climate-change

Huffington Post…

PORTSMOUTH, N.H. (AP) — Fishermen and federal officials grappled Friday with the increasingly bleak prospect of finding some way for the historic New England industry to avoid collapse amid troubles with the health of Gulf of Maine cod. Their meeting came in the week after regional regulators bought fisherman a yearlong reprieve from what would have been devastating cuts in 2012. But projections discussed Friday showed fishermen still face disastrous cuts in 2013 that most won’t survive. “It’s going to be hard to preserve the industry at those low numbers (in 2013) and that’s something that concerns us a great deal,” said Sam Rauch, the head of the National Oceanic and Atmospheric Administration’s fisheries arm, who led the meeting of fishermen, scientists and regulators. “This truly is one of the iconic fisheries,” he said in an interview after the meeting. “When you think of what the U.S. fisherman is, it’s an inshore Gulf of Maine cod fisherman. That’s why we are so devoted to working through this process to try to overturn every possibility we can. But the future, 2013, does not look rosy.” The cod in the Gulf of Maine has been crucial to New England fishermen from Cape Cod to Maine for hundreds of years, and four years ago, after a major assessment, it was thought to be one of the region’s strongest species. It brought in $15.8 million in 2010, second highest amount behind Georges Bank haddock among the region’s 20 regulated bottom-dwelling groundfish. But data released last year indicated the fish was so severely overfished that even if all fishing on it ended immediately, it wouldn’t rebound by 2014 to levels required under federal law. As a result, fishermen were looking at an 82 percent cut in what they were allowed to catch in 2011, a catastrophic reduction that would have wiped out fishermen around the region — not just those who rely on cod. That’s because major restrictions on cod severely limit fishing on the other key groundfish species, such as flounder and haddock, in order to protect the cod they swim among. Last week, regional regulators at the New England Fishery Management Council asked NOAA to adopt a one-year emergency rule that would enable regulators to avoid the massive cut. And they recommended allowing fishermen to catch either 6,700 metric tons or 7,500 metric tons of Gulf of Maine cod in 2012. On Friday, Rauch signaled that NOAA would allow the 6,700 catch limit in the 2012 fishing year, which starts in May. That would mean a tough 22 percent cut from what they were allowed to catch in 2011, though not nearly as deep a reduction as first feared. The problem, according to new projections discussed Friday, is that after the emergency rule expires in 2013, fishermen are again looking at a cut in cod catch just as severe as the huge reduction they were originally facing. From the first indications of cod trouble, fishermen and their advocates have questioned the science behind the new data and Friday was no exception. “We don’t trust your data,” New Hampshire charter boat fisherman Bill Wagner told regulators. “We don’t believe there’s a shortage of codfish. We don’t believe there’s a crisis in codfish.” Massachusetts Rep. Ann-Margaret Ferrante, who represents the port of Gloucester, criticized what she characterized as the constant, massive swings in scientific assessments on the size of fish populations. “We’re always in the same dilemma and I don’t understand why,” she said. Gloucester fisherman Al Cottone said the new assessment has put the fishing industry “on death row.” “The anxiety the industry feels is unprecedented,” he said With so much doubt about the science behind the new data, Cottone said, regulators should give fishermen as much fish to catch as possible while they try to remove uncertainties in the numbers. “To basically flip the switch on the industry with so much reasonable doubt would be irresponsible,” he said. Rauch said the verifying and improving the science is a top priority, and no one can predict if the new work can find something in the next year that significantly improves the assessment of cod health. “It’s always possible we’ll find something there, but even if we don’t, this year allows us time to better plan … for where this industry may end up,” Rauch said. “Fishermen are resilient, they figure out ways to adapt. But this will be hard to adapt to.”

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Fishermen Meet Amid Potentially Disastrous Cod Prospects

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Huffington Post…

* Evidence of Texas, Alaska incidents excluded * Judge: Older cases too dissimilar from Gulf spill * Feb. 27 trial expected By Jonathan Stempel Feb 9 (Reuters) – BP Plc won a court order to keep references to some previous accidents out of this month’s trial to assess blame for the 2010 Gulf of Mexico oil spill, the oil company’s second victory in as many days to bar potentially damaging evidence. Thursday’s ruling by U.S. District Judge Carl Barbier in New Orleans followed a ruling Wednesday by U.S. Magistrate Judge Sally Shushan to keep out some emails questioning some of BP’s activities before and after the spill. Barbier blocked the introduction of evidence related to two accidents involving BP facilities: a 2005 explosion at a Texas City, Texas refinery that killed 15 people, and a 2006 rupture of a corroded pipeline at Prudhoe Bay, Alaska. In the Texas case, BP pleaded guilty to violating the Clean Water Act and accepted a $50 million fine. BP pleaded guilty to a criminal Clean Water Act violation and was fined $20 million in the Alaska case. Barbier, however, ruled that the prior incidents were “not sufficiently similar” to the April 20, 2010 explosion of the Deepwater Horizon drilling rig and blowout of the Macondo oil well, which BP mainly owned. “The prior incidents were all land-based, while the Macondo incident occurred in the Gulf of Mexico,” Barbier wrote. “Additionally, the circumstances of oil refinery disasters and (an) exploratory drilling disaster are vastly different.” James Roy, a lawyer for some of the plaintiffs, who include people and businesses harmed by the accident, did not immediately respond to a request for comment. BP was also fined a record $87 million by the federal Occupational Safety and Health Administration for safety problems at the Texas refinery. Barbier is scheduled on Feb. 27 to preside over a non-jury trial to assign blame for the Deepwater Horizon accident, which killed 11 people and caused the largest offshore oil spill in U.S. history. Other corporate defendants include rig owner Transocean Ltd and Halliburton Co, which provided cementing services for the well. Plaintiffs also include the U.S. government, Alabama, Louisiana and Mississippi. BP has set aside roughly $42 billion for spill costs. Chief Executive Bob Dudley this week said the London-based company is preparing for trial, but willing to settle on reasonable terms. The case is In re: Oil Spill by the Oil Rig “Deepwater Horizon” in the Gulf of Mexico, on April 20, 2010, U.S. District Court, Eastern District of Louisiana, No. 10-md-02179.

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BP Wins Ruling To Keep Old Accidents Out Of Gulf Spill Trial

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The Greenest Car Of 2012 Is…

February 9, 2012

From Mother Nature Networks’ Melissa Hincha-Ownby: The American Council for an Energy-Efficient Economy (ACEEE) has published its 14th annual Greenest Cars List and for the first time an electric vehicle takes the number one spot. The new Mitsubishi i-MIEV bested the Honda Civic Natural Gas , which held the number one spot for eight straight years. A variety of environmental criteria are assessed when evaluating a vehicle’s green score, including the emissions created by the power plant used to provide electricity to the i-MIEV and other electric vehicles . The changing face of the eco-friendly automotive scene actually led to a few changes in the ACEEE’s methodology this year. “This year, a number of updates were made to the Green Book® methodology to more accurately estimate vehicles’ environmental impacts. These include improved emissions estimates for the vehicle manufacturing process, changes reflecting current natural gas extraction practices, and consideration of upcoming shifts in the generation mix for the electricity used to power electric cars.” Source: ACEEE One very prominent electrified vehicle is missing from this list, the Chevy Volt . According to CNNMoney.com , “That’s because the ACEEE uses vehicle weight as a criterion for scoring, under the assumption that a heavier vehicle causes more waste in production.” Unfortunately for General Motors, the Chevy Volt was their best chance for inclusion on the list. Instead, the Greenest Cars of 2012 list is dominated by Japanese imports. General Motors and other Detroit-based automakers are receiving unfavorable recognition on the Greenest List’s companion, the Meanest Vehicles for the Environment in 2012 . Both the Chevrolet G3500 Express Cargo van and its GMC cousin, the G3500 Savana tied with the Ford E-350 Wagon for the Meanest Vehicle of 2012 with a Green Score of 17. For those that cry foul, there are electric cargo vans on the market that are a viable alternative to these gas-hogging beasts. The 2012 Greenest List and each vehicle’s corresponding Green Score follows:

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Federal Official: ‘We’ve Got To Stay Focused On Mine Safety’

February 6, 2012

CHARLESTON, W.Va. (AP) — If there’s one lasting cultural change Mine Safety and Health Administration Director Joe Main wants to make in both the federal agency and the industry it regulates, it’s ending the cycle of intensity and complacency. After every high-profile disaster, regulators step up their enforcement and most coal operators take a second look at safety. Then, over time, both grow complacent. Until the next disaster. “You look away for a second, you let your guard down for a second, and bad things can happen here,” Main said in an interview with The Associated Press. “We’ve got to stay focused on mine safety. It has to be the priority every minute of every day, and we have to be out there with a find and fix mentality — find it and fix it before it hurts somebody.” When the Sago Mine exploded near Buckhannon, W.Va., in 2006, trapping and killing 12 men, MSHA had a different leader and a shortage of inspectors. It’s since hired and trained hundreds, and it was about to begin retraining them when Massey Energy’s Upper Big Branch mine exploded near Montcoal in 2010, killing 29 men. “You can’t go through these phases where enforcement intensifies and then slacks off. You pay for those things,” Main said. “These past events have happened when there’s been a slacking off, and it takes time to reset the stage.” Though MSHA has been criticized for its handling of Upper Big Branch before the blast, Main insists inspectors used the tools they had and were trying to correct problems. In the year before the blast, MSHA issued more violation orders there than at any other U.S. mine. It shut the mine down 48 times but had to let it reopen when problems were fixed. Main said his agency has made many changes since then, including creating an impact inspection system for mines with a history of violations, and he plans to make more once an audit of MSHA’s performance at Upper Big Branch is completed. He’s also hoping for tougher tools from the three mine-safety bills pending in Congress. MSHA helped craft the one proposed by Rep. George Miller, ranking Democrat on the House Education and Workforce Committee. Whatever version ultimately passes, Main wants it to address critical issues such as: giving workers a voice and protecting them when they use it; giving MSHA federal subpoena power in investigations rather than forcing it to rely on state laws; and holding people accountable for criminal conduct. “I do not believe in treating people who are not criminals like criminals,” Main said. “But I do believe that people that engage in that kind of activity need to be dealt with accordingly. And we have to have a law in place that contains that kind of respect.” Ultimately, keeping a mine safe is the operator’s responsibility, and Main said he’s disappointed by those who didn’t get the wakeup call from Upper Big Branch, the nation’s worst coal mining disaster in four decades. “It’s like people passing a wreck on the highway: Just how does that impact folks? And this should have impacted folks bigger,” he said. Even shortly after the tragedy, his inspectors found mines with so much explosive coal dust hanging in the air that they could barely see the cutting machines. “It goes to show we have a serious problem here,” he said. Preliminary data for 2011 show signs of at least short-term improvements: The total number of mining citations and orders were down, and there was progress at 14 mines notified in 2010 that they might be designated potential pattern violators. Main said his agency is also in the process of rewriting the inspectors’ handbook, consolidating and clarifying policies that may be confusing or contradictory “to say exactly what we mean.” That, he said, should help them do their jobs better and make enforcement efforts more consistent.

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GOP Lawmakers Seek Vote On PA Natural Gas Drilling Bill

February 5, 2012

HARRISBURG, Pa. (AP) — A final framework is at hand on sweeping legislation to impose an impact fee and update safety regulations on Pennsylvania’s booming natural gas industry, top Republican state lawmakers say. Republicans notified rank-and-file lawmakers Saturday night that they hope to hold votes this week on a framework reached by negotiators from the House, Senate and Gov. Tom Corbett’s office during closed-door negotiations over the past six weeks. Pennsylvania is the only major gas-producing state that doesn’t tax natural gas production. “These discussions have progressed rapidly over the course of the last two weeks,” House Speaker Sam Smith and House Majority Leader Mike Turzai said in a letter to lawmakers. “In fact, staff have been working throughout the weekend and will be working tomorrow in order to have a proposal that we can consider as early as this week.” According to summaries of the framework distributed to lawmakers, the impact fee would rise and fall with the price of natural gas and inflation. Counties that host the drilling would have the option of whether to impose the fee, but a critical mass of municipalities could override a refusal. Details of the exact fee were not included in the summaries. The bill would increase the required distance between drilling and public water sources such as reservoirs, but not to the extent sought by Democrats, and it would require the state to develop regulations for transporting drilling wastewater and enforce qualifications of treatment plant operators. Money from the impact fee and state forest drilling royalties would be distributed to a wide range of purposes, including bridge repairs, water and sewer plant improvements, statewide environmental cleanup programs and purchases of natural-gas fleet vehicles. Local governments would get 60 percent of the money from an impact fee, with 40 percent going to state programs or agencies. It also would address a top priority of the natural gas industry and set limits to prevent municipal officials from imposing zoning ordinances that effectively prevent drilling there. A drilling operator could ask state utility regulators to review a local ordinance to determine whether it allows for “the reasonable development of oil and gas.” If the Public Utility Commission or a state court decides that a local ordinance fails, the municipality would be unable to receive impact-fee money until it changes it. Pennsylvania lawmakers have talked about whether to tax the natural gas industry since it arrived in earnest in 2008 to tap into the Marcellus Shale natural gas formation, considered the nation’s largest-known natural gas reservoir. The drilling has drawn opponents who fear it is polluting the water supply. The Marcellus Shale lies primarily beneath Pennsylvania, New York, West Virginia and Ohio. Pennsylvania is the center of activity, with more than 3,000 wells drilled in the past three years and thousands more planned as shale emerges as an affordable, plentiful and profitable source of natural gas.

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Should Utilities Be Cheering For Clean Air Rules?

February 5, 2012

NEW YORK — Instead of complaining about clean air rules, maybe utilities should cheer them. Sometimes, the rules lead to big gains. First Energy, a utility based in Ohio, got such a boost Thursday, a week after the company announced it would close six coal-fired plants, blaming new federal rules aimed at slowing emissions of mercury and other toxins. Without these plants, electricity prices in parts of Ohio dominated by First Energy are expected to nearly double at a power auction scheduled for May. The reason: There will now be a smaller fleet of power plants available to meet potential power needs. This smaller supply means the price to coax companies like First Energy to make their plants available will rise. Julien Dumoulin-Smith, an analyst at UBS, predicted rates would rise from $126 for every megawatt available per day to $200. For the 8,000 megawatts of power plant capacity owned by First Energy in the region, that would be an extra $216 million for the year covered by the auction. Jonathan Arnold, an analyst at Deutsche Bank, said there’s a chance prices could approach $500, which would be an enormous windfall for First Energy. First Energy shares rose 3.3 percent Thursday on a day in which the Dow Jones Industrial Average fell slightly. Electric utilities have complained about a raft of new and tightening environmental standards. They argue that the rules are too stringent and that utilities are not being allowed enough time to prepare for them The rules address several environmental issues: Emissions of toxins harmful to human health, pollutants that lead to smog and acid rain, the amount of water used to cool plants and disposal of power plant waste products. Utilities argue that the cost of complying with the rules is too high, that electric power supplies could be constrained in certain regions and that electricity bills will rise. What they don’t generally say, however, is that the rules can lead to higher earnings in some cases. Electric utilities are regulated differently in every state, so the way utilities can benefit differs too. Here’s how: _ In states where power prices are set by market forces, fewer plants means lower electricity supply, and higher prices. Companies that have plants that comply with the new rules stand to benefit from higher prices. First Energy has nuclear and modernized coal plants that meet the new standards. _ In states that are regulated, utilities have to ask public utilities commissions for permission to install new equipment or build new plants. But the utilities are allowed to earn a higher return on these big-ticket investments than they are for selling power to customers. To the extent that the new environmental regulations allow regulated utilities to build new equipment, they will likely lead to higher earnings. But some companies will suffer. For example, utilities in unregulated states that have to pay for upgrades themselves and cannot benefit from higher prices won’t be able to offset the cost of the equipment. Similarly, if state regulators refuse to allow utilities in their state to pass the cost of the upgrades or new plants to customers, those companies could suffer too. The industry also argues that higher prices could also lead to lower power demand and profit. First Energy chose to close plants that likely would have been unable to operate under the new rules on toxins. These plants are generally older and inefficient, so installing emissions control equipment would have cost the company too much money. These plants were already seldom used, so by closing them the company does not stand to lose much revenue from the small amount of power they generated. But in the markets First Energy operates, plants earn money two ways: by selling power, and by making power plants available for use during peak periods, even if they are never actually needed. With the closure of four plants in Ohio, there will be less power available to meet demand. That is expected to drive prices for capacity higher. “First Energy’s nuclear plants and baseload coal plants with environmental controls are the primary beneficiaries of the EPA rules,” says Hugh Wynne, an analyst at Sanford Bernstein. Power prices have been driven lower in recent years by low natural gas prices, which in many markets set the price of electricity. Because of this, prices for capacity have become more important to company earnings. Customers in northern Ohio will pay higher prices than they otherwise would have in the coming years. The final prices they pay, however, will depend on several other factors, including the price of coal, the price of natural gas, and power demand.

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WATCH: Josh Fox On Why He Was Arrested

February 4, 2012

Documentary filmmaker Josh Fox and his crew on Wednesday walked into a congressional hearing on hydraulic fracturing, or “fracking,” a controversial natural gas drilling technique. Fox left in handcuffs, charged with unlawful entry. The meeting of the House Subcommittee on Energy and Environment was focused on the Environmental Protection Agency’s Dec. 8 draft report on links between fracking and water contamination in Pavillion, Wyo. Fox, working on the sequel to the HBO documentary ” Gasland ,” planned to attend the hearing because the EPA investigation highlights subjects from both “Gasland” and the sequel. Thus, he told HuffPost, “we were not really going to be told ‘no.’” “Since the change in Congress when Republicans took over, we have been getting a lot of flack trying to get into the public hearings,” Fox said. Fox asked to attend when the hearing was announced on Monday. By Tuesday morning, he had been refused by Republican leadership on the committee. Fox appealed to the chairman, but did not hear back before the hearing. His crew, he said, was told, “If you’re working for ‘Gasland,’ just forget it.” Any credentialed reporter working on the documentary “will have their credentials jeopardized,” he said the crew was told. Fox said he sent emails and posted his struggles to attend the hearing on Facebook . As a result, the committee’s Republican leadership “knew what was going on,” he said. “It seemed there was someone there prepared to meet us.” Fox was unable to get official filming permission, and as he set up his camera tripod in the Rayburn building room on Wednesday, Fox said he was asked to turn off his camera. He refused. “The word from the chairman comes back — ‘He can stay, but his camera has to leave.’ And I said, ‘I don’t believe that’s the law, I’m within my First Amendment rights.’” Capitol Hill police arrested and handcuffed him. While a committee has the right to prohibit cameras at a hearing, it is rare . Fox later reflected, “It was my understanding that my credentials are my American citizenship.” As the events unfolded, others began filming, Fox said. “Congressional staffers are actually coming in to watch what’s going on and they start videotaping! That’s why you have a videotape of me getting arrested — congressional staffers all had their iPhones out. And the only one being threatened with arrest is me.” The committee’s leadership directed Capitol Hill police to detain Fox and his crew. He was taken to the Capitol Hill police station. “If it weren’t for the campaign contributions going to the Republican party on behalf of the oil and gas industry, I would not have been arrested,” Fox said. The hearing resumed after the film crew departed. Jim Martin , the EPA administrator for the region that includes Wyoming, said the agency’s analysis of geologic conditions in the Pavillion gas field shows “groundwater in the aquifer contains compounds likely associated with gas production practices, including hydraulic fracturing.” Subcommittee Chairman Andy Harris (R-Md.) refuted the study, saying, “In a remarkable display of arrogance and disregard for the plain facts, the president last week proclaimed his support for expanded shale gas production, while at the same time allowing every part of his administration … to attack these practices through scientific innuendo and regulatory straight-jacketing.” During his State of the Union speech, President Barack Obama said companies should disclose the fracking fluids they use, but in nearly the same breath declared, “We have a supply of natural gas that can last America nearly 100 years. And my administration will take every possible action to safely develop this energy.” “It was a painful moment for myself and a lot of the people who are concerned with fracking,” Fox said of the president’s speech. “He’s wrong that there’s a way forward in the future.” Ultimately though, “It doesn’t really matter who the president is,” Fox said. “The people make the change … I don’t think anyone is ever going to be challenged, at least in the near future, about walking in to a congressional hearing with a camera.”

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Feds: Offshore Wind Power Will Not Cause ‘Major Environmental Damage’

February 2, 2012

BALTIMORE (AP) — Offshore wind farms from New Jersey to Virginia took a big step closer to reality with the completion of a review that showed the renewable energy source would not cause major environmental damage, officials said Thursday. Obama administration Interior Secretary Ken Salazar also said his department also was trying to speed up the process for issuing renewable energy leases. Wind projects off the coasts of Maryland, Delaware, Virginia, and New Jersey are being studied. “There are a number of developers who are very interested in developing offshore wind here and our goal is to hold the auctions and be able to issue the leases now, in 2012,” Salazar said. “So, this is not something that’s going to be waiting around.” The Mid-Atlantic lease proposal follows the Cape Wind project in Massachusetts that was given the go-ahead in 2010 after years of federal review. That project is still in development and Salazar said the department had learned from that experience. “No developer should have to wait nine or 10 years,” for approval, Salazar said. Dominion Virginia Power said that it is interested in building up to 400 wind turbines in waters about 20 miles off Virginia Beach, but the cost of the power was an issue. The 2,000 megawatts the turbines could produce would generate enough power for 500,000 households. “If everything aligns and it makes good sense and we have our regulators on board, yes, we would be moving forward on a wind farm,” senior vice president Mary Doswell told The Associated Press. The Interior Department said before the waters would be opened, the public would have a chance to comment on the projects. Maryland Gov. Martin O’Malley, who appeared at the announcement with Salazar, said his administration had contacted Defense Department officials to discuss the possibility of the military using offshore wind energy. O’Malley, a Democrat, and Salazar both described the decision as a major step forward for offshore wind, and environmentalists agreed. Environment America Clean Energy Advocate Courtney Abrams said “tapping into the power of offshore wind along the Atlantic coast is vital to getting the region and the nation off fossil fuels without creating more pollution.” Sen. Tom Carper, D-Del., said the decision “just makes sense.” “It is a reliable, clean energy resource that will reduce our dependence on fossil fuels, curb harmful air pollutants, and create good paying American jobs in manufacturing and construction,” Carper said. Jim Lanard, president of the OffShore Wind Development Coalition, said the decision means that a lengthier environmental impact assessment for offshore power along the mid-Atlantic won’t have to be conducted, although reviews for individual projects will still have to be done. Lanard said that could shave two years off the review process. Michele Siekerka, the Assistant Commissioner of Economic Growth and Green Energy in New Jersey’s Department of Environmental Protection, said Thursday’s announcement will speed the building of offshore turbines by a year or more. Eleven developers have submitted proposals totaling 12,000 megawatts and are expected to be able to bid later this year for leases. The companies will still have to do environmental studies of their own areas, but could be producing power by 2016 or 2017, she said. “The key is the federal government is not doing another one,” Siekerka said. Lanard said legislation pending in the Maryland General Assembly could do a lot to entice developers. “If there’s a revenue stream, you’ll see a great deal of interest,” Lanard said. Lawmakers killed a bill last year that would have required utilities to enter into long-term power purchase contracts and O’Malley said it wasn’t clear how a toned-down bill would fare this year. Kit Kennedy, Clean Energy Counsel at the Natural Resources Defense Council, said offshore power holds the promise of clean energy that could also provide jobs, but it would watch the process carefully to make sure the environment is protected. Dominion’s Doswell said absent tax credits, power generated by towering wind turbines costs about 28 cents per kilowatt hour, while the state’s largest electric utility’s rates are now in the range of 11 to 12 cents per kilowatt hour. “So that’s what we’re battling,” Doswell said. “Wind is a great resource and you can do it with scale, but we’ve got to work on this cost equation.” ___ Associated Press writer Steve Szkotak in Richmond contributed to this report..

