Marcellus Players - Draft

Connecting the Dots: Marcellus Shale Players
DRAFT WORK IN PROGRESS By Dory Hippauf
2012 by Dory Hippauf
Introduction One Sunday afternoon in the summer of 2009 there was a knock at our door. It was a landman from Encana. He wanted us to sign a gas drilling lease; we agreed to look it over. e didn!t know much a"out gas drilling and what it would mean to our area. #lthough we only have $%& of an acre this was our little 'iece of heaven( from the woods "ehind our home to the view of the Endless )ountains. I "egan searching the internet to learn a"out the )arcellus Shale *ormation and gas leases. )uch of what I found was industry talking 'oints 'romising a lot of money for leases in the form of a signing "onuses and royalties. +he money would "e nice( "ut what was the real cost, +he industry talking 'oints didn!t say. # local grou'( -as .rilling #wareness /oalition of 0u1erne /ounty "egan holding informational meetings and we went to learn the other side of the issue( the risks( and the 'otential ha1ards. I am naturally ske'tical of what I am told "y any grou'( or cor'oration. )y rule of thum" is to disregard half( and verify the rest 2 so "ack to -oogle I went and did my own digging. +his resulted in my "ecoming more involved with -.#/ and going "ack to -oogle to check out the various -as /or'orations o'erating in )arcellus Shale. #s I researched -as /or'orations( I found certain names a''earing in con3unction with other -as /or'orations. I soon reali1ed that 3otting down names was not the way to go( and the )arcellus -as 4lay 4layers s'readsheet was "orn.
/onnecting the .ots5 )arcellus Shale 4lay 4layers
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Chapter 1 You Can't Tell the Players Without a Scorecard! +he )arcellus -as 4lay 4layers s'readsheet is very much a work in 'rogress. +o date( it contains over $(700 names of gas cor'orations( their leadershi'( and "oards of directors( lo""yists( astro8turf grou's( industry organi1ations and 'oliticians. One dot leads to another and creates a very interesting 'icture of how gas drilling and 'olitics mi9. If anyone tells me that cor'orate money does not influence 'olitics 2 'lease let me know where you live( "ecause it sure isn!t in #merica. +he amount of money 'ouring into 4ennsylvania from the gas cor'orations is outrageous. 4ennsylvania does not have cam'aign donation limits for state offices 2 it!s unlimited and its 'ower is enormous. Marcellus Money.org1 : Excerpt The natural gas industry gave $7,175,234 to Pennsylvania candidates and Political Action Committees (PACs !rom 2""" through the end o! 2"1", according to a Common Cause#Pennsylvania (CCPA analysis released today$ $3,442,212 %as donated to elected o!!icials currently in o!!ice$ The to& reci&ient remains 'overnor Tom Cor(ett, %ith a total $1,)34,"*) in contri(utions !rom the natural gas industry$ Cor(ett raised $1,"+3,315 o! that total in 2""*,2"1" !rom 21) donations$ -e is !ollo%ed (y .enate President Pro Tem&ore /ose&h .carnati, %ith $2*3,333$ 'iving (y the industry dou(led !rom the 2""+ election cycle ($1,""4,757 to the 2"1" election cycle ($2,)"+,1+7 $ 0et!s take a look at one of the donors and the reci'ient.
)arcellus )oney( htt'5%%www.marcellusmoney.org% $ of 267
!oc"ey# $as and Political Ca%paigns
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In *e"ruary 2066( ;looms"urg re'orts ;illionaire +erry 4egula2 "ought the <ational Hockey 0eague!s ;uffalo Sa"res. hat does hockey have to do with gas drilling, )ay"e nothing( and may"e in the case of +erry 4egula 2 a lot. &n 'e(ruary )*# )+11 the ,u--alo .e/s reported * Excerpt Pegula drew violations as gas driller 0n the course o! ma1ing his !ortune, the 2lorida (illionaire, negotiating to (uy the 3u!!alo .a(res, contri(uted heavily to &oliticians in a &osition to advance his (usiness interests and esta(lished a less,than,stellar trac1 record in the environmentally dicey (usiness o! drilling !or natural gas, The 3u!!alo 4e%s has !ound$ A ne%s revie% o! com&liance records !ound 5ast 6esources, the com&any Terrence 7$ Pegula sold last summer !or $4$7 (illion, had a middling record o! com&lying %ith environmental regulations in Pennsylvania, his (ase o! o&erations$ The com&any last year &aid the largest regulatory !ine in its history and %as involved in a s&ill o! to8ic %aste%ater that resulted in the !irst 9uarantine o! cattle in the history o! natural gas drilling in the state$ 4 'ro% Collegian&nline Septe%(er )0# )+1+ article1 Excerpt :n .e&t$ 17, Pegula announced his donation o! $++ million ; the largest &hilanthro&ic act in university history ; to hel& !und a state,o!,the,art ice arena, as %ell as the addition o! men<s and %omen<s 4CAA =ivision 0 hoc1ey &rograms to his alma mater (Penn .tate $3uying a -oc1ey Team, (ig donation to Penn .tate $ here did the money come from, 2oyal 3utch Shell Scoops 4p East 2esources -or 50.6 ,illion 7 ;y +om +aulli 4osted 605:=#) 0:%27%60 Energy( /om'any <ews Excerpt5 A(out a year ago, &rivate,e9uity !irm >>6 struc1 a $35" million deal to invest in 5ast 6esources, a natural gas e8&loration and develo&ment com&any !ocused on an area called the 7arcellus .hale, %hich stretches !rom :hio and ?irginia to 4e% @or1$ At the time, the transaction got little !an!are$
Natural-Gas Billionaire Pegula Purchases NHL's Buffalo Sabres, By Michael Buteau - Feb 1, 2 11, Bloo!berg, htt"#$$%%%&bloo!berg&co!$ne%s$2 11- 2- 1$natural-gas-billionaire-"egula-"urchases-nhl-s-buffalo-sabres&ht!l ' Pegula (re% )iolations as gas (riller, By *a!es Heaney, *anuary ' , 2 11, BuffaloNe%s&co!, htt"#$$%%%&buffalone%s&co!$city$article'2+,-.&ece , / Frac0ing First in Pennsyl)ania# 1attle 2uarantine, by Nicholas 3usnet4, ProPublica, *uly 2, 2 1 , htt"#$$%%%&"ro"ublica&org$article$a-frac0ing-first-in-"ennsyl)ania-cattle-5uarantine . Pegula's (onation !a0es hoc0ey ha""en 6erry Pegula, of Boca 7aton, Fl&, s"ea0s about his 8-- !illion (onation for a ne% hoc0ey arena on Fri(ay, By /nthony Barton, 1ollegian Staff 9riter, Se"te!ber 2,, 2 1 , htt"#$$%%%&collegian&"su&e(u$archi)e$2 1 $ :$2,$"egula&as"; + 7oyal <utch Shell Scoo"s =" >ast 7esources for 8,&? Billion, By 6o! 6aulli, .$2-$1 , <ailyFinance&co!, htt"#$$%%%&(ailyfinance&co!$2 1 $ .$2-$royal-(utch-shell-buys-east-resources$ /onnecting the .ots5 )arcellus Shale 4lay 4layers > of 267
Aell, no% itBs getting lots o! attention$ :n 2riday, 6oyal =utch .hell (6=. announced it had agreed $4$7 (illion in cash !or most o! the assets o! 5ast 6esources$ In 4ennsylvania the su"3ect of gas drilling was "eginning to heat u'( and it was also mid8term elections. +he future of gas drilling would de'end heavily on who would "e -overnor. +here is no cam'aign donation limit in 4ennsylvania. #nyone can give any amount to any candidate. /or'orate wallets and 4olitical /am'aign are wide o'en. #''ro9imately on Se'tem"er 20605 Pegula Marcellus Shale 3e8elop%ent $ood -or 4s6 E9CE2PT C0! you could tell students here at Penn .tate one thing, %hat %ould it (eDE -e (Pegula &aused !or Fust a millisecond (e!ore saying, " I would tell students that this contribution could be just the tip of the iceberg, the first of many such gifts, if the development of the Marcellus Shale is allowed to proceed." 4enn State wasn!t the only "eneficiary of the 4egula!s fortunes. :i% Pegula; ?+erry!s wife@ donated A670(000 to +om /or"ett!s cam'aign for -overnor. Terry Pegula< donated A600(000 to +om /or"ett!s /am'aign for -overnor Bim and +erry "oth list their em'loyer as Coyal .utch Shell5 PE$4=># :IM1+ +otal -iven to .ate5 A670(:00 ?& records@ /ontri"utor +y'e5 Individual #ddress5 ;O/# C#+O<( *0 Em'loyer5 E#S+ CESODC/ES I</ Occu'ations 0isted5 HO)E)#BEC( EEE/D+IFE 4arent Organi1ation5 2&Y>= 34TC! S!E== PE$4=># TE22E.CE11 +otal -iven to .ate5 A600(:00 ?2 records@ /ontri"utor +y'e5 Individual #ddress5 ;O/# C#+O<( *0
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Pegula# Marcellus Shale <e)elo"!ent Goo( for =s, Se"te!ber 2 1 , @n%ar(State&co!, htt"#$$on%ar(state&co!$2 1 $ :$1-$"egula-!arcellus-shale-(e)elo"!ent-goo(-for-stu(ents$ Follo%6heMoney&org, Pennsyl)ania 2 1 , 1ontributions to 1@7B>66, 6@M A 1/9L>B, *CM htt"#$$%%%&follo%the!oney&org$(atabase$StateGlance$contributorD(etails&"ht!lE AcF12'--'AiF''AsFP/AyF2 1 Asu!!aryF1AsoFaAfilterG.bG.(F"egulaAfilterG.bG.(FAfilterG.bG.(FAfilter G.bG.(FHsorttable : ibi( 1 ibi( 11 ibi( /onnecting the .ots5 )arcellus Shale 4lay 4layers = of 267
Em'loyer5 E#S+ CESODC/ES I</ Em'loyers 0isted5 E#S+ CESODC/ES( SE0* Occu'ations 0isted5 4CESI.E<+ G /EO( CE+ICE. 4arent Organi1ation5 2&Y>= 34TC! S!E== Per Source Watch1) 5 4egula and his wife( BimHs( donations to lo""ying grou's and candidates accounted for 6: 'ercent of all donations "y the fracking industry. Political 3onations (y Co%pany Execs Senior management has donated large amounts of money to 'oliticians( front grou' 4#/s and the Ce'u"lican <ational /ommittee. Pegula and his /i-e# :i%# /ere -re?uent -unders o- pro@drilling politicians. :i% Pegula donated the %ost %oney in )+1+ to a single candidate 5*7+#+++ to To% Cor(ett. 4egula and his wife are also ma3or contri"utors at the federal level( with donations of A60>($:0 since 200> to the <ational Ce'u"lican Senatorial /ommittee and national and state Ce'u"lican committees. 4egula has also donated to his alma mater. In Se'tem"er 2060( he gave A77 million to "uild a .ivision I arena for 4enn StateHs hockey team. Penn State is also the ho%e o- The Penn State Marcellus Center -or &utreach and 2esearch. The center -unds research -or the ad8ance%ent o- %ethane drilling technology and procedures in the Marcellus Shale area. They are currently conducting a study on the sa-ety o- tap /ater in the ho%es surrounding the /ells and -rac"ing sites o/ned (y East 2esources and Shell. Politicians /ho recei8ed contri(utions $o8ernor To% Cor(ett A2@Pa.B# $u(ernatorial Candidate =ynn S/ann A2@Pa.B# Senator 3on White A2@Pa.B# Senator Coseph Scarnati A2@Pa.B# Congress%an $lenn Tho%pson A2@Pa.B and Senator Patric" Too%ey A2@Pa.B ;elow is a list of East Cesources em'loyee contri"utions "etween 2002820605 Terrence and :i% Pegula @ CE& and President @ 57*+#+++ Co"ert 0ong 8 E9ecutive Fice 4resident 8 A:0(000 illiam *ustos 8 /hief O'erating Officer 8 A=(000 Iack Showers 8 .irector of /ommunity Celations and Cegional #ffairs for East and Shell 8 A6(:00 4aul .udenas 8 Engineer 8 A6(000 =o((ying #ccording to /ommon /auseHs J.ee' .rilling( .ee' 4ockets6$J( 4egula and his wife( BimHs( donations to lo""ying grou's and candidates accounted for 6: 'ercent of all donations "y the fracking industry. In <ovem"er 2060 +om /or"ett "ecame -overnor +om /or"ett. +he gas drilling issue is a 'riority for the new governor( so he decides to form a committee to make recommendations.
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Source9atch, >ast 7esources, htt"#$$%%%&source%atch&org$in(e;&"h"EtitleF>astD7esources <ee" <rilling, <ee" Poc0ets, 1o!!on 1ause, htt"#$$%%%&co!!oncause&org$site$""&as"EcF(0LN31M2C%GAbF+?21.'' 7 of 267
March )+11 2 $o8ernor Cor(ett announces the -or%ation o- the Marcellus Shale >d8isory Co%%ittee10. One of the newly a''ointed committee mem"ers is none other than Terry Pegula. I!m so sur'rised. <O+. .o8e%(er )+11 D The Penn State Sandus"y Scandal (rea"s Pegula silent on Penn State11 <ovem"er 9( 2066( 665&9 4) Excerpt Ahat does Aestern 4e% @or1Bs most &rominent Penn .tate alum and (ooster thin1 o! the se8,a(use scandal allegedly involving !ormer de!ensive coordinator /erry .andus1y that has roc1ed the universityD .o !ar, heBs silent$ 3u!!alo .a(res o%ner Terry Pegula has declined to ma1e any comment on the chaotic situation at his alma mater that resulted in Aednesday nightBs !irings o! !oot(all coach /oe Paterno and &resident 'raham .&anier$ Pegula addresses Penn State situation17 ;usiness *irst "y Iames *ink( ;uffalo ;usiness *irst Ce'orter *riday( <ovem"er 66( 2066( 62520am ES+ Excerpt Cli-- ,enson( 4egula!s close friend who hel'ed "roker the deal to "uy the Sa"res and is now a team e9ecutive( is listed as a (oard %e%(er o- the The Second Mile( an agency founded "y Sandusky in 699=( that aids at8risk youth in 4ennsylvania. Terry Pegula stands (y 5;;M donation to Penn State# (ut de%ands school o--icials 'co%e clean'16 4u"lished5 *riday( <ovem"er 67( 2066( $5&2 4) D'dated5 *riday( <ovem"er 67( 2066( 6052= 4) Excerpt Terry Pegula, the Penn .tate alumnus %hose $++ million gi!t !unded t%o =ivision 0 ice hoc1ey &rograms, said this %ee1 heBs Gstanding (ehind the universityG in the %a1e o! a child se8 a(use scandal, (ut also had candid %ords !or university o!!icials in an intervie% %ith Canadian s&orts net%or1 T.4$ Pegula also told TS he intends to be more active in university affairs in the wa!e of the scandal to ma!e sure "the right things are done."
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Go)ernor 1orbett /nnounces For!ation of Marcellus Shale /()isory 1o!!ission, Prne%s%ire&co!, March -, 2 11, htt"#$$%%%&"rne%s%ire&co!$ne%s-releases$go)ernor-corbett-announces-for!ation-of-!arcellus-shale-a()isory-co!!ission11?.:'':'&ht!l 1. Pegula silent on Penn State, BuffaloNe%s&co!, No)e!ber :, 2 11, htt"#$$%%%&buffalone%s&co!$s"orts$sabresnhl$article+2++1 &ece 1+ Pegula a((resses Penn State situation, Business First by *a!es Fin0, Buffalo Business First 7e"orter, No)e!ber 11, 2 11, htt"#$$%%%&bi4Iournals&co!$buffalo$blog$!orningDroun(u"$2 11$11$"egula-a((resses-"enn-state-situation&ht!lE"ageF2 1? 6erry Pegula stan(s by 8--M (onation to Penn State, but (e!an(s school officials 'co!e clean', Fri(ay, No)e!ber 1-, 2 11, Patriot Ne%s, htt"#$$%%%&"ennli)e&co!$!i(state$in(e;&ssf$2 11$11$terryD"egulaDstan(sDbyD--!D(on&ht!l /onnecting the .ots5 )arcellus Shale 4lay 4layers 9 of 267
Is +erry 'ushing for the "ig chair as 4resident of 4enn State( or a seat at the +rustee!s ta"le, #nd will )arcellus -as .rilling take even more control over 4enn State and other institutions of higher education, #lthough 2062 isnHt an election year for 4# -overnor( /or"ett is already filling his cam'aign coffers for 206&. He currently has A2(=:7($2>67. :i% Pegula has already tossed hi% 51+#+++
Oil G -as contri"utions( as a sector( comes in at 2nd 'lace. E9'ect that num"er to increase significantly the closer we get to 206& elections
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Follo%6heMoney&org, Pennsyl)ania 2 12, 1@7B>66, 6@M A 1/9L>B, *CM, htt"#$$%%%&follo%the!oney&org$(atabase$StateGlance$stateDcan(i(ates&"ht!lEsFP/AyF2 12AfFGAfilterG.bG.(FAfilter G.bG.(FAfilterG.bG.(FG@J>7N@7G2 $G2 LC>=6>N/N6G2 G@J>7N@7Hcan(i(ateselect /onnecting the .ots5 )arcellus Shale 4lay 4layers 60 of 267
> 'rac"er gets a Crac"er #fter > months of "udget cutting things like healthcare( education and the .E4 all in the name of Kreducing the deficitL( Bevin Harley( s'okesman for -ov. +om /or"ett( confirmed a deal on the so8called ethane cracker ta9 credit. Coyal .utch Shell 'lc 69 has an o'tion to 'urchase land near )onaca for the 'lant Cor(ett &ro&osed a $)) million annual ta8 credit !or .hell and other com&anies that can (e lured to the state to drill !or natural gas in the 7arcellus shale !ormation$ ;etween 200982066( Coyal .utch Shell has given /or"ett A$7:(000 20. Over all( Coyal .utch Shell has made cam'aign contri"utions to 4ennsylvania 0egislators amounting to A&0:(92: ?figure includes donation to /or"ett@ from 200082066. Stack it u' against a A>>.000(000 yearly ta9 credit over 2: years( and it is a very good return on their investment.
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<eal struc0 on ta; cre(it for ethane crac0er "lant in Bea)er 1ounty, By Bra( Bu!ste(, *une 2-, 2 12, 6ribLi)e Ne%s, htt"#$$tribli)e&co!$ne%s$211:.,2-?,$ta;-"lant-corbett-shell-state-cre(it-bill-billion-bu(get-go)ernor 2 Marcellus Money, 7oyal <utch Shell, htt"#$$!arcellus!oney&org$co!"any$shell /onnecting the .ots5 )arcellus Shale 4lay 4layers 66 of 267
Chapter ) Chesapea"e Energy D Pee"ing ,ehind the Curtain 'ood%in said there are limited %ays to &unish a cor&oration$ G0t is not a li!e$ 0t is not a (eing$ 0t canBt go to Fail,G he said$ GThe only thing that it can do is hel& ma1e sure something li1e this doesnBt ha&&en again$G , H$.$ Attorney 3ooth 'ood%in s&ea1ing a(out Aest ?irginia 7ine .ettlement, =ecem(er ), 2"1121 CCor&orations are &eo&le, my !riend,E 2ormer 'overnor 7itt 6omney at 0o%a .tate 2air$ August 2"1122 G0Bll (elieve cor&orations are &eo&le %hen Te8as e8ecutes one$G I Hn1no%n In Se'tem"er of 2066( #u"rey )c/lendon( /EO of /hesa'eake Energy 2$( stood "efore an audience of industry regulars at a conference in 4hiladel'hia. GAhat a glorious vision o! the !utureJ 0tBs cold, itBs dar1 and %eBre all hungry,G said 7cClendon, %ho co,!ounded :1lahoma City,(ased Chesa&ea1e, the most active gas driller in the 7arcellus .hale and nation%ide$ G0 have no interest in turning the cloc1 (ac1 to the dar1 ages li1e our o&&onents do$G )any families across the )arcellus Shale 'lay feel like they are in the dark ages. +hey may not "e cold( they may not "e hungry( "ut they are thirsty since their water wells turned "ad( or very sick from drinking the "ad water. ater #uthority 4resident <orman right of 4lainview( +9( said K ithout water we have no future.J2&( u'on signing a deal with +. ;oone 4ickens! com'any )esa ater( for the transfer of water rights on 266(000 acres of land. 3E'I.E Y&42 TE2MS ;efore we /onnect the .ots of /hesa'eake Energy( let!s define three terms. *ront -rou's or *ront Organi1ations 2 # front organi1ation is any entity set u' "y and controlled "y another organi1ation( such as intelligence agencies( organi1ed crime grou's( "anned organi1ations( religious or 'olitical grou's( advocacy grou's( or cor'orations. *ront organi1ations can act for the 'arent grou' without the actions "eing attri"uted to the 'arent grou'. *ront organi1ations that a''ear to "e inde'endent voluntary associations or charita"le organi1ations are called front grou's. In the "usiness world( front organi1ations such as front com'anies or shell cor'orations are used to shield the 'arent com'any from legal lia"ility. In
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Mine Settle!ent Cs Cn, But 1losure Cs 6ougher, by Ho%ar( Ber0es, NP7, <ece!ber +, 2 11, htt"#$$%%%&n"r&org$2 11$12$ +$1,'22,'+-$fe(eral-officials-issue-re"ort-on-!assey-e;"losion 22 Mitt 7o!ney says Kcor"orations are "eo"leL at Co%a State Fair, By Phili" 7uc0er, /ugust 11, 2 11, 6he 9ashington Post, htt"#$$%%%&%ashington"ost&co!$"olitics$!itt-ro!ney-says-cor"orations-are-"eo"le$2 11$ -$11$gC2/B%M'-CDstory&ht!l 2' 1hesa"ea0e 1>@ /ubrey Mc1len(on blasts anti-(rilling acti)ists, By MC1H/>L 7=BCN3/M, /ssociate( Press, :$-$2 11, htt"#$$%%%&tulsa%orl(&co!$business$article&as";EsubIecti(F,:Aarticlei(F2 11 : -D,:D>1D=LNSur-2+2,2, Grou" buys Mesa 9ater rights, /!arilloo Globe Ne%s, *une 2,, 2 11, htt"#$$a!arillo&co!$ne%s$local-ne%s$2 11- +2,$grou"-buys-!esa-%ater-rightsH&6u6H'1a2Dc% /onnecting the .ots5 )arcellus Shale 4lay 4layers 62 of 267
international relations( a 'u''et state is a state which acts as a front ?or surrogate@ for another state. #stro8+urf 8 refers to a''arently grassroots8"ased citi1en grou's or coalitions that are 'rimarily conceived( created and%or funded "y cor'orations( industry trade associations( 'olitical interests or 'u"lic relations firms. -reenwash or -reenwashing 8 Is a form of s'in in which green 4C or green marketing is dece'tively used to 'romote the 'erce'tion that a com'anyHs 'olicies or 'roducts are environmentally friendly. 'ront $roup >%erican Clean S"ies 'oundation #merican /lean Skies *oundation ?#/S*@2: is a :06?c@?$@ non'rofit organi1ation devoted to research and de"ate on clean energy. #/S*Hs mission is to 'romote understanding and discussion of issues related to energy88to e9'and #mericaHs energy o'tions. It was founded in 200=. The ,oard o- 3irectors -or >CS' )7 consists of5 >u(rey :. McClendon /hairman of the ;oard; and /hairman of the ;oard and /hief E9ecutive Officer( /hesa'eake Energy /or'oration 2alph Eads III /hairman( Energy Investment ;anking -rou' of Ieffries G /om'any Inc. 2o(ert >. !e-ner III *ounder and owner of -HB E9'loration; #uthor >ndre/ C. =ittle-air 4resident and /hief E9ecutive Officer( /lean Energy Tho%as S. Price# Cr. Senior Fice 4resident( /or'orate .evelo'ment( /hesa'eake Energy /or'oration $regory C. Staple /hief E9ecutive Officer( #/S* +he K#/+IFI+ESL2= section of #/S* states5 The 2oundation has an active energy &olicy and research &rogram$ Ae also &rovide !unding !or energy4:AK, an editorially inde&endent T? ne%s magaLine on America<s maFor energy and environmental challenges$ The &rogram is distri(uted nationally (y 3loom(erg T? and (y the A3C a!!iliate in Aashington =C
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/!erican 1lean S0ies Foun(ation, htt"#$$%%%&cleans0ies&org$ /!erican 1lean S0ies Foun(ation Boar( of <irectors, htt"#$$%%%&cleans0ies&org$"(f$acsf-boar(&"(f 2? /!ercian 1lean S0ies Foun(ation, /bout, htt"#$$%%%&cleans0ies&org$about$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 6$ of 267
/onnecting the dots is not always a straight line from 4oint # to 4oint ;. )ore often than not there are many connections from 4oint # to other 'oints. e!ll follow one of those connections now. >ndre/ C. =ittle-air( #/S* .irector is also 4resident and /hief E9ecutive Officer of /lean Energy. He is also Fice 4resident of the +. ;oone 4ickens *oundation.27 )r. 0ittlefair is 4resident and /EO of /lean Energy *uels29( and +. ;oon 4ickens is on the ;oard of .irectors for /lean Energy *uels$0. /lean Energy *uels is a K-O0. )E);ECL of Bentucky /lean *uels /oalition$6. )r. 0ittlefair is /hairman of the <atural -as Fehicles for #merica$2 and has "een a ;oard )em"er and Officer for 60 years. )r. 0ittlefair was an officer at )esa Inc.( and served in various ca'acities for 60 years. )r. 0ittlefair served in the Ceagan hite House from 697$2697=. ?/hesa'eake Energy is also a mem"er of <-F#merica $$( as are several other natural gas drilling cor'orations.@ T. ,oone Pic"ens( .irector of /lean Energy *uels. )esa 4etroleum( *ounder$&5 On the verge of "ankru'tcy in 699>( )esa 4etroleum was acMuired "y 'rivate eMuity firm Cainwater( Inc.( which renamed the com'any 4ioneer <atural Cesources. )esa 4ower -rou'( *ounder$:5 )esa 4ower -rou' founded the #merican #lliance in 2009. ind
)esa ater( *ounder5 Sold to /anadian Civer )unici'al ater #uthority. Per 3looms(urg, Pic1ens Aater,to,6iches =ream 2iLLles as Te8as Cities 3uy 6ights3), 3y =avid 7ilden(erg, /uly 14, 2"11 CPic1ens, +3, started (uying %ater rights northeast o! Mu((oc1 and Amarillo more than 1" years ago$ 3y 2""2, the investor %as &redicting that he could start selling %ater in three years to the =allas,2ort Aorth area, .atter%hite said$ Pic1ens sought to (uild a $3 (illion &i&eline to the !ourth, largest H$.$ metro&olitan area (y &o&ulation, 35" miles (5)" 1ilometers a%ay, yet couldn<t ma1e a deal$E
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6& Boone Pic0ens Foun(ation, @fficers, htt"#$$%%%&tboone"ic0ensfoun(ation&org$aboutDfoun(ation&as" 1lean >nergy Fuels Manage!ent, htt"#$$in)estors&cleanenergyfuels&co!$!anage!ent&cf! ' 1lean >nergy Fuels, Boar( of <irectors, htt"#$$in)estors&cleanenergyfuels&co!$(irectors&cf! '1 3entuc0y 1lean Fuels 1oaltion, htt"#$$%%%&0entuc0ycleanfuels&org$!e!bers$!e!bershi"&ht! '2 Natural Gas Jehicles for /!erica, htt"#$$%%%&0entuc0ycleanfuels&org$!e!bers$!e!bershi"&ht! '' Natural Gas Jehicles for /!erica, Natural Gas /n( Bio!ethane Pro(ucers, htt"#$$ng)a!erica&org$aboutDus$!e!berco!"any&ht!l ', Mesa Petroleu!, NN<B, htt"#$$%%%&nn(b&co!$co!"any$1,?$ 1??+1'$ '. 6& Boone Pic0ens Cn)ests in 9ater - Shoul( BouE, See0ing /l"ha, *an 1?, 2 ?, htt"#$$see0ingal"ha&co!$article$2,,1 -tboone-"ic0ens-in)ests-in-%ater-shoul(-you '+ Pic0ens 9ater-to-7iches <rea! Fi44les as 6e;as 1ities Buy 7ights, Bloo!sburg, By <a)i( Mil(enberg, *uly 1,, 2 11, htt"#$$%%%&business%ee0&co!$ne%s$2 11- ?-1,$"ic0ens-%ater-to-riches-(rea!-fi44les-as-te;as-cities-buy-rights&ht!l /onnecting the .ots5 )arcellus Shale 4lay 4layers 6& of 267
;4 /a'ital 04( /hairman and /hief E9ecutive Officer $=5 <O+E ;4 does not stand for ;CI+ISH 4E+CO0ED)( 'resuma"ly the K;4L denotes ;OO<E 4I/BE<S initals. E9co Cesources Inc( .irector$7 4er +he 4ickens 4lan$95 CAmerica<s de&endence on :P5C oil !orms the intersection o! the three most critical issues America currently !acesJ the economy, the environment, and our national security$ America is (lessed %ith enormous reserves o! clean natural gas$ The Pic1ens Plan utiliLes this tremendous resource to (uild a (ridge to the !uture ; a (lue&rint to reduce :P5C oil de&endence (y harnessing domestic energy sources and (uying time !or us to develo& ne% technologies to harness %ind and solar &o%er and enhance the e!!iciency o! our electrical grid$E Matthe/ EMattF PitGarella0+( contri"utor to /lean Skies 2 the Energy and Environment <etwork. /lean Skies is s'onsored "y the #merican /lean Skies *oundation. )r. 4it1arella is the .irector of /or'orate /ommunications for Cange Cesources&6. #t an Oil Industry /onference in Houston( +E( a grou' of 'rofessionals assem"led to discuss Kmedia and stakeholder relationsL in the hydraulic fracturing ?fracking@. +he <atural -as Industry /or'orations are a"out their 'u"lic image. &il Executi8e Military@Style 'Psy &ps' Experience >pplied 0) Excerpt 0n a session entitled C=esigning a 7edia 6elations .trategy To :vercome Concerns .urrounding -ydraulic 2racturing,E 6ange 6esources communications director Matt Pit"arella s&o1e a(out sta1eholder concernsE a(out the !rac1ing &rocess$
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CAe have several !ormer &sy o&s !ol1s that %or1 !or us at 6ange (ecause they<re very com!orta(le in dealing %ith localiLed issues and local governments,E PitLarella said$ C6eally all they do is s&end most o! their time hel&ing !ol1s develo& local ordinances and things li1e that$ 3ut very much having that understanding o! &sy o&s in the Army and in the 7iddle 5ast has a&&lied very hel&!ully here !or us in Pennsylvania$E
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BP 1a"ital, Manage!ent, htt"s#$$%%%&b"ca"&net$cgi-bin$!anage!entDtea!&"l >;co 7esources, <irectors, htt"#$$%%%&e;coresources&co!$(irectors&ht! ': Pic0ens Plan, /bout, htt"#$$%%%&"ic0ens"lan&co!$about$ , Matt Pi4arella, 1lean S0ies, htt"#$$cleans0ies&t)$in(e;$!att-"it4arella- &ht!l ,1 Matt Pi4arella, 7ange 7esources, htt"#$$"h;&cor"orate-ir&net$"hoeni;&4ht!lEcF1 11:+A"Firol-ne%s/rticleAC<F1.?:?-: ,2 @il >;ecuti)e# Military-Style 'Psy @"s' >;"erience /""lie(, 1NB1, By# >a!on *a)ers, 1NB1 9ashington, <1 1orres"on(ent, No)e!ber -, 2 11, htt"#$$%%%&cnbc&co!$i($,.2 -,:/onnecting the .ots5 )arcellus Shale 4lay 4layers 6: of 267
The >stro@TurIn 200=( +ED /or'oration 'ro'osed to "uild 66 coal8fired electric 'lants. +he 'ro'osal was met with immediate o''osition "y Ktwo well8known environmental grou's&$L. #ds a''eared in the 'a'ers( 'laced "y a grou' called +e9as /lean Sky /oalition. +e9as /lean Sky /oalition is /lean Sky /oalition which is an astro8turf grou' of #merican /lean Skies *oundation. /hesa'eake Energy would later acknowledge Khel'ingL out with several hundred thousand dollars to finance the cam'aign. $roup launches 'Coal is 'ilthy' ads against T94 00 Ca%paign partly -unded (y large gas co%pany targets proposal -or 11 ne/ plants C.-. C#+/0I**E and )#CB ;#;I<E/B( Houston /hronicle +uesday( *e"ruary >( 200= Excerpt The grou&Bs Ae( site contained lin1s to the Mone .tar Cha&ter o! the .ierra Clu( and to the Te8as o!!ice o! the 5nvironmental =e!ense 2und$ 3oth grou&s said they %ere sur&rised (y the ads and had nothing to do %ith them$ G0 honestly 1no% nothing a(out it,G said >en >ramer, director o! the state .ierra Clu($ G0Bve never heard o! the Clean .1y Coalition or 1no% %hoBs (ehind these ads$G Excerpt /ac1son Ailliams is the e8ecutive director o! the Te8as Clean .1y Coalition$ -e declined to say %ho &aid !or the ads, other than that it %as a GdiverseG grou& o! (usinesses$ G0Bve got everything !rom a chain o! car %ashes to restaurants,G Ailliams said$ GThereBs some energy com&anies, too$G Ailliams said his coalition is not &romoting any alternatives to coal,!ired &lants$ -e said the grou& Fust %ants to sto& the TNH &lants !rom (eing (uilt$ GThere is no hidden agenda here,G Ailliams said$ Mate in the day, Chesa&ea1e 5nergy ac1no%ledged (eing &art o! the coalition$ Chesa&ea1e is the nationBs third largest &roducer o! natural gas$ +he 4u"lic Celations com'any "ehind the ad cam'aign K.irty *acesL was Strategic 4erce'tions Inc.&: +hey "oast KOur 'olitical work sways the electorate( our 'u"lic affairs 'ractice is designed to sway 'oliticians and those with 'olitical stroke.L
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Grou" launches '1oal is Filthy' a(s against 6N=, 1a!"aign "artly fun(e( by large gas co!"any targets "ro"osal for 11 ne% "lants, 7&G& 7/61LCFF> an( M/73 B/BCN>13, Houston 1hronicle, 6ues(ay, February +, 2 ?, htt"#$$%%%&chron&co!$business$energy$article$Grou"-launches-1oal-is-Filthy-a(s-against-6N=-1- 1:':&"h" ,, ibi( ,. SPC Public /ffairs, 1lean S0y 1oalition, htt"#$$%%%&strategic"erce"tioninc&co!$cleanS0yD1&"h" /onnecting the .ots5 )arcellus Shale 4lay 4layers 6> of 267
;eneath a 'hoto of a "lue8eyed girl with a very dirty face is a link a'tly named K-uerilla )arketing /am'aign( ashington ./&>.L ( which takes you to their 4olitical 'age. +he K.irty *acesL cam'aign for /lean Sky /oalition is featured as an e9am'le of their a"ilities5 Clean .1y Coalition 'uerilla 7ar1eting Cam&aign, Aashington, =C @ou touch a lum& o! coal and your hand turns (lac1$ The sim&le, iconic message (ehind a 45,day cam&aign in Te8as that hel&ed sto& eight multi,(illion dollar coal &lants , in their trac1s$ And later s&read its irre!uta(le message to other states then to our nation<s ca&itol +here!s also a long list of 'olitical candidates who have used their services.
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SPC Political, htt"#$$%%%&strategic"erce"tioninc&co!$cleanS0yD2&"h" 6= of 267
/<-now&= ?/lean <atural -as <ow@ is an industry "acked astro8turf grou'. It!s s'onsors include Chesapea"e Energy# >%erican Clean S"ies# Pic"ens Plan# .$H>%erica ( #<-# ?#merican <atural -as #lliance@ and #-# ?#merican -as #ssociation.
The $reen/ash It!s not "y chance that /hesa'eake Energy!s 0ogo features -reen( ;lue and hite colors. +hese are colors often associated with "eing clean( fresh( ecologically sensitive and safe. )any other natural gas cor'orations also have the same color scheme. /hesa'eake!s /ommitment to Environmental E9cellence &7 5 CChesa&ea1e is committed to &romoting and conducting res&onsi(le e8&loration and &roduction activities$ :ur goal is to reduce our country<s de&endence on e8&ensive !oreign oil and car(on,heavy coal, and transition to clean,(urning natural gas through the use o! industry,leading o&erational &ractices and continuous technological innovation and im&rovement$E 4ro4u"lica article5 Science =ags as !ealth Pro(le%s E%erge .ear $as 'ields 0< "y #"rahm 0ustgarten and <icholas Busnet1 4ro4u"lica( Se't. 6>( 2066( &5$: '.m. Excerpt 58em&tions !rom !ederal environmental rules %on (y the drilling com&anies have com&licated e!!orts to gather &ollution data and to understand the root o! health com&laints$ #urrent law allows oil and gas companies not to report to$ic emissions and ha"ardous waste released by all but their largest facilities, e$cluding hundreds of thousands of wells and small plants $ 7any o! the chemicals used in !rac1ing and drilling remain secret, ho((ling investigators trying to determine the source o! contamination$ The gas industry itself has been less than enthusiastic about health studies. %rillers declined to cooperate with a long&term study of the health effects of gas drilling near 'allace&(abb)s town this summer, prompting state officials to drop their plans and start over. One would e9'ect an association like the #merican 0ung #ssociation ?#0#@ would( at the very least( have some concerns with the degradation of air Muality surrounding gas well 'ads( com'ressor stations etc. ith enough money and the right s'in on feeding 'u"lic relations to the masses( even the #0# succum"s.
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1NGNo%, htt"#$$%%%&cngno%&co!$Pages$infor!ation&as"; 1o!!it!ent to >n)iron!ental >;cellence, 1hesa"ea0e >nergy, htt"#$$%%%&ch0&co!$>n)iron!ent$1o!!it!ent$Pages$infor!ation&as"; ,: Science Lags as Health Proble!s >!erge Near Gas Fiel(s, ProPublica, by /brah! Lustgarten an( Nicholas 3usnet4, Se"te!ber& 1+, 2 11, htt"#$$%%%&"ro"ublica&org$article$science-lags-as-health-"roble!s-e!erge-near-gas-fiel(s$single /onnecting the .ots5 )arcellus Shale 4lay 4layers 67 of 267
+##8.#HHHN. 'resenting the /0E#< #IC I<I+I#+IFE "y the #merican 0ung #ssociation and /hesa'eake Energy. Excerpt Chesa&ea1e 5nergy is investing in the American Mung Association<s Clean Air 0nitiative (ecause o! a common concern a(out air 9uality$ The Clean Air 0nitiative is an educational cam&aign that %ill in!orm the general &u(lic o! the im&ortance o! air 9uality, and its im&act on lung health, as %ell as em&o%er individuals to &rotect our air$ CPartnering with the *merican +ung *ssociation is a natural fit for us because of our shared concern about air ,uality. The *merican +ung *ssociation is a trusted name and a leader on this issue.- .*ubrey Mc#lendon, #hief /$ecutive 0fficer of #hesapea!e /nergy +he original link of htt'5%%"reathecleanair.org%inde9.'h'%su''orters%chesa'eake8energy is no longer valid.
However( I had my thinking ca' on and saved the orginal 'age5
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In #ugust 2066( an article a''eared in the .enton Cecord8/hronicle re'orting ;reast /ancer Cate /lim"s D'.:0 Excerpt 0nvasive (reast cancer is on the rise in =enton County and !ive neigh(oring counties, even as the incidence rate !or the disease is lo%er in the state and !alling across the rest o! the nation$ According to a 2"11 re&ort (y the Centers !or =isease Control and Prevention, si8 counties in the %estern =allas,2ort Aorth area have the highest rates o! invasive (reast cancer in Te8as$
Breast cancer rate cli!bs u", <enton 7ecor(-1hronicle, /ugust '1, 2 11, htt"#$$%%%&(entonrc&co!$local-ne%s$s"ecial"roIects$gas-%ell-(rilling-hea(lines$2 11 -'1-breast-cancer-rate-cli!bs-u"&ece /onnecting the .ots5 )arcellus Shale 4lay 4layers 20 of 267
The average o! the si8 counties< rates has risen !rom 5+$7 cases &er 1"",""" &eo&le in 2""5 to a(out )"$7 &er 1"",""" in 2""+, according to the Te8as Cancer 6egistry$ Excerpt 3ecause the rise in local cancer rates occurred in the same counties as those %ith the 3arnett .hale<s most intense gas drilling develo&ment, some residents are concerned a(out to8ic e8&osures$ 0n 2"1", the Te8as Commission on 5nvironmental Ouality inventoried emissions sources !rom natural gas &roduction e9ui&ment in all 24 counties o! the 3arnett .hale$ The si$ counties with the most production e,uipment are =enton, -ood, 1ohnson, Par1er, Tarrant and Aise counties ; the same si8 counties %ith high (reast cancer rates$ /hesa'eake Energy is active in Iohnson /ounty:6( as are /hief Oil G -as( E+O( .evon Energy( and EO- among others.
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6he Barnett Shale For!ation of North 6e;as an( @0laho!a, htt"#$$%%%&e;"ertsre)ie%of&co!$ 26 of 267
In Octo"er 2066( it came to 'u"lic!s attention of an alliance "etween an E'hrata8"ased ;reast /ancer -rou' and /hesa'eake Energy. Partnership challenged1) Environmentalists cite health concerns in o"3ecting to 'artnershi' "etween 4a. ;reast /ancer /oalition and /hesa'eake Energy. Oct. 09( 2066 2 "y Ion Cutter( 0ancaster On0ine Excerpt 7att .he&&ard, Chesa&ea1eBs senior director !or cor&orate develo&ment and government a!!airs, said in a recent statement that drilling naysayers are a !ringe element &ursuing a (ogus &u(lic health threat$ GAe strongly su&&ort the %or1 o! the Pennsylvania 3reast Cancer Coalition and invite our more thought!ul neigh(ors in Pennsylvania to Foin us in !ighting a true health ris1,G Chesa&ea1eBs .he&&ard said in a statement$ GAe have long (elieved that the vocal minority o! anti,economic,develo&ment activists %ere out o! touch %ith the &u(lic interest they claim to s&ea1 !or,G .he&&ard said, Gand this P(rouhahaQ is clear &roo!$G Travis Aindle, a s&o1esman !or a Canons(urg,(ased industry grou&, 7arcellus .hale Coalition, said environmentalists are ma1ing outrageous in!erences a(out drilling and &u(lic health$ Excerpt A congressional in9uiry, made &u(lic in A&ril, !ound that energy com&anies inFected millions o! gallons o! hydro!rac1ing !luid containing haLardous or cancer, causing chemicals, such as (enLene, into the ground (et%een 2""5 and 2""*$ The drilling industry maintains that hydro!rac1ing is sa!e$ +his is -reenwashing at its "est. /hesa'eake Energy is free to continue to tout natural gas drilling and 'rocessing as "eing safe and clean( and even has the "acking of the #merican 0ung #ssociation and ;reast /ancer -rou's to 'rove it. $reen/ashing -or :ids Oou may recall +he /ol"ert Ce'ort:$ doing a segment featuring the coloring "ook of K+alisman +erry( the *rackosaurus:&L . Soon after +alisman Energy sto''ed handing out the coloring "ooks.
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Partnershi" challenge(, Lancaster @nline, by *ohn 7utter, Staff 9riter, Sun(ay, @ctober :, 2 11, htt"#$$lancasteronline&co!$article$local$,?.1:1DPartnershi"-challenge(&ht!lHi;441a*5N25c2 .' Ste"hen 1olbert <rills 6alis!an >nergy For Frac0-Frien(ly 3i(s 1oloring Boo0 6alis!an 6erry, 6he Huffington Post, by 7yan Grenoble, *uly 11, 2 11, htt"#$$%%%&huffington"ost&co!$2 11$ ?$1'$ste"hen-colbert-frac0ing-coloringboo0DnD-:?.+2&ht!l ., 6alis!an 6erry's >nergy /()enture Cn the 9on(rous Lan( of Frac0ing, 1o!!on <rea!s, by /bby Mi!et, *uly 1., 2 11, htt"s#$$%%%&co!!on(rea!s&org$further$2 11$ ?$1.-, /onnecting the .ots5 )arcellus Shale 4lay 4layers 22 of 267
In 2007( /hesa'eake introduced their coloring "ook featuring K/hesa'eake /harlie::L ( the *racking ;eagle.
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1hesa"ea0e 1harlie, 6he Frac0ing Beagle, 6hin0 Progress, By Bra( *ohnson, /ugust 2, 2 11, htt"#$$thin0"rogress&org$cli!ate$2 11$ -$ 2$2.1,1?$chesa"ea0e-charlie-the-frac0ing-beagle$E!obileFnc /onnecting the .ots5 )arcellus Shale 4lay 4layers 2$ of 267
Energy industry 'roduces coloring "ook to 'resent the case for drilling to children Iune 2066:> Excerpt The !riendly dinosaur has a counter&art at Chesa&ea1e 5nergy, named Chesa&ea1e Charlie$ Charlie is an orange,tinged (eagle %hose o%n coloring (oo1 ta1es youngsters through the entire li!e cycle o! %hat the :1lahoma City com&any calls a Gclean,(urning, a!!orda(le, a(undant and American !uel$G Targeting South Par" -ans +he <atural -as Industry( as a whole( are e9tremely worried a"out their 'u"lic image and know handing out coloring "ooks to your children is not the answer. Shale $as Industry Insider We >re =osing the Messaging War on 'rac"ing Se' 6$th( 2066( ;y f3gallagher
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Excerpts +oday( she P+isha /onoly8SchullerQ e9'lained( those o''osed to hydraulic fracturing can no longer "e characteri1ed as environmental e9tremists "ecause the movement has gone mainstream. CThe &u(lic is s1e&tical o! anything %e say,E she said$ C The favorable perception of the oil and gas industry polls at seven percent . that2s lower than #ongress$ The &u(lic does not (elieve us$ 'e need someone else delivering our message for us$E ...reposition the industry to appeal %ore (roadly to young people R K+he issue is serious( "ut we shouldn!t take ourselves so seriously. e need to (eco%e %uch %ore cle8er. Our industry is going to ha8e to (eco%e hipper.L In that res'ect( /onoly8Schuller said( industry e9ecutives and communicators are going to have to "ecome well versed in the use of social media and online tools. KPeople that li"e South Par" are our audience(L she said( Kand we need to figure out how to talk to them. e need to figure out what works and how to get it out to them.L
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1hesa"ea0e coloring boo0 stresses "atriotis! an( affor(ability to <F9Ls youngest energy consu!ers, Pegasus Ne%s, by >rin 7ice, 9e(nes(ay, *uly 2', 2 -, htt"#$$%%%&"egasusne%s&co!$ne%s$2 -$Iul$2'$chesa"ea0e-coloring-boo0-stresses"atriotis!-an(-a$ErefscrollF2 + .? Shale Gas Cn(ustry Cnsi(er# 9e /re Losing the Messaging 9ar on Frac0ing, Natural Gas 9atch, By fIgallagher, Se"te!ber 1', 2 11, htt"#$$%%%&naturalgas%atch&org$E"F:': /onnecting the .ots5 )arcellus Shale 4lay 4layers 2& of 267
/onoly8Schuller encourages the gas industry to 3oin *ace"ook and other social networking sites. She wants them to make friends with South 4ark fans. Ca%paign Contri(utions In 2009( the Su'reme /ourt of the Dnited States with a decision in /iti1en!s Dnited vs. *ederal Election /ommission:7 e9'anded cor'orate K'ersonhoodL rights. +he actual "irth of K'ersonhoodL rights of cor'orations "egan in 677>( with a Su'reme /ourt:9 decision granting cor'orations the same rights as living 'ersons under the *ourteenth #mendment to the /onstitution. Cight or wrong( old or new( /or'orate 'ersonhood is here and e9'anding it!s a"ility to influence and craft legislation. If money is the root of all evil( then 'ocket 'oliticians are the fruit. /hesa'eake Energy!s 4olitical contri"utions to 4# -ov +om /or"ett goes "ack to 200&. !o/ a natural@gas tycoon tapped into Cor(ett>0 Cune )<# )+11 ,y WI== ,4.C! philly.co% Excerpt The $45",""" in cam&aign chec1s that energy mogul Au(rey 7cClendon %rote that !all hel&ed elect a man he said heBd never even met , a relatively ':P candidate !or Pennsylvania attorney general, Tom Cor(ett$
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1iti4ens =nite( ) Fe(eral >lection 1o!!ission Ono& --2 .P, Legal Cnfor!ation Cnstitute, 1ornell =ni)ersity La% School, htt"#$$%%%&la%&cornell&e(u$su"ct$ht!l$ --2 .&MS&ht!l .: Santa 1lara 1ounty ) Southern Pacific 7& 1o, 11- =&S& ':, O1--+P, =&S& Su"re!e 1ourt, htt"#$$%%%&ratical&org$cor"orations$S1)SP71--+&ht!l + Ho% a natural-gas tycoon ta""e( into 1orbett, *une 2:, 2 11, By 9CLL B=N1H, Phila(el"hia Cn5uirer, htt"#$$articles&"hilly&co!$2 11- +-2:$ne%s$2:?1?,-1D1Dcorbett-ca!"aign-to!-corbett-!arcellus-shale /onnecting the .ots5 )arcellus Shale 4lay 4layers 2: of 267
That investment argua(ly changed not Fust the history (ut also the &olitical direction o! the state$ The in!lu8 o! cash hel&ed Cor(ett narro%ly %in the closest attorney generalBs race in Pennsylvania history and &ro&elled him to%ard the governorBs mansion, %here he has no% &ledged to turn the >eystone .tate into Gthe Te8as o! the natural,gas (oom$G Excerpt5 The donations also s&un a &olitical mystery that may never (e ans%ered$ Excerpt GThe contri(ution occurred long (e!ore Chesa&ea1e had any activity in Pennsylvania,G said 7att .he&&ard, a com&any s&o1esman$ G0t is terri(ly misguided to im&ly that this contri(ution %as made %ith !uture &olitical considerations in mind$ The PcommitteeQ $ $ $ gave the money to the Cor(ett cam&aign %ithout noti!ying Chesa&ea1e or 7r$ 7cClendon$G DmmmmmN.. rightNNN)r. )c/lendon didn!t know, .id )r. /or"ett know, *lash"ack 2 hat did anyone know and when did they know it, atergate
$o8. To% Cor(ett A2@P>B O'enSecrets.com 200=82007 /am'aign /ycle>65 Top .ational 3onors ,ased on Co%(ined State and 'ederal Contri(utions# )++6@)++; I1) Clean Energy 'uels Corp ?remem"er 4ickens and 0ittlefair,@ +otal .onations A67(7::(>:0 *ederal .onations A$=(200 State .onations A67(767(&:0 I61 Chesapea"e Energy +otal .onations A&(96&(6=: *ederal .onations A&70(==6 State .onations A&(&$$(&0& *ollowthemoney.org 200082066>2 Chesapea"e Energy /om'any%4ac /ontri"ution A&(9>:(&:& Su"sidiary /ontri"ution A=9(::0 Em'loyee /ontri"ution A6(&&9(77& -rand +otal A>(&9&(779 )arcellus)oney.org 200982060 >$Chesapea"e Energy To% Cor(ett Ce'u"lican A&=6(:00 Top 1 =egislators Iose'h ;.( III Scarnati Ce'u"lican A6>(000.00 )ike +ur1ai Ce'u"lican >(:00.00
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6o" National <onor, 2 ?-2 -, @"ensecrets&org, htt"#$$%%%&o"ensecrets&org$orgs$listDstfe(&"h"Eor(erF/ Follo% the Money, 2 -2 11, 1hesa"ea0e >nergy, htt"#$$%%%&follo%the!oney&org$(atabase$search&"ht!lE searchbo;Fchesa"ea0eQenergy +' 1hesa"ea0e >nergy 2 :-2 1 , MarcellusMoney&org, htt"#$$%%%&!arcellus!oney&org$co!"any$chesa"ea0e-energy /onnecting the .ots5 )arcellus Shale 4lay 4layers 2> of 267
Samuel H. Smith Iake /orman )ichael -er"er
Ce'u"lican Ce'u"lican .emocratic
>(:00.00 &(000.00 $(:00.00
Totals (y Party Ce'u"lican 4arty5 A=0(=90.00 .emocratic 4arty5 A2$(=:0.00 =o((ying /hesa'eake Energy 0o""ying >& O'enSecrets.org 2066 +otal 0o""ying E9'enditures5 A6(&60(000 0o""ying *irms5 .u"erstein -rou' ;racewell G $iuliani /had ;radley G #ssociates .elta Strategy -rou' A$00(000 A220(000 A6:0(000 A620(000
#nd Oes(Firginia( -iuliani of ;racewell G -iuliani>: is none other than *ormer <O )ayor Cudol'h JCudyJ -iuliani I "no/ a guy /ho "no/s a guy J.. +o advance the <atural -as message it!s necessary to have 'eo'le in the right 'laces. +his means someone needs to "e on committees( and "elong to organi1ations. In )arch 2066( -ov. +om /or"ett a''ointed $0 'eo'le to the )arcellus Shale #dvisory /ommission. Marcellus Shale >d8isory Co%%ission out o- (alanceK77 -overnorHs shale commission is long on cam'aign contri"utors( drilling interests Sunday( )arch 6$( 2066 ;y +racie )auriello and 0aura Olson( 4ost8-a1ette Harris"urg ;ureau Excerpt The grou& includes 13 &eo&le %ith ties to the gas industry and only !our environmentalists$ The others are state and local government o!!icials and geologist$
Thirteen o! the mem(ers contri(uted a total o! $557,""" to 7r$ Cor(ettBs &olitical cam&aigns since 2""+R 12 have ties %ith com&anies %hose e8ecutives or &olitical action committees contri(uted another $5)2,"""R one is the son o! a $3"",""" contri(utor$ All together that amounted to Fust over $1$4 million$
+, +.
1hesa"ea0e >nergy, Lobbying, @"ensecrets&org, htt"#$$%%%&o"ensecrets&org$lobby$clientsu!&"h"Ei(F< 21: Brace%ell A Giuliani, htt"#$$%%%&brace%ellgiuliani&co!$"eo"le$ru(ol"h-%-giuliani ++ Marcellus Shale /()isory 1o!!ission# out of balance, March 2:, 1 12, By 6racie Mauriello an( Laura @lson, PostGa4ette Harrisburg Bureau, htt"#$$%%%&"ost-ga4ette&co!$stories$local$state$!arcellus-shale-a()isory-co!!ission-out-ofbalance-2122 ,$Hi;442-tl7Stu@ /onnecting the .ots5 )arcellus Shale 4lay 4layers 2= of 267
3a8id L3a8eL Spigel%yer 76 is the Fice 4resident of -overnment Celations at /hesa'eake Energy. He was a''ointed to the )arcellus Shale #dvisory /ommission "y -ov. +om /or"ett. *ollowing two rather em"arrassing news articles regarding .E4 violations( and a gas well accident( )r. S'igelmyer resigned from the commission. Marcellus Shale ad8isory (oard %e%(ers rac" up 8iolations 4u"lished5 ednesday( #'ril 2=( 2066 ;y .O<#0. -I00I0#<.( +he 4atriot8<ews Excerpt Chesa&ea1e 5nergy had the third,highest num(er o! violations at 132R Chesa&ea1e<s vice &resident o! government relations, =ave .&igelmyer, %as a&&ointed to the commission, (ut chose to ste& o!! &rior to the (eginning o! its %or1$ Chesapea"e Energy /ill in8estigate Pennsyl8ania gas@drilling spill 7; &%2>%2066 8 DS# +oday CA4T:4, Pa$ (AP ; Aor1ers have sto&&ed the !lo% o! li9uid and natural gas !rom a %ell that s&illed chemical,laced %ater !or t%o days and %ere to start sealing the %ell 2riday, com&any o!!icials said. )r. S'igelmyer later "ecame a mem"er of the )arcellus Shale /oaltion>9( an industry organi1ation headed "y Bathryn Bla"er as the E9ecutive .irector. He holds a seat on the E9ecutive /ommittee. His other connections include "eing a former 4resident( and now a .irector of the Firginia Oil and <atural -as #ssociation. =0 est
.ot &ur 'ault Chesapea"e CE& >u(rey McClendon (lasts anti@drilling acti8ists 61 Excerpt 7cClendon accused those critics o! distorting the !acts$ -e asserted there have (een only a !e% doLen cases o! methane migration o! %ell,%ater su&&lies in northeastern Pennsylvania, and that residents %ere merely inconvenienced$ GMoo1ing (ac1, %as any(ody hurtD Aas there any &ermanent or even tem&orary environmental damageD 4o, no and no$ .ome !ol1s %ere inconvenienced, !or sure, and !or that %eBre dee&ly sorry,G 7cClendon said$ 3ut he said the industryBs (ene!its ,
+? +-
1hesa"ea0e >nergy, htt"#$$%%%&ch0&co!$Pages$(efault&as"; 1hesa"ea0e >nergy %ill in)estigate Pennsyl)ania gas-(rilling s"ill, =S/ 6o(ay, /"ril 2+& 2 11, htt"#$$usato(ay' &usato(ay&co!$!oney$in(ustries$energy$2 11- ,-22-chesa"ea0e-energy-gas-(rilling-s"illDn&ht! +: Marcellus Shale 1oalition, >;ecuti)e Boar(, htt"#$$!arcelluscoalition&org$about$e;ecuti)e-co!!ittee$ ? 9est Jirginia @il an( Natural Gas /ssociation, Boar( of <irectors, htt"#$$%%%&%)onga&co!$9ho9e/re$Boar(of<irectors&as"; ?1 1hesa"ea0e 1>@ /ubrey Mc1len(on blasts anti-(rilling acti)ists, By MC1H/>L 7=BCN3/M /ssociate( Press, 6ulsa 9orl(, Se"te!ber -, 2 11, htt"#$$%%%&tulsa%orl(&co!$business$article&as";E subIecti(F,:Aarticlei(F2 11 : -D,:D>1D=LNSur-2+2,/onnecting the .ots5 )arcellus Shale 4lay 4layers 27 of 267
dollars the
including lo%er home,heating (ills, tens o! thousands o! ne% Fo(s, and millions o! o! lando%ner %ealth , more than out%eigh the isolated cases o! contamination$ -e also said that ne% %ell,casing standards in Pennsylvania have largely eliminated methane &ro(lem$ "Problem identified, problem solved. That)s how we do it in the natural gas industry," Mc#lendon said. -o%ever, some residents %ith contaminated %ater %ells have (een !orced to get their %ater delivered !or months or years, and say their home values have (een destroyed$ Mast month, the Pennsylvania =e&artment o! 5nvironmental Protection announced that itBs investigating a !resh case o! methane contamination$
#s of *e"ruary 2066( the 4ennsylvania .E4=2 re'orts /hesa'eake has drilled 676 wells. Fiolation Summary Ian 68 <ov 6=( 2066 76 Ins'ections 6$$ Fiolations 0ess than half of /hesa'eake!s well sites have "een ins'ected. Hiolations include .ischarge of 'ollutional material to waters of /ommonwealth. *ailure to ado't 'ollution 'revention measures reMuired or 'rescri"ed "y .E4 "y handling materials that create a danger of 'ollution. *ailure to design( im'lement or maintain ;)4s to minimi1e the 'otential for accelerated erosion and sedimentation. *ailure to minimi1e accelerated erosion( im'lement EGS 'lan( maintain EGS controls. *ailure to sta"ili1e site until total site restoration under O-# Sec 20>?c@?d@ *ailure to 'ro'erly store( trans'ort( 'rocess or dis'ose of a residual waste. *ailure to re'ort defective( insufficient( or im'ro'erly cemented casing w%in 2& hrs or su"mit 'lan to correct w%in $0 days *ailure to re'ort release of su"stance threatening or causing 'ollution Im'ro'er casing to 'rotect fresh groundwater 4it and tanks not constructed with sufficient ca'acity to contain 'ollutional su"stances. 4olluting su"stance?s@ allowed to discharge into aters of the /ommonwealth Stream discharge of I ( includes drill cuttings( oil( "rine and%or silt +here is a 'otential for 'olluting su"stance?s@ reaching aters of the /ommonwealth and may reMuire a 'ermit. 4ennsylvania fines /hesa'eake Energy A6.6 million =$ #4 % )ay 6=( 2066
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Pennsyl)ania <e"art!ent of >n)iron!ental Protection, 1o!"liance 7e"orts, htt"#$$%%%&(e"re"ortingser)ices&state&"a&us$7e"ortSer)er$Pages$7e"ortJie%er&as";E$@ilDGas$@GD1o!"liance ?' Pennsyl)ania fines 1hesa"ea0e >nergy 81&1 !illion, Bloo!berg Business%ee0, May 1?, 2 11, htt"#$$%%%&business%ee0&co!$a"$financialne%s$<:N:1?:-1&ht! /onnecting the .ots5 )arcellus Shale 4lay 4layers 29 of 267
4ennsylvania has fined /hesa'eake Energy /or'. A6.6 million for contaminating well water and causing a tank fire during natural gas drilling o'erations. +he state environmental 'rotection de'artment said +uesday that the well contamination fine was the largest it ever im'osed against com'anies drilling in the )arcellus shale( energy8rich formations under the #''alachians. /hesa'eake agreed under a court8monitored consent order to 'ay 5<++#+++ -or conta%inating /ater supplies and A677(000 related to a *e". 2$ tank fire at a drilling site. -as .rilling Emergency in ;radford /ounty=& ;y Iim Hamill and Sarah ;uynovsky #'ril 20( 2066 Officials said thousands of gallons of fluid leaked over farm land and into a creek from a natural gas well in ;radford /ounty. /hesa'eake Energy officials said the situation was sta"le.. ednesday night the leak had "een contained and
+he ru'ture near /anton ha''ened late +uesday night( contaminating near"y land and creeks. +he "lowout ha''ened on the )orse family farm in 0eCoy +ownshi' outside /anton( a farming community. Health /onsultation=: /hesa'eake #+-#S 2H ell Site 0eroy +ownshi'( ;radford /ounty( 4# <ovem"er &( 2066 Overview5 # )arcellus Shale formation natural gas well known as the /hesa'eake #+-#S 2H ell Site in 0eroy +ownshi'( ;radford /ounty( 4ennsylvania e9'erienced a /ell head -lange -ailure and uncontrolled -lo/(ac" -luid release on >pril 1<# )+11 . +his acute event occurred while the well was undergoing hydraulic fracturing "y the /hesa'eake Energy /or'oration ?/hesa'eake@. /hesa'eake and the 4ennsylvania .e'artment of Environmental 4rotection ?4#.E4@ and the D.S. Environmental 4rotection #gency ?E4#@ concurrently com'leted an initial groundwater sam'ling event for the seven 'rivate wells closest to the well site on #'ril 2= and 27( 2066. > co%parison o- the EP> and P>3EP split sa%ples sho/ed consistency in the analytical results /ith the exception o- the radionuclide results -or one /ell . E4# reMuested that the #gency for +o9ic Su"stances and .isease Cegistry ?#+S.C@ evaluate the environmental data collected from the seven 'rivate wells in order to determine whether harmful health effects would "e e9'ected from consuming and%or using the well water. Treated /ater or (ottled /ater is currently (eing pro8ided to
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Gas <rilling >!ergency in Bra(for( 1ounty, ,$2 $2 11, %ne"&co!, htt"#$$%ebcache&googleusercontent&co!$searchE 5Fcache#3;i 1Ll'H-,*#%%%&frac0alert&org$in(e;&as"G'F"ageG'<,G2+article G'<:12QgasQ(rillingQe!ergencyQinQbra(for(QcountyQ%ne"Ac(F?AhlFenActFcln0AglFus ?. Health 1onsultation, 1hesa"ea0e /6G/S 2H 9ell Site, Leroy Hill 7oa(, Leroy6o%nshi", Bra(for( 1ounty, P/, No)e!ber ,, 2 11, htt"#$$%%%&ats(r&c(c&go)$hac$"ha$1hesa"ea0e/6G/S9ellSite$1hesa"ea0e/6G/S9ellSiteH111 ,11Final&"(f /onnecting the .ots5 )arcellus Shale 4lay 4layers $0 of 267
three o- the se8en residences A2W+)# 2W+*# and 2W+0B. ;ased on the availa"le data( it is not known if future chemical concentrations in the residential wells will change. +herefore( #+S.C evaluated the currently availa"le data against a range of 'ossi"le e9'osure durations ?acute( intermediate and chronic@. 4ro"lem identified( 'ro"lem solved( )r. )c/lendon, DmmmmN.yeahN.right.
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Chapter * >u(rey McClendon Chesapea"e EnergyMs =ittle Pro(le% Shareholders of /hesa'eake Energy received an unwelcomed wake8u' call on #'ril 6=( 2062. ednesday(
CeuterHs headline screamed LExclusi8e Chesapea"e CE& too" out 51.1 (illion in unreported loansL 67@ ,y >nna 3ri8er and ,rian $ro/ Au(rey 7cClendon, the C5: o! Chesa&ea1e 5nergy Cor&, has (orro%ed as much as $1$1 (illion over the last three years against his sta1e in thousands o! com&any %ells , a move that analysts, academics and attorneys %ho revie%ed loan documents say raises the &otential !or con!licts o! interest$ The loans, %hich havenBt (een &reviously detailed to shareholders, are used to !und 7cClendonBs o&erating costs !or an unusual cor&orate &er1 that o!!ers him a chance to invest in a 2$5 &ercent interest in every %ell the com&any drills$ 7cClendon in turn is using the 2$5 &ercent sta1es as collateral on those same loans, documents !iled in !ive states sho%$ The siLe and nature o! the loans raise 9uestions a(out %hether 7cClendonBs &ersonal !inancial deals could com&romise his !iduciary duty to Chesa&ea1e investors, e8&erts %ho revie%ed the documents told 6euters$ Over the ne9t few days as more information emerged and /hesa'eake Energy attem'ted damage control( the market saw /hesa'eake ?/HB@ shares hit a new :28week low of A6>.=7 +he damage control from /hesa'eake has "een( well( a "it 'eculiar( and weak. hile the actual loan transactions and failure to disclose to the shareholders may "e KlegalL( it does "ring u' the issue of conflict of interest and makes one wonder what else is going on with )c/lendon. /hesa'eake Energy tried to ease concerns Stewart5
==
"y citing similar situation concerning )artha
3#hesapea!e says it didn2t have to say more and cites as legal justification a court ruling involving Martha Stewart.DmmmmN hile )artha Stewart was not cited for the non8disclosures to her "oard of directors( she did end u' in 3ail for other market misste's. OOOOO4SIENN
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>;clusi)e# 1hesa"ea0e 1>@ too0 out 81&1 billion in unre"orte( loans, By /nna <ri)er an( Brian Gro%, 9e( /"r 1-, 2 12, 7euters, htt"#$$%%%&reuters&co!$article$2 12$ ,$1-$us-chesa"ea0e-!cclen(on-(eals-i(=SB7>-'H FN2 12 ,1?? 1hesa"ea0e >nergy# /re the ReLsL tiltingE, Loren Steffy!, /"ril 1:, 2 12, Houston 1hronicle, htt"#$$blog&chron&co!$lorensteffy$2 12$ ,$chesa"ea0e-energy-are-the-es-tilting$ /onnecting the .ots5 )arcellus Shale 4lay 4layers &: of 267
/om'arisons of Enron!s deals and eventual colla'se under the weight of its own arrogance were freMuently mentioned in articles. 2ecent !istory o- Chesapea"e Energy +he day "efore the Ceuters story made shareholder!s s'ine shudder /hesa'eake Energy announced a 'u"lic offering of its Oil *ield Services. +he all Street Iournal re'orts5
=7
Chesa&ea1e :il!ield .ervices 0nc$ hopes to raise up to 4567.8 million in an initial public offering of stoc!, according to a !iling 7onday %ith the .ecurities and 58change Commission$ The oil!ield services com&any;%hich o%ns more than 1"" drilling rigs, a hydraulic !racturing su(sidiary, an oil !ield tool rental (usiness and a !leet o! truc1s that !erry drilling rigs and other heavy e9ui&ment;%ill continue to &rimarily serve Chesa&ea1e 5nergy, the !iling said$ 3oth com&anies are (ased in :1lahoma City, :1la$ Chesa&ea1e 5nergy is the second largest natural gas &roducer in the H$.$ and s&ent a(out $13$3 (illion last year to drill and com&lete 1,))2 %ells, according to the !iling$ At yearBs end, Chesa&ea1e 5nergy em&loyed more than 13" drilling rigs, more than t%ice as many as its nearest com&etitor, 588on 7o(il Cor&$ The !iling didnBt say ho% many shares Chesa&ea1e :il!ield &lanned to sell in its 0P: or in %hat range the com&any ho&ed to &rice them$ It did say that underwriters 9oldman Sachs 9roup Inc. 9 and (an! of *merica Merrill +ynch would have the option of selling up to 4::7.8 million worth of additional shares if demand warranted. /hesa'eake Energy has "een attem'ting to raise cash and make its "alance sheet more a''ealing "y selling or s'inning off assets. +he 'revious week( /hesa'eake Energy announced three oil and gas asset moneti1ation transactions for 'roceeds of A2.> ;illion. /hesa'eake Energy 4ress Celease5 =9 Chesa&ea1e has com&leted the sale o! &re!erred shares o! a ne%ly !ormed unrestricted, non,guarantor consolidated su(sidiary, C-> Cleveland Ton1a%a, M$M$C$ (C-> C,T , and a 3$75S overriding royalty interest in the !irst 1,""" ne% net %ells to (e drilled on C-> C,T leasehold and certain %ells contri(uted at closing !or &roceeds o! $1$25 (illion$ The &urchasing investment grou& %as led (y '.: Ca&ital Partners MP, an a!!iliate o! the 3lac1stone 'rou& , and included TP' Ca&ital, 7agnetar Ca&ital and /I9 9lobal /nergy Partners$ C-> C,T o%ns a&&ro8imately 245,""" net leasehold acres in the Cleveland and Ton1a%a unconventional li9uids,rich tight sand &lays in 6oger 7ills
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1hesa"ea0e @ilfiel( Plans CP@ of u" to 8-+2&. Million, 9all Street *ournal, /"ril 1+, 2 12, htt"#$$online&%sI&co!$article$SB1 1,2, .2? 2' ,2::' ,.??',-,?2-111'? ?2&ht!l ?: 1hesa"ea0e >nergy 1or"oration /nnounces 6hree @il an( Gas /sset Moneti4ation 6ransactions for Procee(s of 82&+ Billion, Press 7elease, ,$:$2 12, htt"#$$%%%&ch0&co!$ne%s$articles$"ages$1+-11,.&as"; /onnecting the .ots5 )arcellus Shale 4lay 4layers &> of 267
and 5llis counties, :1lahoma$ Chesa&ea1e has retained all the common e9uity interests in C-> C,T$ In a risky 'lay( /hesa'eake Energy has gone KnakedL5 G$$$$removed most o! its 2"12 derivatives &ositions, leaving the com&any na1ed to (ig di&s in natural,gas !utures &rices Fust as they %ere headed !or a ten,year lo%$ Mate last year, the com&any removed most o! its gas and oil hedges !or 2"12 and 2"13, according to documents and &eo&le !amiliar %ith the matter, (elieving that &rices %ere at or near a (ottom$ G T C43C, A&ril *, 2"12 +" .efinition of H<aked O'tionH 765 # trading 'osition where the seller of an o'tion contract does not own any( or enough( of the underlying security to act as 'rotection against adverse 'rice movements. If the 'rice of the underlying security moves against the trader( who does not already own the underlying security( he or she would "e reMuired to 'urchase the shares regardless of how high the 'rice is. +he 'otential for losses( then( can "e unlimited( and as a result( "rokers ty'ically have s'ecific rules regarding naked trading. Ine9'erienced traders( for e9am'le( would not "e allowed to 'lace this ty'e of order. In .ecem"er 2066( /hesa'eake Energy sold its )arcellus Shale gas gathering assets 72 to /hesa'eake )idstream 4artners( 04( for A7>: million. #''ro9imately si9 months later /hea'eake )idstream 4artners( 04 was sold to -lo"al Infrastructure 4artners ?-I4@. 4er Cig1one.com5 +3 C'lo(al 0n!rastructure Partners is led (y Credit .uisse 'rou& A' and 'eneral 5lectric Co$ 0t &artnered %ith Chesa&ea1e 5nergy to !orm Chesa&ea1e 7idstream Partners, an entity that %ent &u(lic in 2"1" and o&erates gas,gathering and &rocessing systems in the 7arcellus .hale, 3arnett .hale and other H$.$ locations$ GThese transactions %ill &reserve the strategic relationshi&s %e have %ith PChesa&ea1e 7idstream PartnersQ and PChesa&ea1e 7idstream =evelo&mentQ as our &rimary midstream service &roviders and !urther strengthen the close relationshi& %e have enFoyed %ith P'lo(al 0n!rastructure PartnersQ since 2""*,G Chesa&ea1e 5nergy Chie! 58ecutive and co,!ounder Au(rey 7cClendon said$E Thic" S"inK +he +wo Sides of #u"rey( "y /hristo'her Helman 7&( a *or"es article in Octo"er 2066 descri"es )c/lendon as5
1hesa"ea0e >nergy Goes Na0e( as Gas Hits a <eca(e Lo%, 1NB1, /"ril :, 2 12, htt"#$$%%%&cnbc&co!$i($,+::2? 2$1hesa"ea0eD>nergyDGoesDNa0e(DasDGasDHitsDaD<eca(eDLo% -1 Cn)esto"e(ia, htt"#$$%%%&in)esto"e(ia&co!$ter!s$n$na0e(o"tion&as"Hi;441s05I3o;g -2 1hesa"ea0e Mi(strea! Partners, L&P& /nnounces Na!e 1hange to /ccess Mi(strea! Partners, L&P& an( 1hange in NBS> 6ic0er Sy!bol to S/1MPS, Mar0et%atch, *uly 2,, 2 12, htt"#$$%%%&!ar0et%atch&co!$story$chesa"ea0e-!i(strea!"artners-l"-announces-na!e-change-to-access-!i(strea!-"artners-l"-an(-change-in-nyse-tic0er-sy!bol-to-ac!"-2 12- ?2, -' 1hesa"ea0e >nergy to Sell Mi(strea! /ssets for 8, Billion, by <o% *ones Ne%s%ires, 3ristin *ones A Ben Lefeb)re, 7ig4one, htt"#$$%%%&rig4one&co!$ne%s$article&as"EaDi(F11-,+: -, 6he 6%o Si(es of /ubrey, 1hristo"her Hel!an, Forbes Maga4ine, @ctober 2,, 2 11, htt"#$$%%%&forbes&co!$forbes$2 11$1 2,$feature-aubrey-!cclen(on-hero-energy-chesa"ea0e-ris0-christo"her-hel!an&ht!l /onnecting the .ots5 )arcellus Shale 4lay 4layers &= of 267
-eBs a heroJ Chesa&ea1e 5nergy may earn $2 (illion this year and could solve our energy &ro(lems$ -eBs a ris1 Fun1ieJ -is aggressiveness could (and almost did 1ill the com&any$ #t a steak dinner with )c/lendon( Helmen remarked further5 G-e co,o%ns the restaurant and had already &ic1ed the %ine, %hich %as decanted t%o hours ahead o! time$ :nly the royal stu!!J a 1*+* Petrus, a 1*+* -aut 3rion and, cons&icuously, a 1*+2 Ma!ite 6othschild$ 5asily ten grand %orth o! ti&&le$G Helman confesses to "eing critical of )c/lendon( GUcalled him everything !rom dangerous to over&aid and suggested that the com&any he (uilt %ould !are (etter %ithout him$G )c/lendon maintains Ga 1ey to success in any %al1 o! li!e is having a short memory and a thic1 s1inUG His res'onse to a )arch 2062 Colling Stones article 7: left me with the feeling his skin isn!t all that thick. +he day after the Colling Stones article a''eared on the internet( /hesa'eake Energy released a 2(7=2 word re"uttal. 7> Colling Stone re"utted the re"uttal.7= /hesa'eake did not re"ut the re"utted re"uttal. Shell $a%es #nother story which should have sent red flares through the /hesa'eake Energy shareholders morning news'a'er was a .ecem"er 2066 Ceuters story ;y Ioshua Schneyer and ;rian -row entitled S'ecial Ce'ort5 Energy giant hid "ehind shells in Jland gra"J. 77 +he com'any issuing the re3ections wasnHt much of a "usiness at all. It was a shell com'any 8 a 'a'er8only firm with no real o'erations 8 called <orthern )ichigan E9'loration 00/. :ne Filted land o%ner, 5ric 3oyer,Mashuay, called to com&lain to the (ro1er %ho had handled his lease$ 4orthern, he recalls saying, is Ga shell com&any $$$ a (lan1 door %ith no one (ehind it$G Today, he puts it this way; "It was all a fa!e, all a scam." 4orthern has voided hundreds o! land deals, and %as indeed a !acade , a shell com&any created so that one o! AmericaBs largest energy com&anies could conceal its role in the leasing s&ree, a 6euters investigation has !ound$ :1lahoma,(ased
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6he Big Frac0ing Bubble# 6he Sca! Behin( /ubrey Mc1len(on's Gas Boo!, By *eff Goo(ell, 7olling Stone Maga4ine, March 1, 2 12, htt"#$$%%%&rollingstone&co!$"olitics$ne%s$the-big-frac0ing-bubble-the-sca!-behin(-the-gas-boo!2 12 ' 1Hi;442:+?H'NsN -+ 1hesa"ea0e 7es"on(s to the 7olling Stone Story, '$2$2 12, htt"#$$%%%&ch0&co!$Ne%s$/rticles$Pages$releaseD2 12 ' 2&as"; -? 7olling Stone 7es"on(s to 1hesa"ea0e >nergy on '6he Frac0ing Bubble, By *eff Goo(ell, 7olling Stone Maga4ine, March +& 2 12, htt"#$$%%%&rollingstone&co!$"olitics$blogs$national-affairs$rolling-stone-res"on(s-to-chesa"ea0e-energy-on-thefrac0ing-bubble-2 12 ' +Hi;442:+?ng?0S -S"ecial 7e"ort# >nergy giant hi( behin( shells in Slan( grabS, By *oshua Schneyer an( Brian Gro%, 7euters, <ece!ber 2-, 2 11, htt"#$$%%%&reuters&co!$article$2 11$12$2-$us-energy-giant-i(=S67>?B7 G,2 11122/onnecting the .ots5 )arcellus Shale 4lay 4layers &7 of 267
Chesa&ea1e 5nergy Cor&$, the nationBs second,largest gas driller, %as (ehind the entire o&eration$ #hesapea!e had created one shell company that set up another, orthern Michigan /$ploration. e$t, orthern hired bro!ers who signed leases with residents such as (oyer&+ashuay. *nd those bro!ers were under strict orders not to divulge #hesapea!e)s role, records reviewed by <euters show. In fact, the effort in Michigan was directed from the very top & by #hesapea!e)s #/0, *ubrey Mc#lendon. In corporate filings that #hesapea!e made public earlier this year & nine months after Mc#lendon)s agents began signing Michigan land leases & Mc#lendon is named as the chief e$ecutive officer of orthern, the shell company that voided hundreds of those leases. How many other shell com'anies does /hesa'eake have, On the last 'ages of /hesa'eake Energy 8 4OS#SC820660207( E9hi"it8& document(79 Iennifer ). -rigs"y is listed as JSenior Fice 4resident( +reasurer and /or'orate Secretary of the /om'any and of the Su"sidiaries listed "elowJ. .orthern Michigan Exploration ==C is on the list( as well as com'anies with e9otic names such as Winter Moon Energy Co%pany# =.=.C.# $othic Production# =.=.C. and E%press# =.=.C. #n internet search turned u' no we"sites for these & com'anies. Overseeing audits of /hesa'eake is 4ricewaterhouse/oo'ers ?4 /@. +hey received a little less than A$million to look at the "ooks. 4 / were also auditors for Enron and #merican International -rou'( Inc. ?#I-@. e know how well that worked out.
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1H>S/P>/3> >N>7GB 1@7P - P@S/S7 - 2 11 2 - - >NHCBC6D,&"(f, htt"s#$$(ocs&google&co!$file$($ B:tP1c7HM-*DN6M N97INICtN92.Ny NIB.L9>1M<BtN4>;M!MiN<>1B2=;$e(it E"liF1 /onnecting the .ots5 )arcellus Shale 4lay 4layers &9 of 267
