The Message and the Messengers

Connecting the Dots: Marcellus Shale Players Presented by Dory Hippauf April 30, 2013

My name is Dory Hippauf, I am with the Gas Drilling Awareness Coalition of Luzerne County and the head of the research committee. I am not a professional researcher, nor do I hold any related degrees. What I do have is over 3 years of researching the Whos who involved in the Marcellus and other gas plays. I have connected the dots between corporations, trade organizations, front groups and politicians. I have found the picture which has emerged from connecting the dots to be very interesting and I hope you also find it interesting. The raw data I have collected is compiled using a spreadsheet. The spreadsheet now has over 7,500 entries. With tonights presentation, I will focus on the message and messengers and show you where the over 7,500 entries filters down to a very tiny few.

 Why Do I Connect the Dots? Understanding the Message Connecting the Messengers Gauging the Message Impact

Ill be briefly talking about Why Do I Connect the Dots? Understanding the Message Connecting the Messengers Gauging the Message Impact

Why I Connect the Dots

In 2009, we had a landman knock on our door. He tried to have us sign a lease. We didnt. Over the next week, we received 2 more requests to lease via snailmail, and a few phone calls. This prompted me to start looking into this gas drilling thing. What I initially found was enough to convince me that there were a serious downside to gas drilling. I eventually joined our local group, the Gas Drilling Awareness Coalition of Luzerne County. At a few of the meetings, one question which seemed to be repeatedly asked was Who are these corporations?. A few google searches turned up some information, but there wasnt one website or source which focused on the energy industry and the connections. It became obvious, if I wanted to know where the dots connect, I would have to do it myself. Why do I connect the dots? I confess, part of it is that Im nosy, but more importantly organizations and groups who are one side of the fence need to know who is on the other side of the fence. Its not enough to make one big blanket statement that it is the corporations, or politicians. We need to know who those corporations are, who are those politicians, who are the trade organization, the front groups, the lobbyists and how it works together.

The other reason for connecting the dots, is the energy industry knows who we are. They have connected a few dots of their own. This is a presentation by Energy-in-Depth (EID) at a conference in 2011. Note the title understanding, responding to and working with environmental NGOs NGO stands for non-government organization. In general this any organization not connected to the government.

EIDs presentation divided NGOs into 2 groups: Solution oriented, and those who are committed to an ideology.

By Solution-Oriented, EID feels these are groups the energy industry can work with and form partnerships of sorts. One example of partnership is the recently announced formation of the Center for Sustainable Shale Development (CSSD), of which the Environmental Defense Fund is on the centers governing board. The Environmental Defense Fund (EDF), as identified by EID as a solutions-oriented NGO is part of the CSSD. I wont be going into the whos who of the CSSD in this presentation. However, that CSSD, it has no regulatory authority or enforcement powers. Participation is not mandated by any governmental entity, participation in CSSD is purely voluntary and as such it means nothing in terms of addressing and solving the problems related to shale development in any meaningful way.

EID goes on to show a few other groups identified as those who will probably not be willing to swallow the industry talking points, even a little.

The Natural Gas Industry knows who we are. We should know who THEY are.

The groups EID has listed in that presentation was just a general overview. The industry knows the large and the small local environmental organizations, and they know who is part of those organizations, events being held, petitions being passed around etc. This is Dana Bohan, shes Junior Associate - Strategic Communications - Energy Sector for FTI Consulting, and Staff Geologist for Energy in Depth (EID) - Northeast Marcellus. Last summer, at the Stop The Frack Attack rally in Washington, DC., Bohan wandered among the crowd, talking to a number of people. It was reported Bohan identified herself as someone concerned about energy and was working on a blog. Technically true, EID is concerned about energy, and EID does have a blog, Bohan failed to mention her connection to EID.