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Michael P. Owens: How Newt Gingrich Can Win the Nomination by Coming Clean About Climate Change

January 24, 2012

And just like that… Newt Gingrich is suddenly the front-runner for the Republican nomination. It is not surprising Gingrich’s win of Saturday’s primary in South Carolina was due to his strong backing by conservative voters in the state. While Gingrich is no pauper, voters already alienated by Romney’s wealth, appear to be balking at his reticence to produce his tax returns. Perhaps, the 99% movement is not just a liberal thing after all? Though I can’t say whether Gingrich will be able to maintain this momentum through the upcoming primary in Florida, I do have a suggestion that I believe would improve his chances significantly: Gingrich should come clean about his well Documented beliefs on climate change! Now, before you suggest that this would be political suicide for a “conservative” presidential candidate in 2012, I ask that you please hear me out. The United States is lagging behind China and Europe in the clean energy race! The U.S. is the only developed nation where believing in climate science is a political issue. Meanwhile, the rest of the world agrees that climate change is real; and has focused on finding innovative, profitable solutions to mitigate its effects. When it comes to global investment in clean energy, the U.S. now ranks third, behind China and Germany (respectively). But those numbers understate the issue. In fact, China has actually invested three times more than us. This statistic is even more alarming when combined with the Pew Center study that predicts that the global market for clean energy will reach $2.3 trillion by 2030. Since reviving the sluggish economy and restoring our nation’s competitive edge remain key election issues, why are none of the candidates talking about these alarming statistics? Gingrich’s View on the Environment In 2007, Mr. Gingrich authored a book titled, A Contract with Our Earth , which called for “bipartisan environmentalism” to save the planet. In 2008, he starred in a commercial alongside Nancy Pelosi, for Al Gore’s Alliance for Climate Protection, in which he acknowledged that despite obvious political differences, “we do agree our country must take action to address climate change.” For the past year, revelations like these about Gingrich have been used by his rivals to label him a moderate. Unfortunately, in an effort to appeal to conservative voters, Gingrich has pulled an about-face. According to a recent survey by The Pew Research Center, only 31 percent of Republicans believe in global warming (compared with 77 percent of Democrats). This capitulation was never more evident than when Gingrich cut the chapter on climate change from his soon to be released book. How the U.S. Can Grab a Slice of the Estimated $2.3 Trillion Global Market for Clean Energy Republicans have been led to believe that the only way to address climate change is through a combination of higher taxes and new regulations that would burden business owners. This is shallow thinking from the party that touts the merits of free markets and capitalism above all else. If there were a tax on carbon emissions, the market would step in to provide alternatives. In turn, the country would develop new industries and jobs — putting us on the fast track to grabbing a slice of the estimated $2.3 trillion global market. To quote the same Pew Center survey: “America’s entrepreneurial traditions and strengths in innovation — especially its leadership in venture capital investing — are considerable, giving it the potential to recoup leadership and market share in the future.” My suggestion to Mr. Gingrich is that he simply come out and declare that if we want to be serious about reviving our economy, we must have an honest conversation about climate change. After all, the rest of the world is. Gingrich can state honestly that he has reservations about a cap-and-trade system and a carbon tax, but that he believes capitalism and American ingenuity can find a solution. The words Conservative and Conservation come from the same root. If Gingrich properly demonstrates these connections to his base, and highlights the risk of losing more economic ground to China, Germany and others, I believe he would gain additional supporters. Honesty Trumps All Poll after poll illustrates Americans’ intense distrust of government. The people want honesty, not political pandering. If Gingrich were to come clean about his true beliefs on climate change, he may just win the nomination and more.

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INFOGRAPHIC: Millionaire Pets

January 19, 2012

These pets are millionaires, and they have the diamond collars and mini-mansions to prove it. The fortune recently left to Tommaso, a cat in Rome owned by an heiress, sparked a newfound interest in wealthy pets. Tommaso’s rags-to-riches life made his story even more compelling. ABC News reported in December that Tommaso’s $13 million inheritance makes him the third richest pet in the world, and he is left also with properties in Rome and Milan. But while some pets may be rolling (sniffing, gnawing, napping) in money, millions of other pets around the world are struggling to survive. The Humane Society estimates that 3-4 millions pets are euthanized each year in the U.S. alone. If you’re interested in helping a pet in need of a home, consider adoption and visit Petfinder.com or ASPCA’s website to learn more. Check out the infographic below provided by visualy.ly of millionaire pets : by visually via

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Fuel Transfer Runs Smoothly For Iced-In Alaska City

January 18, 2012

ANCHORAGE, Alaska (AP) — A Russian tanker that went on an ocean odyssey of 5,000 miles to deliver fuel to the iced-in city of Nome was offloading the gasoline and diesel in what officials say is smooth sailing so far, with one possible problem avoided. Two parallel hoses, 700 yards long each, are stretched between the tanker Renda and a pipeline that will deliver 1.3 million gallons of fuel to storage tanks near the harbor of the iced-in city. The offloading began with gasoline, and then both gasoline and diesel were being transferred separately. Jason Evans, board chairman of Sitnasuak Native Corp., the company that arranged for the fuel delivery, said Tuesday the tanker’s two hoses are pumping between 30,000 and 40,000 gallons of gasoline and diesel an hour. One section of hose had to be switched out early Tuesday morning when a suspected bubble occurred in the line, Evans said. The change-out went smoothly and there have been no spills since the pumping operation began Monday evening. This is the first time petroleum products have been delivered to a western Alaska community by sea in winter. The mayor said festivities were planned, including a Coast Guard helicopter landing on the beach so children can look inside. They also set a basketball game between residents and Coast Guard crew members, and the city invited the crew to a pizza dinner. “It is our way to show our appreciation and how grateful we are and what they did for us,” said Mayor Denise Michels. The transfer could take from 36 hours to five days. It started near sundown Monday, after crews laid the hoses along a stretch of Bering Sea ice to the pipeline that begins on a rock causeway 550 yards from the tanker, Evans said. Sitnasuak owns the local fuel company, Bonanza Fuel, and has been working closely with Vitus Marine, the supplier that arranged for the delivery of the 1.3 million gallons of fuel. State officials said the transfer had to start during daylight, but can continue in darkness. Nome has just five hours of daylight this time of year. The city of 3,500 didn’t get its last pre-winter barge fuel delivery because of a massive November storm. Without the Renda’s delivery, Nome would run out of fuel by March or April, long before the next barge delivery is possible. Alaska has had one of the most severe winters in decades. Snow has piled up 10 feet or higher against the wood-sided buildings in Nome, a former gold rush town that is the final stop on the 1,150-mile Iditarod Trail Sled Dog Race. The Renda began its journey from Russia in mid-December, picking up diesel fuel in South Korea before heading to Dutch Harbor, Alaska, where it took on unleaded gasoline. It arrived last week off Nome on Alaska’s west coast, more than 500 miles from Anchorage. A Coast Guard icebreaker cleared a path for the 370-foot tanker through hundreds of miles of a slow journey stalled by thick ice and strong ocean currents. In total, the tanker traveled an estimated 5,000 miles, said Rear Adm. Thomas Ostebo, commander of District Seventeen with the Coast Guard. “It’s just been an absolutely grand collaboration by all parties involved,” said Stacey Smith of Vitus Marine, the fuel supplier. Smith said the effort is a third of the way over with the arrival of the Renda near Nome. Pumping the fuel from the tanker will be the second part. The third part will be the exiting through ice by the two ships. Personnel will walk the entire length of hosing every 30 minutes to check for leaks, Evans said. Each segment has its own containment area, and extra absorbent boom will be on hand. The Coast Guard is monitoring the effort, working with state, federal, local and tribal representatives, Chief Petty Officer Kip Wadlow said. The fuel participants had to submit a plan to state environmental regulators on how they intended to get the fuel off the Renda, he said. “We want to make sure the fuel transfer from the Renda to the onshore storage facility is conducted in as safe a manner as possible,” he said.

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Remote Alaska Town ‘On The 5-Yard Line’ Waiting To Reconnect With World

January 15, 2012

ANCHORAGE, Alaska — The ice that has cut off a remote Alaska town for months will connect it to the world again when crews build a path over it to carry fuel from a Russian tanker that was moored a half-mile from the town’s harbor Sunday morning. Workers were waiting for disturbed ice to freeze again so they could create some sort of roadway across the 2,100 feet from tanker to the harbor in Nome, upon which they’ll rest a hose that will transfer 1.3 million gallons of fuel. A storm prevented Nome’s 3,500 residents from getting a fuel delivery by barge in November. Without the tanker delivery, supplies of diesel fuel, gasoline and home heating fuel Nome are expected to run out in March and April, well before a barge delivery again in late May or June. The tanker began its journey from Russia in mid-December and has slowly made its way toward Nome, stalled by thick ice, strong ocean currents and one Alaska’s snowiest winters in memory. It picked up diesel fuel in South Korea, then headed to Dutch Harbor, Alaska, where it took on unleaded gasoline. Late Thursday, the vessels stopped offshore and began planning the transfer to Nome, more than 500 miles from Anchorage on Alaska’s west coast. A Coast Guard cutter cleared a path through hundreds of miles of Bering Sea ice for the tanker. Now, residents await the journey’s final leg, which comes with its own hurdles: In addition to waiting for the ice to freeze, crews must begin the transfer in daylight, a state mandate. But Nome has just five hours of daylight this time of year. “It’s kind of like a football game. We’re on the 5- yard line and we just want to work into the goal line,” said Sitnasuak Native Corp. board chairman Jason Evans, whose hometown is Nome. Sitnasuak provides fuel and other services to the region. Despite the complicated logistics of delivering fuel by sea in winter, Sitnasuak opted for the extra delivery after determining that it would be much less costly and more practical than flying fuel to Nome. A Coast Guard spokesman didn’t know how long it will be before fuel flows as crews must wait 12 hours, or until about 5 a.m. local time Sunday (6 a.m. Pacific), to ensure that the disturbed ice has refrozen. “We were able to successfully navigate that last bit of ice,” Coast Guard spokesman Kip Wadlow said. “We were able to get it pretty much right on the money, in the position that the industry representatives wanted to start the fuel transfer process.” The crew of the 370-foot tanker Renda was working to ensure the safe transfer of the fuel through a segmented hose that will be laid on top of the ice to the harbor, located about 2,100 feet from the ship, Wadlow said in a telephone interview from Nome on Saturday night. Once crews create a suitable path for the hose to rest on, its segments will have to be bolted together and inspected before the fuel can begin to flow. Though the transfer must start during daylight, it can continue in darkness, Betty Schorr of the Alaska Department of Environmental Conservation has said. It could be finished within 36 hours if everything goes smoothly, but it could take as long as five days, she said. Earlier Saturday, Evans gave details of the transfer process. Once the hose is laid down, he said personnel will walk its entire length every 30 minutes to check it for leaks. Each segment of hose will have its own spill containment area, and extra absorbent boom will be on hand in case of a spill. Evans said he hopes the crew will begin unloading Sunday. Evans, however, cautioned that delivering the fuel is only half the mission. “The ships need to transition back through 300 miles of ice,” he said. “I say we’re not done until the ships are safely back at their home ports” in Seattle and Russia. ___ Online:

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Palin Blasts Romney For Not Releasing Tax Returns

January 12, 2012

Former Alaska Gov. Sarah Palin suggested Wednesday that Republican presidential candidate Mitt Romney should release his tax returns, as well as records from his time at Bain Capital. “What I heard was a little bit what’s going on today is some inoculation of the candidate himself, the frontrunner, and what it is that he’s going to face when he comes up against Barack Obama. Nobody should be surprised that things about Bain Capital, and maybe tax returns not being released yet, and maybe some records not being as transparently provided to the public as voters deserve to see right now, don’t be surprised that’s all coming out today,” she told Sean Hannity Wednesday on Fox News. “Let’s get it out there, let’s hear the defense of the candidates who are being charged with some of this. It’s kind of like some come-to-Jesus moments for these candidates, and that’s good, that’s healthy.” In a December interview with NBC News , Romney said he has no plans to release his tax returns. “Never say never, but I don’t intend to do so,” he said. Though not required by law, most recent presidential and vice-presidential nominees have chosen to made their tax returns public, including Palin. Romney told the Des Moines Register editorial board that all of his income in the past 10 years is from dividends, interest and capital gains — all of which are taxed at a lower rate than personal income. Romney did not take a salary as governor of Massachusetts from 2003 to 2007. His wealth is estimated to be between $190 million and $250 million, according to financial disclosure reports. The Obama campaign has attacked Romney for not releasing his tax returns. “Why won’t Mitt Romney release his tax returns?” tweeted the @BarackObama account recently, liking to a DNC video. Palin also asked for more proof of Romney’s claim that he added ” over 100,000 jobs ” at Bain Capital. “I think what Gov. Perry is getting at is that Gov. Romney has claimed to create 100,000 jobs at Bain, and people are wanting to know, is there proof of that claim, and was it U.S. jobs created for U.S. citizens?” she said . Romney’s campaign says the figure comes from three companies Bain invested in: The Sports Authority, Staples and Domino’s. The figure does not include jobs lost at other companies Bain invested in. But more critically, it’s difficult to know what role Romney personally played in creating jobs, as opposed to the the role companies played themselves since the Bain investment.

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Don Tapscott: 20 Big Ideas for 2012, Part Four

January 12, 2012

What will happen in 2012? In the spirit of the aphorism “The future is not something to be predicted, it’s something to be achieved,” let me suggest 20 transformations (which The Huffington Post will publish in four groups of five; one, two and three can be found here , here and here ). We need to make progress on these issues now to prevent next year from being a complete disaster. These ideas are based on the research I did with Anthony D. Williams to write our recent book which comes out in early 2012 as a new edition entitled Macrowikinomics: New Solutions for a Connected Planet . All 20 are based on the idea that the industrial age has finally run out of gas and we need to rebuild most of our institutions for a new age of networked intelligence and a new set of principles — collaboration, openness, sharing, interdependence and integrity. These big ideas will be the focus of much of my writing next year. 16. A next step for social media: social business? How is Social Media changing business? Companies everywhere are using platforms like enterprise social networks, micro-blogging, wikis, digital brainstorms, challenges and ideation tools to collaborate internally. These are becoming a new operating system for a business improving its metabolism-capacity to collaborate. However, recent examples illustrate that social media is becoming a new mode production that changes the way economies and firms innovate, create wealth and compete. Beginning years ago with Wikipedia and the Linux operating system and extending today to entire industries like the manufacturing of motorcycles in China. Closed, hierarchical corporations that once innovated in secret can now tap and contribute to a much larger global talent pool — one that opens up the world of knowledge workers to every organization seeking a uniquely qualified mind to solve their problem. Scientists can accelerate research by open-sourcing their data and methods to offer every budding and experienced researcher in the world an opportunity to participate in the discovery process. Social media are becoming social production. How can companies benefit rather than being harmed? 17. New models for the music and entertainment industries The music industry was the canary in the mineshaft for the entertainment industries. Digital music offers a historic opportunity to place artists and consumers at the center of a vast web of value creation. But these novel dynamics have turned the record industry on its head. Rather than build bold new business models around digital entertainment the industry has sought legal solutions to disruption. (The third-greatest source of revenue for U.S. labels is lawsuits against customers.) Arguably, an obsession with control, piracy, and proprietary standards on the part of large industry players has only served to further alienate and anger music listeners. With artists now increasingly turning against the record industry’s lawsuits, however, momentum may be shifting in favor of a better way forward. How can customers share music while ensuring that musicians, composers and promoters are fairly paid for their work? How could labels develop Internet business models with the right combination of “free” goods, consumer control, versioning, and ancillary products and services? Could music become a service where consumers have access to online streaming audio of any song for a monthly fee? What new platforms for fans’ remixes and other forms of customer participation in music creation and distribution are required? How could new approaches apply to other aspects of cultural content like film, television, books and even art? 18. New models for higher education: collaborative learning and content creation Without fundamental reform, universities will not be able to compete with cheaper and more effective online education providers. While many young people are still going to university, a growing portion of the best and the brightest students have given up attending classes, because the information is available in a more easily ingested form online. Universities must shift their business model from the centuries-old notion that a professor lectures students, to a more collaborative, interactive model. Instead of being the “sage on the stage,” teachers should be the co-pilot for students as they explore and collaborate online to acquire knowledge. We also need an entirely new modus operandi for how the content of higher education — the subject matter, course materials, texts, written and spoken word and other media — is created. Rather than the old textbook publishing model, which is both slow and expensive for users, universities professors and other participants can contribute to an open platform of world-class educational resources that students everywhere can access throughout their lifetime. How can leaders create a Global Network for Higher Learning? If universities open up and embrace collaborative learning and collaborative knowledge production, they have a chance of surviving and even thriving in the networked, global economy. 19. The new demographic revolution: Embracing the Net Generation as young adults The world is becoming younger with over half the population under the age of 25. With many having grown up bathed in digital bits, they are adept with interactive media and completely comfortable with technology. Research shows that those with access to the Internet are the first-ever global generation — with strong norms for freedom, customization, collaboration, integrity and innovation. As they enter the workforce and marketplace, they are a huge force for transformation in every institution. But are we ready? How are they different? What do firms, governments, and educational institutions need to do to embrace them? What can we learn from them when redesigning our institutions for the new realities? 20. The New power of the commons Increasingly it’s becoming difficult or even impossible for companies to achieve breakthrough success without changing their entire industry’s modus operandi. In particular it increasingly makes sense for all the companies in an industry to cooperate for success by sharing intellectual property — placing important assets in the commons. Pharmaceutical companies are about to drop off what’s called “the patent cliff.” They will lose 25-40 percent of their revenue as the patents for many blockbuster drugs expire. There is little individual companies can do to recover from this crisis. They need an industry-wide solution that rethinks how they work together as an industry — to restructure industry practices and share some pre-competitive basis research or sharing their clinical trial data, such as results from failed trials or from control groups. Banks need to share information about risk management. Manufacturers need to take a page from Nike and share information, software and other assets for sustainable business practices. The auto companies should place fuel cell development in the commons. We need a new intelligent power grid for the production and distribution of energy. Co-development and collaboration within the industry and sharing is necessary. But industry leaders need to wake up and step up. This article originally appeared on Reuters.com Don Tapscott is the author of 14 books, including (with Anthony D.Williams) MacroWikinomics: New Solutions For a Connected Planet . He is an Adjunct Professor at the Rotman School of Management, University of Toronto.

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Mini Apple Stores Coming To Target

January 12, 2012

NEW YORK — Target says it will team up with owners of specialty shops to create affordable, limited edition merchandise for sale online and at its stores in a bid to attract more customers and distinguish itself from rivals. Target Corp. said Thursday it will start featuring products from five shops starting May 6. The shops will be open for six weeks and then be replaced with another slew of shops in the fall. The initial group includes The Candy Store in San Francisco, The Privet House home accessories shop in Connecticut; The Webster House, a clothing store in Miami; Polka Dog Bakery in Boston; and The Cos Bar, a cosmetic shop in Aspen. The items will be sold both at Target stores and online. With prices ranging from $1 for a nail file to a $159.99 online only ottoman for the home, the five collections total nearly 400 products. “This puts Target at the frontier of what’s next in retail,” said Brian Robinson, director of fashion and design partnership at Target. Separately, Target says will testing creating mini-Apple shops in 25 Target stores. It provided no details. Target pioneered the concept of offering designer merchandise at affordable prices starting with its Michael Graves launch of home accessories in 1999. It says rivals have copied its cheap chic mantra. Target shares rose 17 cents to $49.20 in morning trading Thursday. Its shares have traded in a 52-week range between $45.28 and $56.44.