The >u(rey Pro(le% *rom 200> thru the first half of 2007 /hesa'eakeHs "oard granted )c/lendon shares of restricted stock. )c/lendon had "orrowed heavily to "et even more of his stock holdings. hen all Street crashed in Octo"er of 2007( )c/lendon was caught in a margin call. He was forced to sell $6.: million shares of /hesa'eake over a $8day 'eriod. #ccording to a com'any statement this was Jsu"stantially allJ of his holdings. J)y confidence in /hesa'eake remains undiminished( and I look forward to re"uilding my ownershi' 'osition in the com'any in the months and years ahead.J( )c/lendon stated in res'onse to his losses. )c/lendonHs losses lasted for a"out 72 days. His hand'icked ;oard of .irectors "ailed him out. His 200= :8year em'loyment agreement was thrown out. On .ecem"er $6( 2007( the /hesa'eake "oard 'resented )c/lendon with A=:million "onus and a new 'ay 'ackage. +he "oard also agreed to 'urchase )c/lendon!s antiMue ma's for A62.6 million. Shareholders were u'set and sued /hesa'eake( it took until this year for a settlement to "e reached( where"y )c/lendon will return the A62.6 million S interest. He will get his ma's "ack. &"laho%a Nudge appro8es Chesapea"e settle%ent in shareholdersM la/suit <+ #n Oklahoma /ounty 3udge has signed off on a settlement in lawsuit filed "y /hesa'eake Energy /or'. investors u'set over /EO #u"rey )c/lendon!s com'ensation in 2007. ;O I#O *. )#CBS 8 Ianuary $6( 2062 E9cer't5 2ive grou&s, led (y the Mouisiana 7unici&al Police 5m&loyees< 6etirement .ystem, !iled la%suits against Chesa&ea1e and its (oard$ The &arties reached a settlement in the case last !all, calling !or 7cClendon to (uy (ac1 his ma& collection %hile the com&any ado&ted Csigni!icantE governance re!orms$ 3This is a rare concession by Mr. Mc#lendon,- said attorney Marc 9ross, who represented the plaintiffs in the case$ CAe<re very &roud to have gotten this settlement$E :1lahoma County =istrict /udge =an :%ens acce&ted the settlement 7onday morning, des&ite o(Fections !rom t%o shareholders$ :%ens said Chesa&ea1e has a(out ))" million outstanding shares, (ut only t%o shareholders voiced any com&laint %ith the settlement, leading him to conclude it is !air and reasona(le$
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1hesea"ea0e @il Settle!ent Mc1len(on 3ee"s 2 - Bonus Buys Bac0 12 Million <ollar Ma"s, 7obert 7obles, /ttorney, htt"#$$robertroblesattorney&%or("ress&co!$2 12$ 2$ 1$chesea"ea0e-oil-settle!ent-!cclen(on-0ee"s-2 --bonus-buys-bac012-!illion-(ollar-!a"s$ /onnecting the .ots5 )arcellus Shale 4lay 4layers :0 of 267
The Fudge is ready to sign o!! on the agreement, although the Chesa&ea1e shareholders %ho o(Fected to the deal still can a&&eal his ruling$ Attorneys on (oth sides o! the case %ere &leased the Fudge agreed to acce&t their settlement agreement$ 9ross said it is unusual for companies or e$ecutives in such securities cases to ma!e significant payments li!e Mc#lendon has agreed to do. -e %ill &ay $12$1 million, &lus interest, !or his ma& collection$ 9ross also said #hesapea!e has ta!en steps to establish a review process to avoid such compensation issues in the future$ CAe<re very &leased %ith the outcome,E he said$ #hesapea!e did not admit any wrongdoing in the settlement. CChesa&ea1e stands (ehind its (oard<s a&&roval o! Chie! 58ecutive :!!icer Au(rey 7cClendon<s 2""+ incentive a%ard, (ut !eels this settlement is in the com&any<s and its shareholders< (est interest,E said -enry -ood, the com&any<s general counsel . 3'e are pleased to put this matter behind us and hope shareholders and the public will focus on our efforts to promote natural gas as the clean fuel of choice for power generation and transportation, creating *merican jobs and reducing dependence on foreign oil..id you notice the attem't to distract attention from the settlement, 3'e are pleased to put this matter behind us and hope shareholders and the public will focus on our efforts to promote natural gas as the clean fuel of choice for power generation and transportation, creating *merican jobs and reducing dependence on foreign oil.+he Kma'L matter is not "ehind )c/lendon or /hesa'eake. ,oard Turns on Chesapea"e's CE& 96 8 E9cer't ?em'hasis added@5 5arlier this year, 7r$ 7cClendon said he %ould re&ay the com&any to settle a shareholder la%suit over the matter$ The com&any said in a recent !iling, ho%ever, that the company has filed an appeal in that case and that Mr. Mc#lendon hadn)t repurchased the maps, %hich have (een dis&layed at the com&anyBs head9uarters$ The 4nreported =oans /hesa'eake has a little 'rogram called *ounder ell 4artici'ation 4lan ?* 44@. It grants )c/lendon a 2.:T direct stake in the drilled wells. +he * 44 does not allow )c/lendon to Jcherry 'ickJ the most 'rofita"le wells( itHs all or nothing. 'ro% 2euters Special 2eport loans
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Chesapea"e CE& too" 51.1 (illion in shrouded personal
3ut (ecause 7cClendon is using the loans to !inance his &artici&ation in the %ell &lan, he de!rays his ris1s$ T%o o! 7cClendonBs lenders, (oth &rivate e9uity !irms, in turn s&read the loan ris1s to other investors (y raising money !rom state &ension !unds and other investors to !und them$ Those insights emerge !rom a 2e(ruary 2"11 document detailing a meeting (et%een 7cClendonBs largest &ersonal lender and a &ros&ective investor$
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Boar( 6urns on 1hesa"ea0e's 1>@, By 7=SS>LL G@L<, 9all Street *ournal, /"ril 2+, 2 12, htt"#$$online&%sI&co!$article$SB1 1,2, .2? 2' ,-11' ,.??'+??. 1'-'? +:,&ht!l :2 S"ecial 7e"ort# 1hesa"ea0e 1>@ too0 81&1 billion in shrou(e( "ersonal loans, By /nna <ri)er an( Brian Gro%, /"ril 2-, 2 12, 7euters, htt"#$$%%%&reuters&co!$article$2 12$ ,$1-$us-chesa"ea0e-!cclen(on-loans-i(=SB7>-'H G/2 12 ,1/onnecting the .ots5 )arcellus Shale 4lay 4layers :6 of 267
G0! he hasnBt had to &ut u& any o! his o%n money, ho% is that alignmentG o! 7cClendon and Chesa&ea1eBs interests, as1ed 7ar1 -anson, an analyst %ith 7orningstar in Chicago$ In 0ouisiana( +e9as( #rkansas( 4ennsylvania and Oklahoma( /hesa'eake files conveyance forms and is a regular 'ractice. # conveyance allows the transfer of ownershi' or interest in real 'ro'erty from one 'erson to another "y a document( such as a deed( lease( or mortgage 4ennsylvanians are slowly "ecoming aware of the 'ro"lem with leasing 'ro'erty and conveyances. <ew sur'rise in gas "oom <otify owners of mortgage +imes8+ri"une #ugust $( 2066
9$
E9cer't ?em'hasis added@5 3rad!ord County lando%ners, %ho have negotiated mineral rights leases, have received a sur&rise on the !inancial side$ Mi1e most com&anies, gas com&anies use lines o! credit secured (y com&any assets to !inance ongoing o&erations$ 'as com&any assets include the leases (y %hich they access natural gas$ As revealed during a recent 3rad!ord County commissioners meeting, #hesapea!e /nergy #orp. has mortgaged the mineral rights to about :,=== properties in (radford #ounty, in order to access a 48 billion line of credit. The &ro(lem is that lando%ners %ho have leased those mineral rights ty&ically are not aware of the mineral rights mortgage until they attempt to use their land as collateral for financing of their own. Then the title search reveals the mineral rights mortgage$ .ince the mineral rights are distinct, the com&anyBs use o! the lease to secure its !inancing should not adversely a!!ect a lando%nerBs attem&t to secure !inancing$ 3ut thatBs u& to individual lending institutions$ According to =iane Aard, a !ormer su&ervisor o! .tanding .tone T%&$, some ban!s have rejected loan applications from landowners because of the company)s mineral rights mortgage. ith )c/lendon!s loans and use of these wells and leased 'ro'erties as collateral 2 where does it leave the 'ro'erty owners in the event of a default, #ccording to <ews8OB5 /hesa'eake Energy /or'. /EO says he "egan "orrowing in 699$ ;O I#O *. )#CBS 8 #'ril 2=( 2062
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Chesa&ea1e 5nergy Cor&$ C5: Au(rey 7cClendon has (een (orro%ing money to cover his share o! the com&anyBs drilling costs since the %ell &artici&ation &rogram (egan in 1**3, he revealed Thursday$
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Ne% sur"rise in gas boo! Notify o%ners of !ortgage, 6i!es-6ribune, /ugust ', 2 11, htt"#$$theti!estribune&co!$o"inion$ne%-sur"rise-in-gas-boo!-notify-o%ners-of-!ortgage-1&11-',,' :, 1hesa"ea0e >nergy 1or"& 1>@ says he began borro%ing in 1::', By *ay F& Mar0s, Ne%s@3, /"ril 1?, 2 12, htt"#$$ne%so0&co!$chesa"ea0e-energy-cor"&-ceo-says-he-began-borro%ing-in-1::'$article$'+? 1 'Hi;442:+Mr6o6/ /onnecting the .ots5 )arcellus Shale 4lay 4layers :2 of 267
7cClendon and his com&anies ; *rcadia <esources +P, Marchmont 6esources MMC and /amesto%n 6esources MMC ; o%n oil and natural gas reserves %orth $) million more than they o%ed on them at the end o! 2"11, according to his disclosure statement$ 7cClendon also sold a share o! his holdings last year !or $1"+$) million, netting a(out $)1 million (e!ore ta8es$ =es&ite that &ro!it, 7cClendonBs cumulative e8&enditures under the &rogram have Csigni!icantlyE e8ceeded &roduction revenues (ecause o! increasing ca&ital costs, according to Chesa&ea1eBs &ro8y statement$ 7cClendon and his a!!iliates o%ed $+4) million on loans secured (y his interest in %ells granted to him (y the shareholder,a&&roved 2ounder Aell Partici&ation Plan as o! =ec$ 31$ The &rogram is e8&ected to (e shut do%n (e!ore its scheduled e8&iration in 2"15, the com&any announced Thursday, citing an agreement (et%een 7cClendon and its (oard$ <O+E5 e see yet another 'ersonal cor'oration added to the list5 #rcadia Cesources 04. How many other 'ersonal cor'orations are there, #re the ;oard of .irectors aware of them, I think I!m having a <i9on8 atergate flash"ackN.. know it. hat .I. they know and HE< .I. they
Source5 Su''lemental .isclosure Cegarding #u"rey B. )c/lendon!s Interests in /hesa'eake Energy /or'oration!s *ounder ell 4artici'ation 4rogram 9: ?6@ Includes amounts "orrowed to 'ay well costs incurred on wells or leasehold for which no 'roved reserves have "een "ooked. ?2@ +his does not include un'roved reserves ?i.e.( 'ro"a"le and 'ossi"le@. ?$@ +his does not include any value for un'roved reserves ?i.e.( 'ro"a"le and 'ossi"le@ or leasehold.
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Su""le!ental <isclosure 7egar(ing /ubrey 3& Mc1len(onLs Cnterests in 1hesa"ea0e >nergy 1or"orationLs Foun(er 9ell Partici"ation Progra!, Business9ire, /"ril 2+, 2 12, htt"#$$%%%&business%ire&co!$ne%s$ho!e$2 12 ,2+ + 1'$en$Su""le!ental-<isclosure-/ubrey-3&-Mc1len(on G>2G- G::s-Cnterests-1hesa"ea0e /onnecting the .ots5 )arcellus Shale 4lay 4layers :$ of 267
?&@ ;ased on re'orting rules of the Securities and E9change /ommission( calculated using an annual discount rate of 60T and the unweighted arithmetic average of 'rices on the first day of each month in 2066. #t 4F9( the value would "e A&&= mm. +his does not include any value for ?a@ un'roved reserves ?i.e.( 'ro"a"le and 'ossi"le@; ?"@ 'roved undevelo'ed reserves or ?c@ leasehold& 4er Ceuters 8 )c/lendon "orrowed through three com'anies he controls. +hese are /hesa'eake Investments 04( Iamestown Cesources 00/( and 0archmont Cesources( 00/. It affords him the o''ortunity to "uy the very same well stake which he uses as collateral against the loans.
Source5 'ro% 2euters Special 2eport EI- -lo"al Energy 4artners s'un off from +rust /om'any of the to form its own inde'endent investment com'any. Dnion ;ank is a su"sidiary of Dnion;an/al /or'oration. Dnion;an/al /or'oration is a wholly owned su"sidiary of +he ;ank of +okyo8)itsu"ishi D*I( 0td.( which is a su"sidiary of )itsu"ishi D*I *inancial -rou'( Inc. #t a *e"ruary 2066 meeting "etween EI- and the <ew )e9ico State Investment /ouncil( the stateHs 'u"lic investment fund( EI- chief o'erating officer Candall ade sought a A:0 million investment from <ew )e9ico. hen asked a"out a 'rior EI- investment in )c/lendonHs well interests( ade "oasted EIhad known /hesa'eake for more than 2: years and J'rovided 're8I4O financing for them in the late 6970s.J Those tight (onds, Aade said, have created other uni9ue o&&ortunities !or 50'$
*)
est ?+ /@ in Ianuary 2066
"In fall 7==5, Mr. Mc#lendon didn)t have li,uidity to participate in the >well? program in 7==@, at which point /I9 entered into discussions with him" and ultimately formed a special purpose vehicle called +archmont <esources, 'ade said.
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Mc1len(on len(er struc0 lucrati)e (eal %ith 1>@, By Brian Gro% an( /nna <ri)er, /"ril 1-, 2 12, 7euters, htt"#$$%%%&reuters&co!$article$2 12$ ,$1-$us-chesa"ea0e-!cclen(on-si(ebar-i(=SB7>-'H HB2 12 ,1-E fee(6y"eF7SSAfee(Na!eFe)erythingA)irtualBran(1hannelF11.+' /onnecting the .ots5 )arcellus Shale 4lay 4layers :& of 267
Through Marchmont, 50' ac9uired the rights to all o! 7cClendonBs %ell sta1es !or 2""* and 2"1"$ /I9 then set up a new special purpose vehicle & 1amestown <esources & to control Mc#lendon)s well shares in 7=::, with rights to 7=:7, 'ade said. 50'Bs investments have (een e8tremely &ro!ita(le$ G50' s%ee&s 1"" &ercent o! the cash !lo% generated (y those &roFects until 50' has gotten all o! its money (ac1 &lus a 13 &ercent realiLed return,G 'ade told ew Me$ico investors. /I9 also gets a A7 percent cut of Mc#lendon)s share of the well profits "in perpetuity," /hesa'eake Energy /or'oration was founded in 6979 "y )c/lendon and +homas K+omL ard. ard was 4resident and /hief O'erating officer until 200>. ard 'urchased a significant interest in SandCidge Energy in 200> and "ecame it!s /EO and /hairman. He left /hesa'eake Energy at that time. )c/lendon started his first oil and natural gas investment com'any( /hesa'eake Investments 04( in 6972. # 699= SE/ filing descri"es /hesa'eake Investments 9= as G$$$ an :1lahoma Mimited Partnershi&, having a (usiness address o! )1"" 4orth Aestern Avenue, :1lahoma City, :1lahoma 7311+$ 7r$ 7cClendon is the sole general &artner o! C0$ C0 is &rinci&ally engaged in the o%nershi& o! %or1ing interests in oil and gas %ells and leases$G 4er Colling Stone article5 +he ;ig *racking ;u""le5 +he Scam ;ehind the -as ;oom 97( ;y Ieff -oodell. )arch 6( 2062 As 7cClendon &ut it in a con!erence call %ith Aall .treet analysts a !e% years ago, G0 can assure you that (uying leases !or 8 and selling them !or 58 or 1"8 is a lot more &ro!ita(le than trying to &roduce gas at $5 or $) &er million cu(ic !eet$G One needs to ask 8 more 'rofita"le for who and is /hesa'eake Energy in the "usiness of Oil G -as or Ceal Estate fli''ing, Co/s and ,as"et(all Oil and gas wells and leases aren!t the only interests of /hesa'eake Investment. It also has interests in cows( s'ecifically "eef cows( and "asket"all. #n internet search revealed /hesa'eake Investments has :0T interest in Heritage ;eef /attle /om'any( 00/(99 which has locations in Haskell( 0a"ette and 4awnee counties of Bansas and heeler /ounty( +e9as. Bathleen )c/lendon is also listed as an owner of the Haskell and heeler county locations. +he other :0T is owned "y +lw Investments Inc( owned "y +om ard.
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Mc1len(on /ubrey 3, et al& T S1 1'<$/ T 1hesa"ea0e >nergy 1or" T @n '$1 $:?, htt"#$$%%%&secinfo&co!$(7;4"&-14&ht!H?"n :6he Big Frac0ing Bubble# 6he Sca! Behin( /ubrey Mc1len(on's Gas Boo!, 7olling Stone, By *eff Goo(ell March 1, 2 12, htt"#$$%%%&rollingstone&co!$"olitics$ne%s$the-big-frac0ing-bubble-the-sca!-behin(-the-gas-boo!2 12 ' 1Hi;442/2@:h=s: :: =S</ subsi(y infor!ation for 1hesa"ea0e Cn)est!ents L", >9G Far! Subsi(ies, htt"#$$far!&e%g&org$"erson(etail&"h"E custnu!berF/11-:?'-/onnecting the .ots5 )arcellus Shale 4lay 4layers :: of 267
Celated is another com'any called Heritage *eeders 04600 with the #u"rey G Bathleen )c/lendon and +om ard listed as owners.
Source5 htt'5%%farm.ewg.org *or"es named +om 0 ard U6:: of the &00 richest #mericans in 2007. 606 ard!s "io5 7ade !ortune %ith !ormer rival Au(rey 7cClendon at Chesa&ea1e 5nergy$ As &rivate as 7cClendon is &u(lic$ .truc1 out on his o%n 2""), &aid $5"" million !or controlling sta1e in Te8as gas &roducer 6iata 5nergy$ 6enamed .and6idge 5nergyR !i!th,most,active driller o! ne% natural gas %ells in America$ Production u& +3S in !irst ) months o! 2""+$ Too1 &u(lic last 4ovem(erR stoc1 do%n 2"S since$ :%ns sta1e in (as1et(allBs :1lahoma City Thunder, cattle ranches, !eedlot o&erations$ 2ounded Ahite 2ields home !or trou(led (oys in :1lahoma$
=S</ subsi(y infor!ation for Heritage Fee(ers L", >9G Far! Subsi(ies, htt"#$$far!&e%g&org$"erson(etail&"h"E custnu!berF/11-:?':1Asu!!le)elF%hois 1 1 6he , 7ichest /!ericans, H1.. 6o! 9ar(, Forbes, Se"te!ber 1?, 2 -, htt"#$$%%%&forbes&co!$lists$2 -$.,$, list -D6o!-9ar(DS<M3&ht!l /onnecting the .ots5 )arcellus Shale 4lay 4layers :> of 267
)c/lendon 2
ard connections
ard also took 'art in the * 44. 4er Cig1one6025 Aard, no% the chie! e8ecutive o! .and6idge 5nergy 0nc$ (.= , said during his time at Chesa&ea1e he o&ted to (uy sta1es in Chesa&ea1eBs %ells every year (et%een 1*+* and 2""), a &eriod he said during %hich the com&any drilled Gtens o! thousandsG o! %ells$ Be used the sta!es in the wells as collateral on personal loans, he said, but went through ban!s that had no business dealing with #hesapea!e $ Aard declined to give the amount o! the loans$ "I had personal loans against a part of the investments," 'ard told %ow 1ones. "It was just traditional ban! debt." Aard said he sold his sta1es in Chesa&ea1e %ells to third,&arties in 2""+ as natural, gas &rices !ell (y more than hal! a!ter reaching a &ea1 o! $13 a million 3ritish thermal units$ Aard declined to say ho% much money he received !rom the sale or name the (uyers$
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1hesa"ea0e 1o-Foun(er 9ar( /lso 6oo0 Loans on 9ell Sta0es by <o% *ones Ne%s%ires, 7ig4one, Ben Lefeb)re, /"ril 2 , 2 12, htt"#$$%%%&rig4one&co!$ne%s$article&as"EaDi(F11?1.2 /onnecting the .ots5 )arcellus Shale 4lay 4layers := of 267
G0 sold the %ells !or more than %hat %as o%ed,G Aard said$ onder if ard is doing the same ty'e of deals with Sandridge interests,
$as# &il or 2eal EstateK )onday ?&%2$%62@ 2 Ceuters 'u"lished another article5 Exclusi8e CE&'s sales o- /ell sta"es raise ?uestions at Chesapea"e1+* Excerpt 4o%, 6euters has !ound, C5: Au(rey >$ 7cClendon has em&loyed another %ay to cash in on a &er1 uni9ue to the com&any he runsJ -e sold his share o! t%o large energy &lays at the same time the com&any divested its interest$ Analysts say the deals, %hich generated $)$5 (illion in &roceeds, &ose a &otential con!lict (ecause o! the &ossi(ility that they could have (een timed and structured to suit 7cClendonBs &ersonal interests, rather than those o! the com&any he runs$ Excerpt 0n the t%o asset sale deals, one in 2"11 in Ar1ansas %orth $4$75 (illion and one in 2""+ in :1lahoma %orth $1$75 (illion, 7cClendon sold his interests in Chesa&ea1e, controlled %ells and acreage %hen the com&any divested its interests in the same &ro&erties$ +he financial advisors for these transactions( as well as many others on "ehalf of /hesa'eake Energy( is the firm of Iefferies G /om'any( s'ecifically the Iefferies Energy Investment ;anking -rou' 60& /hairman of the Energy Investment ;anking -rou' is 2alph Eads III. *rom the <ew Oork +imes( Eads is descri"ed as a S%all Player on Wall Street Car8es &ut a .iche1+1 @ ;y +HO)#S B#40#< 2 <O +imes( <ov. 22( 2060 Excerpt CA &articular (right s&ot has (een in energy$ 0n addition to (an1ers li1e 7r$ 5ads, 6andall V =e%ey also (rought %ith it a large technical team o! geologists and other e8&erts$ 7r$ 5ads credits them %ith reaching the conclusion that e8&loring shale !ormations could (e the ne8t (ig thing$ That %as three and a hal! years ago, (e!ore even many energy com&anies %ere interested in shale$ That got 7r$ 5ads thin1ingJ i! there is all this gas availa(le to (e e8tracted, %ho is going to &ay !or itD C0t %as very clear to me that the holders o! acreage did not have enough ca&ital to (e a(le to develo& the assets themselves,E he said$ CThis %as going to have to (e !inanced in large &art (y the industry$E
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>;clusi)e# 1>@'s sales of %ell sta0es raise 5uestions at 1hesa"ea0e, 7euters, By Brian Gro% an( /nna <ri)er, /"r 2', 2 12, htt"#$$%%%&reuters&co!$article$2 12$ ,$2'$us-chesa"ea0e-!cclen(on-sales-i(=SB7>-'M1+B2 12 ,2' 1 , *efferies, >nergy 6ransactions, htt"#$$%%%&Iefco&co!$cosite!gr&"l$ht!l$Cn(ustries$>nergy$Select6ransactions$allDin(e;&sht!l 1 . S!all Player on 9all Street 1ar)es @ut a Niche, By 6H@M/S 3/PL/N, No)e!ber 22, 2 1 , <ealboo0-NB 6i!es&co!, htt"#$$(ealboo0&nyti!es&co!$2 1 $11$22$s!all-"layer-on-%all-street-car)es-out-a-niche$ /onnecting the .ots5 )arcellus Shale 4lay 4layers :7 of 267
*mong the first people to whom Mr. /ads reached out was *ubrey C. Mc#lendon, the chief e$ecutive of #hesapea!e /nergy, who decades earlier had been his fraternity brother at %u!e Dniversity. /e!!eries has advised Chesa&ea1e on more than 15 deals over the last !ive years ; most recently last month, %hen the Chinese state,run oil com&any Cnooc struc1 a $2$2 (illion &artnershi& %ith the com&any to develo& a .outh Te8as shale de&osit$ CCertainly %ith regard to /$?$<s, 6al&h is considered (y me ; and is also generally considered (y others ; to (e the most accom&lished energy investment (an1er in the (usiness, (ar none,E 7r$ 7cClendon said o! 7r$ 5ads<s role in Foint venture deals$ Cemem"er the energy crisis in /alifornia "ack in 2006, Eads was an e9ecutive at El 4aso )erchant Energy -rou'. El 4aso /or'. E9ecutive +ells Cegulators of /ollusion on <atural -as .eal 60> +HE <#+IO< V +HE E<EC-O /CISIS )ay 2:( 2006VCI/#C.O #0O<SO8W#0.IF#C V +I)ES S+#** CI+EC CE9cer'tJ The admission (y 5l Paso e8ecutive 6al&h 5ads mar1ed a shi!t !rom his &revious testimony and %as elicited through shar& 9uestioning (y an angry Fudge %ho threatened to su(&oena 5ads< (oss$ At issue is a 2e(ruary 2""" contract (et%een 5l Paso 7erchant 5nergy 'rou&, a su(sidiary that sells natural gas, and 5l Paso 4atural 'as Co$, another su(sidiary that o%ns and o&erates &i&elines$ 5l Paso 7erchant &aid $3+$5 million last year !or the right to shi& as much as 1$2 (illion cu(ic !eet o! natural gas &er day to Cali!ornia$ The Cali!ornia Pu(lic Htilities Commission alleges that 5l Paso 7erchant too1 advantage o! the deal to %ithhold shi&&ing ca&acity on the &i&eline, creating an arti!icial shortage that sent .outhern Cali!ornia &rices soaring$ .outhern Cali!ornia 5dison estimates that 5l Paso 7erchant<s actions added $3$7 (illion to the state<s total energy (ill, since most &o%er generators rely on natural gas$ The 5l Paso com&anies deny any im&ro&riety and (lame increased demand, lo% storage ca&acity and other inde&endent !actors !or a !ive!old increase in Cali!ornia natural gas &rices since early last year$ 5l Paso<s la%yers have called the $3$7,(illion estimate Ca(surd$E 5ads, &resident o! 5l Paso 7erchant, testi!ied Thursday that he o(tained the tacit a&&roval o! Ailliam A$ Aise, head o! cor&orate &arent 5l Paso Cor&$, !or the contract %ith 5l Paso 4atural 'as Co$ :nly 24 hours earlier in the same courtroom, 5ads had &ortrayed Aise<s role in the &i&eline deal as marginal$ 5ads had suggested that he merely (rie!ed Aise on a deal that 5ads %as in charge o!$
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>l Paso 1or"& >;ecuti)e 6ells 7egulators of 1ollusion on Natural Gas <eal, May 2., 2 1, 7C1/7<@ /L@NS@M/L<CJ/7 , 6CM>S S6/FF 97C6>7, htt"#$$articles&lati!es&co!$2 1$!ay$2.$ne%s$!n-2'2. /onnecting the .ots5 )arcellus Shale 4lay 4layers :9 of 267
3ut on Thursday, /udge Curtis M$ Aagner /r$, a&&arently relying on com&any documents that remain under court seal, said 5ads< e8&lanation %as not (elieva(le$ C0 thin1 0<m (eing given the run,around on this,E Aagner told 5ads in o&en court, startling la%yers !or (oth sides into a dead silence$ C0 am Fust a&&alled that you are trying to &ull something over my eyes$E >-ter the ,oo% in .atural $as( <O times560= ?em'hasis added@ 0n &rivate, 7r$ 5ads ac1no%ledged that his &itches involved a (it o! (luster$ CTy&ically, %e re&resent sellers, so I want to persuade buyers that gas prices are going to be as high as possible,E 7r$ 5ads said$ CThe (uyers are (ig (oys ; they are giant com&anies %ith thousands o! gas economists %ho 1no% %ay more than 0 1no%$ #aveat emptor$E Eads is on the "oard of +rustees for the #merican /lean Skies *oundation ?#/S*@( a /hesa'eake Energy front grou'( and a trustee .uke Dniversity607. ?)c/lendon is also a trustee of #/S*.@ .ominic .ell!Osso609 is another Iefferies 2 /hesa'eake connection. In 2007( .ell!Osso left Iefferies as an investment "anker to take a 'osition as Fice 4resident of *inance and /hief *inancial Officer of /hesa'eakeHs wholly8owned midstream su"sidiary /hesa'eake )idstream .evelo'ment( 0.4( .ell!Osso /hesa'eakeHs new Senior Fice 4resident and /hief *inancial Officer in 2060.660 .ell!Osso re'laced K7arcus C$ 6o%land, 5+, its Chie! 2inancial :!!icer !or the &ast 1+ years, %ill resign as o! :cto(er 2*, 2"1" to Foin Cisco, Te8as,(ased 2rac Tech .ervices, MMC as its President$ 2rac Tech is one o! the largest &roviders o! hydraulic !racturing services in the H$.$ Chesa&ea1e has invested a&&ro8imately $375 million in 2rac Tech and o%ns an a&&ro8imate 2)S interest in the com&any$E Chesapea"e Turns to Ce--eriesM Eads in 5); ,illion 3eals Energy 666 ;y Wachary C. )ider 8 )ay 67( 2062 V ;looms"urg
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/fter the Boo! in Natural Gas, @ctober 2 , 2 12, NB 6i!es, htt"#$$%%%&nyti!es&co!$2 12$1 $21$business$energyen)iron!ent$in-a-natural-gas-glut-big-%inners-an(-losers&ht!lE"age%ante(F2ADrF2Ah"%Aa(;nnl;F1'. ?+'+'-=9a%!u76*aHgP;;l5N'?!%A 1 Boar( of 6rustees, <u0e =ni)ersity, 7al"h >a(s CCC, 7al"h >a(s is )ice chair!an of *efferies A 1o&, Cnc&, a =&S& in)est!ent ban0, %here he chairs the fir!'s global energy section& He also ser)es on the boar( of the /!erican 1lean S0ies Foun(ation& htt"#$$%%%&trustees&(u0e&e(u$trustees$bios$ea(s&"h" & See also# htt"#$$%%%&cleans0ies&org$"(f$acsf-boar(&"(f 1 : 1hesa"ea0e >nergy 1or"oration Manage!ent 6ea!,htt"#$$%%%&ch0&co!$/bout$Manage!ent6ea!$Pages$(efault&as"; 11 1hesa"ea0e >nergy 1or"oration Press 7elease, @ctober 1', 2 1 , htt"#$$%%%&ch0&co!$ne%s$articles$"ages$1,-1::'&as"; 111 1hesa"ea0e 6urns to *efferiesL >a(s in 82- Billion <eals# >nergy, By Machary 7& Mi(er - May 1-, 2 12 U Bloo!sburg, htt"#$$%%%&bloo!berg&co!$ne%s$2 12- .-1?$chesa"ea0e-turns-to-Iefferies-ea(s-in-2--billion-(eals-energy&ht!l /onnecting the .ots5 )arcellus Shale 4lay 4layers >0 of 267
E9cer't ?em'hasis added@ 5 5ads and /e!!eries advised Chesa&ea1e on the deals that %ould hel& them &ay !or itJ selling !uture &roduction in the !orm o! Cvolumetric &roduction &ayments,E and creating Foint ventures %ith dee&,&oc1eted &artners to !und the cost o! drilling %ells$ The %or1 %as &articularly &ro!ita(le !or /e!!eries, %hich too1 the Foint,venture model used at Chesa&ea1e and sold it to com&anies across the energy industry$ * wave of the ventures followed, as oil majors and national oil companies sought to get in on the D.S. shale boom. 1efferies played a role in almost all of those transactions, helping the firm jump to the top ran!s of merger advisers in the energy industry through deals li!e /ncana #orp.2s 4:.A8 billion partnership with Mitsubishi #orp., established this year, in a gas field in #anada. #hesapea!e #hief Einancial 0fficer %omenic %ell20sso joined after serving as an investment ban!er with 1efferies for two years, according to the com&any<s %e(site$ E9actly what 'art Eads and%or .ell!Osso 'layed in the 2007 and 2066 transactions is unknown at this time( "ut we do know Iefferies G /om'any acted as *inancial #dvisors( and KsomeoneL knew of )c/lendon!s sale of his shares and KreinvestmentL as a 'urchaser through his $ 'ersonal cor'orations. +here were two transactions in 2007 "etween /hesa'eake and ;4 mentioned in this 2007 ;4 announcement5 Chesapea"e Energy Corporation and ,P >%erica >nnounce 'ayette8ille Shale Coint Henture662 OB0#HO)# /I+O( OB #<. HODS+O<( +E( SE4+E);EC 2( 2007 8 /hesa'eake Energy /or'oration ?<OSE5/HB@ and ;4 #merica ?<OSE5;4@ today announced the e9ecution of a 0etter of Intent for a 3oint venture where"y ;4 will acMuire a 2:T interest in /hesa'eakeHs *ayetteville Shale assets in #rkansas for A6.9 "illion. Excerpt 3P %ill &ay $1$1 (illion in cash at closing and %ill &ay a !urther $+"" million during the remainder o! 2""+ and in 2""* (y !unding 1""S o! Chesa&ea1eBs 75S share o! drilling and com&letion e8&enditures until the $+"" million o(ligation has (een !unded$ Chesa&ea1e &lans to continue ac9uiring leasehold in the 2ayetteville .hale &lay and 3P %ill have the right to a 25S &artici&ation in any such additional leasehold$ The transaction is su(Fect to the e8ecution o! mutually acce&ta(le de!initive documentation that the com&anies antici&ate e8ecuting %ithin the ne8t %ee1 and closing is antici&ated to occur later this month$ Excerpt /ust a month a!ter closing the sale o! all our Ar1oma 3asin Aood!ord .hale assets in :1lahoma to 3P !or $1$7 (illion, %e are &leased to no% announce a second maFor
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1hesa"ea0e >nergy 1or"oration an( BP /!erica /nnounce Fayette)ille Shale *oint Jenture, BP Press 7elease, Se"te!ber 2, 2 -, htt"#$$%%%&b"&co!$genericarticle&(oEcategoryC(F2 12:+-AcontentC(F? ,?+1. /onnecting the .ots5 )arcellus Shale 4lay 4layers >6 of 267
transaction %ith 3P !or a 25S interest in our 2ayetteville .hale assets in Ar1ansas !or $1$* (illion$ Excerpt GThe PNP -aynesville .hale Foint venture and the 3P 2ayetteville .hale Foint venture together %ill &ay !or a&&ro8imately $2$5 (illion o! Chesa&ea1eBs drilling and com&letion e8&enditures currently &lanned !or the second hal! o! 2""+ through 2"1"$ As &reviously announced, %e are also &ursuing a similar transaction involving our 7arcellus .hale assets %ith others in the industry that %e ho&e to com&lete (y year,end 2""+$G 4er Ceuters5 S'ecial Ce'ort5 /hesa'eake /EO took A6.6 "illion in shrouded 'ersonal loans 66$ 7cClendonBs (iggest &ersonal lender, 50', has (een a (ig !inancer !or Chesa&ea1e, too$ 0n 4ovem(er, Chesa&ea1e raised $1$25 (illion !rom a grou& o! investors including 50' through the sale o! G&er&etual &re!erred sharesG in a ne%ly !ormed entity, Chesa&ea1e Htica MMC, %hich controls a(out +"",""" acres o! oil and gas,rich land in :hio$ The sale o!!ers lucrative terms to 50' investors, &aying an annual dividend o! 7 &ercent and royalty interests !rom oil and gas %ells, according to analysts$ :n A&ril *, the com&any announced a nearly identical deal to raise another $1$25 (illion !rom 50' and other investors, in another ne% su(sidiary called C-> Cleveland Ton1a%a$ =ividends on &re!erred shares are controversial (ecause they are &aid (e!ore regular dividends o%ed to common shareholders$ G3asically itBs a !orm o! more e8&ensive de(t,G 7orningstarBs -anson said$ G0t ma1es it a&&ear that itBs not de(t, (ut it sits on to& o! o(ligations to the common shareholder$G The !act that 7cClendonBs largest &ersonal lender received !avora(le terms on its Chesa&ea1e investments caused some Aall .treet analysts to call !or more in!ormation a(out 7cClendonBs loans$ #nother 4layer is EiMing -ao66& is 4resident and Investment )anager for /hina Investment /or'oration ?/I/@ which has a minority stake in the /HB8Dtica66: deal "etween Borea Investment /or'oration and /hesa'eake. -ao is a .uke Dniversity +rustee. 3a%age Control 4ress Celease from /hesa'eake Energy( &%2>%20625 /hesa'eake Energy /or'orationHs ;oard
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S"ecial 7e"ort# 1hesa"ea0e 1>@ too0 81&1 billion in shrou(e( "ersonal loans, 7euters, By /nna <ri)er an( Brian Gro%, /"ril 1-, 2 12, htt"#$$%%%&reuters&co!$article$2 12$ ,$1-$us-chesa"ea0e-!cclen(on-loans-i(=SB7>-'H G/2 12 ,111, Boar( of 6rustees, <u0e =ni)ersity, Ni5ing Gao, Ni5ing Gao %as na!e( "resi(ent an( chief in)est!ent officer of 1hina Cn)est!ent 1or"oration in 2 ?& 6he cor"oration, a go)ern!ent-s"onsore( entity of the Peo"le's 7e"ublic of 1hina that see0s to in)est in securities an( co!!o(ities abroa(, is res"onsible for !anaging "art of the country's foreign e;change reser)es& htt"#$$%%%&trustees&(u0e&e(u$trustees$bios$gao&"h" 11. 1hesa"ea0e >nergy 1or"oration /nnounces @"tion >;ercise an( 1losing of Pri)ate Place!ent of 8: Million of .&?.G 1u!ulati)e Non-Joting 1on)ertible Preferre( Stoc0, 1hesa"ea0e >nergy Press 7elease, *une 21, 2 1 , htt"s#$$%%%&ch0&co!$ne%s$articles$Pages$1,, 2,&as"; /onnecting the .ots5 )arcellus Shale 4lay 4layers >2 of 267
and /EO #u"rey B. )c/lendon #gree to <egotiate Early +ermination of *ounder ell 4artici'ation 4rogram 8 /EO #grees to Se'arately 4rovide Enhanced * 44 .isclosure 66> Chesa&ea1e 5nergy Cor&oration today announced that its 3oard o! =irectors has determined that it does not intend to e8tend the com&anyBs 2ounder Aell Partici&ation Program (2APP %ith its chie! e8ecutive o!!icer, Au(rey >$ 7cClendon, beyond its present :=&year term ending %ecember F:, 7=:8. 2ollo%ing consultation %ith the com&anyBs 3oard o! =irectors, 7r$ 7cClendon %ill se&arately disclose su&&lemental in!ormation regarding the interests he has ac9uired through the com&anyBs 2ounder Aell Partici&ation Program as of %ecember F:, 7=::$ The com&any also announced the 3oard o! =irectors is revie%ing the !inancing arrangements (et%een 7r$ 7cClendon (and the entities through %hich he &artici&ates in the 2APP and any third &arty that has had or may have a relationshi& %ith the com&any in any ca&acity. Chesa&ea1e also %ishes to clari!y a statement a&&earing in its A&ril 1+, 2"12 &ress release ca&tioned GChesa&ea1e 5nergy Cor&oration 'eneral Counsel -enry /$ -ood 0ssues .tatement$G The statement that Gthe 3oard o! =irectors is fully aware o! the e8istence o! 7r$ 7cClendonBs !inancing transactionsG %as intended to convey the !act that the 3oard o! =irectors is generally aware that 7r$ 7cClendon used interests ac9uired through his &artici&ation in the 2APP as security in &ersonal !inancing transactions$ The (oard of %irectors did not review, approve or have !nowledge of the specific transactions engaged in by Mr. Mc#lendon or the terms of those transactions$ Is your head s'inning over that one, *D00O # #CE actually means -E<EC#00O # #CE, Since when, To repeatJ G The 3oard o! =irectors did not revie%, a&&rove or have 1no%ledge o! the s&eci!ic transactions engaged in (y 7cClendon or the terms o! those transactions$G So they were *ully #ware ( "ut now only -enerally #ware "ut had no knowledge of s'ecific transactions, So they kind of knew "ut not really knew )c/lendon was u' to something( "ut didnHt know what,,, I think I!m having a <i9on8 atergate flash"ackN.. know it. hat .I. they know and HE< .I. they
3a%age Control Too =ittle Too =ateK ithin a cou'le hours of the &%2> /hesa'eake Energy 'ress release made its way into the news( Ceuters dro''ed another shoe. SEC starts pro(e o- Chesapea"e CE&'s /ell sta"es 66= @ 2euters# >pril )7# )+1)
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1hesa"ea0e >nergy 1or"oration's Boar( an( 1>@ /ubrey 3& Mc1len(on /gree to Negotiate >arly 6er!ination of Foun(er 9ell Partici"ation Progra!, ,$2+$2 12, htt"#$$%%%&ch0&co!$ne%s$articles$"ages$1+-?-'2&as"; 11? S>1 starts "robe of 1hesa"ea0e 1>@'s %ell sta0es, 7euters, By >rnest Schey(er an( Brian Gro%, /"ril 2+, 2 12, htt"#$$%%%&reuters&co!$article$2 12$ ,$2+$us-chesa"ea0e-i(=SB7>-'P PN2 12 ,2+ /onnecting the .ots5 )arcellus Shale 4lay 4layers >$ of 267
(6euters , The .ecurities and 58change Commission has o&ened an informal in,uiry into Chesa&ea1e 5nergy Cor&Bs controversial &rogram that granted Chie! 58ecutive Au(rey 7cClendon a share in each o! the natural gas &roducerBs %ells, a source !amiliar %ith the matter said on Thursday$ That investigation, (eing led (y the .5CBs o!!ice in 2ort Aorth, Te8as, comes a!ter 6euters re&orted a(out loans 7cClendon had o(tained on those %ells that raised concerns a(out a &otential con!lict o! interest (y the com&anyBs C5:$ <ote5 +his is an I<*OC)#0 I<XDICO( the first of many ste's the D.S. Securities and E9change /ommission may take. 4er SE/ 4age6675 #ll SE/ investigations are conducted 'rivately. *acts are develo'ed to the fullest e9tent 'ossi"le through informal inMuiry( interviewing witnesses( e9amining "rokerage records( reviewing trading data( and other methods. ith a formal order of investigation( the .ivisionHs staff may com'el witnesses "y su"'oena to testify and 'roduce "ooks( records( and other relevant documents. *ollowing an investigation( SE/ staff 'resent their findings to the /ommission for its review. +he /ommission can authori1e the staff to file a case in federal court or "ring an administrative action. In many cases( the /ommission and the 'arty charged decide to settle a matter without trial. /ommon violations that may lead to SE/ investigations include5 misre'resentation or omission of im'ortant information a"out securities; mani'ulating the market 'rices of securities; stealing customersH funds or securities; violating "roker8dealersH res'onsi"ility to treat customers fairly; insider trading ?violating a trust relationshi' "y trading on material( non8'u"lic information a"out a security@; and selling unregistered securities. +he news of the SE/ informal inMuiry was followed "y5 SG4 cuts /hesa'eake Energy rating to H;;H 669Y +hu #'r 2>( 2062 >5&$'m -)+ 0verview H$.$ natural gas &roducer Chesa&ea1e 5nergy Cor&$ has announced that it is negotiating an early termination o! the 2ounder Aell Partici&ation Program (2APP a!ter revelations a(out the C5:Bs &ersonal transactions revealed shortcomings in the com&anyBs e8isting cor&orate governance &ractices$ The (oard is currently revie%ing !inancing agreements (et%een the C5: and third &arties$ Turmoil resulting !rom these develo&ments could ham&er Chesa&ea1eBs a(ility to meet the massive e8ternal !unding re9uirements stemming !rom its currently %ea1 o&erating cash !lo% and continuing aggressive ca&ital s&ending$ 'e are lowering our corporate credit and senior unsecured debt issue ratings on #hesapea!e to )(() from )((G), and lowering the ratings on two affiliates&& #hesapea!e 0ilfield 0perating ++# and #hesapea!e Midstream Partners +.P.
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=&S& Securities an( >;change 1o!!ission, 6he Cn)estor's /()ocate# Ho% the S>1 Protects Cn)estors, Maintains Mar0et Cntegrity, an( Facilitates 1a"ital For!ation, htt"#$$%%%&sec&go)$about$%hat%e(o&sht!l 11: SAP cuts 1hesa"ea0e >nergy rating to 'BB', 7euters, /"r 2+, 2 12, htt"#$$af&reuters&co!$article$energy@ilNe%s$i(/F9N/.:1 2 12 ,2+ /onnecting the .ots5 )arcellus Shale 4lay 4layers >& of 267
,, Ae are &lacing all these ratings on #redit'atch with negative implications$ <ating *ction :n A&ril 2), 2"12, .tandard V PoorBs 6atings .ervices lo%ered its ratings on :1lahoma City,(ased Chesa&ea1e 5nergy Cor&$, including the cor&orate credit rating to B33B !rom B33WB, and lo%ered ratings on t%o related entities,,Chesa&ea1e :il!ield :&erating MMC and Chesa&ea1e 7idstream Partners M$P$ At the same time, %e &laced all these ratings on CreditAatch %ith negative im&lications$ <ationale The do%ngrade and CreditAatch &lacement re!lect our vie% that recent revelations a(out &ersonal transactions underta1en (y Chesa&ea1eBs C5: relating to the com&anyBs unusual 2APP underscore shortcomings in Chesa&ea1e 5nergy Cor&$Bs cor&orate governance &ractices$
Shareholder's ,attle
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/hesa'eakeHs /EO should "e re'laced5 #rgus 620 Ceuters 2 *riday #'r 20( 2062 (6euters , Chesa&ea1e 5nergy Cor&Bs chie! e8ecutive o!!icer or (oard, or (oth, should (e re&laced (ecause o! a gro%ing de(t &ile, the o&a9ue nature o! the oil and gas com&anyBs !inances and C5: Au(rey 7cClendonBs G9uestiona(leG transactions %ith the com&any, Argus 6esearch oil analyst Phil Aeiss said on 2riday$ GAhen %e consider the !ull !inancial &icture at Chesa&ea1e, including its high de(t levels, its use o! !inancial engineering, the relatively lo% 9uality o! its !inancial data, the 9uestiona(le nature o! some o! the C5:Bs transactions %ith the com&any, and the a&&arent un%illingness o! the (oard to &ut a sto& to at least some o! these &ractices , we believe the best thing for investors would be to replace the board andHor the #/0,G Aeiss %rote in a note to clients$ *or a num"er of years( the Shareholders have unsuccessfully attem'ted to change /hesa'eakeHs ;oard of .irectors. #s noted in more than one article( )c/lendon was well insulated "y his hand'icked "oard. +wo of the more interesting former "oard mem"ers are .on 0 <ickles( and *rank Beating.626
.on <ickles is former Senator .on <ickles ?C8OB@. He founded the <ickles -rou' 622 in 200:.
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1hesa"ea0e's 1>@ shoul( be re"lace(# /rgus, 7euters, /"ril 2 , 2 12, htt"#$$%%%&reuters&co!$article$2 12$ ,$2 $uschesa"ea0e-ceo-i(=SB7>-'* ='2 12 ,2 121 1hesa"ea0e loses a fe% Obut not allP "olitical connections, By Laurie Bennett, Muc0ety, *une 22, 2 12, htt"#$$ne%s&!uc0ety&co!$2 12$ +$22$chesa"ea0e-loses-a-fe%-but-not-all-"olitical-connections$'?'.1 122 6he Nic0les Grou", <on Nic0les - 1hair!an A 1>@, htt"#$$%%%&nic0lesgrou"&co!$bios$nic0les&"h" /onnecting the .ots5 )arcellus Shale 4lay 4layers >> of 267
C0n his tenure as Hnited .tates .enator, 4ic1les (uilt a legacy o! advancing free enterprise causes, from natural gas deregulation and re&eal o! the %ind!all &ro!its ta8 in the 1*+"s, to re&eal o! onerous ergonomics regulation and the !ight against !ederaliLed health care during the Clinton Administration$ -e %as the author o! the Congressional 6evie% Act and the Child CitiLenshi& Act, and the principal sponsor of President (ush)s economic growth pac!age in 7==F, which cut capital gains and corporate dividend ta$es to :8 percent. 4ic1les %as chairman o! the in!luential .enate 3udget Committee during his last t%o years in the .enate, and %as a senior mem(er o! (oth the .enate 2inance Committee and the 5nergy and 4atural 6esources Committee$E +he <ickles -rou' is a lo""ying firm 'roviding services such as 0egislative /onsulting( 4olitical <avigation( /oalition ;uilding( and 4olicy .evelo'ment. .uring his term as Senator( <ickles was a mem"er of the #merican 0egislative E9change /ouncil ?#0E/@.62$ hile he was #ssistant )inority 0eader in the D.S. Senate( #0E/ "egan a new alumni forum for former mem"ers who serve in 'u"lic office( called the J#0E/ #lumni *orum.J It was launched in 2006 and is Jcharged with develo'ing a national forum to encourage im'roved communications among current and former #0E/ mem"ers. <ickles is now an #0E/ #lumni. *rank Beating ?C@ is the former -overnor of Oklahoma from 699:8200$( an now /EO for the #merican ;ankers #ssociation62&. He was a former #ssistant Secretary( .e'artment of +reasury. #"out the #merican ;ankers #ssociation62: *ounded in 67=:( the #merican ;ankers #ssociation re'resents "anks of all si1es and charters and is the voice for the nationHs A6$ trillion "anking industry and its 2 million em'loyees. hile -overnor( Beating was a mem"er of #0E/( and is now one of #0E/!s K-overnors #lumniL62>. /hesa'eake Energy was a J.irectorJ level s'onsor of 2066 #merican 0egislative E9change /ouncil #nnual /onference62=( which in 2060( eMuated to A60(000.
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<on Nic0les, Source%atch, Nic0les is an alu!nus of the /!erican Legislati)e >;change 1ouncil O/L>1P& <uring the ti!e that he %as /ssistant Minority Lea(er in the =&S& Senate, /L>1 began a ne% alu!ni foru! for for!er !e!bers %ho ser)e in "ublic office, calle( the S/L>1 /lu!ni Foru!&S Ct %as launche( in 2 1 an( is Scharge( %ith (e)elo"ing a national foru! to encourage i!"ro)e( co!!unications a!ong current an( for!er /L>1 !e!bers& /lu!ni Foru! acti)ities %ill inclu(e s"ecial in)estigations an( s"ea0ing engage!ents at !aIor /L>1 e)ents, an( Ioint "olicy !e!bers %ith state an( national lea(ers& & & & 6hrough the /lu!ni Foru! "rogra!, /L>1 %ill see0 the su""ort of its for!er !e!bers in the (e)elo"!ent of refor!s that reflect the "rinci"les of the organi4ation at all le)els of go)ern!ent&S, htt"#$$%%%&source%atch&org$in(e;&"h"EtitleF<onDNic0les 12, /!erican Ban0ers /ssociation, htt"#$$%%%&aba&co!$(efault&ht! 12. /!erican Ban0ers /ssociation, /bout, htt"#$$%%%&aba&co!$/bout$Pages$(efault&as"; 12+ /!erican Legislati)e >;change 1ouncil O/L>1P& Go)ernors %ith 6ies to /L>1, Source%atch, htt"#$$%%%&source%atch&org$in(e;&"h"EtitleF/L>1DPoliticiansHGo)ernorsD%ithD6iesDtoD/L>1 12? 1hesa"ea0e >nergy, Source%atch, Su""ort for the /!erican Legislati)e >;change 1ouncil, htt"#$$%%%&source%atch&org$in(e;&"h"E /onnecting the .ots5 )arcellus Shale 4lay 4layers >= of 267
.e/ ,oard o- 3irectors Chesapea"e Energy Corporation >nnounces 2econstituted ,oard @ 7O)1O)+1) 1); :>MA-:7A C0T@,,(3H.045.. A065 ,,/un$ 21, 2"12,, Chesa&ea1e 5nergy Cor&oration (4@.5JC-> today announced the a&&ointment o! !ive ne% inde&endent directors to its reconstituted nine,mem(er 3oard o! =irectors$ Archie A$ =unham, !ormer Chairman o! ConocoPhilli&s and !ormer Chie! 58ecutive :!!icer o! Conoco, has (een a&&ointed (y the 3oard as Chesa&ea1e<s ne% inde&endent 4on,58ecutive Chairman$ 7r$ =unham has had no &revious relationshi& %ith Chesa&ea1e$ Au(rey >$ 7cClendon has relin9uished the &osition o! Chairman (ut remains a =irector and %ill continue to serve as Chesa&ea1e<s Chie! 58ecutive :!!icer and as President$ Chesa&ea1e<s 3oard also a&&ointed !our other ne% inde&endent directorsJ three &ro&osed (y .outheastern Asset 7anagement (.A7 , its largest shareholder %ith a 13$*S o%nershi& sta1e, and one &ro&osed (y Carl C$ 0cahn, its second largest shareholder %ith a 7$)S sta1e$ The ne% directors &ro&osed (y .A7 are 3o( '$ Ale8ander, 6$ 3rad 7artin and 2rederic 7$ Poses$ The ne% director &ro&osed (y 7r$ 0cahn is ?incent /$ 0ntrieri$ These !ive ne% directors re&lace 6ichard >$ =avidson, >athleen 7$ 5is(renner, 2ran1 >eating and =on 4ic1les %ho have resigned and Charles T$ 7a8%ell %ho retired at the annual meeting on /une +, 2"12$ 2ollo%ing the annual meeting, 7r$ =avidson and ?$ 3urns -argis su(mitted their resignations %hen they did not receive su&&ort o! a maFority o! the shares voted$ The 3oard acce&ted 7r$ =avidson<s resignation, (ut given 7r$ -argis< current role as Chairman o! the Audit Committee, and re!lecting in&ut !rom .A7 and 7r$ 0cahn, the 3oard has declined to acce&t his resignation, at this time, to &ermit com&letion o! the &reviously announced revie% o! the !inancing arrangements (et%een 7r$ 7cClendon (and the entities through %hich he &artici&ates in the 2ounder Aell Partici&ation Program and any third &arty that has had or may have a relationshi& %ith the com&any in any ca&acity$ 7r$ -argis %ill continue to lead the revie%, (ut is not e8&ected to remain Chairman o! the Audit Committee$ H&on com&letion o! the revie%, the 3oard %ill revisit his resignation$ Chesapea"e and Encana Ceuters dro''ed another "ig shoe on /hesa'eake with the e9clusive re'ort regarding land 'lans in )ichigan. /hesa'eake Energy and Encana are under antitrust investigations 629 surrounding emails which re'ortedly show information "eing shared to give them the advantage over )ichigan land owners. E9cer't5 C3y /une 2"1", the &rice to lease &rime land sur&assed $2,""" an acre in &arts o! 4orthern 7ichigan$ 0n the months a!ter Chesa&ea1e and 5ncana (egan tal1ing
titleF1hesa"ea0eD>nergyHSu""ortDforDtheD/!ericanDLegislati)eD>;changeD1ouncil 121hesa"ea0e >nergy 1or"oration /nnounces 7econstitute( Boar(, +$21$2 12, Press 7elease, htt"#$$%%%&ch0&co!$ne%s$articles$"ages$1? ?' .&as"; 12: >;clusi)e# >ncana ti""e( off 1hesa"ea0e to lan( "lans in Michigan - >!ails, 7euters, By Brian Gro% an( *oshua Schneyer, 9e( *ul 11, 2 12, htt"#$$%%%&reuters&co!$article$2 12$ ?$11$us-chesa"ea0e-encana-lan(i(=SB7>-+/ G+2 12 ?11 /onnecting the .ots5 )arcellus Shale 4lay 4layers >7 of 267
a(out s&litting u& 7ichigan territory, &rices !ell as much as *" &ercent$ 0n the same &eriod, the &rice o! natural gas !utures !ell some 2" &ercent$ Price,!i8ing, (id,rigging and mar1et allocations (y com&etitors are illegal in the Hnited .tates under the .herman Antitrust Act, and com&anies can (e !ined u& to $1"" million !or each o!!ense$ 5ncana said it held tal1s %ith Chesa&ea1e %ithout reaching an agreement on a Foint venture$ 0t has (egun an internal in9uiry led (y the chairman o! its (oard o! directors$ Chesa&ea1e also ac1no%ledged it held tal1s %ith 5ncana (ut said the t%o com&anies never consummated any agreement and never (id Fointly$E *ollowing this story( Encana stated they would "e conducting an internal investigation. ;y Se'tem"er 2062( Encana cleared itself of collusion. Encana clears itself of collusion in )ichigan 6$0 5 E9cer't ?Em'hasis added@5 5ncana Cor& said on Aednesday an internal investigation has determined that it did not collude %ith Chesa&ea1e 5nergy Cor& to lo%er the &rice o! land ac9uisitions in 7ichigan t%o years ago$ The com&any<s (oard o! directors, %hich led the investigation launched on /une 25 %ith the assistance o! outside attorneys, did not &rovide a re&ort on the sco&e o! the in9uiry, nor e8&lain ho% it reached its conclusion$ CAe can<t o!!er more detail than %hat %e<ve released as the issue is still under investigation (y the Antitrust =ivision o! the =e&artment o! /ustice and the 7ichigan Attorney 'eneral,E 5ncana s&o1esman /ay Averill said in an email$ 5ncana has (een served %ith su(&eonas !rom Antitrust =ivision o! the H$.$ =e&artment o! /ustice and a civil investigatory demand !rom the 7ichigan Attorney 'eneral$ 5ncana said it %ill coo&erate %ith the t%o agencies$ Chesa&ea1e 5nergy has con!irmed a !ederal grand Fury is loo1ing into the com&any<s ac9uisition o! land and leases in 7ichigan$ +he entanglements "etween /hesa'eake Energy and Encana "ecame even more interesting with the Ceuters! article regarding /hesa'eake!s attem't to unload KworthlessL acreage. Ceuters re'orts6$65 ?em'hasis added@ :n :cto(er 3", 2"1", Chesa&ea1e C5: Au(rey 7cClendon told /e!! AoFahn, a to& e8ecutive o! 5ncana Cor&, that he %as ready to sell 7ichigan leases held (y Chesa&ea1e , Gat reasona(le terms i! you %ere interested$G AoFahn re&lied that he %anted to Gtrade well information first,G according to emails revie%ed (y 6euters$ 5ncana and Chesa&ea1e declined to comment on the emails$
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>ncana clears itself of collusion in Michigan, 7euters, By Brian Gro% an( Scott Haggett, Se"te!ber ., 2 12, htt"#$$%%%&reuters&co!$article$2 12$ :$ .$us-encana-chesa"ea0e-i(=SB7>--,1*>2 12 : . 1'1 Ho% 1hesa"ea0e trie( to unloa( S%orthlessS acreage, 7euters, By Brian Gro% an( *oshua Schneyer, @ctober 2, 2 12, htt"#$$%%%&reuters&co!$article$2 12$1 $ 2$us-chesa"ea0e-lan(grab-sale-i(=SB7>-:1 >72 121 2 /onnecting the .ots5 )arcellus Shale 4lay 4layers >9 of 267
Chesa&ea1e e8ecutives 1ne% that their test well in Michigan had performed poorly$ 3ut the emails indicate that Mc#lendon wanted to provide /ncana just enough information about #hesapea!e)s well to !eep the sale tal!s going, without showing the well)s full & and disappointing & results. G3ut isnBt our &ossi(le gain that they could %ant to (uy our (no% %orthless leasesDG 7cClendon %rote to three to& Chesa&ea1e o!!icials on :cto(er 31, 2"1"$ The words in parentheses & "now worthless" & were his. So was the suggestion to provide /ncana barebones information. GAe need to 1no% %hat is the data that %e could release to 5ncana that ma1es us loo1 li1e %e have nothing to hide, yet won)t show anything negative about the playDG he %rote in the same email$ 5ncana didnBt (ite, and Chesa&ea1e is no% mar1eting some 45",""" acres to other &otential (uyers$ Though Mc#lendon once called the acreage "worthless," a prospectus for the sale touts it as containing "the strong possibility" of valuable oil and other li,uids. /hesa'eakeHs )ichigan 'ros'ectus was 'osted on the we"site of )eagher Energy #dvisors6$2( an energy8focused asset acMuisition and divestiture firm that has sold assets for /hesa'eake in the 'ast.
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Meagher >nergy /()isors, 1hesa"ea0e Northern Michigan, Northern Michigan, Silurian /-1 1arbonate an( @r(o)ician 1olling%oo( Shale <e)elo"!ent @""ortunity, htt"#$$%%%&!eaghera()isors&co!$resources$"roIect$1hesa"ea0eG2 Northern G2 Michigan$ /onnecting the .ots5 )arcellus Shale 4lay 4layers =0 of 267
Chapter 0 >u(rey Tossed D Chesapea"e Energy in Search o- ne/ CE& +here are $ rules of "usiness5 6. 0ogic does not a''ly 2. hen the right 'erson gets 'issed( something will "e done. $. If you don!t own the com'any( you!re e9'enda"le. #u"rey )c/lendon forgot rule $. hen /hesa'eake Energy went 'u"lic in 699$( )c/lendon no longer KownedL the com'any; he "ecame an em'loyee and served at the 'leasure of the ;oard of .irectors and shareholders. #t that time( as /hairman of a hand 'icked "oard of directors his 3o" as /hairman and /EO was secure. On +uesday ?6%29%6$@( /hesa'eake announced the "illionaire co8founder( chief e9ecutive( and 'resident has Kagreed to retireL "y #'ril 6. )c/lendon noted his K'hiloso'hical differences with the new ;oard.L 0ast year( amidst news of 'rivate loans( 'rivate hedge funds( investigations "y the Securities E9change /ommission ?SE/@( and sus'icions of colluding with En/ana /or'oration to su''ress land lease 'rices( #u"rey lost his ;I- seat as /hairman of the ;oard of .irectors. In the s'ring of 2062( "illionaire /arl Icahn "ecame the 2nd largest shareholder of /hesa'eake Energy( owning 6$.:T of the shares. Southeastern #sset )anagement( led "y )ason Hawkins( owns 6$.>T. +ogether( they took control of the nine mem"er "oard. # num"er of "oard mem"ers were re'laced. #rchie . .unham6$$( former /onoco /EO%4resident( "ecame the new chairman. .unham was /hairman of /onoco84hilli's( following the merger of /onoco Inc. and 4hilli's 4etroleum /om'any( until his retirement on Se'tem"er $0( 200&. +he Knew im'rovedL /hesa'eake "egan selling off assets to raise ca'ital. #mong the first to "e sold was its midstream o'erations 2 /hesa'eake )idstream ?/)4@. It was sold to -lo"al Infrastructure 4artners ?-I4@ in Iuly 2062 for A28"illion dollars( some midcontinent gathering and 'rocessing assets of /)4 and all of its interests in a su"sidiary( /hesa'eake )idstream .evelo'ment( for another A2 "illion. Other asset sales include5 #'ril 9( 20625 O"tained A6.2: "illion from 'referred shares in the /leveland +onkawa to a ;lackstone led investor grou' #'ril 9( 20625 Caised A=&& million from a Folumetric 'roduction 'ayment to )organ Stanley
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Stuart 1& GilsonV >(%ar( C& /lt!an O2 1 P& 1reating Jalue 6hrough 1or"orate 7estructuring# 1ase Stu(ies in Ban0ru"tcies, Buyouts, an( Brea0u"s& *ohn 9iley an( Sons& "& .':& CSBN :?-- -,? -. '.2-2& /onnecting the .ots5 )arcellus Shale 4lay 4layers =6 of 267
#'ril 9( 20625 -ot A:=2 million for land in the +e9oma oodford 'lay to E99on Se'tem"er 62( 20625 #nnounced raising A>00 million selling non8core Dtica shale assets
+he deals kee' the com'any afloat for 2062. Still( they do not significantly close the ga' "etween the amount /hesa'eake needs to s'end in the future to maintain its current growth and its 'ro3ected revenue. /hesa'eake will need to fill a funding ga' of at least A& "illion in 206$( ;arclay!s analysts estimate.6$& *or the 'ast cou'le of years( /hesa'eake has "een falling "ehind in 'aying "ills 6$:( and royalties to 'ro'erty owners. +here are also unverified rumors of 'ro"lems meeting 'ayroll for workers at drill sites in 4ennsylvania. #dding to the rumor mill( in some areas of 4ennsylvania( /hesa'eake has taken to holding informational meetings with angry 'ro'erty owners in an effort to mollify them. 4ro'erty owners either did not receive a check( did not receive a check in the amount e9'ected( or received a J;I00J for 'ost 'roduction instead of a check. ith regards to not 'aying "ills on time( this may result in 'ro'erty owners having a )echanics 0ien 'lace on their 'ro'erty. Such a lien holds the 4CO4EC+O O <EC res'onsi"le( not /hesa'eake( and may 'ose 'ro"lems in the future for refinancing and%or selling the 'ro'erty. 4ro'erty owners are usually not even aware that such a lien may e9ist until they try to refinance or sell. +o further muck things u'( there is the issue of )c/lendon!s 2T stake in every well drilled via the *ounders ell 4artici'ation 4rogram ?* 44@. +he * 44 allows )c/lendon to 'ersonally own 2.:T of every well( it also means he is res'onsi"le for 2.:T of the 'roduction costs. Hence( the formation of a num"er of 'ersonal cor'orations )c/lendon set u' a few 'ersonal cor'orations. +hese include5 #rcadia Cesources( 00/ Iamestown Cesources( 00/ 0archmont Cesources( 00/ 4elican Energy( 00/ 4ro'erty owners( who have taken time to check out their 'a'erwork at a Cegistry of .eeds( may have "een sur'rised to see these names listed( and wondered who the heck are they and why are they on there. )any have "een told KOh( it!s 3ust 'art of /hesa'eake Energy( don!t worry a"out itL.
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1hesa"ea0e gets breathing roo! %ith 8+&: billion asset sale, 7euters, By >rnest Schey(er an( Michael >r!an, 9e( Se" 12, 2 12 htt"#$$%%%&reuters&co!$article$2 12$ :$12$us-chesa"ea0eenergy-assetsale-i(=SB7>--B L<2 12 :12 1'. S"ecial 7e"ort# 1hesa"ea0e, Mc1len(on en(ure roc0y yearV !ore uncertainty ahea(, 7euters, By Brian Gro%, /nna <ri)er an( *oshua Schneyer, 6hu <ec 2?, 2 12 htt"#$$%%%&reuters&co!$article$2 12$12$2?$us-chesa"ea0e-!cclen(oni(=SB7>-B2 C@2 12122? /onnecting the .ots5 )arcellus Shale 4lay 4layers =2 of 267
)c/lendon "orrowed heavily against his 2.:T stake( and has "orrowed as much as A6.6 "illion6$> in the last three years "y 'ledging his stake in the com'anyHs oil and natural gas wells as collateral the documents reviewed "y Ceuters show. *or other loans( )c/lendon has used his life insurance 'olicy6$= and wine collection as collateral. KIn a -oldman Sachs filing( )r. )c/lendon offered as collateral his wine collection 6$7( detailed on =7 'ages listing the vintages held in his homes in )innesota( )ichigan( ;ermuda and Oklahoma /ity.L <ow that!s scra'ing the "ottom of the "arrel. .on!t count )c/lendon down and out. It won!t "e long "efore he turns u' on some other "oard of directors or similar. +his is how the game of musical chairs is 'layed in the cor'orate world. +he ;oard of .irectors has also delayed the release of their internal investigation into )c/lendon!s loans and related activities. Originally( the re'ort was scheduled to "e release at the end of .ecem"er 2062( it was then 'ushed to the end of Ianuary 206$. <ow they are saying "y end of *e"ruary 206$. )y guess is the re'ort currently "lames everything on )c/lendon( and this led to him "eing given the o'tion to KretireL. +he delay to end of *e"ruary in con3unction with the )c/lendon!s KretirementL leads me to "elieve the re'ort is going under a ma3or rewrite and fu11y8u' the details. hat does it mean for /hesa'eakeHs natural gas drilling activities going forward, <othing. ;usiness as usual. +here have "een rumors of /hesa'eake "eing "ought out "y larger cor'orations( "ut for the 'eo'le living the drill( it still will "e "usiness as usual. ith an #'ril *ools .ay date of actually KretiringL from /hesa'eake Energy( it "rings u' the Muestion of 'arting gifts. ill the 'arting gifts "e short a"out A628million ?'lus 2.7T interest@ to 6$9 "uy "ack the antiMue ma's )c/lendon sold to /hesa'eake, ill )c/lendon "e rewarded for failure and given an outrageous severance 'ackage, If so( then the #'ril *ools 3oke will "e on the shareholders. #s far as 'ro'erty owners with mechanics liens( lower than e9'ected royalties( or "ills for 'roduction costs. +he 3oke is on them too.
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S"ecial 7e"ort# 1hesa"ea0e 1>@ too0 81&1 billion in shrou(e( "ersonal loans, 7euters, By /nna <ri)er an( Brian Gro%, 9e( /"r 1-, 2 12 htt"#$$%%%&reuters&co!$article$2 12$ ,$1-$us-chesa"ea0e-!cclen(on-loans-i(=SB7>-'H G/2 12 ,11'? >;clusi)e# 1hesa"ea0e 1>@ arrange( ne% 8,. !illion loan fro! financier, 7euters, By *ennifer /blan, 9e( May :, 2 12 htt"#$$%%%&reuters&co!$article$2 12$ .$ :$us-eig-chesa"ea0e-!cclen(on-i(=SB7>-,?1H 2 12 . : 1'Boar( 6urns on 1hesa"ea0e's 1>@, 9all Street *ournal, by 7ussell Gol(, /"ril 2+, 2 12 htt"#$$online&%sI&co!$article$SB1 1,2, .2? 2' ,-11' ,.??'+??. 1'-'? +:,&ht!l 1': Cn Legal Settle!ent, 1hesa"ea0e's Mc1len(on 6o Buy Bac0 /nti5ue Ma"s, Forbes, 1hristo"her Hel!an, No)e!ber ', 2 11 htt"#$$%%%&forbes&co!$sites$christo"herhel!an$2 11$11$ '$in-legal-settle!ent-chesa"ea0es-!cclen(on-to-buy-bac0anti5ue-!a"s$ /onnecting the .ots5 )arcellus Shale 4lay 4layers =$ of 267
Chapter 1 McClendon Cleared (y Chesapea"e In )ay of 2062( following revelations of #u"rey )c/lendon!s 'ersonal loans and other financial hanky8 'anky( he was tossed out at /hairman of the ;oard.6&0 # new ;oard of .irectors was assem"led. +he new "oard stated they would conduct and internal investigation of )c/lendon!s activities. +he results of the internal investigation were to "e released at the end of 2062. +his was 'ushed to Ianuary 206$( and then delayed again with no s'ecific timeline. #t the end of Ianuary 206$( it was announced )c/lendon would Kvoluntary retireL as /EO. +his led to some s'eculation regarding the contents of the Kinternal investigationL. Is there anything in the re'ort that led to )c/lendon!s voluntary retirement, Or to ask the Muestion another way 2 what was left out of the re'ort in e9change for )c/lendon!s voluntary retirement, +his week( /hesa'eake revealed +HE CE4OC+. <o sur'riseN. Iust like the results of Encana!s internal investigation of "id rigging in )ichigan 6&6 with /hesa'eake Energy( the re'ort concluded the hens are safe. /hesa'eake Energy 'anel5 <o intentional misconduct "y /EO #u"rey )c/lendon V ;y Iay *. )arks V <ewsOB V*e"ruary 20( 206$ V6&2 /hesa'eake Energy /or'. has found no evidence of misconduct "y /EO #u"rey )c/lendon after a "oard 'anel reviewed his 'ersonal finances. # 'ress release "y /hesa'eake Energy states5 6&$ E9tensive Ceview of #lleged /onflicts of Interest and Other )atters Involving /EO #u"rey B. )c/lendon .id <ot *ind #ny Intentional )isconduct ;oard #lso *inds /om'any .id <ot Fiolate #ntitrust 0aws in Cegard to #cMuisition of )ichigan Oil and -as Cights in 2060 +he keyword which 3um'ed out at me was KI<+E<+IO<#0L. +his is a ;I- Mualifier as it does suggest there was )IS/O<.D/+( and we all know what 'aves the road to hell. Intentional or not( what was the KmisconductL, #rticles covering this news are essentially a co'y%'aste of /hesa'eake!s news release or a rewrite of it and reveal little insight. +he actual re'ort is not availa"le so we 3ust have to take their word for it. 4erha's it falls under the category of K'ro'rietary re'ortsL, )ay"e we need
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/ubrey Mc1len(on @ut as 1hair!an of 1hesa"ea0e >nergy Boar(, StateC!"act, By *oe 9ert4, May 1, 2 12 htt"#$$statei!"act&n"r&org$o0laho!a$2 12$ .$ 1$aubrey-!cclen(on-out-as-chair!an-of-chesa"ea0e-energy-boar($ 1,1 >ncana clears itself of collusion in Michigan, 7euters, By Brian Gro% an( Scott Haggett0, 9e( Se" ., 2 12 htt"#$$%%%&reuters&co!$article$2 12$ :$ .$us-encana-chesa"ea0e-i(=SB7>--,1*>2 12 : . 1,2 1hesa"ea0e >nergy "anel# No intentional !iscon(uct by 1>@ /ubrey Mc1len(on, Ne%s@3, By *ay F& Mar0s, Ne%s@3, February 2 , 2 1' htt"#$$ne%so0&co!$chesa"ea0e-energy-"anel-no-!iscon(uct-by-ceo-aubrey-!cclen(on$article$'?.?', 1,' 1hesa"ea0e >nergy 1or"oration /nnounces 7esults of Boar( of <irectors 7e)ie%s, 1hesa"ea0e >nergy, February 2 , 2 1' htt"#$$%%%&ch0&co!$ne%s$articles$Pages$1?-+-1,&as"; /onnecting the .ots5 )arcellus Shale 4lay 4layers =& of 267
to have a CE4OC+8*O/DS( similar to *rac*ocus, Or wait for Ceuters to dro' another shoe, hile the /hesa'eake ;oard of .irectors "ids a fond farewell ?may"e not so fond@ to )c/lendon other EE+EC<#0 investigations and trou"les remain. /hesa'eake is still under investigation "y at least four federal and state agencies. Its "oard also faces more than a do1en "reaches of fiduciary duty lawsuits filed "y shareholders. )ichigan #ttorney -eneral ;ill Schuette will continue his inMuiry into collusion allegations against /hesa'eake and /anadian rival Encana /or'.( even though "oth com'anies have cleared themselves in internal investigations. #nother interesting item is the *e"ruary &(( 206$ resignation announcement "y Cegina Ho''er( /EO of the #merica!s <atural -as #lliance ?#<-#@ 6&&( 3ust a few days after )c/lendon!s Kvoluntary retirementL announcement. /oincidence, Ho''er 3oined #<-# in <ovem"er of 2009( the same year the alliance was formed "y certain <orth #merican inde'endent natural gas e9'loration and 'roduction com'anies. #<-# re'resents 29 of the nation!s leading inde'endent natural gas e9'loration and 'roduction com'anies. +ogether( #<-# mem"ers 'roduce more than &0T of the total DS natural gas su''ly. Ho''er came to #<-# after holding senior 'ositions at DS+elecom and the #merican +rucking #ssociations. She hel'ed "uild #<-# into a uniMue advocacy8marketing hy"rid with o'erations in 67 states( ashington ../. and /anada. One of the co8founders of #<-# is #u"rey )c/lendon6&:. .id the internal investigation have anything to do with Ho''er!s resignation as /EO of #<-#, KI was hired to "uild an effective and 'owerful advocacy organi1ation with strong fiscal management(L Ho''er said6&>. K;y all accounts we have achieved these im'ortant o"3ectives. I am 'roud of the team we assem"led( the work done and the accom'lishments achieved for this im'ortant #merican industry.L 4rior to 3oining #+#( Ho''er served as senior vice 'resident of litigation communications at e"er )c-inn. She is de'arting #<-# to return to litigation communications. *arris said #<-# will immediately "egin conducting the search for a successor.
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7egina Ho""er to resign as /NG/ 1>@, @il A Gas Financial *ournal, By @il A Gas Financial *ournal Staff, February ,, 2 1' htt"#$$%%%&ogfI&co!$articles$2 1'$ 2$regina-ho""er-to-resign-as-anga-ceo-&ht!l 1,. /ubrey Mc1len(on, "olluter%atch, htt"#$$%%%&"olluter%atch&co!$aubrey-!cclen(on 1,+ 7egina Ho""er to resign as /NG/ 1>@, @il A Gas Financial *ournal, By @il A Gas Financial *ournal Staff, February ,, 2 1' htt"#$$%%%&ogfI&co!$articles$2 1'$ 2$regina-ho""er-to-resign-as-anga-ceo-&ht!l /onnecting the .ots5 )arcellus Shale 4lay 4layers =: of 267
Chapter 7 Energy@in@3epth AEI3B The E$>SFroots On Ianuary >( 2062 a <uisance 0itigation meeting took 'lace in )ontrose( 4ennsylvania. +he 'ur'ose of the meeting was to discuss natural gas drilling and legal o'tions for 'ro'erty owners. Energy8In8.e'th!s ?EI.@ 8 <ortheast )arcellus Initiative *ield .irectors ;ill desCosiers and <icole Iaco"s( along with Helen Hum'hries( Senior /or'orate /ommunications S'ecialists for the illiams /om'any( attem'ted to attend the meeting. +hey were asked to leave( as the 'ur'ose of the meeting was to meet with 'eo'le wishing to seek litigation against the <atural -as industry and share information on this matter. +he following day( K;illL desCosiers 'u"lished a "log entry on the EI.8<ortheast )arcellus Initiative we"site entitled KOou!re <ot elcome HereL 2 +his Is +rans'arency,L.6&= #''ro9imately( 2 weeks later( an article a''eared on e #re 4owershift we"site( entitled K*rom +ownshi' 4lanning /onsultant to *racker5 +om She'stone 6&7L "y #le9ander 0otorto. EI.8<ortheast )arcellus Initiative followed u' immediately with K ho Is #le9 0otorto( ell Street Occu'ier,6&9L "y -iles Howard( a -uest ;logger. +he "log hit 'ieces "y EI. are the norm. #ccording to Source atch JEnergy in .e'th ?EI.@6:0 is a 'ro8oil8and8gas drilling industry front grou' formed "y the #merican 4etroleum Institute( the Inde'endent 4etroleum #ssociation of #merica ?I4##@ and do1ens of additional industry organi1ations for the 'ur'ose of denouncing legislation 'ro'osed "y /olorado D.S. Ce'. .iana .e-ette to regulate underground hydraulic fracturing fluids.J Iune :( 20095 # letter was sent "y ;arry Cussell( 4resident and /EO of the Inde'endent 4etroleum #ssociation of #merica ?I4##@ to mem"ers with the K"irth announcementL of Energy8in8.e'th.
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>nergy Cn <e"th Blog, *anuary +, 2 12, htt"#$$ei(!arcellus&org$blog$youre-not-%elco!e-here-this-is-trans"arency$.?2,$ Fro! 6o%nshi" Planning 1onsultant to Frac0er# 6o! She"stone, *anuary 1?, 2 12, by /le;an(er Lotorto, 9e /re Po%er Shift, htt"#$$%%%&%eare"o%ershift&org$blogs$to%nshi"-"lanning-consultant-frac0er-to!-she"stone 1,: >nergy Cn <e"th Blog, *anuary 1?, 2 12, htt"#$$ei(!arcellus&org$blog$%ho-is-ale;-lotorto-%ell-street-occu"ier$.-: $ 1. >nergy Cn <e"th, Source%atch, htt"#$$source%atch&org$in(e;&"h"EtitleF>nergyDinD<e"th /onnecting the .ots5 )arcellus Shale 4lay 4layers => of 267
Excerpt from IPAA EID Announcment
:udos to 3es%og(log -or locating the announce%ent. Clic" here to see -ull copy. 111 <o "irth announcement is com'lete without a 'hoto of the new "orn.
EID Announcement. NOTE: "to COMBAT" new environmenta re!u ation"# e"pecia $ wit% re!ar& to %$&rau ic fracturin!.
EI.%I4## launched a de"unking cam'aign against the documentary film( -#S0#<.( "y Iosh *o9 in later in 2009. EI. sent a letter to #cademy of )otion 4icture #rts and Sciences 6:2 stating -asland should "e ineligi"le for nomination "ecause it was "ased on inaccuracies. EI. also 'u"lished several "log entries Kde"unkingL the film.
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K>nergy Cn <e"thL 9as 1reate( By MaIor @il an( Gas 1o!"anies /ccor(ing to Cn(ustry Me!o, February 2, 2 11, Bren(an <eMelle, <es!ogblog, htt"#$$%%%&(es!ogblog&co!$energy-(e"th-%as-create(-!aIor-oil-an(-gas-co!"aniesaccor(ing-in(ustry-!e!o 1.2 >nergy grou" targets @scar-no!inate( 'Gaslan(', February 1., 2 1, UBy 7ebecca 3eegan, Los /ngeles 6i!es htt"#$$articles&lati!es&co!$2 11$feb$1.$entertain!ent$la-et- 21.-oscar-gaslan(-2 11 21. /onnecting the .ots5 )arcellus Shale 4lay 4layers == of 267
