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5.26.2010

Sex, Drugs, Money, Power & Crude: The Corruption that is the Minerals Management Service

My original intent was to try and detail the corrupt mess surrounding the government agency that’s supposed to regulate the oil and gas industry here in America, the Minerals Management Service, or MMS. But then I started doing a little research & realized I didn’t want to spend the next year of my life writing about it. There certainly are enough sickening stories of drugs, bribery, sex, and price fixing to fill several books, but I’ll try to get right to the big points. Especially the ones revealed today, 36 days after BP unleashed an oil geyser a mile under the Gulf of Mexico.

Here’s a quick synopsis to get you up to speed.

The MMS is supposed to regulate oil and gas production in this country. It’s housed inside the Department of the Interior and is responsible for collecting oil and gas royalties. It’s actually one of he federal government’s largest sources of revenue behind taxes, collecting more than $10 billion annually.

It’s also supposed to be inspecting the thousands of off-shore oil rigs sitting off America’s coastline. But it seems the regulators are a little too close with the oil and gas industry. Officials from the MMS were literally found in bed with representatives of oil and gas companies and each other. The program manager at the Royalty In Kind (RIK) branch of the MMS is also accused of sleeping with 2 subordinates, one of whom claims she supplied him with cocaine at the office. Dozens of employees accepted gifts from oil companies, including golf and ski trips and sports and concert tickets.

Former MMS associate Director, Lucy Q. Dennett resigned in 2008 while under investigation. According to The New York Times (Sept. 10, 2008) ...

... investigators concluded that Ms. Denett worked with two aides to steer a lucrative consulting contract to one of the aides after he retired, violating competitive procurement rules.

That former aide, Jimmy W. Mayberry, was fined and sentenced to probation for violating federal conflict of interest laws.

And that’s not all. The MMS also wasted millions in taxpayer dollars. How you ask? More from The New York Times.

On one occasion, the report said, the royalty-in-kind program allowed a Chevron representative who had won a bid to purchase some of the government’s oil to pay taxpayers a lower amount than his winning offer because he said he had made a mistake in his calculations... [T]he program had frequently allowed companies that purchased the oil and gas to revise their bids downward after they won contracts. It documented 118 such occasions that cost taxpayers about $4.4 million in all.

And now we got more disturbing news.

At least one MMS oil rig inspector admitted to using crystal meth while working for the agency. Others are accused of skipping inspections altogether. Another was allowed to perform inspections after engaging in employment negotiations with an oil company.

Even worse they let the oil companies ghost write the inspection reports themselves.

A new report by the Interior Department's Inspector General found that MMS officials "allowed industry officials several years ago to fill in their own inspection reports in pencil -- and then turned them over to the regulators, who traced over them in pen before submitting the reports to the agency...

Most of these shenanigans were happening during the Bush Administration. But some happened on President Obama’s watch. He appointed the current Secretary of the Interior, a man named Ken Salazar, in 2009. Salazer is a former Senator from Colorado and has faced his share of criticism from environmental groups. When he first took the post, Secretary Salazer promised to clean up the MMS. Apparently he didn’t. Now he’s facing calls for his resignation over the BP disaster playing out live in the Gulf of Mexico.

If this isn’t a wake up call for tighter oversight and regulation of corporations and government agencies then I don’t know what is.

We nearly saw a complete economic collapse as a result of the free-for-all in the financial markets and on wall street, now we see the worst environmental disaster in American history. The American people are left holding the bag for both because lawmakers don’t seem to want to do anything to stop the madness. They watered down financial reform without addressing the issue of banks being too big to fail, now they can’t even agree to raise the liability cap on what oil companies are responsible for paying in the event of a spill. The current cap is set at $75 million. That’s less than a day’s profit for an oil company like BP. That’s like charging an arsonist 2 bucks for burning down a building.