Understanding the Message

The Message. By message I am referring to the talking points which are the foundation for the advertising, presentations and other public relation activities. I would like to mention there is a shift away from the terms public relations and education the public. The new term is engaging the public or public engagement. The term engaging the public sounds nicer than public relations. The key to messaging, from any source, lays in the terms what they are and how do you define them. It is also in what is said and what is not said. I wont be going into all the energy industry talking points, but will touch on a few key ones which seem to be repeated more often.

http://www.philly.com/philly/opinion/20130424_Dispel_myths_about_fracking.html

On April 24, 2013, an opinion piece was published in the Philadelphia Inquirer entitled Dispel Myths about fracking. It was written by Chris Faulkner, CEO of Breitling Oil & Gas. The myths he wrote about are the standard industry talking points. Talking Point#1 is what I call the shiny. By the SHINY, I mean the promise of how people and communities will be racking in the money.

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Consider Karnes County, Texas. A few years ago, the community was plagued by poverty. Today, it's not uncommon for local residents to collect $70 million each month in royalties for allowing energy companies to drill on their land. The wealth has increased the county's tax base almost six-fold in two years. Last year, more than $15 billion in royalty checks was paid to private landowners by energy companies in Texas alone. Aside from Texas, many other areas of the country including Pennsylvania - are also benefiting from fracking.

Faulker stresses the shiny following his short opening sentence. Faulkner did not name his source for these numbers, plus the figures he states are for Texas, if you notice his next sentence seems like an afterthought by mentioning Pennsylvania. I also want to bring your attention to his use of the term FRACKING. Aside from the fact the industry has bemoaned their own term FRACKING - as sounding obscene, they continue to use it.

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Shale play turns Karnes County around, but not without trouble By John MacCormack | February 23, 2013 | Houston Chronicle County Judge Barbara Shaw said the boom has bailed the county out of its chronic financial woes, but has also brought two huge headaches: The ongoing destruction of roads by heavy equipment and dangerous highways. "My problem is I have $18 million sitting in the bank but I have at least $100 million in road damage," said the judge. Karnes has joined forces with other Eagle Ford counties and hired an Austin lobbyist to press for legislation that would provide financial relief. Presently, the state keeps the tens of millions collected from energy companies in oil and gas taxes.

"You have a lot of people making a lot of money, but basically, it's the people who had money to begin with - people with land, cattle, crops and government subsidies," said Ken Riley, a Kenedy City Council member. Just about every morning, Homer Lott, the former mayor of Runge, makes the 15-mile drive to eat tacos with the coffee crowd at Becky's Caf in Karnes City. He passes the Bordovsky place on each trip down FM 81. "There used to be cattle in that pasture. Now it looks like refinery city. It won't be long before FM 81 becomes the refinery corridor," said Lott.

http://www.chron.com/news/houston-texas/houston/article/Shale-play-turns-Karnes-County-around-but-not-4303201.php

What Faulkner did not mention was the economic downside. Since he specifically held up Karnes County, TX as his example, I checked into it a bit more. These are two excerpts from a February Houston Chronicle article. Karnes County is trying to obtain financial relief, and wants at least some of all that money, which Faulker touted, to stay in the County instead of it all going to the state. And all those royalty checks? According to Ken Riley, the bulk of it is going to people who already had money. Note: people with land, cattle, crops and GOVERNMENT SUBSIDIES.

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Claim 1: Fracking will contaminate the underground water supply. Subsurface contamination from fracking is almost impossible. Fracking involves the injection of liquid 7,000 to 15,000 feet underground - far deeper than drinking water aquifers, which are often about 300 feet below the surface.

Faulkner begins his list of myths to dispel with Fracking and water supply. Technically Faulkner is correct. Fracking doesnt contaminated water supplies. But it depends on how you define fracking.

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Per dictionary.com:
hydraulic fracturing noun a process in which fractures in rocks below the earth's surface are opened and widened by injecting chemicals and liquids at high pressure: used especially to extract natural gas or oil.

Per dictionary.com: Hydraulic Fracturing or fracking is a process in which fractures in rocks below the earth's surface are opened and widened by injecting chemicals and liquids at high pressure: used especially to extract natural gas or oil. Fracking refers to one part of the entire extraction process.