EI. has two satellite "ranches5 EI.8<ortheast )arcellus Initiative6:$ which covers 4ennsylvania and <ew Oork area( and EI.8 +he Ohio 4ro3ect6:& which focuses on gas%oil drilling in Ohio. +he KgrassrootsL initiative was launched around )ay 2066 "y EI.. )arcellus .rilling <ews6:: stated5 KEI. has also launched a ma3or new grassroots initiative now s'reading from county to county in the region.L EI. descri"es itself as5 ?Em'hasis added@ Ahat<s 50=D 15) Maunched (y the 0nde&endent Petroleum Association o! America (0PAA in 2""*, 5nergy 0n =e&th (50= is a research, education and public outreach campaign !ocused on getting the !acts out a(out the &romise and &otential o! res&onsi(ly develo&ing America<s onshore energy resource (ase I es&ecially a(undant sources o! oil and natural gas !rom shale and other CtightE reservoirs across the country Im'ortant to note5 4D;0I/ OD+CE#/H C>MP>I$. Ce'eat5 4D;0I/ OD+CE#/H C>MP>I$. EI. is not a cor'oration; it!s not an inde'endent grou' or organi1ation. It!s a 'u"lic outreach cam'aign and that means marketing( 'u"lic relations( advertising( and infomercials. EI. could "e researching and educating 'eo'le a"out toilet 'a'er or the latest Feg8a8)atic /ho''er 2 all advertising is a 4D;0I/ OD+CE#/H /#)4#I-< in one form or another. EI. is not grassroots. EI.!s K-#SLroots e9tend from the front grou's( /or'orations( 4u"lic Celations( to the halls of /ongress. +his is very different from the re'orting "y )arcellus .rilling <ews ?).<@ 6:= 5?Em'hasis added@ C50= has also launched a maFor ne% grassroots initiative no% s&reading !rom county to county in the region$E ).< continues5 CThe &rogram, 1no%n as 50=<s C4ortheast 7arcellus 0nitiative,E calls for the hiring of several full&time organi"ers charged %ith engaging and educating the region<s many su&&orters o! the 7ighty 7arcellus, and &roviding them %ith the tools they need to act$E -rassroots, Hiring of several full8time organi1ers, .oesn!t sound grassroots to me.
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>nergy Cn <e"th Northeast Marcellus Cnitiati)e, htt"#$$ei(!arcellus&org >nergy Cn <e"th @hio, htt"#$$%%%&ei(ohio&org 1.. Marcellus <rilling Ne%s, >nergy in <e"th Launches Ne% 9ebsite, MaIor Grassroots Cnitiati)e for Northeast P/ an( Southern 6ier of NB, htt"#$$!arcellus(rilling&co!$2 11$ .$energy-in-(e"th-launches-ne%-%ebsite-!aIor-grassrootsinitiati)e-for-northeast-"a-an(-southern-tier-of-ny$ 1.+ >nergy Cn <e"th, htt"#$$%%%&energyin(e"th&org$%hats-ei($ 1.? Marcellus <rilling Ne%s, htt"#$$!arcellus(rilling&co!$2 11$ .$energy-in-(e"th-launches-ne%-%ebsite-!aIor-grassrootsinitiati)e-for-northeast-"a-an(-southern-tier-of-ny$ /onnecting the .ots5 )arcellus Shale 4lay 4layers =7 of 267
In a XG# 'a'er( EI. stated
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5 ?Em'hasis #dded@
OJ Aho is res&onsi(le !or this &roFectD AJ 5nergy in =e&th is a &roFect o! America<s inde&endent oil and natural gas &roducers$ These small companies >many of which have less than 7= employees? !orm the (ac1(one o! American energy &roduction, and are res&onsi(le !or *" &ercent o! our nation<s oil and gas %ells, )2 &ercent o! all domestic oil &roduction and +2 &ercent o! all H$.$ natural gas &roduction$ OJ Ahat &rom&ted independent producers to create /nergy in %epthD AJ :&&onents o! res&onsi(le energy develo&ment and their advocates in Congress are %or1ing harder than ever to cur( domestic energy &roduction$ Hn!ortunately, the message they<ve sought to de&loy a&&ears more consistent %ith scare tactics than actual !acts$ Their un!ounded attac1s can no longer go unans%ered;es&ecially %hen they diverge so much !rom reality$ /nergy in %epth reveals the reality behind the rhetoric, and informs the public honestly, accurately and directly. +hree things 'o' out on the e9cer'ts a"ove5 6. +he funding sources6:9 for EI. include5 #nadarko( ;4( /hevron( El 4aso /or'oration( En/ana( Halli"urton( )arathon( Occidental 4etroleum( Schlum"erger( Shell #4I( +alisman and E+O Energy. +hese cor'orations have more than 20 em'loyees. 2. Ahat &rom&ted inde&endent &roducers to create 5nergy in =e&thD Inde'endent 'roducers weren!t 'rom'ted. +he I4## decided to create a marketing cam'aign. $. 5nergy in =e&th reveals the reality (ehind the rhetoric, and in!orms the &u(lic honestly, accurately and directly$ EI. is a marketing cam'aign( it reveals what it is told to reveal. +he XG# 'a'er also mentions something called K4ro3ect ;CIE*L6>0. hat!s 4ro3ect ;CIE*,
CThe &ur&ose o! ProFect36052 is as sim&le as it is straight!or%ardJ 3ringing 6eal 0n!ormation on 5nergy 2or%ard$ Ahat !ollo%s are the (ottom,line conclusions o! a recent set o! studies commissioned (y 0PAA I a sna&shot o! %hat %e can e8&ect i! Congress moves to revise !ederal la%s and regulations to override the current, e!!ective !ederal, state regulatory &artnershi&$E .oes all of this really sound like something grassroots and small inde'endent 'roducers could create,
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>nergy in <e"th an( ProIect B7C>F 2 A /, htt"#$$%%%&0ioga&org$co!!unications$"roIect-brief$ProIectG2 B7C>F G2 2-/&"(f$)ie% 1.: >nergy Cn <e"th, Source%atch, htt"#$$%%%&source%atch&org$in(e;&"h"EtitleF>nergyDinD<e"th 1+ >nergy in <e"th an( ProIect B7C>F 2 A /, htt"#$$%%%&0ioga&org$co!!unications$"roIect-brief$ProIectG2 B7C>F G2 2-/&"(f$)ie% /onnecting the .ots5 )arcellus Shale 4lay 4layers =9 of 267
EI3 and the .anny 4u"lic outreach cam'aigns need someone to watch it( care for it and manage the message. /all that KsomeoneL a <anny. EI.!s <anny is *+I /onsulting. EI.!s <anny went through a few changes( so "ear with me. +he original EI. <anny was .ittus /ommunications. .ittus /ommunications was acMuired "y *. #mericas and renamed *. .ittus /ommunications. +he original founder and /EO of .ittus /ommunications is $loria 3ittus( .ittus /ommunitcations "ecame *. .ittus /ommunications. *inancial .ynamics ?*.@6>6 later went yet another name change. +he registrant information for the EI. we"site is listed as '3 3ittus Co%%unications& 6>2 2EMEM,E2 T!E .>ME '3 3ITT4S C&MM4.IC>TI&.S .
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F6C 1onsulting, Financial <yna!ics, htt"#$$%%%&fticonsulting&co!$ser)ices$strategic-co!!unications$in(e;&as"; 9H@CS 7esults for energyin(e"th&org, htt"#$$%%%&net%or0solutions&co!$%hois-search$energyin(e"th&org 70 of 267
EID ' (D Dittu" Communication"
'3 >%ericas 6>$# unit of DB8"ased strategic and financial communications consultancy *.( *. #mericas 4u"lic #ffairs ?formerly .ittus /ommunications@ offers 'u"lic relations( marketing communications( and issue advocacy services. +he firm 'rovides the usual cor'orate services ?media relations( cor'orate communications( and crisis management@ 'lus 'u"lic affairs services ?issues management( legislative strategy( grassroots organi1ing and coalition "uilding@ as well as marketing( creative( and design services. /lients have included Braft *oods( .ell( the DS .e'artment of Energy( and International 4a'er. +he firm was founded in 699$. 'TI Consulting56>& is a glo"al "usiness advisory firm that 'rovides multidisci'linary solutions to com'le9 challenges and o''ortunities. ith the full 'ower of uniMue de'th of thought com"ined with the glo"al e9'ertise of leading 'rofessionals( we are committed to 'rotecting and enhancing the enter'rise value of our clients.
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Hoo)ers, htt"#$$%%%&hoo)ers&co!$co!"any-infor!ation$cs$co!"any"rofile&F<D/!ericasDPublicD/ffairs&ca2:efcb?affa:,e&ht!l 1+, F6C 1onsulting, W@ur Fir!X, htt"#$$%%%&fticonsulting&co!$our-fir!$in(e;&as"; /onnecting the .ots5 )arcellus Shale 4lay 4layers 76 of 267
EI3# IP>> and 'TI Consulting # few words a"out I4## "efore we continue. 4er Sourcewatch6>:5 The 0nde&endent Petroleum Association o! America (0PAA Ghas re&resented inde&endent oil and natural gas &roducers !or three,9uarters o! a century$ :n /une 1", 1*2*, President -er(ert -oover called a national and state con!erence to discuss and !ormulate a &ractical &rogram !or the conservation o! AmericaBs natural &etroleum resources$ At that historic meeting at the 3roadmoor -otel in Colorado .&rings, Colorado, oil o&erators, royalty o%ners, and land o%ners ali1e !ormed a ne% national association, the 0PAA$G 0PAA is one o! the largest energy contri(utors to (oth 6e&u(lican and =emocratic candidates !or Congress$ These contri(utions total $33),5"" to the 11"th H. Congress (as o! the third 9uarter , the largest o! %hich has (een to 6e&$ /ohn .ununu(6,4- !or $1","""$ 6e&$ .ununu, !or his &art, has consistently voted %ith the oil industry on energy, %ar and climate (ills$ 0o""ying e9'enditures "y I4## 3um'ed in 2007( 'er O'ensecrets.org. 6>> #nd another "ig increase in 2009( this was the year EI. was "orn.
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Cn(e"en(ent Petroleu! /ssociation of /!erica, Source%atch, htt"#$$%%%&source%atch&org$in(e;&"h"E titleFCn(e"en(entDPetroleu!D/ssociationDofD/!erica 1++ /nnual Lobbying by Cn(e"en(ent Petroleu! /ssn of /!erica, @"ensecrets&org, htt"#$$%%%&o"ensecrets&org$lobby$clientsu!&"h"Ei(F< 22 ,1AyearF2 /onnecting the .ots5 )arcellus Shale 4lay 4layers 72 of 267
EI3 Players =ee 'uller is the Executi8e 3irector o- EI36>=( he is also the Fice 4resident of -overnment Celations for the Inde'endent 4etroleum #ssociation of #merica.6>7 #ccording to O'en Secrets6>9( the to' industry re'resented "y )r. *uller was Oil G -as and formerly em'loyed "y Fan Scoyoc #ssociates as a lo""yist. ?an .coyoc Associates17" 0nc$ is a !ull,service 2ederal 'overnment a!!airs !irm and the !oremost inde&endent lo((ying com&any in Aashington, =$C$ Ae !ocus on achieving results !or our clients %ithout the distractions that might come !rom (eing a su(sidiary o! a la% !irm or &arent cor&oration$ Cegarding -asland( J+he filmmaker alternates "etween misstating and outright ignoring "asic and verifia"le facts related to the im'act of these activities on the health and welfare of humans( wildlife and the environment(J said 0ee *uller( e9ecutive director of Energy in .e'th ?EI.@6=6( in a letter ?'df@6=2 today to the academy. Ce--ery ECe--F Eschel%an6=$ is listed as E9ecutive Fice 4resident at EI.. In addition to his 'osition at EI. he is the Fice 4resident of 4u"lic #ffairs G /ommunication at the Inde'endent 4etroleum #ssociation of #merica6=& and former em'loyee of 3ittus Co%%unications161.
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>nergy in <e"th, htt"#$$%%%&energyin(e"th&org$!eet-the-tea!$ CP//, htt"#$$%%%&i"aa&org$about$!anage!entDtea!&"h" 1+: Fuller, Lee @ , Cn(e"en(ent Petroleu! /ssn of /!erica, o"ensecrets&org, htt"#$$%%%&o"ensecrets&org$re)ol)ing$in(us&"h"Ei(F?,. 1? Jan Scoyoc /ssociates Cnc, htt"#$$%%%&)sa(c&co!$ 1?1 @il an( Gas Grou" =rges @scar *u(ges to Steer 1lear of 'Gaslan(', By MC3> S@7/GH/N of Green%ire, NB 6i!es, February 1, 2 11, htt"#$$%%%&nyti!es&co!$g%ire$2 11$ 2$ 1$ 1green%ire-ioil-an(-gas-grou"-urges-oscar-Iu(ges-to-steer::2.+&ht!l 1?2 Fuller letter to /ca(e!y of Motion Picture /rts an( Science, February 1, 2 11, htt"#$$%%%&eene%s&net$assets$2 11$ 2$ 1$(ocu!entDg%D 2&"(f 1?' >nergy in <e"th, Meet the 6ea! htt"#$$%%%&energyin(e"th&org$!eet-the-tea!$ 1?, *eff >shel!an, JP Public /ffairs$1o!!unications, CP//, htt"#$$%%%&lea(,11&co!$*effD>shel!anD'-.--.&ht!l 1?. *eff >shel!an, @"ensecrets&org, htt"#$$%%%&o"ensecrets&org$re)ol)ing$re)Dsu!!ary&"h"Ei(F1,,?+ /onnecting the .ots5 )arcellus Shale 4lay 4layers 7$ of 267
Culia ,ell6=> Cesearcher at EI.( and 4u"lic #ffairs G /ommunications /oordinator for the Inde'endent 4etroleum #ssociation of #merica.6== Simon 0oma96=7 5 C.imon Moma8 Foined 2T0 ConsultingBs energy &ractice in 2"12 a!ter a 15, year career in Fournalism and government$ 3e!ore Foining 2T0, he %as the editorial director !or a national T? sho% on energy &olicy, an energy re&orter at 3loom(erg 4e%s and a senior editor at Argus 7edia 0nc$, a leading &rovider o! ne%s, analysis and mar1et data !or the energy industry$ Moma8 also %or1ed on energy and environmental &olicy in the H$.$ -ouse o! 6e&resentatives as a congressional !ello% %ith the American Political .cience Association$ 3e!ore moving to Aashington, Moma8 %or1ed as a ne%s&a&er re&orter and editor in 7ississi&&i and Australia$E *ormer Editorial .irector for energy<O Z6=9 Initial funding originated from #merican /lean Skies *oundation670 which is a front grou' for /hesa'eake Energy. Cesearch .irector for Energy In .e'th676
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>nergy in <e"th, Meet the 6ea! htt"#$$%%%&energyin(e"th&org$!eet-the-tea!$ CP// Manage!ent 6ea!, htt"#$$%%%&i"aa&org$about$!anage!entDtea!&"h" 1?>nergy National *ournal, htt"#$$energy&nationalIournal&co!$contributors$si!on-lo!a;&"h" 1?: energyNo%Y, htt"#$$%%%&energyno%&co!$re"orters$si!on-lo!a; 1/!erican 1lean S0ies Foun(ation, Source%atch, htt"#$$%%%&source%atch&org$in(e;&"h"E titleF/!ericanD1leanDS0iesDFoun(ation 1-1 >nergy in <e"th, Meet the 6ea! htt"#$$%%%&energyin(e"th&org$!eet-the-tea!$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 7& of 267
Chris Tuc"er1;)5 EI. +eam 0ead( S'okes'erson( and #dvisor for 2 you guessed it 2 the Inde'endent 4etroleum #ssociation of #merica 67$. )r. +ucker is more closely associated with the EI.8)arcellus Initiative "ranch as +eam 0eader and ;logger. Senior Fice 4resident Oil G -as5 'TI Consulting1;0 #dvisor to the )arcellus Shale /oalition67: *ormer 4ress Secretary%/ommunications .irector for Ce' Iohn E 4eterson C84#67> ?Cetired at the end of 660th /ongress( former mem"er of #merican 0egislative E9change /ouncil ?#0E/@ Ce'. 4eterson!s /am'aign .onors67= for the 200> cam'aign5 A60($005 .evonian Cesources677 ?Energy /onservation and )anagement /onsultants@ +o' Single /ontri"utor A$:(:005 Oil G -as +o' Industry Sector /ontri"utor *ormer /ommunications #dvisor for House )inority hi' Ce' Coy ;lunt C8)O679( ?elected as Senator in 2007@. 2007 Senate /am'aign5690 A2$($005 /hevron( 2nd highest individual contri"utor A627(2:05 Oil G -as( $rd highest industry sector contri"utor 2060 Senate /am'aign5696 A$2(6=$5 )urray Energy( 6:th highest individual contri"utor A29(2005 Boch Industries( 6>th highest individual contri"utor A27(7005 E99on )o"il( 6=th highest individual contri"utor A$&2(0:05 Oil G -as( =th highest industry sector contri"utor
/hris +ucker is also listed as the registrant for EI. Ohio!s we"site692( on "ehalf of '3 3ittus Co%%unications.
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>nergy in <e"th, Meet the 6ea! htt"#$$%%%&energyin(e"th&org$!eet-the-tea!$ Michigan Lan(!en to host National an( State /uthorities on Hy(raulic Fracturing, htt"#$$ ' ,.,:&netsolhost&co!$blog$%"-content$u"loa(s$2 11$1 $No)-'-2 11-!eeting-(etails&"(f 1-, ibi( 1-. ibi( 1-+ Legistor!, 1hristo"her 6uc0er O1hrisP, 1ongressional Staffer, htt"#$$%%%&legistor!&co!$"erson$1hristo"herD6uc0er$1+2.'&ht!l 1-? *ohn >& Peterson, 7e"resentati)e O7 - P/P, @"ensecrets&org, htt"#$$%%%&o"ensecrets&org$"oliticians$su!!ary&"h"E cycleF2 +Aty"eFCAci(FN 1,22Ane%Me!FN 1-ibi( 1-: @ffice of the 7e"ublican Lea(er, H-2 , 6he 1a"itol, htt"#$$%%%&g"o&go)$f(sys$"0g$1<C7-2 -- -- 1$ht!l$1<C7-2 -- 1-H@=S>1@MMC66>>S-'&ht! 1: 7oy Blunt, 7e"resentati)e O7-M@P, @"ensecrets&org, htt"#$$%%%&o"ensecrets&org$"oliticians$su!!ary&"h"E ci(FN .1:.AcycleF2 1:1 ibi( /onnecting the .ots5 )arcellus Shale 4lay 4layers 7: of 267
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3ana ,ohan1<*5 EI. Staff -eologist Iunior #ssociate 8 Strategic /ommunications 8 Energy Sector5 'TI Consulting1<0
On Saturday( Iuly 27( 2062 a Sto' the *rack rally and march was held in ashington ../. EI. staffers and other <atural -as Industry 'eo'le were also at the event. #t least one EI. staffer was wandering in the crowd and talking to 'eo'le. e "elieve it to "e .ana ;ohan in the 'hoto. She told 'eo'le she was concerned a"out energy issues( and conducted interviews for a Knew "logL.
Dana Bo%an# EID )taff *eo o!i"t# an& +unior A""ociate for (TI Con"u tin!
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ei(ohio&org, %hois&net, htt"#$$%%%&%hois&net$%hois$ei(ohio&org >nergy in <e"th, Meet the 6ea! htt"#$$%%%&energyin(e"th&org$!eet-the-tea!$ 1:, <ana Bohan, Lin0e(in, htt"#$$%%%&lin0e(in&co!$"ub$(ana-bohan$'1$1':$- : /onnecting the .ots5 )arcellus Shale 4lay 4layers 7> of 267
Ste8en ESte8eF E8erly1<15 EI. S'okes'erson #ssistant Fice 4resident5 'TI Consulting 'inancial 3yna%ics1<7 +he strategic communication division of *+I /onsulting( *inancial .ynamics hel's ensure that its clients! "rand( re'utation and market valuation reflect the true worth of their "usinesses. /olumnist5 +ownhall.com69= Steve Everley is )anager of 4olicy Cesearch at #merican Solutions and a contri(uting author to To Sa8e >%erica Stopping &(a%aMs Secular@ Socialist Machine (y .e/t $ingrich . 4rior to 3oining #merican Solutions( Everley worked as a research assistant at the #merican Enter'rise Institute. He graduated summa cum laude from the Dniversity of Bansas and attended graduate school at the Dniversity of Southern /alifornia. ?em'hasis added@ .icole Caco(s6975 #ssociate at *+I /onsulting699 EI.8 <ortheast )arcellus Initiative *ield .irector. Inde'endent /onsultant 8 Shalenet)++
Shalenet is funded through a grant from .e'artment of 0a"or( Em'loyment and +raining #dministration to 'rovide the gas industry with a local workforce. Bey 'artners include 6: orkforce Investment areas ?not named@( focusing on 4ennsylvania( est Firginia( Ohio( and <ew Oork( 4# Inde'endent Oil an -as #ssociation( 4ennsylvania Inde'endent Oil G -as #ssociation ?4IO-#@ the Feterans #dministration( #llegheny /onference on /ommunity .evelo'ment( ;roome /ommunity /ollege( Eastern -ateway /ommunity /ollege( 4ennsylvania /ollege of +echnology( est Firginia <orthern /ommunity /ollege and estmoreland /ounty /ommunity /ollege. Shale<et o'erates out of 4ennsylvania /ollege of +echnology which is affiliated with 4enn State. The 4ntangling 4ay attention to intersecting dots5 *+I /onsulting( I4##( Institute for Energy Cesearch( the revolving door of /ongress and more.
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>nergy in <e"th, Meet the 6ea! htt"#$$%%%&energyin(e"th&org$!eet-the-tea!$ Ste)e >)erly, Lin0e(in, htt"#$$%%%&lin0e(in&co!$in$ste)ee)erley 1:? 6o%nhall&co!, 1olu!nists, htt"#$$to%nhall&co!$colu!nists$ste)ee)erley$ 1:>nergy in <e"th, Meet the 6ea! htt"#$$%%%&energyin(e"th&org$!eet-the-tea!$ 1:: Nicole *abobs, Lin0e(in, htt"#$$%%%&lin0e(in&co!$"ub$nicole-Iacobs$'2$,. $b+a 2 Nicole *acob, ra(aris, htt"#$$ra(aris&co!$"$Nicole$*acobs$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 7= of 267
,rian :ennedy)+1 4er5 .>T42>= $>S ,P# others push against -ederal regulation o-racturing( ;rian Bennedy is cited as a s'okesman for Energy In .e'th. #lthough( )r. Bennedy is cited as s'okesman in this and others articles( there is no sign of him the the Energy In .e'th we"sites. J+his language seems to "e a restatement and endorsement of 'olicies and 'rocedures the industry has "een following for decades( as mandated "y federal( state and local laws(J said ,rian :ennedy# a spo"es%an -or Energy In 3epth. J+o the e9tent the language hel's clarify the e9isting framework and highlight its overwhelming success to date( it could "e a valua"le educational tool moving forward.J ?em'hasis added@ -lo"al Head( Energy G <atural Cesources Sector5 *+I /onsulting202 E9cer't5 )r. Bennedy has also worked closely with Energy in .e'th 20$( <o"le Energy( Shell Oil /om'any( Halli"urton and the Inde'endence 4etroleum #ssociation of #merica( among other leading energy com'anies. 4rior to 3oining *+I /onsulting( )r. Bennedy was a founding mem"er of the ashington( ../. office of the Institute for Energy Cesearch ?IEC@( a not8for8'rofit foundation focused on the advancement of free market energy 'olicy. ;efore that( )r. Bennedy filled several senior 'ositions on /a'itol Hill as advisor and s'okesman for "oth )em"ers of /ongress and committees with a focus on energy 'olicy. #fter s'ending si9 years in the office of D.S. Ce'resentative -eorge Cadanovich ?C8/#@ serving as communications director( )r. Bennedy s'ent the latter years of his career on /a'itol Hill as de'uty chief of staff and communications director for the House /ommittee on Cesources and as 'ress secretary for the current S'eaker of the House Ce'. Iohn ;oehner ?C8OH@. #t the /ommittee on Cesources( )r. Bennedy fulfilled the role of senior advisor to the committee chairman on all matters of 'olicy( 'ersonnel( "udget( communications( and strategy. He also led strategic communications efforts for the S'eaker!s +ask force *or #fforda"le <atural -as and the House Energy #ction +eam ?HE#+@. In the office of the House Ce'u"lican 0eader( )r. Bennedy served as chief s'okesman and liaison to the national media for the House )inority 0eader and oversaw messaging initiatives on national 'riorities such as the ar on +error( energy( "udget and ta9 'olicies. *ormer Senior )anaging .irector5 *. #mericas84u"lic #ffairs *ormer /ommunications .irector5 former Ce'. Cichard 4om"o C8/# 20& 2ep. 2ichard Po%(o lost his re8election "id in 200> to Ierry )c<erney. 20: JCe'. Cichard 4om"oHs loss re'resents the most significant electoral victory the environmental movement has seen in decades(J said
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BP, others "ush against fe(eral regulation of fracturing, Mi0e Soraghan, >A> re"orter, >A> <aily# 6ues(ay, March 2', 2 1 , htt"#$$%%%&eene%s&net$"ublic$>><aily$2 1 $ '$2'$2 2 2 Brian 3enne(y, Lin0e(in, htt"#$$%%%&lin0e(in&co!$"ub$brian-0enne(y$2 $2,-$-b+ 2 ' Brian 3enne(y, F6C 1onsulting, htt"#$$%%%&fticonsulting&co!$global2$"rofessionals$brian-0enne(y&as";EhtF 2 , 7e"& Po!bo's ai(e Brian 3enne(y, N9F's *ohn 3ostyac0 (ebate >S/, "ro"erty rights, May 2', 2 ., htt"#$$%%%&eene%s&net$t)$)i(eoDgui(e$:,E"ageF::AsortDty"eF(ate 2 . G@P 7e"& Po!bo Loses to Little-3no%n <e!ocratV <oolittle 9ins, No)e!ber -, 2 +, /ssociate( Press, htt"#$$abclocal&go&co!$0fsn$storyEsectionFne%s$localAi(F,?,21., /onnecting the .ots5 )arcellus Shale 4lay 4layers 77 of 267
Codger JIt should on and defeat
Schlickeisen( 'resident of .efenders of ildlife #ction *und. now "e clear to all that we have the 'olitical strength to take e9treme anti8environmental 'oliticians.J Environmentalists o''osed 4om"o for efforts to rewrite s'ecies 'rotections and increase oil drilling in #laska and off8shore while fundraising from industry grou's. He also faced Muestions disgraced lo""yist Iack #"ramoff( who 'leaded guilty in a influence 'eddling scandal.
a"out ties to congressional
200> /am'aign20>5 A$&(7005 /hevron( 2nd highest individual contri"utor A69=(>&75 Oil G -as( &th highest industry sector contri"utor *ormer #ide 8 House /ommittee on <atural Cesources20= Staff )em"er 2 Ce'. Iohn ;oehner C8OH207 Ce'. Iohn ;oehner C8OH was )inority 0eader in 2007. He "ecame House S'eaker in 2060. Ca%paign )+1+)+< A:7(6005 )urray Energy( 2nd highest individual contri"utor A&=(7005 *irstEnergy /or'( $rd highest individual contri"utor A$>9(==25 Electric Dtilities( &th highest industry sector contri"utor A67:(>:05 Oil G -as( 6&th highest industry sector contri"utor /o8*ounder 2 Institute for Energy Cesearch260( ./ office Prior to Foining 2T0 Consulting, 7r$ >ennedy %as a !ounding mem(er o! the Aashington, =$C$ o!!ice o! the 0nstitute !or 5nergy 6esearch (056 , a not,!or,&ro!it !oundation !ocused on the advancement o! !ree mar1et energy &olicy$ 3e!ore that, 7r$ >ennedy !illed several senior &ositions on Ca&itol -ill as advisor and s&o1esman !or (oth 7em(ers o! Congress and committees %ith a !ocus on energy &olicy$ A!ter s&ending si8 years in the o!!ice o! H$.$ 6e&resentative 'eorge 6adanovich (6,CA serving as communications director, 7r$ >ennedy s&ent the latter years o! his career on Ca&itol -ill as de&uty chie! o! sta!! and communications director !or the -ouse Committee on 6esources and as &ress secretary !or the current .&ea1er o! the -ouse 6e&$ /ohn 3oehner (6,:- $ #<O+HEC I)4OC+#<+ .O+ +O CE)E);EC5 I.STIT4TE '&2 E.E2$Y 2ESE>2C! AIE2B
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7ichar( Po!bo, 7e"resentati)e, O7-1/P, @"ensecrets&org, htt"#$$%%%&o"ensecrets&org$"oliticians$su!!ary&"h"E cycleF2 +Aty"eFCAci(FN ?.1+Ane%Me!FNHcont 2 ? Brian 3enne(y, F6C 1onsulting, htt"#$$%%%&fticonsulting&co!$global2$"rofessionals$brian-0enne(y&as";EhtF 2 ibi( 2 : *ohn Boehner, 7e"resentati)e, O7-@HP, @"ensecrets&org, htt"#$$%%%&o"ensecrets&org$"oliticians$su!!ary&"h"E cycleF2 +Aty"eFCAci(FN ?.1+Ane%Me!FNHcont 21 Brian 3enne(y, F6C 1onsulting, htt"#$$%%%&fticonsulting&co!$global2$"rofessionals$brian-0enne(y&as";EhtF /onnecting the .ots5 )arcellus Shale 4lay 4layers 79 of 267
2o(ert P Murphy266 is also a columnist at +ownhall.com Senior *ellow5 Institute -or Energy 2esearch)1) Co"ert 4. )ur'hy is an economist with IEC s'eciali1ing in climate change. His research focuses on the 'ro'er discount rate to "e used in cost8"enefit analyses and the im'lications of structural uncertainty for 'olicy solutions. #d3unct Scholoar5 Mac"inac Center -or Pu(lic Policy)1* 4er SODC/E #+/H26&5 +he )ackinac /enter for 4u"lic 4olicy is a state8level conservative 'olicy think tank in )ichigan. *ounded in 697=( it is the largest state8level think tank in the nation. It was esta"lished "y the stateHs leading conservative activists to 'romote free market( 'ro8"usiness 'olicies. +he /enter voices its 'olicy 'ositions though 'u"lications and has moved "eyond )ichigan "y hel'ing the leaders of similar conservative institutions to im'rove their o'erations in many other states and countries around the world. #s a side note( you may remem"er Cachel )addow "um'ing heads with the )ackinac /enter 26: a"out a year ago5 J+he latest incarnation of this "reed of conservatism weirdly involves this show(J )addow said. #s she descri"ed it( a conservative think tank in )ichigan called the )ackinac /enter su"mitted a *OI# reMuest seeking any emails from la"or 'rofessors at the Dniversity of )ichigan( ayne State Dniversity and )ichigan State Dniversity. +he center demanded any email that includes the words JScott alker(J J isconsin(J J)adison(J and J)addow.J
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7esu!Z$1J, 7obert P& Mur"hy, Free /()ise - 6he "ersonal blog of econo!ist 7obert P Mur"hy, htt"#$$consultingbyr"!&co!$resu!ec) 212 Cnstitute for >nergy 7esearch OC>7P, Scholars, htt"#$$%%%&instituteforenergyresearch&org$scholars$ 21' Mac0inac 1enter for Public Policy, htt"#$$%%%&!ac0inac&org$bio&as";EC<F, 2 21, Mac0inac 1enter for Public Policy, Source%atch, htt"#$$%%%&source%atch&org$in(e;&"h"E titleFMac0inacD1enterDforDPublicDPolicy 21. Ma((o% Stunne( By 6hin0 6an0 6argeting Professors 9ho =se Her Na!e Cn >!ails, 6he Huffington Post, *ac0 Mir0inson, .$' $11, htt"#$$%%%&huffington"ost&co!$2 11$ '$' $!a((o%-stunne(-by-thin0-tDnD-,2??,&ht!l /onnecting the .ots5 )arcellus Shale 4lay 4layers 90 of 267
0isa allace is a former aide to *ormer Ce'resentative 4om"o26>( and is currently the Senior Fice 4resident( of O'erations and .evelo'ment for IEC. 26= allace s'ent twelve years working on /a'itol Hill for /ongressman -eorge Cadanovich and the House /ommittee on Cesources. Initially( she worked as administrative assistant to /ongressman Cadanovich267( where she served as senior advisor to the congressman on all matters of 'olicy( 'ersonnel( 'olitical strategy and district o'erations and managed multi8million dollar "udget( legislative( communications and su''ort staff. #s /hief *inancial Officer for the House /ommittee on Cesources( )s. allace managed and administered a A6: million "i8 annual committee "udget( oversaw all "usiness o'erations of the full committee( its five su"committees( and the Office of the /hief /lerk( and managed a :08mem"er 'rofessional staff. On *e"ruary 2>( 2007( #le9 Ba'lun of -reenwire re'orted that former staffers of former Ce'u"lican Ce'resentative Cichard 4om"o and e98House /ommittee on <atural Cesources aides ;rian Bennedy( 0isa allace269( .an Bish and Co" -ordon had launched 2esponsi(le
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2esources220 /ith an ad ca%paign asserting that taxes on energy co%panies are a threat to a--orda(le and relia(le energy. *ormer -O4 aides form new energy grou'2265 #;S+C#/+ +he article re'orts that former aides of the Ce'u"lican 4arty of the D.S. including ;rian Bennedy( 0isa allace( and .an Bish( formed a grou'( 2esponsi(le 2esources( to educate 'eo'le on energy issues. It states that the group denies (eing a ne/ lo((ying group# the ad8ertise%ent ca%paign that "ic"ed o-- /as critical o- e--orts to raise taxes on energy co%panies. :ennedy said that the group /ants to ta"e up si%ple issues and pu(lish a des" re-erence on energy resources in the 4.S. The Institute -or Energy 2esearch AIE2@222 4er SODC/E #+/H22$5 founded in 6979 from a 'redecessor non8'rofit organi1ation( advocates 'ositions on environmental issues including deregulation of utilities( climate change denial( and claims that conventional energy sources are virtually limitless. It is a mem"er of the Sustaina"le .evelo'ment <etwork.22& 2o(ert =. ,radley Cr522: /hief E9ecutive Officer and 4resident. /urrently a mem"er of the International #ssociation for Energy Economics( the #merican Economic #ssociation( Southern Economic #ssociation( and the #merican Historical #ssociation. *ormer .irector of 4u"lic Celations 4olicy at Enron. In #ugust 2066( .r. Co"ert ;radley( /EO of the IEC( s'oke at the Energy( Environment and #griculture +ask *orce meeting of the >%erican =egislati8e Exchange Council A>=ECB annual meeting in <ew Orleans( 0ouisiana. *or more on #0E/ see Sourcewatch!s 'age K#0E/ EE4OSE.L22>. In 2009 IEC ran a cam'aign on Jgreen 3o"sJ attacking the e9'ansion of renewa"les energies. IEC commissioned three studies on renewa"le energies and green 3o"s in .enmark( -ermany and S'ain. +hese studies "y different think tanks were than 'romoted "y IEC and other free market think tanks in the DS "ut also used in Euro'e. >%erican Energy >lliance added@5
22=
is a J'artnerJ of Institute for Energy Celations ?em'hasis
The American 5nergy Alliance (A5A %as !ounded in 2""+ (y Thomas Pyle775, who previously lobbied on behalf of the ational Petrochemical and <efiners *ssociation
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7es"onsible 7esources %ebsite is no longer %or0ing For!er G@P ai(es for! ne% energy grou", February 2 -, *i! Sny(er, HillV2$2-$2 -, Jol& 1. Cssue 2', "1-, htt"#$$connection&ebscohost&co!$c$articles$'21 +2-?$for!er-go"-ai(es-for!-ne%-energy-grou" 222 6he Cnstitute for >nergy 7esearch, htt"#$$instituteforenergyresearch&org$ 22' 6he Cnstitute for >nergy 7esearch, Source%atch, htt"#$$%%%&source%atch&org$in(e;&"h"E titleFCnstituteDforD>nergyD7esearch 22, ibi( 22. ibi( 22+ /!erican Legislati)e >;change 1ouncil, /lec >;"ose(, Source%atch, htt"#$$%%%&source%atch&org$in(e;&"h"E titleF/!ericanDLegislati)eD>;changeD1ouncil 22? /!erican >nergy /lliance, Source%atch, htt"#$$%%%&source%atch&org$in(e;&"h"EtitleF/!ericanD>nergyD/lliance 22/!erican >nergy /lliance, Staff, htt"#$$%%%&a!ericanenergyalliance&org$(isco)er$staff$
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and Coch Industries when %elay served as 'hip 77@ and (e!ore =elay, as -ouse 7aFority Meader, ste&&ed do%n !rom the H$.$ -ouse o! 6e&resentatives under an ethical cloud$ 4yle was the founder of his own consulting firm(2$0 4yle /onsulting( Inc.5 CUan active &u(lic a!!airs consulting !irm %ith a %ide range o! &rivate and not,!or,&ro!it customers$ Prior to starting his o%n !irm, Pyle served as vice &resident o! the 6hoads 'rou& in Aashington, =C %here he re&resented and advised a variety o! association and cor&orate clients in meeting their strategic &u(lic &olicy goals and &riorities$ -e also served as director o! !ederal a!!airs !or a maFor integrated manu!acturing and services com&any !ocusing on energy, environment, regulatory and trans&ortation issues$ 3e!ore coming to the &rivate sector, Pyle held numerous &ositions on Ca&itol -ill including serving a &olicy analyst !or the 7aFority Ahi& o! the H$.$ -ouse o! 6e&resentatives and as sta!! director !or the Congressional Aestern Caucus, as %ell as other legislative sta!! &ositions$E
Tra8is Windle)*1 5 EI. 4resenter. #lthough +ravis indle!s name does not a''ear on any of the EI. we"sites( he was cited as a 'resenter on a 'ower'oint 'resentation5 +HE
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/!erican >nergy /lliance, Source%atch, htt"#$$%%%&source%atch&org$in(e;&"h"EtitleF/!ericanD>nergyD/lliance Cnstitute for >nergy 7esearch OC>7P, Staff, htt"#$$%%%&instituteforenergyresearch&org$staff$ 2'1 6H> M/71>LL=S SH/L>, Po%ering /!ericaLs Future, 6han0s to Hy(raulic Fracturing, 6ra)is 9in(le, tra)is[energyin(e"th&org, htt"#$$%%%&)sbn&org$G1>2 1 $gce2 1 D"resentations$632D2 D9in(le&"(f /onnecting the .ots5 )arcellus Shale 4lay 4layers 9$ of 267
)#C/E00DS SH#0E5 4owering #merica!s *uture(+hanks to Hydraulic *racturing 2$2( dated Octo"er 6&( 2060( and the email listed for )r. indle is at EI.. indle has also "een cited as S'okesman for the )arcellus Shale /oaltion5 CMi1e%ise, Marcellus Shale #oalition Spo!esman Travis 'indle 233said the closure o! any one %ell %ill have little to no im&act on those using it !or %aste dis&osal$E Fice 4resident 2 *+I /onsulting2$& 4ress Secretary( House Ce'u"lican /onference 8 DS House of Ce'resentatives2$: /ommunications .irector( House *inancial Services /ommittee 8 DS House of Ce'resentatives2$> 4ress Secretary 2 former Ce' Iohn E 4eterson C84# 2$= 2$7 Staff #ssistant 2 former Ce'. )elissa Hart C84# ( she was defeated in the 200> -eneral Election. 4ress Secretary 8 Ce'. +om 4etri C8 I2$9
Shannon ,rushe is a S'okes'erson for EI. and .irector for *+I /onsulting2&0 2&6. Shannon ;rushe5 Shannon serves *.!s clients2&2 in her ca'acity as the team!s radio and television "ooker. ith a constantly8growing rolode9 of state and national radio and television 'roducers( Shannon!s skills will "e utili1ed to secure interviews and a''earances for I+S #merica!s in8 house and third8'arty s'okes'eo'le.
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6H> M/71>LL=S SH/L>, Po%ering /!ericaLs Future, 6han0s to Hy(raulic Fracturing, 6ra)is 9in(le, tra)is[energyin(e"th&org, htt"#$$%%%&)sbn&org$G1>2 1 $gce2 1 D"resentations$632D2 D9in(le&"(f 2'' >;"erts (o%n"lay closing of brine %ell, Long-ter! shut(o%n coul( be costly, *anuary ,, 2 12, By </N P@MPCLC , 6ribune 1hronicle, htt"#$$%%%&tribto(ay&co!$"age$content&(etail$i($.++1+.$>;"erts-(o%n"lay-closing-of-brine-%ell&ht!lE na)F. 21 2', 6ra)is 9in(le, Lin0e(in, htt"#$$%%%&lin0e(in&co!$"ub$tra)is-%in(le$'$-:+$2 + 2'. ibi( 2'+ ibi( 2'? 6ra)is *& 9in(le, 1ongressional Staffer, Legistor!, htt"#$$%%%&legistor!&co!$"erson$6ra)isD*D9in(le$1'':+&ht!l 2'ibi( 2': ibi( 2, Cn)est!ent in clean energy goo( for future, collegianonline, February 2, 2 11, htt"#$$%%%&collegian&"su&e(u$archi)e$2 11$ 2$ 2$in)est!entDinDcleanDenergyDgoo(DforDfuture&as"; 2,1 Shannon Brushe, Lin0e(in, htt"#$$%%%&lin0e(in&co!$in$sbrushe 2,2 F< /ccount 6ea!, F6C 1onsulting, Cntelligent 6rans"ortation Society of /!erica OC6S /!ericaP, Me(ia 7elations Pro"osal for the 1-th 9orl( 1ongress on Cntelligent 6rans"ortation Syste!s an( C6S /!ericaLs 2 11 /nnual Meeting A >;"osition, No)e!ber 2,, 2 1 , htt"#$$2 11%orl(congress!ar0eting&itsa&%i0is"aces&net$file$)ie%$F<QPro"osalQC6SQ/!ericaQ11-2,-2 1 &"(f /onnecting the .ots5 )arcellus Shale 4lay 4layers 9& of 267
EI3@The &hio ProNect Players 2honda 2eda52&$ EI. 2 +he Ohio 4ro3ect( E9ecutive .irector E9ecutive .irector5 Ohio Oil and -as Energy Education 4rogram ?OO-EE4@ 2&& )s. Ceda currently serves on the Pu(lic &utreach Co%%ittee o- the Interstate &il and $as Co%pact Co%%ission AI&$CCB and the /olonial .rake ell Historical KOil6:0L Steering /ommittee. She is an active mem"er of the Independent Petroleu% >ssociation o- >%erica# the Society oPetroleu% Engineers and the &hio $eological Society. Cecently( )s. Ceda served on the White !ouse Tas" 'orce on Energy Education ( and has received numerous state and national awards for OO-EE4!s efforts including5 ##4Eastern Section!s 4residential #ward for 4u"lic Outreach( *riend of Science #ward from the Science /ouncil of Ohio( E4#!s Ohio Environmental Education #ward for Outstanding 4rogram( orld Oil Cunner D' for ;est 4u"lic Outreach 4rogram( Ohio .e'artment of <atural Cesources! )inerals Education #ward( and the Interstate Oil and -as /om'act /ommission!s 4u"lic Outreach Stewardshi' #ward. )s. Ceda is a graduate of "oth Ohio Dniversity and Edison State /ollege. E9ecutive .irector 2 Ohio Oil and -as *oundation2&: Tho%as Ste/art)075 EI. 2 +he Ohio 4ro3ect( E9ecutive Fice 4resident
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>C< \ 6he @hio ProIect, Meet the 6ea!, htt"#$$%%%&ei(ohio&org$our-tea!$ 7hon(a 7e(a, Lin0e(in, htt"#$$%%%&lin0e(in&co!$in$rhon(are(a 2,. ibi( 2,+ >C< \ 6he @hio ProIect, Meet the 6ea!, htt"#$$%%%&ei(ohio&org$our-tea!$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 9: of 267
)em"er5 Interstate Oil and -as /om'act /ommission2&= E9ecutive Fice 4resident and ;oard of +rustees5 Ohio Oil G -as #ssociation ?OO-#@2&7
Coel LC2L 2udicil)0< 2:0is a *ield .irector for Energy8In8.e'th ?EI.@ 8Ohio( as well as 4resident of IC Cesources( and on the Ohio Oil G -as #ssociation ?OO-#@ ;oard of +rustees as Secretary and +reasurer. Tho%as Ste/art52:6 EI. 2 +he Ohio 4ro3ect( E9ecutive Fice 4resident )em"er5 Interstate Oil and -as /om'act /ommission2:2 E9ecutive Fice 4resident and ;oard of +rustees5 Ohio Oil G -as #ssociation ?OO-#@2:$ Michael LMi"eL Chadsey)10 is the /am'aign )anager for Energy8In8.e'th ?EI.@ 8Ohio. He was also the <ortheast Ohio Cegional Ce'resentative 2:: for 0+ -ov. )ary +aylor ?OH@.
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So!e /""ointees to @il an( Gas 1o!!ission /re Cn(ustry >;ecs, Lobbyists, by Marie 1& Baca, ProPublica, <ec& :, 2 1 , htt"#$$%%%&"ro"ublica&org$article$so!e-a""ointees-to-oil-an(-gas-co!!ission-are-in(ustry-e;ecs-lobbyists 2,ibi( 2,: >C< \ 6he @hio ProIect, Meet the 6ea!, htt"#$$%%%&ei(ohio&org$our-tea!$ 2. *7 7esources, Cnc, 7oyalty /c5uisitions, htt"#$$Irresourcesinc&co!$bio&ht! 2.1 >C< \ 6he @hio ProIect, Meet the 6ea!, htt"#$$%%%&ei(ohio&org$our-tea!$ 2.2 So!e /""ointees to @il an( Gas 1o!!ission /re Cn(ustry >;ecs, Lobbyists, by Marie 1& Baca, ProPublica, <ec& :, 2 1 , htt"#$$%%%&"ro"ublica&org$article$so!e-a""ointees-to-oil-an(-gas-co!!ission-are-in(ustry-e;ecs-lobbyists 2.' ibi( 2., >C< \ 6he @hio ProIect, Meet the 6ea!, htt"#$$%%%&ei(ohio&org$our-tea!$ 2.. Lt& Go)'s ai(e ans%ers 5uestions on S&B& ., frac0ing, *une 2+, 2 11, 6he /thens Ne%s, htt"#$$%%%&athensne%s&co!$ohio$article-',2---lt-go)s-ai(e-ans%ers-5uestions-on-sb-.-frac0ing&ht!l /onnecting the .ots5 )arcellus Shale 4lay 4layers 9> of 267
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Sorry# More Tangles Energy8in8.e'th is not the only KenergyL front grou' with *+I /onsulting connections. Secure our *uels2:> we"site is registered to .ittus /ommunications.
Domain ,e!i"tration-./
Secure &ur 'uels is a EproNectF o- the Consu%er Energy >lliance )1;. 4er Sourcewatch5 The Consumer 5nergy Alliance (C5A is a non&ro!it organiLation and a !ront grou& !or the energy industry that o&&oses &olitical e!!orts to regulate car(on standards %hile advancing dee& %ater and land,(ased drilling !or oil and methane gas$ The C5A su&&orts li!ting moratoria on o!!shore and land,(ased oil and natural gas drilling, encourages the creation and e8&ansion o! &etroleum re!ineries and easing the &ermitting &rocess !or drilling$ The grou& also says it su&&orts energy conservation$ C5: &ortrays itsel! as see1ing to ensure a G&ro&er (alanceG (et%een traditional non,rene%a(le and e8tractive energy sources and alternative energy sources$ The grou& also su&&orts construction o! the >eystone NM Pi&eline$ According to .alon$com, %hich o(tained over 3"" emails o! &ersonal messages (et%een lo((yists and Canadian o!!icials, the C5A is &art o! a so&histicated &u(lic a!!airs strategy designed to mani&ulate the H$.$ &olitical system (y deluging the media %ith messaging !avora(le to the tar,sands industryR to &ersuade 1ey state and !ederal legislators to act in the e8tractive industriesB !avorR and to de!eat any attem&t to regulate the car(on emissions emanating !rom gasoline and diesel used (y H$.$ vehicles$ Salon.com( ?62%6:%2066@ 'u"lished a story "y -eoff .em"icki J ,ig &il and Canada th/arted 4.S. car(on standardsJ )1< which 'ulls the curtain away from the /onsumer Energy #lliance. AE%phasis addedB "The story in the emails, reported for the first time here in Salon and The Tyee, #anada2s leading independent online news site, traces a year in the relationship of 7ichael Ahatley, a ':P,connected oil industry lo((yist and his friend, 9ary Mar, a smooth&tal!ing and ambitious diplomat at the #anadian embassy in the 'ashington, %#.
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Secure @ur Fuels, htt"#$$%%%&secureourfuels&org$running-on-e!"ty$ Net%or0solutions, secureourfuels&org, htt"#$$%%%&net%or0solutions&co!$%hois-search$secureourfuels&org 2.1onsu!er >nergy /lliance, Source%atch, htt"#$$%%%&source%atch&org$in(e;&"h"EtitleF1onsu!erD>nergyD/lliance 2.: Big @il an( 1ana(a th%arte( =&S& carbon stan(ar(s, Geoff <e!bic0i, <ece!ber 1., 2 11, Salon&co!, htt"#$$%%%&salon&co!$2 11$12$1.$bigDoilDan(Dcana(aDth%arte(DuDsDcarbonDstan(ar(s$singleton$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 97 of 267
The messages lay (are a so&histicated and stealthy &u(lic relations o!!ensive, one designed to mani&ulate the H$.$ &olitical systemR to deluge the media %ith messages !avora(le to the tar,sands industryR to s%ay 1ey legislators at state and !ederal levelsR and most im&ortantly, to de!eat any attem&t to ma1e the gasoline and diesel &um&ed everyday into H$.$ vehicles less damaging to the climate$ The goal o! it allD C=e!eatE :(ama<s e!!ort to reduce car(on consum&tion and 1ee& America hoo1ed on Canada<s $441 (illion tar sands industry, no matter %hat the cost to our &lanet<s !uture$ Perha&s the (est &lace to start is on =ecem(er 3", 2""*$ 0t %as a (ad day !or 7ichael Ahatley, !ounding &artner at a C&Street consulting firm in 'ashington called B(' <esources that has close ties to Al(erta<s tar sands industry$ G .em"icki continues5 ?Em'hasis added@ 5 GThen in the late 2"""<s, 'hatley2s firm created the #onsumer /nergy *lliance >#/*?, a 3grassroots- organi"ation supported by such prominent tar sands producers as (P, #hevron, /$$onMobil, Marathon, Shell and orway2s Statoil. The group claims to be providing 3a voice for consumers interested in vital public issues.5nvironmental grou&s, ho%ever, dismiss the claim, saying the grassroots loo1 more li1e astrotur!, and the consumer rhetoric is a guise$ 3They2re a front group that represents the interests of the oil industry,- said analyst +u!e Tonachel of atural <esources %efense #ouncil in an interview. The Consumer 5nergy Alliance has (een one o! the most outs&o1en critics o! lo% car(on !uel standard legislation$ In *ugust 7==@, it began running a series of slic! radio and TI ads in Tennessee, Montana and the %a!otas, warning that such policies 3threaten thousands of *merican jobs- and 3would be disastrous for *merican consumers.- 5ach ad instructed vie%ers to com&lain to their state<s re&resentatives in Congress, &roviding &hone num(ers to ma1e it easier$G +he /E# was created in the late 2000s "y )ichael hatley( a founding 'artner of a ashington( ../.8"ased Ce'u"lican lo""ying grou' H; Cesources.2>0 *or more on the /E#%H; Cesources efforts to thwart cleaner fuels see K WhoMs (ehind the attac" ca%paigns against cleaner transportation -uels L(2>6 "y 0i1 ;arratt8;rown of the <atural Cesources .efense /ouncil ?<C./@.
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HB9 7esources, 9ho 9e /re, htt"#$$hb%resources&co!$%ho-%e-are$ 9hoLs behin( the attac0 ca!"aigns against cleaner trans"ortation fuelsE Part 1, N7<1 S%itchboar(, March 2, 2 1 , Li4 Barrat-Bro%n, htt"#$$s%itchboar(&nr(c&org$blogs$li4bb$%hosDbehin(DtheDattac0Dca!"aig&ht!l
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Tiny ,its =e-t &8er *or some reason( when the untangling is done( there seems to "e tiny "its left over. *rom EI.8<ortheast )arcellus Initiative2>2 we have5 To% Shepstone 8 /am'aign .irector( and owner of She'stone )anagement /om'any.2>$ His "lur" on EI. reads5 GMed on the ground (y Aayne County, Pennsylvania, native Tom .he&stone, 50= 4ortheast dra%s on the considera(le e8&ertise and technical insight o! 50=<s coalition &artners in the area (and, as needed, across the country to (ring !orth the !acts on the &romise and &otential o! the 7arcellus .hale$G ;ill desCosiers was a *ield .irector. He has left Energy8In8.e'th5 <ortheast )arcellus Initiative and is now a mem"er of /a"ot Oil G -as E9ternal #ffairs +eam. )eet the /a"ot /rew5 ;ill desCosiers.2>& ?E9cer't@5 C3ill Foined our 58ternal A!!airs team a!ter a t%o,year &osition as a 2ield =irector !or 5nergy,0n,=e&thJ 4ortheast 7arcellus 0nitiative$E
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>nergy Cn <e"th - Northeast Marcellus Cnitiati)e, 9ho 9e /re, htt"#$$ei(!arcellus&org$%ho-%e-are-2$ She"stone Manage!ent 1o!"any, htt"#$$%%%&she"stone&net$ 2+, Meet the 1abot 1re%, Bill (es7osiers, htt"#$$%ellsai(cabot&co!$2 12$ ?$' $bill(esrosiers$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 600 of 267
EI3 Spreads &ut <ew *ield .irectors2>: have "een dis'atched to K)ountain StatesL( )ichigan( Illinois( +e9as and /alifornia. <o official we"sites have a''eared for these areasN.yet. Courtney =oper +itle5 *ield .irector( )ountain States Home *ormation5 .enver8Iules"erg ;asin :yna =egner +itle5 *ield .irector( Illinois Home *ormation5 <ew #l"any Eri" ,auss +itle5 *ield .irector( )ichigan Home *ormation5 <iagaran Ceef Per (auss2s +in!edin; 766 *ield .irector at Energy In .e'th
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>nergy Cn <e"th, Meet the 6ea!, htt"#$$%%%&energyin(e"th&org$!eet-the-tea!$ 606 of 267
Inde'endent( ##40 Cegistered 0andman at Inde'endent( ##40 Cegistered 0andman Cealtor[ at 4rofessional One Ceal Estate 4ro3ect manager at ;auss Haus /or'oration 0andman at .evon Energy )em"er at )ichigan Oil and -as #ssociation ?)O-#@
K0eading the way for EI. in )ichigan is Erik ;auss 2>=( an inde'endent small8"usiness owner and contractor "ased in Southeast )ichigan( "ut whose reach and territory for EI. will e9tend across the entire state. In kicking8off the effort this week( Erik 3oins a growing( nationwide network of EI. researchers and staffers s'read out across seven states and the .istrict of /olum"ia 2 all focused on getting out the "est information availa"le on oil and gas issues( and doing so in a manner that!s Muick( res'onsive( accurate and su"stantive. #n avid outdoorsman( ;auss earned his degree in environmental and natural resource 'olicy from )ichigan State Dniversity.L ;auss was a former landman for .evon Energy /or'oration and listed as an Inde'endent landman "y the #merican #ssociation of 4rofessional 0andman. 2>7 3a8id ,lac"%on +itle5 *ield .irector( +e9as Home *ormation5 Eagle *ord =avid 3lac1mon is a managing director o! the 2T0 .trategic Communications 2)* &ractice and is (ased in -ouston$ Throughout his 33 year career in the oil and gas industry, =avid has led industry,%ide e!!orts to develo& and im&lement strategies to address 1ey issues at the local, state and !ederal level$ Prior to Foining 2T0 in 2"12, =avid served !or !ive years as =irector o! 'overnment A!!airs !or 5P 5nergy, MMC$ Prior to Foining 5l Paso, =avid %as 7anager !or .hell 5VP 4orth AmericaBs internal and e8ternal communications$ 3e!ore .hell, =avid %as at 3urlington 6esources !or 1+ years %here he (ecame their .enior 7anager o! Cor&orate A!!airs$ -e has also had &revious sto&s at com&anies li1e Tesoro Petroleum, -ughes Te8as Petroleum Mtd, and Coastal .tates :il and 'as Co$
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>C< e;"an(s outreach effort to Michigan, >nergy Cn <e"th, >ri0 Bauss, Fiel( <irector, Michigan, *uly '1, 2 12, htt"#$$%%%&energyin(e"th&org$energy-in-(e"th-e;"an(s-outreach-effort-to-!ichigan$ 2+Lin0e(Cn, htt"#$$%%%&lin0e(in&co!$"ub$eri0-bauss$'$+'?$1,. 2+: <a)i( Blac0!on, Managing <irector, Strategic 1o!!unications an( Public Policy F6C 1onsulting, Gro%ing 6e;as, htt"#$$gro%ingte;as&ta!u&e(u$S"ea0ers$<a)i(Blac0!on /onnecting the .ots5 )arcellus Shale 4lay 4layers 602 of 267
2rom A&ril 2"1" through /une 2"12, =avid served as the Te8as .tate Mead !or America<s 4atural 'as Alliance, %here he &layed a 1ey role in the &assage o! t%o maFor &ieces o! legislation during the 2"11 session o! the Te8as Megislature, and handled all media relations and outreach activities$ =avid is &ast Chairman o! =e&artment o! 0nterior<s 6oyalty Policy Committee, and a long,time ?ice Chair o! 0PAA<s Mand and 6oyalty Committee$ -e chaired the Access and 5nvironmental .u(committee !or the 4ational Petroleum Council<s 2""3 4orth American 4atural 'as .tudy, and served as industry re&resentative on t%o negotiated rule,ma1ing committees created through the =e&artment o! 0nterior$ -e has testi!ied (e!ore various congressional and legislative committees on to&ics such as oil and gas valuation !or !ederal and 0ndian royalties, &roducer o(ligations to !ee royalty o%ners and on energy education$ =avid attended Te8as AV0 Hniversity and The Hniversity o! Te8as, earning 3$A$ in accounting in 1*7*$
3a8e Puast +itle5 *ield .irector( /alifornia Home *ormation5 )iocene )onterey
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.avid Xuast is also the Senior Fice 4resident in the *+I Strategic /ommunications and is "ased in 0os #ngeles.
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'ractice
C7r$ Ouast has led engagements and &rovided counsel to clients in a variety o! sectors$ -is industrials clients have included >aiser Aluminum and 3elden, 0nc$ 0n the &ro!essional services sector, 7r$ Ouast has re&resented 7ayer 3ro%nR Moe( V Moe(R 'rant ThorntonR 7anatt, Phel&s V Philli&sR 2oley V MardnerR Ainston V .tra%nR Aeston 3enshoo! and 7itchell, .il(er(erg V >nu&&$ 2inancial services clients have included 4orthern TrustR MPM 2inancial, 2ar 5ast 4ational 3an1 and .tonnington 0nvestments, and technology clients have included T3' =igital and 'uidance .o!t%are$ 7r$ Ouast has also s&earheaded engagements !or organiLations including AA6P and the Planned Parenthood 2ederation o! America$ Previously, 7r$ Ouast %or1ed in 4e% @or1, managing media relations on state and !ederal legislative and regulatory issues !or Phili& 7orris %here he develo&ed and e8ecuted communications strategies to hel& the com&any !ight signi!icant litigation, regulatory threats, and the &ros&ect o! a maFor 2ederal ta8 increase$ -e served as a com&any s&o1es&erson and %as a !re9uent guest on tal1 radio throughout the Hnited .tates$ -e also served as national communications manager !or Thelen 6eid V Priest MMP$ 7r$ Ouast %as managing director and e8ecutive vice &resident o! 6M7 Pu(lic 6elations, managing o&erations, leading ne% (usiness develo&ment e!!orts and &roviding senior counsel to clients$ 0n Aashington, =$C$, 7r$ Ouast %as &ress secretary to Congressman and -ouse 2inancial .ervices Committee Chairman /ames A$ Meach, and he %as also director o! &u(lic a!!airs at the Cato 0nstitute$ -e also served as chie! o! sta!! to a Aashington state senator$E
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<a)i( 1& 2uast, Senior Jice Presi(ent, F6C 1onsulting, htt"#$$%%%&fticonsulting&co!$global2$"rofessionals$(a)i(-c5uast&as"; /onnecting the .ots5 )arcellus Shale 4lay 4layers 60& of 267
The EndK +here are many more such cam'aigns going on across many social and "usiness sectors. It is u' to each of us as individuals to 'ay attention( to do our own investigation and research. I have $ sim'le rules5 6. .isregard half of what you read or hear and Muestion the rest. 2. *ollow the )oney $. /onnect the .ots Is this the end, <o( one dot tends to lead to another.
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Chapter 6 Ca(ot &il Q $as and :rancer D )1)R' The ,oiling Point 3(ased on my conversation with you it was clear that /P* is really at the very early stages of its learning curve with respect to %imoc! and /P*2s understanding of the technical facts and %/P2s enforcement history with respect to %imoc! is rudimentary.- @ Michael :rancer# Pennsyl8ania 3epart%ent oEn8iron%ental Protection AP> 3EPB Secretary. =etter to EP> regarding 3i%oc"# P>2?1 hen talking a"out water contamination due to natural gas drilling /a"ot Oil G -as and .imock is in the forefront of controversy. In 2009( a s'ill of 7(000 gallons of Kdrilling fluidsL occurred at a /a"ot drill site. # 4ro4u"lica article descri"es it as 2=25 CThe s&ills, %hich occurred at a %ell site run (y Ca(ot :il and 'as, involve a com&ound manu!actured (y -alli(urton that is descri(ed as a G&otential carcinogenG and is used in the drilling &rocess o! hydraulic !racturing, according to state o!!icials$ The contaminants have see&ed into a near(y cree1, %here a !ish 1ill %as re&orted (y the state =e&artment o! 5nvironmental Protection$ The =5P also re&orted !ish Gs%imming erratically$G The incident is the latest in a series o! environmental &ro(lems connected to Ca(ot<s drilling in the =imoc1 area$ Mast %inter, drin1ing %ater in several area homes %as !ound to contain metals and methane gas that state o!!icials determined lea1ed underground !rom Ca(ot %ells$ And in the s&ring, the com&any %as !ined !or several other s&ills, including an +"",gallon diesel s&ill !rom a truc1 that overturned$ ProPu(lica intervie%ed state o!!icials several months ago a(out drilling &ro(lems in =imoc1$ "#abot has definitely had their share of problems out there," #raig +obins, a regional oil and gas division director, said then. "Some of them is just being a little bit careless J or sloppy, or maybe a little bit of bad luc! too." 4ro'u"lica5 ater 4ro"lems *rom .rilling #re )ore *reMuent +han 4# Officials Said 2=$ The =e&artment o! 5nvironmental Protection as1ed the com&any to encase its lo%er %ell &i&es com&letely in concrete ; a &rocess 1no%n in the industry as GcementingG ; and assured the &u(lic that the contamination in =imoc1 %as rare$ 3ut according to a de&artment s&o1es%oman, there have (een at least 52 se&arate cases o! %hat the state calls Gmethane migrationG in the &ast !ive years$ 0n t%o o! the 2""* cases, regulators res&onded to com&laints !rom more than 32 households and
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P/ <>P Sec 3rancer 6ells >P/ Bou <onLt =n(erstan( <i!oc0, Marcellus <rilling Ne%s, *anuary 12, 2 12, htt"#$$!arcellus(rilling&co!$2 12$ 1$"a-(e"-sec-0rancer-tells-e"a-you-(ont-un(erstan(-(i!oc0$ 2?2 Frac0 Flui( S"ill in <i!oc0 1onta!inates Strea!, 3illing Fish, Frac0 Flui( S"ill in <i!oc0 1onta!inates Strea!, 3illing Fish, by /brah! Lustgarten, ProPublica, Se"t& 21, 2 :, htt"#$$%%%&"ro"ublica&org$article$frac0-flui(-s"ill-in(i!oc0-conta!inates-strea!-0illing-fish-:21 2?' 9ater Proble!s Fro! <rilling /re More Fre5uent 6han P/ @fficials Sai(, by /brah! Lustgarten, ProPublica, *uly '1, 2 :, htt"#$$%%%&"ro"ublica&org$article$%ater-"roble!s-fro!-(rilling-are-!ore-fre5uent-than-officials-sai(-?'1 /onnecting the .ots5 )arcellus Shale 4lay 4layers 60> of 267
as1ed gas com&anies to su&&ly clean %ater to at least a doLen homes %ith contaminated %ells$ An undated re&ort !rom the Pitts(urgh 'eological .ociety &osted to the =5PBs Ae( site ma1es it clear that old %ells and ne% drilling can lead to stray gas &ro(lems$ GAlthough it rarely ma1es headlines,G the re&ort reads, Gdamage or threats caused (y gas migration is a common &ro(lem in Aestern Pennsylvania$G Craig Mo(ins, the =5P regional oil and gas manager %ho initially descri(ed the =imoc1 case as an anomaly in intervie%s %ith ProPu(lica, said he still (elieves the !re9uency o! contamination incidents is statistically insigni!icant$ +he dismissal of a connection "etween natural gas drilling and contamination is the standard natural gas cor'oration!s talking 'oint and has "ecome one for the .E4. +he melding of /a"ot and .imock in the minds of the 'u"lic "egan in the winter of 2007 when drinking water wells at several homes were found to contain metals and methane gas. #ccording to 4# .E4 officials( the contamination was from a KleakageL at a near"y /a"ot gas well. .imock( 4#5 J-round WeroJ In +he *ight Over *racking52=& C0n 2""*, !i!teen =imoc1 !amilies %ith contaminated %ater !iled a !ederal la%suit against Ca(ot$ The com&any has %rac1ed u& more than 13" drilling violations at its =imoc1 %ells, (ut insists the methane migration in =imoc1 %ater %ells is naturally occurringR &ointing to tests ta1en a!ter drilling had (een halted in the area$ Hnder the 6endell Administration, =5P crac1ed do%n hard on Ca(ot$ The agency !ined the com&any $12",""" !or the methane migration incidents, (arred it !rom drilling %ithin the .us9uehanna County community, and ordered it to foot the bill for a water pipeline bringing fluid to %imoc! residents$ Ca(ot agreed to &ay !or tem&orary %ater su&&lies at the a!!ected homes$E It a''eared the 'ro"lem of clean and safe water for .imock residents was solved with the .E4 order for a water 'i'eline. EWe ha8e %ore /ater than /e "no/ /hat to do /ith.F2?. D Michael :rancer# P> 3EP Secretary In Octo"er 2060( a grou' called KEnough #lreadyL was formed and com'rised of .imock citi1ens and "usinesses. Enough #lready o''osed the waterline "ecause 2?+5
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<i!oc0, P/# SGroun( MeroS Cn 6he Fight @)er Frac0ing, NP7 State C!"act, htt"#$$statei!"act&n"r&org$"ennsyl)ania$tag$(i!oc0$ 2?. 3ee" 6a" 9ater Safe, P/ <>P Secretary 3rancerLs 6o" 1 1o!!ents /bout Frac0ing, htt"#$$0ee"ta"%atersafe&org$2 11$11$' $"a-(e"-secretary-0rancers-to"-1 -co!!ents-about-frac0ing$
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<ebate o)er "ro"ose( <i!oc0 %aterline (i)i(es co!!unity, BB L/=7/ L>G>7>, 6i!es6ribune, @ctober 2,, 2 1 ,htt"#$$theti!es-tribune&co!$ne%s$(ebate-o)er-"ro"ose(-(i!oc0-%aterline-(i)i(es-co!!unity-1&1 .'2''H /onnecting the .ots5 )arcellus Shale 4lay 4layers 60= of 267
Cthe &roFect re&resents a (ig,government solution that &enaliLes many ta8&ayers !or the (ene!it o! a !e% and threatens to drive a%ay the gas com&anies that have (rought them money or Fo(s$E +he 4# .E4 Secretary in 2060 was Iohn Hanger. ith the sudden a''earance of KEnough #lreadyL( )r. Hanger saw evidence of /a"ot!s influence. ;oth /a"ot and Enough #lready denied this. /a"ot "rought in .r. Co"ert . atson( an emeritus 'rofessor of 'etroleum and natural gas engineering at 4enn State Dniversity( to 'rove its claim of 're8e9isting methane. .r. atson was handsomely 'aid A2:(000 "y /a"ot to review materials( including well8com'letion records and 'resent a conclusion that /a"ot did not cause methane see'age into aMuifers. +he .E4 records showed 'hotogra'hic evidence of methane "u""ling out of /a"ot!s gas wells( documentation of e9cessive well 'ressures and isoto'ic analysis ?chemical finger'rinting@ linking the contamination in the water wells to /a"ot!s gas wells. .r. atson co8authored a Iuly 2009 study KK#n Emerging -iant5 4ros'ects and Economic Im'acts of .evelo'ing the )arcellus Shale <atural -as 4layL. +he re'ort was s'onsored "y the )arcellus Shale /ommittee.2??
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/n >!erging Giant# Pros"ects an( >cono!ic C!"acts for <e)elo"ing Marcellus Shale# 6his re"ort %as %ritten an( "ro(uce( for the Marcellus Shale 1o!!ittee by the <e"art!ent of >nergy an( Mineral >ngineering, Penn State =ni)ersity& 6he o"inions, fin(ings, an( conclusions e;"resse( in the re"ort are those of the authors an( are not necessarily those of 6he Pennsyl)ania State =ni)ersity or the Marcellus Shale 1o!!ittee& htt"#$$%%%&e!"o%ere(!unici"ality&co!$an-e!erginggiant-"ros"ects-an(-econo!ic-i!"acts-for-(e)elo"ing-!arcellus-shale /onnecting the .ots5 )arcellus Shale 4lay 4layers 607 of 267
Cunning a google search for K#n Emerging -iant5 4ros'ects and Economic Im'acts for .evelo'ing )arcellus ShaleL( I was a"le to locate a 'df file of the re'ort through the #llegheny /onference on /ommunity .evelo'ment.2=7 +he )arcellus Shale /ommittee was created in 2007 2?:. It is an industry front grou' consisting of <atural -as cor'orations and trade associations. Its stated 'ur'ose is to 'romote Gthe res&onsi(le develo&ment o! natural gas !rom the 7arcellus .hale geological !ormation in Pennsylvania and the enhancement o! the Common%ealthBs economy that can (e realiLed (y this clean,(urning energy source$E +he )arcellus Shale /ommittee disa''eared at some 'oint in 2009( and seems to have rea''eared as the )arcellus Shale /oalition.270 /a"ot Oil G -as was a mem"er of the )arcellus Shale /ommittee and is now a mem"er of the )arcellus Shale /oalition. +he year 2060 was also a time for mid8term elections( and the election of a new -overnor of 4ennsylvania. /a"ot donated A20(0002-1 to +om /or"ett!s cam'aign. +om /or"ett won the election and "egan the transition to take office. /or"ett received A6(>$&(09> from <atural -as /or'orations2-2 for his 2060 cam'aign.
/a"ot Oil G -as /or'oration 4olitical #ction /ommittee 2 27$ 2062 *E/ 4#/ 8 <onMualified /ommittee as of Octo"er 22( 2062.
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/llegheny 1onference on 1o!!unity <e)elo"!ent, htt"#$$alleghenyconference&org$/rchi)e1onferenceS"otlight&as" /n >!erging Giant# Pros"ects an( >cono!ic C!"acts of <e)elo"ing the Marcellus Shale Natural Gas Play, htt"#$$%%%&alleghenyconference&org$P<Fs$P>LMisc$PS=Stu(yMarcellusShale ?2, :&"(f 2?: Marcellus Shale 1o!!ittee, Source%atch, htt"#$$%%%&source%atch&org$in(e;&"h"E titleFMarcellusDShaleD1o!!itteeH1oalitionD!e!bers 2Marcellus Shale 1oalition, htt"#$$!arcelluscoalition&org$ 2-1 Marcellus Money&org, htt"#$$!arcellus!oney&org$can(i(ate$corbett-to! 2-2 ibi( 2-' 1abot @il A Gas 1or"oration Political /ction 1o!!ittee - 2 12 F>1 P/1 - Non5ualifie( 1o!!ittee, htt"#$$fec-"oliticalco!!ittees&fin(the(ata&org$l$1 +:.$1abot-@il-/n(-Gas-1or"oration-Political-/ction-1o!!ittee /onnecting the .ots5 )arcellus Shale 4lay 4layers 609 of 267
+he stateHs infrastructure investment "oard( 4ennvest2-,( in <ovem"er 2060 a''roved an A66.7 million 'ackage of grants and loans to fund the .imock waterline 'ro3ect( which was to have "een constructed and maintained "y 4ennsylvania #merican ater /o. .E4 'lanned to sue /a"ot to recover the cost of the line. ithout consulting the .imock families( Iohn Hanger worked out a KdealL with /a"ot2-. to settle the issue "efore the /or"ett administration would take office. +here would "e <O waterline for .imock. C7r$ -anger said it (ecame clear the %aterline %ould not (e (uilt a!ter 6e&u(licans %on control o! (oth the governorshi& and the 'eneral Assem(ly during the 4ovem(er elections$ GCa(otBs o&&osition %as the o&&osition o! elected mem(ers o! the 'eneral Assem(ly, %hom %e res&ect$ T%o sit on the Pennvest (oard and voted against the %aterline,G he said, naming state Sen. %onald 'hite, <&A:, Indiana, and state <ep. %ic! Bess, <& K5, (edford. G0t is 9uite li1ely that their vie%s %ill in !act (e in the maFority come /anuary at Pennvest,G he saidE Sen. .onald hite2-+ has received A9&(6:0 from Oil G -as cor'orations ?200082060@. Senator hite5 /ommittees #ssignments 27= ;anking G Insurance( /hair /ommunity( Economic G Cecreational .evelo'ment Environmental Cesources G Energy State -overnment +rans'ortation( Fice /hair Ce'. .ick Hess2-- has received A&(600 from Oil G -as /or'orations ?200082060@ Ce'resentative .ick Hess5 /ommittee #ssignments2-: /ommittee #ssignments /ommerce( /hair Cules +rans'ortation Senator hite and Ce'resentative Hess voted for the recent #/+ 6$ 8 4ennsylvania <atural -as Im'act "ill2: which( among other things( removes local control%1oning over natural gas drilling.
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Pennsyl)ania Cnfrastructure Cn)est!ent /uthority OP>NNJ>S6P B@/7< M>MB>7S, htt"#$$%%%&"ortal&state&"a&us$"ortal$ser)er&"t$co!!unity$aboutDus$:'2 $hi(eDboar(DofD(irectors$..1::1 2-. <>P (ro"s <i!oc0 %aterline "lansV 1abot agrees to "ay 8,&1M to resi(ents, By Laura Legere, Staff 9riter, 6i!es6ribune, <ece!ber 1, 2 1 , htt"#$$theti!es-tribune&co!$ne%s$gas-(rilling$(e"-(ro"s-(i!oc0-%aterline-"lans-cabot-agreesto-"ay-,-1!-to-resi(ents-1&1 ??:1 Ha;441n?=P Ice 2-+ 9hite, <onal( 1&, Marcellus Money&org, htt"#$$!arcellus!oney&org$can(i(ate$%hite-(onal(-c 2-? 9hite, <onal( 1&, Pennsyl)ania State Senate, htt"#$$%%%&legis&state&"a&us$cf(ocs$legis$ho!e$!e!berDinfor!ation$senateDbio&cf!Ei(F2:? 2-Hess, <ic0 L&, Marcellus Money&org, htt"#$$!arcellus!oney&org$can(i(ate$hess-(ic0-l 2-: Hess, <ic0 L&, Pennsyl)ania House of 7e"resentati)es, htt"#$$%%%&legis&state&"a&us$cf(ocs$legis$ho!e$!e!berDinfor!ation$houseDbio&cf!Ei(F12 /onnecting the .ots5 )arcellus Shale 4lay 4layers 660 of 267
+he JsettlementJ worked out "y Hanger and /a"ot included5 .ro''ing of 'lans to "uild a 62.:8mile waterline from )ontrose to .imock +w'. /a"ot to 'ay the stateHs environmental oversight agency A:00(000 to hel' offset the cost of the de'artmentHs investigation into the stray gas. Each of the 69 families affected "y the methane contamination in their water su''lies will receive an amount eMual to twice the value of their home( with a minimum 'ayment of A:0(000. <O+E5 Falue of Home is "ased on >SSESSE3 value( not market value. #ssessed value is considera"ly lower than market value. /a"ot to 'ay and install whole8house gas mitigation devices in each of the 69 affected homes 8 devices that were earlier re3ected "y many of the families as unwieldy and inadeMuate.
<owhere is the settlement agreement did it state the contaminated water wells needed to "e restored to a clean and safe state. Eight of the original 69 families acce'ted the settlement( and some have 3oined the KEnough #lreadyL grou'. EThe %yth that terri(le che%icals are getting into the ground/ater is co%pletely %yth. It is (ogus.F )<1 D Michael :rancer# P> 3EP Secretary
In Ianuary 2066( +om /or"ett officially "ecame -overnor( and a''ointed )ichael Brancer as 4# .E4 Secretary. 4rior to his a''ointment as 4# .E4 Secretary( Brancer was a 3udge on the Environmental Hearing ;oard. Brancer( as a 3udge on the stateHs Environmental Hearing ;oard( which considers a''eals on certain .E4 decisions( had to rule on an a''eal "rought( in 2006( "y +he Dnited )ine orkers. +he union was challenging an e9em'tion a''roved "y the .E4 regarding methane testing at 7& )ining /o.Hs mine in South Stra"ane. +he union said the e9em'tion was unsafe( des'ite .E4Hs consent. .on /armelite( BrancerHs first law clerk at the "oard recalls 2:25 GThe guy suited u& in all the gear and got the training, and he %al1ed around in a mine a mile (elo% the sur!ace, in thigh,high %ater$ 0t %as consistent %ith %hat he did to get it rightE$
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/ct 1' of 2 12, Pennsyl)ania <e"art!ent of >n)iron!ental Protection htt"#$$%%%&"ortal&state&"a&us$"ortal$ser)er&"t$co!!unity$actD1'$2 ?-: 2:1 P/ <>P Secretary 3rancerLs 6o" 1 1o!!ents /bout Frac0ing, 3ee" 6a" 9ater Safe, htt"#$$0ee"ta"%atersafe&org$2 11$11$' $"a-(e"-secretary-0rancers-to"-1 -co!!ents-about-frac0ing$ 2:2 Ne% <>P "ic0 says he %ill 'a""ly the la%', By Laura @lson $ Post-Ga4ette Harrisburg Bureau, March 2:, 2 12, htt"#$$%%%&"ost-ga4ette&co!$stories$local$state$ne%-(e"-"ic0-says-he-%ill-a""ly-the-la%-2-- :'$Hi;442/<IS+!IP /onnecting the .ots5 )arcellus Shale 4lay 4layers 666 of 267
It!s interesting to note( Secretary Brancer has never visited .imock. Invitations from residents to sto' "y and have a glass of water have "een ignored. Brancer!s 'redecessor( Hanger( did make several tri's to .imock( we don!t know if he en3oyed a glass of water. Brancer!s resume includes5 Fice /hairman( 4ennvest2:'. /urrent /ommittee )em"er( )arcellus Shale #dvisory /ommission2:,. Marcellus Shale >d8isory Co%%ission includes +erry ;ossert ( Fice 4resident -overnment #ffairs( /hief Oil G -as +erry Engelder( 4rofessor of -eoscience 4enn State and 4rinci'al co8 owner of #''alachia *racture Systems Inc.2:. <icolas Haden( Fice 4resident( Ceserved Environmental Services /hris Helms( E9ecutive Fice 4resident and -rou' /EO( <iSource -as +ransmission and Storage Ieff Bu'fer( Senior Fice 4resident( #tlas Energy Cesources +erry 4egula( former /hief E9ecutive Officer( Coyal .utch Shell 8 East Cesources )anagement( 00/ .avid 4orges( /hief E9ecutive Officer( EX+ /harles Camsey( 4ioneer <atural Cesources -ary Slagel( .irector -overnment #ffairs( /<E -as /or' ?/onsol Energy@ Candy Smith( DS -overment #ffairs )anager( E99on )o"il /. #lan alker( /hief E9ecutive Officer( ;radford Energy Cay alker( Ir. ( Senior Fice 4resident Environment( Safety and Cegulatory /om'liance( Cange Cesources
;lank Come( 004 4artner2:+( 0itigation .e'artment 699286999 .ilworth 4a9on 004 4artner2:?( 0itigation .e'artment 699686992 #ssistant -eneral /ounsel for E9elon /or'2:-. Iune 2007 through Octo"er 2009
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Pennsyl)ania Cnfrastructure Cn)est!ent /uthority OP>NNJ>S6P B@/7< M>MB>7S, htt"#$$%%%&"ortal&state&"a&us$"ortal$ser)er&"t$co!!unity$aboutDus$:'2 $hi(eDboar(DofD(irectors$..1::1

