From:KevinConnor,PublicAccountabilityInitiative,publicaccountability.org To:Interestedreporters Date:September16,2013 Re:ConflictsofInterestinNewFrackingEmissionsStudy Anewstudyofthemethaneemissionsassociatedwithhydraulicfracturingfornaturalgas,or fracking,isbeingpublishedtodayintheProceedingsoftheNationalAcademyofSciences.The studyclaimsthatmethaneemissionsassociatedwithfrackingare0.42%ofgrossgas production.Otherstudieshavepreviouslycontendedthatleakageratesaremuchhigher,and thereforedestructivefromaclimateperspective.1 Whileafullreviewofthemethodologyandresultsofthelateststudyisinorder,apreliminary lookatthekeyplayersinvolvedsuggestsanimproperdegreeofindustryinfluenceandan insufficientlevelofconflictofinterestdisclosure. Mostsignificantly,atleastoneauthorofthestudyhasasignificantconflictofinterest thatwentundisclosedinthearticle.

Theauthorsofthestudydeclarednoconflictsofinterest, accordingtothearticle,butoneauthor,JenniferMiskimins,iscurrentlytheemployeeofa petroleumengineeringfirm,Barree&Associates,andhasbeensince2012.Thefirmoffersa rangeofconsultingservicesrelatedtofracking.ThepaperlistsheraffiliationasColoradoSchool ofMines.Thelackofdisclosureisaredflagthatsuggeststhattheauthorsofthestudydidnot adheretoPNASsconflictofinterestpolicy,andthatotherauthorsmayhaveconsulting arrangementsandotherindustryconnectionsthatshouldhavebeendisclosedinthearticle. AccordingtoPNASsconflictofinterestpolicy,thejournalmaypublishanerratumorrestrict authorsfrompublishinginthejournalforaperiodoftimeiftheyarefoundtobeinviolationofthe conflictofinterestpolicy. Beyondauthorship,theindustrysponsorshipofthestudyraisesconflictofinterestquestions,as well.Whilethesponsorsaredisclosedinthebodyofthearticle,noinformationisofferedabout howconflictsofinterestweremanagedtoassuretheindependenceoftheresearch.The involvementoftheEnvironmentalDefenseFund(EDF),isalsocauseforconcern,givenitsrole inendorsingflawedprofrackingstudiesfromtheUniversityatBuffaloandtheUniversityat
1

http://www.sustainablefuture.cornell.edu/news/attachments/HowarthEtAl2011.pdf

Texas.SponsorsofEDFsmethaneemissionsworkalsohaveindustrytiesanddeservecritical scrutiny. ThisPAIbriefofferspreliminaryinformationabouteachoftheseissues. I.UndisclosedConflictofInterest&PossibleViolationofPNASPolicy a.Authors&IndustryTies ThePNASarticlestatesthatTheauthorsdeclarenoconflictofinterest,butatleastoneauthor appearstohaveasignificantfinancialconflictofinterest:JenniferMiskiminsiscurrentlya seniorconsultingengineeratBarree&Associates,apetroleumengineeringfirmwhichoffers consultingservicesforcompaniesworldwide,specializinginstimulationandwellperformance optimization.2 Thefirmoffersfracturingrelatedservices,includingperformanceoptimization, horizontalwellstimulationdesign,andfluidandproppantselection.3 Miskiminsjoinedthefirmin2012,priortothecompletionandsubmissionofthestudy,buther affiliationislistedonlyasDepartmentofPetroleumEngineering,ColoradoSchoolofMinesin PNAS.AccordingtoLinkedIn,herassociateprofessorshipattheschoolwasnotcurrentasof 2012. 4 AttheColoradoSchoolofMines,MiskiminswasthedirectoroftheFracturingAcidizing StimulationTechnology(FAST)Consortiumfrom2004untiljoiningBarree&Associates. (MiskiminsstillhasaColoradoSchoolofMineswebsitethatlistsherastheFASTConsortium director).TheFASTConsortiumisajointindustryanduniversityresearchcenterfocusedonoil andgaswellstimulation.5 Membershipintheconsortiumcosts$15,000plusanunspecified initialbuyin,accordingtoMiskiminssbio,forwhichcompaniesreceiveaccesstoallFAST Consortiumprojectresultsthroughannualmeetingsandexecutivestylereports.6 Member companiescomefromalloilandgasindustrysectorsandincludeAnadarkoPetrolum,BG Group,Barree&Associates,EncanaOil&Gas,andShell. 7 Otherauthorsalsohaveindustryties,thoughMiskiminsindustryconnectionisthemost significantonitsface.AccordingtoUniversityofTexasconflictofinterestdisclosureforms whichPAIobtainedthroughafreedomofinformationrequest,leadauthorDavidT.Allenreports someindustrycompensation,includingtravelsponsoredbyExxonMobil,apparentlytoadviseit
2 3