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PA Residents With Tainted Water Scramble After Delivery Plans Reportedly Canceled

January 8, 2012

ALLENTOWN, Pa. — The U.S. Environmental Protection Agency abruptly changed its mind Saturday about delivering fresh water to residents of a northeastern Pennsylvania village where residential wells were found to be tainted by a natural gas drilling operation. Only 24 hours after promising them water, EPA officials informed residents of Dimock that a tanker truck wouldn’t be coming after all. The about-face left residents furious, confused and let down – and, once again, scrambling for water for bathing, washing dishes and flushing toilets. Agency officials would not explain why they reneged on their promise, or say whether water would be delivered at some point. “We are actively filling information gaps and determining next steps in Dimock. We have made no decision at this time to provide water,” EPA spokeswoman Betsaida Alcantara said in an email to The Associated Press. It’s not clear how many wells in the rural community of Dimock Township were affected by the drilling. The state has found that at least 18 residential water wells were polluted. Eleven families who sued Houston-based Cabot Oil & Gas Corp. expected water from the EPA to arrive either Friday or Saturday. They say they have been without a reliable source of water since Cabot won permission from state environmental regulators to halt deliveries more than a month ago. Cabot, which was banned in 2010 from drilling in a 9-square-mile area around the village, took legal responsibility for the Dimock methane contamination, but contends water wells in the area were already tainted with methane long before the company arrived. The company also says it met a state deadline to restore or replace Dimock’s water supply, installing treatment systems in some houses that have removed the methane. But homeowners say their wells are tainted with methane gas and toxic chemicals that are used in hydraulic fracturing, a technique in which water, sand and chemicals are blasted deep underground to free natural gas from dense rock deposits. Dimock resident Craig Sautner said an EPA staffer in Philadelphia told him Saturday the water delivery was canceled. He said the EPA staffer, on-scene coordinator Rich Fetzer, would not explain why. “You can’t be playing with people’s lives like this,” said Sautner, whose well was polluted in September 2008, shortly after Cabot began drilling in the area. Sautner and the other homeowners had been relying on deliveries of bulk water paid for by anti-drilling groups, but the last delivery was Monday, and some of them ran out. After the EPA delivery fell through Saturday, the environmental group Water Defense, founded by actor Mark Ruffalo, said it would send a tanker from Washingtonville, N.Y., on Sunday to replenish the residents’ supply. Dimock has become a focal point in the national debate over the so-called fracking method, which has allowed energy companies to tap previously inaccessible reservoirs of natural gas while raising concerns about its possible health and environmental consequences. The industry says the technique is safe. Gas drilling companies have flocked in recent years to the Marcellus Shale, a massive rock formation underlying New York, Pennsylvania, Ohio and West Virginia that’s believed to hold the nation’s largest deposit of natural gas. Pennsylvania has been the center of activity, with thousands of wells drilled in the past few years. The latest twist in the three-year-old Dimock saga left residents with plenty of questions, but no answers. “What happened? Who had the power here? Who had the power to change their minds? Was it the governor? Was it somebody from Washington? Was it Cabot? What happened? We don’t know. We’re really confused,” said Wendy Seymour, an organic garlic farmer. Seymour said an EPA official in Philadelphia told her Friday that she could expect a delivery. On Saturday, another EPA official called her and “apologized for the confusion” and said EPA was still assessing the situation. Claire Sandberg, executive director of Water Defense, said the EPA owed them an explanation. “It’s tragic to see the EPA raise these people’s hopes and then dash them, to see the EPA suggest they were beginning to accept their responsibility to protect the public, and then back out a few hours later when these people are so desperate,” she said.

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Crucial Info Women Don’t Know About Money: LearnVest Survey

January 5, 2012

There’s a familiar but grating stereotype that women are frivolous when it comes to money (here’s looking at you “Confessions of a Shopaholic,” Lily Aldrin of “How I Met Your Mother” and many, many others). But new evidence suggests that women care a lot about managing their finances effectively — they just aren’t sure of the best way to go about it. On Wednesday, LearnVest, a personal finance website tailored to women, published the results of a survey it commissioned of over 600 women, conducted by business consultancy Maddock Douglas. The results showed that the majority of participants are uncertain about what financial steps they should be taking, and that many of them lacked confidence in their ability to make key financial decisions. Ninety percent of women surveyed, ages 21 to 59, weren’t sure how much to save for retirement, what types of retirement accounts to open, how much money to invest, and what types of investment accounts to open. Eighty-four percent were not very comfortable in their ability to set specific financial to-dos. To explain these fairly distressing numbers, HuffPost Women spoke with LearnVest CEO Alexa von Tobel: The survey found that six in 10 women are stressed out about their finances: where’s the majority of that stress coming from? It’s credit cards — they were at the top by a majority. The next one was health insurance decisions, but credit cards were three times more stressful than that. Credit card debt builds, and it grows. You know it’s bad for you. You know it’s hurting your credit score. If it’s debt across three cards, you’re not sure which dollars should go where first. I hear this all day long from people writing in saying, “I have $20,000 of credit card debt. I’m ashamed about it.” I think it’s helpful that people recognize that it’s not okay to have that much debt, but it’s better if you’re not ashamed — it empowers you to take action when you set being ashamed aside. Of all of the “pain points” the survey identified in women’s financial landscape, which is most problematic on a macro scale? Twenty-seven percent of women did not have a retirement account of any kind. Of those that had them, 48 percent had less than $10,000 in savings and 57 percent had less than $20,000. That is so daunting when you consider that it’s critical for women to have ample retirement because their life expectancy is shown to be longer. Social security is running out, and pensions barely exist. We are funding ourselves through retirement. Which should individual women tackle first? It’s not impossible to generalize, it just requires people to answer some questions. I could always say, “Pay down your credit card debt” — and it’s really important you pay that down — but if your employer has a 401k-matching program and you can sign up for that, that’s a big priority. If you’re going to lose your job, you might need to start your emergency savings plan. But paying down credit card debt as quickly as possible is always a good thing to do. Why do 76 percent of respondents think it’s hard to be in control of their money? The majority of [respondents] feel out of control because they don’t know how to think through their priorities. You may have credit card debt and student loans, and you’re trying to fund an emergency savings account and fund retirement. Eighty-four percent of women are not comfortable setting their own specific financial to-dos [because] they don’t know what they’re supposed to be doing. Sixty-six percent feel like it’s very hard to get financial information, and they don’t know how to get information tailored to their specific situations. Do you think this lack of information and accumulated financial knowledge is in any way unique to women, or do you believe it’s true for men, too? I would say there’s a knowledge gap for everyone because this information isn’t taught in high school, in college, or in graduate schools. We make six to 10 financial decisions every day. Should I take a cab? Am I going out? Can I go to a party? Should I pay cash or use a credit card? But we’re given no formal guidance on how to think these decisions through. From women who work at investment banks to women who have no education at all, they have the same questions. A great education doesn’t necessarily mean you have money education. What the survey did show is that women were interested in learning. Eighty-seven percent said they’d love to talk to a financial advisor. They’re actually quite proactive, but they weren’t sure where to go. Fifty-four percent of women have credit card debt averaging $9,000. Doesn’t that suggest that the recession has had virtually no impact on women’s spending habits? I do think people are getting more thoughtful about spending. A lot of the people we hear from say, “I’m not wasting money, and I’m not shopping.” But once you get under this pile of burdensome debt and your yearly financial salary isn’t dramatically getting bigger, you just can get stuck. You can be doing the right things, but still not getting your head above water. The $9,000 of credit card debt — though it makes my stomach sick — does not surprise me. What’s the easiest, quickest way to give your financial life a makeover? One of the best things I’ve learned is that 50 percent of income should go to essentials: food, shelter and transportation. Twenty percent every month always should go to what we call “priorities”: paying down debt or student loans and retirement. And 30 percent goes to choices: that’s eating out, gym membership, shopping, gifts, travel — anything that’s not critical. One of the things that we feel strongly about is, if you get to the point that you really know you can’t use a credit card the way its best designed to be used, go on a cash diet and only spend cash. It really can help you reset your spending habits, and protect you while you’re trying to get out of major debt.

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Groupon Stock Tumbles As Main Street Merchants Pull Back

January 4, 2012

Perhaps Wall Street is listening to Main Street after all. Daily deals site Groupon, which went public in early November, is seeing its stock price tumble after a recent report found that most business owners who previously offered a daily deal have no plans to do so again in the next six months. Groupon’s stock slipped 9.1 percent in the two days of trading following the report’s release on Tuesday. That’s Groupon’s largest two-day drop since it went public, excluding a rough week in late November, signaling that Main Street’s concerns over the daily-deals model continue to weaken public investors’ demand for the industry leader’s shares. The study, by Susquehanna Financial Group and daily-deal aggregator Yipit, found that merchants were most concerned about how much deal sites require participating vendors to discount their goods, as well as the low rate of repeat business gained from consumers who purchased the offers. As such, 52 percent of merchants said they had no plans to offer a daily deal in the next six months, and 24 percent intend to feature only one deal during the same period. As for the market’s harsh reaction to the survey, which collected data from only 100 merchants, “it’s almost as if investors were looking for a reason to dump the [Groupon] stock,” All Things Digital’s Tricia Duryee noted, citing that the study was largely positive . Notably, the study found that 80 percent of merchants said they enjoyed working with daily deals sites — such as Groupon, Living Social and the growing list of competitors — which shows that “the vast majority of merchants who have run deals are happy with their experience,” Brendan Lewis, a Living Social spokesman, told Bloomberg . “You’d be hard-pressed to find an 80 percent satisfaction rate among merchants for any other marketing channel in use today,” he added. But recent data show that, for Groupon at least, the local-deals business is declining , a sign that while merchants may “enjoy” working with deal sites, fewer small businesses are signing up to offer daily deals through the industry leader, whose stock is suffering as a result.

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Online Casinos: Not So Fast

January 4, 2012

The Justice Department may have paved the way for Internet gambling, but that doesn’t mean everything will come up aces for online poker players. Those envisioning a boom in virtual casinos and card rooms can expect several obstacles. That’s the word from legal experts following the department’s about-face announcement Dec. 23. The DOJ said it was reversing its stance that the Wire Act of 1961 prevents online lottery sales and, by implication, other Internet gambling except sports betting. The move could allow states to implement their own intrastate virtual casinos and card rooms, tapping yet another gambling revenue stream in a stale economy. With states desperate to close a combined $95 billion 2012 deficit, gambling has emerged as a possible quick fix. The payoff from Internet casinos, however, won’t be automatic. “No one can assume that it’s a free ride to Internet poker, said attorney Anthony Cabot , a gaming specialist at the Lewis and Roca firm in Las Vegas. Among the hurdles: Sparsely populated states may lack enough gamblers: Most states are too small to support an in-state online casino. The cost of software and monitoring is too great for less-populated states to justify Internet casino play, especially poker, which requires a certain amount of players at the “table.” “You have to have enough players to populate that ecosphere,” Cabot said. “Little states don’t have enough to make it work.” Cabot wondered whether his state, the nation’s casino capital, would have enough resident gamblers to support a virtual gaming site. Both the casino-affiliated computer servers and players presumably would have to be inside the state for any transactions to be legal, so states must be staked with a sufficient pool of gamblers, he said. One state could team with another to form a larger casino entity, according to authorities. Games played against the house, such as blackjack and roulette, wouldn’t be a problem for smaller states, others said. Who gets the money? Lotteries, Native American-run casinos and brick-and-mortar card rooms will all be vying for a share of the profits. In California, all three are in the mix. I. Nelson Rose , a Whittier College law professor who specializes in gambling, predicted that California would issue as many as three licenses to keep all parties happy. But he added that the lottery would likely be the loser in this scenario, with powerful Indian interests getting a hefty chunk of the action. “The tribes see [online gambling] as inevitable and something that must be shared,” he said. Online gambling hasn’t been approved in most states. Only Nevada and the District of Columbia already have legalized (but do not yet host) intra-regional casinos online, leaving 49 states to push through an online gambling law if they want it. That’s no sure thing, according to attorney Stephen Schrier , head of the gaming practice at the law firm Blank Rome and a former regulator for the New Jersey Division of Gaming Enforcement. Schrier said it’s possible that at least one state will implement online gaming this year — most likely Nevada as it already is entertaining bids from software makers and operators. New Jersey could be next if an aggressive campaign by State Sen. Raymond Lesniak (D) succeeds in pushing through a bill before the Jersey legislature adjourns Jan. 9. Another early adopter could be Iowa , a relatively prosperous state that has eyed online gambling for years. One study determined the state could net as much as $13 million in tax revenue annually as a result. Iowa began the riverboat casino trend in 1991. “Iowa likes being the first on these things,” Rose said. Nuances could be a nuisance. Every state will have issues interpreting the legalities. In Jersey, for instance, an existing law permits casino gambling only within Atlantic City, Schrier pointed out. So the conundrum is: If the computer server is in Atlantic City but the online gambler is in Trenton, where is the betting taking place? Jersey’s most recent bill has decided it’s where the server is. Stay tuned. Other states might also wrestle with what constitutes an in-state gambler. Software can already let the host and law enforcement know whether a player is actually in the approved state at the time, Schrier said. A smartphone application, for example, could cut off a gambler in New Jersey as soon as he or she steps into New York. And if the host should misinterpret the law or be lax in applying it, a slew of other federal statutes, including the Travel Act, are still on the books, according to legal eagles. While authorities agree that the Justice Department’s decision is significant, it is a mere first step on the road toward legalizing casino gambling in cyberspace. This opinion could even be challenged or jettisoned, as Howard Stutz of the Las Vegas Review-Journal observed. Rose called the development a gift from the Obama administration to debt-ridden states. But it might not be a gift that starts giving as fast as many might hope.

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Brendan McMahon: Unemployment Is A Lifestyle For Actors, And Now Too Many Others

January 4, 2012

Recently, I was hired by a family friend to remove the walls and flooring of a house he needed to sell. This family friend is as nice as you can get. I got the feeling he normally would have done the work himself, but he knows I’m an actor. Like most actors and many Americans, I’m unemployed. Right now, the country is running an 8.6 percent unemployment rate. At the same time, the average unemployment rate for actors, according to the Actor’s Equity Association , hovers around 90 percent. Whereas being unemployed is a rather new phenomenon for most of the workforce, it is a way of life for actors. Every day I hear or read about folks looking for work. “With my experience, I just still don’t understand why I’m not being picked up quickly by a permanent job someplace,” said Ray Meyer recently on a National Public Radio report regarding unemployment. Meyer had a 30-year career in Banking before being laid off in 2008. He has since had a series of temporary assignments. This kind of uncertainty is typical fare for Actors who “endure long periods of unemployment, intense competition for roles, and frequent rejections in auditions,” states a report by the United States Department of Labor Bureau of Labor Statistics. According to the same report, with Acting jobs typically lasting from ” between 1 day and several months ,” Actors ” must hold other jobs in order to make a living .” This is becoming commonplace for many workers, including those who are college graduates. It is generally accepted that training for an occupation and becoming a contributing member of society is why we attend college. For actors, attending University for a degree in performing has become a practice in absurdity. There is not enough work for most of them to pay the debts they’ve incurred. Unfortunately, this seems to be becoming a truth for many professions. According to FinAid.org, about two-thirds of all college students graduate with debt, borrowing between $27,000 and $114,000 . Increasingly those who can find work often find work in jobs that don’t require a college degree. A report from the Center for College Affordability and Productivity states “Total college graduate employment in below college level jobs increased from 953,000 in 1967 to 5.06 million individuals in 1990.” The report goes on to show that this trend has grown exponentially in the current recession, from 16.6 percent of college grads working such jobs in 1998 to 35.3 percent in 2008. Again, for actors this situation is an old hat. In a 2005 New York Times article , Scott L. Steele, the executive director of the University/Resident Theater Association, a consortium of graduate theater programs and professional theaters stated: “We’re producing too many people… many of them poorly trained or moved into the field without the connections or relationships necessary to make their transition to a career possible. It’s as if medical school were graduating people without giving them internships at a hospital.” In the same article, Alan Eisenberg, the executive director of Actors Equity followed a similar train of thought: “These schools are just turning out so many grads for whom there is no work.” Such sentiments were echoed throughout: “How do we effectively prepare our students for a career that has no interest in them being part of it?” The idea of paying off the loans for our expensive educations seems like it might take some kind of miracle, especially while working in temporary jobs with low wages. Again, this is sadly becoming true for graduates of higher education in all fields. Certainly, a Master’s Degree qualifies one to teach at the College level, but with the above figures and testimony, there’s something rather unsettling about taking students money for an education that will not help them find work. Loaded with college debt, and without steady work, anxiety and depression are becoming prevalent among the ranks of the unemployed. “I am so down,” states Jennifer Barfield, an out of work IT professional, also interviewed recently by National Public Radio . “I am just questioning everything from spiritual issues to what’s the point of living life if this is all it is.” These sentiments are commonly revisited in my conversations with other performing arts professionals, but now hopelessness seems to be a prevailing theme for all of the unemployed. According to the online journal Live Science : “The primary issue the unemployed are dealing with is the loss of identity.” Doing a job we have trained for and are good at makes us feel as though we have meaning and purpose in our lives, and as though we are contributing to our society. For many actors, indeed for many artists, the sense that what we have to offer isn’t necessary in our society leads to lifestyles dogged by the depression and anxiety that many outside the arts are now experiencing through lack of work. For all of the suffering unemployment causes, it is amazing how little it takes to reverse some of the effects. Working on the house, it felt great to engage in the work at hand, to know that it would help me to buy Christmas presents, buy groceries and pay bills. Sadly, the job was finished in one day. Short term. Itinerant. Unskilled. This is an old story for many actors, and unfortunately also the story for many of the currently unemployed.

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Could Ohio Earthquakes Incite A Fracking Policy Shift?

January 3, 2012

COLUMBUS, Ohio — In Ohio, geographically and politically positioned to become a leading importer of wastewater from gas drilling, environmentalists and lawmakers opposed to the technique known as fracking are seizing on a series of small earthquakes as a signal to proceed with caution. Earthquakes caused by the injection of wastewater that’s a byproduct of high-pressure hydraulic fracture drilling, aren’t new. Yet earthquakes have a special ability to grab public attention. That’s especially true after Saturday’s quake near Youngstown, at magnitude 4.0 strong enough to be felt across hundreds of square miles. Gov. John Kasich, a drilling proponent, has shut down the wastewater well on which the quake has been blamed, along with others in the area, as the seismic activity is reviewed. “Drilling’s very important for our economy and to help us progress as a state, but every single person in the Mahoning Valley felt this earthquake,” said state Sen. Joe Schiavoni, a Youngstown Democrat who on Tuesday called for a public hearing. “I wouldn’t deem it as an emergency, but when you live in a place that you’re not used to earthquakes and you have 11 earthquakes, you’re concerned,” he said. “We need to give them some sort of confidence or security that this is going to be OK.” Fracking involves blasting millions of gallons of water, laced with chemicals and sand, deep into the ground to unlock vast reserves of natural gas, a boon both for energy companies and a public hungry for cheap sources of fuel. That process, though, leaves behind toxic wastewater that must be expensively treated or else pumped deep into the earth. The wastewater is extremely briny and can contain toxic chemicals from the drilling process – and sometimes radioactivity from deep underground. The practice of dumping underground has been controversial in light of scant research done on potential environmental dangers, highlighted by reports of contamination of aquifers in some communities in Pennsylvania and Wyoming. Some states are reconsidering it. A coalition of environmental groups is preparing a protest for next week’s return of the Ohio Legislature. Activists opposed to increased oil and gas drilling activity across Ohio, Pennsylvania, New York and West Virginia – where the Utica and Marcellus Shale formations are believed to hold vast quantities of gas – see trouble with the Ohio injection well. It took wastewater from fracking, as well as other forms of drilling. “What other business or industry isn’t held accountable for its full cradle-to-grave processes?” said Deborah Nardone, director of the Sierra Club’s Natural Gas Campaign. “They need to be responsible for the waste stream that they’ve created.” Ohio’s closure of the well will have little to no impact on drilling, said Travis Windle, a spokesman for the Marcellus Shale Coalition, an industry group based in Pennsylvania. Four of the five wells that Ohio shut down were not operational, Windle said. Pennsylvania’s drillers have turned in recent months to deep-well injection of millions of gallons of wastewater because of a voluntary state moratorium last year on dumping of waste at treatment plants where the partially treated liquids are discharged into rivers and streams that drinking water is taken from. Most drillers in Pennsylvania accepted a voluntary state moratorium last year on dumping of waste at treatment plants, which had discharged the partially treated mix into rivers and streams that supply drinking water. Many drillers now recycle the drilling fluid, and some turned to deep-well injection of millions of gallons of the wastewater. Pennsylvania has six deep injection wells that currently accept fracking fluid, said Amanda Witman, a spokeswoman for the Department of Environmental Protection. But some of its waste is trucked into Ohio, where the geology allows for more injection wells. Ohio’s willingness to accept the fracking leftovers amid a drilling boom in states to the east, south and west worries some residents and environmental advocates who say the science isn’t proven – and point to the earthquakes as evidence. The Ohio Petroleum Council, an industry group, says any public anxiety is misplaced. “Injection wells have worked well to protect public safety for decades, and a situation like the one in question near Youngstown is very rare,” executive director Terry Fleming said in a statement. Kasich told reporters over the weekend that he doesn’t believe the energy industry should be blamed for issues arising from disposal of their byproducts. That would be like blaming the auto industry for improper disposal of old tires, the first-term Republican said. Scientists have known for decades that drilling or injecting water into areas where a fault exists can cause earthquakes, said Paul Hsieh, a research hydrologist with the U.S. Geological Survey in Menlo Park, Calif. “That’s widely documented and accepted within the science community,” he said. “It’s seen all over the world.” Injection wells have also been suspected in quakes in Arkansas, Colorado and Oklahoma. Oklahoma’s sharpest earthquake on record, of magnitude 5.8 on Nov. 5, was centered on a county that has 181 such wells, according to Matt Skinner, a spokesman for the Oklahoma Corporation Commission, which oversees oil and gas production in the state and intrastate transportation pipelines. However, a study by the Oklahoma Geological Survey released earlier in 2011 found that most of the state’s seismic activity didn’t appear to be tied to the wells, although more investigation was needed. “It’s a real mystery,” seismologist Austin Holland said in November. “At this point, there’s no reason to think that the earthquakes would be caused by anything other than natural” shifts in the Earth’s crust. New York state’s Department of Environmental Conservation is wrapping up an environmental impact review and proposed new regulations for gas drilling. Permitting for new gas wells has been on hold since the review began almost four years ago. While the proposed permit guidelines do mention injection wells as a possible means of wastewater disposal, any shutdown of such wells in Ohio would have no effect on New York’s regulatory process, department spokesman Emily DeSantis said Tuesday. James Smith, spokesman for the Independent Oil & Gas Association of New York, said he knows of no drillers in the state who are shipping waste to Ohio and whether they would in the future is a matter of speculation. ___ Associated Press writers Kevin Begos in Pittsburgh, Mary Esch in Albany, N.Y., and Justin Juozapavicius in Tulsa, Okla., contributed to this report.