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Go)ernor 1orbett /nnounces For!ation of Marcellus Shale /()isory 1o!!ission, P7 Ne%s%ire, March -, 2 11, htt"#$$%%%&"rne%s%ire&co!$ne%s-releases$go)ernor-corbett-announces-for!ation-of-!arcellus-shale-a()isory-co!!ission11?.:'':'&ht!l
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6he Marcellus Boo! $ @rigins# the story of a "rofessor, a gas (riller an( 9all Street, By *onathan <& Sil)er $ Pittsburgh PostGa4ette, March 2:, 2 12& Mr& >ngel(er has an o%nershi" sta0e in /""alachian Fracture Syste!s Cnc&, a consulting fir! that has (one %or0 on Marcellus Shale& He sai( he earne( 8, , fro! it in 2 :& htt"#$$%%%&"ost-ga4ette&co!$stories$local$!arcellusshale$the!arcellus-boo!-origins-the-story-of-a-"rofessor-a-gas-(riller-an(-%all-street-2-- :-$Hi;442/<l2?S2@ 2:+ *u(ge Michael L 3rancer, htt"#$$%%%&senator!I%hite&co!$en)iron!ental$2 :$1 : :$0rancer&P<F 2:? ibi( 2:1orbett na!es <>P tea!, by 7obert S%ift Oharrisburg bureau chiefP, *anuary 12, 2 11, 6i!es-6ribune, htt"#$$theti!estribune&co!$ne%s$corbett-na!es-(e"-tea!-1&1 --:+.Ha;441/o5y3N*6 /onnecting the .ots5 )arcellus Shale 4lay 4layers 662 of 267
*ormer -overnor +om Cidge has "een an inde'endent director for the E9elon /or'oration since 200:2::. Cidge served as Homeland Security Secretary under former 4resident -eorge ;ush from 2006 2 200:. In 200>( Cidge "ecame a 'artner in Cidge 4olicy -rou'( Harris"urg( 4ennsylvania and ashington( ../.( a "i8'artisan( full8service government affairs and issue management grou'. *rom #'ril 200: to Iuly 200>( he was 4resident and /hief E9ecutive Officer of +homas Cidge 00/. Cidge 4olicy -rou' was listed as a lo""yist for the )arcellus Shale /oalition. August 2"11J C2ormer 'ov$ Tom 6idge<s one,year contract ' to (e the &u(lic !ace o! the 7arcellus .hale Coalition has ended$ The Pitts(urgh Post,'aLette says the deal, %hich &aid 6idge and his 6idge Policy 'rou& $*"",""", e8&ired at the end o! /uly$ 5ssentially, 6idge lent his credi(ility to the grou& re&resenting most maFor shale natural gas drillers in the state and their arguments !or the economic and environmental (ene!its o! natural gas. K E>t the end o- the day# %y No( is to get gas done.F ' 1 D Michael :rancer# P> 3EP Secretary -eorge Stark( .irector of E9ternal #ffairs' 2( is /a"ot!s s'okes'erson in .imock( and has consistently maintained the water is safe. Ca(ot denies &olluting local %ater su&&lies ' '$ GAe still !eel very com!orta(le that the %ater meets sa!e drin1ing %ater standards,G said Ca(ot s&o1esman 'eorge .tar1$ GAe have a lot o! data on %ell %ater there$G Octo"er 2066 2 /a"ot contacts the 4# .E4 and informs them that Cit had met all these re9uirements' ,, and as1ed !or &ermission to sto& delivering %ater to the =imoc1 !amilies$ Act, ing =e&uty .ecretary .cott Perry a&&roved the re9uest, and Ca(ot sto&&ed &roviding %ater on =ecem(er 1$ 0n a letter to the Cham(ers(urg Pu(lic :&inion, .ecretary 7i1e >rancer de!ended the decision$ CAe %ere guided (y a legal agreement dating to the &revious adminis, tration,E he %rote$ CThe agreementUre9uired Ca(ot to satis!y s&eci!ic %ater &rovision o(liga,
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6ho!as 7i(ge, Forbes, htt"#$$%%%&forbes&co!$"rofile$tho!as-ri(ge$ 6o! 7i(ge *oins the Marcellus Shale 1oalition's Natural Gas Gol( 7ush, by Ste)e Horn, P7 9atch, /ugust 2, 2 1 ,htt"#$$%%%&"r%atch&org$no(e$:'21 ' 1 P/ <>P Secretary 3rancerLs 6o" 1 1o!!ents /bout Frac0ing, 3ee" 6a" 9ater Safe, htt"#$$0ee"ta"%atersafe&org$2 11$11$' $"a-(e"-secretary-0rancers-to"-1 -co!!ents-about-frac0ing$ ' 2 George Star0, Lin0e(Cn, htt"#$$%%%&lin0e(in&co!$in$georgestar01 ' ' >P/ !ay truc0 %ater to resi(ents near frac0ing site, By >(%ar( Mc/llister an( 6i!othy Gar(ner, 7euters, *an +, 2 12, htt"#$$%%%&reuters&co!$article$2 12$ 1$ +$us-usa-frac0ing-e"a-i(=S67>- ,1B>2 12 1 + ' , <>PLs <i!oc0 <ecision Base( @n 2 1 /gree!ent, Not 9ater 2uality, By Scott <etro%, <ec)e!ber -, 2 11, StateC!"act, htt"#$$statei!"act&n"r&org$"ennsyl)ania$2 11$12$ -$(e"s-(i!oc0-(ecision-base(-on-2 1 -agree!ent-not-%ater5uality$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 66$ of 267
tions and meet certain re9uirementsU$Ca(ot satis!ied those re9uirements, and the la%, in turn, re9uires =5P to !ollo% its o(ligations$E .E4!s decision allowing /a"ot to sto' 'roviding water to .imock residents had nothing to do with whether or not methane levels have increased or decreased at the affected water wells. K+he P/onsent Order and #greementQ didn!t reMuire .E4 to deem the water safe ' . "efore 'er8 mitting /a"ot to sto' delivering water(L e9'lained de'artment s'okeswoman Baty -resh via email. EMany o- those che%icals -ound in the /ater are -ood@grade.F ' + D Michael :rancer# P> 3EP Secretary ater deliveries "y /a"ot were sto''ed and 66 families now had no relia"le water source. ;inghamton )ayor )att Cyan' ? offered to 'rovide water to the families. #ll that would "e needed is an agreement of mutual aid with the townshi' of .imock. +he offer of water from ;inghamton would 'rovide the families with a little "reathing room while they review their o'tions and make 'lans for a more steady water source. +he ;inghamton )ayorHs offer' - to send water in city8owned trucks directly to .imock was contingent on the townshi' signing a legal agreement with ;inghamton. +he mutual aid agreement would not o"ligate .imock to 'ay for any costs( in fact the cost of water and delivery would "e the sole res'onsi"ility of the city of ;inghamton. C3inghamton 7ayor 7att 6yan said the to%nshi& needed to sign the one,&age Gmutual aidG agreement to allo% 3inghamton to send %ater directly to =imoc1 and allo% the city P3inghamtonQ to &ic1 u& the ta($ Hnder the agreement, neither &arty %ould (e lia(le !or any misha&s in shi&&ing the %aterE 7ayor 7att 6yan %as told G@ou 1ee& your nose in 3inghamton$ 0Bll give you that &lace,G 7athe% 4eenan, =imoc1 .u&ervisor, said to 6yan, dra%ing 15 seconds o! sustained a&&lause$ GAeBll %orry a(out =imoc1$G .imock +ownshi' su'ervisors voted HnoH to mutual aid' :( saying there are concerns a"out future lia"ility. /arter Coad residents say they were not sur'rised.
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<>PLs <i!oc0 <ecision Base( @n 2 1 /gree!ent, Not 9ater 2uality, By Scott <etro%, <ec)e!ber -, 2 11, StateC!"act, htt"#$$statei!"act&n"r&org$"ennsyl)ania$2 11$12$ -$(e"s-(i!oc0-(ecision-base(-on-2 1 -agree!ent-not-%ater5uality$ ' + P/ <>P Secretary 3rancerLs 6o" 1 1o!!ents /bout Frac0ing, 3ee" 6a" 9ater Safe, htt"#$$0ee"ta"%atersafe&org$2 11$11$' $"a-(e"-secretary-0rancers-to"-1 -co!!ents-about-frac0ing$ ' ? Bingha!ton offers fresh %ater to <i!oc0 6o%nshi", BNN, By Melissa 3a0are0a, <ece!ber 2, 2 11, htt"#$$centralny&ynn&co!$content$to"Dstories$.+.- '$bingha!ton-offers-fresh-%ater-to-(i!oc0-to%nshi"$ ' <i!oc0 reIects Bingha!ton %ater offerV 7yan loses final a""eal to hel" 11 fa!ilies By Ste)e 7eilly , <ece!ber ., 2 11, "ressconnects, htt"#$$%%%&"ressconnects&co!$interacti)e$article$2 1112 .$N>9S 1$112 . '?.$<i!oc0-reIects-Bingha!ton-%ater-offersee-)i(eoEnclic0Dchec0F1 ' : <i!oc0 6o%nshi" 9ants No Hel" Fro! Bingha!ton By *enna Hanchar(, 9BNG /ction Ne%s, 7ally for 9ater in <i!oc0, <ece!ber +, 2 11, htt"#$$%%%&%bng&co!$ne%s$local$<i!oc0-6o%nshi"-Says-No-6o-Hel"-Fro!-Bingha!ton-1'. ?.'.-&ht!l /onnecting the .ots5 )arcellus Shale 4lay 4layers 66& of 267
GThe To%nshi& .u&ervisors are going to do %hatever Ca(ot %ants$ They donBt care a(out us$ They care a(out the almighty dollar,G says 6ay >em(le, =imoc1 resident$ /a"ot and Enough #lready mem"ers '1 met with the .imock Su'ervisors( in what has "een characteri1ed as a KsecretL town meeting( a clear violation of 4ennsylvania!s Sunshine 0aws. .imock Su'erviors denied there was any meeting or vote regarding ;inghamton!s offer of water. Civerkee'er( Iosh *o9( )ark Cuffalo'11 and local 4ennsylvania grou's concerned a"out -as .rilling( 3oined together and organi1ed a water delivery to the 66 .imock families. +his effort was critici1ed "y Energy8In8.e'th '12?EI.@5 C2ol1s in =imoc1 have had enough$ They are, in !act, declaring C5nough 0s 5noughE and starting to s&ea1 out against the ongoing e!!ort aimed at maligning their community, aided and a(etted (y a !a%ning media inclined to (elieve anything that is said a(out natural gas &roducers as long as it ha&&ens to (e negative$E Enough #lready "ecame Enough is Enough soon after( and EI. staff "egan to make more freMuent a''earance in .imock. Enough is Enough "egan a *ace"ook 'age'1' in late Ianuary 2062( and .imock 4roud signs "egan to on lawns in town. Initally( the Environmental 4rotection #gency ?.ecem"er 2( 2066@.
$6&
?E4#@ determined the water to "e safe
KThe 5PA sent an email to =imoc1 residents in!orming them o! the agency<s !indings regarding the state o! the to%n<s drin1ing %ater su&&ly$ CAhile %e are continuing our revie%,E Community 0nvolvement Coordinator Trish Taylor %rote, Cto date, the data does not indicate that the %ell %ater Pin =imoc1Q &resents an immediate health threat to users$E That !inding su&&orted claims (y Ca(ot :il and 'as, %hich has (een sued (y =imoc1 residents$ A Fudge !rom the Pennsylvania =e&artment o! 5nvironmental Protection recently ruled that Ca(ot had satis!ied its re9uirements under the la% to &rovide &ota(le %ater to =imoc1 residents, and the com&any has announced &lans to discontinue %ater deliveries$
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<i!oc0 resi(ent accuses su"er)isors of 'secret' !eeting %ith 1abot, (rilling su""orters, by Ste)e Mc1onnell Ostaff %riterP, 6i!es-6ribune, *anuary ,, 2 12, htt"#$$theti!es-tribune&co!$ne%s$gas-(rilling$(i!oc0-resi(ent-accuses-su"er)isors-ofsecret-!eeting-%ith-cabot-(rilling-su""orters-1&12.'1'1Ha;441n?=P Ice '11 7i)er0ee"er, Mar0 7uffalo, Gaslan( <irector, *osh Fo;, Ne% Bor0ers Sen( >!ergency 9ater 7elief to P/ Frac0ing Jicti!s, <ece!ber 2, 2 11, htt"#$$%%%&ri)er0ee"er&org$ne%s-e)ents$ne%s$safeguar(-(rin0ing-%ater$!ar0-ruffalo-gaslan((irector-Iosh-fo;-ne%-yor0ers-sen(-e!ergency-%ater-relief-to-"a-frac0ing-)icti!s$ '12 >nergy-Cn-<e"th, JC<>@ <i!oc0 7esi(ents 6ell Bingha!ton Mayor >nough is >nough, htt"#$$%%%&energyin(e"th&org$tag$ti""ing-"oint$ '1' >nough is >nough Faceboo0, /s resi(ents of <i!oc0 6%"&, P/, %e ha)e ha( WenoughX %hen it co!es to the negati)e "ro"agan(a an( e;tre!ely frustrating !isinfor!ation that is circulating about our to%n& 6hat is %hy %e ha)e for!e( a grou" \ >nough /lrea(yY, htt"s#$$%%%&faceboo0&co!$>nough&Cs&>nough&<i!oc0&Prou( '1, >P/# <rin0ing 9ater in <i!oc0, P/ =nconta!inate( by Frac0ing, Lachlan Mar0ay, 6he Foun(ry, <ece!ber ., 2 11, htt"#$$blog&heritage&org$2 11$12$ .$e"a-(rin0ing-%ater-in-(i!oc0-"a-unconta!inate(-by-frac0ing$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 66: of 267
5PA<s !indings com&ort %ith 5PA Administrator Misa /ac1son<s &revious statements regarding the e!!ects I or lac1 thereo! I o! hydraulic !racturing on drin1ing %ater$ 5arlier this year, /ac1son told a H. -ouse committee that she %as Cnot a%are o! any &roven case %here the !rac1ing &rocess itsel! has a!!ected %ater$E .cott Perry, director o! the Pennsylvania =e&artment o! 5nvironmental Protection<s 3ureau o! :il and 'as 7anagement, echoed that &osition$ CThere has never (een any evidence o! !rac1ing ever causing direct contamination o! !resh ground%ater in Pennsylvania or any%here else,E Perry said in A&ril, 211$ Shortly after( the E4# changed their minds'1.5 G$$$ an in!ormation sheet &rovided to residents during visits this %ee1, the 5PA %rote that it Ghas recently received additional Ca(ot data !rom residents that merit !urther investigation$G The 5PA is no% Gconcerned a(outG &otential ga&s in %ater sam&ling and test results, the num(er o! %ater su&&lies &otentially a!!ected, i! residents that need them have alternate sources o! !resh drin1ing %ater, and i! residents have any more data to share$G CCa(ot s&o1esman, 'eorge .tar1, said the com&any %ill &rovide the 5PA %ith all the data it has collected over several years$ G0! there are data ga&s, they e8ist due to lac1 o! access, not lac1 o! trying,G s&o1esman 'eorge .tar1 said$ GCa(ot is con!ident that the %ater meets !ederal drin1ing %ater standards, and is committed to installing state,o!,the,art treatment systems and resolving this matter$G C?ictoria .%itLer, one o! the a!!ected =imoc1 residents, %as visited Thursday evening (y 5PA o!!icials$ G.omething in the %ater distur(ed them,G she said$ GThey %ere very concerned a(out %hat they %ere seeing$G CThe industry grou& 5nergy in =e&th, %hich touted the 5PABs &reliminary !inding o! =ec$ 2"1", scolded the agency 2riday !or overste&&ing its regulatory authority in a matter over %hich the state has Furisdiction$ :il and gas drilling in Pennsylvania is &rimarily regulated (y the state =e&artment o! 5nvironmental Protection$ 5nergy in =e&th s&o1esman /ohn >rohn said the 5PABs e!!orts this %ee1 are di!!erent than the earlier revie% he &raised (ecause GtheyBre no% actively going through the &rocess o! gaining ne% in!ormationG and have indicated the &ossi(ility o! ta1ing %ater tests$ GThat changes the dynamics,G he said$
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>P/# <i!oc0 %ater su""lies '!erit further in)estigation', 6i!es-6ribune, By Laura Legere, <ece!ber '1, 2 11, htt"#$$theti!es-tribune&co!$ne%s$e"a-(i!oc0-%ater-su""lies-!erit-further-in)estigation-1&12.1'',Ha;441n?=P Ice /onnecting the .ots5 )arcellus Shale 4lay 4layers 66> of 267
/a"ot denies res'onsi"ility for the 'resence of any chemicals found in the wells. E4# said the sam'ling data'1+ it reviewed turned u' ha1ardous levels of su"stances including5 o #rsenic( a cancer8causing element that may "e 'resent in elevated concentrations due to drilling; o ;arium( a silvery8white metal and a common constituent in drilling fluids that can damage the kidneys with e9tended e9'osure. o .EH4( a chemical added to 'lastics to make them fle9i"le( a 'ro"a"le human carcinogen; also used in drilling; o -lycols( including ethylene glycol( an antifree1e commonly found in drilling fluids; o )anganese( a naturally occurring su"stance that is sometimes used in drilling fluids and can damage the central nervous system if ingested. /a"ot re3ected E4#Hs characteri1ation of the sam'ling data and insisted that .imockHs drinking water meets federal standards. J/a"ot "elieves that the DS E4# has a flawed inter'retation of the data and has taken it out of conte9t; this has resulted in an unwarranted investigation "y DS E4# regarding water Muality. 4#.E4 has e9tensively investigated alleged groundwater concerns in the .imock area and concluded( using sound science( that it was safe(J /a"ot s'okesman -eorge Stark said in a statement. +he E4# targeted an additional >6 homes in .imock for water testing. /a"ot'1?( EI. and Brancer have since characteri1ed this as interference of "ig government. +his a''ears to "e an effort to divert attention from the Muestion of water contamination. EI.!s +om She'stone calls it a K/omedy of ErrorsL$67 in a "log entry and asks E>re /e to suppose this is a (asis -or a Super-und actionKF She'stone seems unaware fracking is e9em't from the Su'erfund as well as > other ma3or federal regulations5 #s of 2062( fracking is e9em't from seven ma3or federal regulations5 $69 +he /lean ater #ct and Safe .rinking ater #ct( due to the JHalli"urton loo'holeJ 'ushed through "y former Fice84resident%former Halli"urton /EO .ick /heney( e9em'ting cor'orations from revealing the chemicals used in fracking fluid;
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<i!oc0, Pennsyl)ania# >P/ 6o Sen( 9ater 6o 6o%n 9ith 6ainte( 9ells, MC1H/>L 7=BCN3/M 1$1:$12, HuffPost, htt"#$$%%%&huffington"ost&co!$2 12$ 1$1:$(i!oc0-"ennsyl)ania-e"a-DnD121?,22&ht!l '1? 1abot 5uestions >P/'s Iustification for (eli)ering %ater to <i!oc0, *anuary '1, 2 12, By <@N/L< GCLLCL/N<, 6he Patriot-Ne%s, htt"#$$%%%&"ennli)e&co!$!i(state$in(e;&ssf$2 12$ 1$cabotD5uestionsDe"asDIustifica&ht!l '1>P/Ls 1o!e(y of >rrors in <i!oc0, 2 12 February 1, by 6o! She"stone, htt"#$$ei(!arcellus&org$blog$e"as-co!e(y-oferrors-in-(i!oc0$ '1: 7enee Le%is 3osni0, S6he @il an( Gas Cn(ustryLs >;clusions an( >;e!"tions to MaIor >n)iron!ental Statutes,S @il an( Gas /ccountability ProIect, 2 ? 7e"ort&htt"#$$%%%&earth%or0saction&org$files$"ublications$Petroleu!>;e!"tions1c&"(fE "ubs$Petroleu!>;e!"tions1c&"(f /onnecting the .ots5 )arcellus Shale 4lay 4layers 66= of 267
Cesource /onservation and Cecovery #ct( which e9em'ts fracking from federal regulations 'ertaining to ha1ardous waste; Super-und la/# /hich re?uires that polluters re%ediate -or carcinogens li"e (enGene released into the en8iron%ent# except i- they co%e -ro% oil or gasS /om'rehensive Environmental Ces'onse( /om'ensation( and 0ia"ility #ct; Cesource /onservation and Cecovery #ct; <ational Environmental 4olicy #ct; and +o9ic Celease Inventory under the Emergency 4lanning and /ommunity Cight8to8Bnow #ct.
4# .E4 Secretary Brancer!s letter to the E4# makes it clear he thinks the E4# has no idea'2 what it!s talking a"out( when it comes to methane migration in .imock. K;ased on my conversations with you it was clear the E4# is really at the very early stages of its learning curve with res'ect to .imock(L he writes( calling the federal agency!s gras' of the facts( and .E4!s enforcement actions( Krudimentary.L Enough is Enough has an on8line 'etition '215 C5nough is 5nough has launched an online &etition to as1 5PA Administrator Misa /ac1son to Creign inE the Crogue 6egional :!!iceE o! the 5PA doing the investigating, and to end their involvement in =imoc1E =imoc1 residents /im 'rimsley and Ann ?an Menten are &art o! the 5nough is 5nough grou&$ Ariting !or the 5nergy in =e&th %e(site yesterday, they saidJ Ae are tired o! having our gas leases &ut on hold (since A&ril, 2"1" (ecause o! 11 !amilies that %ill not acce&t remedies handed to them I !or !ree$ The 54:H'- 0. 54:H'- cam&aign has included a &etition as1ing the =e&artment o! 5nvironmental Protection to li!t the drilling (an im&osed on Ca(ot$ That &etition %as sent to the =5P on =ecem(er 14th and %e are ho&ing it %ill not !all on dea! ears$ Ahile going door,to,door, 0 met so many &eo&le %ho have lived here !or generations and %ho %ere more than %illing to tell me ho% it really %as to gro% u& here, and ho% they !eel a(out the misin!ormation (eing s&read a(out their to%n$ Ae are here to &ass that in!ormation on to you$E #s 'reviously mentioned( the E4# had targeted >6 additional homes for water testing. ;efore the E4# was a"le to contact these families( it is rumored that EI. or Enough is Enough ?EIE@ "eat the E4# to the doors. #ccording to the rumor( EI. or EIE told home owners they had the right to refuse a water test.
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3rancer Stri0es / 1hilly 6one Cn >P/ <i!oc0 Letter, *anuary :, 2 12, By Scott <etro%, StateC!"act, htt"#$$statei!"act&n"r&org$"ennsyl)ania$2 12$ 1$ :$0rancer-stri0es-a-chilly-tone-in-e"a-(i!oc0-letter$ '21 <i!oc0 7esi(ents Petition >P/ to Sto" 6heir Cn)estigation, February 1, 2 12, Marcellus <rilling Ne%s, htt"#$$!arcellus(rilling&co!$2 12$ 2$(i!oc0-resi(ents-"etition-e"a-to-sto"-their-in)estigation$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 667 of 267
If the rumor is true( EI. or EIE were somewhat successful in discouraging a"out 20 families from acce'ting a water test. EI- /e are a(le to gather this resource and use it# /eMll clean the airS /eMll (e %ore healthy# and econo%ically healthy.F'22 D Michael :rancer# P> 3EP Secretary #lthough the re'orting on what has "een ha''ening in .imock has "een good( the media has failed to ask a few im'ortant Muestions5 6. hy is /a"ot fighting the E4# tests so hard, If the E4# tests come "ack and show the water is KsafeL( as /a"ot maintains( wouldn!t this 'ut the issue to "ed, 2. Is there something in the water that /a"ot is afraid the E4# will find, $. If the E4# does find KsomethingL( what will it mean for /a"ot or the entire <atural -as Industry in 4ennsylvania and elsewhere, &. hy is Brancer 'rotecting the <atural -as Industry instead of the Environment, .oes he have 'olitical am"itions "eyond "eing 4# .E4 Secretary,
+he <atural -as Industry and its su''orters had( in the 'ast( attem'ted to 'ortray re'orts of water contamination as "eing anomalies( yet these KanomaliesL are a''earing with more freMuency. How many homes have had their water contaminated, e really don!t know. +he 4# .E4 doesn!t track it( and many homeowners have "een gagged through non8 disclosure agreements with the <atural -as /or'orations and are una"le to reveal they are receiving water deliveries. .imock is not the only community in 4ennsylvania with Kwater 'ro"lemsL. #s long as the current administration 'refers to listen to the <atural -as industry instead of the 4eo'le of 4ennsylvania( .imock won!t "e the last. LThe ru%or that 3EP is not co%petent# not doing a good No(# is so -alse I'd lo8e to get on the pulpit and dispel it#L *)*@ Michael :rancer# P> 3EP Secretary 2ecent 3EP .e/s 88 ,utler County# P> $2&S&S ,utler County ,lac" Water T Purple Water U > 'rac"ing .ight%are U$$3oth !amilies say that Pennsylvania =e&artment o! 5nvironmental Protection (PA DEP) has told them their water troubles are just aesthetic, and has assured them that the
water is safe to drink. Requests for re-tests ha e !one unanswered, and "anet #$%nt&re said that one PA DEP re!ulator told her, You should be grateful for the fracking because theyre injecting lots of water underground, raising the level of the aquifer.
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P/ <>P Secretary 3rancerLs 6o" 1 1o!!ents /bout Frac0ing, 3ee" 6a" 9ater Safe, htt"#$$0ee"ta"%atersafe&org$2 11$11$' $"a-(e"-secretary-0rancers-to"-1 -co!!ents-about-frac0ing$ '2' ibi( '2, S@S Butler 1ounty# Blac0 9ater Q Pur"le 9ater F / Frac0ing Night!are, February 11, 2 12, by Cris Marie Bloo!, Protecting @ur 9aters, htt"#$$"rotectingour%aters&%or("ress&co!$2 12$ 2$11$sos-butler-county-blac0-%ater-"ur"le-%ater-afrac0ing-night!are$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 669 of 267
<ote5 If fracking water is raising the level of the aMuifer( doesn!t this mean fracking water is getting into the aMuifer, Iust askingNN. @@ 2eport Pennsyl8ania 3EP undercounted nu%(er o- gas@producing /ells -ro% Marcellus Shale PennsylvaniaBs =e&artment o! 5nvironmental Protection undercounted the num(er o! %ells &roducing gas325 !rom the 7arcellus .hale, !rustrating industry, environmental grou&s, and elected o!!icials, according to a ne%s&a&er re&ort$ The Pitts(urgh Post,'aLette re&orted that an analysis o! =5P data found A@8 more wells producing gas, or ready to &roduce gas, than the =5P has recorded as ever (eing drilled, and that 1+2 o! those %ells donBt even sho% u& on the stateBs 7arcellus .hale &ermit list$ GThere has (een a !rustration over the last si8 or seven months that =5P does not have in!ormation that is al%ays (eyond re&roach,G said =re% Crom&ton, chie! o! sta!! to .enate President Pro Tem /oe .carnati, 6,/e!!erson$ Senate 4resident 4ro +em'ore Iose'h Scarnati '2+ from 200082062 received A $:9(6&> from <atural -as cor'orations. @@ Clean >ir Council Pennsyl8ania 3EP !as 3ropped the ,all on 'rac"ing Pollution and 4S EP> Should Step In Clean Air Council 58ecutive =irector /ose&h :tis 7inott, 5s9$, saidJ GPennsylvania is sim&ly dro&&ing the (all on a signi!icant source o! &ollution in the state$ 2ederal and state la%s are very clear a(out re9uiring monitoring and any necessary remedial action at the site o! maFor &olluters$ 2rac1ers should not get a !ree &ass in this state, &articularly %hen their methane emissions are among the (iggest contri(utors to climate change$ :ur vie% is very sim&leJ 0! Pennsylvania =5P is going to a(andon its duties here, the H. 5PA should ste& in to &rotect the &u(lic and environment$G e wonder which environment the .E4 is really 'rotecting. +he environment on which all life de'ends 8 our air( our water and our land, Or is the .E4 'rotecting the "usiness environment, 0ist of the Harmed$2= 8 #n ever8growing list of the individuals and families that have "een harmed "y fracking ?or shale gas 'roduction@ in the DS.
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7e"ort# Pennsyl)ania <>P un(ercounte( nu!ber of gas-"ro(ucing %ells fro! Marcellus Shale, *anuary :, 2 12, By 6he /ssociate( Press, htt"#$$%%%&"ennli)e&co!$!i(state$in(e;&ssf$2 12$ 1$re"ortD"ennsyl)aniaD(e"Dun(erc&ht!l '2+ *ose"h Scarnati, MarcellusMoney&org, htt"#$$!arcellus!oney&org$can(i(ate$scarnati-Iose"h-b-iii, '2? List of the Har!e(, Pennsyl)ania /lliance for 1lean 9ater an( /ir, htt"#$$"ennsyl)aniaallianceforclean%ateran(air&%or("ress&co!$the-list$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 620 of 267
Chapter ; Pieces o- Sil8er D >ct 1* Everyone thinks our elected officials are under some influence of Ks'ecial interestL money. It!s very a''arent in 4ennsylvania with #ct 6$ 2 +he )arcellus Shale'2- now "eing the law of the commonwealth. The Hotes '2: +he 4# House vote was 606 OE#S( 90 <#OS. +he 4# Senate vote was $6 OE#S and 69 <#OS. Oes( it was all along 'arty lines. On *e". 6&( 2062( without cameras( re'orters or other fanfare 2 -ov. +om /or"ett Muietly signed #/+ 6$. #/+ 6$ dangles a little "it of money to each community in the form of an Kim'act feeL 'aid "y the natural gas cor'orations. In e9change for $0 'ieces of silver( communities will no longer "e a"le to set 1oning or other conditions on where or how the natural gas cor'orations may drill( frack( or otherwise industriali1e the community. +he Sierra /lu" has 'u"lished K+he 60 +o' )yths a"out 4ennsylvania!s +he )ad Cush to *rack #ctL $$02 read it. In his article( K hy I Foted <O on the )arcellus Shale ;illL$$6( State Ce'. Iesse &>th district stated5 hite of the
CThis (ill is loaded %ith (latant givea%ays !or the natural gas industry$ There<s money !or a C-ousing A!!orda(ility Programs,E %hich means %e %ill (e &aying !or tem&orary housing !or %or1ers !rom out o! state %ho %ill no longer (e staying in our hotels$ There are su(sidies !or natural gas vehicle &rograms the industry a&&arently couldn<t a!!ord to do %ithout a government handout$ And there is a massive direct cash givea%ay intended to go to the .hell :il Cor&$, %hich had a &ro!it o! more than $2" (illion in 2"1"$ 0! you %ere u&set a(out the &otential !unding o! the Arlen .&ecter Mi(rary (%hich Cor(ett a&&roved last %ee1 , you have to (e losing your mind over a deal to su(sidiLe a maFor !oreign oil com&any %ith your ta8 dollars$E -e continuesJ C.u&&orters o! -ouse 3ill 1*5" %ill tell you the la% is a com&romise$ The only com&romise could have (een (et%een the lo((yists !or the natural gas industry
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@CL /N< G/S O.- P/&1&S&P - @MNCB=S /M>N<M>N6S, /ct of Feb& 1,, 2 12, P&L& -?, No& 1' 1l& .-& 2 12 1'ua, Session of 2 12, No& 2 12-1', HB 1:. , htt"#$$%%%&legis&state&"a&us$9= 1$LC$LC$=S$H6M$2 12$ $ 1'&&H6M '2: 7egular Session 2 11-2 12 House Bill 1:. , htt"#$$%%%&legis&state&"a&us$cf(ocs$billinfo$billD)otes&cf!E syearF2 11Asin(F Abo(yFHAty"eFBAbnF1:. '' 6he 6o" 6en Myths about Pennsyl)aniaLs S6he Ma( 7ush to Frac 0 /ctS O/ct 1' of 2 12P, 6he Biggest Gas Cn(ustry Gi)e/%ay Bet, Sierra 1lub, htt"#$$%%%&sierraclub&org$"ressroo!$(o%nloa(s$Frac0ingMythbustersFactSheet&"(f ''1 9hy C Jote( N@ on the Marcellus Shale Bill, State 7e"& *esse 9hite calls House Bill 1:. 'a terrible la%&', By *esse 9hite, State 7e"resentati)e, ,+th <istrict,February 1., 2 12, 1anon-McMillan Patch, htt"#$$canon!c!illan&"atch&co!$articles$%hy-i-)ote(-no-on-the-!arcellus-shale-bill /onnecting the .ots5 )arcellus Shale 4lay 4layers 626 of 267
and the &eo&le %ho agreed %ith them already, (ecause they %ere the only ones in the room negotiating this 174,&age (ill, %hich %as dra!ted in secret and almost immediately &ut u& !or a vote$ -ouse 3ill 1*5" %asn<t a com&romiseR it %as a (ac1 room deal made (y a small grou& o! &eo&le %hose &rimary concern %as the &ro!it margin !or the energy industry$E The ,ac"roo% On Ianuary 62( 2062( letter was sent to Ce'resentatives Smith( +ur1ai and Ellis ''2 on "ehalf of Bathryn W. Bla"er( 4resident( )arcellus Shale /oalition and Ste'hanie /atarino issman( E9ecutive .irector( #ssociated 4etroleum Industries of 4ennsylvania. # co'y of the letter was also sent to all 4ennsylvania House )em"ers in the 4# 0egislator and to -ov. +om /or"ett. +he letter was accom'anied with & 'ages of suggestions. #ll "ut $ of the KsuggestionsL found their way into the final version. W!& are :la(er and Wiss%anK #4I is the #merican 4etroleum Institute '''5 largest D.S trade association for the oil and natural gas industry. It claims to re'resent a"out &00 cor'orations involved in 'roduction( refinement( distri"ution( and many other as'ects of the 'etroleum industry. #4I is also 'art of the FO+E & E<EC-O'',( an industry and cor'oration funded ad cam'aign. IoteA/nergy is a &roFect o! the American Petroleum 0nstitute re&resenting more than 4*" oil and natural gas com&anies, leaders o! a technology,driven industry that su&&lies most o! America<s energy, su&&orts *$2 million H$.$ Fo(s and 7$7 &ercent o! the H$.$ economy, delivers more than $+5 million a day in revenue to our government, and, since 2""", has invested more than $2 trillion in H$.$ ca&ital &roFects to advance all !orms o! energy, including alternatives. Marcellus Shale Coalition AMSCB''. 2ounded in 2""+, the 7arcellus .hale Coalition (7.C is an organiLation committed to the res&onsi(le develo&ment o! natural gas !rom the 7arcellus .hale geological !ormation and the enhancement o! the region<s economy that can (e realiLed (y this clean,(urning energy source$ :athryn :la(er **7 Executi8e 3irector o- the Marcellus Shale Coalition AMSCB Prior to Foining the 7.C, 7s$ >la(er %as 58ecutive ?ice President !or Com&etitiveness at the Allegheny Con!erence on Community =evelo&ment and the 58ecutive =irector o! the Pennsylvania 5conomy Meague$
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3laber-9iss!an /PC-MS1 Letter htt"#$$ia? - :&us&archi)e&org$2+$ite!s$MarcellusShale1oalition/ssociate(Petroleu!Cn(ustries@fPennsyl)ania$MS1/PCLet ter6oS!ith6ur4ai>llis 1-12-12&"(f ''' /!erican Petroleu! Cnstitute O/PCP, htt"#$$a"i-ec&a"i&org$ '', Jote , >nergy, htt"#$$)ote,energy&org$about$ ''. Marcellus Shale 1oalition, htt"#$$!arcelluscoalition&org$about$ ''+ 3athryn 3laber, Mary%oo( =ni)ersity, Marcellus Shale Foru!, htt"#$$%%%&!ary%oo(&e(u$green$series$"resenters$0laber&ht!l /onnecting the .ots5 )arcellus Shale 4lay 4layers 622 of 267
Through the 1**"s, 7s$ >la(er %or1ed in the environmental consulting (usiness in mergers and ac9uisitions, environmental management systems, air and %ater 9uality &roFects, 3ro%n!ields redevelo&ment, accidental release &re&aredness, and other environmental initiatives$ .he is a mem(er o! the Common%ealth o! PennsylvaniaBs Air Ouality Technical Advisory Committee$ Environmental consulting "usiness,$$= hich one, Through the 1**"s, >athryn >la(er %or1ed !or the international environmental, health and sa!ety consulting !irm, 5nvironmental 6esources 7anagement, 0nc$ (567 , !irst at the com&any<s head9uarters in Philadel&hia, then in her native Pitts(urgh$ -er client %or1 consisted &rimarily o! mergers and ac9uisitions, environmental management systems, air and %ater 9uality &roFects, and other !acilities< engineering engagements$ .he su&ervised multinational &roFects, &rimarily !or 2ortune 1""" com&anies, involving sta!! !rom across the com&any<s 13" o!!ices$ 0n south%estern Pennsylvania, she %or1ed %ith regional com&anies on air 9uality com&liance, 3ro%n!ields redevelo&ment, accidental release &re&aredness, and a myriad o! other environmental initiatives$ =uring her last three years %ith the !irm, 7s$ >la(er managed the Pitts(urgh regional o!!ice, res&onsi(le !or all as&ects o! the &ractice including (usiness develo&ment, &roduct delivery, sta!!ing, and !inancial management$ Environmental Cesources )anagement( Inc. ?EC)@ ''As a leading glo(al &rovider o! environmental, health, sa!ety, ris1, and social consulting services, 567 has sustaina(ility at the heart o! (oth our services and ho% %e o&erate our (usiness$ Ae em&loy over 4,""" &eo&le %ith 14" o!!ices in 4" countries %orld%ide$ 2or over 4" years %e have (een %or1ing %ith clients around the %orld and in diverse industry sectors to hel& them to understand and manage their environmental, health, sa!ety, ris1 and social im&acts$ The 1ey sectors %e serve include :il V 'as, 7ining, Po%er, and 7anu!acturing, Chemical and Pharmaceutical$ Stephanie Catarino Wiss%an **< Executi8e 3irector o- >ssociated Petroleu% Industries o- Pennsyl8ania A>PI@P>B# a di8ision o- the >%erican Petroleu% InstituteA>PIB. *ormer .irector( -overnment #ffairs$&0 5 .te&hanie Catarino Aissman Foined the Pennsylvania Cham(er o! 3usiness and 0ndustry as director o! 'overnment A!!airs in :cto(er 2""7$ .te&hanie graduated !rom Penn .tate Hniversity %ith a (achelor<s degree in &olitical science$ Aith nearly 15 years o! e8&erience in government relations, .te&hanie &rimarily serves as the PA Cham(er<s energy and environmental lo((yist, %ith additional res&onsi(ilities including general (usiness advocacy, trans&ortation and technology$
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Pittsburgh 1he!ical <ay, 2 12 S"ea0er Presentations 3athryn 3laber - SMarcellus A =tica Shale Gas$Li5ui(sS, htt"#$$%%%&"ittche!(ay&co!$s"ea0ers&ht!l ''>n)iron!ental 7esources Manag!ent, Cnc O>7MP, htt"#$$%%%&er!&co!$/bout-=s$Business-Cnfor!ation$ '': /!erican Petroleu! Cnstitute, /PC# /nnounces Ste"hanie 1atarino 9iss!an as >;ecuti)e <irector, /PC-P/, htt"#$$%%%&a"i&org$Ne%s-an(-Me(ia$Ne%s$Ne%sCte!s$2 11$se"t-2 11$a"i-announces-ste"hanie-catarino&as"; ', Moo!info, Ste"hanie 1atarino 9iss!an, htt"#$$%%%&4oo!info&co!$HYsearch$"rofile$"ersonE "ersonC(F2.2-1-. 'Atargeti(F"rofile /onnecting the .ots5 )arcellus Shale 4lay 4layers 62$ of 267
Prior to Foining the PA Cham(er, .te&hanie served as manager o! 'overnment A!!airs !or 5m(ar9 (!ormerly .&rint $ -ighlighting her career at 5m(ar9 %as her %or1 on Act 1+3 o! 2""4, commonly re!erred to as Cha&ter 3"$ .te&hanie &layed a maFor role in &assing this landmar1 telecommunications alternative regulation legislation, %hich has (ecome a model !or other states con!ronting telecommunications re!orm$ As a registered lobbyist, .te&hanie has also held &ositions at Pennsylvanians !or 5!!ective 'overnment and Associated PA Constructors$ .he is a mem(er o! Aomen in Pennsylvania 'overnment 6elations and serves on the Pennsylvania -igh%ay 0n!ormation Association<s (P-0A 3oard o! =irectors$ 'overnor Cor(ett Announces 6ecent 4ominations, A&&ointments ',1 -A660.3H6', Pa$, =ec$ 12, 2"11 #P64e%s%ire,H.4e%s%ire# ,, 'overnor Tom Cor(ett today announced the !ollo%ing recent nominations and a&&ointmentsJ .te&hanie Catarino Aissman, 7echanics(urg , Hnderground .torage Tan1 0ndemni!ication 3oard The Pieces o- Sil8er 4erha's it!s a misnomer to refer to cam'aign donations from the <atural -as Industries as $0 'ieces of Silver as according to )arcellusmoney.org ',2( the <atural -as Industries have KdonatedL A=(9&:(9$$ to 4ennsylvania candidates and 4olitical #ction /ommittees ?4#/s@ from 2000 through 2062.
.onations from the <atural -as Industry and its associates dou"led during the 200982060 election cycle. In 200=82007 donations totaled A6(00&(=:=; "y the end of 2060 A2(>07(67= had found its way into cam'aign coffers.
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Go)ernor 1orbett /nnounces 7ecent No!inations, /""oint!ents, P7 Ne%s%ire, htt"#$$%%%&"rne%s%ire&co!$ne%sreleases$go)ernor-corbett-announces-recent-no!inations-a""oint!ents-1'.,'- ?'&ht!l ',2 Marcellus!oney&org, htt"#$$!arcellus!oney&org$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 62& of 267
+he data in this chart was taken from )arcellusmoney.org',' s'readsheet. +his covers donations made "etween 2000 thru 2060. I have "roken out the totals "y year and noted the Election year info. $o8. To% Cor(ett A2B D Pennsyl8ania ;io5 /or"ett was the #ttorney -eneral of 4ennsylvania from 699: to 699=; he was a''ointed "y -overnor +om Cidge to fill the une9'ired term of Ernie 4reate.
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Marcellus!oney&org, htt"#$$!arcellus!oney&org$ 62: of 267
#s a condition of his Senate confirmation( Senate .emocrats reMuired him to 'ledge that he would not run for re8election in 699>. +his is a common 'ractice in 4ennsylvania for a''ointments to elected offices. /or"ett left office in 699= and again went into the 'rivate sector( first as general counsel for aste )anagement( Inc.$&&( then o'ening his own 'ractice. In 200&( +om /or"ett won the election for 4ennsylvania #ttorney -eneral. His 200& cam'aign funds were fattened a "it( "y a A&:0(000 check from #u"rey )c/lendon( /EO of /hesa'eake Energy.
+he 4hiladel'hia InMuirer writes5 ',. CThe $45",""" in cam&aign chec1s that energy mogul Au(rey 7cClendon %rote that !all hel&ed elect a man he said heBd never even met , a relatively o(scure ':P candidate !or Pennsylvania attorney general, Tom Cor(ett$ That investment argua(ly changed not Fust the history (ut also the &olitical direction o! the state$ The in!lu8 o! cash hel&ed Cor(ett narro%ly %in the closest attorney generalBs race in Pennsylvania history and &ro&elled him to%ard the governorBs mansion, %here
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/""alachian 7egional 1o!!ission, Pennsyl)ania Go)ernor 6o! 1orbett, htt"#$$%%%&arc&go)$about$Go)ernorofPennsyl)ania&as" ',. Ho% a natural-gas tycoon ta""e( into 1orbett, *une 2:, 2 11, By 9CLL B=N1H, Phila(el"hia Cn5uirer, htt"#$$articles&"hilly&co!$2 11- +-2:$ne%s$2:?1?,-1D1Dcorbett-ca!"aign-to!-corbett-!arcellus-shale /onnecting the .ots5 )arcellus Shale 4lay 4layers 62> of 267
he has no% &ledged to turn the >eystone .tate into Gthe Te8as o! the natural,gas (oom$G In the 200982060 cam'aign cycle( /hesa'eake Energy and its em'loyees donated A7=(6:0 to candidates in 4ennsylvania. .avid S'igelmyer( /hesa'eake!s Fice 4resident for -overnment Celations was given a seat on the )arcellus Shale #dvisory /ommission in 2060.
62= of 267
<ote5 )r. S'igelmyer was asked to resign from the )arcellus Shale #dvisory /ommission in #'ril 2066 following a re'ort on gas drilling violations $&>and a gas well "lowout in 0eroy( 4a.',? /hesa'eake racked u' 6$2 violations in 2060( 'utting it in the U$ s'ot. /hief Oil G -as led the violations 'ack with 6=& violations. /hesa'eake Energy dis'utes this account5',CChesa&ea1e s&o1esman 7att .he&&ard dis&utes the account o! the &eo&le Pennsylvania Pu(lic 6adio s&o1e %ith, %ho come !rom (oth inside and out o! state government, emailing, CP.&igelmyerQ ste&&ed aside !rom the 7arcellus Commission &rior to the !irst meeting to !ocus on Chesa&ea1e o&erations and his duties as vice chair o! the 7arcellus .hale Coalition$E Cor(ett<s o!!ice did not return calls !or comment$E +o my knowledge( S'igelmyer!s seat has not "een filled "y anyone.
-ov. /or"ett has "een e9tremely su''ortive of natural gas drilling; he "elieves it will "ring 3o"s and millions of dollars to 4ennsylvania. CPennsylvania is (lessed %ith remar1a(le resources,34* innovation and a legendary %or1 ethic$ 5ven in its in!ancy, the 7arcellus .hale is (eginning to have a great economic im&act on Pennsylvania$ At a time %hen the national and state unem&loyment rates are rising and our country is slo%ly trying to regain its traction !rom the recession, the 7arcellus .hale is %or1ing to create Fo(s and millions o! dollars in royalty !ees and local and state ta8 revenues$ The common%ealth currently !inds itsel! at a com&etitive
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1orbett as0e( 1hesa"ea0e e;ecuti)e to 5uit Marcellus Shale 1o!!ission, by Scott <etro%, StateC!"act , /"ril 2?, 2 11, htt"#$$%%%&%itf&org$state-house-soun(-bites$2 11$ ,$sources-corbett-as0e(-chesa"ea0e-e;ecuti)e-to-5uit-!arcellus-shaleco!!ission&"h" ',? Gas %ell blo%out s"ills frac0 flui(s onto far!, strea!s in Bra(for( 1ounty, By Laura Legere, /"ril 21, 2 11, 1iti4ens Joice, htt"#$$citi4ens)oice&co!$ne%s$(rilling$gas-%ell-blo%out-s"ills-frac0-flui(s-onto-far!-strea!s-in-bra(for(-county1&11'.,-2 ',1orbett as0e( 1hesa"ea0e e;ecuti)e to 5uit Marcellus Shale 1o!!ission, by Scott <etro%, StateC!"act , /"ril 2?, 2 11, htt"#$$%%%&%itf&org$state-house-soun(-bites$2 11$ ,$sources-corbett-as0e(-chesa"ea0e-e;ecuti)e-to-5uit-!arcellus-shaleco!!ission&"h" ',: 6o! 1orbett, Go)ernor - 6he Cssues, htt"#$$%%%&to!corbettforgo)ernor&co!$issues$fa5$H? /onnecting the .ots5 )arcellus Shale 4lay 4layers 627 of 267
advantage %hen com&ared to other states %ith similar gas shale &lays$ Ca&ital investment to develo& PennsylvaniaBs 7arcellus .hale is increasing ra&idly, and, according to an economic im&act study released (y Penn .tate Hniversity in 2""*, industry activity is e8&ected to generate over $)"" million in ta8 revenues to the Common%ealth during 2"1" %ithout a severance ta8$ Tom Cor(ett (elieves that a &unitive ta8 on the industry at this stage %ould reduce ca&ital investment in the common%ealth and reduce the &otential !or ne% Fo(s, ta8 revenues and other economic (ene!its associated %ith develo&ment o! the 7arcellus .hale$ 0n addition, Tom Cor(ett %ould su&&ort dedicating a &ortion o! the royalty !ees to communities that are (eing im&acted (y drilling$E In 2066( -ov. /or"ettHs 'ro'osed "udget included A2 "illion in cuts to education and reduces aid to colleges and universities "y :0 'ercent. +he "udget 'assed with only a 69 'ercent cho' to the funding of 4itt( 4enn State( +em'le and 0incoln. +hose concerned with the Muality and im'ortance of education 'rotested the cuts. -ov. /or"ett told them 4ennsylvania universities should consider drilling for natural gas "elow cam'us to hel' solve their financial 'ro"lems. ;y Se'tem"er 2062( a "ill authori1ing fracking on state school cam'uses 'assed. Pennsyl8ania State Senate passed Senate ,ill *765 Short +itle5 #n #ct 'roviding for indigenous mineral resource develo'ment; and im'osing 'owers and duties on the .e'artment of -eneral Services and the State System of Higher Education. 4rime S'onsor5 Senator .. HI+E 0ast #ction5 Signed in Senate( Se't. 2:( 2062 +e9t of Senate ;ill $>=$:0 ?e9cer't@ Section $. .evelo'ment of resources on State8owned land. ?a@ #uthority.88+he de'artment has the following 'owers5 ?6@ +o make and e9ecute contracts or leases in the name of the /ommonwealth for the %ining or re%o8al o- 8alua(le coal# oil# natural gas# coal (ed %ethane and li%estone which may "e found in or "eneath State8owned land and to convey /ommonwealth rights to coal( oil( natural gas( coal "ed methane and limestone. ?2@ +o grant a right8of8way through State8owned land to any individual or cor'oration that a''lies if the de'artment determines that the grant will not so adversely affect the land as to interfere with its usual and orderly administration. In addition to cuts in education5 The =e&artment o! 5nvironmental Protection %ill see !unding cut (y 7$+ &ercent or $1"$5 millionR and the =e&artment o! Conservation 351 and 4atural 6esources< (udget is decreased (y a(out $2$5 million or 4$) &ercent .
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7egular Session 2 11-2 12, Senate Bill '+?, htt"#$$%%%&legis&state&"a&us$cf(ocs$billinfo$billinfo&cf!E syearF2 11Asin(F Abo(yFSAty"eFBAbnF'+? '.1 1orbettLs Bu(get 9oul( 1ut <>P S"en(ing, February -, 2 12, By Scott <etro% htt"s#$$statei!"act&n"r&org$"ennsyl)ania$2 12$ 2$ -$corbetts-bu(get-%oul(-cut-(e"-s"en(ing$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 629 of 267
Secretary Brancer commented on the 'ro'osed cuts5 '.2 =e&artment o! 5nvironmental Protection .ecretary 7ichael >rancer too1 his turn (e!ore the state .enate<s A&&ro&riations Committee yesterday$ =iscussing his de&artment<s (udget, >rancer said =5P has the sta!! it needs to ins&ect Pennsylvania<s 7arcellus .hale %ells$ That<s des&ite 'overnor Cor(ett<s &ro&osal to trim the de&artment<s (udget (y more than $1" million. e seem to have a slight 'ro"lem here. Education is "eing cut( .E4 is "eing cut( and with #/+ 6$ rolling out the red car'et for gas drilling everywhere( the need for regulators is a 'ressing concern. 4atriot8<ews( "y .onald -illiland asks5
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Ahat ha&&ens %hen the !o8 (uilds the hen houseD The drilling industry hel&ed get some o! the most in!luential la%ma1ers elected %ith lavish donations to their cam&aigns$ 0t &aid millions to lo((yists to in!luence legislation, and it has hired many o! the e8&erienced regulators a%ay !rom &u(lic service$ 4o% the industry %ill &ay to train the &eo&le %ho set &olicy and en!orce it$ 588on7o(il and '5 %ill (e investing $1 million each to esta(lish ne% training &rograms at three universities, including Penn .tate, Cto ensure that regulators and &olicyma1ers have access to the latest technological and o&erational e8&ertise to assist in their oversight o! shale develo&ment,E according to a Penn .tate &ress release issued Thursday$ Aith money !rom the drilling industry, Penn .tate<s 7arcellus Center !or :utreach and 6esearch %ill o!!er a ne% C.hale 'as 6egulators Training ProgramE to &rovide C(est, &ractices trainingE to &eo&le %ho oversee the drilling industry$ The center<s co,director, Tom 7ur&hy, said in a &ress release the &rogram %ill Co!!er ne% regulators the chance to learn the latest science,(ased conce&ts related to geology, &etroleum technology and environmental 9uality$E Hntil no%, 7ur&hy had maintained that the 7arcellus Center o&erated !ree and clear o! industry !unding$ Ces'onding to com'laints "y the <atural -as cor'orations that 'ermit a''roval was taking too
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3rancer# <>P Has >;"an(e( Cts Cns"ection Staff, February 2', 2 12 , By Scott <etro%, htt"#$$statei!"act&n"r&org$"ennsyl)ania$2 12$ 2$2'$0rancer-(e"-has-e;"an(e(-its-ins"ection-staff$ '.' Gas (rilling in(ustry "aying Penn State to train those %ho regulate the gas (rilling in(ustry, March -, 2 12, By <@N/L< GCLLCL/N<, 6he Patriot-Ne%s, htt"#$$%%%&"ennli)e&co!$!i(state$in(e;&ssf$2 12$ '$gasD(rillingDin(ustryD"ayingD"&ht!l /onnecting the .ots5 )arcellus Shale 4lay 4layers 6$0 of 267
long. /or"ett issued an e9ecutive order descri"ed as K4ermit .ecision -uaranteeL$:&. 'oes Pa. state per%it order threatens en8iron%ent# ,y :e8in ,egos 58cer&tJ Cor(ett said last month that many grou&s have com&lained a(out ho% long it ta1es to a&&rove &ermits$ G:ne o! the (iggest com&laints 0 have received over and over again is the time it ta1es !or (usinesses, non&ro!it organiLations and local governments to %or1 through the &ermitting &rocess,G Cor(ett said in a statement$ G0 &romised to correct this$G 58cer&tJ Mast year, The Associated Press re&orted that state environmental regulators said they s&end as little as 35 minutes revie%ing355 each o! the thousands o! a&&lications !or natural gas %ell &ermits$ 5ven then, the regulators said, they didnBt s&end e8tra time !or re9uests to drill near high,9uality streams and rivers even though the %ater%ays have s&ecial state and !ederal &rotections$ >unL said the em&hasis on s&eed might ma1e sense !or an agency that &romotes (usiness develo&ment (ut not !or the =5P
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2 12-11 - Per!it <ecision Guarantee for the <e"art!ent of >n)iron!ental Protection, htt"#$$%%%&"ortal&state&"a&us$"ortal$ser)er&"tE o"enF.12AobIC<F? -APageC<F22,+ 2A!o(eF2Acontenti(Fhtt"#$$"ubcontent&state&"a&us$"ublishe(content$"ublish$co"Dg eneralDgo)ern!entDo"erations$oa$oaD"ortal$o!($"Dan(D"$e;ecuti)eDor(ers$2 1 D2 1:$ite!s$2 12D11&ht!l '.. /P# Pennsyl)ania is a""ro)ing gas (rilling "er!its %ith scant re)ie%, By Michael 7ubin0a!, /ssociate( Press, htt"#$$usato(ay' &usato(ay&co!$!oney$in(ustries$energy$2 11- ,-1'-"a-gas-(rilling-"er!its&ht! /onnecting the .ots5 )arcellus Shale 4lay 4layers 6$6 of 267
Chapter < Marcellus Shale Coalition In the =o((y +he )arcellus Shale /oalition ?)S/@ is an industry coalition made u' of 299 natural gas and related cor'orations and "usinesses.$:> Its function is to 'romote natural gas and )S/ does this through 'u"lic relations and lo""ying at the state and federal levels. )S/ descri"es itself $:=as5 +he )arcellus Shale /oalition ?)S/@ works with e9'loration and 'roduction( midstream( and su''ly chain 'artners in the #''alachian ;asin and across the country to address issues regarding the 'roduction of clean( 3o"8creating( #merican natural gas from the )arcellus and Dtica Shale 'lays. e 'rovide in8de'th information to 'olicymakers( regulators( media( and other 'u"lic stakeholders on the 'ositive im'acts res'onsi"le natural gas 'roduction is having on families( "usinesses( and communities across the region. Sourcewatch descri"es )S/$:7 as5 +he )arcellus Shale /oalition is an industry coalition that fights against environmental 'rotections sought "y citi1ens facing the 'ros'ect of methane gas drilling near their water su''lies. It is engaged in an e9tensive state and federal lo""ying cam'aign to 'rotect the financial interests of the cor'orate mem"ers of the coalition. Is )S/ a hel'ful educator which sim'ly 'rovides K'rovide in8de'th information to 'olicymakers( regulators( media( and other 'u"lic stakeholders on the 'ositive im'acts res'onsi"le natural gas 'roduction is having on families( "usinesses( and communities across the region.L, Or are they Kan industry coalition that fights against environmental 'rotections sought "y citi1ens facing the 'ros'ect of methane gas drilling near their water su''lies. It is engaged in an e9tensive state and federal lo""ying cam'aign to 'rotect the financial interests of the cor'orate mem"ers of the coalition,L What the Marcellus Shale Coalition Says )arcellus Shale /oalition was founded in 2007 and at that time "oasted a gas industry mem"ershi' of a''ro9imately 9: cor'orations. It has since grown to nearly $00 mem"ers. +here are && cor'orations listed as ;oard )em"ers$:9. 0eading )S/ as 4resident is Bathryn Bla"er( Bathryn Bla"er serves as the )arcellus Shale /oalition!s first 4resident.$>0 In this role( on "ehalf of the )S/ mem"er com'anies( she works closely with elected leaders( regulators and the civic community to reali1e the res'onsi"le develo'ment of natural gas from the )arcellus and Dtica Shale geological formations and the enhancement of the region!s economy that can "e reali1ed "y this clean8"urning #merican energy source.
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Marcellus Shale 1oalition Me!bers, htt"#$$!arcelluscoalition&org$about$associate-!e!bers$ Marcellus Shale 1oalition /bout, htt"#$$!arcelluscoalition&org$about$ '.Marcellus Shale 1oalition, Source%atch, htt"#$$%%%&source%atch&org$in(e;&"h"EtitleFMarcellusDShaleD1oalition '.: Marcellus Shale 1oalition, Boar( Me!bers htt"#$$!arcelluscoalition&org$about$full-!e!bers$ '+ Marcellus Shale 1oalition, /bout Presi(ent, 3athryn M& 3laber, htt"#$$!arcelluscoalition&org$about$"resi(ent$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 6$2 of 267
4rior to 3oining the )S/( Batie served as E9ecutive Fice 4resident for /om'etitiveness at the #llegheny /onference on /ommunity .evelo'ment and as the E9ecutive .irector of the 4ennsylvania Economy 0eague. # lifelong 4ennsylvanian( she earned her undergraduate degree in environmental science from ;ucknell Dniversity and her )asters in ;usiness #dministration from /arnegie )ellon Dniversity. She received the Enter'rise #ward for Entre'reneurshi' at /arnegie )ellon for her "usiness 'lan for an innovative environmental re'orting and metrics com'any. She was elected "y her 'eers as 4resident in the school!s archety'ical )anagement -ame. :atie /as appointed (y Pa. 3ept. o- En8iron%ental Protection Sec. Mc$inty and recon-ir%ed (y Sec. !anger to Pennsyl8aniaMs >ir Puality Technical >d8isory Co%%ittee On the E9ecutive ;oard $>6 there are re'resentatives from /hesa'eake Energy /or'oration( /<E -as /om'any 00/ ?*ormerly /onsol@( Cange Cesources /or'oration( )ark est Energy 4artners 0.4.( illiams. +alisman Energy DS#( EE/O Cesources ?4#@ 00/( 4ennsylvania -eneral Energy( E+O Energy( /hief Oil G -as( and EO- Cesources. The MSC announced a ne/ leadership tea% -or )+1* Marcellus Shale Coalition na%es ne/ exec (oard *7)V Written (y =aura &lson V 3ece%(er 7# )+1) 58cer&tJ Pitts(urgh, Pa$ I Today, the 7arcellus .hale Coalition (7.C announced that Chesa&ea1e 5nergy Cor&oration vice &resident o! government a!!airs =ave .&igelmyer %as re,elected as the organiLationBs chair$ 6andy Al(ert (Chie! :&erating :!!icer, 'as :&erations, C:4.:M 5nergy , .cott 6oy (?ice President, 'overnment and 6egulatory A!!airs, 6ange 6esources Cor&oration and /ohn 7ollen1o&! (.enior ?ice President and Chie! :&erating :!!icer, 7ar1Aest 5nergy Partners %ere re,elected as vice chair, treasurer and secretary, res&ectively$ 0n addition to the o!!icers, the 7.C announced that the !ollo%ing individuals %ill serve as 2"13 e8ecutive (oard mem(ersJ X =ave Cannon, =e&uty 'eneral Counsel, 'overnment and 5nvironmental A!!airs, 5OT Cor&oration X /e!! >u&!er, .enior Advisor, Policy and 'overnment A!!airs, Chevron X -eather Mam&arter, ?ice President, Megal 5NC: 6esources (PA , MMC X Craig 7ayer, 'eneral Counsel, Pennsylvania 'eneral 5nergy X 'ary .mith, ?ice President and 'eneral 7anager, 5:' 6esources X /ac1 Ailliams, President, NT: 5nergy The !ollo%ing mem(ers o! the 3oard o! =irectors %ere elected (y their &eers to serve as at,large mem(ers o! the 58ecutive 3oardJ
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Marcellus Shale 1oalition, >;ecuti)e Boar( htt"#$$!arcelluscoalition&org$about$e;ecuti)e-co!!ittee$ Marcellus Shale 1oalition na!es ne% e;ec boar(, Pittsburgh Post Ga4ette, 9ritten by Laura @lson, <ece!ber +, 2 12, htt"#$$"i"eline&"ost-ga4ette&co!$ne%s$archi)es$2,:,'-!arcellus-shale-coalition-na!es-ne%-e;ec-boar( /onnecting the .ots5 )arcellus Shale 4lay 4layers 6$$ of 267
X /ohn 3onn, President , 4i.ource 7idstream .ervices, 4i.ource 'as Transmission V .torage X Terry 3ossert, .enior ?ice President I 5nvironment V 6egulatory A!!airs, Chie! :il V 'as
'igure 1 Screen Print MSC $uiding Principles*7*
On the )S/ JHel'ful Cesources$>&J link 'age is a list of 22 sites Jthat will hel' act as resources to hel' further your learning and understanding of what the coalition is a"out and some of the ty'ical 'rocesses.J +he resources include5 \ #merica!s <atural -as #lliance ?#<-#@ \ #merican -as #ssociation ?#-#@ \ #merican 4etroleum Institute ?#4I@ \ Inde'endent 4etroleum #ssociation of #merica ?I4##@ \ Energy In .e'th ?EI.@
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Marcellus Shale 1oalition, Gui(ing Princi"les, htt"#$$!arcelluscoalition&org$about$gui(ing-"rinci"les$ Marcellus Shale 1oalition, Hel"ful 7esources, htt"#$$!arcelluscoalition&org$about$hel"ful-resources$ 6$& of 267
\ Interstate <atural -as #ssociation of #merica ?I<-##@ \ <atural -as Fehicles for #merica ?<-F#merica@ )S/ launched the )arcellus on )ain Street$>: which is a "usiness directory is designed to su''ort res'onsi"le Shale -as .evelo'ment "y connecting the <atural -as Industry to local vendors( su''liers( and services. It features information related to OCB80IFE840#O and claims to serve the )arcellus and Dtica /ommunities. +he 'hotos for 0IFE and 40#O do not show drill rigs or com'ressor stations in the "ackground which many of us are seeing as we travel across 4ennsylvania. +he -uiding 4rinci'les( as shown in *igure 6( are re'eated in a newly released )S/ 'u"lication entitled5 Site 4lanning( .evelo'ment and Cestoration $>> ?'df download@ )S/ states$>=5 K+hrough months of research( stakeholder outreach( and colla"oration amongst )S/ mem"er com'anies( the coalition recently released its -irst 2eco%%ended Practice( which offers guidance on site 'lanning( develo'ment and restoration.L +hrough months of research( stakeholder outreach( and colla"oration amongst )S/ mem"er com'anies( the coalition recently released its first Cecommended 4ractice( which offers guidance on site 'lanning( develo'ment and restoration. <O+E5 6. )S/ has "een in o'eration since 2007( and this is the 'I2ST ti%e these have "een 'u"lished. 2. +his is 2EC&MME.3E3 4C#/+I/E( not hard rules( not regulation and not a law. )S/ makes no mention of what would ha''en should a Kmem"erL fail to follow the CE/O))E<.E. 4C#/+I/ES. )S/ states this very clearly in the 4reface5 This document &rovides general guidance on recommended &ractices !or the su(Fect(s addressed$ 0t is o!!ered as a re!erence aid and is designed to assist industry &ro!essionals in im&roving their e!!ectiveness$ It is not intended to establish or impose binding re,uirements. othing herein constitutes, is intended to constitute, or shall be deemed to constitute the setting or determination of legal standards of care in the performance of the subject activities. The !oregoing disclaimers a&&ly to this document not%ithstanding any e8&ressions or terms in the te8t that may con!lict or a&&ear to con!lict %ith the !oregoing$ What the MSC IsnMt Saying Dsing a sim'le "rowser search( you will find the vast ma3ority of 'ress releases from )S/ center around Io"s( Economic "enefits to communities( Io"s( Income to the state( Io"s( and Io"s. Fery few 'ress releases address the environmental and health concerns e9ce't to dismiss the concerns and divert a reader!s attention to look at all the 3o"s.
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Marcellus Shale 1oalition, Marcellus on Main Street, htt"#$$%%%&!arcelluson!ainstreet&org$ Marcellus Shale 1oalition, 7eco!!en(e( Practices, /"ril 2 12, htt"#$$!arcelluscoalition&org$%"content$u"loa(s$2 12$ ,$Site-Planning-<e)elo"!ent-an(-7estoration&"(f '+? ibi( /onnecting the .ots5 )arcellus Shale 4lay 4layers 6$: of 267
Iust for the month of )ay 2062( the )S/ 4ress Celease$>7 headlines include5 Cidgway Cecord5 e"site /an Hel' /onnect #rea ;usinesses ith )arcellus Shale 8 )ay 67( 2062 /harleston .aily )ail O'8Ed5 Shale -as /an Ce8Falue est Firginia 8 )ay 67( 2062 Erie +imes8<ews5 Shale .rilling ill 4lay a Cole in Erie8#rea Economy 8 )ay 6:( 2062 ;enefits of <atural -as 4roduction Ceali1ed "y KEvery Single 4ennsylvanianL 8 )ay =( 2062 #ssociated 4ress5 -as .rillers -enerate #"out A$.: ;illion in Cevenues *rom )arcellus Shale 8 )ay :( 2062 # few recent events were not mentioned "y )S/ 0athro' /om'ressor Station e9'losion$>9 in S'ringville +ownshi'( SusMuehanna /ounty 4# 8 )arch 2062 4i'eline installation drilling $=0 "lowout ?: incidents over 6 week 'eriod@ in .allas +ownshi'( 0u1erne /ounty 4# 8 )ay 2062 )ethane )igration$=6( contaminate wells( "u""ling creeks in -ranville Summit( ;radford /ounty 4# 8 )ay 2062 )S/ does not recogni1e any connection "etween drilling and drinking water contamination. 4er SODC/E #+/H$=25 Bathryn Bla"er of the )arcellus Shale /oalition is the former E9ecutive .irector of the 4ennsylvania Economy 0eague. In an interview with the so8called J Clean S"ies TH .et/or"#L a channel a--iliated /ith the >%erican Clean S"ies 'oundation A/hich is largely -unded -ro% pro-its -ro% gas drillingB ( :la(er stated that toxins entering into peoples' /ater /ells /as a %yth# and also stated that the '2>C >ct /as unnecessary (ecause other organiGations li"e the En8iron%ental Protection >gency already ha8e regulations in place to serve as a watchdog( neglecting to mention that chemicals used in methane drilling are e9em't from federal water 'rotection disclosure rules( thanks to the Halli"urton loo'hole( and the 'rocess is su"3ect to woefully inadeMuate state ins'ection agencies. #merican /lean Skies *oundation ?#/S*@ is a front organi1ation founded "y /hesa'eake Energy /or'oration. #u"rey )c/lendon( /EO of /hesa'eake Energy( in on the "oard of trustees for #/S*.
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Marcellus Shale 1oalition, Ne%sroo!, htt"#$$!arcelluscoalition&org$category$ne%sroo!$ >;"losion roc0s natural gas co!"ressor station, By Laura Legere OStaff 9riterP, Publishe(# March ' , 2 12, htt"#$$theti!es-tribune&co!$ne%s$e;"losion-roc0s-natural-gas-co!"ressor-station-1&12:2. 2 '? <rilling blo%out in Bac0 Mountain, 1iti4ens Joice, Staff re"ort, Publishe(# May -, 2 12, htt"#$$citi4ens)oice&co!$ne%s$(rilling-blo%out-in-bac0-!ountain-1&1'12'1' '?1 Gas !igration un(er in)estigation in Bra(for( 1ounty, 7i)er 7e"orter, May 2,, 2 12, htt"#$$%%%&ri)erre"orter&co!$ne%s$11$2 12$ .$2,$gas-!igration-un(er-in)estigation-bra(for(-county '?2 Marcellus Shale 1oalition, Source%atch, htt"#$$%%%&source%atch&org$in(e;&"h"EtitleFMarcellusDShaleD1oalition /onnecting the .ots5 )arcellus Shale 4lay 4layers 6$> of 267
>%erican Clean S"ies 'oundation
The E3&TSF hile figures and statistics cited "y )S/ regarding 3o"s and economic "enefits have "een called into Muestion$=$( one thing is clear 8 there is a lot of money flowing from lo""yists and natural gas cor'orations to Harris"urg.
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Marcellus Shale *ob 1reation Nu!bers 2uestione(, P/Matters&co!, by 1athy 1lar0, *une 22, 2 11, htt"#$$%%%&"a!atters&co!$2 11$ +$22$!arcellus-shale-Iob-creation-nu!bers-5uestione($ /onnecting the .ots5 )arcellus Shale 4lay 4layers 6$= of 267
6$7 of 267
#s re'orted "y )arcellusmoney.org$=&5 +he natural gas industry gave A=(6=:(2$& to 4ennsylvania candidates and 4olitical #ction /ommittees ?4#/s@ from )+++ through the end o- )+1+( according to a /ommon /ause%4ennsylvania ?//4#@ analysis released today. A$(&&2(262 was donated to elected officials currently in office. +he to' reci'ient remains -overnor +om /or"ett( with a total A6(>$&(09> in contri"utions from the natural gas industry. /or"ett raised A6(07$($6: of that total in )++<@)+1+ from 26> donations. He is followed "y Senate 4resident 4ro +em'ore Iose'h Scarnati( with A29$($$$. -iving "y the industry dou"led from the 2007 election cycle ?A6(00&(=:=@ to the 2060 election cycle ?A2(>07(67=@. Heading into the 2062 Elections( *ollow the )oney.org re'orts Oil G -as cam'aign contri"utions to 4ennsylvania is currently A$$0( >=0
Top 1+ 3onors Pennsyl8ania )+11@)+1)
Industry
4E-D0#( BI) /HES#4E#BE E<EC-O /HIE* OI0 G -#S C#<-E CESODC/ES /OC4 EEEO<)O;I0 4E<<SO0F#<I# E<EC-O CESODC/ES -COD4 4#/ EX+ /OC4 <#+IO<#0 *DE0 -#S /O *OCCES+ III( I /0I**OC. +O44EC IC( IOSE4H F G )#DCEE< Follow the Money.org 375
=ocation
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Total >%ount
A:0(000 A&2(9:0 A$7(:00 A2=(>0: A2=(:00 A6:(02: A6&(600 A6$(600 A62(:00 A20(000
/am'aign contri"utions to candidates are often highlighted while the amount of lo""ying money is sometimes ignored. +he *irst #mendment of the Dnited States of #merica /onstitution states5 /ongress shall make no law res'ecting an esta"lishment of religion( or 'rohi"iting the free e9ercise thereof; or a"ridging the freedom of s'eech( or of the 'ress; or the right of the 'eo'le 'eacea"ly to assem"le( and to 'etition the government for a redress of grievances. hat we call Jlo""yingJ is the e9ercise of the right to 'etition the government.
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Marcellus Money, htt"#$$!arcellus!oney&org$ Follo% the Money, htt"#$$%%%&follo%the!oney&org$(atabase$StateGlance$contributorD(etails&"ht!lE AiF''AsFP/AyF2 12Asu!!aryF1 /onnecting the .ots5 )arcellus Shale 4lay 4layers 6$9 of 267
# little history lesson$=>5 +he ;;/ holds that Jlo""yingJ comes from the gathering of )em"ers of 4arliament and 'eers in the hallways ?or lo""ies@ of Houses of 4arliament "efore and after 'arliamentary de"ates. One story states that the term originated at the illard Hotel in ashington( ./( where it was used "y Dlysses S. -rant to descri"e the 'olitical wheelers and dealers who freMuented the hotelHs lo""y to access -rantRwho was often there to en3oy a cigar and "randy. Others have made the claim that this story of the wordHs origin is erroneous +he term Jlo""yingJ a''eared in 'rint as early as 67205. Other letters from ashington affirm( that mem"ers of the Senate( when the com'romise Muestion was to "e taken in the House( were not only Jlo""ying a"out the Ce'resentativesH /ham"erJ "ut also active in endeavoring to intimidate certain weak re'resentatives "y insulting threats to dissolve the Dnion. R#'ril 6( 6720. 0o""ying the DS /ongress or State 0egislatures has "ecome an industry in itself. hile no firm advertises itself as 0o""ying8C8Ds( more often than not the Klo""yingL service is offered as consultant or advisor. # good lo""yist will have connections and "e familiar with who is who in the legislature. +he most desired lo""yists are former 'oliticians or 'olitical staffers.
'igure * 2e8ol8ing 3oor

