Grand Forks Herald: Interior secretary gets firsthand look at Bakken

http://www.grandforksherald.com/event/article/id/270173/

Published August 06, 2013, 11:00 PM

During her first visit to North Dakota as secretary of the interior, Sally Jewell said it’s clear to her that oilfield operators and the state recognize that more work needs to be done to reduce natural gas flaring.
By: Amy Dalrymple, Forum News Service

sally jewell

U.S. Interior Secretary Sally Jewell speaks during a media briefing at a Statoil facility in Williston, N.D., on Tuesday, Aug. 6, 2013. From left are Sen. Heidi Heitkamp, Neil Kornze, principal deputy director for the Bureau of Land Management, Sen. John Hoeven and Lt. Gov. Drew Wrigley. Amy Dalrymple/Forum News Service

WILLISTON, N.D. – During her first visit to North Dakota as secretary of the interior, Sally Jewell said it’s clear to her that oilfield operators and the state recognize that more work needs to be done to reduce natural gas flaring.

“Flaring it and venting it is obviously not capturing resources that could be leading us to energy independence,” Jewell said Tuesday.

Top executives of two oil companies gave Jewell a tour of their North Dakota operations, focusing on technology advancements and efforts to reduce natural gas flaring.

A recent report estimated that $3.6 million in natural gas is burned away each day in North Dakota.

U.S. Sens. John Hoeven and Heidi Heitkamp invited Jewell to tour the Bakken to see the state’s oil and gas development firsthand.

“There is no question that this is the epicenter of many aspects of energy development in this country,” said Jewell, who was sworn in as secretary in April.

Officials who helped lead the tours included Continental Resources CEO Harold Hamm and Statoil Senior Vice President Torstein Hole, who is based in Norway.

Continental Resources gave Jewell a tour of a location adjacent to a residential area in Williston that will have 14 oil wells on the same location, minimizing the footprint on the land.

Statoil showed the group a location in the city limits of Williston that had pipelines in place ahead of time, capturing the natural gas and eliminating the need for of thousands of truck trips to transport oil and water.

Across the state, about 29 percent of natural gas is flared, Hamm said. But Continental Resources flares 10 percent of its natural gas and captures 90 percent, with a goal to reduce the flared amount even further.

“It’s valuable and we collect it all,” Hamm said. “We’re not going to waste those hydrocarbons.”

Hamm said he expects other companies will catch up and bring that percentage down.
“They’re getting there real quick,” Hamm said of other companies.

Statoil currently flares 30 percent of the natural gas it produces due to infrastructure challenges, said Lance Langford, Statoil vice president who oversees Bakken operations.
But the company is working to reduce that percentage through the use of bi-fuel rigs, which use natural gas and reduce the amount of diesel required, and technologies that will extract the valuable natural gas liquids.

Statoil also showed Jewell a pilot project the company is working on to test a compressed natural gas liquids unit.

Jewell, whose background includes working as a petroleum engineer, asked technical questions during the tours, such as how wet the gas is and how operators build a curve to drill horizontally. When touring a drilling rig, Jewell commented that there were “no chains flying around like when I was in the industry.”

Hoeven said the goal of the visit was to emphasize that North Dakota’s approach to energy development, rather than a federal one-size-fits-all model, is producing more energy with better environmental stewardship.

“This country needs to develop a comprehensive energy plan as well,” Hoeven said. “The secretary can be very instrumental in that development.”

As Interior Secretary, Jewell plays a key role in energy development on public and tribal lands. She referenced President Barack Obama’s all-of-the-above energy policy and said “he believes it deeply.”

Jewell said she’s in favor of having federal baseline minimum standards for hydraulic fracturing that would include requirements such as disclosing the chemicals and ensuring the integrity of the wellbore.

While North Dakota and other states are sophisticated, other states don’t have experience regulating fracking, she said.

“There are a number of states that don’t have standards at all,” Jewell said.

If states’ standards meet or exceed the federal standards, operators would follow those state standards, she said.

Heitkamp, Hoeven and Lt. Gov Drew Wrigley, who also participated in the tour, repeatedly emphasized a states-first approach to energy development.