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Evidence Links Fracking To Ohio Earthquakes

January 3, 2012

CLEVELAND — A northeast Ohio well used to dispose of wastewater from oil and gas drilling almost certainly caused a series of 11 minor quakes in the Youngstown area since last spring, a seismologist investigating the quakes said Monday. Research is continuing on the now-shuttered injection well at Youngstown and seismic activity, but it might take a year for the wastewater-related rumblings in the earth to dissipate, said John Armbruster of Columbia University’s Lamont-Doherty Earth Observatory in Palisades, N.Y. Brine wastewater dumped in wells comes from drilling operations, including the so-called fracking process to extract gas from underground shale that has been a source of concern among environmental groups and some property owners. Injection wells have also been suspected in quakes in Ashtabula in far northeast Ohio, and in Arkansas, Colorado, and Oklahoma, Armbruster said. Thousands of gallons of brine were injected daily into the Youngstown well that opened in 2010 until its owner, Northstar Disposal Services LLC, agreed Friday to stop injecting the waste into the earth as a precaution while authorities assessed any potential links to the quakes. After the latest and largest quake Saturday at 4.0 magnitude, state officials announced their beliefs that injecting wastewater near a fault line had created enough pressure to cause seismic activity. They said four inactive wells within a five-mile radius of the Youngstown well would remain closed. But they also stressed that injection wells are different from drilling wells that employ fracking. Armbruster said Monday he expects more quakes will occur despite the shutdown of the Youngstown well. “The earthquakes will trickle on as a kind of a cascading process once you’ve caused them to occur,” he said. “This one year of pumping is a pulse that has been pushed into the ground, and it’s going to be spreading out for at least a year.” The quakes began last March with the most recent on Christmas Eve and New Year’s Eve each occurring within 100 meters of the injection well. The Saturday quake in McDonald, outside of Youngstown, caused no serious injuries or property damage. Youngstown Democrat Rep. Robert Hagan on Monday renewed his call for a moratorium on fracking and well injection disposal to allow a review of safety issues. “If it’s safe, I want to do it,” he said in a telephone interview. “If it’s not, I don’t want to be part and parcel to destruction of the environment and the fake promise of jobs.” He said a moratorium “really is what we should be doing, mostly toward the injection wells, but we should be asking questions on drilling itself.” A spokesman for Gov. John Kasich, an outspoken supporter of the growing oil and natural gas industry in Ohio, said the shale industry shouldn’t be punished for a fracking byproduct. “That would be the equivalent of shutting down the auto industry because a scrap tire dump caught fire somewhere,” said Kasich spokesman Rob Nichols. He said 177 deep injection wells have operated without incident in Ohio for decades and the Youngstown well was closed within 24 hours of a study detailing how close a Christmas Eve quake was to the well. The industry-supported Ohio Oil and Gas Association said the rash of quakes was “a rare and isolated event that should not cast doubt about the effectiveness” of injection wells. Such wells “have been used safely and reliably as a disposal method for wastewater from oil and gas operations in the U.S. since the 1930s,” the association’s executive vice president, Thomas E. Stewart, said in a statement Monday. Environmentalists are critical of the hydraulic fracturing process, called fracking, which utilizes chemical-laced water and sand to blast deep into the ground and free the shale gas. Critics fear the process itself or the drilling liquid, which can contain carcinogens, could contaminate water supplies, either below ground, by spills, or in disposed wastewater. Permits allowing hydraulic fracturing in Ohio’s portion of the Marcellus and the deeper Utica Shale formations rose from one in 2006 to at least 32 in 2011.

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Ray A. Rothrock: Venture Capital and Energy In the United States: Where To From Here

January 1, 2012

Six or seven years ago the broader venture capital community took an interest in energy as a category for venture capital investing. Storied venture capitalist like John Doerr and Vinod Khosla began to give speeches, raised lots of capital and put down some bets. Many firms were already making sizeable investments but not the headliners. The idea that energy might be “cool” began to percolate into the ethos of Silicon Valley. So why did this begin to happen, where are we today, and most importantly, where do we go from here. How did energy become a hot investment area? Hard to recall exactly what were the hot investment sectors six years ago, but for venture capital technology was not a hot investment sector. Healthcare was still hanging on as a good market for investments but not going gangbusters, either. Entrepreneurs and some VCs noticed the rising public discussion about climate change. In the news, for example, was the Kyoto Protocol adopted by the world was now in force in February 2005. The IPCC, a world-based organization founded in 1988, which few people knew or cared much about issued a report in 2007 sounding the alarm bell on climate change. This brought the concern for climate change to the world’s scientific community and the topic above the crease on the front page of every major newspaper and media outlet, and on the lips of every politician. Entrepreneurs are quick studies of hot trends and opportunities. In the Silicon Valley many successful IT entrepreneurs with VC relationships from the decade of the 1990s took an interest. They quickly concluded that a change in the American energy landscape was an opportunity in the making and thus began to team up with the scientists and engineers in energy, many from the 70s revolution in solar innovation. Together they put out business plans all along Sand Hill Road seeking capital. I recall one year Venrock saw over 80 solar investment opportunities. VCs are nothing if not recognizers of patterns. Entrepreneurs were forming up new energy companies and so the VCs quickly followed suit rationalizing there would be a big payoff because the markets were huge and new technology was emerging. What was driving the energy investment opportunity? During the 2000s, the Bush Administration mostly turned a blind eye to the discussion of climate change. After all, it was fighting a significant war that many would argue was about energy, in particular oil. Also during this decade the world watched the rise of China’s economy and its energy-consuming middle class. This new demand on energy impacted world energy prices practically over night. In 2010, China’s total energy output equaled that of the United States for the first time ever even though its economic output was still about 25 percent that of the United States. During this decade the world saw oil prices hit an all time high of $145 per barrel in July 2008. It was amazing how quickly Americans changed driving habits; some even bought Priuses as fast as these new hybrid cars could get to our shores. Of course the world economic crisis of 2008 revealed the fact that every country had too much debt. The governments of many major countries enacted emergency legislation when they realized they could not pay their debt but had to keep their countries afloat and productive. Nonetheless, the Great Recession set in. As the decade came to a close, the personal pain of high unemployment and recession unsettled most of the developed world. All of the drivers for new energy solutions — recognized climate change by the authoritative IPCC, economic prosperity and rising energy consumption of the world’s most populous country, China, and the daily reminder that the United States was in a protracted war where it gets 22 percent of its oil supply signaled that business as usual in energy was not acceptable. So where are we as 2011 closes out and 2012 begins? Here are some facts to consider. In March of 2011 the world witnessed a colossal nuclear power disaster at Fukushima, Japan resulting from nearly the worst earthquake and tsunami ever. The outcome is likely a significant delay in the nuclear renaissance in the developed world and the outright abandonment of nuclear energy in Germany. The developing world has no choice in the matter if they want to grow. They are and will continue to deploy nuclear power. Oil and gas exploration is booming since the U.S. figured out that shale gas was essentially everywhere, cheap to extract, and domestic. Rig counts are up and unemployment in O&G is at an all time low. Oil on the world market fluctuated wildly from about $70 to $120 a barrel as the Arab Spring happened this last year and has now settled at just over $100 a barrel. No one thinks it will go below that price for the foreseeable future. Most of the progressive countries in the Middle East completely depend on oil prices above $80 to support their government programs. Letting the price drop puts those governments at risk. Here in the United States the price of gasoline is 70 cents lower than its high in the spring of 2011 citing reduced demand. It appears that $3.50 to $4.50 a gallon for gasoline evokes behavior change in Americans to cut back their demand. Unfortunately a vocal minority continues to challenge climate change. They say that recent data suggests that the some glaciers are not melting quite as fast once thought and some not at all. The same data also suggests that the polar ice cap is melting enough to open shipping routes over the top of the Earth in the coming years. CO2 is a main culprit. It is both naturally produced and man-made. We must step in now with technologies to reduce the use of fossil fuels, a key contributor to CO2. Not doing something about CO2 production and risking the known dire consequences of that decision would not be a wise choice for the planet. In 2011 the world population surpassed 7 billion. General consensus is population will top at about 10 billion a few decades from now. The real impact on the planet of this growth in population is the transformation going within the societies of the world’s developing nations. For fifty years North America and Europe, with some Japan, dominated the world’s output and consumption based on their stable middle class populations. That is changing before our eyes. The OECD in 2010 estimated the world’s middle class in 2009 to be about 1.8 billion and projected it to grow to 3.2 billion in 2020 and 4.9 billion in 2030. Almost all of the growth, 85%, is projected to come from Asia. As a percentage of the total middle class, the world’s consumers from the developed world will decline and the world’s consumers from the developing world will dominate. We know from history that energy is a fundamental driver of this growth and prosperity. The result is massive increase in energy demand for the world, perhaps as much as 50 percent higher from today’s levels by 2035. In 2012 the United States will have a presidential election. All the candidates on the Republican side largely poo-poo climate change science and essentially advocate “drill baby drill” to address the United States’ energy needs for the coming decades. President Obama, who came to office with energy as one of the legs of his policy stool, seems to have abandoned energy as a platform position, yet he was so close to a national energy policy in late 2009. And then you complicate the alternative energy discussion with the spectacular California-based venture capital flameout of Solyndra, which had also been backed by the U.S. Government to the tune of $535 million. No national politician is going to go any where near alternative energy as exemplified by solar. They will all say let’s do more of what we are currently doing since it appears to be the least risky course. This all translates to “do nothing!” This is nonsense and fool hearty and is the most risky of choices. Where to from here? The forces that put the United States at a crossroads in 2005 — climate change science, economic needs for new industry, and desire for national security — are as real as ever and must be addressed by our body politic. The world will not stand still waiting for America. In the Silicon Valley and around the country, the entrepreneurial spirit of the great United States went to work over night in the last decade. It is still hard at work on these problems. In the recent past, optimistic entrepreneurs started thousands of energy companies across the spectrum of energy opportunities. These companies were backed by venture capitalist who invested billions of dollars. To date, 23 venture-backed energy companies have gone public and many more are making themselves ready. While some companies do not survive, of course, there are many spectacular examples of winners. Tesla, the electric car company, appeared out of nowhere demonstrating that in America a new car company can indeed be built. Bright Source Energy is building huge utility scale solar power plants on U.S. soil. A123 is building batteries capable of industrial and grid-scale applications. The list goes on and on. America needs to keep doing what it does so well — innovate. Innovation costs money. Venture capital must keep investing in energy startups that make economic sense. Public investors who provide the real growth capital for young companies need to come to the capital markets and buy those stocks. As a key source of innovation funding, the U.S. Government must keep putting R&D dollars into the market through its many programs including ARPA-E. It is this partnership of entrepreneurs, investors, and the U.S. Government that will keep the United States a leader in new energy technologies. My hope is that the new generation of political leaders, young entrepreneurs, and venture capitalists with long-term points of view can rally to the cause of changing America’s energy future. It’s not about being green or not being green. Such labels are deceiving and simple. It’s about being smart, making good investments and working hard. It’s about painting a vision of the future and then investing in that vision and seeing it through. Where do we go from here? My bet is up and to the right.

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Steven Cohen: Sustainability, Politics, and Consumerism

December 28, 2011

As 2011 ends and we find some time for reflection, I am thinking a lot about the issue of material consumption and sustainability. Many of my students believe that a key answer to the crisis of planetary sustainability is for individuals to reduce their material consumption. When they say this, they are not thinking of the planet’s poorest people, but the planet’s richest people. There is a case to be made for seeing the issue of sustainability in these terms, but I’m not sure the issue can or should be confined to a focus on individual consumption. In any case, there is a strong argument for learning how to measure and assess the sustainability of all forms of economic consumption. It is important to understand the power and seductiveness of material consumption and our modern technological way of life. In America, less than one percent of our population works on farms as compared to 40% at the start of the 20th century. Most of us are no longer directly involved in a daily struggle for food, water and shelter. Cheap and plentiful energy has helped make many of us mobile, comfortable, entertained, educated and well-fed. Those at home and around the world who do not share in this bounty, want it. And the root cause of much of the political turmoil in the world can be found in the gap between economic aspirations and realities. America’s wealth and its level of political stability are closely connected phenomena. Presidential elections are won and lost on the degree to which candidates can convince voters that they can create economic growth. During Bill Clinton’s 1992 campaign for president his political advisors constantly reminded him, “it’s the economy, stupid!” Political power and economic growth are closely connected in our system. A great threat to political stability is a situation where young people receive an education and then are unable to find a meaningful way to use what they have learned. They are wide open targets for cynical political manipulation by unscrupulous political leaders. All unemployment is politically destabilizing: of the educated or uneducated, of those young and those no longer young. People without work have less of a stake in society and are less concerned with its breakdown. Work is not simply a source of sustenance in the modern world, but a key part of an individual’s identity. With the population increasing on the planet, reduced consumption could lead to increased unemployment. So in order to assure full employment we need to increase rather than decrease economic consumption. Of course all consumption is not equally sustainable. Downloading an application on your smartphone uses fewer nonrenewable resources than driving to the mall. Borrowing a book from a library uses fewer nonrenewable resources than buying the book from a book store. Moreover, creating an “app” and operating a library both require people and enable them to hold jobs. More and more of our economic production relates to ideas, knowledge and entertainment. Still, we all consume food, clothing, shelter and transportation and those goods require the use of material resources. Material economic production and consumption is non-optional and is growing quickly in China and India and throughout the developing world. How do we ensure that the material consumption we require is sustainable? Is there a chance that we can move from an ecologically destructive, fossil fuel and resource intensive economy to something else? Do people understand the crisis before us? Judging by the American presidential campaign, the answer has to be no. The Obama Administration keeps throwing environmental protection and renewable energy development under the political bus. The Republicans are worse and want to end EPA and continue to outdo each other in thinking of new ways to increase our reliance on fossil fuels. It is a truly terrifying moment when you realize that our political leadership completely misunderstands the connection between environmental protection and economic growth. To these folks, regulations are “job killers” and scientific evidence does not seem to make much of a difference in the national political dialogue. It is difficult to have a meaningful public conversation on the issue of consumption and sustainability when the national political class in the United States still debates environmental issues like it’s 1969. I think that a reduction of economic consumption would destabilize our politics and society. But I think if we do not make the transition to a renewable energy and material-based economy, the reduction in the planet’s ability to produce goods is only a matter of time. The planet’s productive systems are powered by the sun. Ultimately, human productive systems must mirror the planet’s, either through processes powered by the sun such as photosynthesis or through artificial or nuclear suns we create for ourselves. Polluting our air and water to keep the economic machine moving is a short-run and ultimately self-defeating policy. But even if shutting down that machine was politically feasible (and it is not), a shrinking world economy would cause massive human misery. The inevitable conclusion is that the issue of sustainability will eventually reach and even dominate the American political agenda. It will not be defined by a smaller economy, but a different sort of economy: With more resources devoted to preserving the planet and its productive capacity. There is a paradigm shift underway toward a sustainable, renewable economy. You see it in many cities, communities and in a growing number of corporations. Support for sustainability is more common among young people than old people, and it is as much a cultural and social mindset as it is a political motivation. In fact, at this point, the political force of sustainability is latent rather than manifest. But it is coming. At its core will be a new form of consumerism and new modes of production. Production will be more efficient and renewable. Consumers will resist goods and services that are not sustainable. Our political and regulatory institutions will both lead and follow these new realities. Unfortunately, this will not happen during the presidential election year about to start. But it is in our future.

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What’s Causing House Fires From Lightning Strikes?

December 22, 2011

WESTERVILLE, Ohio (AP) — Reports of lightning-related fires and gas leaks in at least a dozen states have raised concerns about the use of flexible gas lines made of corrugated stainless steel tubing and have led to lawsuits, studies and efforts to better track the incidents. Manufacturers have defended the plastic-coated metal tubing, known as CSST, which has become increasingly common in new homes since it was introduced domestically more than two decades ago. Fire officials and researchers are trying to determine whether to blame a faulty product, unsafe installation or something else for the blazes. Four homes caught on fire in central Ohio over a stormy 12-hour period this summer. Genoa Township Fire Chief Gary Honeycutt said he believes lightning struck at or near the homes, and the electrical charge traveled along the CSST before jumping to a less resistant pathway nearby such as a metal ventilation duct. It then punctured a hole the size of a pencil tip in the tubing and created a gas leak that could ignite, he said. One of the fires charred the ceiling in the lowest level of Michael Wagner’s dream home, a two-story property near a country club and golf course in an area where farmland has been turned into neatly manicured neighborhoods of newer homes. “It had been burning the joists much like a blowtorch,” said Wagner, whose family moved into the home a few weeks before the fire and has been displaced for months because of smoke damage. The home passed inspection without problems, they said, but they later learned lightning had struck it and created a gas leak in 2004. Firefighters and gas providers point out that the fires seem to occur with an unusual combination of factors — a newer building that has CSST, a lightning strike in just the right place, the puncture of the tubing and the spark to ignite the gas. Most of the Ohio fires were in the central part of the state, though it’s possible there are others that haven’t been linked to the tubing because the reports didn’t include that detail. “I’d say we’ve got a problem with that product, but it’s very anecdotal evidence that we have,” said state Fire Marshal Larry Flowers, who recently started collecting information about such fires around Ohio. A class-action lawsuit filed in Arkansas against several manufacturers claimed the tubing posed an unreasonable risk of fire from lightning strikes, leading to a 2006 settlement that was worth up to about $29 million, according to a copy of the settlement agreement provided by an attorney not affiliated with the case. Lawyers involved in the case did not respond to messages for comment. And an unresolved wrongful death lawsuit blames a CSST failure for a 2008 blaze that killed three children and their grandmother in rural Jefferson, S.D. “For a homeowner or a business owner, really the problem with the product is it’s very unpredictable when it’s going to fail, and it’s a very difficult product to make safe,” said Mark Utke, a lawyer with the Cozen-O’Connor firm in Philadelphia, which is working on the South Dakota case and dozens more it connects to CSST. Manufacturers say the flexible tubing was developed in Japan as an alternative to rigid gas piping that could break during an earthquake, and hundreds of millions of feet of tubing have been installed in U.S. homes and other buildings. It can cost significantly more than black metal pipe, with one recent estimate putting the cost at 65 cents for a foot of rigid pipe in Ohio and about a dollar more for standard CSST. But the tubing is easier to install and can bend around corners, appearing much like a garden hose affixed to ceiling joists. Both types of lines meet existing product and code requirements, but manufacturers say that CSST is the safer option and that it’s less likely to crack, leak or cause a gas explosion because it doesn’t require as many joints to follow the shape of a building’s interior. “Of course we would like everything in the house to be safe from lightning, but that’s not a requirement,” said Bob Torbin, the director of codes and standards for Exton, Pa.-based Omega Flex Inc., one of the producers targeted in lawsuits. “And so we have to ask ourselves: Does this represent an unreasonable risk compared to other risks that you take when you occupy your home?” That’s a measurement that’s tough to quantify, he said. In response to concerns, Omega Flex stopped offering its earlier CSST product this fall and instead is promoting tubing wrapped in a special covering intended to make it more resistant to lightning strike damage. Some manufacturers and builders say there may be other contributing factors in the tubing fires, including whether gas lines are correctly grounded and bonded, meaning they’re linked into a system that would direct energy from a lightning strike into the earth. The president of the Ohio Home Builders Association said he has used the tubing and has no doubt that it’s a safe product when installed properly. “We have it in our home,” said Bill Owens, who’s also founder and president of Owens Construction in suburban Columbus. “A lot of it is just paying attention to the actual installation requirements and the code requirements associated with safe installation.” In Indiana, officials increased code requirements for bonding and grounding in new homes and expanded the required gap between gas tubing and other metal items to help decrease the risk of a problem. The research foundation affiliated with the National Fire Protection Association, which sets national codes that pertain to construction, is studying how to mitigate any lightning-related dangers of CSST and has sought information from various stakeholders in the discussion, including manufacturers and insurers. “Now that it’s out there, how do we make it safe?” said Mitchell Guthrie, an engineering consultant from Blanch, N.C., who has researched CSST and lightning protection and worked with a panel studying concerns. Iowa Fire Marshal Ray Reynolds said people in the insurance industry have linked the tubing to more than 200 fires in his state over the past two years, and he doesn’t believe proper grounding and bonding is the only solution. He said Iowa has seen some problems with properly bonded systems, and he decided to replace the tubing in his own home with the updated, extra-protected CSST. Wagner, the Ohio homeowner displaced by a fire, said he decided to replace his flexible tubing with rigid lines to help his family feel safer. The American Gas Association, which represents gas providers, doesn’t think CSST is a defective product, but it has helped develop product standards and has supported the industry’s effort to educate the public about concerns and to minimize any dangers. “It’s just a situation that could occur, just like lightning could penetrate a home and damage wiring,” said Jim Ranfone, the AGA’s managing director of codes and standards. “It’s not a panic situation, but it’s one that I would sort of keep tabs on to make sure the system was properly bonded,” he said. ___ Associated Press writer Doug Whiteman contributed to this report. ___ Kantele Franko can be reached at http://www.twitter.com/kantele10.

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Feds Approve New Solar Energy Project

December 21, 2011

PHOENIX — The federal government has approved the Sonoran Solar Energy Project, which will be built on public lands in Arizona’s Maricopa County. Bureau of Land Management officials say it’s the first solar energy project approved on federal public lands in Arizona. The 300-megawatt project is expected to provide enough energy when operating at full capacity to power 90,000 homes. The 2,013-acre project is smaller than what was originally proposed (3,620 acres) and will use a fraction of the water (33 acre/feet a year) than originally envisioned (about 3,000 acre/feet a year). The project site is in the Rainbow Valley east of State Route 85 and south of Buckeye. The area contains wildlife habitat and authorities say burrowing owls will be relocated to other BLM lands.