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Lobbying, 9i0i"e(ia, htt"#$$en&%i0i"e(ia&org$%i0i$Lobbying 6&0 of 267
In *igure $( note Steve *orde( /hris +ucker( and +ravis indle are all former DS House of Ce'resentative staffers. +ucker and indle are "oth em'loyed "y *+I /onsulting( which also em'loyee many others connected to Energy8In8.e'th. .uring a >0 )inutes interview( former lo""yist( Iack #"ramoff descri"ed how the Krevolving doorL worked.$== ?Em'hasis added@ A36A7:22J Ahen %e %ould (ecome !riendly %ith an o!!ice and they %ere im&ortant to us, and the chie! o! sta!! %as a com&etent &erson, 0 %ould say or my sta!! %ould say to him or her at some &oint, C@ou 1no%, %hen you<re done %or1ing on the -ill, %e<d very much li1e you to consider coming to %or1 !or us$E ow the moment I said that to them or any of our staff said that to Lem, that was it. 'e owned them. *nd what does that meanM /very re,uest from our office, every re,uest of our clients, everything that we want, they2re gonna do. *nd not only that, they2re gonna thin! of things we can2t thin! of to do$ #lso finding their way to )S/ after leaving 'olitical service is *ormer 4# -overnor +om Cidge. D'on leaving his 'osition a Homeland Security Secretary( +om Cidge formed the Cidge 4olicy -rou'( lo""ying is one of the services it 'rovides. Cidge "ecame a lo""yist for )S/.$=7 He left as lo""yist in 2066.$=9 Cidge 4olicy -rou' is listed as an #ssociate mem"er $70. The >CT that Money ,uilt ;y Ianuary 2062 the 'olitical de"ate in 4ennsylvania turned to the issue of an KIm'act *eeL. However( lo""yists and natural gas cor'orations were "een "usy long "efore #/+ 6$ hit the halls of Harris"urg. 4er +he )orning /all 8 Ianuary 62( 2062$765 In 2066 Cange Cesources decided to ru" el"ows with 'olicymakers shortly after the /or"ett administration took office in 2066( it invited them to a Su'er ;owl 'arty at a ranch outside *ort orth( +e9as( where attendees R which also included the com'anyHs vendors and 'ro'erty owners whoHd leased to the com'any R were encouraged to cheer on the 4itts"urgh Steelers over the -reen ;ay 4ackers. #dditional inducements included Jclassic +e9as "ar"ecue(J live entertainment and the o''ortunity to meet 'ast Steelers stars. Cange Cesources then s'ent A&66(&6& through the first nine months of last year to get its voice heard in the /a'itol.
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*ac0 /bra!off >;"lains Ho% He K@%ne(L Me!bers @f 1ongress /n( 6heir Staff, 6hin0Progress, By Lee Fang on No) ?, 2 11& htt"#$$thin0"rogress&org$s"ecial$2 11$11$ ?$'+2':2$abra!off-o%ne(-congress$ '?6o! 7i(ge *oins the Marcellus Shale 1oalition's Natural Gas Gol( 7ush, by Ste)e Horn, /ugust 2, 2 1 , P79atch, htt"#$$%%%&"r%atch&org$no(e$:'21 '?: >;-Go)& 6o! 7i(ge's Iob %ith Marcellus Shale 1oalition en(s, /ssociate( Press, /ugust ., 2 11, htt"#$$%%%&"ennli)e&co!$!i(state$in(e;&ssf$2 11$ -$e;-go)Dto!Dri(gesDIobD%ithD!ar&ht!l 'Marcellus Shale 1oalition, /ssociate Me!bers, htt"#$$!arcelluscoalition&org$about$associate-!e!bers$ '-1 Pro-Marcellus Shale gas (rilling lobbyists s"en(ing !illions !ore than critics, *anuary 21, 2 12, By *ohn L& Mice0, Morning 1all Harrisburg Bureau, htt"#$$articles&!call&co!$2 12- 1-21$ne%s$!c-"a-!arcellus-shale-lobbying-e;"enses2 12 12 D1Dlobbyist-(isclosure-!arcellus-shale-(ebate-natural-gas /onnecting the .ots5 )arcellus Shale 4lay 4layers 6&6 of 267
#ll told( 4ennsylvaniaHs natural gas industry and its trade grou's s'ent A$.$= million on lo""ying "etween Ianuary and Se'tem"er 2066( according to .e'artment of State records. Environmentalists s'ent A6=7(909 during the same time 'eriod. The Marcellus Shale Coalition# an industry trade group in Washington County# led in lo((ying expenditures# laying out 51.) %illion. Cange Cesources finished second. Counding out the to' five s'enders during the first nine months of last year were /hesa'eake8#''alachia 00/( A29>(:9>; Shell Oil /o.( A2==($2$; and S'ectra Energy +ransmission 00/( A6&=(000( state records showed. On Ianuary 62( 2062 a letter$72 was sent to Ce'resentatives Sam Smith( )ike +ur1ai( and ;rian Ellis from Bathryn W. Bla"er( 4resident 8 )arcellus Shale /oalition( and Ste'hanie /atarino issman( E9ecutive .irector 8 #ssociated 4etroleum Industries of 4ennsylvania. 0etter was also ccHd to -overnor +om /or"ett and all House )em"ers. +he letter contained a list entitled ESuggestions for Final Marcellus Shale Legislation. There were 27 suggestions. All but 3 of suggestions found their way into the bill. laber and !iss"an are aware of the less than fa#orable $ublic i"age the %atural &as industry and how words and ter"s used do influence $ublic $erce$tions. 'n the afore"entioned letter( laber and !iss"en suggested the words ha)ardous and other che"icals in *+3222*b,*-,*i, to be changed. Act .3 did not use the che"ical additi#e ter"( instead the ter" hydraulic fracturing additi#e was used. /owe#er( further down in the suggestion list( +32.0 *well location restrictions,( the letter too1 no e2ce$tion to the use of the ter" ha)ardous che"icals( and a$$arently neither did S"ith( Tur)ai and 3llis. *See chart below,
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Marcellus Shale 1oalition, *anuary 12, 2 12 letter to Pennsyl)ania legislators, htt"#$$ia? - :&us&archi)e&org$2+$ite!s$MarcellusShale1oalition/ssociate(Petroleu!Cn(ustries@fPennsyl)ania$MS1/PCLet ter6oS!ith6ur4ai>llis 1-12-12&"(f /onnecting the .ots5 )arcellus Shale 4lay 4layers 6&2 of 267
Suggestions -or 'inal Marcellus Shale =egislation