http://www.barree.net/aboutus.html http://barree.net/consulting.html 4 http://www.linkedin.com/pub/jennifermiskimins/4/347/629 5 http://petroleum.mines.edu/research/fast/index.html 6 http://inside.mines.edu/~jmiskimi/ 7 http://petroleum.mines.edu/research/fast/memberco.html

onitscorporatestrategicresearchprogram.8 ExxonMobilsfrackingsubsidiaryXTOEnergyis asponsorofthestudy. Twostudyauthors,MatthewHarrisonandAlHendler,workasprojectmanagersforURS Corporation,aserviceprovidertotheoilandgasindustry.In2012,URSacquiredFlintEnergy Services,anoilandgasconstructionfirm.9 OnitswebsiteURSidentifiesitselfasaleading providerofofdesign,constructionandproductionservicesacrosstheupstream,midstreamand downstreamsupplychain,withexpertiseinconventionalandunconventionalplays,including shalesandoilsands,aswellasestablishedlongtermrelationshipswithsomeoftheworlds largestoilandgascompanies.10 Hendlerisaspecialistinairqualitymonitoringanddata analysisandHarrisonisaseniorgreenhousegasprojectmanageraccordingtotheirLinkedIn profiles. 11 Anotherstudyauthor,A.DanielHill,ischairofthepetroleumengineeringdepartmentatTexas A&M.Hisonlineprofilelistsanumberoffrackingrelatedresearchandconsultingactivities,but itdoesnotsaywhetherheisconsultingforanyindustryentities.Hisprofilealsostatesthathe holdsfivepatentsforvariousoilrecoveryandwellinjectionprocesses.12

b.PNASConflictofInterestPolicy ThefailuretodiscloseMiskiminsconflictofinterestandotherindustrytiesmayconstitutea violationoftheProceedingsoftheNationalAcademyofSciencesconflictofinterestpolicy.13 Thepolicystates: Authorsarerequiredduringsubmissionoftheirmanuscriptstocompletetheonline declarationformandtodiscloseanyconflictofinterest.Thecorrespondingauthormust ensurethatallauthorshavebeenaskedtodiscloseanyconflictsofinterest. PNASsdefinitionofapotentialconflictisbroad,includingeverythingfromhonorariatopersonal friendshipsandpublicassociations,andwouldappeartocovermanyoftherelationships detailedabove: Divulgingapotentialconflictusuallydoesnotinvalidatetheresearchorthecommentsof
8 9

FinancialInterestDisclosureandOutsideEmploymentformsofDavidT.Allen http://www.ft.com/cms/s/0/8b3d70005c1911e1bbc400144feabdc0.html 10 http://www.urscorp.com/Markets/index.php?s=39 11 http://www.linkedin.com/pub/alhendler/15/849/714and http://www.linkedin.com/pub/matthewharrison/16/217/933 12 http://www.pe.tamu.edu/hill/index.html 13 http://www.pnas.org/site/authors/coi.xhtml