Republicans are once again siding with big oil on the issue. Sen. Lisa Murkowski (R-AK) was the first to block a vote on raising the cap, then Tuesday, Sen. Robert Menendez (D-NJ) introduced a bill that would remove the cap altogether. Predictably the GOP blocked a vote again. This time it was Sen. James Inhofe (R-OK), who doesn’t seem to have much love for the planet. Sen. Inhofe famously called global warming the greatest hoax in American history, and apparently he’s okay with letting oil companies dump millions of gallons of crude into the ocean before paying a meager $75 million fine and simply walking away.

Senators Murkowski and Inhofe say removing the cap would hurt small oil companies and discourage them from drilling off-shore. They seem to forget about the billions of dollars in tourism revenue that coastal states rely on. Or the thousands of fisherman who are watching their livelihoods being destroyed one gushing barrel of oil at a time. Gotta look out for the mom and pop oil companies. Like there even is such a thing.

BP will try its latest attempt to cap the gushing well today (Wed. May 26, 2010) but I won’t hold my breath that this try will be successful. I fully expect that the geyser won’t be stopped until BP finishes drilling a relief well. The earliest that will be done is the middle of August.

This disaster in the Gulf parallels what’s happening in Washington right now. The country is hemorrhaging right before our eyes but Congress won’t do anything about it. Republicans refuse to do anything other than fear monger and obstruct, but Democrats are in the pockets of big corporations too. They write watered down legislation that doesn’t really solve the big problems.

The country is more divided than ever these days, which is sad because I don’t think average Americans are really that far apart on the issues. None of us want to see the country spend itself into irreversible debt and I think most of us agree that the Federal Government can’t solve all our problems. But there are just so many misinformed people out there with a completely ill-conceived view that President Obama is somehow a Marxist or a Socialist. That seems like a pretty poor assessment of a man who’s doing all he can to save Capitalism. The Teabagger crowd obviously doesn’t know what a liberal really looks like. Just ask all the Progressives the President is losing along the way.

I wish I could envision a more optimistic view of what’s ahead in the next few years. I would love to see the nation come together and solve some of these major problems. But I see more partisan politics, mud slinging and thinly veiled racism in the days ahead. I’d like to paint a rosier picture But I can’t. At least I know with all the crude washing up of the Gulf Coast we’ll have plenty of oil to make the paint.

5.18.2010

Ignite Racing Fuel Signs On As Title Sponsor For ARCA West Racing Series.

An Indiana ethanol maker helping drivers tear up tracks out west this racing season.

Marion, Indiana based, Ignite Racing Fuel, is the new the title sponsor for the ARCA West Series. ARCA West runs through the Pacific Northwest all the way up through Western Canada. Indiana based, Hoosier Racing Tire is the official tire provider for the Series.

Ignite's ethanol racing fuel is made with Indiana corn and is the first 100% American made racing fuel that is totally green compliant.



"It's high octane, with ratings of 108, 111, and 114. Plus, it's cleaner burning and runs much cooler than conventional gasoline," says Ignite co-owner Jay Berry, "cutting down on the chances of a race car over heating."

Berry says Ignite's blend is more consistent than most ethanol fuels out there, offering better peak performance benefits, like extra horsepower and even bigger gains in torque.

Ignite's fuel is blended with a higher ethanol content and burns even cleaner than the E85 used in average flex fuel vehicles. The formula is also cheaper than similar fuels produced by larger competitors. Officials with ARCA West estimate race teams will use between 10% to 13% percent more ethanol than they would with traditional racing fuel, but it's far less expensive. Sometimes by as much as $150 a barrel.

"People working in the garages understand the benefits of switching," Berry says. "But the Biofuel industry as a whole just hasn't done a very good job of educating drivers, race teams or other customers. We're hoping this partnership can change those perceptions."

Ignite is trying to position itself as a market leader and innovator, as states enact tougher emission standards, putting pressure on racing leagues across the country.

By making the switch, ARCA West becomes just the third racing league to transition to alternative fuels. All cars running in the American Le Mans Series can now run on one of four alternative fuels: cellulosic E85, E10, clean sulfur-free diesel, or gas-electric hybrid. The Indy Racing League switched to ethanol in 2007, but uses a Brazilian blend made from sugar cane. NASCAR is exploring the possibility, but so far, hasn't unveiled a timetable on adopting another fuel.

