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FRACKING: Corruption a Part of Pennsylvania's Heritage

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In addition to forbidding physicians and health care professionals from disclosing what the industry believes are "trade secrets" in what it uses in fracking that may cause air and water pollution, there are other industry-favorable provisions. The new law guts local governments' rights of zoning and long-term planning, pre-empts local health and environmental regulation, forbids municipalities to appeal state decisions about well permits, and provides subsidies to the natural gas industry and payments for out-of-state workers to get housing but provides for no incentives or tax credits to companies to hire Pennsylvania workers. It also requires companies to provide fresh water, which can be bottled water, to areas in which they contaminate the water supply, but doesn't require the companies to clean up the pollution or even to track transportation and deposit of contaminated wastewater. The law allows companies to place wells 300 feet from houses, streams and wetlands. The law also allows compressor stations to be placed 750 feet from houses, and gives natural gas companies authority to operate these stations continuously at up to 60 decibels , the equivalent of continuous conversation in restaurants. The noise level and constant artificial lighting has adverse effects upon wildlife. As a result of all the concessions, the natural gas industry is given special considerations not given any other business or industry in Pennsylvania.

Each well is expected to generate about $16 million during its lifetime, which can be as few as ten years, according to the Pennsylvania Budget and Policy Center (PBPC). The effective tax and impact fee is about 2 percent. Corbett had originally wanted no tax or impact fees placed upon natural gas drilling; as public discontent increased, he suggested a 1 percent tax, which was in the original House bill. In contrast, other states that allow natural gas fracking have tax rates as high as 7.5 percent of market value (Texas) and 25--50 percent of net income (Alaska). The Pennsylvania rate can vary, based upon the price of natural gas and inflation, but will still be among the five lowest of the 32 states that allow natural gas drilling. Over the lifetime of a well, Pennsylvania will collect about $190,000--$350,000, while West Virginia will collect about $993,700, Texas will collect about $878,500, and Arkansas will collect about $555,700, according to PBPC data and analyses .

State Sen. Daylin Leach, a Democrat from suburban Philadelphia, says he opposed the bill because, "At a time when we are closing our schools and eliminating vital human services, to leave billions on the table as a gift to industry that is already going to be making billions is obscene." State Rep. Mark Cohen, a Democrat from Philadelphia, like most of the Democrats in the General Assembly, agrees. The legislation, he says, "produces far too little revenue for local communities, gives the local communities local taxing power which most of them do not want, because it pits one community against the other, and gives no revenue at all to other areas of the state."

The new law is generally believed to be "payback" by Corbett and the Republican legislators for campaign contributions. The industry contributed about $7.2 million to Pennsylvania candidates and their PACs between 2000 and the end of 2010, including $860,825 to the Republican party and $129,100 to the Democratic party, according to data compiled by Common Cause . In addition, the natural gas industry contributed about $1.6 million to Corbett's political campaigns during the past 10 years, about $1.1 million of that for his campaign for governor, according to Common Cause. Rep. Brian L. Ellis (R-Butler County), sponsor of the House bill, received $23,300. Sen. Joseph B. Scarnati (R- Warren, Pa.), the senate president pro-tempore who sponsored the companion Senate bill ( SB 1100 ), received $293,334. Of the 20 Pennsylvania legislators who received the most money from the industry since 2001, 16 are Republicans, according to Common Cause.

Rep. H. William DeWeese (D-Waynesburg, Pa.), received $58,750, the most of the four Democrats. DeWeese, first elected in 1976, had been Speaker of the House and Democratic leader.

It's possible that the significant campaign contributions didn't influence Pennsylvania's politicians to rush to embrace the natural gas industry and its controversial use of hydraulic fracking. It's possible that these politicians had always believed in fracking, and the natural gas industry was merely contributing to the campaigns of those who believed as they do. However, with the heavy amount of money spent by the natural gas lobby and, apparently, willingly accepted by certain politicians, there is no way to know how they might have voted had no money or lobbying occurred.