“No one knows the hydrology and geology of North Dakota better than the people who have been studying for years,” Heitkamp said.

Officials also said they are partnering with Jewell on efforts to improve the efficiency of the Bureau of Land Management, which experiences backlogs in keeping up with drilling permit applications in the Bakken.

Jewell’s tour concluded Tuesday with a visit to Theodore Roosevelt National Park.
Jewell also planned to meet with Three Affiliated Tribes Chairman Tex Hall on Tuesday, but he got caught in traffic.

“The fact that he got stuck in traffic when we had a 7 a.m. breakfast meeting says something about the boom going on here,” Jewell said.

Special thanks to Richard Charter

San Francisco Chronicle: AP Analysis: Is this flood board going rogue?

http://www.sfgate.com/business/energy/article/AP-Analysis-Is-this-flood-board-going-rogue-4706285.php

By KEVIN McGILL, Associated Press
Updated 2:05 pm, Sunday, August 4, 2013

NEW ORLEANS (AP) – In a month full of reminders of the perils and costs of offshore drilling – among them one leaky well, one full-scale blowout and spectacular fire and one corporation’s acknowledgment that some evidence pertaining to the 2010 Gulf oil spill was destroyed – July’s biggest splash was made in Civil District Court in New Orleans, where a local flood control authority, some would argue, went rogue.

Foreseeing huge flood-control costs associated with the continued disappearance of Louisiana wetlands, the Southeast Louisiana Flood Protection Authority-East’s board of commissioners filed a lawsuit against scores of oil, gas and pipeline companies. It seeks damages and mitigation for damage allegedly done by decades of dredging and canal-cutting.

Gov. Bobby Jindal issued a scathing criticism of the suit, saying the board was effectively trying to usurp state responsibilities and that the suit would provide a “windfall for trial lawyers.”

It’s worth noting that Jindal issued that statement the day after The Associated Press reported that the law firm of his political ally and former executive counsel has received $1.1 million in no-bid state work. That irony aside, Jindal’s statement raised serious issues. They were spelled out at more length in a letter from his coastal protection chief, Garret Graves, to Timothy Doody, president of the SLFPAE, formed amid post-Katrina reforms to oversee three New Orleans area levee districts.

Without denying the role of oil and gas activities in degradation of the coast, Graves said there are others involved as well. He blames, for example, the U.S. Army Corps of Engineers’ “ongoing, unsustainable river management practices,” and “halfhearted” efforts by BP to continue cleaning lingering oil from the 2010 disaster.

Graves argues that the lawsuit undermines a comprehensive state effort to prevent and mitigate wetlands loss. He argues that state law regulates the local flood control agency’s power to file such a lawsuit and that the governor’s approval was needed before the board reached an agreement with the lawyers filing it.

“Louisiana law and our constitution organize government and place certain responsibilities within accountable entities,” Graves wrote. “However, SLFPAE’s recent decision violates those principles.”

John M. Barry, vice president of the board, responded with a letter praising the work of the state’s Coastal Protection and Restoration Authority, which is headed by Graves. But he rejected Graves’ arguments.

“We are an independent board, expressly designed to be insulated from political pressure – exactly the kind of pressure now being exerted upon us. Our purpose is protecting people’s lives and property,” Barry wrote. “We are supposed to exercise our judgment in how best to do so. We are a board with expertise in flood protection, not politics. Based on our responsibility, expertise and best judgment, we filed this lawsuit.”

He elaborated in an interview, saying the administration based its statements about legality of the contract on a misreading of law. “Our in-house counsel said we had the authority. Before we approached the litigator, the attorney general’s office said we had the authority,” Barry said.

Gladstone Jones, the litigator hired to prepare and file the lawsuit, anticipated the argument, Barry added. “He satisfied himself that we had the authority before he started putting in any of his enormous effort,” he said.

The contingency lawsuit will cost the board nothing if it loses, Barry said. He also answered critics, including Republican U.S. Rep. Steve Scalise, who said the board or the state will have to pay if the board drops the suit.