Besides sprint and midget car teams, Ignite has started catching on in the world of high speed drifting. Drivers are drawn to the gains in torque, which produces more speed coming out of turns.



Ignite also plans to target the drivers of monster trucks and high-performance tractors that run in tractor pulls. "The fact that Ignite's ethanol is made here in Indiana offers a certain appeal in the world of tractor pulling," Berry says. "Farmers like the fact that they can drop off their corn at our Marion ethanol plant, watch it get processed into fuel, and then use it in their tractors."

Ignite's sponsorship with ARCA West will add $10,000 to the Late Model Series Championship for first place and will increase the Sportsmen Championship winnings by $4,000.

The ARCA West season kicks off May 1st, in Vernon British Columbia.

5.11.2010

An open letter in support of the Indianapolis Marion County Public Library System (IMCPL).

For those that don’t know the situation; IMPCL is projected to lose up to $9 million dollars over the next three years.


From the library website...

IMCPL will need to scale its budget requirements for multiple scenarios as the Library system faces a loss of up to $2.6 million in 2010, $3.1 million in 2011, and $3.2 million in 2012 in property tax revenue, or an estimated 7%-8% of its yearly operating budget. The Library is funded by a combination of taxes, grants and fees and charges. The property tax is the Library's primary source of revenue and accounts for 86% of the Library's projected income in 2010. In 2009, actual property tax revenues accounted for 80% of the Library's operating revenue. IMCPL receives no County Option Income Tax (COIT) and only a small portion of revenue comes from Local Option Income Tax (8% of revenue in 2010), and fines and fees (4%). State statute requires most services be provided free for residents of the district...

The funding challenges come at a time when library services are being used more than ever. In 2009, IMCPL set a record for patron visits (5.9 million), circulation (17.1 million items), free computer usage (1.2 million session hours) and reference transactions (952,256). The Library is being used by families and individuals for its free resources to conduct job searches, early literacy programs for children, and computer access.


Right now it seems the plan is to close 4-6 branches, mainly in lower income neighborhoods.

This simply shouldn’t have to happen.

So from here on out, I pledge to do more to support of the library system & highlight it’s benefits.

I know I’m late to the party & I know this may be too little too late. I admit I’m a casual library user. I try to stop by at least once a month to pick up a few books. I rarely have any idea of what I’m looking for. And that’s the fun of it. I simply walk down the aisles & pick up two or three books that catch my eye. Occasionally I’ll stop in just to read for a few minutes.

But I do know what it’s like to rely on the library for computers, internet access, e-mail & all the other contemporary forms of communication most of us take for granted. And so do thousands of people here in Indianapolis.

For many the library is the ONLY source for news & current events.

We can’t simply take the library away from the people who need it most. Look at what’s happening in school districts across the state. Revenue is down and schools are slashing budgets. Let’s face it, the situation isn’t about to change anytime soon. Permanent property tax caps are on the ballot in the fall. But what should we spend our tax dollars on if not this?

Children need to develop a desire to learn & gather knowledge. Community Libraries help parents & kids do that. If the city loses 6 library branches that will be dimming the future for thousands of kids in Indianapolis for years to come.

The city has virtually no public transportation. IndyGo does it’s best, but they’re handcuffed by the drop in property tax revenue too. Hundreds if not thousands of families won’t be able to get to the library on a regular basis.

I’m a homeowner & I'm willing to pay my share of property taxes. Luckily, I’m close to 2 branches, one just a short walk away. But not everyone has that luxury. For many children in the city, the library is the only place they can spend a summer day without either spending money or getting into trouble.

So I want to do my part to keep libraries open. It starts with volunteer work. I will be volunteering with Indy Reads. They have a Literacy Volunteer Orientation this Saturday (5/15/2010). Call (317) 275-4036 to get involved.

I pledge to be more vocal & visible in my support for the library system here in Indianapolis. And I urge everyone else who cares about culture & education to do the same. You can make your voice heard a public forum tomorrow, Wednesday, May 12 at 6:30 p.m. at the Library Services Center, 2450 N. Meridian Street. The Library Board considers final approval of a plan at its regular meeting on Thursday, June 10.