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Barbara Boxer’s Transportation Bill Would Drop Environmental Criteria In Much-Touted TIFIA Loan Program

December 21, 2011

NEW YORK — A bipartisan transportation bill sponsored by Sen. Barbara Boxer would dramatically expand a federal program that finances “innovative” transportation projects. But in order to secure the expansion of the Transportation Infrastructure Finance and Innovation Act (TIFIA), Boxer had to introduce new rules that would strip away current criteria favoring environmentally sustainable projects, progressive transportation advocates say. Boxer’s transportation bill sailed through the Senate Environment and Public Works committee in an 18-0 bipartisan vote on Nov. 9. But critics say it came at a price for the TIFIA program, which would no longer give environmentally sustainable projects a leg up in the selection process. “At a time when the nation’s transportation system is starved for funds and there is a consensus that dollars need to be spent more wisely, it is outrageous that the one program that would be massively increased would no longer try to deliver the best bang for each buck,” said Phineas Baxandall, a senior analyst at US PIRG, a nonprofit public interest advocacy group. TIFIA has recently been touted by both Democrats and Republicans as an example of how to prop up infrastructure financing in a time of budget deficits. About $110 million a year in federal funds is turned into $1.1 billion in federally-supported loans, which then go a third of the way toward leveraging loans from private sources. Because TIFIA is a loan program, projects have to find some way of paying back the federal government. The revenue stream is most often a toll or other “user fee,” but sometimes it’s something like Los Angele’s 2008 Measure R sales tax . Although TIFIA is run through the Federal Highway Administration, its loans have been used to support everything from toll roads in Texas to light rail in Denver. The only problem: At a time when private financing is hard to come by, everybody wants in on the action. This year there were 34 requests for $14 billion in loans — 14 times more than what the program could support. A lot of cities and states wound up empty-handed. So when the Senate’s Environment and Public Works Committee met to hammer out a deal on a new transportation bill, consensus was quickly reached on vastly expanding the size of TIFIA’s annual funding from $122 million to $1 billion a year. That money could in turn support up to $10 billion in federal loans. It was something of a breakthrough in the transportation world. For years Congress has patched together short-term extensions of the transportation bill. The EPW proposal sponsored by Boxer offers a way out — and, she hopes, a way to finance LA Mayor Antonio Villaraigosa’s dream of building 30 years of transportation projects in a decade. But the bipartisan consensus on the transportation bill appears to have come at a price. One apparent sticking point for Senate Republicans, led by outspoken climate change denier James Inhofe (R-Okla.), the ranking member on EPW, was the 20 percent weight TIFIA puts on “the extent to which the project helps maintain or protect the environment.” That criterion, introduced by the Obama administration, gives mass transit a leg up against toll roads and highways. But it’s anathema to critics like the libertarian Reason Foundation’s Robert Poole, who argued that the emphasis on environmental sustainability “has apparently led to toll projects that add highway capacity getting aced out.” “Senator Boxer’s working in an environment where she’s got to get support from people on the other side of the aisle, and these are the types of issues she’s hammering out,” said Raffi Hamparian, director for federal affairs at the Los Angeles County Metropolitan Transportation Authority. Phineas Baxandall, a senior analyst at U.S. PIRG, said he thinks Boxer may have cut a bad deal. He argues that doing away with TIFIA’s selection criteria means the U.S. Department of Transportation will be forced to give money to any transportation project that meets bare-bones financial eligibility requirements. Under this rolling selection process, when the $1 billion annual federal credit support is gone, it’s gone for the year. Toll roads, backed by private investors looking to make a buck off of “public-private partnerships,” will be first in line, he argued, since they have plans that are “just ready to go off the shelf.” “Those companies are going to likely get the lion’s share of TIFIA funds. And those companies have a lot of power on Wall Street and make a lot of campaign donations, and just have a lot of power,” he said. Los Angeles hopes it will get some of that TIFIA money. Not so fast, Baxandall said. “Places like Atlanta and L.A. are hoping that the new bounty of TIFIA will allow them to finance public transit expansions, but they are likely to find the money already claimed by private toll road projects in places like Florida and Texas.” Others aren’t so sure that mass transit and toll roads are mutually exclusive. Although the selection criterion will be gone, environmentally friendly transportation secretaries will still find ways to make sure sustainable projects head to the front of the line, they argue. A spokesperson who is a staff member of the Senate EPW committee said, “This provision continues to enable the secretary to ensure that each project receives careful consideration. We believe that strong projects will succeed in the new program.” Roy Kienitz, who was until recently the Department of Transportation’s under secretary for policy, said he thought the program’s vastly expanded size might mean there will be plenty of space for all of the projects that meet the eligibility requirements. Although TIFIA was vastly oversubscribed this year, Kienitz said, not all of the applications were truly eligible. “Of the people who are applying, I would say at least half of them fall into the criteria of either a) they just don’t have a realistic idea of a project for a whole host of reasons or b) they may have realistic criteria for a project, but they just haven’t done their homework.” Hamparian, of LA’s Metro, is sure that his city’s project, at the least, will win if TIFIA is expanded. “We’re pretty confident that we’re in a good position to present our project for consideration for TIFIA loans,” he said. “Our bottom line is that we’ve worked very closely with Senator Boxer and we’re very supportive of the final product.” Boxer’s bill is still far from passage. More Senate committees will take a shot at the transportation bill soon, and then the GOP-controlled House will also have its say. Some observers predict the long-awaited arrival of a new transportation bill could simply get pushed off for an additional year in favor of another short-term extension.

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White House To Republicans: ‘Get The Job Done’

December 19, 2011

With some Republican opposition toward a short-term payroll tax cut extension out in the open, the White House responded on Sunday with its own intentions. In a rare Saturday session, the Senate easily passed a measure that extends the popular middle-class cut. The deal was expected to pass in the House on Monday — until sources said that Republicans are threatening to squelch the two-month resolution. White House Communications Director Dan Pfeiffer released a statement Sunday evening, prodding the GOP to refrain from resorting to politics on this issue. The bipartisan compromise passed in the Senate yesterday received 89 votes, including 39 Republican votes, and Speaker Boehner himself just yesterday called it a “good deal” and a “victory.” The near 90 percent approval by the Senate reflected the view by the overwhelming number of Senate Republicans — as well as Democrats — that the best way to achieve the President’s goal of ensuring that taxes were not increased on 160 million Americans as we enter the New Year was to support this bipartisan compromise. If House Republicans refuse to pass this bipartisan bill to extend the payroll tax cut, there will be a significant tax increase on 160 million hardworking Americans in 13 days that would damage the economy and job growth. After months of opposition, we are glad that Republicans were finally showing a willingness to not raise taxes on middle class families. As the President said yesterday, it is inexcusable to do anything less than extend this tax cut for the entire year, and Congress must work on a one year deal. But they should pass the two month extension now to avoid a devastating tax hike from hitting the middle class in just 13 days. It’s time House Republicans stop playing politics and get the job done for the American people. Earlier in the day, House Speaker John Boehner (R-Ohio) confirmed that House Republicans oppose the deal passed by the Senate. Boehner appeared on NBC’s “Meet The Press,” making it clear that his GOP cohorts are against any type of short-term solution. “I believe that two months is just kicking the can down the road,” Boehner said. “It’s time to just stop, do our work, resolve the differences and extend this for one year.” The two-percent payroll tax break has been reaped by some 160 million Americans over the last year. Within Saturday’s Senate measure, President Barack Obama and Democrats were willing to concede on the contentious Keystone XL pipeline — agreeing to language requiring the administration to make a decision within 60 days.

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The ‘World’s Worst Ecological Oil Catastrophe’

December 18, 2011

USINSK, Russia (AP) — On the bright yellow tundra outside this oil town near the Arctic Circle, a pitch-black pool of crude stretches toward the horizon. The source: a decommissioned well whose rusty screws ooze with oil, viscous like jam. This is the face of Russia’s oil country, a sprawling, inhospitable zone that experts say represents the world’s worst ecological oil catastrophe. Environmentalists estimate at least 1 percent of Russia’s annual oil production, or 5 million tons, is spilled every year. That is equivalent to one Deepwater Horizon-scale leak about every two months. Crumbling infrastructure and a harsh climate combine to spell disaster in the world’s largest oil producer, responsible for 13 percent of global output. Oil, stubbornly seeping through rusty pipelines and old wells, contaminates soil, kills all plants that grow on it and destroys habitats for mammals and birds. Half a million tons every year get into rivers that flow into the Arctic Ocean, the government says, upsetting the delicate environmental balance in those waters. It’s part of a legacy of environmental tragedy that has plagued Russia and the countries of its former Soviet empire for decades, from the nuclear horrors of Chernobyl in Ukraine to lethal chemical waste in the Russian city of Dzerzhinsk and paper mill pollution seeping into Siberia’s Lake Baikal, which holds one-fifth of the world’s supply of fresh water. Oil spills in Russia are less dramatic than disasters in the Gulf of Mexico or the North Sea, more the result of a drip-drip of leaked crude than a sudden explosion. But they’re more numerous than in any other oil-producing nation including insurgency-hit Nigeria, and combined they spill far more than anywhere else in the world, scientists say. “Oil and oil products get spilled literally every day,” said Dr. Grigory Barenboim, senior researcher at the Russian Academy of Sciences’ Institute of Water Problems. No hard figures on the scope of oil spills in Russia are available, but Greenpeace estimates that at least 5 million tons leak every year in a country producing about 500 million tons a year. Dr. Irina Ivshina, of the government-financed Institute of the Environment and Genetics of Microorganisms, supports the 5 million ton estimate, as does the World Wildlife Fund. The figure is derived from two sources: Russian state-funded research that shows 10-15 percent of Russian oil leakage enters rivers; and a 2010 report commissioned by the Natural Resources Ministry that shows nearly 500,000 tons slips into northern Russian rivers every year and flow into the Arctic. The estimate is considered conservative: The Russian Economic Development Ministry in a report last year estimated spills at up to 20 million tons per year. That astonishing number, for which the ministry offered no elaboration, appears to be based partly on the fact most small leaks in Russia go unreported. Under Russian law, leaks of less than 8 tons are classified only as “incidents” and carry no penalties. Russian oil spills also elude detection because most happen in the vast swaths of unpopulated tundra and conifer forestin the north, caused either by ruptured pipes or leakage from decommissioned wells. Weather conditions in most oil provinces are brutal, with temperatures routinely dropping below minus 40 degrees Celsius (minus 40 Fahrenheit) in winter. That makes pipelines brittle and prone to rupture unless they are regularly replaced and their condition monitored. Asked by The Associated Press to comment, the Natural Resources Ministry and the Energy Ministry said they have no data on oil spills and referred to the other ministry for further inquiries. Even counting only the 500,000 tons officially reported to be leaking into northern rivers every year, Russia is by far the worst oil polluter in the world. —Nigeria, which produces one-fifth as much oil as Russia, logged 110,000 tons spilled in 2009, much of that due to rebel attacks on pipelines. —The U.S., the world’s third-largest oil producer, logged 341 pipeline ruptures in 2010 — compared to Russia’s 18,000 — with 17,600 tons of oil leaking as a result, according to the U.S. Department of Transportation. Spills have averaged 14,900 tons a year between 2001 and 2010. —Canada, which produces oil in weather conditions as harsh as Russia’s, does not see anything near Russia’s scale of disaster. Eleven pipeline accidents were reported to Canada’s Transport Safety Board last year, while media reports of leaks, ranging from sizable spills to a tiny leak in a farmer’s backyard, come to a total of 7,700 tons a year. —In Norway, Russia’s northwestern oil neighbor, spills amounted to some 3,000 tons a year in the past few years, said Hanne Marie Oeren, head of the oil and gas section at Norway’s Climate and Pollution Agency. Now that Russian companies are moving to the Arctic to tap vast but hard-to-get oil and gas riches, scientists voice concerns that Russia’s outdated technologies and shoddy safety record make for a potential environmental calamity there. Gazpromneft, an oil subsidiary of the gas giant Gazprom, is preparing to drill for oil in the Arctic’s Pechora Sea, even as environmentalists complain that the drilling platform is outdated and the company is not ready to deal with potential accidents. Government scientists acknowledge that Russia does not currently have the required technology to develop Arctic fields but say it will be years before the country actually starts drilling. “We must start the work now, do the exploration and develop the technology so that we would be able to … start pumping oil from the Arctic in the middle of this century,” Alexei Kontorovich, chairman of the council on geology, oil and gas fields at the Russian Academy of Sciences, told a recent news conference. The same academy’s Barenboim said, however, that Russian technology is developing too slowly to make it a safe bet for Arctic exploration. “Over the past years, environmental risks have increased more sharply compared to how far our technologies, funds, equipment and skills to deal with them have advanced,” he said. In 1994, the republic of Komi, where Usinsk lies 60 kilometers (40 miles) south of the Arctic Circle, became the scene of Russia’s largest oil spill when an estimated 100,000 tons splashed from an aging pipeline. It killed plants and animals, and polluted up to 40 kilometers (25 miles) of two local rivers, killing thousands of fish. In villages most affected, respiratory diseases rose by some 28 percent in the year following the leak. Seen from a helicopter, the oil production area is dotted with pitch-black ponds. Fresh leaks are easy to find once you step into the tundra north of Usinsk. To spot a leak, find a dying tree. Fir trees with drooping gray, dry branches look as though scorched by a wildfire. They are growing insoil polluted by oil. Usinsk spokeswoman Tatyana Khimichuk said the city administration had no powers to influence oil company operations. “Everything that happens at the oil fields is Lukoil’s responsibility,” she said, referring to Russia’s second largest oil company, which owns a network of pipelines in the region. Komi’s environmental protection officials also blamed oil companies. The local prosecutor’s office said in a report this year that the main problem is “that companies that extract hydrocarbons focus on making profits rather than how to use the resources rationally.” Valery Bratenkov works as a foreman at oil fields outside Usinsk. After hours, he is with a local environmental group. Bratenkov used to point out to his Lukoil bosses that oil spills routinely happen under their noses and asked them to repair the pipelines. “They were offended and said that costs too much money,” he said. Activists like Bratenkov find it hard if not impossible to hold authorities to account in the area since some 90 percent of the local population comprises oil workers and their families who have moved from other regions of Russia, and depend on the industry for their livelihood. Representatives of Lukoil denied claims that they try to conceal spills and leaks, and said that no more than 2.7 tons leaked last year from its production areas in Komi. Ivan Blokov, campaign director at Greenpeace Russia, who studies oil spills, said the situation in Komi is replicated across Russia’s oil-producing regions, which stretch from the Black Sea in the southwest to the Chinese border in Russia’s Far East. “It is happening everywhere,” Blokov said. “It’s typical of any oil field in Russia. The system is old and it is not being replaced in time by any oil company in the country.” What also worries scientists and environmentalists is that oil spills are not confined to abandoned or aging fields. Alarmingly, accidents happen at brand new pipelines, said Barenboim. At least 400 tons leaked from a new pipeline in two separate accidents in Russia’s Far East last year, according to media reports and oil companies. Transneft’s pipeline that brings Russian oil from Eastern Siberia to China was put into operation just months before the two spills happened. The oil industry in Komi has been sapping nature for decades, killing or forcing out reindeer and fish. Locals like the 63-year-old Bratenkov are afraid that when big oil leaves, there will be only poisoned terrain left in its wake. “Fishing, hunting — it’s all gone,” Bratenkov said. ___ Bjoern H. Amland contributed to this report from Oslo, Norway. ___ Nataliya Vasilyeva can be reached at http://twitter.com/natvasilyevaap Environmentalists estimate at least 1 percent of Russia’s annual oil production, or 5 million tons, is spilled every year. That is equivalent to one Deepwater Horizon-scale leak about every two months. Crumbling infrastructure and a harsh climate combine to spell disaster in the world’s largest oil producer, responsible for 13 percent of global output. Oil, stubbornly seeping through rusty pipelines and old wells, contaminates soil, kills all plants that grow on it and destroys habitats for mammals and birds. Half a million tons every year get into rivers that flow into the Arctic Ocean, the government says, upsetting the delicate environmental balance in those waters. It’s part of a legacy of environmental tragedy that has plagued Russia and the countries of its former Soviet empire for decades, from the nuclear horrors of Chernobyl in Ukraine to lethal chemical waste in the Russian city of Dzerzhinsk and paper mill pollution seeping into Siberia’s Lake Baikal, which holds one-fifth of the world’s supply of fresh water. Oil spills in Russia are less dramatic than disasters in the Gulf of Mexico or the North Sea, more the result of a drip-drip of leaked crude than a sudden explosion. But they’re more numerous than in any other oil-producing nation including insurgency-hit Nigeria, and combined they spill far more than anywhere else in the world, scientists say. “Oil and oil products get spilled literally every day,” said Dr. Grigory Barenboim, senior researcher at the Russian Academy of Sciences’ Institute of Water Problems. No hard figures on the scope of oil spills in Russia are available, but Greenpeace estimates that at least 5 million tons leak every year in a country producing about 500 million tons a year. Dr. Irina Ivshina, of the government-financed Institute of the Environment and Genetics of Microorganisms, supports the 5 million ton estimate, as does the World Wildlife Fund. The figure is derived from two sources: Russian state-funded research that shows 10-15 percent of Russian oil leakage enters rivers; and a 2010 report commissioned by the Natural Resources Ministry that shows nearly 500,000 tons slips into northern Russian rivers every year and flow into the Arctic. The estimate is considered conservative: The Russian Economic Development Ministry in a report last year estimated spills at up to 20 million tons per year. That astonishing number, for which the ministry offered no elaboration, appears to be based partly on the fact most small leaks in Russia go unreported. Under Russian law, leaks of less than 8 tons are classified only as “incidents” and carry no penalties. Russian oil spills also elude detection because most happen in the vast swaths of unpopulated tundra and conifer forestin the north, caused either by ruptured pipes or leakage from decommissioned wells. Weather conditions in most oil provinces are brutal, with temperatures routinely dropping below minus 40 degrees Celsius (minus 40 Fahrenheit) in winter. That makes pipelines brittle and prone to rupture unless they are regularly replaced and their condition monitored. Asked by The Associated Press to comment, the Natural Resources Ministry and the Energy Ministry said they have no data on oil spills and referred to the other ministry for further inquiries. Even counting only the 500,000 tons officially reported to be leaking into northern rivers every year, Russia is by far the worst oil polluter in the world. _Nigeria, which produces one-fifth as much oil as Russia, logged 110,000 tons spilled in 2009, much of that due to rebel attacks on pipelines. _The U.S., the world’s third-largest oil producer, logged 341 pipeline ruptures in 2010 – compared to Russia’s 18,000 – with 17,600 tons of oil leaking as a result, according to the U.S. Department of Transportation. Spills have averaged 14,900 tons a year between 2001 and 2010. _Canada, which produces oil in weather conditions as harsh as Russia’s, does not see anything near Russia’s scale of disaster. Eleven pipeline accidents were reported to Canada’s Transport Safety Board last year, while media reports of leaks, ranging from sizable spills to a tiny leak in a farmer’s backyard, come to a total of 7,700 tons a year. _In Norway, Russia’s northwestern oil neighbor, spills amounted to some 3,000 tons a year in the past few years, said Hanne Marie Oeren, head of the oil and gas section at Norway’s Climate and Pollution Agency. Now that Russian companies are moving to the Arctic to tap vast but hard-to-get oil and gas riches, scientists voice concerns that Russia’s outdated technologies and shoddy safety record make for a potential environmental calamity there. Gazpromneft, an oil subsidiary of the gas giant Gazprom, is preparing to drill for oil in the Arctic’s Pechora Sea, even as environmentalists complain that the drilling platform is outdated and the company is not ready to deal with potential accidents. Government scientists acknowledge that Russia does not currently have the required technology to develop Arctic fields but say it will be years before the country actually starts drilling. “We must start the work now, do the exploration and develop the technology so that we would be able to … start pumping oil from the Arctic in the middle of this century,” Alexei Kontorovich, chairman of the council on geology, oil and gas fields at the Russian Academy of Sciences, told a recent news conference. The same academy’s Barenboim said, however, that Russian technology is developing too slowly to make it a safe bet for Arctic exploration. “Over the past years, environmental risks have increased more sharply compared to how far our technologies, funds, equipment and skills to deal with them have advanced,” he said. In 1994, the republic of Komi, where Usinsk lies 60 kilometers (40 miles) south of the Arctic Circle, became the scene of Russia’s largest oil spill when an estimated 100,000 tons splashed from an aging pipeline. It killed plants and animals, and polluted up to 40 kilometers (25 miles) of two local rivers, killing thousands of fish. In villages most affected, respiratory diseases rose by some 28 percent in the year following the leak. Seen from a helicopter, the oil production area is dotted with pitch-black ponds. Fresh leaks are easy to find once you step into the tundra north of Usinsk. To spot a leak, find a dying tree. Fir trees with drooping gray, dry branches look as though scorched by a wildfire. They are growing insoil polluted by oil. Usinsk spokeswoman Tatyana Khimichuk said the city administration had no powers to influence oil company operations. “Everything that happens at the oil fields is Lukoil’s responsibility,” she said, referring to Russia’s second largest oil company, which owns a network of pipelines in the region. Komi’s environmental protection officials also blamed oil companies. The local prosecutor’s office said in a report this year that the main problem is “that companies that extract hydrocarbons focus on making profits rather than how to use the resources rationally.” Valery Bratenkov works as a foreman at oil fields outside Usinsk. After hours, he is with a local environmental group. Bratenkov used to point out to his Lukoil bosses that oil spills routinely happen under their noses and asked them to repair the pipelines. “They were offended and said that costs too much money,” he said. Activists like Bratenkov find it hard if not impossible to hold authorities to account in the area since some 90 percent of the local population comprises oil workers and their families who have moved from other regions of Russia, and depend on the industry for their livelihood. Representatives of Lukoil denied claims that they try to conceal spills and leaks, and said that no more than 2.7 tons leaked last year from its production areas in Komi. Ivan Blokov, campaign director at Greenpeace Russia, who studies oil spills, said the situation in Komi is replicated across Russia’s oil-producing regions, which stretch from the Black Sea in the southwest to the Chinese border in Russia’s Far East. “It is happening everywhere,” Blokov said. “It’s typical of any oil field in Russia. The system is old and it is not being replaced in time by any oil company in the country.” What also worries scientists and environmentalists is that oil spills are not confined to abandoned or aging fields. Alarmingly, accidents happen at brand new pipelines, said Barenboim. At least 400 tons leaked from a new pipeline in two separate accidents in Russia’s Far East last year, according to media reports and oil companies. Transneft’s pipeline that brings Russian oil from Eastern Siberia to China was put into operation just months before the two spills happened. The oil industry in Komi has been sapping nature for decades, killing or forcing out reindeer and fish. Locals like the 63-year-old Bratenkov are afraid that when big oil leaves, there will be only poisoned terrain left in its wake. “Fishing, hunting – it’s all gone,” Bratenkov said. ___ Bjoern H. Amland contributed to this report from Oslo, Norway. ___