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Technical Report The Modern Practices of Hydraulic Fracturing: A Focus on Canadian Resources The Petroleum Technology Alliance of Canada March 2013 Journal of Canadian Petroleum Technology Tech_Report_313.pdf

www.spe.org/ejournals/spe/JCPT/2013/03/Tech_Report_0313.pdf

From this technical report by the Journal of Canadian Petroleum Technology, you can see there is some industry concerns regarding lumping fracking into the entire process, and they go further by admitting contamination can result from a multitude of activities that are part of the oil and gas exploration and production process..

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Last year, an exhaustive University of Texas study done by the former head of the U.S. Geological Survey looked into alleged incidents of fracking contamination. "None of the water-well claims involve hydraulic fracturing fluid additives, and none of these constituents has been found by chemical testing of water wells," the study concluded.

While the study found no direct link between water contamination and fracking itself, it did cite surface spills of fracturing chemicals as a risk to groundwater. It also found blowouts underground during fracking operations have been underreported.
Reading Beyond the Headlines: Fracking and Water Contamination | February 17, 2012 | By Mose Buchele | StateImpact.npr.org

Faulkner also cites a University of Texas study as proof. However, either Faulkner didnt read the report, or chose not to mention it, the UT study did cite surface spills of fracturing chemicals as a risk to groundwater. It also found blowouts underground during fracking operations have been under-reported. Faulkner seems unaware the university withdrew the study after an independent review found it did not meet the scientific research standards, also Chip Groat, who was head of the study, failed to disclose he is on the board of directors for Plains Exploration and Production Co, (PXP) (a gas/oil drilling corporation), and had received $413,000 in cash and stock from PXP in 2011. What this shows is defining terms and understanding them is an important part of crafting the message, as is what is said and not said.

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Message: 100 years of Natural Gas Reserves: An estimate of the amount of oil or natural gas reserves that may be available for extraction. Recoverable Reserves: A term used in natural resource industries to describe the amount of resources identified in a reserve that is technologically or economically feasible to extract. Recoverable reserves is also often called proved reserves.

To go a bit more in understanding how defining the terms is important, lets look at the 100 years of Natural Gas message. What is meant by 100 years of natural gas? Depends on the definition. There are two associated terms. Reserves: which is an estimate of the amount of a resource that MAY be available for extraction. Keyword being MAY. When the energy industry says 100 years of natural gas, they are referring to the RESERVES. In practicality, a more accurate number would be based on Recoverable Reserves. Recoverable Reserves are identified the amount of resources which are technologically and/or economically feasible to extract.

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To exaggerate the point Lets say there is a million years of natural gas RESERVES on the moon. In terms of Recoverable Reserves, there is none because we currently do not have the technology to extract it, nor is it economically feasible to do so.

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U.S. shale gas reserve estimates plummet January 26, 2013 | PennEnergy
Estimates of 2012 shale natural gas reserves in the U.S. represent a shocking step backward for the rapidly growing industry, according to Bloomberg. The projections released by the U.S. Department of Energy estimate that the country holds around 482 trillion cubic feet of recoverable natural gas from shale basins. That represents a 42 percent decline from 2011 when estimates of shale gas reserves were placed at around 827 trillion cubic feet. The declines stemmed from more detailed information available because of the dramatic uptick in natural gas exploration in shale deposits over the past year. Probably the most substantial impact of the updated estimates, however, was the 66 percent reduction in recoverable reserves in the Marcellus shale formation in Pennsylvania, New York, Ohio and West Virginia. In 2011 that basin was estimated to hold 410 trillion cubic feet of gas, enough to fill U.S. gas demand for 17 years at 2010 levels. Now that number has been reduced to 141 trillion cubic feet, or around 6 years.

http://www.pennenergy.com/articles/pennenergy/2012/01/u-s--shale-gas-reserve.html

The US Dept of Energy released new natural gas numbers based on recoverable reserves. DOE reduced previous estimates of recoverable reserves in the Marcellus Shale by 66%, in relation to the 100 years of natural gas talking point, the DOE puts estimates only 6 years. Please note the 6 year estimate is based on CURRENT consumption rates. Obviously if consumption rates increase, the 6 year number would decrease. The industry is stressing low natural gas prices for consumers as a selling point to convert homes to natural gas heat, pushing for vehicles to use natural gas as a fuel, and hyping exports. These would increase demand, so the 6 years is a bit optimistic.