The provision in the House-passed version (3222(b (! (i (well "o#pletion reports should be har#oni$ed with re"ently pro#ulgated provisions set %orth in &ennsylvania's oil and gas regulations at 25 &a. (ode 7).*22(b (+ by re,uiring the sti#ulation re"ord to in"lude a des"riptive list o% the !"#$i!a% a&&i'i(#) in the sti#ulation %luid. This ter# should be used rather than *"a+ar&ou) a,& o'"#r !"#$i!a%)as proposed. The provision in the 0enate-passed version (32*5 (well lo"ation restri"tions "ontains arbitrary per#it "onditions based on potential i#pa"ts to publi" drin1ing water supplies and %loodplains. -dditionally. the spe"ial restri"tions on "a+ar&ou) !"#$i!a%) storage within 752 %eet o% a strea#. spring or body o% water la"1s any s"ienti%i" basis and should not be "arried in the %inal do"u#ent.
>CT 1*
3222(b (! -t the ti#e o% "lai#ing that any o% the %ollowing are entitled to prote"tion under paragraph (3 . a vendor. servi"e provider or operator shall %ile a signed written state#ent that the re"ord "ontains a trade se"ret or "on%idential proprietary in%or#ation/ .i/ A "y&rau%i! fra!'uri,0 a&&i'i(#1 (ii - "he#i"al. (iii - "on"entration. (iv -ny "o#bination o% subparagraphs (i . (ii and (iii . 32*5 (d.* -dditional prote"tive #easures. The depart#ent #ay establish additional prote"tive #easures %or storage o% "a+ar&ou) !"#$i!a%) and #aterials intended to be used. or that have been used. on an un"onventional well drilling site within 752 %eet o% a solid blue lined strea#. spring or body o% water identi%ied on the #ost "urrent 7 *32 #inute topographi" ,uadrangle #ap o% the 4nited 0tates 5eologi"al 0urvey.
Total ca"$aign contributions 343 fro" the %atural &as 5or$orations for 6e$resentati#es S"ith( Tur)i and 3llis7
R#pr#)#,'a'i(# 6e$ Sa" S"ith *6, 8istrict 99 6e$ Mi1e Tur)ai *6, 8istrict 24 6e$ :rian 3llis *6, 8istrict .. Total To'a % 657.252 677.*22 623.222 6*+*.352 2#ar) 2223-22*2 222*-22*2 2223-22*2
To ensure the legislation would be written to benefit the %atural &as 'ndustry interests( the lobbyists were sent to /arrisburg. !hether wor1ing directly or through surrogates *such as the MS5,( the lobbyists s$ent ;.(3<<(<<< =ust on the i"$act fee bill. 34- This is a$$ro2i"ately .>3 of the a"ount s$ent for the entire $re#ious year.
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Marcellus Money, htt"#$$!arcellus!oney&org$ Pro-Marcellus Shale gas (rilling lobbyists s"en(ing !illions !ore than critics, *anuary 21, 2 12, By *ohn L& Mice0, Morning 1all Harrisburg Bureau, htt"#$$articles&!call&co!$2 12- 1-21$ne%s$!c-"a-!arcellus-shale-lobbying-e;"enses2 12 12 D1Dlobbyist-(isclosure-!arcellus-shale-(ebate-natural-gas /onnecting the .ots5 )arcellus Shale 4lay 4layers 6&$ of 267
The ,lo/(ac" On *e"ruary 6&( 2062( -overnor +om /or"ett signed an amended version of H;69:0 and it officially "ecame #/+ 6$. #ct 6$ has "een characteri1ed as a K-ift to -assersL and called the K orst <ew Environmental 0aw in the <ationL$7: However( it was not the lack of environmental 'rotections which has riled u' many 4ennsylvanians and communities. +he first is the issue of Woning #ct 6$ included a statute which allows state rules on 1oning for oil and gas drilling to su'ersede or override local 1oning laws. W **+). &il and gas operations regulated pursuant to Chapter *). E9ce't with res'ect to local ordinances ado'ted 'ursuant to the )4/ and the act of Octo"er &( 69=7 ?4.0.7:6( <o.6>>@( known as the *lood 4lain )anagement #ct( all local ordinances purporting to regulate oil and gas operations regulated (y Chapter *) Arelating to de8elop%entB are here(y superseded . <o local ordinance ado'ted 'ursuant to the )4/ or the *lood 4lain )anagement #ct shall contain 'rovisions which im'ose conditions( reMuirements or limitations on the same features of oil and gas o'erations regulated "y /ha'ter $2 or that accom'lish the same 'ur'oses as set forth in /ha'ter $2. The Co%%on/ealth# (y this section# pree%pts and supersedes the regulation o- oil and gas operations as pro8ided in this chapter. Several munici'alities have 3oined together and filed a lawsuit to have #ct 6$ overturned $7>. +he courts ordered a tem'orary halt to the Woning 4rovisions and a Iune 2062 court date was scheduled. +he 1oning 'rovision in #ct 6$ was struck down in Iuly 2062.$7= +he /or"ett administration immediately a''ealed the decision to the 4ennsylvania Su'reme /ourt. +estimony and
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Frac0ing <e!ocracy# 9hy Pennsyl)ania's /ct 1' May Be the Nation's 9orst 1or"orate Gi)ea%ay, /lterNet, By Ste)en 7osenfel(, March ?, 2 12, htt"#$$%%%&alternet&org$story$1.,,.:$frac0ingD(e!ocracyG'/D%hyD"ennsyl)ania G2?sDactD1'D!ayDbeDtheDnationG2?sD%orstDcor"orateDgi)ea%ay '-+ Pennsyl)ania 1ourt Petitione( to Sto" /ct 1', March 2:, 2 12, Protect >agle Mere /lliance, htt"#$$"rotecteagles!ere&org$2 12$ '$2:$"ennsyl)ania-court-"etitione(-to-sto"-act-1'$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 6&& of 267
arguments were heard "y the 4# Su'reme /ourt in the fall of 2062. +he 4# Su'reme /ourt is currently one mem"er short( leaving > sitting on the "ench 2 $ .emocrats and $ Ce'u"licans. In the event of a KtieL( the lower court decision can not "e overturned. Iudges are elected to 608year terms. In 206$( 2 mem"ers are eligi"le for retention( 2 others will "e leaving( and 6 3udge remains on sus'ension$77. Of the :( & are Ce'u"licans and 6 .emocrat. #s of this writing( no date has "een announced when the decision will "e announced( or even if one has "een made. 4erha's waiting until after 206$ election( or for the sus'ended 3udge!s seat to "e filled via a''ointment, The 3octorMs $ag +he second item of contention is what has "ecome known as the .octors -ag Cule. Excerpt -ro% W *))).1. !ydraulic -racturing che%ical disclosure re?uire%ents . ?66@ If a health 'rofessional determines that a medical emergency e9ists and the s'ecific identity and amount of any chemicals claimed to "e a trade secret or confidential 'ro'rietary information are necessary for emergency treatment( the vendor( service 'rovider or o'erator shall immediately disclose the in-or%ation to the health pro-essional upon a 8er(al ac"no/ledg%ent (y the health pro-essional that the in-or%ation %ay not (e used -or purposes other than the health needs asserted and that the health pro-essional shall %aintain the in-or%ation as con-idential. The 8endor# ser8ice pro8ider or operator %ay re?uest# and the health pro-essional shall pro8ide upon re?uest# a /ritten state%ent o- need and a con-identiality agree%ent -ro% the health pro-essional as soon as circu%stances per%it# in con-or%ance /ith regulations pro%ulgated under this chapter. +he general inter'retation is doctors will "e una"le to share information with other medical 'ersonnel( or the 'atient!s family. )any 4ennsylvania doctors are not even aware of the 'ro"a"le health ha1ards associated with e9'osure to fracking chemicals and therefore would not even think to test for them. ithout the freedom to share information and educate medical 'ersonnel a"out fracking chemicals the health care of many 'eo'le will "e com'romised. -overnor /or"ett( who 'romoted( endorsed and signed #ct 6$ is at a loss how the .octor -ag Cule got in there.
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Pa& court o)erturns /ct 1' 4oning rules, 9ritten by Laura @lson an( >rich Sch%art4el, *uly 2?, 2 12, Pittsburgh Post Ga4ette, htt"#$$"i"eline&"ost-ga4ette&co!$in(e;&"h"$ne%s$archi)es$2,?1. '-*oan @rie Mel)in, @n May 1-, 2 12, *ustice @rie Mel)in %as in(icte( by a gran( Iury for utili4ing her staff at the Su"erior 1ourt (uring ca!"aigns for the Su"re!e 1ourt in 2 ' an( 2 :& Cn a((ition, @rie Mel)in is accuse( of also being (irectly in)ol)e( in coor(inating the staff of her sister, state Senator *ane @rie, for the benefit of @rie Mel)in's ca!"aigns& Follo%ing the in(ict!ent, @rie Mel)in %as sus"en(e( %ith "ay fro! the Su"re!e 1ourt& htt"#$$Iu(ge"e(ia&org$in(e;&"h"$*oanD@rieDMel)in /onnecting the .ots5 )arcellus Shale 4lay 4layers 6&: of 267
$o8ernor Cor(ett says heMs not sure ho/ the rule*;< go8erning a healthcare /or"erMs access to trade secret in-or%ation got into the stateMs ne/ drilling la/ . He also says the controversial local 1oning 'rovisions of #ct 6$ re8esta"lish a 4ennsylvania law that e9isted "efore a Su'reme /ourt ruling in the 6970!s. HOO!s Cadio +imes host )arty )oss8/oane interviewed /or"ett +uesday night at an annual event s'onsored "y the -reater 4hiladel'hia /ham"er of /ommerce and HOO. +he local 1oning restrictions within #ct 6$ are "eing challenged in court "y several munici'alities. Cor(ett de-ended the pro8ision . )arty )oss8/oane also asked /or"ett a"out the so8called Kgag ruleL for doctors. #ct 6$ has a 'rovision that reMuires doctors to sign a confidentiality agreement should they need information on trade secret chemicals used "y drillers( in order to treat 'atients. /or"ett says that 'rovision may "e amended. EWe gotta ta"e a loo" at that#F said Cor(ett. EIM% not sure ho/ that got put in there. I donMt recall ho/ that got in there. There are certainly con-identiality issues. We ha8e to see /hat happens /ith the -ederal go8ern%ent (ecause theyMre getting ready to issue regulations on the -or%ula so that %ight (eco%e %oot do/n the road.F Is it unreasona"le to e9'ect -overnor /or"ett to at least B<O it, what is in a "ill "efore signing
4ennsylvania officials( legislators and re'resentatives of the <atural -as industry are denying the e9istence of the Kgag orderL. #dditionally( money for health studies in the original drafts of the "ill was removed from the final version. 3octors critical o- Pa. drilling (ill that strips health study %oney*<+ #'r. 62( 2062 8 4ressconnets.com E9cer't5 Oet when legislative leaders and the governorHs office negotiated the most swee'ing u'date of the stateHs oil and gas law in a Muarter century( they stripped 5) %illion a year that included -unding -or a state/ide health registry to trac" respiratory pro(le%s# s"in conditions# sto%ach ail%ents and a host o- other illnesses potentially related to gas drilling E9cer't5 4atrick Henderson( -ov. +om /or"ettHs to' energy official( said doctors will "e 'ermitted to inform their 'atients and other mem"ers of the 'atientHs treatment team. ;ut he declined to address other circu%stances in /hich a doctor %ight -eel there's a legiti%ate need to share in-or%ation outside a tight circle# saying he /ouldn't discuss Lpotentially endless scenarios.L
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Go)ernor 1orbett Says <octorsL 1oncerns @)er /ct 1' May Be WMootX, StateC!"act, May 1+, 2 12, By Susan Philli"s, htt"#$$statei!"act&n"r&org$"ennsyl)ania$2 12$ .$1+$go)ernor-corbett-says-(octors-concerns-o)er-act-1'-!ay-be-!oot$ ': <octors critical of Pa& (rilling bill that stri"s health stu(y !oney, /ssociate( Press, 9ritten by Michael 7ubin0a! an( 3e)in Begos, /"ril 12, 2 12, htt"#$$%%%&"ressconnects&co!$)ie%art$2 12 ,12$N>9S11$2 ,11 ',,$<octors-critical-Pa(rilling-bill-stri"s-health-stu(y-!oney /onnecting the .ots5 )arcellus Shale 4lay 4layers 6&> of 267
He said fears a"out the new law are unwarranted. LThere is no gag order#L !enderson /rote in an e%ail. LPuite the contrary# the la/ see"s to -oster health pro-essional access to the in-or%ation# and i%plicit in that is the -ree exchange o- in-or%ation /ith their patient so they can# together# %a"e in-or%ed decisions.J Christine M. SancheG# a spo"es/o%an -or the Society o- Che%ical Manu-acturers and >--iliates( an industry grou' "ased in ashington( ../.( says the confidentiality 'rovision Jseems to "e working well for all stakeholders.J JIt strikes an im'ortant "alance "etween 'rotecting 'ro'rietary information a"out a com'anyHs intellectual 'ro'erty while making it availa"le to s'ecific 'ersons for s'ecific reasons(J she said. Tra8is Windle# a spo"es%an -or the Marcellus Shale Coalition ( an industry grou'( says itHs Jvery tellingJ and JsadJ that fracking o''onents "lame gas drillers for a law thatHs "een used nationally since the mid86970s. hile some doctors are u'set over the confidentiality 'rovision( e9'erts say the "ehind8 the8scenes funding cut could hurt 'u"lic health even more. Cor(ett's o/n Marcellus Shale >d8isory Co%%ission reco%%ended last su%%er that the !ealth 3epart%ent create a -irst@o-@its@"ind population@(ased health registry that /ould -ollo/ residents /ho li8e /ithin a %ile o- gas drilling and production sites. E9cer't5 The -unding /as "illed (ecause $&P senators -ro% the Marcellus region -elt the depart%ent didn't ha8e a good grasp o- /hat it /ould do /ith the %oney @@ especially gi8en the sensiti8ity o- collecting pri8ate health in-or%ation# said the lead Senate negotiator. J hat we heard a"out how the money would "e used did not 'ut our minds at ease. +he 'rimary concern from the folks that I re'resent was that there wasnHt a 'lan( a detailed 'lan in 'lace for how the money was going to "e utili1ed(J said .rew /rom'ton( chief counsel for Senate 4resident 4ro +em'ore Ioe Scarnati( C8Iefferson. JCather( we heard that( H ell( weHll use the money for a study.H OB( a study of what,J /rom'ton said. The go8ernor's o--ice didn't -ight -or it# either# he said. JIt was clear to me that it wasnHt their highest 'riority. IHm not going to say they laid down on it( "ut no side gets everything they wanted( and we had true reservations a"out endorsing such a 'lan(J /rom'ton said. 4ennsylvania officials are saying concerned doctors are E%a"ing a %ountain out o- a %olehillF..
/onnecting the .ots5 )arcellus Shale 4lay 4layers 6&= of 267
JItHs not to discredit those who are sincerely looking out for the health of others( "ut I think a mountain has "een made out of a molehill $96(J says .rew /rom'ton( a legislative staffer and one of the 'rimary drafters of the law. JItHs im'ortant to have disclosure( and thatHs what we tried to do. #nd I think this is coming from 'eo'le who o''ose the industry.J +he law was modeled after a /olorado initiative( which was modeled after a federal Occu'ational Safety and Health #dministration regulation. #t a recent talk for local officials( Michael :rancer# the head o- Pennsyl8ania's 3epart%ent oEn8iron%ental Protection# de-ended /hat so%e are calling the Ldoctor gag rule.L LThe 'gag order on physicians' X nothing could (e -urther -ro% the truth or %ore nonsensical than this#L :rancer said. LThe pro8isions o- >ct 1* are exactly li"e /hat /e ha8e already and had had in the -ederal syste% since the '6+s. There's nothing ne/ there.L ,ut there are so%e di--erences. The -ederal la/ /as designed -or /or"ers# /hile the ne/ state la/s co8er e8eryone. >nd critics say so%e i%portant parts o- the -ederal la/ are %issing in these state la/s. 2e%o8al o- -unding -or !ealth 2esearch hen legislative leaders and the governorHs office negotiated the stateHs oil and gas law( A2 million a year was stri''ed from the "ill. It included funding for a statewide health registry to track res'iratory 'ro"lems( skin conditions( stomach ailments and a host of other illnesses 'otentially related to gas drilling .rew /rom'ton( Senate 4resident 4ro +em Ioe Scarnati!s chief of staff( and one of the main authors of #ct 6$( stated one of the main authors of the "ill( says funding such a study would "e Kdangerous.L$92 He says funding a "aseline study in heavily drilled areas could cause unnecessary 'anic among the residents. KImagine living near a well( and everything!s fine( and you get a letter in the mail asking to take 'art in medical tests(L says /rom'ton. K#nd then those 'eo'le are like5 ] hy do I have to get tests, hat could "e wrong with me,!L /rom'ton says funding health studies with im'act fee money is not out of the Muestion. ;ut he says it would have to "e handled Kvery carefully.L -ov. /or"ettHs own )arcellus Shale #dvisory /ommission recommended last summer$9$ that the Health .e'artment create a first8of8its8kind 'o'ulation8"ased health registry that would
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Pennsyl)ania <octors 9orry @)er Frac0ing 'Gag 7ule', National Public 7a(io ONP7P, by Susan Philli"s, May 1?, 2 12, htt"#$$%%%&n"r&org$2 12$ .$1?$1.22+-. 1$"ennsyl)ania-(octors-%orry-o)er-frac0ing-gag-rule ':2 <octors critical of Pa& (rilling bill that stri"s health stu(y !oney, /ssociate( Press, 9ritten by Michael 7ubin0a! an( 3e)in Begos, /"ril 12, 2 12, htt"#$$%%%&"ressconnects&co!$)ie%art$2 12 ,12$N>9S11$2 ,11 ',,$<octors-critical-Pa(rilling-bill-stri"s-health-stu(y-!oney ':' ibi( /onnecting the .ots5 )arcellus Shale 4lay 4layers 6&7 of 267
follow residents who live within a mile of gas drilling and 'roduction sites. Several 'u"lic health officials have raised Muestions a"out why no one from their field of e9'ertise was at the ta"le while the law was "eing drafted. ;ut /rom'ton says everything was vetted through the state!s .e'artment of 4u"lic Health. $9& K<o one with a medical degree was at the ta"le( that!s true(L said /rom'ton. K;ut to somehow think that this language wasn!t getting vetted through 'u"lic health officials( I think is mistaken. In Iuly 2062( .r. #lfonso CodriMue1( a 0u1erne /ounty 4# ne'hrologist$9:( filed a federal lawsuit against the )edical -ag rule 'rovision $9>. -uthrie Health and -eisinger announced they would colla"orate to study the health im'acts$9= of )arcellus Shale drilling in #ugust 2062. E9cer't5 A team !rom 'uthrie and 'eisinger %ill lead the e!!ort to utiliLe their electronic health records to investigate the health e!!ects o! 7arcellus .hale gas drilling$ The study %ill loo1 at detailed health histories o! hundreds o! thousands o! 'eisinger and 'uthrie &atients %ho live near the 7arcellus shale !ormation, a roc1 !ormation in %hich energy com&anies have already drilled a(out 5,""" natural gas %ells$ E9cer't5 .ome o! the health e!!ects that %ill (e investigated !irst may include asthma, cardiovascular disease and cancer$ Preliminary results o! data analysis may (e released %ithin the ne8t year, =r$ Carey said, %hile other as&ects o! the research %ill un!old over !ive, 1" or 15 years$ 'rac"# ,a(y# 'rac" In Iune 2062( )S/ lo""ying attention turned to H;6>:9 regarding 'ermit a''roval $97. !, 171< 2 the .e'artment of Environmental 4rotection 4ermit Ceview and Issuance #ct 2 introduced "y Ce'. Ieff 4yle( C8>0 of #rmstrong and Indiana counties. +he "ill!s 'rovisions( which would a''ly to all 'ermit a''lications su"mitted to .E4( include5 ^ Per%it applications /ill (e dee%ed appro8ed i- the 3EP -ails to issue a decision in accordance /ith agreed@to re8ie/ schedules. ^ >pplicants %ay select a licensed per%it re8ie/ pro-essional to re8ie/ the application. ^ CeMuire the .E4 to esta"lish reMuirements for licensed 'ermit review 'rofessionals.
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Scarnati /i(e Says <rilling Foes HiIac0 /ct 1' <octor Pro)ision, StateC!"act, By Susan Philli"s, /"ril 2 , 2 12, htt"#$$statei!"act&n"r&org$"ennsyl)ania$2 12$ ,$2 $scarnati-ai(e-say-(rilling-foes-hiIac0-act-1'-(octor-"ro)ision$ ':. / ne"hrologist is a !e(ical (octor %ho s"eciali4es in 0i(ney care an( treating (iseases of the 0i(neys& htt"#$$%%%&(a)ita&co!$0i(ney-(isease$o)er)ie%$treat!ent-o)er)ie%$%hat-is-a-ne"hrologistE$e$+--, ':+ <octor Sues @)er /ct 1' WGag 7uleX, StateC!"act, By Susan Philli"s, *uly ' , 2 12, htt"#$$statei!"act&n"r&org$"ennsyl)ania$2 12$ ?$' $(octor-sues-o)er-gag-rule$ ':? Guthrie Health an( Geisinger collaborate on Marcellus shale research effort, Guthrie Health Press 7elease, /ugust 2 , 2 12, htt"#$$%%%&guthrie&org$"ress-releases$guthrie-health-an(-geisinger-collaborate-!arcellus-shale-research-effort ':HB1+.:# /n /ct "ro)i(ing for the effecti)e an( thorough re)ie% of "er!it a""lications to the <e"art!ent of >n)iron!ental Protection an( other entities to ensure en)iron!ental "rotection an( foster econo!ic gro%th& 7e!o)e( fro! table, @ct& 1., 2 12& htt"#$$%%%&legis&state&"a&us$cf(ocs$billinfo$billinfo&cf!E syearF2 11Asin(F Abo(yFHAty"eFBAbnF1+.: /onnecting the .ots5 )arcellus Shale 4lay 4layers 6&9 of 267
^ Ceviews of a''lication com'leteness( technical issues( res'onses to deficiencies( final reviews and determinations shall take no more than $0 days. ^ The 3EP shall accept reco%%endations (y per%it re8ie/ pro-essionals unless they are Eclearly erroneous.F ^ CeMuire 're8a''lication meetings "etween a''licants and the .E4. +here are three trou"ling 'rovisions5 6. If the .E4 does not review and make a decision regarding a 'ermit within a 're8set timeline( the 'ermit is automatically #44COFE.. -iven -ov. /or"ett!s "udget cuts to the .E4( there will "e the high 'ro"a"ility of Kru""er stam'ingL 'ermits. 2. 4rivati1ing of the 'ermit review 'rocess will allow the <atural -as cor'orations to go K'ermit a''roval sho''ingL and find K'ermit reviewL com'anies who are a"le to review and stam' #44COFE. the Muickest. +he "ill does reMuire the .E4 to esta"lish reMuirements for Klicensed 'ermit review 'rofessionalsL( however given the amount money in the form of cam'aign donations and lo""ying the <atural -as industry s'ends 2 how stringent will the reMuirements really "e, $. +he .E4 shall acce't recommendations "y 'ermit review 'rofessionals unless they are Kclearly erroneous.L .efine Kclearly erroneousL. How much time will .E4 really s'end reviewing 'ermits which have "een Ka''rovedL "y these 'rofessionals, +he 4ennsylvania 0egislature did not have the o''ortunity to vote on H;6>:9. $o8. To% Cor(ett enacted it 8ia EExecuti8e &rderF. In Iuly 2062( 4ennsylvania -ov. +om /or"ett issued an e9ecutive order reMuiring the .e'artment of Environmental 4rotection to set esta"lished timelines for 'rocessing 'ermit a''lications. E9cer't from5 /or"ett +ells .E4 to E9'edite 4ermit 4rocess$99( Iuly 2&( 2062( StateIm'act( ;y Susan 4hilli's /or"ett says he!s res'onding to com'laints a"out how long .E4 takes to issue 'ermits. C:ne o! the (iggest com&laints 0 have received over and over again is the time it ta1es !or (usinesses, non,&ro!it organiLations and local governments to %or1 through the &ermitting &rocess,E Cor(ett said$ C0 &romised to correct this, and today %e are setting the %heels in motion to deliver on that &romise$ At the same time, =5P %ill continue its longstanding mission to &rotect our environment$E +he e9ecutive order also instructs .E4 to coordinate the multi'le 'ermits often reMuired "y large or com'licated 'ro3ects. 4u"lic concerns a"out health risks and environmental im'act are increasing as 'eo'le "ecome more aware and informed. #s 2062 is a "ig election year( many local( state and federal candidates will "e facing Muestions a"out the <atural -as industry and their activities. +he )S/( related organi1ations and the <atural -as industry will "usy with re8s'inning( and re8framing the standard talking 'oints. .o e9'ect health and environmental concerns to "e
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1orbett 6ells <>P to >;"e(ite Per!it Process, *uly 2,, 2 12, StateC!"act, By Susan Philli"s, htt"#$$statei!"act&n"r&org$"ennsyl)ania$2 12$ ?$2,$corbett-tells-(e"-to-fast-trac0-"er!it-"rocess$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 6:0 of 267
down'layed( while 3o"s and the economy will take center stage. +he )S/ and its 'artners have dee' 'ockets. In 2060( 4ennsylvania candidates received A2(>07(67= in cam'aign donations( e9'ect that num"er to dou"le or tri'le for 2062. +he industry s'ent A$($=0(000 "etween Ianuary 8 Se'tem"er 2066 on lo""ying 4ennsylvania legislators( and A6($00(000 3ust on #ct 6$. +hose num"ers are sure to increase in the coming months. hile it is unclear as to when "ills such as H;6>:9 will come to the floor of the 4ennsylvania legislature and what the final form will "e( we can "e sure that it will "e the "est legislation that money can "uy.
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Chapter 1+ Marcellus Shale >d8isory Co%%issionMs S/i8el Chairs +he )arcellus Shale #dvisory /ommission&00 ?)S#/@ was officially created "y -ov. +om /or"ett ?C84#@ in )arch $( 2066. +he )S#/ e9'ired on Iuly 66( 2066. Its 'ur'ose is descri"ed as CThe Commission shall develo& a com&rehensive, strategic &ro&osal !or the res&onsi(le and environmentally sound develo&ment o! 7arcellus .hale$E # 'redecessor of the )S#/ was the Energy8Environment /ommittee. In <ovem"er of 2060( +om /or"ett "ecame -overnor Elect of 4ennsylvania( and as any in8 coming -overnor will do( /or"ett organi1ed his transition team. One of the teams was the Energy8Environment /ommittee. E.E2$Y Q E.HI2&.ME.T C&MMITTEE0+1 AEECB Chair I =avid >le&&inger o! 7c4ees, Aallace V 4uric1 7em(ers , 6ichard Allan, Princi&al, 6/ Allan ConsultingR .cott 3a1er, 3uchanan, 0ngersoll V 6ooney PCR Cynthia Carro%, ?P, 'overnment V Community 6elations, Aestern PA ConservancyR 6osemary Chiavetta o! the Pu(lic Htility CommissionR Thomas Chiomento, =irector o! 'overnment at 58elon 'enerationR 3rian Clar1, .hareholder, 3uchanan, 0ngersoll V 6ooney PCR 4ic1 =e3enedictus, Chairman, A9ua AmericaR 'eorge 5llis, President, PA Coal AssociationR 5llen 2erretti, ?P, PA 5nvironmental Council /osh 2irst, President , A&&alachian Mand V Conservation .ervices Co$, MMCR /ohn 'iordano, Chie! Megal, Philadel&hia Aor1sR Pete 'leason, Partner, >VM 'atesR 'rant 'uli(on, 6egional .&ecialist, PA 3uilders AssociationR =ave -ess, 2ormer .ecretary, =e&artment o! 5nvironmental ProtectionR /ohn -ohen%arter, 4ational 6i!le AssociationR Charlie >ir1%ood, President, .ha%nee 0nsuranceR 7i1e >rancerR /ohn :liver, :liver 3rothersR .tan 6a&&, .enior Partner, 'reenlee PartnersR /ohn 6ich, Hltra Clean 2uelsR Todd 6ucciR -asu .hahR /ohn .1outelas, ?P o! 'overnmental A!!airs, Aaste 7anagementR Pat .olanoR 'len Thomas, 'T Po%er 'rou&R 5ric Thumma, =irector o! 0nstitutional 6elations, 0(erdrola 6ene%a(lesR =on Aelsh, 2ormer President, Pennsylvania 5nvironmental CouncilR Pam Aitmer, 5nergy V 5nvironmental Practice Mead, 3ravo 'rou&R and PA .tate .enator 7ary /o Ahite$ +o "etter understand who is who on the EE/( see the chart "elow5
1reation of Go)ernorLs Marcellus Shale /()isory 1o!!ission, >;ecuti)e @r(er, 1o!!on%ealth of Pennsyl)ania, Go)ernor's @ffice, March -, 2 11, htt"#$$%%%&"ortal&state&"a&us$"ortal$ser)er&"tE o"enF.12AobIC<F? -APageC<F22,+ 2A!o(eF2Acontenti(Fhtt"#$$"ubcontent&state&"a&us$"ublishe(content$"ublish$co"Dg eneralDgo)ern!entDo"erations$oa$oaD"ortal$o!($"Dan(D"$e;ecuti)eDor(ers$2 1 D2 1:$ite!s$2 11D 1&ht!l , 1 Go)&-elect 1orbett announces !e!bers of his transition tea!, Press 7elease, No)e!ber 2 1 , htt"#$$%allaby&telicon&co!$P/$library$2 1 $2 1 11' ?:&H6M /onnecting the .ots5 )arcellus Shale 4lay 4layers 6:2 of 267
;y Sector( the EE/ is $0T 0o""ying( 20T Energy( 20T -overnment( 6$T Environment and &T other.
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=o((ying at the EEC Ta(le +he & largest lo""ying firms with seats on EE/ are ;ravo -rou' ;uchanon( Ingersoll G Cooney( -reenlee 4artners( and BG0 -ates. On the surface the 'resence of lo""yists may not have caused any undue concern( however when you consider HO are the lo""yists re'resenting( well( more than a few KcautionL lights should have "een "linking. # 'artial list of clients shows these & lo""ying firms re'resent 29 different 'arties with interest in the fracking of the )arcellus Shale.
Interesting side note5 CCor&orate 3oard 7em(er 7agaLine ,4"2 in association %ith ETI #onsulting, Inc$, ran1ed >VM 'ates as one o! the to& 25 la% !irms in its 2"12 list o! CAmerica<s 3est Cor&orate Ma% 2irms$E 3ased on a survey o! nearly 2,""" general counsel o! H$.$ &u(licly held com&anies, the ran1ings !ocused on those la% !irms that survey res&ondents said they %ould engage in a variety o! im&ortant legal su(Fect matters$E *+I /onsulting( Inc. is the 4u"lic Celations *irm for Energy8in8.e'th( an industry front grou' noted for its hit 'iece on Iosh *o9!s documentary( -asland. EEC and the Marcellus Shale Coalition /or'orations and lo""ying firms re'resented on the EE/ are also listed as mem"ers of the )arcellus Shale /oalition.
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3AL Gates, Fir! @)er)ie%, htt"#$$%%%&0lgates&co!$about$ 6:& of 267
0o""yists5 BG0 -ates( ;uchanan( Ingersoll G Cooney 4/( and )c<ees 00/
allace G <urick(
/or'orations5 /hief Oil G -as( #Mua #merica( /<E -as( Cange Cesources /or'( illiams( Energy +ransfer 4artners( 04( D-I( Ceserved Environmental Services( and +alisman. The Money )em"ers or related to mem"ers of the EE/ enriched /or"ett!s 2060 cam'aign "y A967(6>:. +he highest donors are Conald Brancer( father of )ichael Brancer ?now 4# .e'artment of Environmental 4rotection .E4@ with A2$0(000. He was followed with A690(000 from the lo""ying firm of -reenlee 4artners( and A600(000 from +revor Cees8Iones the /EO of /hief Oil and -as.
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ith 29 mem"ers on the committee( it averages A2$(=$0 'er seat(
The Marcellus Shale >d8isory Co%%ission AMS>CB On )arch $( 2066 the )S#/ "ecame an official commission. Swiveling in their chairs from the EE/ ta"le to the )S#/ ta"le are )ichael Brancer( now the .E4 Secretary( and /ynthia /arrow( Fice 4resident of estern 4# /onservancy( #lthough 4# Senator )ary Io hite is 'art of the )S#/( her former aide( 4atrick Henderson did receive a seat. Shortly after the )S#/ released its final re'ort in Iuly 2066( 4atrick Henderson "ecame -ov. /or"ett!s KEnergy E9ecutiveL. Patric" !enderson Cor(ett's point %an on energy0+* Iuly 2&( 2066( ;y #ngela /ouloum"is( InMuirer Harris"urg ;ureau E9cer't5 At 37, -enderson is 'ov$ Cor(ettBs Genergy e8ecutiveG and to& adviser driving &olicy on the emotionally and &olitically charged issue o! drilling !or natural gas in the 7arcellus .hale$ -e %as, (y all accounts, the (rains (ehind the governorBs tas1 !orce on the issue, and the author o! %hole s%aths o! the 13),&age re&ort that the &anel issued 2riday , a document thatBs sure to set the tone in the Ca&itol !or the ongoing de(ate on drilling and its im&act$ 3a8id E3a8eF Spigel%yer is the Fice 4resident of -overnment Celations for /hesa'eake Energy /or'oration( a .irector of the est Firginia Oil and <atural -as #ssociation as well as its 'ast 'resident. He "arely warmed his seat at the )S#/ ta"le when -ov. /or"ett asked for his resignation. Sources5 /or"ett asked /hesa'eake e9ecutive to Muit )arcellus Shale /ommission ritten "y Scott .etrow( StateIm'act 4ennsylvania Ce'orter ednesday( 2= #'ril 2066
&0&
E9cer't5 According to !our sources, Cor(ett as1ed him to %ithdra% !rom the &anel a!ter a 2e(ruary !ire at a Chesa&ea1e drilling site in Aashington County inFured three %or1ers$ Cor(ett advisors %ere %orried the com&any<s violations %ould (ecome a distraction, as the commission de(ates drilling &olicy$ Chesa&ea1e, %hich currently o&erates 1"5 7arcellus .hale %ells in Pennsylvania, rac1ed u& 132 violations in 2"1", according to the Clean Aater Action re&ort$ Mast
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Patric0 Hen(erson# 1orbett's "oint !an on energy, *uly 2,, 2 11, By /ngela 1oulou!bis, Cn5uirer Harrisburg Bureau, htt"#$$articles&"hilly&co!$2 11- ?-2,$ne%s$2:- :::2D1D!arcellus-shale-(rilling-(rilling-for-natural-gas-e;ecuti)e-(irector , , Sources# 1orbett as0e( 1hesa"ea0e e;ecuti)e to 5uit Marcellus Shale 1o!!ission9ritten by Scott <etro%, StateC!"act Pennsyl)ania 7e"orter, /"r 2?, 2 11, htt"#$$%%%&%itf&org$state-house-soun(-bites$2 11$ ,$sources-corbett-as0e(chesa"ea0e-e;ecuti)e-to-5uit-!arcellus-shale-co!!ission&"h" /onnecting the .ots5 )arcellus Shale 4lay 4layers 6:> of 267
%ee1, one o! its 3rad!ord County %ells lea1ed tens o! thousands o! gallons o! !rac1ing !luid$ The com&any has voluntarily halted hydraulic !racturing and other %ell com&letion activities at its Pennsylvania sites %hile it investigates the cause o! the s&ill . S'igelmyer soon found a new chair as a mem"er of the E9ecutive /ommittee for the )arcellus Shale /oalition. S'igelmyer!s chair at the )S/# was not filled. C. >lan Wal"er is the 4# Secretary of /ommunity and Economic .evelo'ment. He is also 4resident and /EO of ;radford Energy. In )arch of 2066( -ov. /or"ett su"mitted his "udget 'ro'osal. One 4aragra'h( "uried in the 6(67&8'age "udget gives alker the 'ower to Ke9'edite any 'ermit or action 'ending in any agency where the creation of 3o"s may "e im'acted.L P> $o8ernor $i8es Energy Executi8e Supre%e >uthority &8er En8iron%ental Per%itting0+1 "y #"rahm 0ustgarten( <icholas Busnet1 and IoaMuin Sa'ien 4ro4u"lica( )arch 9( 2066( 665:0 '.m. E9cer't5 A s&o1esman !or the economic develo&ment o!!ice said Aal1er %ill not s&ea1 &u(licly until his con!irmation$ 3ut Aal1er did &ost a statement on the de&artment<s %e(site$ CThe (udget introduced today re&resents a com&letely ne% %ay o! doing (usiness !or =C5= and its economic develo&ment &artners,E the statement said$ C0n a tough economic climate, %e need to send a &o%er!ul message to the Pennsylvania 3usiness Community that Pennsylvania is o&en !or (usiness$E Aal1er<s ties to the energy industry are dee&$ -e is listed on state disclosure !orms as an e8ecutive o! the Pennsylvania Coal Association and he has served as chairman o! the Pennsylvania Cham(er o! 3usiness and 0ndustry$ -e also has !irsthand e8&erience %ith the state<s environmental regulations, (ecause his com&anies %ould li1ely have a&&lied !or &ermits similar to those the oil and gas industry is no% &ursuing in the 7arcellus$ And li1e many energy com&anies, his, too, have run into &ro(lems %ith the state$ 0n 2""2, three o! Aal1er<s coal com&anies noti!ied Pennsylvania<s =e&artment o! 5nvironmental Protection that they had run out o! money and %ere going to sto& treating the 173 million gallons o! &olluted %ater they &roduced each year and released into tri(utaries o! the .us9uehanna 6iver$ The state eventually got a court inFunction to !orce them to continue treating the %aste%ater as re9uired (y state and !ederal la%$ See 3CE3 Secretary >lan Wal"er at .P2 State I%pact -or %ore on Wal"erMs (ac"ground.0+7
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P/ Go)ernor Gi)es >nergy >;ecuti)e Su"re!e /uthority @)er >n)iron!ental Per!itting, by /brah! Lustgarten, Nicholas 3usnet4 an( *oa5uin Sa"ien, ProPublica, March :, 2 11, htt"#$$%%%&"ro"ublica&org$article$corbett-"a-energy-e;ecauthority-en)iron!ent , + <1>< Secretary /lan 9al0er, StateC!"act, htt"#$$statei!"act&n"r&org$"ennsyl)ania$tag$alan-%al0er$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 6:= of 267
Ce--rey :up-er5 Senior #dvisor of -overnment #ffairs at /hevron. He 'reviously held a Senior Fice 4resident 'osition at #tlas Energy. In <ovem"er of 2066( /hevron acMuired #tlas &0= Energy for A$.2 "illion and assumed 'ro forma net de"t of a''ro9imately A6.6 "illion. *rom 200> to 2009( )r. Bu'fer served as .e'uty Secretary of Energy at the D.S. .e'artment of Energy. He was the #cting .e'uty Secretary and /hief O'erating Officer( as well as the /hief of Staff. 4rior to the .OE( he worked in the - ;ush hite House as a S'ecial #ssistant to the 4resident for Economic 4olicy and as the E9ecutive .irector of the 4resident!s 4anel on *ederal +a9 Ceform. .uring the first term of the ;ush #dministration( he served as the +reasury .e'artment!s .e'uty /hief of Staff. 4rior to these 'ositions( he was a counsel for the D.S. Senate *inance /ommittee. Terry Pegula( former /EO of East Cesources. East Cesources was acMuired "y Coyal .utch Shell ?HeadMuartered in the <etherlands@ in 2060 for A&.="illion&07. 4egula( through a deal "rokered "y /liff ;enson ?former +rustee for 2 nd )ile /harity@( "ought the ;uffalo Sa"ers Hockey +eam. ;enson is a team e9ecutive. 4enn State received a donation from 4egula of A77 million for a Hockey #rena. ;etween 4egula and his wife( Bim( they donated A270(000 to /or"ett!s 2060 gu"ernatorial cam'aign( making them the highest single donor. Sectors o- the MS>C ith the resignation of S'igelmeyer( the )S#/ ta"le seats 29. Of this( 62 seats are filled "y energy%gas cor'orations( 66 4# government( $ "y lo""ying interests( $ related to the environment and & others. <O+E5 +otals do not add u' to 29 due to individuals "eing associated with one or more sectors.
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1he)ron /nnounces /gree!ent to /c5uire /tlas >nergy, 1he)ron, Press 7elease, htt"#$$%%%&che)ron&co!$che)ron$"ressreleases$article$11 :2 1 Dche)ronannouncesagree!enttoac5uireatlasenergy&ne%s , 7oyal <utch Shell Scoo"s =" >ast 7esources for 8,&? Billion, By 6o! 6aulli, <aily Finance, May 2-, 2 1 , htt"#$$%%%&(ailyfinance&co!$2 1 $ .$2-$royal-(utch-shell-buys-east-resources$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 6:7 of 267
<otice anything missing from the a"ove sectors, How a"out someone from the Health field, +o its credit( the )S#/ did include a few short 'aragra'hs regarding health in the -overnor!s )arcellus Shale #dvisory /ommission Ce'ort&09. On 4age 662 of the )S#/ Ce'ort *$2$37 The =e&artment o! -ealth should %or1 in &artnershi& %ith the Common%ealth<s graduate schools o! &u(lic health and other a&&ro&riate medical institutions to (etter &rotect and enhance the &u(lic health interests o! citiLens, such as through the esta(lishment o! the &o&ulation,(ased health registry and curriculum develo&ment$ *$2$3+ The =e&artment o! -ealth should collect and evaluate clinical data &rovided (y health care &roviders$ *$2$3* The =e&artment o! -ealth should routinely evaluate and assess 7arcellus .hale, related environmental data, such as air, %ater, solid %aste, and !ish and other !ood sam&les, that is collected !rom a variety o! entities, such as PA =5P, H. 5PA, the H. 'eologic .urvey, %ater %or1s or treatment !acilities, industry and academic &artners$ *$2$4"
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Marcellus Shale /()isory 1o!!ission 7e"ort, *uly 22, 2 11, htt"#$$files&(e"&state&"a&us$"ublic"artici"ation$!arcellusshalea()isoryco!!ission$!arcellusshalea()isory"ortalfiles$!sacDfin alDre"ort&"(f /onnecting the .ots5 )arcellus Shale 4lay 4layers 6:9 of 267
The =e&artment o! -ealth should create, or oversee the creation o!, a &o&ulation,(ased health registry %ith the &ur&ose o! characteriLing and !ollo%ing over time individuals %ho live in close &ro8imity (ie one mile radius to gas drilling and &roduction sites$ *$2$41 The =e&artment o! -ealth should esta(lish a system to &rovide !or the timely and thorough investigation o! and res&onse to concerns and com&laints raised (y citiLens, health care &roviders or &u(lic o!!icials$ *$2$42 The =e&artment o! -ealth should educate health care &roviders on the &resentation and assessment o! human illness that may (e caused (y material in drilling constituents$ *$2$43 The =e&artment o! -ealth should esta(lish &u(lic education &rograms regarding the constituents used in the drilling &rocess, &otential &ath%ays to humans, and at %hat level, i! any, they have the &otential to cause human illness$ Dnfortunately( the 4# 0egislature chose to ignore these health recommendations and instead included what has "ecome known as the )edical -ag Cule. What You .eed To :no/ >(out >ct 1*Ms Con-identiality 2e?uire%ents 01+ >pril 1<# )+1) # StateI%pact ,y Scott 3etro/ E9cer't5 @ou can !ind the relevant section on &age *+ o! the !inal (ill$ The ne% legislation re9uires drillers to &rovide the state %ith a list o! chemicals used during hydraulic !racturing, %ith the e8ce&tion o! chemicals the energy com&anies deem Ctrade secrets$E 5very driller uses a di!!erent com(ination o! chemicals to !rac1, and don<t %ant com&etitors to see their ingredients and ratios$ 0! a driller claims a trade secret, it doesn<t have to &ost the &rovision online$ The controversial language allo%s doctors to access that &ro&rietary in!ormation, i! they thin1 &ro&rietary chemicals are directly related to an illness they<re treating$ 4othing controversial a(out that$ Ahat<s controversialJ drilling com&anies only need to hand the in!ormation over 3if the health professional e$ecutes a confidentiality agreement. J-
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9hat Bou Nee( 6o 3no% /bout /ct 1']s 1onfi(entiality 7e5uire!ents, StateC!"act, /"ril 1:, 2 12, By Scott <etro%, htt"#$$statei!"act&n"r&org$"ennsyl)ania$2 12$ ,$1:$%hat-you-nee(-to-0no%-about-act-1's-confi(entiality-re5uire!ents$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 6>0 of 267
J-overnor /or"ett says he!s not sure how the rule&66 governing a healthcare worker!s access to trade secret information got into the state!s new drilling law.J O"viously( he didn!t read the "ill "efore signing it. The Money at the Ta(le +om /or"ett saw A6(>:7(=9: flow into his cam'aign through )S#/ mem"ers( their cor'orations( and e9ecutives of that cor'oration and%or through cor'orate 4#/S. # seat at the )S#/ ta"le was an average of A=9($=2.
>nd the Seats S/i8el Swiveling a seat around( the lo""ying firms of ;uchannon( Ingersoll G Cooney and BG0 -ates( 3oins the )arcellus Shale /oalition&62 as mem"ers( as do 60 cor'orations.
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Go)ernor 1orbett Says <octorsL 1oncerns @)er /ct 1' May Be WMootX, StateC!"act, May 1+, 2 12, By Susan Philli"s, htt"#$$statei!"act&n"r&org$"ennsyl)ania$2 12$ .$1+$go)ernor-corbett-says-(octors-concerns-o)er-act-1'-!ay-be-!oot$ ,12 Marcellus Shale 1oalition, >;ecuti)e Boar(, htt"#$$!arcelluscoalition&org$about$e;ecuti)e-co!!ittee$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 6>6 of 267
+erry ;ossert( Fice 4resident( -overnment G Cegulatory #ffairs of /hief Oil G -as has a seat on the )arcellus Shale E9ecutive ;oard( and .ave S'igelmyer( Fice 4resident( -overnment #ffairs of /hesa'eake Energy /or'oration is the E9ecutive ;oard /hairman. One thing which ena"ling doors to revolve and chairs to swivel is money. 0ots and lots of money. In 2060( the natural gas industry s'ent A$.: million to lo""y lawmakers and state officials regarding the )arcellus Shale. *or 'romoting and 'assage of #ct 6$&6$ to the natural gas industry!s desires the )arcellus Shale /oalitions rolled out A6($00(000. Cange Cesources 'ushed chairs with A6$$(=>>( /hesa'eake Energy s'un them around for A666(099( Coyal .utch Shell greased the wheels A602(&00 and S'ectra Energy +ransmission 'added cushion A&7(000. #lthough not u' for re8election until 206&( -ov. /or"ett!s cam'aign chest is o'en. /ontri"utions from Energy G <atural Cesources are at A&&&(9:7. &6&( and there is still 2 years left to fill the cam'aign chest. Of the to' 20 /ontri"utors so far 2 Bim 4egula( ? ife of +erry 4egula@( and Cichard Fague ?/EO( Energy 4lus@ have all contri"uted A:0(000 each. #ll that money "uys a lot of seats.
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Fi)e Biggest Shale Cnterests S"ent 81&' Million <uring C!"act Fee <ebate, 7ecor(s Sho%, 1a"ital C(eas, *ohn L& Mice0, the Morning 1all, May 1?, 2 12, htt"#$$blogs&!call&co!$ca"itolDi(eas$2 12$ .$fi)e-biggest-shale-interests-s"ent-1'-!illion(uring-i!"act-fee-(ebate-recor(s-sho%&ht!l ,1, 1@7B>66, 6@M A 1/9L>B, *CM , G@J>7N@7 $ LC>=6>N/N6 G@J>7N@7, Follo% the Money&org, htt"#$$%%%&follo%the!oney&org$(atabase$StateGlance$can(i(ate&"ht!lEcF1, -2/onnecting the .ots5 )arcellus Shale 4lay 4layers 6>2 of 267
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Chapter 11 >%erica 'or SAhBale +he #merica!s <atural -as #lliance ?#<-#@&6:( an industry "acked front8grou'( entreats the readers with K e need relia"le energy to meet our growing needs. e need clean energy to 'rotect our health and the environment. #nd we need domestic energy to reduce our reliance on foreign oil and "ring 3o"s to our communities.L +he #<-# 'age features a "uilding with the #merican *lag 'ainted across its side. One of #<-#!s co8founders&6> is #u"rey )c/lendon( /EO of /hesa'eake Energy. #<-#!s mem"ers include /hesa'eake Energy( .evon( Encana( /a"ot Oil G -as( ;- -rou'( ;H4 ;illiton( +alisman Energy and Cange Cesources to name a few. Encana and +alisman Energy are /anadian cor'orations( ;- -rou' is from the Dnited Bingdom and ;H4 ;illiton is from #ustralia. +he )arcellus Shale has "een descri"ed as "oth the K<ew +e9asL and as the KSaudi #ra"ia of <atural -asL. <atural -as has "een 'romoted as the fuel that will "reak the oil ha"it and the media ads tug at our 'atriotic heartstrings K#merican <atural -as for #mericaL. +erry Engelder( 4rofessor of -eoscience at 4enn State Dniversity and /o84rinci'al of #''alachian *racture Systems Inc.( invoked the words of Iohn *. Bennedy during a 'resentation in Ianuary of 2066&6=( Kask not what your country can do for you( ask what you can do for your countryL. *rom there( Engelder went on to e9'lain why 'eo'le living in gas drilling fields are the sacrifice for the good of the country. aving flags and a marching "and 'laying Stars and Stri'es forever were not 'art of his 'resentation and sorely missed. In <ovem"er of 2066( Ceuters re'orted K/hesa'eake /EO O''oses DS 0<- E9'ortsL &675 The head o! Chesa&ea1e 5nergy, one o! the (iggest H$.$ natural gas drillers, does not %ant the country to shi& its huge gas reserves overseas, des&ite agreeing to su&&ly !uel !or a &ro&osed e8&ort &roFect$
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/!erica's Natural Gas /lliance, htt"#$$%%%&anga&us$%hy-natural-gas /ubrey Mc1len(on, 1hesa"ea0e >nergy, Polluters 9atch, htt"#$$%%%&"olluter%atch&co!$aubrey-!cclen(on ,1? 2->ngel(er 1u!ulati)e >n)iron!ental >ffects of Gas <rilling , Prof& 6erry >ngel(er of Penn State, ShaleShoc0, *an 1,, 2 11, htt"#$$%%%&youtube&co!$%atchE)F1u+a5NaC's, ,11hesa"ea0e chief o""oses e;"orting =S natural gas, 1hesa"ea0e 1>@ says ho"es =S %ill not e;"ort LNG, 7euters, No)& 1+& 2 11, htt"#$$u0&reuters&co!$article$2 11$11$1+$natgas-e;"ort-chesa"ea0e-i(=3N1>?/F1L?2 11111+ /onnecting the .ots5 )arcellus Shale 4lay 4layers 6>9 of 267
6ecord H$.$ natural gas &roduction has s&ar1ed a de(ate a(out %hether the resource should (e used more at home, &otentially !or %ider use in trans&ortation, or shi&&ed a(road to !etch higher &rices on the glo(al mar1et$ 3I want the right to e$port natural gas, but I am really hopeful that we never do," said Chesa&ea1e chie! e8ecutive Au(rey 7cClendon during a &anel discussion on natural gas vehicles in 4e% @or1 on Aednesday$ #merica has no e9'ort facilities for natural gas. e do have im'ort facilities( and more than one 'ro'osal to convert the im'ort facilities to e9'ort is "eing reviewed "y D.S. *ederal Energy Cegulatory /ommission ?*EC/@. #'ril 20625 +he D.S. *ederal Energy Cegulatory /ommission a''roved /heniere Energy Inc. ?0<-@!s 'ro'osal to "uild the nation!s largest natural8gas e9'ort terminal &69 in 0ouisiana. +he e9'ort terminal is e9'ected to "e o'erational "y 206:. So( what ha''ened to "eing ho'eful that we never e9'ort natural gas, C0ndustry giant, G#hesapea!e /nergy wants to e$port + 9A7=G says 7i1e .tice, senior vice &resident !or natural gas &roFects at :1lahoma City,(ased Chesa&ea1e 5nergy, %ould li1e to create ne% mar1ets !or the natural gas that is inundating the H., due in &art to dramatically increased &roduction in shale gas &lays$ Also, li9ue!ying and e8&orting shale gas !rom shale &lays li1e the -aynesville, 3arnett, and 5agle 2ord to glo(al mar1ets holds maFor &romise as the H. con!ronts an oversu&&ly o! chea& su&&lies, said analyst 6ic1 .mead o! 4avigant Consulting$E &regon KA &ro&osal to (uild a li9ue!ied natural gas (M4' terminal 421near the mouth o! the Colum(ia 6iver in Aarrenton is reentering the regulatory running, resuscitated (y (urgeoning 4orth American gas su&&lies a!ter (eing le!t !or dead (y o&&onents$ 3ac1ers o! the controversial :regon M4' terminal, %hich %ould sit Fust across @oungs 3ay !rom Astoria, have (rie!ed regulators and &oliticians on their $) (illion &lan and say they &lan to !ile an initial a&&lication (y ne8t %ee1 %ith the 2ederal 5nergy 6egulatory Commission$ Ahile the &ro&osal retains its &reviously &lanned ca&a(ility to o!!load M4' tan1ers !rom a(road, its economic rationale is based on e$porting #anadian gas through 0regon to lucrative mar!ets in *sia$L =ouisiana5 K.em&ra 5nergy has signed develo&ment agreements %ith t%o /a&anese conglomerates to hel& (uild a $) (illion li9ue!ied natural gas e8&ort terminal at its e8isting im&ort terminal in Mouisiana422, the .an =iego (ased com&any announced Tuesday$E
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1heniere >nergy 9ins =&S& /""ro)al for Gas->;"ort 6er!inal, Bloo!berg, By Brian 9ingfiel(, /"r 1+, 2 12, htt"#$$%%%&bloo!berg&co!$ne%s$2 12- ,-1+$cheniere-energy-%ins-u-s-a""ro)al-for-gas-e;"ort-ter!inal&ht!l ,2 1heniere >nergy - / 6suna!i /bout to Ha""en in the 9orl(%i(e 8LNG Mar0et, See0ing /l"ha, *an 1?, 2 12, htt"#$$see0ingal"ha&co!$instablog$'1 .2'-e;"stoc0tra(er$1+1.'1-cheniere-energy-a-tsuna!i-about-to-ha""en-in-the%orl(%i(e-lng-!ar0et ,21 @regon Li5uefie( Natural Gas e;"ort ter!inal "ro"ose( near the !outh of the 1olu!bia 7i)er, 9e(nes(ay, /"ril 1-, 2 12 By 6e( Sic0inger, 6he @regonian, htt"#$$%%%&oregonli)e&co!$business$in(e;&ssf$2 12$ ,$oregonDli5uifie(DnaturalDgasDe&ht!l ,22 Se!"ra signs on "artners for 8+B natural gas e;"ort ter!inal, =6 San <iego, By Morgan Lee, /"ril 1?, 2 12, htt"#$$%%%&utsan(iego&co!$ne%s$2 12$a"r$1?$se!"ra-%ins-bac0ing-natural-gas-e;"ort-ter!inal$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 6=0 of 267
'ro% $ul- to Canada May )+1) 8 E9celerate Energy( the D.S. liMuefied natural gas com'any founded "y Oklahoma "illionaire -eorge Baiser( 'lans to develo' the countryHs first floating 0<- e9'ort 'lant off the -ulf /oast&2$( while Coyal .utch Shell has 'artnered with #sian "uyers to "uild a 'lant in western /anada. Co8e Point# Maryland >pril )+1) 8 .ominion won a''roval from the D.S. .e'artment of Energy to use /ove 4oint for e9'orting u' to 6 "illion cu"ic feet of liMuefied natural gas to a"out 20 nations&2& with which the Dnited States has free8trade agreements. +he com'any is seeking federal 'ermission to allow shi'ments to any foreign country( e9ce't those "arred "ecause of em"argoes. Selling natural gas overseas reMuires turning it into a liMuid "y cooling it to minus82>0 degrees *( 'utting it in s'ecially insulated 0iMuefied <atural -as ?0<-@ shi's( and then heating and re8 gasifying it once it reaches its destination. +he e9'ense of re8gasification and shi''ing makes it easier and chea'er to sell gas in the D.S. instead( so why the sudden 'ush to e9'ort 0<-, /all it over 'roduction( low demand( or an Kunusually warm winterL 2 there!s a glut on the market and that has driven 'rices to a''ro9imately A2.70%));tu. )uch too low to drill economically( yet the <atural -as .rillers must drill or risk losing leases on land they have already staked out. +he more they drill( the "igger the glut and the lower the 'rice. In com'arison( natural gas 'rices are much higher in Ia'an and Euro'e. Dnder D.S. law( the Energy .e'artment cannot deny e9'orts to 6: countries that have "ilateral free trade agreements with the Dnited States( a list that will soon e9'and when 'acts with South Borea( /olom"ia and 4anama take effect. E9'orts to other countries are reviewed on a case8"y8case "asis
. Natural Gas Prices in =s, >uro"e an( *a"an 9hy =S Natural Gas Prices /re So Lo% ,2.
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6%o !ore North /!erican LNG e;"ort "roIects "lanne(, 1hicago 6ribune, May 1., 2 12, >(%ar( Mc/llister an( *effrey *ones, 7euters,htt"#$$articles&chicagotribune&co!$2 12- .-1.$ne%s$sns-rt-us-lng-e;"ort-na!ericabre-,e10)2 12 .1.D1Dter!inals-before-shale-gas-lng-cana(a-natural-gas ,2, <o!inion to !o)e for%ar( %ith 1o)e Point "roIect, Pro"ose( e;"ort facility (ra%s o""osition fro! Sierra 1lub, /"ril 2+, 2 12, By Hanah 1ho, 6he Balti!ore Sun, htt"#$$articles&balti!oresun&co!$2 12- ,-2+$ne%s$bs-b4-(o!inion-lng2 12 ,2+D1Dco)e-"oint-natural-gas-(o!inion-resources ,2. 9hy =S Natural Gas Prices /re So Lo% - /re 1hanges Nee(e(E, By Gail 6)erberg, Cn)esting&co!, 1o!!o(ities, Mar 2., 2 12, htt"#$$%%%&in)esting&co!$analysis$%hy-us-natural-gas-"rices-are-so-lo%---are-changes-nee(e(G2 -11- -2 /onnecting the .ots5 )arcellus Shale 4lay 4layers 6=6 of 267
The International Players <atural -as cor'orations stand to make larger 'rofits "y e9'orting. It should "e no sur'rise to find many #merican <atural -as cor'orations have deals with foreign cor'orations in Euro'e and #sia. Europe
,righa% Exploration @ Statoil>S> A.or/ayB 0)7 Statoil #S# from <orway acMuired ;righam E9'loration /o. for A&.& "illion in late 2066( ena"ling entry into the ;akken and +hree *orks 'lays in the illiston "asin in <orth .akota and )ontana. Statoil entered the DS shale gas industry in 2007 when it acMuired a stake in )arcellus shale gas acreage from /hesa'eake Energy and then in the Eagle *ord in a deal with S) Energy and +alisman. Statoil 'roduces dry gas from the )arcellus( dry gas and liMuids from the Eagle *ord( and now liMuids from the ;akken. Chesapea"e Energy Corporation @ Total EQP 4S>0)6 ATotal S> Su(sidiaryB On Ianuary 2:( 2060( /hesa'eake entered into a 3oint venture with +otal EG4 DS#( Inc.( a wholly owned su"sidiary of +otal S.#. ?+otal@( to develo' the /om'any!s ;arnett Shale leasehold in north8 central +e9as. Chesapea"e Energy Corporation @ Total S> 0);A'ranceB *ranceHs +otal S#( long esta"lished as an international oil giant( will 'ay A2.2: "illion for a 2: 'ercent stake in /hesa'eakeHs e9tensive lease holdings in the ;arnett Shale( the com'anies announced )onday. Chesapea"e Energy Corporation @ Statoil!ydro 0)<A.or/ayB 3oint venture transaction with StatoilHydro /hesa'eake sold a $2.:T interest in its )arcellus Shale assets in #''alachia for A$.$=: "illion of consideration and retained a >=.:T working interest. +he assets included a''ro9imately 6.7 million net acres of leasehold( of which StatoilHydro now owns a''ro9imately 0.> million net acres and /hesa'eake owns a''ro9imately 6.2 million net acres. /hesa'eake received A6.2: "illion in cash from StatoilHydro at closing and will receive a further A2.62: "illion from 2009 to 2062 through StatoilHydro funding =:T of /hesa'eakeHs >=.:T share of drilling and com'letion e9'enditures until the A2.62: "illion o"ligation has "een funded. /hesa'eake 'lans to continue acMuiring leasehold in the )arcellus Shale 'lay and StatoilHydro has the right to a $2.:T 'artici'ation in any such additional leasehold.
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Big o)erseas in)estors su""ly !o!entu! for North /!erican shale gro%th, @il A Finance *ournal, <on 9arlic0, 9arlic0>nergy& *uly ., 2 12 htt"#$$%%%&ogfI&co!$articles$2 12$ ?$big-o)erseas-in)estors-su""ly-!o!entu!-for-northa!erican-shale-gro%th&ht!l ,2? 1hesa"ea0e >nergy 1or" O1H3P, 7euters, htt"#$$%%%&reuters&co!$finance$stoc0s$co!"anyProfileEr"cF++Asy!bolF1H3 ,2Big o)erseas in)estors su""ly !o!entu! for North /!erican shale gro%th, @il A Finance *ournal, <on 9arlic0, 9arlic0>nergy& *uly ., 2 12 htt"#$$%%%&ogfI&co!$articles$2 12$ ?$big-o)erseas-in)estors-su""ly-!o!entu!-for-northa!erican-shale-gro%th&ht!l ,2: 1hesa"ea0e >nergy 1or"oration /nnounces 1losing of Marcellus Shale *oint Jenture %ith StatoilHy(ro, 1hesa"ea0e >nergy, No)e!ber 2., 2 - htt"#$$%%%&ch0&co!$ne%s$articles$Pages$122:--'&as"; /onnecting the .ots5 )arcellus Shale 4lay 4layers 6=2 of 267
East 2esources @ 2oyal 3utch Shell0*+ A.etherlandsB +he acMuisition of East Cesources( a 4ennsylvania8"ased oil and gas com'any( on Iuly 29( 2060( is the foundation for Shell!s new o'erations and growth in the #''alachian ;asin. Shell!s current )arcellus Shale o'erations are focused in +ioga /ounty. Exco 2esources Inc @ ,$ $roup A4nited :ingdo%B0*1 D.B. natural gas com'any ;-rou' said )onday that it has entered a further 3oint venture with E9co Cesources Inc. ( under which it will 'ay A9:0 million for a :0T interest in com'anies that hold E9coHs 'roducing and non8'roducing assets in the #''alachian ;asin. ;- -rou' said the deal will give it a :0T interest in a total of >:&(000 net acres in the #''alachian ;asin and increase its estimated gas resources "y 2.& trillion standard cu"ic feet. Sandridge Energy @ 2epsol 0*)ASpainB SandCidge Energy Inc. entered a A6 "illion deal with S'ainHs Ce'sol( who agreed to 'ay SandCidge A2:0 million and to finance A=:0 million in drilling e9'enses over $ years for a non8o'erated stake in two areas in the )ississi''ian reMuiring hori1ontal drilling and multistage fracturing. +he venture involves a 2:T non8 o'erated working interest in the E9tension )ississi''ian 'lay and a 6>T non8o'erated working interest in the Original )ississi''ian 'lay.
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Shell /""alachia, htt"#$$%%%&shell&us$aboutshell$"roIects-locations$a""alachia&ht!l >N1@ 7esources, Cnc& /nnounces 2 1 @"erating 7esults an( 2 11 @utloo0, Business 9ire, *anuary 2,, 2 11 htt"#$$%%%&business%ire&co!$ne%s$ho!e$2 11 12, ..22$en$>N1@-7esources-/nnounces-2 1 -@"erating-7esults-2 11 ,'2 Big o)erseas in)estors su""ly !o!entu! for North /!erican shale gro%th, @il A Finance *ournal, <on 9arlic0, 9arlic0>nergy& *uly ., 2 12 htt"#$$%%%&ogfI&co!$articles$2 12$ ?$big-o)erseas-in)estors-su""ly-!o!entu!-for-northa!erican-shale-gro%th&ht!l
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>SI>@>4ST2>=I> >nadar"o Petroleu% Corp @ Mitsui Q Co ACapanB 0** 3oint8venture agreement with )itsui EG4 DS# 00/( an affiliate of )itsui G /o.( 0td. ?<S.X5)I+SO@( where"y )itsui will 'artici'ate with #nadarko as a $2.:8'ercent 'artner in #nadarko!s )arcellus Shale assets( 'rimarily located in north8central 4ennsylvania( for a''ro9imately A6.& "illion. )itsui will earn a''ro9imately 600(000 net acres in e9change for funding 600 'ercent of #nadarko!s share of develo'ment costs in 2060( and 90 'ercent of these costs thereafter( with an estimated com'letion of all o"ligations "y 206$. In addition( )itsui will have the o''ortunity to 'urchase a $2.:8'ercent share of #nadarko!s e9isting wells and additional acreage acMuisitions "y reim"ursing a 'ro'ortionate share of #nadarko!s 'rior e9'enditures( currently estimated to "e a''ro9imately A600 million.
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Cnternational 1or"oration Cn)ests Cn Marcellus Shale <es"ite 1ontro)ersy, 1ornell <aily Sun, By Sun Staff, February 1-, 2 1 htt"#$$cornellsun&co!$section$ne%s$content$2 1 $ 2$1-$international-cor"oration-in)ests-!arcellus-shale-(es"itecontro)ers /onnecting the .ots5 )arcellus Shale 4lay 4layers 6=& of 267
Ca(ot &il Q $as @ &sa"a $as Co.# =td.0*0 ACapanB /a"otHs 3oint venture with Osaka transfers a $:T non8working interest in :0(000 acres of /a"otHs 4earsall Shale holdings to Osaka for A62: million in cash and A62: million in future drilling costs under a carry. +he 4earsall Shale underlies the Eagle *ord Shale at de'ths "etween =(000 and 62(000 feet( with a significantly thicker window than the Eagle *ord Shale at >00 to 900 feet Ca%eron =.$ @ Mitsu(ishi Corporation 0*1ACapanB /ameron 0<-( a unit of Sem'ra Energy ( said it signed agreements with )itsu"ishi /or' and )itsui G /o to develo' and construct a natural gas liMuefaction e9'ort facility in 0ouisiana. /ameron 0<- is strategically located near a ma3or 'i'eline hu" that serves nearly two8thirds of all D.S. natural gas markets. /ameron 0<- has access to a dee' shi' channel close to the shoreline and is far removed from highly 'o'ulated residential areas. +he recei't terminal was develo'ed to align with state and local government land8use 'lanning efforts and is fully 'ermitted CarriGo &il Q $as @ Su%ito%o Corp 0*7ACapanB Oil and gas e9'lorer /arri1o Oil G -as Inc has agreed to sell a 'ortion of its ;arnett Shale asset to a su"sidiary of Sumitomo /or' for A6:.= million. #s 'art of the deal( Ia'anHs Sumitomo will "uy a 62.: 'ercent stake in 6> of /arri1oHs ;arnett drilling units in +e9as and hel' in drilling other wells at the site. Sumitomo will also have the right to 'artici'ate in u' to :> future wells within these units. hile announcing the 3oint venture in .ecem"er( Sumitomo highlighted /arri1o!s holdings in the )arcellus and indicated its interest in e9'anding its shale 'resence in the D.S. CarriGo &il Q $as @ 2eliance Industries =i%ited A2I=B0*6 AIndiaB /arri1o Oil G -as announces new )arcellus 3oint venture with Celiance Industries and the 'artici'ation in the sale of #vista /a'ital 'artnersH 4ennsylvania 'ro'erties /arri1o will serve as the develo'ment o'erator for the 3oint venture and Celiance has the o'tion to act as a develo'ment o'erator in certain regions in the coming years as 'art of the 3oint venture. Chesapea"e Energy Corporation @ C.&&C =td 0*;AChinaB /<OO/ 'aying an initial A6.07 "illion to acMuire a one8third stake in /hesa'eakeHs Eagle *ord shale gas field( 'lus an additional A6.07 to fund drilling and com'letion costs.
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1abot @il A Gas 1or", Bloo!sburg Business%ee0, htt"#$$in)esting&business%ee0&co!$research$stoc0s$ne%s$article&as"E (oc3eyF+ -2 12 +22 :1 <@9*@N>S>N7GBSJ1 :,:-1A"ara!sFti!esta!"UU +$22$2 12G2 :#1 G2 /MG2 >6UU hea(lineUU1abotG2 @ilG2 G2+G2 GasG2 CnG2 G2,2. G2 MillionG2 6e;asG2 @ilG2 JentureG2 <ealG2 9ith G2 @sa0aG2 GasUU(ocSourceUU<o%G2 *onesG2 an(G2 1o!"anyG21G2 Cnc&UU"ro)i(erUU/12=C7>M><C/UU bri(gesy!bolUU=SV1@GAtic0erF1@G ,'. =P</6> 1-Se!"ra unit signs (eals for =S LNG e;"ort "lant, 7euters, 6ue /"r 1?, 2 12& htt"#$$%%%&reuters&co!$article$2 12$ ,$1?$se!"raenergy-i(=SL'>-FH.-J2 12 ,1? ,'+ =P</6> 1-1arri4o to sell "art of Barnett Shale asset to Su!ito!o, 7euters, 6ue <ec 1., 2 :, htt"#$$%%%&reuters&co!$article$2 :$12$1.$carri4o-i(=SSG>.B> H<2 :121. ,'? 7eliance Cn(ustries Li!ite(, 2 1 Ne%s 7elease, htt"#$$%%%&ril&co!$(o%nloa(s$"(f$P711 :2 1 &"(f ,'Foreign Cn)estors 6a" Cnto =&S& Shale Gas Play, Cn)esto"e(ia, @ctober 1., 2 1 , htt"#$$%%%&in)esto"e(ia&co!$stoc0analysis$2 1 $foreign-in)estors-ta"-into-u&s&-shale-gas-"lay-ceo-ch0-sto-tl!-eog-";(-s!1 1.&as";Hi;442L53yeN!* /onnecting the .ots5 )arcellus Shale 4lay 4layers 6=: of 267
Chesapea"e Energy Corporation @ ,!P ,illiton 0*< A>ustraliaB In *e"ruary 2066( #ustraliaHs ;H4 ;illiton 4etroleum agreed to "uy all of /hesa'eake Energy /or'.Hs interests in the *ayetteville shale in #rkansas for A&.=: "illion. ;H4 chief e9ecutive I. )ichael Oeager mentioned that the e9'ertise gained in the *ayetteville would "e useful in future develo'ments in #ustralia and elsewhere. Chesapea"e Energy Corporation @ China In8est%ent Corp 00+AChinaB /hina Investment /or' ?/I/@ and Singa'ore state investor +emasek Holdings would also take stakes in /hesa'eake( although the e9act investment amount was not disclosed( BI/ said in a statement. Chesapea"e Energy Corporation @ !opu In8est%ent Manage%ent Co. =td. 001 AChinaB said it was selling a 20 'ercent stake in its #''alachian o'erations to raise A$.: "illion to 'ay down de"t. Its first A>00 million will come from +emasek Holdings( the investment com'any that owns and manages money for the government of Singa'ore( and from Ho'u Investment )anagement /o. 0td.( a /hinese 'rivate eMuity firm. Chesapea"e Energy Corporation @ :orea In8est%ent Corp 00) ASouth :orea@5 would invest A200 million in /hesa'eake Energy /o as the DS <o.2 natural gas com'any was set to issue A900 million worth of converti"le 'referred stock. Chesapea"e Energy Corporation @ Te%ase" !oldings 00*ASingaporeB said it was selling a 20 'ercent stake in its #''alachian o'erations to raise A$.: "illion to 'ay down de"t. Its first A>00 million will come from +emasek Holdings( the investment com'any that owns and manages money for the government of Singa'ore( and from Ho'u Investment )anagement /o. 0td.( a /hinese 'rivate eMuity firm. Che8ron @ 2eliance Industries =i%ited A2T=B 000 AIndiaB Celiance Industries ?CI0@ today got a new 'artner for its )arcellus Shale gas assets in the DS( as #tlas Energy shareholders a''roved its merger with /hevron /or'oration. hile CI0 s'okes'erson declined to comment( a source close to the com'any said CI0 was keen and interested in the shale gas "usiness. Instead of working with #tlas Energy( it will now work with /hevron( he said. On Ianuary 60( Celiance Holdings DS#( an arm of CI0( had written to the #tlas Energy management( Muestioning why CI0 was not informed of the /hevron deal. CI0 was miffed a"out "eing ke't in dark and dis'leased with the fact that the valuation of )arcellus shale gas asset for /hevron deal was half of what Celiance 'aid for its &0 'er cent stake. CI0 has a &0 'er cent stake in the 3oint venture with #tlas
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Big o)erseas in)estors su""ly !o!entu! for North /!erican shale gro%th, @il A Finance *ournal, <on 9arlic0, 9arlic0>nergy& *uly ., 2 12 htt"#$$%%%&ogfI&co!$articles$2 12$ ?$big-o)erseas-in)estors-su""ly-!o!entu!-for-northa!erican-shale-gro%th&ht!l ,, 3C1, 1C1, 6e!ase0 to in)est in 1hesa"ea0e sta0e, <aily 6i!es, *une 2?, 2 1 , htt"#$$%%%&(ailyti!es&co!&"0$(efault&as"E"ageF2 1 ^ +^2?^storyD2?-+-2 1 D"g.D2 ,,1 ibi( ,,2 3orea Cn)est!ent# 6o Cn)est 82 Million Cn 1hesa"ea0e >nergy, /<JFN, htt"#$$%%%&a()fn&co!$nyse$Stoc0Ne%s&as"E stoc0ne%sF1H3AarticleF,'' 1+-? ,,' Ne% international in)estors ta" into Marcellus Shale rush, Pittsburgh Business 6i!es, htt"#$$%%%&bi4Iournals&co!$"ittsburgh$stories$2 1 $ .$1?$story'&ht!l ,,, 7CL gets ne% "artner for Marcellus, Business Stan(ar(, htt"#$$%%%&business-stan(ar(&co!$article$co!"anies$ril-gets-ne%"artner-for-!arcellus-111 21? :?D1&ht!l /onnecting the .ots5 )arcellus Shale 4lay 4layers 6=> of 267
Energy( which it had formed last #'ril. It had agreed to 'ay A6.= "illion for the said working interest in the underlying shale asset( )arcellus Shale. +his included A$&08 million u'front cash 'ayment and A6.$>8"illion drilling carry. 3e8on Energy Corporation @ Sinopec International Petroleu% Exploration and Production Co001 AChinaB /hina 4etrochemical /or'.( the second8largest /hinese oil com'any( agreed to "uy a one8third stake in five .evon Energy /or'. e9'loratory oil 'ro3ects in the D.S. for A900 million to e9'and holdings of reserves tra''ed in shale. +he com'any( known as Sino'ec -rou'( will 'ay A900 million in cash and as much as A6.> "illion in .evon!s future drilling costs( funding 62: wells in the coming year( according to a statement from .evon today. $astar Exploration =td @ >tinu% EQP# Inc. ASouth :oreaB &&> A=0 million )arcellus shale 3oint venture agreement with an affiliate of Seoul( South Borea8"ased investment firm #tinum 4artners /o. 0td. as 'art of the growing trend of international 'layer involvement in unconventional resources in <orth #merica. #tinum )arcellus I 00/( will initially acMuire a 26.&$T interest in all of -astarHs e9isting )arcellus Shale assets in est Firginia and 4ennsylvania( a''ro9imately $&(200 net acres( and certain 'roducing shallow conventional wells. !unt &il Co. @ Maru(eni Corp006 ACapanB Ia'anHs )aru"eni /or'. su"sidiary )aru"eni Eagle *ord 0td. agreed to "uy a $:T stake in Hunt Oil /o.Hs holdings in South +e9as. )aru"eni will 'ay drilling e9'enses for several hundred wells in future years. )aru"eni and Hunt 'lan to 3ointly acMuire additional Eagle *ord acreage "eyond the currently held :2(000 acres. Petroha/" Energy Corp @ ,!P ,illiton 00; A>ustraliaB ;H4 ;illiton announced an agreement in Iuly 2066 to acMuire 4etrohawk Energy /or'. for A62.6 "illion( giving ;H4 o'erated 'ositions in the Eagle *ord and Haynesville shale resource 'lays( and also in the 4ermian ;asin Pioneer .atural 2esources @ 2eliance Industries =i%ited A2I=B 00< AIndiaB Celiance Industries "uys &: 'ercent of 4ioneer <atural Cesources shale gas venture for A6.$ "illion Eagle *ord Shale 2ex Energy Corporation @ Su%ito%o Corp ACapanB01+ Ce9 Energy( an inde'endent oil and gas com'any( has entered into a 3oint venture agreement with Summit .iscovery Cesources(?su"sidiary of Sumitomo /or'@ a trading and investment firm in Ia'an.
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Sino"ec Grou" to Buy Sta0es in <e)on >nergy @il ProIects, Bloo!sberg Business%ee0, htt"#$$%%%&business%ee0&co!$ne%s$2 12- 1- ,$sino"ec-grou"-to-buy-sta0es-in-(e)on-energy-oil-"roIects&ht!l ,,+ Gastar >;"loration enters 8? M Marcellus *J %ith /tinu!, @ilAGas Financial *ournal, htt"#$$%%%&ogfI&co!$articles$2 1 $ :$gastar-e;"loration&ht!l ,,? Big o)erseas in)estors su""ly !o!entu! for North /!erican shale gro%th, @ilAGas Financial *ournal, htt"#$$%%%&ogfI&co!$articles$2 12$ ?$big-o)erseas-in)estors-su""ly-!o!entu!-for-north-a!erican-shale-gro%th&ht!l ,,Cbi( ,,: 7eliance Cn(ustries an( Pioneer Natural 7esources announce >agle For( shale Ioint )enture, >AP Mag, htt"#$$%%%&e"!ag&co!$>;"loration$7eliance-Cn(ustries-Pioneer-Natural-7esources-announce->agle-For(-shale-Ioint)entureD+21: ,. 7e; >nergy 1or"oration /nnounces Marcellus Shale *oint Jenture, ="(ate( Gui(ance an( Borro%ing Base Cncrease, NB1 Ne%s, htt"#$$%%%&nbcne%s&co!$i($'-:'?:2?$H&=MC<*=")1a2 /onnecting the .ots5 )arcellus Shale 4lay 4layers 6== of 267
4ursuant to the agreement( Ce9 Energy will sell and transfer interests in its )arcellus Shale assets located in 4ennsylvania( including 62(900 net acres( certain 'roducing )arcellus Shale wells and associated mid8stream assets( in a transaction valued at a''ro9imately A6&0.& million. Sa%son In8est%ent Co @ Itochu Corp ACapanB011 Ia'anHs Itochu /or'. was 'art of an investor grou' led "y BBC that acMuired +ulsa8"ased Samson Investment /o. for A=.2 "illion in <ovem"er( 2066. Samson o'erates in the ;akken( ;ossier( /ana oodford( /otton Falley( -ranite ash( -reen Civer( Haynesville( 4owder Civer and -reen Civer areas. Itochu 'reviously 'urchased a 2:T stake in the <io"rara shale oil 'lay in yoming from ).D Cesources -rou'. Sandridge Energy @ >tinu% EQP# Inc. ASouth :oreaB01) #tinum 4artners /o. 0td. acMuired a non8o'erated working interest in SandCidgeHs )ississi''ian fields for A:00 million( agreeing to a drilling carry o"ligation to 'ay 6$.2T of SandCidgeHs share of drilling and com'letion cost for wells u' to A2:0 million during a $8year 'eriod. SM Energy @ Mitsui Q Co01* ACapanB In mid82066 a su"sidiary of )itsui G /o. 0td. acMuired a 62.:T working interest in .enver8"ased S) Energy /o.Hs non8o'erated Eagle *ord shale 'osition. )itsui agreed to carry 90T of S) EnergyHs drilling and com'letion costs u' to a A>70 million ca'.
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Big o)erseas in)estors su""ly !o!entu! for North /!erican shale gro%th, @ilAGas Financial *ournal, htt"#$$%%%&ogfI&co!$articles$2 12$ ?$big-o)erseas-in)estors-su""ly-!o!entu!-for-north-a!erican-shale-gro%th&ht!l ,.2 ibi( ,.' ibi( /onnecting the .ots5 )arcellus Shale 4lay 4layers 6=7 of 267
6=9 of 267
Sinopec and Chesapea"e Energy Dnder increasing financial 'ressures( /hesa'eake Energy is trying to "ring things under control and raise some serious cash. It sold /HB8)idstream to $lo(al In-rastructure 4artners ?-I4@ *or A2.0 ;illion( &:&and will need to sell more assets Muickly. In )ay of 2062( /hesa'eake!s largest investor( Southeast #sset )anagement ?S#)@( was re'orted as saying5 C'e urge the board to be open to any offers to ac,uire the whole company,455E .outheastern Asset 7anagement 0nc$ Chairman and Chie! 58ecutive :!!icer :$ 7ason -a%1ins %rote in a letter to Chesa&ea1e today$ Ahile the shares have declined, C%e don<t %ant to use this large &rice,to,mar1et ga& as an e8cuse to re!use discussions %ith &otential ac9uirers %ho %ould (e %illing to &ay a &rice today that recogniLes the longer term value o! the com&any$E +he *inancial +imes( on Iune 20( 2062( re'orted K Sinopec, the Chinese oil and gas group456, is considering (idding !or (illions o! dollars< %orth o! assets o%ned (y Chesa&ea1e 5nergy, the H$.$ gas &roducer$ The &riLe asset in Chesa&ea1e<s dis&osal &rogram !or this year is its leases on 1$5 million acres ()"",""" hectares o! land in the Permian 3asin region o! %est Te8as and 4e% 7e8ico, one o! the most coveted areas o! the H$.$ !or oil develo&ment$
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1hesa"ea0e >nergy 1or"oration, 7euters, htt"#$$%%%&reuters&co!$finance$stoc0s$1H3$0ey-(e)elo"!ents 1hesa"ea0e Shoul( 1onsi(er Selling, Sharehol(er Says, Bloo!berg, htt"#$$%%%&bloo!berg&co!$ne%s$2 12- .?$chesa"ea0e-shoul(-be-o"en-to-any-offers-southeastern-says-1-&ht!l ,.+ Sino"ec eyes !o)e for 1hesa"ea0e, Financial 6i!es assetshtt"#$$%%%&ft&co!$c!s$s$ $ e-ac+1a-bac.-11e1--1e 1,,feab(c &ht!lHa;4426G2tMyrn /onnecting the .ots5 )arcellus Shale 4lay 4layers 670 of 267
Analysts suggested last month that the land could !etch $) (illion or more, although the !all in the &rice o! oil and the &ossi(ility o! !urther !alls to come are e8&ected to have cur(ed (uyers< %illingness and a(ility to &ay higher &rices$ The com&any ho&es to agree a deal (y the end o! .e&tem(er at the latest, &ossi(ly soonerL Sino'ec( if serious( is 'roceeding cautiously and learned the lessons from /<OO/ and Dnocal. &:= hether its Sino'ec or /<OO/ or +otal S#( foreign cor'orations have invested "illions in DS gas and oil drilling. +hese are not 3ust 3oint ventures( they are also the sale of cor'orations and%or leases. DS <atural -as cor'orations and their su''orters may try to down'lay the foreign cor'oration 'artici'ation( "ut sooner or later some"ody with a Muestion a"out their gas lease will make a 'hone call and discover their lease has "een sold to K4eggyL.
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1hinese <ro" 6a0eo)er Bi( for =nocal assets, L/ 6i!es, htt"#$$%%%&ft&co!$c!s$s$ $ e-ac+1a-bac.-11e1--1e 1,,feab(c &ht!lHa;4426G2tMyrn 676 of 267
Chapter 1) =etMs $o to the Mo8ies
Truthland +ruthland is a $&8minute movie created "y the Inde'endent 4etroleum #ssociation of #merica ?I4##@. +he +ruthland&:7 we"site 'romo states5 C0n the -3: movie C'asland,E 4e% @or1 City !ilmma1er /osh 2o8 tried to scare &eo&le into thin1ing that natural gas develo&ment and hydraulic !racturing are ne%, unregulated and dangerous$ 0t made one Pennsylvania mom living ato& the 7arcellus .hale %onder %hat she %as getting into$ .he as1ed environmentalists, academics and everyday &eo&le %hat they thin1$ 4o(ody got &aid to tal1 ; all they %ere as1ed %as to tell the truth$E In general( +ruthland is a $&8minute infomercial for the gas industry and is "eing caravanned around the various shale 'lays "y Energy8In8.e'th ?EI.@. #ttendance at the showings has "een small or mostly attended "y KfractivistsL. I am not going to go into the anatomy of +ruthland!s accuracy( there has "een 'lenty written on that to'ic5 see5 *racking Industry!s #nswer to K-aslandL5 .evised "y #stroturf 0o""ying -rou' and 4olitical #d #gency.&:9 I will "e looking at connections( or if you will 2 Kthe .O+SL. Truthland D the 3&TS #s 'reviously stated the movie was created "y I#44 and EI.. EI. is a 'ro3ect of the I#44.
(i!ure -: Bottom of Trut% an&movie.com we0"ite
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6ruthlan(, / "roIect of CP// an( >nergy-in-<e"th, htt"#$$%%%&truthlan(!o)ie&co!$ Frac0ing Cn(ustryLs /ns%er to WGaslan(X# <e)ise( by /stroturf Lobbying Grou" an( Political /( /gency, LittleSis, htt"#$$blog&littlesis&org$2 12$ +$1'$frac0ing-in(ustrys-ans%er-to-gaslan(-(e)ise(-by-astroturf-lobbying-grou"-an(-"oliticala(-agency$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 672 of 267
It a''ears the actual 'rofessionals filming( editing etc. of +ruthland may have "een done "y Strategic 4erce'tions( Inc. &>0?S4I@. S4I was also involved with the .irty *aces cam'aign &>6 ?anti coal "urning@( a 3oint 'ro3ect "y /hesa'eake Energy and the #merican 0ung #ssociation.
(i!ure 1
,+ ,+1
SPC Public /ffairs, htt"#$$%%%&strategic"erce"tioninc&co!$6ruthlan(D!o)ie&"h" SPC Public /ffairs, <irty Faces, htt"#$$%%%&strategic"erce"tioninc&co!$cleanS0yD1&"h" 67$ of 267
(i!ure 2
67& of 267
+ruthland!s we"site was originally registered to /hesa'eake Energy.
67: of 267
(i!ure . 3 C%e"apea4e Ener!$ Trut% an& ,e!i"tration =ater it /as changed to M'= !oldings# >TT. T24T!=>.3M&HIE.C&M.
(i!ure 5 ' M(6 7o &in! Trut% an& ,e!i"tration
67> of 267
+ruthland we"site registration was changed again. +his time it is listed as "eing registered to the I4##.
(i!ure /: Trut% an& "ite re!i"tere& to IPAA25-
Strategic 4erce'tions Inc. ?S4I@ is not what you would characteri1e as non8'artisan. 4erusing it the we"site( you will soon notice a 'ronounced tilt towards conservative and Ce'u"lican 'ositions. /EO of S4I is *red .avis. ;loom"erg ;usiness eek &>$descri"es him as5 C6e&u(lican media strategist 2red =avis has made some o! the most attention,gra((ing &olitical ads ever aired on television$E
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truthlan(!o)ie&co! registry %hois, htt"#$$%%%&%hois&co!$%hois$truthlan(!o)ie&co! Fre( <a)is's 1a!"aign 1re(entials, Bloo!sberg Business9ee0, htt"#$$i!ages&business%ee0&co!$sli(esho%s$2 12- ?2+$fre(-(a)iss-ca!"aign-cre(entials /onnecting the .ots5 )arcellus Shale 4lay 4layers 67= of 267
S4I we"site descri"es *red .avis in more detail in KDnusual History of *red .avis&>&L. Of s'ecial note here!s a short e9cer't5 ?Em'hasis added@ K=avis %as dra%n into the %orld o! &olitics in 1**4 %hen, a!ter having moved his (usiness to Mos Angeles in the mid +"Bs and rechristening it as .trategic Perce&tion 0nc$, he received a call !rom his uncle, then 0!lahoma #ongressman 1ames M. Inhofe , to hel& rescue his cam&aign !or the H$.$ .enate.L +ruthland has "een shown in 4ennsylvania( Ohio( <ew Oork and est Firginia in rented venues and sometimes there are 'anel XG# sessions following the showing. I don!t know if Homeland Security is taking names of +ruthland movie goers as they re'ortedly did with -asland attendees. '$asland' When $oing to the Mo8ie Means You're a Terrorist Huffington4ost( "y #lison Cose 0evy( 09%6:%60 E9cer't5 C-o%ever i! you sa% the !ilm in Pennsylvania, %atch out$ According to a lea1ed document !rom the .tate =e&artment o! -omeland .ecurity, &u(lished (y Pro Pu(lica, since so,called Genvironmental e8tremistsG &ose an increasing threat to the energy sector,G your seeing the !ilm in Pennsylvania could get your name circulated to la% en!orcement o!!icials eager to &rotect the gas drilling industry !rom ordinary citiLens li1e you$E )ay"e Homeland Security aren!t taking names for +ruthland attendees( "ut the <atural -as Industry will "e taking ste's to sMuash critics as one 4#8Ce'resentative found out. Ce' Iesse hite ?4#8&>th #llegheny( ;eaver and on his *ace"ook 'age5 ?Em'hasis #dded@ ashington /ounties@ 'osted the following
G/ust came !rom a screening o! GTruthlandG in my district 4)5, s&onsored (y 5nergy in =e&th, (ecause 0 al%ays %ant to learn and hear di!!ering vie%&oints so 0 can ma1e sure 0Bm ma1ing rational decisions (ased on my o%n e8&eriences$ Ahile the BmovieB %as nothing more than a condescending 34,minute in!omercial &roduced (y the energy industry, the really interesting &art %as the &anel discussion a!ter%ards
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=nusual History of Fre( <a)is, Strategic Perce"tions Cnc, htt"#$$%%%&strategic"erce"tioninc&co!$fre(&"h" Babes Cn 6ruthlan(, 3ee" 6a" 9ater Safe, htt"#$$0ee"ta"%atersafe&org$2 12$ ?$1-$babes-in-truthlan($ 677 of 267
0ndustry re&resentatives told the 211 &eo&le in attendance the gas industry is going to start getting more aggressive in attac!ing people who don)t agree with them , and that (ecause their !acts are totally right, there can (e no middle ground in the de(ate$ .o much !or that Bhonest and !act,(asedB discussion %e al%ays hear a(out (ut rarely see, huhD 7ay(e there %as more truth revealed than 0 realiLed tonight$$$G
(i!ure 8. ' ,ep +e""e 9%ite :PA'25t% A e!%en$# Beaver an& 9a"%in!ton Countie"; '2>C:.>TI&. /oming Soon to a rented hall near you will "e *rack<ation. +he original release coincided with the release of Pro%ised =and# starring Matt 3a%on.077 +he movie 'roduction costs were 'artially funded through the use of BickStarter 2 an on8line site for raising 'ro3ect funds. Industry gets cast in ''rac".ation#076' the latest documentary on the drilling de"ate <ovem"er $0( 2066 8 4itts"urgh 4ost -a1ette( ;y Erich Schwart1el E9cer't5 GThe !ilm, ho%ever, is (eing &artially !unded through donations on the >ic1starter %e(site, and the roster o! Ge8ecutive &roducersG %ho have donated at least $1 includes scores o! energy industry associates$ The !ilmma1ers said Thursday they &lan to return any donations given (y GseniorG %or1ers in the industry, %hich they de!ine as e8ecutives$G E9cer't5 C2rac14ation %as directed (y Phelim 7cAleer and Ann 7c5lhinney, a married cou&le living in 7arina del 6ey, Cali!$, %hose &revious su(Fects include Al 'ore and anti,coal environmentalists$ Their treatment o! natural gas drilling %ill Gloo1 at (oth sides o! the argument,G 7r$ 7cAleer said$E
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Pro!ise( Lan(, htt"#$$%%%&i!(b&co!$title$tt2 :1,?'$ Cn(ustry gets cast in 'Frac0Nation,' the latest (ocu!entary on the (rilling (ebate, Post-Ga4ette&co!, htt"#$$%%%&"ost-ga4ette&co!$stories$business$ne%s$in(ustry-gets-cast-in-frac0nation-the-latest-(ocu!entary-on-the-(rilling(ebate-22 -?1$Hi;4426G:01fce /onnecting the .ots5 )arcellus Shale 4lay 4layers 679 of 267
'rac".ation07; descri"es itself as C2rac14ation is a !eature documentary that %ill tell the truth a(out !rac1ing !or natural gas$ Aatch the video to !ind out more$E )c#leer!s definition of Klooking at "oth sides of the argumentL is to 'ortray 'ro8drillers in a very 'ositive light( and knock down the anti8drillers. He also features himself Muite 'rominently( 'erha's a more a''ro'riate title should have "een )c#leer<ation, =etMs ta"e a loo" at Mc>leer and McElhinney# shall /eK +ogether they own >nn and Pheli% Media ==C(07< and are documentary film makers. +o their credit their films include5 <ot Evil Iust rong( a re"uttal to #l -oreHs #n Inconvenient +ruth )ine Oour Own ;usiness. # review from +he -uardian descri"es the film as5 $reen go(lins @ > Michael Moore@style docu%entary depicts en8iron%entalists as %isguided %eddlers06+ )edia -uardian( "y Cory /arrol( ednesday 6 <ovem"er 200> E9cer'ts5 GThe !eature,length documentary !ollo%s the 7ichael 7oore tem&late o! cham&ioning the underdog, in this case im&overished communities in 6omania, 7adagascar and Chile, (ut instead o! attac1ing the mines it goes !or the ecologists$ 7ine @our :%n 3usiness, %hose 3ritish &remiere is this %ee1, casts the green movement as the in!luential villain o! a %orld%ide cam&aign to (loc1 develo&ment and deny &eo&le the chance o! Fo(s and a decent li!e$G Of the cou'le( )cElhinney seems to "e 'o'ular one. She!s descri"ed as +ea 4arty activist according to the /ollege /onservative. The 2eal Conspiracy > 2eport -ro% 2ight&nline 061 /ollege /onservative Iun 2& "y <icholas Bowalski E9cer't ?Em'hasis added@5 CThe inaugural Andre% 3reit(art A%ard !or 58cellence in :nline Activism and 0nvestigative 6e&orting %as announced at the closing dinner$ /ohn 2leischman o! 2lash 6e&ort I a site dedicated to e8&osing corru&tion in corru&tion,&lagued Cali!ornia I received the recognition$ %ocumentarian *nn Mc/lhinney, Tea Party activist and radio sho% host =ana Moesch, and &ollster .cott 6asmussen &aid tri(ute to his li!e<s %or1E Cight ing atch( a 'ro3ect of 4eo'le for the #merican ay( writes5
06)
>nn McElhinney @ Is This Wo%an Y'rac"ingM CraGyK /4#/