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Canada: EU Green Fuel Proposal Singles Out Tar Sands

December 16, 2011

* Canada says EU green fuel proposal singles out tar sands * EU tar sands plan threatens Canada’s economic interests * EU vote on fuel quality directive seen this month By Marie Maitre PARIS, Dec 16 (Reuters) – The European Union must not single out Canada’s unconventional oil in a proposed ranking of fuels, said a government representative of Alberta, home to the bulk of Canada’s oil wealth, calling for an equal treatment with other fuels. Cal Dallas, Alberta’s Minister of International relations, told Reuters the EU tar sands proposal could damage the reputation of Canada’s most lucrative export, but he declined to say if Ottawa could take the case to the World Trade Organization. “I remain hopeful that we will be able to come to a reasonable solution,” Dallas said in an interview in Paris as part of a European tour due to take him to the WTO in Geneva, and to Britain, a traditional ally of Canada. Britain, home to oil majors BP and Royal Dutch Shell , has led opposition to the EU proposal to label oil derived from Canada’s huge reserves of tar sands, as highly polluting in a proposed green fuel ranking. “We support the idea of measuring these fuels and the move to a lower-carbon environment but we feel that as it (the EU fuel quality directive or FQD) is currently proposed we are being penalised,” Dallas said. “The data for other fuel sources is not transparent, is not available, and is not being considered in the development of the directive.” The EU ranking assigns tar sands a default greenhouse gas value of 107 grams of carbon per megajoule, informing buyers it has more climate impact than conventional crude with 87.5 grams, EU sources have said. The EU green fuel ranking completes legislation introduced in 2008, when the bloc agreed to reduce the carbon intensity of its transport fuels by 6 percent by 2020. Dallas said Alberta’s oil industry was making headway in improving its environmental track record. Extracting oil from a mix of sand and clay is energy and water intensive. “Any development of this scale does have an impact,” he said, adding: “There are tremendous advances that have been made in terms of water use, in terms of the energy required to extract the resource, and the level of monitoring is rising.” The FQD pauses a “reputational issue” to Canada, home to the world’s third largest oil reserves after Saudi Arabia and Venezuela, Dallas said. Ottawa has lobbied hard to build acceptance of oil derived from tar sands, which it sees as vital to its economic future. But Dallas said investments will continue to pour in on Alberta even if the EU goes ahead with current plans as international majors have already spent billions of dollars to develop production. “Fuel derived from oil sands is going to be an essential component of our immediate future,” Dallas said. “The investment plans that are openly discussed and published contemplate hundreds of billions of dollars of investments in the future. There is a strong set of indicators that global investors will continue to make commitments to develop the oil sand resources.” Dallas also shrugged off any temptation Canada may have to limit foreign companies’ access to its vast oil resources. “I don’t contemplate that there will be any change and one of the reasons why we are seeing this level of investments from around the globe is that we are a very predictable, very secure democracy that has offered a very transparent set of rules for business and investments.” (Reporting by Marie Maitre; editing by Jason Neely)

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Experts Say BP Ignored ‘Numerous Warnings’ Before Gulf Spill

December 14, 2011

WASHINGTON (AP) — BP and the oil industry drilling in the Gulf of Mexico lacked the proper safety attitude to handle the large risks of deep-water drilling, leading to the many bad decisions behind the nation’s worst offshore spill, a panel of expert engineers said Wednesday. Despite better safety practices, the experts worried that the improvements could fade without new steps. They pointed to NASA and how lessons the agency learned after the 1986 Challenger disaster eventually dimmed, leading to the 2003 Columbia disaster. The report’s release coincided with the government’s announcement of the results of the first auction of offshore oil leases off the Gulf of Mexico since the April 2010 spill. They drew $337.7 million in winning bids for 191 tracts in the western Gulf off the coast of Texas. BP had the fourth most successful bids, 11 totaling $27.5 million, far behind ConocoPhillips’ 75 winning bids. The National Academy of Engineering, which advises the federal government, cited errors that combined to make the well platform explode and oil spill, but noted a problem with the safety culture underlying last year’s 172 million gallon spill at BP’s Macondo well in the Gulf of Mexico. “The industrial management involved with drilling the Macondo well had not adequately understood and coped with the system safety challenges presented by offshore drilling operations,” the 136-page report said. “This raises questions about the industry’s overall safety preparedness, the ability to handle the complexities of the deep-water operations, and industry oversight to approve and monitor well plans and operational practices and personnel competency and training.” That’s a problem because the report called drilling in the Gulf’s deep waters “some of the most complex and most risky ventures conducted by commercial enterprises.” Experts said a deficient safety culture led BP to rely on blowout preventers — a 57-foot-tall, 400-ton system of well control devices — as equipment that just couldn’t fail. The trouble is that even before the well blowout, “there were numerous warnings to both industry and regulators about potential failures of existing” blowout preventers, the report said. The report pointed to studies in 2001, 2002, 2004, and a 1999 well blowout and fire off the Louisiana coast. “One needs to understand that they do not work all the time,” said panel chairman Donald Winter, a former Navy secretary and engineering professor at the University of Michigan. BP and all the industry had “a misplaced confidence that the blowout preventer could provide a guarantee if you will, an insurance policy, against a blowout.” Panel member Roger McCarthy, a private engineering consultant who has investigated past oil spills, said blowout preventers are treated like drilling’s circuit-breakers, but there’s no safety group certifying them in the same that Underwriters Laboratories approves key electrical safety devices in homes. Winter said the safety culture issue was apparent in the industry’s attitude toward risks involved in drilling: Instead of acknowledging that there are risks and that industry officials need to make intelligent decisions comparing risk and business decisions, they had an unrealistic attitude that their actions never added risks. Like other studies of the BP spill, the report highlighted several technical failures behind the disaster, with no lone cause. But Winter said the bad decision that was uppermost to him was the decision to abandon the well temporarily, which is normal, even though the cement poured in the well failed important pressure tests. “Once they made the decision to basically disregard the tests,” it set the chain-of-events for all that followed, Winter said. In a statement, BP said it “has acknowledged its role in the accident and has taken concrete steps to further enhance safety and risk management throughout its global operations.” The experts do say drilling safety has improved in the Gulf of Mexico. “We think it is indeed in fact a reasonable process to continue drilling at this point in time,” Winter said at news conference. “But further improvements in safety can in fact be made and should be made.” The independence of the National Academy of Engineering means the report is likely to carry more weight in Congress than some of other investigations. Republican lawmakers have criticized prior reports by a presidential commission saying that the panel was biased. A joint federal investigation also has inherent conflicts of interest because the committee was comprised of those who regulate the offshore drilling industry. Since the disaster, the Obama administration has reorganized the offshore drilling agency and boosted safety regulations. But Congress has yet to pass a single piece of legislation to address safety gaps highlighted by the disaster. House Republicans, meanwhile, have passed bills to jump start offshore drilling. ___ Associated Press writer Dina Cappiello contributed to this report. ___ Online: The National Academy of Engineering report: http://bit.ly/vQK3ai The National Academy of Engineering, which advises the federal government, cited errors that combined to make the well platform explode and oil spill, but noted a problem with the safety culture underlying last year’s 172 million gallon spill at BP’s Macondo well in the Gulf of Mexico. “The industrial management involved with drilling the Macondo well had not adequately understood and coped with the system safety challenges presented by offshore drilling operations,” the 136-page report said. “This raises questions about the industry’s overall safety preparedness, the ability to handle the complexities of the deep-water operations, and industry oversight to approve and monitor well plans and operational practices and personnel competency and training.” That’s a problem because the report called drilling in the Gulf’s deep waters “some of the most complex and most risky ventures conducted by commercial enterprises.” Experts said a deficient safety culture led BP to rely on blowout preventers – a 57-foot-tall, 400-ton system of well control devices – as equipment that just couldn’t fail. The trouble is that even before the April 2010 well blowout, “there were numerous warnings to both industry and regulators about potential failures of existing” blowout preventers, the report said. The report pointed to studies in 2001, 2002, 2004, and a 1999 well blowout and fire off the Louisiana coast. “One needs to understand that they do not work all the time,” said panel chairman Donald Winter, a former Navy secretary and engineering professor at the University of Michigan. BP and all the industry had “a misplaced confidence that the blowout preventer could provide a guarantee if you will, an insurance policy, against a blowout.” Panel member Roger McCarthy, a private engineering consultant who has investigated past oil spills, said blowout preventers are treated like drilling’s circuit-breakers, but there’s no safety group certifying them in the same that Underwriters Laboratories approves key electrical safety devices in homes. Winter said the safety culture issue was apparent in the industry’s attitude toward risks involved in drilling: Instead of acknowledging that there are risks and that industry officials need to make intelligent decisions comparing risk and business decisions, they had an unrealistic attitude that their actions never added risks. Like other studies of the BP spill, the report highlighted several technical failures behind the disaster, with no lone cause. But Winter said the bad decision that was uppermost to him was the decision to abandon the well temporarily, which is normal, even though the cement poured in the well failed important pressure tests. “Once they made the decision to basically disregard the tests,” it set the chain-of-events for all that followed, Winter said. In a statement, BP said it “has acknowledged its role in the accident and has taken concrete steps to further enhance safety and risk management throughout its global operations.” The experts do say drilling safety has improved in the Gulf of Mexico. “We think it is indeed in fact a reasonable process to continue drilling at this point in time,” Winter said at news conference. “But further improvements in safety can in fact be made and should be made.” The independence of the National Academy of Engineering means the report is likely to carry more weight in Congress than some of other investigations. Republican lawmakers have criticized prior reports by a presidential commission saying that the panel was biased. A joint federal investigation also has inherent conflicts of interest because the committee was comprised of those who regulate the offshore drilling industry. Since the disaster, the Obama administration has reorganized the offshore drilling agency and boosted safety regulations. But Congress has yet to pass a single piece of legislation to address safety gaps highlighted by the disaster. House Republicans, meanwhile, have passed bills to jump start offshore drilling. ___ Associated Press writer Dina Cappiello contributed to this report. ___ Online:

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Texas Adopts Rules On Fracking Chemical Disclosure

December 13, 2011

HOUSTON — Texas regulators have adopted rules requiring oil and gas drillers to disclose on a website the chemicals they use in hydraulic fracturing operations. The Texas Railroad Commission adopted rules Tuesday to enforce a law passed by the Legislature earlier this year. Texas has been a pioneer in efforts nationwide to force drillers to be more open about chemical-laced water pumped into the ground to crack dense rock formations to withdraw oil and gas. The process is known as fracking and some environmental groups fear the chemicals could taint water and pollute the air. Texas will require companies to disclose chemicals but not concentrations. Other states, such as Colorado, require disclosure of concentrations.

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Charles Kolb: Santa Clause

December 12, 2011

Steptoe & Johnson LLP is a first-rate national law firm. Some years ago, when I was general counsel at a large national charity, we retained Steptoe to handle a series of complex tax and pension issues that related to the charity’s former management, three members of which went to federal prison for their misdeeds. The members of the firm were outstanding, their advice was sound, and we prevailed in the matter. Last week, a Steptoe & Johnson attorney whom I do not know — but who somehow got my name on a mailing list — sent me a thoughtful electronic holiday message that was to the point: “Season’s Greetings from Steptoe & Johnson”. What caught my attention was the fact that this otherwise cheerful message was followed by two paragraphs of beautifully crafted lawyerlike prose that are known in the legal profession as “boilerplate.” Here’s the first paragraph: “Internal Revenue Service Circular 230 Disclosure: As provided for in Treasury regulations advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purposes of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.” This language prompted me to reread and reassess the holiday message. (After all, even though I no longer bill my time in six-minute increments, I’m a recovering attorney and can’t help myself.) As a strict constructionist, for the most part, I’m pretty sure that the message did not — and was not intended to — constitute advice. The sender was not urging me to take any specific action such as to “Have A Merry Christmas.” Nor was he suggesting how I might enjoy the holiday season. As I construe the text, he was simply tipping his hat in my direction as a friendly acknowledgement of the time of the year. Think “Good morning!” or “Hello!” Besides, on its face, it seemed “intended or written to be” a secular “greeting.” Fortunately, the content did not appear to have anything whatsoever to do with taxes or, heaven forbid, penalties under the Internal Revenue Code. The second paragraph was a bit more complex: “The information contained in this e-mail message is intended only for the use of the individual or entity to which it is addressed. It may contain information that is privileged, confidential, or otherwise protected from disclosure under applicable law. If the reader of this transmission is not the intended recipient or the employee or agent responsible for delivering the transmission to the intended recipient, you are hereby notified that any dissemination, distribution, copying or use of this transmission or its contents is strictly prohibited. If you have received this transmission in error, please notify the e-mail sender at [attorney's name]@steptoe.com. Thank you.” Now I’m beginning to perspire a little around my collar. You see, the text of the Steptoe greeting from which I am preparing this column was actually forwarded to me by one of my work colleagues. The message was intended for him, not for me. But, in my defense, I would note that the information in no way seems “privileged or confidential,” since millions of my fellow Americans will be having similar thoughts and conveying similar sentiments at about the same time. Yet, I must still acknowledge, the message was sent to my colleague and not to me, and I know how a good litigator could make me twist and turn over the futility of such a trivial distinction. (In law school we learned the marvelous phrase “a distinction without a difference.” You feel that the school has earned your tuition dollars when you strut about having mastered that alliterative mouthful.) And yet, I can’t really take such a warning seriously. Since attorneys are known for being extremely cautious and risk averse (that’s why they are better at slicing pies than baking them), I would also expect to have found accompanying warnings about how this message is protected by the work-product and attorney-client privileges. It surely was drafted on firm time and therefore constituted a billable hour for some client — but it might have been pro bono. Who knows? In either event, one can never be too careful in today’s world. That’s what evidence classes in law school are intended to teach you. In the event, however, that the above-referenced distinction might offer an insufficient defense, I intend to show that I actually received the same message from the same Steptoe partner on my own e-mail account — although I seem to have permanently deleted it. This fact suggests to me a mass e-mailing, rather than a personal message. The problem remains, however, that I cannot show that I did not receive the aforementioned message in error. (Before going to law school, I did study philosophy in graduate school, where I learned how difficult it is to prove a counterfactual. I know I did well in graduate school, and I only wish I could recall the grade I got in my evidence class. There might be some relevance here.) The last three years have not been good ones for the legal profession. Hiring is down. Law firms are shrinking, and there is the beginning of a movement — especially among corporate clients — to question the law firm business model. That model in the past assumed that clients would foot the bill as young associates progressed up the learning curve. Today’s clients are becoming more cost-conscious and are demanding pre-negotiated fees for handling specific matters (the equivalent of HMOs in health care versus the fee-for-service model that rewards volume over value and inflates costs). In turn, some firms are now looking to the law schools and asking why the professional training remains wedded to a 19th century model based on analyzing mostly appellate court decisions rather than spending more time on clinical and other programs that prepare future lawyers for what legal practice will be really like. As a society, we are choking on laws and regulations. Philip Howard’s first best-seller (now reissued 17 years later) was The Death of Common Sense: How Law Is Suffocating America , and it made a strong case for reforming a system that is now hurting our country on several levels — in relationships between individual citizens as well as in our overall global competitiveness. I know that this Steptoe & Johnson attorney meant well. At the same time, the reality is that we have become an overly litigious society. Just to be sure — and to cover myself from any future potential liability in having received the holiday message by mistake, and to do as requested by the firm — I intend to reply to this very thoughtful lawyer in a manner which I believe will be both appropriate and effective for all parties concerned: “Many thanks! And the Season’s Best to You!” Charles Kolb is the President of the Committee for Economic Development in Washington, D.C. He served in the first Bush White House from 1990-1992 as Deputy Assistant to the President for Domestic Policy and in the Department of Education as Deputy Undersecretary for Planning, Budget and Evaluation (1988-1990). The views in this article are solely the author’s.

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Speculative Investors Played Larger Role Than Thought In Driving House Bubble

December 12, 2011

LAS VEGAS — A new federal report shows that speculative real estate investors played a larger role than originally thought in driving the housing bubble that led to record foreclosures and sent economies plummeting in Nevada, California, Arizona, Florida and other states. Researchers with the Federal Reserve Bank of New York found that investors who used low-down-payment, subprime credit to purchase multiple residential properties helped inflate home prices and are largely to blame for the recession. The researchers said their findings focused on an “undocumented” dimension of the housing market crisis that had been previously overlooked as officials focused on how to contain the financial crisis, not what caused it. More than a third of all U.S. home mortgages granted in 2006 went to people who already owned at least one house, according to the report. In Arizona, California, Florida and Nevada, where average home prices more than doubled from 2000 to 2006, investors made up nearly half of all mortgage-backed purchases during the housing bubble. Buyers owning three or more properties represented the fastest-growing segment of homeowners during that time. “This may have allowed the bubble to inflate further, which caused millions of owner-occupants to pay more if they wanted to buy a home for their family,” the researchers noted. Investors defaulted in large numbers after home values began to drop in 2006. They accounted for more than 25 percent of seriously delinquent mortgage balances nationwide, and more than a third in Arizona, California, Florida, and Nevada from 2007 to 2009. As a result, millions of homeowners saw their home values decline so that they were worth less than the original purchase price. Foreclosures skyrocketed as people couldn’t or refused to pay their underwater mortgages. Residential construction also languished, putting hundreds of construction workers in the hardest-hit states out of work. The report concludes that lenders and regulators must limit speculative borrowing to avoid future housing busts. For example, in China, government officials are now requiring higher down-payments and mortgage rates on investment homes, according to the report. In Nevada, which has the nation’s highest foreclosure rate, the housing market remains weak, with home prices continuing to fall in the Las Vegas area, where most of the state lives. Home prices were down 7.3 percent in November compared to a year before, according to the Greater Las Vegas Association of Realtors. That means the median price dropped from $134,900 to $125,000 in one year. More than half of all home sales were purchased with cash. Paul Bell, president of the real estate association, said amateur investors were behind the soaring home values seen during the first half of the last decade, but noted those buyers were simply taking advantage of how easy it was to buy homes at the time because of questionable lending practices and government pressure on banks to promote home ownership. “There was blame to go around for everybody,” Bell said. The market has now shifted so that cash investors are helping Las Vegas recover by buying multiple vacant homes, fixing them up and selling them, Bell said. “If we did not have the serious investors in the market … we would have many neighborhoods in a very run-down condition,” he said.

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PHOTOS: Oakland Longshoremen Sent Home During ‘Occupy The Ports’ Protest

December 12, 2011

By TERRY COLLINS, Associated Press OAKLAND, Calif. (AP) — Most longshoremen at the Port of Oakland were sent home Monday after Wall Street demonstrators blocked entrances as part of a coordinated West Coast port blockade effort. Shipping companies agreed with workers’ concerns that the protests were creating unsafe working conditions and released about 150 out of about 200 workers on the morning shift, said Craig Merrilees, spokesman for the International Longshore and Warehouse Union. Workers in unaffected parts of the port remained on the job. Several hundred people began picketing at the Port of Oakland before dawn and blocked at least two entrances. A long line of big rigs sat outside the gates, unable to drive into the port. Police in riot gear monitored the scene as protesters marched in an oval and carried signs with messages such as “Labor and Occupy Unite,” an invitation to the powerful dockworkers union join their push against corporate greed. No major clashes with police or arrests were reported. Longshoremen arriving for the morning shift at the two affected port terminals did not try to enter due to what union officials said were safety concerns. Some longshoremen said they weren’t willing to cross the demonstrators’ picket lines. Protesters cheered and declared victory when they learned about the partial shutdown, then dispersed. Another march on the port is planned later in the day. Port spokesman Isaac Kos-Read said the facility remains open. “There’s been disruptions throughout the morning shift. We’ve done our best to minimize those disruptions,” Kos-Read said. “We’ve kept the port largely operational.” It’s unclear whether the longshoremen will be paid for the missed work. Union officials say longshoremen were not paid after Occupy Oakland protesters blockaded the port Nov. 2. DeAndre Whitten, 48, an Oakland longshoreman for 12 years, said it was his understanding he would be losing about $500 in pay for the day. But he said he supported the protest effort. “I’m excited. It was way overdue. I hope they keep it up,” Whitten said. “I have no problem with it. But my wife wasn’t happy about it.” Leaders of the ILWU, which represents thousands of longshoremen, spoke out in recent weeks against the coordinated effort by Occupy protesters to blockade ports from Anchorage to San Diego. In Southern California, as many as 400 demonstrators gathered in a park then marched in heavy rain to the Port of Long Beach. Before most dispersed about 9 a.m., they targeted a dock facility leased by SSA Marine, a shipping company partially owned by giant investment firm Goldman Sachs. Beating drums and waving flags, dozens of protesters, gathered outside a fenced area at the port, part of a sprawling complex that spans parts of Los Angeles and Long Beach. Police repeatedly warned that they faced arrest if they crossed the fenced area. Officers later started pushing the protesters further back. They spilled into the street, blocking access to the pier and holding up truck traffic. At least one person was taken into custody. Protesters mostly remained in a parking lot so there were no major disruptions to operations, port spokesman John Pope said. In Ventura County, about 150 protesters picketed outside the entrance to the Port of Hueneme. No arrests were reported. In Oakland, the protests halted truck traffic at least two gates. Truck drivers, union and port officials and Oakland politicians have said the protests will hurt the incomes of people who have little connection to Wall Street. “This is joke. What are they protesting?” Christian Vega, 32, who sat in his truck carrying a load of recycled paper from Pittsburg said Monday morning. He said the delay was costing him $600. “It only hurts me and the other drivers. We have jobs and families to support and feed. Most of them don’t,” Vega said. Oakland Mayor Jean Quan also urged protesters to consider the impact on port workers. “Thousands of people work at the Port of Oakland every day. Thousands more in agriculture and other industries also depend on the Port of Oakland for their daily wages,” Quan said. Oakland protester Alex Schmaus, 26, said he believed the attempted shutdown was for the greater good of workers. “We’re trying to make things better for them,” Schmaus said. In San Diego, a few dozen protesters converged on the port as part of the blockade effort. Police spokesman Gary Hassen says four people were arrested, most for failure to disperse or refusal to comply with police orders but one for an unspecified traffic violation. He says there’s been no violence. ___ Associated Press writers Robert Jablon and Christina Hoag in Los Angeles and Marcus Wohlsen in San Francisco contributed to this story.