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Message: Natural Gas is a BRIDGE FUEL

The Center for American Progress - Natural Gas: A Bridge Fuel for the 21st Century" By John Podesta and Timothy E. Wirth | August 10, 2009 Natural gas is the cleanest fossil fuelit produces less than half as much carbon pollution as coal. Recent technology advancements make affordable the development of unconventional natural gas resources. This creates an unprecedented opportunity to use gas as a bridge fuel to a 21st-century energy economy that relies on efficiency, renewable sources, and low-carbon fossil fuels such as natural gas.

Natural gas is A Bridge Fuel. Remember the movie Mary Poppins? Remember the song Spoonful of Sugar helps the medicine go down? The message of natural gas as a bridge fuel is the spoonful of sugar designed to quiet and mollify groups and people who are concerned that natural gas will distract from renewable sources of energy.

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In 2011, this article appeared in Fuel Fix, an industry publication. So, hey, it must be a bridge fuel if billionaires agree, right? Well, what a difference a year makes.

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American Gas Association (AGA) | December 2012: DOE Report Affirms Role of Natural Gas as a Foundation Fuel Washington, D.C. A recent report commissioned by the U.S. Department of Energy (DOE) entitled Macroeconomic Impacts of LNG Exports from the United States affirms the position of natural gas as a foundation fuel for the United States and the nations energy future. The American Gas Association (AGA) is encouraged to see DOE examining the important role that natural gas will serve in our nations energy and economic future.

Guess what? Natural gas is no longer a bridge fuel according to the Department of Energy its now a Foundation Fuel! If you take into consideration the newly downward revised recoverable reserve numbers from the same Department of Energy, its a very weak foundation.

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Message: Creates Jobs IHS Global Insights has produced 4 reports from 2009-2012 dealing with the economic benefits of Natural Gas Drilling.

2009: Measuring the Economic and Energy Impacts of Proposals to Regulate Hydraulic Fracturing Task 1 Report. Prepared for the American Petroleum Institute (API) April 2011: The Economic Contribution of the Onshore Independent Oil and Natural Gas Producers to the U.S. Economy Final Report. Prepared for the Independent Petroleum Association of America (IPAA) December 2011: The Economic and Employment Contributions of Shale Gas in the United States. Prepared for the American Natural Gas Alliance (ANGA) October 2012: Americas New Energy Future: The Unconventional Oil and Gas Revolution and the US Economy Volume 1:National Economic Contributions. Supported by American Petroleum Institute, Institute for 21st Century Energy, the American Chemistry Council, and Natural Gas Supply Association.

One last message. Often cited as an authoritative source are the IHS Global Insight reports. Between 20092012, IHS produced 4 reports. Each report has very glowing job creation numbers, and each set of number glow even more than the previous numbers. Note that IHS prepared these reports for a number of energy related organizations which are heavily pushing the talking points.

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SHALE AND WALL STREET: WAS THE DECLINE IN NATURAL GAS PRICES ORCHESTRATED? FEBRUARY 2013 by Deborah Rogers

Shale development is not about job creation. Optimistic job estimates by industry have relied heavily on unrealistic multipliers to claim vast numbers of indirect jobs. Such job estimates in industry studies often include professions such as strippers and prostitutes in the overall job gains not the sort of jobs that most people think of when they hear optimistic numbers from the oil and gas industry. Moreover, direct industry jobs (for onshore and offshore oil and gas) have accounted for less than 1/20 of 1% of the overall U.S. labor market since 2003, according to the Bureau of Labor Statistics. This cannot be construed as game changing job creation.

Economic models are based partly on hard data and partly on guess-timates. The more accurate the data, the more accurate the results. Also influencing the results is what data is included and what data is excluded. As Deborah Rogers, from the Energy Policy Forum, notes Optimistic job estimates by industry have relied heavily on unrealistic multipliers to claim vast numbers of indirect jobs. Multipliers in this case assumes if x amount of energy jobs come into a town, then x amount of spin off jobs will be created.