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2 #nn )cElhinney of *rack <ation at
Frac0nation, htt"#$$frac0nation&co!$ /nn A Pheli! Me(ia, htt"#$$%%%&annan("heli!&co!$ ,? Green goblins, / Michael Moore-style (ocu!entary (e"icts en)iron!entalists as !isgui(e( !e((lers, the Guar(ian, htt"#$$%%%&guar(ian&co&u0$!e(ia$2 +$no)$ 1$fil!&fil!ne%s ,?1 6he 7eal 1ons"iracy# / 7e"ort fro! 7ight@nline, htt"#$$thecollegeconser)ati)e&co!$2 12$ +$2,$the-real-cons"iracy-are"ort-fro!-rightonline$ /onnecting the .ots5 )arcellus Shale 4lay 4layers 690 of 267
Su"mitted "y Iosh -lasstetter on
ed( 02%6:%2062 8 =500'm
CAnn 7c5lhinney is very u&set a(out dum(, lying environmentalists and very e8cited a(out !rac1ing, %hich is a miraculous gi!t !rom 'od$ .he<s ma1ing a !ilm a(out it I 2rac1 4ation I and she &itched the CPAC cro%d last .aturday on her right,%ing res&onse to the critically acclaimed documentary 'asland$ The thesis o! 7c5lhinney<s manic, meandering s&eech is that !rac1ing is the (est thing to ever ha&&en to us, (ut it could (e s9uandered (y ignorant and dum( &eo&le %ho have (een tric1ed into o&&osing it (y scheming, dishonest environmentalists %ho agree %ith ?ladimir Putin and secretly hate the 3ald 5agle$E )ore recently( *racknation has "een shown "y Energy8in8.e'th in selected areas of 4ennsylvania and <ew Oork to coincide with the release of -asland8II( a documentary "y Iosh *o9. )c#leer was availa"le for Muestions and answers following the screening. #s e9'ected( 'ro8drilling Muestions and comments were cheerfully answered. However( don!t ask a serious Muestion a"out drilling concerns or 'oint out facts( )c#leer!s res'onse was to "erate( shout and insult the commenter.
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Cs 6his 9o!an KFrac0ingL 1ra4yE \ /nn Mc>lhinney of Frac0 Nation at 1P/1, 7ight9ing 9atch, htt"#$$%%%&right%ing%atch&org$content$%o!an-frac0ing-cra4y /onnecting the .ots5 )arcellus Shale 4lay 4layers 696 of 267
Chapter 1* 'rac4.-ocusE3 ;loom"erg news ran this article5 *rack Secrets "y +housands Bee' D.S. /lueless on ;y ;en Elgin( ;en3amin Haas G 4hil Bunt1 8 <ov $0( 2062 &=$ ells V
;riefly( the article states drilling com'anies are to disclose the chemicals used in fracking( yet drilling com'anies did not disclose 6%:th of the chemicals. hy, .rilling com'anies claim these Knon8disclosedL chemicals are trade secrets( 'ro'rietary and therefore e9em't from disclosure. E9cer't5 In #ugust( the largest well8servicing com'anies that worked in +e9as withheld the most information a"out frack 3o"s.&=& ells serviced "y Halli"urton and Houston8"ased ;aker Hughes Inc.( the second8 and third8largest oilfield services com'anies res'ectively( contained more than nine secrets 'er well according to re'orts filed "y the com'anies. *rack 3o"s "y Su'erior ell Services( the <a"ors su"sidiary( omitted the most information with more than $2 secrets 'er well. <ot to worry( the drilling com'anies disclose to *rac*ocus. E9cer't5 Oil and gas com'anies are 'ermitted to withhold disclosure of chemicals and their concentrations in any 'roduct that they claim to "e a trade secret under the +e9as law. Such claims can "e challenged "y state regulators and landowners of well sites or ad3acent 'arcels. Several other states that reMuire disclosure of fracking chemicals( including 0ouisiana( )ontana( <ew )e9ico and <orth .akota( also leave it u' to energy com'anies to determine what chemicals can "e la"eled secrets. <orth .akota!s rule reMuires com'anies to re'ort fracking chemicals to *rac*ocus( "eginning last #'ril. K e reMuire whatever *rac*ocus reMuires(L said #lison Citter( a s'okeswoman for the state .e'artment of )ineral Cesources! Oil and -as .ivision. +he *rac*ocus we"site states that chemicals should "e disclosed unless they!re a trade secret( as defined "y the D.S. Occu'ational Safety and Health #dministration. +he o'erators of *rac*ocus( which is su''orted "y funds from the industry( don!t check trade8secret claims or offer a way to challenge an e9em'tion. *rac*ocus&=: is managed "y the -round ater 4rotection /ouncil and Interstate Oil and -as /om'act /ommission. Dnless otherwise reMuired "y state authorities( 'artici'ation is voluntary. CeMuired or voluntary( there seems to "e little to no conseMuences if the chemical disclosure is inaccurate( incom'lete or not filed in a timely manner and note in the 'revious e9cer't 5 The operators o- 'rac'ocus# /hich is supported (y -unds -ro% the industry# donMt chec" trade@secret clai%s or o--er a /ay to challenge an exe%ption.
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Frac0ing Secrets by 6housan(s 3ee" =&S& 1lueless on 9ells, Bloo!berg, htt"#$$%%%&bloo!berg&co!$ne%s$2 12-11' $frac0-secrets-by-thousan(s-0ee"-u-s-clueless-on-%ells&ht!l ,?, Frac0ing Secrets by 6housan(s 3ee" =&S& 1lueless on 9ells, Bloo!berg, htt"#$$%%%&bloo!berg&co!$ne%s$2 12-11' $frac0-secrets-by-thousan(s-0ee"-u-s-clueless-on-%ells&ht!l ,?. FracFocus, htt"#$$fracfocus&org$%elco!e /onnecting the .ots5 )arcellus Shale 4lay 4layers 692 of 267
'rac'ocus do%ain is registered (y ,rothers Q Co%pany# a pu(lic relations -ir%.
;rothers G /om'any also re'resents5 &=>