“If the board is reconstituted by the political process and it voluntarily withdrew the suit, then the attorneys would have to be compensated,” Barry said.

“Will the attorneys get rich if they win? Yes,” Barry added later. But a loss could bankrupt them, he argues. “More importantly, if they win, we should have the money necessary to protect the area from hurricanes.”
___
Kevin McGill is an Associated Press reporter based in New Orleans.
Special thanks to Richard Charter

Bloomberg Policy & Politics: Calling All Keystone (XL) Cops! The Pipeline Hits More Snags

http://www.businessweek.com/articles/2013-08-02/calling-all-keystone-xl-cops-the-pipeline-hits-more-snags

opposes kx

Photograph by Julia Schmalz/Bloomberg

Steyer discusses his opposition to the Keystone XL pipeline during an interview in Washington
(Updates with response from U.S. Department of State’s Office of the Inspector General in the seventh paragraph.)

Three weeks back, when we last checked in on the lively, sometimes absurd fight over the Keystone XL pipeline, opponents of the project had just raised alarm about undisclosed conflicts of interest between ERM (ERM:LN), a U.K.-based company the U.S. State Department has relied on to assess the potential environmental impact of the proposed line, and TransCanada (TRP), the company that wants to build it. Previous conflict of interest allegations about the Keystone XL had led to congressional complaints and an investigation by the Office of the Inspector General. The new disclosures raised the prospect that the project might be further delayed by a new ethics inquiry.

Since then the saga has featured still more twists, including:

• President Obama chuckling (per the New York Times) as he low-balled the number of construction jobs the pipeline might create;

• revelations that a dozen or more state and federal Republican lawmakers apparently sent letters endorsing the pipeline that had been written by fossil fuel lobbyists;

• TransCanada’s announcement of a longer, 1,864-mile, $12 billion pipeline that, if completed, would certainly make good on the company’s name, and make the Keystone XL look more like the Keystone XS; and,

• Claims by the Washington-based Checks and Balances Project that a new U.S. government special investigation is underway over ERM.

As you’d expect, proponents of the pipeline were quick to dismiss the conflict-of-interest charges as a transparent ploy to derail the pipeline’s approval process. Guilty as charged, says Friends of the Earth’s Ross Hammond. His nonprofit engaged in opposition research, as it is called during election campaigns, to turn up the evidence that ERM had worked with TransCanada on projects that it had failed to disclose to the U.S. State Department.

Calling the conflict-of-interest charges tactical, however, doesn’t mean they lack merit. Here, (PDF), for example, is a 2010 document, cached online, in which ERM lists TransCanada as a client. Does this prove that ERM has been biased toward TransCanada in its Keystone assessment? No. But unless this document is a forgery, ERM appears not to have disclosed all it should have to the U.S. government. (ERM declined to comment.)

“The Keystone XL environmental review lost all credibility when ERM lied to taxpayers about what it was up to,” says Tom Steyer, president of NextGen Climate Action. “ERM’s hubris deprives the State Department and the public of the unbiased information they need. A large group of Americans will support Secretary Kerry if he insists on doing the review in a clean, straightforward way—this time, with an honest contractor.”

The State Department maintains that it has the situation well under control. “The selected contractor works directly with and under the sole direction of the Department of State while the applicant pays for the work,” says State official Jennifer Psaki.

Steyer, a semi-retired hedge fund billionaire, is a financial supporter of President Obama, and it’s not hard to imagine that Steyer encouraged Obama to nix Keystone’s development during the president’s most recent visit to Steyer’s home. (Could Steyer be where Obama got his low jobs-created number? Hard to say. Obama’s Keystone remarks have become political sport—”Kremlinology,” even; the Washington Post’s WonkBlog did terrific work fact-checking his figures).

The Office of the Inspector General confirms that it has “initiated an inquiry” into the ERM conflict of interest complaints, and whether or not that goes anywhere, the Keystone faces a second, straight-talking judge in Gina McCarthy, the new Environmental Protection Agency chief. Whether the pipeline proceeds is ultimately up to the President. But the EPA has a role to play: It is reviewing the environmental impact studies that contractors such as ERM have conducted.