Tom Corbett's first major political appointment after his election in November 2010 was to name C. Alan Walker, an energy company executive, to head the Department of Community and Economic Development. The Pennsylvania Progressive identified Walker as "an ardent anti-environmentalist and someone who hates regulation of his industry." A ProPublica investigation revealed that Walker had given $184,000 to Corbett's political campaign.

Shortly after taking office, Corbett repealed environmental assessments of gas wells in state parks. The result could be as many as 2,200 well pads on almost 90 percent of all public lands, according to Nature Conservancy of Pennsylvania .

Corbett's public announcements in March 2011, two months after his inauguration, established the direction for gas drilling in Pennsylvania.

In his first budget address, Corbett boldly declared he wanted to "make Pennsylvania the hub of this [drilling] boom. Just as the oil companies decided to headquarter in one of a dozen states with oil, let's make Pennsylvania the Texas of the natural gas boom. I'm determined that Pennsylvania not lose this moment." Lt. Gov. Jim Cawley would later boast , "The Marcellus [Shale] is revitalizing our main streets in downtowns."

Within the budget bill, Corbett authorized Walker to "expedite any permit or action pending in any agency where the creation of jobs may be impacted." This unprecedented reach apparently applied to all energy industries. That same month, Corbett created an Advisory Commission , loaded with persons from business and industry. Not one member was from the health professions; of the seven state agencies represented, not one member was from the Department of Health.  

Between 2007 and the end of 2010, the Pennsylvania Department of Environmental Protection (DEP) issued 1,435 violations to natural gas companies; 952 of those violations related to potential harm to the environment. In March, Michael Krancer, the new DEP secretary, also a political appointee, took personal control over his department's issuance of any violations. By Krancer's decree, every inspector could no longer cite any well owner in the Marcellus Shale development without first getting the approval of Krancer and his executive deputy secretary.

"It's an extraordinary directive [that] represents a break from how business has been done" and politicizes the process, John Hanger told ProPublica . Hanger, DEP secretary under the Ed Rendell administration, said the new rules "will cause the public to lose confidence entirely in the inspection process." He told the Scranton Times-Tribune the new policy was the equivalent of every trooper having to get permission from the state police commissioner before issuing a traffic citation.   Because the new policy is so unusual and broad "it's impossible for something like this to be issued without the direction and knowledge of the governor's office," said Hanger. Corbett denied he was responsible for the decision. Five weeks after the Krancer decision was leaked to the media, and following a strong negative response from the public, environmental groups, and the state's media, the DEP rescinded the policy--which Krancer claimed was only a three-month "pilot program."

"When state agencies say they will "regulate' or "monitor' hydraulic fracturing to reduce known threats, we should not accept this as a guarantee of any kind," says Eileen Fay, an animal rights/environmental writer. Fay argues that because of legislative corruption, it is a responsibility of citizens to protect their own health and environment by "putting pressure on our legislators."

In February 2012, Corbett proudly signed Act 13 , a merger of the House and Senate bills.

HB 1950 had initially included a provision to provide up to $2 million a year in funding to the Department of Health for "collecting and disseminating information, preparing and conducting   health care provider outreach and education and investigating health related complaints and other uses associated with unconventional natural gas production activity." That provision, strongly supported by numerous public health and environmental groups, was deleted in the final bill.

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www.walterbrasch.com

Walter Brasch is an award-winning journalist and professor of journalism emeritus. His current books are Before the First Snow: Stories from the Revolution , America's Unpatriotic Acts: The Federal Government's Violation of Constitutional (more...)
 

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And these republicans are supposed to be the Chris... by Vicki Friedman on Thursday, Mar 22, 2012 at 8:32:05 PM
The gas companies will promise local municipalitie... by Kevin Kakareka on Saturday, Mar 24, 2012 at 4:37:40 PM
As a former oil industry researcher, I was aware t... by Dr. Hans J. Kugler, PhD on Sunday, Apr 1, 2012 at 7:28:40 PM