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Drilling into Big Oil's big job claims | By Chris Isidore @CNNMoney April 25, 2012 Parsing the job numbers: The jobs Felmy is citing are based on research by energy industry consulting firm IHS CERA, which earlier this year estimated that the industry produced 150,000 jobs in 2011. Another 150,000 jobs a year over seven years would create the million additional jobs the industry promises.

But that job count comes from the broadest possible estimate of oil jobs.
It includes everyone from the roughneck in North Dakota drilling a new oil well, to a trucker driving equipment to that oil job site, to jobs created by the spending of those oil workers, such as a clerk at a WalMart or a stripper serving the workers drawn to one of those North Dakota oil boomtowns.
http://money.cnn.com/2012/04/25/news/economy/oil-jobs/index.htm

Question: What happens to jobs when the Gas/Oil Corporations leave town?

CNN Money confirms the rosy job numbers from IHS includes Walmart Clerks and Strippers as multipliers. Shale resources are finite. What happens to the multiplier jobs when the energy corporation leave town?

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Connecting the Messengers

Now that weve gone over a few of the messages, lets look at the Messengers

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DEFINING TERMS - Trade Association: an association of organizations in the same trade formed to further their collective interests, especially in negotiating with governments, trade unions, etc. - Front Group: organizations that appear to be independent voluntary associations or charitable organizations. Front groups can act for the parent group without the actions being attributed to the parent group. - Astroturf Group: front groups pretending to be Grassroots, while actually being operated by a discreet sponsor. - Grassroots Group: the common people as a fundamental group with common interests, volunteers working together for common purpose. - Echo Chamber: Use of multiple media outlets to repeat or echo the same message The echo chamber is also used among the various front and astroturf groups as amplification.

We begin by defining a few terms. Trade Association: an association of organizations in the same trade formed to further their collective interests, especially in negotiating with governments, trade unions, etc. Front Group: organizations that appear to be independent voluntary associations or charitable organizations. Front groups can act for the parent group without the actions being attributed to the parent group. Astroturf Group: front groups pretending to be Grassroots, while actually being operated by a discreet sponsor. Grassroots Group: the common people as a fundamental group with common interests, volunteers working together for common purpose. Echo Chamber: Use of multiple media outlets to repeat or echo the same message The echo chamber is also used among the various front and astroturf groups as amplification.

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Front Group
Independent Petroleum Association of America (IPAA)

Front Group Oil & Gas Corporations State Trade Groups

American Petroleum Institute (API)

Front Group

Front Group

Front Group

This is a broad depiction of the connections. The Oil & Gas corporations form trade groups, these are on the national and state levels. The trade groups then create front groups, and corporations create their own front groups too. Additionally, the front groups may create even more front and/or astroturf groups. Other groups include the Marcellus Shale Coalition, American Natural Gas, Americas Natural Gas Alliance, and American Clean Skies Foundation. As a sidenote Americas Natural Gas Alliance and American Clean Skies Foundation were creations of Aubrey McClendon, the now former CEO of Chesapeake Energy.

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http://www.nxtbook.com/nxtbooks/naylor/PAAB0210/index.php?startid=41#/54

Well start with the Independent Petroleum Association of America, IPAA. The IPAA boasts having over 6,000 members. A complete membership list is only available to members. The 6,000 number is a bit deceiving, as these include multiple individual members from the same corporations, plus not all members are actual gas&oil corporations. The members include financial corporations such as Deutche Bank, Union Bank, and similar.

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IPAA is described as a trade association organized under 501(c)(6) of the Internal Revenue Code. It shares space and staff with its "IPAA Educational Foundation" (IPAAEF), a 501(c)(3) non-profit organization, which means that in general contributions to the latter can be counted as a charitable tax deduction by its donors.

http://www.prwatch.org/news/2012/12/11921/%E2%80%9Cenergy-depth%E2%80%9D-%E2%80%93-reporters%E2%80%99-guide-its-founding-funding-andflacks

IPAA is a 501 (c)(6), had has a spin-off foundation called IPAA Educational Foundation. In terms of funding, donations going to the IPAA Education Foundation qualify as charitable donations. Two of the better known donors are Halliburton, Chesapeake Energy. Participating universities include University of Houston, Rice University, Texas A&M, and the University of Texas. IPAA Education Foundation also has programs in Texas high schools.