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#merican /lean Skies *oundation ?front grou' for /hesa'eake Energy@ #mericaHs <atural -as #lliance /hesa'eake Energy /or'oration
Brothers A 1o!"any, htt"#$$%%%&broco&co!$%or0 69$ of 267
Energy #dvances <ew )e9ico Interstate Oil G -as /om'act /ommission Bansas Strong ?BO-C*@ Oklahoma Energy Cesources ;oard 4owering 4rogress
4u"lic relations cam'aigns( such as Energy8In8.e'th often 'oint to *rac*ocus as J'roofJ the natural gas industry is disclosing the chemicals. Dsing diesel fuel in drilling e9'licitly 'rohi"ited "y Safe .rinking ater #ct 8 not even the <atural -as Industry could wiggled out of this 'rovision( well actually there is wiggle room. 3iesel still used to '-rac"' /ells# 'rac'ocus data sho/ 066 )ike Soraghan( EGE re'orter V Energy ire5 *riday( #ugust 6=( 2062 (em&hasis added =iesel !uel has (een used to G!rac1G at least 13+ %ells in the Hnited .tates in the &ast year and a hal!, according to data filed by drillers with the EracEocus.org registry$ (ut if the definition of diesel proposed by D.S. /P* were used, that figure would rise to A=5, according to an /nergy'ire analysis of EracEocus data provided by PII0T Dpstream 9roup. The data !rom P0?:TBs =,2rac data(ase sho% that diesel !uel is still used in hydraulic !racturing, despite industry reassurances that it had been all but discontinued $ They also de!ine the terms o! the disagreement (et%een 5PA and the com&anies that do the !rac1ing as they try to !igure out regulations !or !rac1ing %ith diesel$ 5PABs de!inition %ould have covered a(out 27" more %ells$ 5nvironmental grou&s say !ederal la% re9uires a &ermit !or hydraulic !racturing %ith diesel, so each instance is an environmental violation$ .ites in Pennsylvania %here %ells %ere !rac1ed %ith !luids containing diesel !uel, according to the de!inition &ro&osed (y H$.$ 5PA$ GTheyBre violating the la%, and 5PA ought to (e en!orcing it,G said =usty -or%itt o! the 5nvironmental Aor1ing 'rou&$ :il and gas com&anies note they cannot get a &ermit (ecause 5PA has never created one$ *nd, they say, there is no indication that frac!ing with diesel has damaged the environment.
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HB<7/=LC1 F7/16=7CNG# <iesel still use( to 'frac0' %ells, FracFocus (ata sho%, >A> Publishing, LL1, htt"#$$%%%&eene%s&net$stories$1 .::+-: /onnecting the .ots5 )arcellus Shale 4lay 4layers 69& of 267
Harvard 0aw!s Environmental 0aw 4rogram issued *rac*ocus a "ig * as a com'liance tool( according to the #'ril 2$( 206$ study. +he study!s title says it all5 0E-#0 *C#/+DCES I< /HE)I/#0 .IS/0OSDCE 0# S 2 HO +HE FO0D<+#CO /HE)I/#0 .IS/0OSDCE CE-IS+CO *C#/*O/DS *#I0S #S #CE-D0#+OCO /O)40I#</E +OO0&=7 *rac*ocus has "een touted "y the energy industry and their su''orters as "eing a effective means of re'orting what chemicals are used in the 'rocess of hydraulic fracturing ?fracking@. /urrently( 66 states rely on it and the ;ureau of 0and )anagement ?;0)@ has 'ro'osed ado'ting *rac*ocus as a re'orting method for com'anies fracking on federal and tri"al lands. States reMuiring use of *rac*ocus include5 )ississi''i( Dtah( Oklahoma( 0ouisiana( )ontana( 4ennsylvania( South .akota( <orth .akota( +e9as( Ohio and /olorado. *rac*ocus is o'erated "y two grou's5 the -round ater 4rotection /ouncil( a grou' of state water officials; and the Interstate Oil and -as /om'act /ommission( an association of states that 'roduce the fuels. K e "elieve the research done "y the Harvard team fails to reflect the true ca'a"ilities of the *rac*ocus system and misre'resents the system!s relationshi' to state regulatory 'rograms(L the -round ater 4rotection /ouncil said in an e8 mailed statement &=9. +he Study cites $ shortcomings of *rac*ocus5
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Legal Fractures in 1he!ical <isclosure La%s# 9hy the Joluntary 1he!ical <isclosure 7egistry FracFocus Fails as a 7egulatory 1o!"liance 6ool, Har)ar( La% School, >n)iron!ental La% Progra!, Policy Cnitiati)e, htt"#$$blogs&la%&har)ar(&e(u$en)iron!entalla%"rogra!$files$2 1'$ ,$,-2'-2 1'-L>G/L-F7/16=7>S&"(f ,?: FracFocus Fails as Frac0ing <isclosure 6ool, Stu(y Fin(s, Bloo!berg, htt"#$$%%%&bloo!berg&co!$ne%s$2 1'- ,2'$fracfocus-fails-as-frac0ing-(isclosure-tool-stu(y-fin(s&ht!l /onnecting the .ots5 )arcellus Shale 4lay 4layers 69: of 267
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2E=>TE3 T& ME3IC>= $>$S /urrent and 'ending legislation often include the use of *rac*ocus as 3ustification to gag medical 'ersonnel "y saying the chemicals are listed on *rac*ocus!s site and availa"le. However( chemicals deemed as Ktrade secretsL are not on *rac*ocus( and medical 'ersonnel are "eing reMuired to sign a non8disclosure form for access to the Ktrade secretsL. States 'rotect Ktrade secretsL and other Kconfidential "usiness informationL from disclosure under 'u"lic information laws. *ederal laws also contain 'ro'rietary e9em'tions to 'u"lic disclosure reMuirements( including those set forth in the Occu'ational Safety and Health #ct ?OSH#@( the +o9ic Su"stances /ontrol #ct ?+S/#@( the *ederal Insecticide( *ungicide( and Codenticide #ct ?*I*C#@( and the Emergency 4lanning and /ommunity Cight to Bnow #ct ?E4/C#@. # com'arative review of these regimes suggests that three 'rocedures may contri"ute to higher rates of disclosure( while 'rotecting true trade secrets5 su"stantiation "y the com'any seeing 'rotection; agency verification; and 'u"lic challenge.
ST24CT42>==Y S:EWE3 T& 3ISC&42>$E C&22ECTI&.S hether it was 'oor ince'tion from get8go or for other reasons( the *rac*ocus disclosure 'rocedure for o'erators is cum"ersome and inconsistent. )ore often than not( when an error in re'orting is found( correcting that error takes a long and involved 'rocess. +his discourages o'erators from taking the time to make those corrections. In addition( *rac*ocus has a Kdeletion defaultL for forms that need to "e corrected. *rac*ocus ena"les well o'erators to 'ull down forms off the site when they Kdiscover an error in a disclosure "ut PareQ una"le to correct the error immediately.L hen the o'erator selects this function( the document is stored for 90 days in a tem'orary holding container. .uring this time(
/onnecting the .ots5 )arcellus Shale 4lay 4layers 69= of 267
the o'erator can re'lace the form with a corrected version( or restore the original form. However( if no action is taken( the form is deleted. It is easy to imagine a "usy com'any 'ulling down a form to correct later( and forgetting a"out the form. +herefore( *rac*ocus a''ears structurally skewed to discourage corrections and facilitate deletions. W!& IS $4>23I.$ T!E '&9 $4>23I.$ T!E !E. !&4SEK #''arently( no one is verifying the accuracy. /#S Cegistry <um"ers are uniMue numerical identifiers assigned "y the /HE)I/#0 #;S+C#/+S SECFI/E to every chemical descri"ed in the o'en scientific literature ?currently including those descri"ed from at least 69:= through the 'resent@ and including elements( isoto'es( organic and inorganic com'ounds( ions( organometallics( metals( nonstructura"le materials ?aka HDF/;Hs8 i.e.( materials of Dnknown( Faria"le /om'osition( or ;iological origin@. +hey are also referred to as /#S C<s and /#S <um"ers. *rac*ocus does not review the su"missions for com'leteness or accuracy. +ogether with the cum"ersome KcorrectionL 'rocess( the lack of review encourages inadeMuate re'orting "y o'erators. #s far as we know( an o'erator entering gummy "ears and ketchu' as chemical ingredients would go unnoticed. +here are no minimum state re'orting standards( or reMuirements for alternative com'liance should *rac*ocus fall off the face of the earth ?with the e9ce'tion of +e9as@.
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Chapter 10 I!S $lo(al Insights > $a%e o- Clones On .ecem"er 26( 2062( Iohn Hanger( former 4ennsylvania Secretary of the .e'artment of Environmental 4rotection ?.E4@ headlined a re'ort on his KIohn Hanger!s *acts of the .ayL "log . P> 2an"s Second In Shale $as Co(s 1+*#+++ Total >ccording To .e/ Study 0;+ E0-. 'lo(al 0nsight !inds that shale gas develo&ment has created 1"3,""" Fo(s in Pennsylvania$ The Common%ealth ran1s second in shale gas Fo(s, (ehind Te8as, according to the 0-. ne% re&ort that %as !unded in &art (y the oil and gas industry$ There is continuing controversy a(out the num(er o! Fo(s created (y shale gas develo&ment in Pennsylvania, %ith estimates ranging !rom less than 2",""" to as much as 24","""$ 0 %ill (e curious to see ho% the 0-. analysis %eathers li1ely criti9ues$E Hanger!s "log 'ost does Muestions the accuracy of the IH# -lo"al Insight!s re'ort. IHS -lo"al Insights descri"es itself as&765 ith a tradition of e9cellence and a diversity of su''liers( em'loyees and customers( IHS is the leading 'rovider of diverse glo"al market and economic information. One of IHS!s divisions is IHS /am"ridge Energy Cesearch #ssociate&72 ?IHS /EC#@. /EC# 'rovides5 #dvisory service mem"ershi' Industry forums )ulticlient studies #nalytics and forecasting /oal re'orts and 'u"lications IHS
IHS /EC# is also listed as an affiliate mem"er of the )assachusetts Institute of +echnology ?)I+@ Energy Initiative 'rogram. &7$ IHS has 'roduced & re'orts from 200982062 dealing with the economic "enefits of <atural -as .rilling. 20095 )easuring the Economic and Energy Im'acts of 4ro'osals to Cegulate Hydraulic *racturing 8 +ask 6 Ce'ort&7&. 4re'ared for the >%erican Petroleu% Institute A>PIB
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P/ 7an0s Secon( Cn Shale Gas *obs# 1 ', 6otal /ccor(ing 6o Ne% Stu(y, *ohn Hanger's Facts of 6he <ay, htt"#$$Iohnhanger&blogs"ot&co!$2 12$12$"a-ran0s-secon(-in-shale-gas-Iobs&ht!l ,-1 CHS at a Glance, htt"#$$%%%&ihs&co!$about$glance$in(e;&as"; ,-2 >nergy Strategy# CHS 1>7/, htt"#$$%%%&ihs&co!$"ro(ucts$cera$in(e;&as"; ,-' Massachusetts Cnstitute of 6echnology OMC6P >nergy Cnitiati)e "rogra!, Me!bers, htt"#$$!itei&!it&e(u$about$!e!bers ,-, Measuring the >cono!ic an( >nergy C!"acts of Pro"osals to 7egulate Hy(raulic Fracturing 6as0 1 7e"ort htt"#$$%%%&a"i&org$ne%sroo!$u"loa($ihsDgiDhy(raulicDfracturingDtas01&"(f /onnecting the .ots5 )arcellus Shale 4lay 4layers 699 of 267
#'ril 20665 +he Economic /ontri"ution of the Onshore Inde'endent Oil and <atural -as 4roducers to the D.S. Economy 8 *inal Ce'ort. &7:4re'ared for the Independent Petroleu% >ssociation o- >%erica AIP>>B .ecem"er 20665 +he Economic and Em'loyment /ontri"utions of Shale -as in the Dnited States. &7>4re'ared for the >%erican .atural $as >lliance A>.$>B Octo"er 20625 #merica!s <ew Energy *uture5 +he Dnconventional Oil and -as Cevolution and the DS Economy &7=8 Folume 65 <ational Economic /ontri"utions. Su''orted "y >%erican Petroleu% Institute# Institute -or )1st Century Energy# the >%erican Che%istry Council# and .atural $as Supply >ssociation .
#ll re'orts are similar in that they tout how great the <atural -as Industry is for the economy( and how many 3o"s will "e created. Cead one re'ort and you!ve read them all. -ee( almost like cloning. I4##!s 4u"lic Celations /am'aign 2 Energy8in8.e'th ?EI.@ features the #'ril 2066 re'ort on their we"site. +he )arcellus Shale /oalition ?)S/@ has the Octo"er 2062 re'ort availa"le for download. #<-# issued a 'ress release a"out the 2066 &77 re'ort "ut failed to mention the re'ort was 're'ared for #<-#. Similarly( the #merican /hemistry /ommittee ?#//@ touts the 2062 re'ort in a 'ress release&79 and forgot to mention their Ksu''ortL of the re'ort. +his is where we get into the -ame of /lones. e have a re'ort 're'ared "y a 'rivate cor'oration for a s'ecial interest grou'. +he s'ecial interest grou' issues a 'ress release a"out the re'ort and cites the 'rivate cor'oration while omitting who 'aid for the re'ort. +he 'u"lic( in general( and sadly many 3ournalists( rarely look "eyond the 'ress release. Hanger( in his "log 'ost( gives a link to a news'a'er article; did he actually read the re'ort, .id he notice who Ksu''ortedL the re'ort, It goes further than self8validation cloning "y 'ointing to one another. +hese re'orts ?or at least a 'ress release a"out re'orts@ go to legislators( who in turn issue their own 'ress releases a"out the re'ort. +he legislator!s 'ress release is then 'ointed out "y the s'ecial interest as further validation.
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6he >cono!ic 1ontribution of the @nshore Cn(e"en(ent @il an( Natural Gas Pro(ucers to the =&S& >cono!y - Final 7e"ort& htt"#$$%%%&i"aa&org$%"-content$u"loa(s$(o%nloa(s$2 12$ '$CHSFinal7e"ort&"(f ,-+ 6he >cono!ic an( >!"loy!ent 1ontributions of Shale Gas in the =nite( States& htt"#$$%%%&energyin(e"th&org$%"content$u"loa(s$2 11$12$Shale-Gas->cono!ic-C!"act-<ec-2 11D>MB1&"(f ,-? /!ericaLs Ne% >nergy Future# 6he =ncon)entional @il an( Gas 7e)olution an( the =S >cono!y Jolu!e 1# National >cono!ic 1ontributions, htt"#$$!arcelluscoalition&org$%"-content$u"loa(s$2 12$1 $CHSD/!ericas-Ne%->nergy-Future&"(f ,-/NG/ State!ent on the CHS Shale Gas >cono!ic Stu(y, htt"#$$%%%&"rne%s%ire&co!$ne%s-releases$anga-state!ent-onthe-ihs-shale-gas-econo!ic-stu(y-1'.2 212'&ht!l ,-: 1he!istry grou" "lease( by econo!ic "otential of shale (rilling, /0ron Beacon *ournal @nline, htt"#$$%%%&ohio&co!$blogs$(rilling$ohio-utica-shale-1&2:12: $che!istry-grou"-"lease(-by-econo!ic-"otential-of-shale(rilling-1&'.:11 /onnecting the .ots5 )arcellus Shale 4lay 4layers 200 of 267
Ce'. *red D'ton ?C8)I@ issued such a 'ress release in Octo"er 2062. of the House Energy G /ommerce /ommittee.
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D'ton is /hairman
D'ton has his own connections to <atural -as Interests. His cousin is Batie )c/lendon( wife of #u"rey )c/lendon( /EO of /hesa'eake Energy. E9er't from 4olitico article ?em'hasis added@5 *red D'ton finds itHs good to "e the chairman Chesa&ea1e 5nergy s&o1esman 7ichael >ehs said the natural gas giant<s $2",""" contri(utions !or the 2"12 cycle ; (eyond the $*,+"" given in 2"1" or $5,""" in 2""+ ; stem in &art !rom H&ton<s &rimary challenge$ CAe don<t (elieve in everything he &ro!esses, (ut %e thin1 he<s doing an e8cellent Fo( trying to (alance the (road interests o! our nation<s energy &olicies,E >ehs said$ CAe thin1 that<s certainly a lauda(le goal$E Cehs also gave another reason for bac!ing Dpton; #hesapea!e #/0 *ubrey Mc#lendon2s wife, Catie, is the chairman2s first cousin. 3'hen a family member is a member of #ongress, we tend to give them our full support,- Cehs said. +he .ecem"er 2066 re'ort was 're'ared for #<-# . &ne o- the co@-ounders o- >.$> /as >u(rey McClendon. See Steve HornHs .ecem"er 2062 article5 #<-# 0o""yist S'ins +hrough Cevolving .oor +o ork *or *red D'ton 0et!s take a look at the 'eo'le who 're'ared the re'orts. Essentially the 2066 and 2062 re'orts were written "y the same 'eo'le. e don!t know who wrote the 2009 re'orts "ecause there are no names on it. In Ianuary of 2062( Iannette ). ;arth( 4h... issued Co%%ents on I!S $lo(al Insight study# LThe Econo%ic and E%ploy%ent Contri(utions oShale $as in the 4nited State#L 3ece%(er )+11.
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S6=<B# Shale >nergy Pro(uction 1oul( Su""ort '&. Million *obs by 2 '., >nergy A 1o!!erce 1o!!ittee, =nite( States House of 7e"resentati)es, 1hair!an Fre( ="ton, htt"#$$energyco!!erce&house&go)$icy!i$stu(y-shale-energy"ro(uction-coul(-su""ort-'.-!illion-Iobs-2 '. /onnecting the .ots5 )arcellus Shale 4lay 4layers 206 of 267
I suggest you read the .ecem"er 2066 re'ort as 're'ared "y IHS( then read Iannette ;arth!s comments. <e9t read the 2062 re'ort and see if any of the omissions and errors mentioned "y ;arth were corrected.
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Chapter 11 !,W 2esources# The 'rac" Pac" I was checking my twitter account( and found an interesting K<ew *ollowerL( "y the name of )ichael Wehr. I clicked on his name to see if he was worth following "ack or not( and had a good chuckle. )ichael Wehr works for H; Cesources as Fice 4resident of *ederal #ffairs. H; Cesources has "een in my connect8the8dots data "ecause in *e"ruary 2009( the #merican 4etroleum Institute ?#4I@ hired H; Cesources. #ndrew ;rowning( a 'artner in H; Cesources is the lo""yist. ;rowning is the K;L in H; Cesources( .avid Holt is the KHL( and )ichael "ut we will get into their connections a "it later in this article. hatley is the K L(
I hadn!t done much Kdot chasingL with regards to H; Cesources( "ut since Wehr was nice enough to follow me on twitter( I decided that it was time. #nd "esides( if he is checking out my KtweetsL( I figure turn a"out is fair 'lay. +hat!s his Ktwitter 'icL to the left. <o "ig sur'rise( Wehr is a Senate Cevolving .oor( meaning he 'reviously worked in the DS Senate. +he Cevolving .oor is a freMuent occurrence. 20095 )inority Staff .irector( DS Senate Su"committee on #ging 2009820605 0egislative .irector( *ormer Senator -eorge S 0e)ieu9 ?C8*0@. 0e)ieu9 a''ointed on Se'tem"er 9( 2009( to the Dnited States Senate to fill the vacancy caused "y the resignation of )elMuiades C. )artine1; took the oath of office and served from Se'tem"er 60( 2009( to Ianuary $( 2066; did not seek election in 2060. 200>820095 0egislative .irector( *ormer Senator )el )artine1 ?C8*0@ )artine1 resigned stating he was homesick( however he had his share of controversy which included the +erry Schiavo memo. In 200: amid the right8to8life case involving +erri Schiavo( the "rain8damaged 4inellas /ounty woman who ultimately was removed from a feeding tu"e. )artine1( who sought federal review of the case( accidentally handed a .emocratic senator a memo detailing why the Schiavo "ill was good for Ce'u"licans. #nd there was also the 'ro"lem of illegal cam'aign contri"utions( and /am'aign *inance irregularities. 200$8200>5 0egislative #ssistant( Senator )itch )c/onnell ?C8BO@ 69998200$5 0egislative #ssistant( Senator +im Hutchinson ?C8#C@
S'inning through the revolving door( Wehr started u' a com'any called Chone Strategies. +he com'any looks defunct( it has 0 em'loyees( and not much on the we"site to indicate it is active. Chone Strategies descri"es itself as5 Chone Strategies is a full8service 'olitical intelligence and government relations firm s'eciali1ing in detailed 'olitical analysis and innovative strategic advocacy. Our e9'ertise in government relations and analysis has "een
"uilt through more than a decade of dealing with all as'ects of federal relations( 'olicy develo'ment and 'olitical strategy. Wehr is listed as a lo""yist for H; Cesources. +he to' industries he re'resents include +o"acco( )isc. Energy( #ir +rans'ort. +O;#//O,,, Hey( its another *racking Ioe /amelZ Echo /ham"er In any sector( the 'u"lic and 'olitical relation game is 'layed using a now 'o'ular techniMue called the echo cham"er. 4er Sourcewatch5 Echo cham"er is a colloMuial term used to descri"e a grou' of media outlets that tend to 'arrot each otherHs uncritical re'orts on the views of a single source( or that otherwise relies on unMuestioning re'etition of official sources. 4hili' )orris G the Echo /ham"er +echniMue5 In 6997 Iohn Scruggs( a ashington ../. lo""yist for 4hili' )orris descri"ed the Jecho cham"erJ a''roach to advocacy as constituting the re'etition of a selected message "y the most credi"le sources that surround a decision maker. J+he more a 'articular view or 'iece of information HechoesH or resonates through this grou'( the greater its im'act. -rassroots efforts are so effective in modern day advocacy 'rograms "ecause they cause many constituents to re'eat the same message to the target )em"er. -rassto's or JInfluentialsJ cam'aigns work "ecause those highest on the hierarchy scale( with the greatest degree of credi"ility( re'eat the same or similar messages. Oou will note that the echo cham"er effect can work in two different ways. *irst( the same message can rever"erate among multi'le sources toward the target )em"ers. *or e9am'le( the same information from 'olling data ca'tured in a single 'oll can "e re'eated "y the media( congressional colleagues( lo""yists and advertising. Second( similar "ut com'lementary messages can "e re'eated "y a single source...Either the re'etition or J'iling onJ a''roach 'rovide the same result5 enhanced credi"ility and influence of the essential message(J he e9'lained. +he 4hilli' )orris Echo /ham"er +echniMue is "eing a''lied to the issue of <atural -as. ;etween 6997 and today( the echo cham"er has e9'anded to include multi'le we"sites and "logs. +he echo cham"er no longer de'ends on traditional media outlets like television( radio( news'a'ers and maga1ines. In my research into the <atural -as 'u"lic relations( the echo cham"er reminds me more of a 'uffer fish. # 'uffer fish will inflate itself with water several times its original si1e to a''ear larger and discourage any 'otential 'redator from attacking. +he <atural -as industry also inflates its influence several times over through the use of and coo'eration "etween its front grou's. +he DS /ar"on standard is a good e9am'le of how the Kecho cham"erL has mor'hed into a 'uffer fish. ;ig Oil and /anada thwarted D.S. car"on standards 8 Emails show how a ashington lo""yist enlisted /anadian officials to "eat "ack D.S. car"on standards V ;y -eoff .em"icki V Salon.com V .ec 6:( 2066 E9cer't5 .es'ite their skills and e9'erience( )ar and hatley knew that defeating climate 'olicy reMuired allies. +hat!s why one of the first strategy 'ro'osals in hatley!s Ianuary 2:(
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2060( cam'aign "riefing to )ar was to team u' with Kaffiliated energy coalitions and trade associations( thought leaders( elected officials( unions and key allies.L +he goal was to enlist these 'layers to K"uild o''ositionL towards low car"on fuel standards Kin each of our target regions.L +he cam'aign a''arently needed Kstate8"ased and regional $rd 'arty advocates for /anadian oil sandsL to give it legitimacy. ho "etter to 'lay that role than the Kenergy consumer grou'sL R the airlines( truckers( railroads( highway users( shi''ers R most de'endent on oil, So item U6 on hatley!s K#ction 4lanL was to develo' Keasy8to8read and user friendly informational "riefsL for trade associations( unions and others. ith the 'ro'er motivation( these grou's could Kgenerate o'8 eds and letters to the editor of regional and local news'a'ers(L reads the 'ro'osal. #nd they could also Kwrite letters to governors and key elected officials.L +his su''osed 'o'ular groundswell would then "e legitimi1ed further( it e9'lained( "y a select grou' of Kthought leadersL( those 'u"lic intellectuals with the ear of 'olitical 'ower. hatley!s 'ro'osal suggested engaging with seven 'rominent think tanks( two of which( the /ato Institute and the Heritage *oundation( received millions of dollars in funding from Boch Industries to Muestion the science "ehind glo"al warming. +o kee' everything moving smooth( H; Cesources ?aka the /onsumer Energy #lliance@ would 'erform its traditional functions5 running anti8fuel standard ad cam'aigns( coordinating with such Kkey alliesL as the #merican 4etroleum Institute( lo""ying 'olicymakers and 'olitical leaders and generating as much media attention as 'ossi"le. If everything went to 'lan( hatley!s "riefing concluded( KH; Cesources will "e a"le to successfully draw critical local( state and regional attention to the adverse im'acts of efforts to restrict im'orts of /anadian oil sands into the Dnited States.L In other words( let the assault "eginZ E9cer't of a Ianuary 2>( 2066 email from <. Iou"ert to B. Boehler and .. Holt of /onsumer Energy #lliance. KEcho /ham"erL +hese "ullet 'oints are strategy u'dates 're'ared "y the /onsumer Energy #lliance and sent "y oil industry lo""yist )ichael hatley to #l"ertan di'lomat -ary )ar and others. <ote the "ullet la"eled K]Echo /ham"er! D'date G .iscussion.L +he fact that an oil industry8 su''orted 'u"lic relations grou' would e9'licitly make reference to creating an KEcho /ham"erL is Muite remarka"le. +his term is ty'ically 'art of le9icon used "y environmentalists to evoke shady fossil fuel cons'iracies R as in( Ksuch and such an oil com'any created an Echo /ham"er to s'read its 'ro'aganda across the "logos'hereNL In 'ractical terms( the /onsumer Energy #lliance!s KEcho /ham"erL is a strategy where any message created "y that grou' or its su''orters would "e KechoedL across many different "logs and we"sites( creating the im'ression of a large8scale movement. +he #lliance a''ears to have also utili1ed this tactic to rally su''ort for +rans/anada!s controversial Beystone E0 'i'eline.
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+he same techniMue has "een a''lied to the <atural -as issue. #4I has several we"sites as does the Inde'endent 4etroleum #ssociation of #merica ?I4##@. Fote8&8Energy another Energy8in8.e'th *rackin! *ront -rou's and 4C /am'aigns .rilling for .ots at H; Cesources hile Wehr did 'rovide some interest( the real K.O+SL were found at H; Cesources. #s mentioned 'reviously( H; has hired "y #4I as lo""yists. +he center'iece is /onsumer Energy #lliance ?/E#@( created "y )ichael hately. ?+he same hatley mentioned in ;ig Oil and /anada thwarted D.S. car"on standards@. hatley is /E#!s E9ecutive Fice84resident. <ote the use of the word K/onsumerL. +his is meant to give an inclusive feel to the general 'u"lic( after all we are all consumers( right, Other KinclusiveL feel good words often used are #merica( #merican( or /iti1ens. If the target audience is more local the name of a state or town or occu'ation may "e used. +his is all carefully designed to K'uffL things u' and make them seem larger. #n affiliate of /E# is Southeast Energy #lliance( where I4## and #4I are also affiliates of /E#. hatley is the E9ecutive .irector.
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Secure Our *uels is an interesting Khy"ridL as it has several connections. +he we"site is registered to .ittus /ommunications( which was taken over "y *. .ynamics. *. .ynamics then "ecame *+I /onsulting. Energy8in8.e'th ?EI.@ is a 'u"lic relations cam'aign "y I4##( and *+I /onsulting manages it. # num"er of *+I /onsulting em'loyees are also listed as KODC +E#)L on EI.. EI.!s we"site is also registered to .ittus /ommunications. *or more on EI. see5 Energy8in8.e'th ?EI.@ K-#SLroots 2 6 Energy8in8.e'th ?EI.@ K-#SLroots 2 2 Energy8in8.e'th ?EI.@ K-#SLroots 2 $ Dnder /O<+#/+ at the Secure our *uels we"site the emails for /E# are listed. <ote .avid Holt and )ichael hatley are listed. ?Oe'( the same .avid Holt and )ichael hatley mentioned in ;ig Oil and /anada thwarted D.S. car"on standards@. hat we have here are & Korgani1ations5 Secure Our *uels( /onsumer Energy #lliance( Southeast Energy #lliance( and Energy8in8.e'th under 2 trade grou's( #4I and I4##( and all are funded "y <atural -as /or'orations and their affiliated interests.
/onnecting the .ots5 )arcellus Shale 4lay 4layers 20= of 267
+he 'uffer fish 'uffs "igger and "igger. H; Cesources!s name comes from the $ 'artners. .avid Holt( the managing 'artner and 4resident( #ndrew ;rowning and )ichael hatley are 'artners. Holt is also 4resident of /E#. #ndrew ;rowning( through H; Cesources is a lo""yist for #4I( he has also "een a K-uest ;loggerL on EI.. ;rowning is the Fice 4resident of /E#. His revolving door s'ins at the DS .e'artment of Energy as S'ecial #ssistant( Office of *ossil *uels. )ichael hatley!s KdotsL are much more involved and will reMuire an additional diagram. 0et!s "egin with the current diagram "elow. hatley is credited with "eing the KcreatorL of the /E#. He is currently the E9ecutive Fice 4resident of /E# and the E9ecutive .irector of Southeast Energy #lliance. hatley!s Cevolving .oor5 *ormer /hief of Staff8 *ormer Sen. Eli1a"eth .ole DS .e't. of Energy 2 *ormer 4rinci'al .e'uty #ssistant .irector *ormer Senate /ounsel8 Ce'u"lican /onference
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OB 2 <e9t .iagram( 4leaseZ /onnected to /E# is .avid ;lackmon as E9ecutive .irector of the /E# +e9as /ha'ter. ;lackmon was .irector of -overnment #ffairs ?a lo""yist@ for the El 4aso /or'oration( a methane gas drilling and 'i'eline com'any "ased in Houston( +e9as. ;lackmon 'reviously served as /ommunications )anager for Shell Oil /om'any. ;lackmon is a )anaging .irector2Houston for *+I /onsulting( a *ield .irector8+e9as for EI.( and the Fice8/hair for I4##!s 0and and Coyalty /ommittee. hatley writes columns a"out the E0 4i'eline( car"on ca'ture( natural gas( climate change and energy related issues for +ownhall./om. +ownhall.com is a we"site that 'u"lishes numerous conservative columnists. *ormerly a 'ro3ect of the Heritage *oundation( it was 'urchased in 200> "y Salem /ommunications /or'oration. #lso writing for +ownhall.com is Steve Everly( a s'okeman for EI. and #ssistant Fice 4resident at *+I /onsulting. Everley was )anager of 4olicy Cesearch at #merican Solutions and a contri"uting author to +o Save #merica5 Sto''ing O"ama!s Secular8Socialist )achine "y <ewt -ingrich. 4rior to 3oining #merican Solutions( Everley worked as a research assistant at the #merican Enter'rise Institute.
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hat looked like a huge message 4C machine is not really that "ig( it 3ust 'uffs itself u' to look that way. +he cost of 'uffing u' the message is not chea' when you factor in lo""ying costs and cam'aign donations 2 and the cost is going u' as word s'reads through KfractivistL grou's.
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Chapter 17 Washington =egal 'oundation AW='B Coe Ca%el /ith =a/ ,oo"s 4erha's you!ve notice the similarities "etween +o"acco advertising and that of the <atural -as Industry. Oears ago the to"acco industry vehemently denied any connection "etween smoking and health issues. +o"acco advertising in the 69:0!s would often include doctors and other medical 'rofessionals in their ads as a method of allaying 'u"lic concerns. #fter all if you doctor smoked( what!s the harm, +he <atural -as industry hasn!t gone as far as including doctors or even actors dressed u' as doctors in their advertising( nonetheless( the advertising and talking 'oints do include words like KSafeL( K<aturalL( K/leanL. +hese words are selected to make the 'u"lic feel more comforta"le. +ESharon of the ;lue.a1e "log has noticed the <atural -as IndustryHs a''roach is like a tem'late lifted from the to"acco industryHs 'lay "ook. She tagged them as *racking Ioe /amels. # num"er of <atural -as s'okes'eo'le and other 'layers had roots in to"acco. +o"acco industry 'layers traded to fracking industry *racking!s Ioe /amel5 # new 'layer card *racking!s Ioe /amel designed a new advertising cam'aign # cou'le of e9am'les5 .avid Xuast( Senior Fice 4resident at *+I /onsulting and *ield .irector for the I44#%EI. office in /alifornia( 'reviously worked in <ew Oork( managing media relations on state and federal legislative and regulatory issues for 4hili' )orris where he develo'ed and e9ecuted communications strategies to hel' the com'any fight significant litigation( regulatory threats( and the 'ros'ect of a ma3or *ederal ta9 increase. Xuast fought Ksignificant litigationL for Philip Morris. .avid 4oole( Sr. Fice 4resident 2 -eneral /ounsel G /or'orate Secretary for Cange Cesources( was an attorney for Hunton G illiams( which was counsel for 4 hilip Morris. Hunton G illiams was counsel for 4hili' )orris. ?4)I!s Introduction to 4rivilege 0og and -lossary of <ames( Estate of ;url ;utler v. 4)I( et al( #'ril 69( 699>@. +hey are a law firm in Cichmond( Firginia ?DS#@ and were a ma3or law firm used "y 4hili' )orris /os. Inc.( circa 699$.?<I0 :%9%9&@ #ttorneys +. Iustin )oore III( Co"ert E.C. Huntley( were on the "oard of directors of 4hili' )orris /os. Inc.( circa 699$.?<I0 :%9%9&@ Seems when you drill into the "ackground of many <atural -as 'eo'le you strike to"acco. +he +o"acco industry also used Kscientific studiesL to 'rove the smoking had no adverse health effects. #lthough the <atural -as industry!s advertising doesn!t feature a "ig s'lashy ad a"out studies( it does freMuently tout re'orts and studies through its front grou's and 'u"lic relation
/onnecting the .ots5 )arcellus Shale 4lay 4layers 266 of 267
cam'aigns. One e9am'le from EI.%I4##5 D+ Study5 ]<o Evidence of -roundwater /ontamination! from H* 5 In a release( ;rad -ill( e9ecutive director of the Inde'endent Oil and -as #ssociation of <ew Oork ?IO-# of <O@( said the re'ort validates what regulators and other scientists have long maintained5 that hydraulic fracturing Kis a 'roven and safe method for e9tracting natural gas and oil.L +he 'ro"lem emerges when you start drilling into HO funded the studies( who 'roduced the studies and their connection to the <atural -as industry. )I+ Ioint *rackademia *rackademia strikes again *rackademics in *rackademia I like to "ring your attention to 0* mentioning of one 'articular study.
+he 0* stated in a news release5 +his week the ashington 0egal *oundation ? 0*@ filed formal comments with the <ew Oork State .e'artment of Environmental /onservation ?.E/@ urging it to come to a swift conclusion as to the future of hydraulic fracturing ?KfrackingL@ in the State. In particular# i- Aas expectedB state en8iron%ental experts deter%ine that -rac"ing does not pose a signi-icant threat o- en8iron%ental har%# 0* urged the .E/ to rule that local 3urisdictions are not 'ermitted to veto such activity within their "orders. On 0* we"'age5 In re Hydraulic *racturing in <ew Oork State /ase .ate5 6%66%206$ 4ro3ect <ame5 Environmental 0aw 4ro3ect On Ianuary 66( 206$( 0* filed formal comments with the <ew Oork .e'artment of Environmental /onservation ?.E/@( urging it to move forward with its 'ro'osed regulation of hydraulic fracturing ?KfrackingL@ within the State. *racking is a method of e9tracting oil and gas that has led to significant 'roduction increases throughout the D.S. in recent years( "ut <ew Oork has im'osed a moratorium on all fracking for the 'ast five years while it studies 'otential environmental concerns. The Co%%issioner o- !ealth is expected soon to issue a study that /ill conclude that the health haGards o- -rac"ing are %ini%al# pro8ided that ade?uate en8iron%ental controls are put in place. 0* recommended that once that re'ort is issued( .E/ should immediately5 ?6@ issue its regulations and lift its moratorium on fracking; and ?2@ make clear that local 3urisdictions are not 'ermitted to im'ose their own moratoriums. *rom 0*Hs comments to <O .E/5 5 4age : e9cer't5 +he .E/!s regulations res'ond to environmental and health concerns( and the stateMs o/n recently released report signals that hydraulic -racturing can (e pursued /ith no detri%ental e--ect on pu(lic health or sa-ety. +he re'ort concludes( KSignificant adverse im'acts on human health are not e9'ected from routine HFH*. -as .rilling Is /alled Safe in <ew Oork V ;y .#<<O H#BI) V <O +imes V 4u"lished5 Ianuary $( 206$ E9cer't5 +he eight8'age analysis is a summary of 'revious research "y the state and others( and concludes that fracking can "e done safely. It delves into the 'otential im'act of fracking
/onnecting the .ots5 )arcellus Shale 4lay 4layers 262 of 267
on water resources( on naturally occurring radiological material found in the ground( on air emissions and on K'otential socioeconomic and Muality8of8life im'acts.L 0* has em'hasi1ed O<E 7 'age analysis which states fracking /#< "e done safely. 4erha's it can "e done safely( "ut I00 it "e done safely, ill cor'orations "e willing to forego some 'rofits in order to actually do it safely, +he 4ennsylvania #lliance for /lean ater and #ir has an on8going 'ro3ect called 0ist of the Harmed. It was u'dated as of Ianuary 62( 206$( and now contains a list of the ==7 individuals and families that have "een harmed "y fracking ?or shale gas 'roduction@ in the DS. +hese are taken from news re'orts or individuals coming forward with their stories. +here are many( many more. It is a wide chasm "etween JcanJ and JwillJ. ashington 0egal *oundation ? 0*@ ;ackground 0* descri"es its mission as5 <ational in sco'e( the ashington 0egal *oundation ? 0*@ works with our allies in government and our legal system to maintain "alance in the /ourts and hel' our government strengthen #mericaHs free enter'rise system. 0* cham'ions free market 'rinci'les( limited and accounta"le government( individual rights( "usiness civil li"erties( and legal ethics. 0* is a uniMue institution with three essential cornerstone 'rograms5 sha'ing 'u"lic 'olicy through aggressive litigation and advocacy 'u"lishing timely legal studies educating 'olicy8makers and the 'u"lic through e9tensive communications outreach 4er Source atch5 +he ashington 0egal *oundation ? 0*@ was esta"lished in 69== to Jfight activist lawyers( regulators( and intrusive government agencies at the federal and state levels( in the courts and regulatory agencies across the countryJ. 0* is classified as a national( non8'rofit( ta98e9em't 'u"lic foundation under section :06?c@?$@ of the Internal Cevenue /ode. 0* has a s'ecial Environmental 0aw 4ro3ect( descri"ed as5 Environmental e9tremist grou's( activist courts( and the media foster the false notion that the environment is always threatened "y economic activities. +he ashington 0egal *oundation!s Environmental 0aw 4ro3ect 'romotes a rational "alance "etween environmental 'rotection( on one hand( and economic growth and 'ro'erty rights on the other. <otice the re'eating themes, #ctivists, Cegulators, Intrusive government agencies, Essentially anyone e9'ressing o'inions which are contrary to the cor'orate world( and threatens to u'set the -olden #''le /art is an KactivistL. Cegulations are "ad "ecause the Kintrusive government agencyL will cost the cor'orations money "y reMuiring safeguards to 'rotect 'eo'le. +he only economic growth the 0* is interested in is that of the cor'orations they re'resent. *rom 'age > of 0*!s comments to <O .E/ 8 e9cer't5 If 'olicy is to "e truly science8driven( rather than 'ursued on the "asis of un8eri-ied acti8ist clai%s and hyper(olic rhetoric# the .E/ will heed the results of its own study and 'ermit the develo'ment of shale gas.
=etMs Connect so%e W=' 3ots +he 0egal 4olicy ;oard of 0* has a num"er of familiar names. +hese include Benneth Starr of former 4resident ;ill /linton8)onica 0ewinsky fame( +ed Olson who re'resented then /andidate -eorge . ;ush in the ;ush F -ore Su'reme /ourt decision. +here is also an array of -overnors ?'ast and current@( #ttorney -enerals( 0aw 4rofessors and 4artners of nota"le law firms. ith regards to <atural -as .rilling( two names 'o' out. Cichard +horn"urgh( /ounsel of BG0 -ates 004( and Cichard illard( 4artner of Ste'toe8Iohnson 004. +horn"urgh is /hairman of 0*( and illard is /hairman Emeritus.
:Q= $ates .atural $as 3ots 4er BG0 -ates5 Energy( Infrastructure and Cesources5 Our energy( infrastructure and resources 'ractice integrates the many disci'lines involved in 'ro3ect8related re'resentations. e re'resent clients with o'erations in the oil and gas( mining and minerals( electric 'ower( trans'ortation( water and wastewater( construction and related industries in <orth and South #merica( estern( /entral and Eastern Euro'e( Cussia and the /IS States( #ustralia( the )iddle East( #frica and #sia. Our D.S. oil and gas 'ractice is recogni1ed for its e9tensive e9'erience in "oth conventional and unconventional formations( including the largest onshore domestic shale 'lays. BG0 -ates "oasts5 /or'orate ;oard )em"er )aga1ine( in association with *+I /onsulting( Inc.( ranked BG0 -ates as one of the to' 2: law firms in its 2062 list of K#merica!s ;est /or'orate 0aw *irms.L ;ased on a survey of nearly 2(000 general counsel of D.S. 'u"licly held com'anies( the rankings focused on those law firms that survey res'ondents said they would engage in a variety of im'ortant legal su"3ect matters. <O+E *+I /O<SD0+I<-( I</.... Cemem"er that .avid Xuast was mentioned earlier as "eing a Senior Fice 4resident at *+I /onsulting( Inc. Ce'resentative /lients of BG0 -ates include5 .uke Energy /or'oration Halli"urton /om'any 44- Industries( Inc. 440 /or'oration #s side notes5 .uke Energy is an #ssociate )em"ers with )I+ Energy Initiative ?)I+EI@ 44- Industries is a mem"er of the Energy #lliance of -reater 4itts"urgh. BG0 -ates is an associate mem"er of the )arcellus Shale /oalition( as is Halli"urton /om'any # num"er of their lo""yists re'resent 4ea"ody Energy( Sa''hire Energy( <e9tEnergy and the Environmental .efense *und among others. +alk a"out conflicting lo""ying. /lick here for a list of 2066 lo""yists from BG0 -ates. See also BG0 -ates 8 2062 0o""ying 'er O'enSecrets.com.
/onnecting the .ots5 )arcellus Shale 4lay 4layers 26& of 267
+heir connections to +o"acco, BG0 -ates received lo""ying income of A6=0(000 from International /igars%4i'e Cetailers #ssn( and A90(000 /igar Cights of #merica in 2062. #nd in the smoking room5 I4/4CHs ashington lo""yists( BG0 -ates( were instrumental in organi1ing the I4/4C teams and their visits with /ongressional mem"ers and their staffs on the day after the //# rece'tion.J +he /ongressional /igar #ssociation and International 4remium /igar G 4i'e Cetailers #ssociation ?I4/4C@ are clients of BG0 -ates. Ste'toe G Iohnson 004 Ste'toe G Iohnson descri"es itself5 Over the 'ast si9 decades( Ste'toe has esta"lished a re'utation for vigorous advocacy in com'le9 litigation and ar"itration( successful re'resentation of clients "efore governmental agencies( and creative and 'ractical advice in guiding "usiness transactions. +he firm has more than :00 lawyers and other 'rofessionals in offices in ;ei3ing( ;russels( /entury /ity( /hicago( 0ondon( 0os #ngeles( <ew Oork( 4hoeni9( and ashington. +he firm is known for its a"ility to hel' clients solve high8stakes( multi8dimensional 'ro"lems( 'articularly those with a governmental as'ect. S'ecific to Energy5 Ste'toe G IohnsonHs energy team 'rovides com'rehensive services to the energy industry across the firmHs ma3or 'ractices. +eam attorneys have "een to' listed in a num"er of energy8related 'ractice areas "y the authors of +he ;est 0awyers in #merica in Ohio( 4ennsylvania and est Firginia( including Energy 0aw( Oil G -as 0aw( <atural Cesources 0aw and Ceal Estate 0aw. +hese team mem"ers 'rovide solutions tailored to the s'ecific needs of energy develo'ers throughout Bentucky( Ohio( 4ennsylvania( +e9as and est Firginia. #nd they em'hasis JStrategic locations throughout the )arcellus and Dtica shale 'laysJ 4er O'enSecrets.com( Ste'toe G IohnsonHs 0o""ying Income from Oil G -as interests5 #merican -as #ssn A20(000 /hemte9 International A690(000 Soc of Ind -asoline )arketers of #merica A260(000 +hey are also #ssociate )em"ers of the )arcellus Shale /oalition( #ffiliate )em"er of )I+ Energy Initiative ?)I+EI@ ( and KScoutL mem"er of the Ohio Oil G -as #ssociation ?OO-#@. OO-# mem"ershi' is interesting "ecause +homas Stewart is listed as a mem"er of OO-#!s ;oard of +rustees and its E9ecutive Fice 4resident. Stewart is a "usy kind of guy( he is also E9ecutive Fice 4resident of I4##!s Energy8in8.e'th Ohio 4ro3ect( and a mem"er of the Interstate Oil and -as /om'act /ommission. Interstate Oil and -as /om'act /ommission and -round ater 4rotection /ouncil manage *rac*ocus( an industry site for disclosure of <O<84CO4CI#+OCO chemicals used in fracking. ?*or more on *rac*ocus see5 *racD<*ocused@ &ther W=' .atural $as Pu(lications
/onnecting the .ots5 )arcellus Shale 4lay 4layers 26: of 267
HO.C#D0I/ *C#/+DCI<- G +S/#5 E4#!S SDC4CISI<- )OFE #<. I+S S EE4I<- I)40I/#+IO<S V "y Eric aeckerlin and Ioe -reen )ISI<*OC)#+IO< /#)4#I-< +#C-E+S HO.C#D0I/ *C#/+DCI<- V "y Steve Everley
+he Everley article is essentially regurgitation of the <atural -as industry talking 'oints( and "ashing those who o''ose the industriali1ation of communities. It is not so much as what he writes "ut rather his own set of K.otsL.
Everley is a S'okesman for I4##%EI.( and #ssistant Fice84resident for *+I /onsulting( Inc. He is listed as a columnist for +ownhall.com.( which is a we"site that 'u"lishes numerous conservative columnists. *ormerly a 'ro3ect of the Heritage *oundation( it was 'urchased in 200> "y Salem /ommunications /or'oration. 4er his "io on +ownhall.com5 Steve Everley is )anager of 4olicy Cesearch at #merican Solutions and a contri"uting author of +o Save #merica5 Sto''ing O"ama!s Secular8Socialist )achine "y <ewt -ingrich. 4rior to 3oining #merican Solutions( Everley worked as a research assistant at the #merican Enter'rise Institute. ;e sure to read +ESharonHs e9change with Everley in *racking!s Ioe /amel Seeks <ew /areer.
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hat does all mean now the making a difference.
0* has 3um'ed into the *racking *ray, It means we are
+he <atural -as Industry are running scared( 'ulling out the ;I- -D<S and s'ending more money on litigation( 'u"lic relations( and lo""ying. /onvincing 'eo'le that <atural -as drilling and its related infrastructure is getting more e9'ensive. +hey have even engaged a com'any called K/ontrol Cisks -rou'L ?/C-@ to evaluate the KfractivistL 'ro"lem. /C- has issued a Kwhite 'a'erL entitled5 T!E $=&,>= >.TI@ '2>C:I.$ M&HEME.T D What it /ants# ho/ it operates and /hatMs next. Cead5 /ontrol Cisks -rou' 0imited ?/C-@ 3oins the *racking 4lay #ll of our little *ractivist grou's are making a difference. Bee' it u'. )ake!em S'end )OCE money. If you took the time to read 0*!s comments to the <O .E/( they s'end an overwhelming amount on words em'hasi1ing economic "enefits and 3o"s. Economics and Io"s are the "ig shiny the <atural -as industry waves in its talking 'oints. +here is very little on health issues( environmental im'act( and what industriali1ation will do to communities. hich makes me wonder how much time did 0* actually s'end in researching the issue as o''osed to doing a co'y%'aste of the talking 'oints,
26= of 267
Chapter 16 'rac"ade%ia ,est EScienceF Money Can ,uy
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Connecting the Dots: Marcellus Shale Players

DRAFT WORK IN PROGRESS By Dory Hippauf

2012 by Dory Hippauf

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!oc"ey# $as and Political Ca%paigns

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SPC Political, htt"#$$%%%&strategic"erce"tioninc&co!$cleanS0yD2&"h" 6= of 267

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However( I had my thinking ca' on and saved the orginal 'age5

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/onnecting the .ots5 )arcellus Shale 4lay 4layers

Samuel H. Smith Iake /orman )ichael -er"er

Ce'u"lican Ce'u"lican .emocratic

>(:00.00 &(000.00 $(:00.00

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/onnecting the .ots5 )arcellus Shale 4lay 4layers

/onnecting the .ots5 )arcellus Shale 4lay 4layers

/onnecting the .ots5 )arcellus Shale 4lay 4layers

/onnecting the .ots5 )arcellus Shale 4lay 4layers

/onnecting the .ots5 )arcellus Shale 4lay 4layers

/onnecting the .ots5 )arcellus Shale 4lay 4layers

/onnecting the .ots5 )arcellus Shale 4lay 4layers

/onnecting the .ots5 )arcellus Shale 4lay 4layers

/onnecting the .ots5 )arcellus Shale 4lay 4layers

/onnecting the .ots5 )arcellus Shale 4lay 4layers

/onnecting the .ots5 )arcellus Shale 4lay 4layers

/onnecting the .ots5 )arcellus Shale 4lay 4layers

/onnecting the .ots5 )arcellus Shale 4lay 4layers

"y citing similar situation concerning )artha

Chesapea"e CE& too" 51.1 (illion in shrouded personal

est ?+ /@ in Ianuary 2066

/onnecting the .ots5 )arcellus Shale 4lay 4layers

Excerpt from IPAA EID Announcment

In a XG# 'a'er( EI. stated

/onnecting the .ots5 )arcellus Shale 4lay 4layers

EID ' (D Dittu" Communication"

Codger JIt should on and defeat

a"out ties to congressional

is a J'artnerJ of Institute for Energy Celations ?em'hasis

/onnecting the .ots5 )arcellus Shale 4lay 4layers

/onnecting the .ots5 )arcellus Shale 4lay 4layers

/onnecting the .ots5 )arcellus Shale 4lay 4layers

>nergy Cn <e"th, Meet the 6ea!, htt"#$$%%%&energyin(e"th&org$!eet-the-tea!$ 606 of 267

/onnecting the .ots5 )arcellus Shale 4lay 4layers

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Pennsyl)ania Cnfrastructure Cn)est!ent /uthority OP>NNJ>S6P B@/7< M>MB>7S, htt"#$$%%%&"ortal&state&"a&us$"ortal$ser)er&"t$co!!unity$aboutDus$:'2 $hi(eDboar(DofD(irectors$..1::1

?E4#@ determined the water to "e safe

Marcellus!oney&org, htt"#$$!arcellus!oney&org$ 62: of 267

/onnecting the .ots5 )arcellus Shale 4lay 4layers

/onnecting the .ots5 )arcellus Shale 4lay 4layers

'igure 1 Screen Print MSC $uiding Principles*7*

/onnecting the .ots5 )arcellus Shale 4lay 4layers

>%erican Clean S"ies 'oundation

/onnecting the .ots5 )arcellus Shale 4lay 4layers

Top 1+ 3onors Pennsyl8ania )+11@)+1)

'igure * 2e8ol8ing 3oor

Lobbying, 9i0i"e(ia, htt"#$$en&%i0i"e(ia&org$%i0i$Lobbying 6&0 of 267

/onnecting the .ots5 )arcellus Shale 4lay 4layers

Suggestions -or 'inal Marcellus Shale =egislation

/onnecting the .ots5 )arcellus Shale 4lay 4layers

'igure 1 Screen Print MSC $uiding Principles7

0* has 3um'ed into the racking ray, It means we are