When asked about Keystone XL recently, McCarthy first jokingly got up to leave, rather than be put on the spot. Then she replied that the EPA would strive to be “an honest commenter” on the XL plans. Up to now, that honesty (PDF) has been bracing, as the EPA has called the Keystone environmental impact statements insufficient and inadequate not once, but three times.
Wieners (@bradwieners) is an executive editor for Bloomberg Businessweek.

Hamptonroads.com: Groups say drilling tool will disturb Va. marine life

http://hamptonroads.com/2013/08/groups-say-drilling-tool-will-disturb-va-marine-life

NORFOLK August 3, 2012

While oil rigs drilling off the coast of Virginia are still a question mark in the near future, local environmental groups will be making noise about the possibility today.

Beginning at noon, members of Oceana and the Sierra Club will blow horns and clang pots and pans at Waterside Festival Marketplace to symbolize the loud noises made by seismic air guns – devices used to identify oil and gas reserves in the ocean.
“The point is to be noisy,” said Eileen Levandoski, assistant director of the Virginia Chapter Sierra Club. But it won’t be a literal simulation. “We’d be too loud,” she said.

Surveyors use seismic air guns to send blasts toward the sea floor and measure their echoes to identify drilling prospects. The industry says the method hasn’t been shown to hurt marine life and is necessary to open drilling. But environmentalists say it could injure animals and disrupt migration and mating patterns.

“The unique part about this technology is that not only is it that first step (toward offshore drilling), but in and of themselves, the air guns are really, really dangerous and destructive,” said Caroline Wood, Virginia organizer for Oceana’s climate and energy campaign.

The U.S. government has estimated that 138,500 whales and dolphins in the Atlantic Ocean will be deafened, injured or killed by the blasts, according to the Virginia Chapter Sierra Club website. The North Atlantic Right Whale – of which only about 500 remain – is among the species at risk. The demonstration, which will be held from noon to 1:30 p.m., is one of many on the East Coast, Wood said, adding that similar demonstrations will take place in Virginia Beach and Alexandria.

Debate over offshore drilling, which is years away even under supporters’ most optimistic scenarios, is coming to a head this year. The U.S. House in June approved a bill to lift a moratorium on drilling in Virginia waters. The federal government will release a report this fall outlining the environmental impact of East Coast drilling.
Offshore drilling has the potential to create 18,000 jobs in Virginia by 2030, according to Nicolette Nye, vice president of communications and external relations of the National Ocean Industries Association.
Locally, drilling faces opposition beyond environmentalists: The Navy has opposed it in the offshore areas it uses, and the federal government has been reluctant to share royalties with coastal states, which local legislators say is key to their support.

Still, the environmental groups say they will keep making a clatter.
“We just want to make a lot of noise to get people’s attention,” Wood said.

Special thanks to Richard Charter

Dailypress.com: Big hike in dolphin strandings has experts baffled

http://www.dailypress.com/news/science/dp-nws-dead-dolphins-20130803,0,7140056.story

Dead and dying dolphins are washing up on Virginia beaches in numbers that are baffling marine stranding experts, who are hustling to determine the extent and pinpoint the cause. Dolphin beachings aren’t unusual in the summer months, and in a typical July the state might get six such reports. But by Thursday the number for this July had soared to 49 – and Mark Swingle with theVirginia Aquarium & Marine Science Center in Virginia Beach said they have no idea why.

“We really don’t know – I wish we did,” said Swingle. The aquarium’s Stranding Response Team has been gathering dolphin remains from throughout the Virginia coast – including two from Buckroe Beach in Hampton on Tuesday and one from Gwynn’s Island in Mathews County on July 26 – for necropsy and tissue testing. He said it could take two to three weeks to get results.

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“In some ways, we’re trying to rush these tests to try and get a handle on what’s happening,” Swingle said. “We know there’s some sort of disease process going on. There’s no evidence on these animals of any sort of any human interactions.”
The number of reported dolphin strandings in Virginia for a typical year is about 64, he said. So far, the state has already seen 88. The unusual hikes were reported to the National Oceanic and Atmospheric Administration, or NOAA, which runs a network of stranding teams throughout the country.

