmental Defense Fund (not the “Utopians” referred to above) there are cost-effective options to control methane, such as lower-emitting valves and other mechanical improvements.
  • Patrick Kiger in his National Geographic blog tells a similar story. I include his entry for the comments from the “Utopians”.
  • State regulators are focusing on leaking methane.

There is no doubt that many of these efforts are a response to the looming presence of regulators and regulations. That is to be expected. Industries tend to believe they are doing “enough” to satisfy their critics and would prefer to be left alone to run their business. That is not going to happen. Regulators exist to regulate, opponents live to oppose, and no industry can ever do enough to satisfy those two constituencies, even if it means more costs and burdens.

Why Does it Matter?

Why do I speak of this? “The wages of sin …” Oops, wrong venue. “The downside of rapacious destruction of Mother Earth … “ Too shrill, and generally not even true. Here you go: “Powerful forces are against you and if you don’t meet them somewhere in the middle you could be squeezed out of the process.  The result will be excessive and unreasonable regulation.”

What Would Nanook Do?

The risks of pollution could not be portrayed more forcefully than in this musical interlude.

Who is that man on the right?

 

 

 

 

 

a.  Lineal descendant of  Wolfgang Amadeus Mozart,

 

b.  Reincarnation of Froederick Fronkensteen,

 

 

c.  Tootsie … in the later years,

 

 

 

d.  Ernest Moniz, Secretary of the U.S Department of Energy

Other than Solyndra, what comes to mind when you consider the DOE (assuming that’s on your mind when an alternative is the NCAA baseball postseason)?

Many view the DOE as does the CATO Institute. Hear the video describing the DOE’s misguided programs over the years.  Let me summarize their point: Off-load regulation of nuclear energy to another federal agency, let private enterprise handle the rest, and save $25 billion every fiscal year.

If that isn’t enough, here is the agency, like the uninvited relatives who make themselves at home in your guest room and won’t leave, imposing your money and mine on a New Jersey wind farm project that state regulators rejected.

But if you like solar you’ll like this news of a solar power grant to the City of Chicago.

What has the DOE accomplished since 1978?  If its original purpose was to reduce U. S. dependence on imported oil? Not much, if I read between the lines of this recent Time Magazine article, which credits factors other than the DOE for recent progress.

But Let’s Not Jump the Gun 

Oil and gas people, before you get too smug, maybe you‘ve heard that the DOE was responsible for, or at least contributed to, the early research of hydraulic fracturing and horizontal drilling that led to the revolution in shale formation production? The report, complete with testimonials, sounds true.

If you think private enterprise can do most things better than government, you probably still say DOE needs to go, but perhaps you will also admit that it has done some good. Maybe you mean to say we need smarter government, not no government.

Musical Interlude

Let’s acknowledge this Administration’s double-talk on energy policy by considering the two-step. There is Jimmy Dale Gilmore‘s Texas dancehall version, which is nothing like the Eunice Two-Step, this one by Robert Bertrand.  (I chose it because  it has the translation.) These two places are separated by more than  just a narrow river.

Special thanks to cousin Paul Provenza for the inspiration for this post.