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http://www.ipaa.org/education/about/history.php

IPAA Educational Foundation has 3 programs in Houston and one in Fort Worth. Now that you know a little bit abut IPAA, well move on to one of their messengers.

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Energy-in-Depth (EID) is probably the most well known messenger. It is very active and vocal. Many people are under the impression EID is an independent organization or a front group. Its not.

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EID is a public relations campaign, created by IPAA. In 2009, IPAA sent out this letter to its members announcing the PR campaign. Note the heading: Hydraulic Fracturing Under Attack.

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Also note this line about ..combat new environmental regulations, especially with regard to hydraulic fracturing.

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For months, IPAA's government relations and communications teams have been working around-the-clock on a new industry-wide campaign known as "Energy In Depth" (www.energyindepth.org) to combat new environmental regulations, especially with regard to hydraulic fracturing. And, we're seeing some outstanding results. IPAA Vice President of Government Relations Lee Fuller and Vice President of Public Affairs Jeff Eshelman are working on the Energy In Depth" campaign that has garnered the attention of national news outlets, including The Wall Street Journal, The New York Times, The Washington Post, Reuters, the Associated Press, National Public Radio and more. The cooperating regional and state associations have been an integral part of this national campaign and they are working closely with their news media and policymakers using coordinated messages.

I want to bring your attention to this excerpt from the IPAA letter. IPAA's government relations and communications teams have been working around-the-clock on a new industry-wide campaign known as "Energy In Depth" (www.energyindepth.org) IPAA Vice President of Government Relations Lee Fuller and Vice President of Public Affairs Jeff Eshelman are working on the Energy In Depth" campaign. Remember those two names, Fuller and Eshelman. Most importantly: The cooperating regional and state associations have been an integral part of this national campaign and they are working closely with their news media and policymakers using coordinated messages. WORKING CLOSELY WITH NEWS MEDIA AND POLICYMAKER USING COORDINATED MESSAGES. COORDINATED MESSAGES is the new term for Echo Chamber.

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Texas Eagle Ford Mountain States DenverJulesberg Basin Michigan Niagra Reef Illinois New Albany California Miocene Monterey

EID has two active websites. One for the Northeast section of the Marcellus Shale which includes northern counties of Tioga, Susquhanna, Bradford etc, and on into New York where EID seems to be concentrating more heavily due to NYs moratorium. On the Western side of Pennsylvania and into Ohio, we have EIDs Ohio Project. EID is active in other areas of the country, but has no websites for these.yet.

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WebsiteRegisteredtoDittus Communications

Purchased byFTI

PRFirm

Projectof CEA

WebsiteRegisteredto Dittus Communications Executive Director

LeeFuller
VicePresidentGovernment Relations VicePresidentPublic Affairs/Communications

Affiliate

Executive VicePresident Affiliate

JeffEshelman

Client

Remember Fuller and Eschelman? In addition to working for IPAA, they also have EID titles. Fuller is the executive director, and Eschelman is the Executive Vice President. The main EID website is registered to Dittus Communications, which was purchased by FTI Consulting. And as I will show, there are a number of EID people who are employed by FTI Consulting. Secure Our Fuels website is also registered to Dittus Communications, and is a project of the Consumer Energy Alliance (CEA). CEA is affiliated with the American Petroleum Institute (API) and the IPAA. API is a client of HBW Resources and we will get to them in more detail. We have now connected two PR firms to two major trade groups, and their front groups and PR campaigns. Not surprising the messaging emerging from all of these is very similar, almost word for word. Are the messages coordinated?