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It Gets Better: Creepy Investment Manager Strikes Again

December 11, 2011

Remember Mike? That erratic investment manager who authored that crazy email to Lauren after a horrific first date? Well, it gets better! He’s back with another breakup email installment. Now his venom is against Danielle, a woman he met for “45 seconds” after she advertised a rental space for film shoots on Craigslist five years ago. (Note: Danielle’s name has been changed) Written in the same style as the earlier email that landed on Reddit , Danielle explains in an email to The Luxury Spot how she received repeated phone calls and emails from Mike, until she threatened to contact the police. Below is Mike’s most recent “reconciliation” email sent to Danielle a few months ago forwarded to The Luxury Spot . Perhaps this might be a good time for Mike to check himself into the world’s first stalker clinic that just opened in London last week. —-Forwarded Message—- From: [Mike] Date: Sat, Oct 22, 2011 at 11:51 am Subject: Re: Hi Danielle To: Danielle Hi Danielle, I’m disappointed. In my opinion, we should have met. I think we should meet. We could be friends. Even though you treated me badly in the past, I contacted you in May in the spirit of reconciliation, humanity, and generosity. I think meeting would have been the right thing to do. After all, I explicitly mentioned that I wasn’t asking you out on a date (see my email sent in May below). Why did I ask you if you were in a relationship? I asked that because I’m a curious person by nature. The more information I know, the better. The more information I know about a situation, the more I know what to expect (and not expect) from the situation. If I didn’t ask you in the email, I would have asked in person if we had met. FYI, I suggest that you keep in mind that emails sound more impersonal, harsher, and are easier to misinterpret than in-person or phone communication. After all, people can’t see someone’s body language or tone of voice in an email. I’ve considered the possibility that you might have a boyfriend now. But if I were your boyfriend, I wouldn’t have a problem if you had met with me. After all, it wouldn’t be a date and we wouldn’t be doing anything romantic; it would just be platonic. In fact, I once dated a woman and she went out platonically with her ex-boyfriend on a regular basis and I didn’t have a problem with that. Obviously, I practice my own philosophy. People shouldn’t be possessive. When people are in a relationship, they should trust each other. Your boyfriend should trust you with respect to your going out with other people. I wish you would appreciate how much we had in common. We presumably still have a lot in common. (I’m assuming that your current personality is similar to your personality several years ago.) People don’t grow on trees. I can definitely envision us being friends- great friends actually. In my opinion, if we don’t become friends, it would be a shame and tragic in a micro sense. (An example of something tragic in a macro sense would be an earthquake that kills a lot of people.) Loyalty is a quality that I value a great deal. I wish you were loyal to me. Obviously, if a friendship is a two-way street. If you don’t want to be friends, then it’s your fault. It’s not my fault, I reached out this year. Several years have gone by; enough time has passed since 2006. Before you hung up on me the last time we talked, you said you were “sorry.” Well, this is the opportunity for a reconciliation. After sending this email, there isn’t much more for me to say on the issue of friendship between us. I hope you appreciate that I’m very intelligent and have excellent judgment. (By the way, I certainly don’t think I’m perfect.) I displayed excellent judgment even when I was anxious in 2006. I didn’t over-idealize you; I was right about how much we had in common. In addition, I was correct when I stated that you were mistaken when you said that you were not interested in a relationship. I said that you were too young and that, unless something horrible happened to you (e.g., your getting hit by a truck), you would get into a relationship in the future. That seems to have turned out to be the case. In terms of human interaction, there is a spectrum. On one end of the spectrum, people don’t socialize at all. At the other end of the spectrum, people spend the rest of their lives together. There’s a lot of scenarios in between those extremes. It shouldn’t be an all-or-nothing thing. I understand that it is common for two people to not socialize after a romance doesn’t work out (or after a romance doesn’t materialize). However, just because something is common doesn’t necessarily mean it is optimal. For example, obesity is common in many countries (including the U.S.). However, being obese is not optimal. In my opinion, we should meet and be friends. If you want to meet, then let me know and I can call you and we can make plans to meet. If you don’t want to meet, I would appreciate it if you would email me back to let me know that you have read my email. Best, Mike

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BP Cited For 5 More Alleged Violations Related To Blown-Out Well

December 7, 2011

NEW ORLEANS (AP) – Federal regulators have issued a second set of violations against BP for activities related to the blown-out well that led to the deaths of 11 rig workers and the worst offshore oil spill in U.S. history. The Bureau of Safety and Environmental Enforcement issued five violations Wednesday. The violations claim BP failed to conduct an accurate pressure integrity test and failed to suspend drilling operations “when the safe drilling margin identified in the approved application for permit to drill was not maintained.” Federal regulators in October cited BP PLC for seven violations and contractors Transocean Ltd. and Halliburton for four violations apiece. BSEE director James Watson says the second round of violations is based on “additional regulatory violations by BP.” BP has 60 days to appeal.

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NRC Chairman: Nuclear Industry Must Heed Lesson Of Japan

December 7, 2011

WASHINGTON — The nation’s nuclear safety chief said Tuesday he is worried that U.S. nuclear plant operators have become complacent, just nine months after the nuclear disaster in Japan. Gregory Jaczko, chairman of the Nuclear Regulatory Commission, said recent instances of human error and other problems have endangered workers and threatened safety at a handful of the 65 nuclear power plants in the United States. Workers at nuclear plants in Ohio and Nebraska were exposed to higher than expected radiation levels, Jaczko said, while three other plants were shut down for months because of safety concerns – the first time in more than decade that several plants have been shut down at the same time. The Crystal River nuclear plant in Florida and Fort Calhoun in Nebraska remain shut down, while the earthquake-damaged North Anna plant in Virginia reopened last month after being shut down for three months. Jaczko said he was not ready to declare a decline in safety performance at U.S. plants, but said problems were serious enough to indicate a “precursor” to a performance decline. “We need to make sure that (nuclear) licensees continue to do the right thing for safety. That’s the number one thing going forward,” Jaczko said at a meeting with reporters at NRC headquarters. “There are some things we want to keep an eye on to make sure we are not seeing really true declines in performance.” Jaczko said incidents at Cooper Nuclear Station in Nebraska and Perry Nuclear Power Plant in Ohio “almost led to workers getting very, very significant doses” of radiation. Jaczko blamed the incidents on human error and improper work plans. The incidents show the need to focus on more than plant construction and technical solutions that provide increased protection against earthquakes, floods and fires, Jaczko said. “The softer side of the safety business can have a real impact,” he said, referring to plant operations and worker performance. In response to the disaster at Japan’s Fukushima Dai-ichi plant, the NRC approved a number of steps to improve safety at the nation’s nuclear power plants, which have a total of 104 nuclear reactors. The changes are intended to make the plants better prepared for incidents they were not initially designed to handle, such as prolonged power blackouts or damage to multiple reactors at the same time. “This has been a year driven by events in Japan,” Jaczko said. Even so, the year was remarkable for natural disasters at home. The North Anna plant in Virginia shut down when an Aug. 23 earthquake caused peak ground movement about twice the level for which the plant was designed. Other U.S. reactors were threatened by severe flooding in the Midwest and tornado damage in the Southeast. The NRC has conducted a greater number of special inspections this year – 20 so far – than at any point in recent memory, Jaczko said. The inspections were all prompted by site-specific concerns, but could indicate broader problems, Jaczko said. Tony Pietrangelo, senior vice president of the Nuclear Energy Institute, an industry group, called the past year “challenging,” but said the industry is in broad agreement with the NRC’s response to the Japan crisis. Specifically, he said the industry is ready to adopt most of the commission’s short-term reforms, including one to improve response to prolonged power outages, most likely through additional equipment such as portable pumps, battery chargers, hoses and even bulldozers. “We are committed to addressing lessons learned from Fukushima through expeditious actions in concert with our regulator, but not at the expense of our focus on day-to-day safe and reliable plant operations,” Pietrangelo said. Two plants, Fort Calhoun and the Browns Ferry nuclear plant in Alabama, have been placed at the NRC’s highest level of concern and are subject to additional inspections and public meetings, Jaczko said. Both have had repeated safety problems. Two other plants, the Perry plant in Ohio and Susquehanna in Pennsylvania, are at the next-highest level of scrutiny. Ninety-one of the nation’s 104 nuclear reactors were performing at the highest level and operating with the normal level of inspections. On other issues, Jaczko said staffing limitations caused by a flat budget could delay license renewals for existing nuclear plants. “There are resource limitations,” he said. It “may take us a little bit longer to get through the reviews” for license renewals. Jaczko also said he is “very comfortable” with the steps the agency took to close out its review of the Yucca Mountain nuclear waste dump in Nevada. An inspector general’s report released last June said Jaczko intimidated staff members who disagreed with him and withheld information from members of the commission to gain their support. Several high-ranking employees at the independent agency complained that Jaczko delayed and hindered their work on the Yucca project. Jaczko said the actions he took were consistent with the law. “Sometimes when you have difficult decisions, you have challenging conversations. I think in the end the agency did its job,” he said. Republicans have accused Jaczko, a Democrat and former aide to Senate Majority Leader Harry Reid of Nevada, of political bias in directing the NRC to stop work on its review of Yucca Mountain. Jaczko denies any wrongdoing. ___

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A CNBC Mention, Positive Or Negative, Causes Stock Prices To Rise

December 5, 2011

For most companies, just getting mentioned on CNBC is enough to send stock prices rising — and it doesn’t seem to matter if the news is good or bad. A recent study from a Ph.D. candidate at UC Berkeley shows that a company’s stock price is likely to climb if that company is named on the business network CNBC. And it doesn’t have to be in the context of a compliment: Prices show a tendency to rise even if CNBC is reporting something negative about the company. The findings may strengthen the suspicions of anyone who believes that media coverage has a distorting influence on the market. And they may be cause for exasperation for anyone trying to decode the movements of stock prices — a game that has lately become harder to play , with rampant economic uncertainty leading markets to show as much volatility in 2011 as in any year in recent memory. Reza Shabani, the author of the paper, offers a few different theories for why bad press on CNBC might result in a price bounce for a company’s stock. When a company is mentioned on CNBC, Shabani says, it reminds investors that the company exists. Some investors might decide they want to own stock in that company, and thus buy it, while others might decide they no longer want to own stock in that company, and sell it. The key point, according to Shabani, is that any investor can buy stock in the company, while only those who already own the stock can sell it. Therefore, the net effect tends to be a buy-in for the stock and a rise in share prices. Shabani’s paper isn’t the first time CNBC has been linked with significant market movements. Critics have long accused the network of amplifying and accelerating trends in the market . In 2001, the financial columnist James Surowiecki wrote in The New Yorker that CNBC ” distorts the way the market works and helps turn what should be a diverse, independent-thinking crowd of investors into a herd acting upon a single collective thought .” And years later, Daily Show host Jon Stewart charged CNBC with fostering an atmosphere of irresponsible exuberance that hastened the financial crisis. But CNBC isn’t the only media outlet thought to wield an outsize influence on the markets it covers. Indeed, research suggests that any financial journalist can cause investors to hear the news a certain way through something as simple as her choice of metaphors .

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Loopholes, Corporate Tax Dodging Costing Developing Countries Billions: Report

December 5, 2011

It’s no secret that many multinationals have become particularly adept at exploiting tax loopholes. Nor is it a surprising that the U.S. federal deficit is widening as a result. What’s not as publicized, however, is that developing nations are also feeling the heat. Developing countries have lost hundreds of billions of dollars due multinational corporations’ ability to both legally and illegally avoid taxes, and a lack of adequate monitoring by regulators, according to a recent report from the European Network On Debt and Development. Between 2005 and 2007 in sub-Saharan African countries alone, nearly $27 billion was shifted illegally due to trade mispricing — or when companies manipulate trade access borders for profit — the report found. But multinational corporations are also using legal means to pay less in taxes, including setting up subsidiaries and administrative units in countries with near-zero tax rates and allocating the value of what the company creates to the most favorable region. The report mirrors others indicating that many multinational corporations are getting increasingly skilled at avoiding taxes. Nearly 300 of America’s most profitable corporations paid an average tax rate of 18.5 percent between 2008 and 2010, according to an October study from Citizens for Tax Justice. That’s compared to the actual corporate tax rate of 35 percent, nearly double the rate actually paid. The CTJ report also found that 30 highly-profitable companies paid a negative tax rate between 2008 and 2010, even though they took home a combined $160 billion in pre-tax profits. Some corporations are pushing for more ways to make it easier for them to avoid taxes. Companies such as Apple and Google have hired more than 160 lobbyists to encourage Congress to reinstate a repatriation tax holiday, according to Bloomberg. The tax holiday on offshore profits would save the companies more than $1 trillion if passed. But corporations already take advantage of a variety of tax loopholes. Some use the “active financing exception,” which allows companies to avoid paying taxes on overseas profits if the company got those profits by “actively financing” a deal, according to The New York Times . Companies also commonly take advantage of the “accelerated depreciation” rule , which allows them to write off investments faster than they wear off, according to The Washington Post . The companies then subtract the falling value of the investments from their taxable income.

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China Signals Coming Shift In Measuring CO2 Limits

December 2, 2011

DURBAN, South Africa — An influential Chinese analyst says his country may adjust how it measures carbon emission targets as early as 2020, bringing it more in line with Western governments and signaling a possible opening in international climate negotiations. Xu Huaqing, a senior researcher for China’s Energy Research Institute, was quoted Friday in the semiofficial China Daily as saying Beijing could set absolute caps on its carbon emissions – comments later confirmed privately by one of China’s top climate negotiators on the sidelines of the international climate talks in South Africa. It was the first time China has mentioned a timetable toward a hard emissions cap, the article said, and was seen as a significant move by veteran China watchers. Until now, China has spoken of emissions controls purely in terms of energy intensity, or the amount of energy it uses per unit of economic production. It pledged last year to reduce its energy input by 40 to 45 percent from 2005 levels by 2020. China is the world’s largest emitter of heat-trapping greenhouse gas and a main foil of industrial countries in U.N. negotiations on an accord to control global emissions. Virtually every statement, official or from one of China’s approved think tanks like the energy institute, is parsed and dissected by delegates seeking departures from its public positions. Most other countries have set targets for controlling emissions in absolute terms. The European Union, for example, has committed to slash total emissions by 20 percent from 1990 levels by 2020. The change in emissions limits does not mean that China will begin reducing them immediately. As its economy grows, its emissions will continue to rise, probably into the 2030s, Xu was quoted as saying. Jake Schmidt, of the Natural Resources Defense Council, said Xu is considered a conservative, and his words carry more punch than if they came from one of the more liberal analysts of the think tank. “Sometimes China floats ideas from groups like the ERI,” that carry weight even though they are not official policy, Schmidt said. Su Wei, head of the Chinese delegation at the 192-party talks, confirmed Xu’s comments in a private meeting with nongovernment organizations late Thursday. But Su said the shift would be dependent on the state of China’s development at the time, said Fuquiang Yang, also of the U.S.-based Natural Resources Defense Council who once was a researcher for Xu’s prestigious think tank. Elaborating on Xu’s statement, Su told the nonprofit groups that a shift to absolute caps depended on how far China had moved toward a low-carbon economy, whether it had improved its energy efficiency, and whether it can obtain and deploy new technologies. It also wanted to see efficiency reflected in Chinese consumer behavior, said Fuquiang. In a public meeting Friday, Su said China needed to continue its development. Although it would do its part in fighting climate change, he said, China “needs to have a reasonable consumption of energy … Emissions must grow to meet the needs of the people.” The climate talks began Monday and continue next week with the arrival of higher ranking delegations. The U.N. said it expected 12 heads of state, mostly from Africa, and 136 Cabinet ministers to attend the final four days of talks, which are due to end Dec. 9.

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Newt Denies Global Warming

December 1, 2011

Republican presidential candidate Newt Gingrich on Wednesday said it’s unclear whether man-made global warming is real. “I believe we don’t know,” he told Fox News’ Sean Hannity in a Wednesday night interview. In 2008 Gingrich appeared in an ad with then-House Speaker Nancy Pelosi urging action on climate change. “We do agree that our country must take action to address climate change,” he said, sitting on a sofa with Pelosi in front of the U.S. Capitol. The former House speaker recently said that the ad was “the dumbest thing I’ve done in recent years.” Earlier in his career, Gingrich co-sponsored a 1989 bill stating that climate change was “resulting from human activities.” In the Hannity interview, Gingrich also outlined what he would do within the first hours of being president. “We would have about two hours after the inaugural address, we would stop and sign between 100 and 200 executive orders and presidential findings,” he said. “For example, the very first executive order we’ll sign will terminate all of the White House czars as of that moment. So they’ll all be gone. The goal is, by the time President Obama lands in Chicago, we will have dismantled about 40 percent of his government by signing a whole series of extensive orders. He also predicted an instantaneous economic recovery if President Barack Obama is voted out of office: “The economy starts to recover late on election night, when people realize Obama is gone. Literally that night, you’ll see businesses making hiring decisions. You’ll see investors making investment decisions. You’ll see folks going ahead with new startups who were waiting and with bated breath.”

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Don McNay: Why Occupy Needs to Work With the One-and-a-Half Percenters

November 28, 2011

“You don’t know me but you don’t like me” -Dwight Yoakam and Buck Owens Occupy Wall Street and I share a unique kinship. On the same week that Occupy Wall Street became a worldwide social movement, I released a bestselling book, Wealth without Wall Street: A Main Street Guide to Making Money. I didn’t know about them and they didn’t know about me but we have common goals and points of contention. We are both opposed to how Washington bailed out Wall Street in 2008. We both want to reduce the power of Wall Street in Washington and over our daily lives. My book, Wealth Without Wall Street, advocates the Arianna Huffington concept of Moving Your Money from Wall Street banks to Main Street banks. Occupy Wall Street put rocket fuel behind the Move Your Money movement. I’m hearing from throngs of people who did it. Every time someone from OPW gets pepper-sprayed, has a tea gas canister shot in their head, or gets rousted by police directed by New York ‘s Mayor Michael Bloomberg ( a billionaire dilettante), thousands of others quietly move their money in protest. That “silent majority” inspired by the demonstrators will be people who help make the impact everlasting. Wealth Without Wall Street said that economic protests, like those organized by Gandhi and Martin Luther King, are far more effective than protesting. If Americans set up their lives so that we depend less on Wall Street and Washington, both entities will notice. We will be hitting them in the place where it hurts the most: their wallet. There are several ways to hit Wall Street in the wallet. Moving your money and your investments away from Wall Street is the movement that is picking up steam but cutting up your credit cards, where Wall Street makes of its profits, is another one. My idea of looking to start your own business is going slow but the idea of supporting small business has gotten far more attention since Occupy Wall Street started. A lot of attention has been given to the 99 percenters. That label has been a dilemma for me. I’ve qualified for a financial services honor called the Million Dollar Round Table for twenty-five consecutive years. That means that I’m in the top one percent some years and in the top two percent in other years. In other words, you can call me a one and a half percenter. Although my heart and beliefs are with the people getting pepper-sprayed in the parks, my income is closer to the people who are ordering the police to roust them. As a person sitting on Main Street, I can see how the protesters are having an impact. Bank of America backed off its plan to charge five dollars a month for using debit cards after a protest fueled by OPW knocked it down. I see reference after reference to how OPW is changing the debate in Washington. I need OPW to keep doing what they are doing and know it. OPW may or may not know that they need the “one and a half” percenters when they translate their protests into long-term success. I’ve studied social movements academically and see we are at a turning point. Violent crackdowns, like those are taking place in major cities, can either result in dissipating a movement or angering a nation to take its side. People are angry at Wall Street and that is not going away, no matter how many times Bloomberg and like-minded cronies bash on the people who are peacefully protesting. The anger needed to be channeled into economic action. Where the protests should go next is not against the big banks, it should go against the large institutions placing billions in those banks. When alumni and significant givers protest their alma maters placing money in Wall Street banks, which will make a huge impact. The same will hold true if business pension funds are managed by people not affiliated with pension funds. If voters start throwing out politicians who place taxpayer dollars in Wall Street banks, real change and real reform will be possible. I’m like a lot of “One and a half” percenters. Neither of my parents finished high school and I worked to get a number of advanced degrees. I think Wall Street is putting out average Americans, like the people I grew up with. The financial and political systems are extremely unfair and Wall Street has gotten out of control. I’m glad someone is protesting as it has taken from 2008 to get from anger to marching in the streets. On the hand, Americans are a nations of strivers and achievers. Someone, somewhere, we all want to have access to the American dream and have that legacy for our children. Financial success may be improbable but it should never be labeled as impossible. To propose limits and impeding a rise to the top will never be bought into by those who seek upward mobility. Those sleeping in parks and those who make reasonable high incomes look different, dress different and live in different neighborhoods. The line from the song, “you don’t know me but you don’t like me” holds true and needs to be overcome. Once all sides realize they have common goals and can help each other, those goals will be achieved. Don McNay, CLU, ChFC, MSFS, CSSC is the bestselling author of the book Wealth Without Wall Street: McNay, who lives in Richmond Kentucky, an award-winning financial columnist and Huffington Post Contributor. You can learn more about him at www.donmcnay.com He is the Chairman of the Board for the McNay Settlement Group (www.mcnay.com) which provides structured settlement consulting for injury victims, lottery winners, and the families of special needs children. McNay founded Kentucky Guardianship Administrators LLC, which assists attorneys in as conservators and setting up guardianship’s. It is nationally recognized as an administrator of Qualified Settlement (468b) funds. McNay is a Life and Quarter Century Club member of the Million Dollar Round Table .