So far, the only other state reporting an unusual uptick for July is New Jersey, said Maggie Mooney-Seus, spokeswoman for NOAA Fisheries. Their most recent number for New Jersey strandings is 20, but she said that figure might not reflect new strandings over the last couple of days. The state logged four strandings for July in 2012, and seven in 2011.

So far, she said, New York reported 15 dolphin strandings in July, Maryland seven and Delaware one. New York reported only one stranding July of last year, while Maryland and Delaware reported none. If enough unusually high numbers of strandings come in, she said, NOAA will assemble a team of experts to examine the data and necropsy results and determine if it qualifies as an “unusual mortality event.” The last such event in Hampton Roads occurred in 1987-1988, she said, and involved about 740 animals.

While that number was unusual, she said, dolphin beachings in general are not. “Keep in mind we do have strandings,” Mooney-Seus said. “They do occur regularly along our coasts and are caused by a number of reasons. If it’s a large population and living in close proximity, they’re not unlike deer populations or human populations where they can pass things to each other.”

Dolphin strandings can also be caused by entangling in fishing gear, ingesting plastics, toxic algal blooms or red tides, changes in water temperature and the rare vessel strike, as well as diseases like the distemper-like morbillivirus, which can also affect other marine animals such as seals, said Swingle. The stranding team hasn’t seen an uptick in stranding reports of other animals.

Determining the cause of death in a stranding can be hard, he said, especially if it’s not reported right away.
“The main thing is to call as soon as possible, because the sooner we get to the animals, the better the information we can get from them,” Swingle said. “It’s like the whole ‘CSI’ thing – if you have a fresh body, you can get a tremendous amount of information from it. If it sits in the sun for a day, it gets less valuable in terms of figuring out what’s happening.”
Seismic airguns. Meanwhile, environmentalists worry that even more such strandings could occur if geophysical survey companies are allowed to use seismic airguns to search for deposits of oil and gas buried deep beneath the sea floor, including off the coast of Virginia.

Airguns are typically towed behind ships and emit pulses of compressed air in a shock wave described as 100,000 times more intense than a jet engine. The airguns would boom every 10 seconds, day and night for days or weeks at a time.
To protest the plan, Oceana and the Sierra Club plan to make a big noise outside the Waterside Festival Marketplace in downtown Norfolk beginning at noon Saturday. Demonstrators are expected to use horns, vuvuzelas and the like to draw attention to the damage airguns can inflict on marine life and sensitive habitats.

An environmental impact statement released last year by the U.S. Department of the Interior estimated 138,500 whales and dolphins could be injured, deafened or possibly killed by the blasts over an eight-year period. “It’s loud, booming, and it disrupts their activity,” said Eileen Levandoski, assistant director of the Virginia chapter of the Sierra Club. “They depend on hearing to find their food. They can’t communicate with each other and they get lost. When you have a compromised animal with a bacteria or virus, they’re already weakened. You’re adding insult to injury.”

Swingle said seismic airguns have been used in other parts of the world, and “what those impacts may or may not be is open for question.” “Certainly anything that’s dangerous for marine mammals would be concerning,” he added.

President Barack Obama announced in March he was reversing a ban he’d placed on oil lease sales off most of the country’s coasts after the 2010 BP Deepwater Horizon drill rig exploded in the Gulf of Mexico, killing 11 workers and spilling nearly 5 million barrels of oil. Obama’s reversal re-opened the door to potential oil and natural gas exploration and drilling along the Atlantic coast, the eastern portion of the Gulf and part of Alaska.

Oceana and the Sierra Club want the Administration to reject proposals that include airgun use, and phase them out of U.S. waters. But if seismic testing is to occur, it should be done using the least harmful technology, with defined “no activity zones” to protect vulnerable marine habitats and species.

To report a stranding
If you see a beached dolphin or other marine animal, call the Stranding Response Program hotline 24/7 at 757-385-7575.

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