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Travis Windle

This chart shows EID people who are employed by FTI Consulting, IPAA and their other associations. Note Brushe, Tucker and Windell are members of the Marcellus Shale Coalition. Brushe provides general research and writing support for FTIs Energy sector and Public Affairs practice. As well as IPAA, the National Petrochemical Association of America, and the Marcellus Shale Coalition. Tucker and Windle have been listed as spokespersons and consultants to the Marcellus Shale Coalition. Regarding the revolving door, it is not just Senators and Representatives taking a twirl. Staffers also have access to the revolving doors. Tucker was formerly the Communications Advisor Rep Roy Blunt R-MO and former Rep John E Peterson R-PA. Windle Press Secretary, Rep John E Peterson R-PA, Rep Tom Petri R-WI. Staff Assistant to Rep Mellisa Hart R-PA and in the US House of Representatives he was the Communications Director, House Financial Services Committee and Press Secretary, House Republican Conference Brian Kennedy was the press secretary to House Speaker John Boehner when Boehner was the minority leader, and Communications Director to former Rep. Richard Pombo. Kennedy is credited with founding the Institute for Energy Research, Washington DC office. Remember the previous slide about working closely with policymakers using coordinated messages.? Anyone here think Kennedy, Tucker or Windle arent in contact with former colleagues or associates in Congress? And please note David Blackmons connection to Consumer Energy Alliance

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WebsiteRegisteredtoDittus Communications WebsiteRegisteredto Dittus Communications PRFirm

ProjectofCEA

ExecutiveDirector

LeeFuller
VicePresident GovernmentRelations

Researcher

PublicAffairs&CommunicationsCoordinator

JuliaBell
VicePresidentPublic Affairs/Communications PressContact Executive VicePresident

JeffEshelman
SeniorVicePresident

Research Director Partner Organization

SimonLomax
FormerEditorial Director Funding Source

BrianKennedy
CoFounder

Front Group

Chesapeake Energy

Heres a slightly expanded view. Julia Bell, listed as both a researcher at EID and Public Affairs and communications director for IPAA. Brian Kennedys connection to IER, which is the partner organization to American Energy Alliance, another front group. Simon Lomaxs connections are a bit interesting. He was with Energy Now as Editorial Director. One of Energy Nows funding sources is American Clean Skies, which is the front group for Chesapeake Energy. Hows this looking for coordinating messages now?

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A few more connections. Ever wonder where former Enron execs ended up? Well, Bradley found himself a niche. And Thomas Pyle, I credit his association with the very beginnings of my interest in connecting the dots

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Remember the Florida recount of 2000? The news footage of Floridians storming the Dade County office and demanding the recount be shut down? Turns out those Floridians were bused in congressional staffers. Thats Thomas Pyle in the lower left corner wearing the black shirt. At that time he was a policy analyst for the former House Minority Whip Tom Delay.

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When Pyle left his staff job, he went to work for the Koch Brothers as a lobbyist, and now hes president of the AEA and IER. Both IER and the AEA are partly funded by the Koch Brothers and their donor network. Charles and David Koch, the billionaire brothers who own Koch Industries, have spent over $67,000,000 from their family foundations on groups who have denied the existence or extent of global climate change, promote fossil fuel use and block policies that promote clean energy development. These two organizations are also involved with lobbying congress about the Keystone XL Pipeline, and crushing wind power legislation.

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Benjamin Cole, a spokesman for American Energy Alliance told Politico in October 2012 that, "Our [American Energy Alliance] goal is to make the United States Wind Energy Policy and Wind Production Tax Credit so toxic that it makes it impossible for John Boehner to sit at a table with Harry Reid and say, Yeah, I can bend on this one.

Natural Gas as a bridge fuel? Not with this kind of attitude.

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Now we move onto the American Petroleum Institute. Like the IPAA, the API keeps its membership list a secret. Remember me mentioning the front groups spinning off more fronts? APIs Energy Tomorrow is a good example. From Energy Tomorrow, we have 5 other projects. Youve might have seen commercials for Energy Tomorrow. Notice anything else? With the exception of CLNG, none of the others use the term NATURAL GAS, it is all energy and shale. Lets take a closer look at the Americas Energy Forum.

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29 [ insert state name ] Energy Forums

When you go to the main site for Americas Energy Forum, there is a drop down box where you can find a forum in your state. Most of these are named as whatever state energy forum. There are 29 of these forums. Each of these have the same name, just insert the state or states nickname.

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Heres the one for Pennsylvania, called the Keystone Energy Forum. Im going to show you three more screen shots of energy forums from other states. See what they all have in common.