arefereeoreditoritsimplyprovidesthereaderinformationnecessarytoindependently assessthework.Aconflictofinterestincludesafinancialassociationorrelationshipthat couldinfluencetheobjectivity,integrity,orinterpretationofapublication.Suchconflictsof interestincluderelationshipswithcorporationswhoseproductsorservicesarerelatedto thesubjectmatterofthearticle.Theserelationsincludeemployment,substantive ownershipofstock,membershiponastandingadvisorycouncilorcommittee,serviceon theboardofdirectors,orpublicassociationwiththecompanyoritsproducts.Other areasofconflictofinterestcouldincludereceivingconsultingfees,patentfilings,serving asapaidspokesperson,orprovidingservicesinexchangeforhonoraria.Other examplesofpossibleconflictsincludeaclosepersonalfriendship,pastorpresent associationasthesisadvisororthesisstudent,orafamilyrelationship. Accordingtothepolicy,whenconflictsofinterestaredisclosed,afootnoteisaddedtothe publishedarticle: Whenaconflictofinterestisdisclosedeitherbytheauthororeditor,afootnote describingtheconflictwillbeincludedwiththepublishedarticle. Theconflictofinterestpolicyalsooutlinessanctionsforauthorswhofailtocomply: PNASreservestherighttopublishanerratumdisclosingconflict(s)ofinterestrelatedto apreviouslypublishedpaper.Authors,referees,oreditorswhohavedeliberatelyor recklesslyfailedtodiscloseconflictsofinterestmayreceivesanctions,includingbeing bannedfrompublishinginPNASforaperiodoftime. ItseemsthatthedisclosureofMiskiminsconsultingworkwouldberequiredbyPNASpolicy, andthatotherrelationshipsmayhavewarranteddisclosure,aswell.Thecircumstancesmay requirethepublicationoferratumorsanctionsontheauthorsofthisstudy. II.EnvironmentalDefenseFund a.RoleinFrackademia EDFhasplayedasignificantroleintwoscandals,attheUniversityofTexasandtheState UniversityofNewYorkatBuffalo,whereinpublicuniversitieslenttheirnamestoscholarshipof questionablemeritthatdownplayedtheenvironmentalimpactsfromfracking,whilefailingto discloseconflictsofinterest.Inbothcases,EDFactedasareviewer,offeringits environmentalistbrandtotheseriouslyflawedreports. AttheUniversityofTexas,theschoolsEnergyInstitutepublishedareportinFebruary2012that madetheclaimthatfrackingposednothreattogroundwater.TheEnergyInstituteclaimedthe

studywaspeerreviewed,anditwaspresentedattheAmericanAssociationforthe AdvancementofScience.Laterthatyearitwasrevealedthatthereportsstudyoffrackings environmentalimpactswasstillindraftform,notmeantforpublicrelease.Moreover,thestudys prinicipalinvestigatorhadfailedtodisclose,bothtotheschoolattothepublic,thathewasonthe boardofdirectorsofPlainsExploration&Production,anaturalgascompany.14 Whenthese issuesweremadepublic,UTconvenedapanelthat,afterreviewingthestudyforimpropriety, slammeditforitspoorscholarshipandconflictsofinterest.15 UTretractedthestudyin December2012,thedirectoroftheenergyinstituteresigned,andthestudysprincipal investigatorretired. InMarchof2012,theShaleResourcesandSocietyInstituteattheStateUniversityofNewYork atBuffalopublishedastudythatclaimedfrackingwasbecomingsaferthankstoincreased regulationandimprovedgasindustrypractices.Thisclaimwasnotsupportedbythe researchersdata,whichactuallyshowedthattherateofenvironmentalimpactsattributableto frackinginPennsylvaniahadincreasedintheperiodstudied.16 AfterSUNYtrusteesopenedan investigation,UBclosedtheShaleResourcesandSocietyInstituteinNovember2012.17 BothofthesestudieswerereviewedbyScottAnderson,EDFspointpersononpoliciesrelated tonaturalgasdevelopment.18 InTexas,AndersonhelpedtheUniversityofTexasatAustin defineitsscopeofworkandrevieweddraftsduringthecourseoftheproject,19 andatBuffalohe reviewedthereport,thoughnotedinablogpostthatthisdoesnotmeanthatallof[his] suggestionsweretakenorthat[he]agree[d]withallofthereportsfindingsorconclusions.20 Regardless,itseemsthatinbothcasesAndersoneithermissedorignoredfundamental problemswiththereportsthatledtotheirlaterretraction.Inbothcases,thereportswere releasedwiththeimprimaturoftheirrespectiveuniversitiesandwithEDFsimpliedapproval.