5.10.2010

Sustainability Evolution

Sustainable is the new “Green.”

We’ve heard the phrase sustainable being thrown around a lot recently. And not just from environmentalists. Politicians are one of the most common new users. They usually throw it out while paying lip service to budget issues and spending gaps they have no intention closing. It’s also showing up in the corporate world more than ever. Popping up when big banks and business execs want the American people to think the company is taking stock of itself, reevaluating policy, rebranding, or changing it’s image.

I’ve heard it said that “Green is the new beige,” and I couldn’t agree more. It’s now a blanket term used to cover the smallest of behavior or product changes. People say, ‘I’m going green because I recycle. Or buy plant based cleaners.‘ That’s a good first step, but it whitewashes over the fact that consumption is the real problem.

If Green is the new beige, then sustainable is the new green. People seem to know we need to get back to a simpler, more sustainable lifestyle, but they aren’t sure how.

It has to start on the most local of levels. I’m not just talking about a township, city, or countywide. I mean hyper-local. It starts with individual households, families, and offices. You can lose your breath trying to convince, cajole, convert, impress, induce, assure, exhort or influence someone into trying to do better by the planet. But it’s not a very convincing argument if you’re not taking those steps yourself.

Of course that’s easier said than done. We all live in the real world, which means we’re forced to make real world choices every single day. It can be a real challenge. For starters, we’re faced with choices about food, transportation and energy consumption. That’s why it’s vitally important to educate and lead by example. Especially around family, friends and coworkers. Most people want to make better choices but most just don’t know what their alternatives are.

Hopefully they’ll see you bypassing the styrofoam coffee cups in favor of bringing a mug from home. But there’s no reason to confront them if they don’t. The goal is to educate, not confront. There’s no quicker way to turn someone off then by telling them they should or they have to do something.

The bottom Line: The idea of sustainability can’t spread until it’s first embraced by the local community.


Call it a case of Monkey See Monkey Do.

Many people are turned off because they don’t feel like their actions make a difference one way or another. They’re not going to change until they can take ownership of it. Most people feel the need to preserve what they see everyday, i.e. their communities and neighborhoods, but it’s much harder to convince them to think on a global scale, like protecting a river in India.

We’re all individuals but we still have some of that evolutionary need to fit in with the crowd. Of course not everyone will start taking canvas bags to the market just because they see me do it. But getting outside and picking up trash off the street sends a stronger message. Hopefully the neighbors will see it. If not, at least you’ll sleep better at night.

We simply can’t wait for the rest of the world to get on board. We can’t wait for Congress to wake up. There’s no magic law or regulation that’s going to fix the broken system we live in today. There’s too much money involved.

The only way to stand up is to make your voice heard with your money. You have to be committed. It’s not enough just to buy organic lettuce or recycled paper towels.


We need an Evolution.

Not a revolution but an evolution. Let’s face it, we’ve got to adapt. A sustainable way of living isn’t something that happens overnight. It starts with a backyard garden and spreads to the neighborhood garage sales and swap meets. I feel like it’s been said to death but it’s just so darned important. You have to stay local if you want to make an impact. The American people will never be regarded as anything other than consumers. Changing your spending habits is the only way the biggest polluters will take notice.

Factory farms won’t stop selling pesticide laced crops and hormone fed meats unless we stop buying from them. It’s that simple. That means avoiding chain restaurants and supporting local places that use local ingredients. And, it means cutting back on meat in a big way. I’m by no means a vegetarian, but realistically no one really needs to eat beef more than once or twice a week (as long as it’s raised responsibly).

We need to evolve into a society that thinks about where things come from. I mean, we’re only a few generations removed from it. So get back out in the community and let your neighbors know you care about preserving it. It lets them know there’s a level of support out there so they can make their voices heard too.

The Bottom Line: It starts by rebuilding communities. Your dollars are your voice. Spend them locally and be visible and vocal in your support of others who do the same.