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Occupy Philly Deadline Passes

November 28, 2011

PHILADELPHIA — A deadline set by the city for Occupy Philadelphia to leave the site where it has camped for some two months passed without scuffles or arrests as police watched nearly 50 demonstrators lock arms and sit at the entrance of Dilworth Plaza. The scene outside City Hall was far different from encampments in other cities where pepper spray, tear gas and police action resulted in the removal of long-situated demonstrators since the movement against economic disparity and greed began with Occupy Wall Street in Manhattan two months ago. Occupy Philadelphia has managed to avoid aggressive confrontations so far, and on Sunday night there was hope the City of Brotherly Love would continue to be largely violence-free. “Right now, we have a peaceful demonstration,” said Philadelphia Police Chief Inspector Joe Sullivan, nearly 45 minutes after the 5 p.m. deadline. Along the steps leading into the plaza, nearly 50 people sat in lines, their arms linked, refusing to leave. A police presence was heavier than usual but no orders to leave had been issued. The mood was upbeat in the hours before the evening deadline, with groups playing music and singing hymns. A few dozen tents remained scattered on the plaza, along with trash, piles of dirty blankets and numerous signs reading, “You can’t evict an idea.” “We can definitely claim a victory,” said Mike Yaroschuk, who was in the process of dismantling his tent. “We’ve opened a lot of minds, hearts and eyes.” Yaroschuk said he was leaving the plaza not because of the city-issued deadline but because of a request by unions whose workers will be involved in the long-planned construction project there in the coming weeks. He said Occupy’s efforts to draw attention to economic inequality and corporate influence on government were more important than its physical location. “This place is not a key battle for me … This is a marathon, not a sprint,” he said. Elsewhere on the East Coast, eight people were arrested in Maine after protesters in the Occupy Augusta encampment in Capitol Park took down their tents and packed their camping gear after being told to get a permit or move their shelters. Protesters pitched tents Oct. 15 as part of the national movement but said Sunday they shouldn’t have to get a permit to exercise their right to assemble. Occupy leaders said a large teepee loaned by the Penobscot Indians and a big all-weather tent would stay up. The Augusta arrests came when police say people jumped a waist-high, wooden fence on the governor’s mansion lawn and some climbed a portico to the building and unfurled an Occupy banner. As many as 50 protesters, some holding signs and beating a drum, gathered near the Blaine House gates. In Los Angeles, another deadline was getting closer, too, for hundreds of demonstrators to abandon their weeks-old Occupy Los Angeles protest. Although city officials have told protesters they must leave and take their nearly 500 tents with them by 12:01 a.m. Monday, just a handful were seen packing up Sunday. Instead, some passed out fliers containing the city seal and the words: “By order of Mayor Antonio Villaraigosa, this notice terminates your tenancy and requires you to attend the Occupy L.A. Eviction Block Party,” which the fliers’ said was scheduled for 12:01 a.m. Others attended teach-ins on resistance tactics, including how to stay safe should police begin firing rubber bullets or breaking out tear gas canisters and pepper spray. Back in Philadelphia, Steve Venus was fortifying the area around his tent with abandoned wood pallets left over from those who had already packed up. He said the $50 million construction project, including a planned ice skating rink, was not a good enough reason for Occupy Philadelphia to leave the plaza. Venus, 22, said that by enforcing the deadline, the city was essentially telling Occupy supporters “your issues are not important. The only issue that’s important is the ice skating rink.” On Friday, Mayor Michael Nutter expressed support for the movement’s ideals but said protesters must make room for the long-planned project, which they were told of when they set up camp Oct. 6. Nutter was out of town Sunday, but his spokesman reiterated that “people are under orders to move.” “We’re monitoring the situation and we expect people to leave immediately,” spokesman Mark McDonald said. Members of the governing body of Occupy Philadelphia, the general assembly, previously approved a move to a plaza across the street after union officials stressed the hundreds of jobs being created by the Dilworth reconstruction. But that vote mistakenly assumed protesters would be able to pitch tents there. Graffiti, lack of sanitation and fire hazards, including smoking in tents, were among the city’s chief concerns at Dilworth, which had about 350 tents at the height of the movement. The encampment also attracted significant numbers of homeless, although the plaza had long been frequented by that population even before the camp was established. The city did issue a permit to an Occupy Philadelphia faction called Reasonable Solutions that planned to continue demonstrating across the street beginning Monday. However, activities are limited to between 9 a.m. and 7 p.m., and no overnight camping is allowed. ___ Associated Press Writers Andrew Dalton in Los Angeles and Glenn Adams in Augusta, Maine, contributed to this story.

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Robert Kuttner: Europe on the Brink

November 28, 2011

Europe is now on the very edge of an economic abyss. And Germany is finding that it cannot survive as a smug island of fiscally conservative prosperity while the rest of Europe goes down the tubes. It is anybody’s guess whether Europe’s leaders will shift course in time. If they fail, it won’t be pretty. The fact that Germany’s fate is now more closely linked to that of its neighbors actually offers a ray of hope. Until last week, Germany had been the safe haven. As speculators pulled money out of other countries, in a bondholders’ equivalent of a run on the bank, German government debt was oversubscribed, causing interest rates on German bunds (government bonds) to fall below 2 percent. The spread between German rates and the rates that “weaker” countries had to pay to sell their bonds was treated as a precise barometer of market confidence in a given nation’s debt. For the Germans, this was a huge windfall. My friend Sony Kapoor, who directs the progressive think tank Re-Define in Brussels, calculated that Germany’s cheaper borrowing costs due to the panicky bond-market flight from nations like Greece, Italy, Spain, Portugal and Ireland saved the Germans some $26.7 billion in interests costs between 2009 and 2011, and another $20 billion in low-interest bonds already locked in for the future. (It is no accident that the word Schadenfreude — translated as joy at another’s misfortune — is a uniquely German coinage.) But then on Thursday, as Americans were taking a day off for Thanksgiving, the unthinkable happened. Germany had trouble selling its bonds. The bond market, in its panic, was fleeing even the safest haven. Europe is now approaching a Lehman Brothers moment, where nobody trusts anybody else’s promise to repay a debt. Not to be joyful at another’s misfortune — the crisis will keep cycling back to haunt the United States — but the fact that contagion has now reached German shores is more than poetic justice. The European Central Bank, with its concern for fiscal discipline and price stability über alles , operates with a deeply Teutonic soul. It is the tribal successor to the German Bundesbank, the most risk-averse and inflation-phobic of all central banks. This view, however, is no virtue when the greater peril is general panic and deep deflation. In 1873, the British financial journalist Walter Bagehot pointed out that the Bank of England kept the banking system functioning by serving as a lender of last resort in times of crisis. This is what the European Central Bank refuses to do. Or, to be more precise, the ECB, despite its qualms, is now shoveling money at commercial banks but will not support national bond markets. That tells you something about who really runs the show — bankers. This double standard also reflects German policy preferences. Better to teach a lesson to nations in fiscal distress, even if the consequence is to drag down the entire European economy. But now that turkey of a policy has come home to roost. Whatever its other failings, and they are legion, our own Federal Reserve under Ben Bernanke has not been shy about buying the securities of both shaky banks and the U.S. Treasury. Had the Fed failed to do so, our economy would be even further under water. Bernanke’s failing has been in the regulatory side. He is still far too trusting of markets. The European Summit of Oct. 26, with its offer of partial debt relief for Greece and a new pot of borrowed funds for beleaguered European banks, might as well have happened in the 19th century. The crisis has now moved to a whole other phase, where the remedies that looked adequate even a month ago (and were not) are not impressing panicky money markets. Many mainstream critics argue that the European Central Bank should stop dithering and support sovereign bond markets. Others go further and call for a common European fiscal policy and common European sovereign bonds. Still others contend that the Euro was doomed from the start; putting Greece and Italy in the same currency with Germany and the Netherlands was never a good idea, because this denies countries with weak economies of temporary crises the option of devaluing. All of these criticisms have some merit, yet all miss the deeper point. Once we get through the management of the immediate panic — which is not yet assured — we need to treat the deeper disease. This crisis occurred because bankers and shadow bankers (such as the hedge funds that are betting against Europe’s bonds) have too much power . Bankers had too much power when they invented the highly leveraged toxic securities that caused the collapse, and now they have too much power over the fate of entire nations as political leaders seek to clean up the mess that the bankers made. The ability of governments to finance their debts should not be dependent on the caprices of private speculators. Does that sound crazy? It was national policy in the U.S. in the 1940s, when the Federal Reserve pegged the rate on government bonds, and it was international policy in the 1950s and 1960s during the Bretton Woods era — a period of high growth and broadening prosperity. There is no shortage of technical ways out of this crisis. But the political precondition to all of them is to dethrone the rule of the bankers. Robert Kuttner is co-editor of The American Prospect and a senior fellow at Demos. His latest book is A Presidency in Peril .

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Shoppers Visit Stores In Record Numbers

November 27, 2011

More Americans hunted for bargains over the weekend than ever before as retailers lured them online and into stores with big discounts and an earlier-than-usual start to the holiday shopping season. A record 226 million shoppers visited stores and websites during the four-day holiday weekend starting on Thanksgiving Day, up from 212 million last year, according to early estimates by The National Retail Federation released on Sunday. Americans spent more, too: The average holiday shopper spent $398.62 over the weekend, up from $365.34 a year ago. Art and Anna Destrada from Port Chester, N. Y., were among the holiday shoppers. They started shopping on Thanksgiving evening at a Walmart store, went to various malls in New Jersey on Friday, and got some deals at Macy’s on Saturday. They spent a total of $2,000 on gifts for themselves and others, including a Wii videogame console, clothing and jewelry. “We’ve saved for Christmas and put away money all year,” says Anna Destrada, 49. “We stayed within our means so we can make a few splurges.” The results for the first holiday shopping weekend show that retailers’ efforts to lure shoppers during the weak economy are working. Some like Wal-Mart Stores Inc. and J.C. Penney have been making a stronger push online to better compete with the likes of rival Amazon.com. And major chains like Macy’s, Target, Best Buy extended the traditional start to the shopping season by opening their doors at midnight on Thanksgiving evening instead of the pre-dawn Friday hours of years past. But the question remains whether retailers’ will be able to hold shoppers’ attention throughout the remainder of the season, which can account for 25 to 40 percent of a merchant’s annual revenue. After all, Americans are still very driven by deep discounting and they’re more conscious of their spending budgets. Overall, holiday spending is expected to grow by a modest 2.8 percent to about $466 billion, according to the NRF. A fuller picture on spending will come Thursday when major retailers report their November sales figures. But for now, experts agree that retailers will likely have to continue to discount to get shoppers to spend. “The big question is: How do you close the season?” says Hana Ben-Shabat, a partner at A. T. Kearney’s retail practice. “This is a very promotional driven shopper.” Indeed, the earlier hours – which meant earlier door-buster deals – on Black Friday seemed to be what drew many shoppers in over the weekend, particularly the younger crowd. According to the National Retail Federation, 24 percent of Black Friday shoppers were at stores at midnight. That’s up from 9.5 percent the year before when only a few stores were open during that time. Of those shopping at midnight on Black Friday, 37 percent were in the 18-to-34 age group. “Black Friday has evolved from an early morning shopping activity to a late night entertainment,” says Ellen Davis, spokeswoman at The National Retail Federation. “A lot of people stayed up until 1 a.m. or 2 a.m. to go shopping, and then went to bed.” The remainder of the day went well, too. Mall of America, the nation’s largest mall, broke its Black Friday record with about 210,000 shoppers. And Taubman Centers, which manages or leases 26 shopping centers in 13 states, says sales were up anywhere from mid- to low double digits on Friday, compared with a year ago. Overall, Black Friday sales were $11.4 billion, up 7 percent, or nearly $1 billion from the same day last year, according to a report by ShopperTrak, which gathers data from 25,000 outlets across the country. It was the largest amount ever spent on that day and the biggest year-over-year increase since 2007. Additionally, customer counts climbed 5.1 percent that day compared with a year ago. Online shopping on Black Friday was especially strong. Research firm comScore reported on Sunday that online spending jumped 26 percent on Black Friday to $816 million, compared with $648 million on the same day a year ago. Some experts worry the strong start will cannibalize sales during the remainder of the season. Indeed, many people who headed to the malls after Black Friday weren’t spending. At the Crabtree Valley Mall in Raleigh, N.C., it was busy on Saturday, but many shoppers did not have bags. Likewise, at Pioneer Place mall in Portland, Ore., on Saturday, a number of shoppers were doing more window-shopping for the best deals than actual buying. David Van Veen, 25, for one, says he was looking for deals on work clothes. But he says he’ll likely wait to get gifts and other holiday items – perhaps when the deals are better – later in the season. “I’ll wait until Dec. 23 to start shopping I think,” he says. ____ Retailer Writers Christina Rexrode in Raleigh, N.C., and Sarah Skidmore in Portland, Ore., contributed to this report.

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Charles Rothstein: American Midwest Deserves Another Look

November 27, 2011

I recently attended a great conference for venture investors and managers where the main topic seemed to be the importance of investing in capital-starved or emerging markets, thereby garnering favorable terms amid low competition for the best deals. Around the room, West Coast managers nodded their heads in agreement… only to return to their Sand Hill Road offices and continue investing in the most competitive venture capital market in the country. And the limited partners in attendance? Many admitted they agreed with the premise of deal-sourcing in emerging markets but in practice keep their money in the traditional coastal players they’ve always backed. So is the idea of investing in capital-poor markets actionable? Many international emerging markets require investors to hedge currency risks, political landmines and the challenges of opening up Western markets once the product or service takes off. Fortunately, there’s a region with many characteristics of an emerging market but that trades in the U.S. dollar and is openly accessible to the world’s largest consumer markets — the United States’ own Midwest. I run a venture capital firm in Michigan, a state that has the resources, heritage and fundamentals to prosper in the new economy but is currently limited by its lack of capital. According to CNBC’s 2011 “America’s Top States for Business” Rankings, Michigan is among the top ten most innovative and technologically advanced states yet ranks a lowly 31st in “access to capital,” a startling disparity compared to other top technology and innovation states: Our Midwest neighbor states are in similar but less drastic predicaments, making the entire region prime for venture investors and limited partners looking for opportunity. On average, Midwest venture-capital investments yield a premium over investments in the top venture markets; Midwest companies are more capital efficient as they do not need as much capital to grow as companies operating in other venture markets: The Midwest has the infrastructure and workforce to compete in new economy sectors, such as clean technology, information technology, life sciences/health care and advanced manufacturing. Now we need venture limited partners and managers to recognize the opportunity. Certainly a few firms are already profiting: the biggest Internet IPOs of the past three months will both be Midwest-based — Angie’s List of Indianapolis and Groupon of Chicago. Will the rest of my friends from the coasts, both limited partners and venture investors, do more than just nod heads at a conference when thinking about the Midwest as an “emerging market” and join us here?

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Brazil Says Chevron Oil Slick Has Shrunk

November 22, 2011

SAO PAULO — Brazil says the size of an oil slick at a well operated by Chevron Corp. off the coast of Rio de Janeiro state is more than 80 percent smaller than it was four days ago. Brazil’s National Petroleum Agency says in a statement posted Tuesday on its website that the oil slick on the water’s surface now covers 0.78 square miles (two square kilometers) compared to the 4.63 square miles (12 square kilometers) registered on Nov. 18. The agency also says the oil slick continues moving away from Brazil’s coastline. Rio de Janeiro state’s Environment Secretary Carlos Minc still warns the oil could reach beaches west of the city of Rio that are popular with tourists. The petroleum agency has said that up to 3,000 barrels of oil have spilled into the Atlantic Ocean. (This version CORRECTS APNewsNow. Corrects location of beaches in paragraph 5. LPA please translate)

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Deborah Frett: What You Need To Know About Gen Y Women & The Workplace

November 22, 2011

The key to recruiting, supporting and retaining Gen Y workers may require unlearning what we “know” about this cohort and relearning the importance of flexibility, equality and inclusivity for business success. Last week, Business and Professional Women’s Foundation (BPW) Foundation released findings from our national survey on Gen Y women’s workplace expectations and experiences. The responses from more than 660 women across the United States identified important challenges related to gender discrimination, work-life balance, and intergenerational workplace dynamics that employers cannot afford to ignore. Here are our top four reality checks on popular literature. 1. Popular Literature Says : Gen Y women do not believe gender discrimination is a problem in today’s workplace. BPW Survey Says : Where do those women live and work? Over 75 percent of Gen Y women in our survey identified gender discrimination as a moderate or severe problem in today’s workplace. And almost 50 percent of Gen Y women had observed or experienced gender discrimination in the workplace. There is a difference between what Gen Y women believe about gender — that equality should be the norm — and how organizations and colleagues practice gender. Gen Y women experience stereotyping, unequal compensation, inequality of opportunities, different standards and sexual harassment. The discrimination and inequalities young working women face are rooted in the ways in which organizations, supervisors and colleagues understand what it means to be a man or a woman. Employers should identify and address the sources of discrimination and inequality in their organizations — perceptions, policies and practices. 2. Popular Literature Says: Employers should design programs to meet Gen Y women’s work-life balance demands. BPW Survey Says: Programming alone won’t address Gen Y women’s demands. They are looking for a holistic approach to work-life balance that will require employers to rethink the “ideal worker.” The ideal worker is often an employee who demonstrates devotion and commitment through time — being available any time and for however long an employer needs. Work is important to Gen Y women but is not the only sphere of life. Gen Y women also identified family, friends, hobbies, exercise and volunteering as important aspects of life. These women are not interested in mistaking their jobs for their life. Tackling work-life issues requires a critical examination of the “ideal worker” and how employers measure and evaluate an employee’s commitment. 3. Popular Literature Says: Identify Gen Y values and then design workplace programs around their values. BPW Survey Says: Good luck with that. Gen Y women hold disparate values. Top career values varied by occupation, type of employer and the presence of children. For example, women in management valued achievement most while women in administrative capacities valued creativity and women in sales/marketing valued compensation most. Our survey results contain two messages for employers. First, it’s really difficult to determine key work values for Gen Y women because values are mediated by social difference (e.g. gender, race, occupation and education). Second, you don’t need to determine values in order to offer the benefits Gen Y women need and create enabling environments for success. Gen Y women’s workplace values did not impact their perspectives on employer benefits. Overall, Gen Y women want their basic needs met. Two of the three most important benefits reported were: healthcare insurance and retirement plans. And, regardless of what Gen Y women expect to achieve through their work, five features enable them to do their best at work: understanding goals and expectations; having open communication channels; receiving encouragement from co-workers and supervisors; having their voice heard and understanding their role and responsibilities. 4. Popular Literature Says: If you want to improve inter-generational workplace dynamics, focus on increasing awareness of generational differences. BPW Foundation Says: Yes, but that’s not all. BPW Foundation asked about generational conflict, but Gen Y women identified age bias as a more pressing workplace issue. Survey results indicate that Gen Y women experience a double jeopardy — gender and age. Gen Y women who had experienced gender discrimination were more likely to report generational conflict or discrimination than those who had not. Fifty-one percent of Gen Y women who observed or experienced gender discrimination also reported generational discrimination. The types of generational or age discrimination reported included being perceived as incompetent or inexperienced because of age; name calling such as “kid” and girl”; being passed over for promotions because of age and being held to different standards because of age. Identifying and addressing age and gender discrimination may be an important strategy for improving inter-generational workplace dynamics. The full report, From Gen Y Women to Employers: What They Want In The Workplace And Why It Matters is available for download at Business and Professional Women’s Foundation.

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Brazil Oil Spill: Official Sees Big Fine In Chevron’s Future

November 21, 2011

SAO PAULO — Brazil is expected to fine Chevron nearly $28 million for an ongoing offshore oil spill, Rio de Janeiro state’s environment secretary said Monday. Carlos Minc said the national government will also ask Chevron to pay for damages caused by the Atlantic spill. “We believe the accident could’ve been avoided. There was an environmental crime,” Minc told Globo TV and other Brazilian media. “They hid information and their emergency team took almost 10 days to start acting.” Chevron Corp. officials have accepted responsibility for the spill but reject accusations they did not notify local authorities quickly enough or properly manage cleanup operations. Minc said he considers the fine lenient, but it’s the maximum allowed under current Brazilian law. The fine has not been officially announced because the government was still waiting for a final report by local investigators. Minc said officials would also analyze imposing further fines on Chevron based on state laws in Rio de Janeiro, and that Brazil’s National Petroleum Agency could even consider banning the company from operating in Brazil for a limited time. “There was negligence,” Minc said. “Rio will not allow any kind of environmental impunity.” He said Chevron, based in San Ramon, California, will be expected to pay about $5.6 million in reparation for the damage to the environment. “We are still calculating the costs,” he said. “Part of that money we want to use to increase the monitoring of our ocean.” Brazilian President Dilma Rousseff was expected to meet with the national environmental minister and its mines and energy minister later Monday to discuss the oil spill and determine the government’s actions. The National Petroleum Agency said more than 110,000 gallons (416,300 liters) of crude oil may have reached the ocean floor since the lead began on Nov 7. George Buck, chief operating officer for Chevron’s Brazilian division, said Sunday the spill occurred because Chevron underestimated the pressure in an underwater reservoir. Chevron was drilling an appraisal well about 230 miles (370 kilometers) off the northeastern coast of Rio de Janeiro when the leak started as crude rushed upward and eventually escape into the surrounding seabed. The oil has leaked through at least seven narrow fissures, all within 160 feet (50 meters) of the well head on the ocean floor. Eighteen boats work on a rotating basis on the slick, with a varying number of vessels working simultaneously, Buck said. The leak is a test for Brazil as huge offshore oil finds have been announced recently, with estimates they could hold at least 50 billion barrels of oil. Brazil has had bigger oil spills. In 2000, crude spewed from a broken pipeline at the Reduc refinery in Rio de Janeiro’s scenic Guanabara Bay, dumping at least 344,400 gallons (1.3 million liters) into the water. Just a few months later, more than 1 million gallons (3.8 million liters) of crude burst from a pipeline operated by state-controlled oil company Petrobras into a river in southern Brazil. Brazil’s worst oil disaster was in 1975, when an oil tanker from Iraq dumped more than 8 million gallons of crude into the bay and caused Rio’s famous beaches to be closed for nearly three weeks. ___

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