b.OilandGasTies AccordingtothePNASarticle,EDFsmethaneemissionsworkisfundedbythefollowing individuals:FionaandStanDruckenmiller,HeisingSimonsFoundation,BillandSusan

14 15

http://publicaccountability.org/2012/07/contaminatedinquiry/

http://publicaccountability.org/2012/12/universityoftexasreviewersblastfrackingreportandrecommendits withdrawal/ 16 http://publicaccountability.org/2012/05/ubshaleplay/ 17 http://www.ubspectrum.com/mobile/news/ubshutsdowncontestedshaleinstitute1.2956979 18 http://www.edf.org/people/scottanderson 19 http://blogs.edf.org/texascleanairmatters/2012/02/16/iftheproblemisnthydraulicfracturingthenwhatis/

20

http://blogs.edf.org/energyexchange/2012/05/16/universityatbuffalosshaleresourcesandsocietyinstitutes environmentalimpactsduringshalegasdrillingreport/

Oberndorf,BetsyandSamReeves,RobertsonFoundation,TomSteyer,KatTaylor,andthe WaltonFamilyFoundation. Severaloftheseindividualshavetiestothefrackingindustry: JulianRobertson,investorinnaturalgasinfrastructure.Robertsonisreportedly EDFstopdonor21 andgave$10.5milliontoEDFin2011alone.22 Robertsonisasenior advisortoandinvestorinTigerInfrastructurePartners,aprivateequityfirmwhich launchedin2009.23 Thefundisfocusedoninvestinginnaturalgasinfrastructurerelated totheshalegasboom,andlauncheda$500millionnaturalgasinfrastructurefundin 2012. 24 StanleyDruckenmiller.Throughhisfamilyinvestmentfirm,DuquesneFamilyOffice, Druckenmillerhashadinvestmentsinanumberofoilandgascompaniesoverthepast year,thoughhedidnotreportoilandgasholdingsinhismostrecentfiling:
21

CabotOil&Gas EQTCorp. PBFEnergy PioneerNaturalResources SouthwesternEnergyCo. NobleCorp. DukeEnergy CheniereEnergy Chevron ExxonMobil Halliburton MarathonOilCorp. PlainsExploration&ProductionCo. ValeroEnergyCorp.25

http://bigthink.com/ageofengagement/environmentaldefensefundmegadonorisbiggestindividualcontribut ortoromneysuperpac 22 https://www.guidestar.org/FinDocuments/2011/137/068/2011137068398089cd0caF.pdf 23 http://dealbook.nytimes.com/2009/11/03/tigerrobertsonandhenrylaunchpefirm/

24

http://www.prnewswire.com/newsreleases/tigerinfrastructurepartnersandkiewitcorporationcreatejointven turetoinvest500millioninmidstreamenergycompaniesandassets157277415.html
25

http://www.sec.gov/Archives/edgar/data/1536411/000153641113000002/q1_201313f.txt, http://www.sec.gov/Archives/edgar/data/1536411/000153641112000009/q3_201213f.txt,and http://www.sec.gov/Archives/edgar/data/1536411/000153641113000001/q4_201213f.txt

BillOberndorf.Until2012,Oberndorfwasapartnerinaninvestmentfirm,SPO Partners,thathadsignificantoilandgasinvestmentsinthefollowingfirms:Petroquest Energy,QuicksilverResources,OasisPetroleum,ResoluteEnergyCorporation,Hicks Acquisition.26 Oberndorfappearstohaveformedanewinvestmentfirm,Oberndorf Enterprises,whichannouncedtheacquisitionof8.4millionsharesinCanadiancompany SpartanOilinlate2012.27

Additionally,EDFhastiestotheoilandgasindustrythroughitsboard.KatherineLorenz,the granddaughterofthefatheroffracking,GeorgeMitchell,servesonitsboard,andotherboard membersareactiveoilandgasinvestors.

26 27

http://www.sec.gov/cgibin/owndisp?action=getowner&CIK=0001218663 http://www.zacks.com/research/news_print.php?id=348c5758