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This is South Carolina

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Arkansas

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And the Buckeye forum from Ohio.

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Aside from the same layout and text. What else do they all in common? Money and Jobs. Keystone and South Carolina both tout billions in state and local revenues, while Arkansas and Ohio boast about jobs. Photos are different but the message is the same. Any Message Coordination going on here?

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The Ohio Energy Resource Alliance | Saturday, September 29th, 2012 The Ohio Energy Resource Alliance (OERA) was formed to help provide answers to Ohioans who have questions about shale development, and how it will benefit Ohio and their communities. The OERA is comprised of Energy In Depth Ohio; the Ohio Petroleum Council, a division of the American Petroleum Institute (API); the Ohio Oil & Gas Association; the Ohio Oil & Gas Energy Education Program; the Buckeye Energy Forum; and Americas Natural Gas Alliance.

http://www.eidohio.org/tag/buckeye-energy-forum/

How about now? From EID Ohios website: The OERA is comprised of Energy In Depth Ohio; the Ohio Petroleum Council, a division of the American Petroleum Institute (API); the Ohio Oil & Gas Association; the Ohio Oil & Gas Energy Education Program; the Buckeye Energy Forum; and Americas Natural Gas Alliance.

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Michael Zehr
Vice President of Federal Affairs

2009: Minority Staff Director, US Senate Subcommittee on Aging 2009-2010: Legislative Director, Former Senator George S LeMieux (R-FL). LeMieux appointed on September 9, 2009, to the United States Senate to fill the vacancy caused by the resignation of Melquiades R. Martinez; took the oath of office and served from September 10, 2009, to January 3, 2011; did not seek election in 2010. 2006-2009: Legislative Director, Former Senator Mel Martinez (R-FL) Martinez resigned stating he was homesick, however he had his share of controversy which included the Terry Schiavo memo. In 2005 amid the right-to-life case involving Terri Schiavo, the brain-damaged Pinellas County woman who ultimately was removed from a feeding tube. Martinez, who sought federal review of the case, accidentally handed a Democratic senator a memo detailing why the Schiavo bill was good for Republicans. And there was also the problem of illegal campaign contributions, and Campaign Finance irregularities. 2003-2006: Legislative Assistant, Senator Mitch McConnell (R-KY) 1999-2003: Legislative Assistant, Senator Tim Hutchinson (R-AR)

I had previously mentioned HBW Resources. A few months ago, Michael Zehr became a follower on my twitter account. As is my habit, I always check out my followers, and was amused to find Zehr works for HBW Resources. Up to that time, HBW Resources was on my dot list, but I didnt pay much attention to them. That quickly changed. As you can see Zehr also took a spin through the revolving door. Fasten your seat belts its about to be bumpy.

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Quick review of previously mentioned connections.

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HBW stands for Holt, Browning and Whatley. Holt and Browning are President and Vice President of CEA respectively. Browning is listed as a lobbyist for API, and has been a guest blogger for EID. Whatley is credited with creating CEA and is the executive director for Southeast Energy Alliance. And as you can see, we again have the revolving door.

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Whatleys dots also coincide with EID. David Blackmon, EIDs Texas Field Director, is also the Executive Director of CEAs Texas chapter and Vice Chair of Land and Royalty committee for IPAA. Both Whatley and Everley are columnists for Townhall.com, which is a conservative publication, and formerly a project of the Heritage Foundation. It was purchased by Salem Communications Corporation in 2006. Their columnists and members are the whos who of conservatism, and to connect those dots would take more time than we have left. Everley and Blackmon are both are connected to EID and both work for FTI consulting.

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Salon.com: Big Oil and Canada thwarted U.S. carbon standards

Consumer Energy Alliances Echo Chamber is a strategy where any message created by that group or its supporters would be echoed across many different blogs and websites, creating the impression of a large-scale movement.

http://www.salon.com/2011/12/15/big_oil_and_canada_thwarted_u_s_carbon_standards/

This a screen shot of a memo sent out by CEA. Note: help re-post, re-tweet, echo a message, ensure you are part of the echo chamber. The Alliance appears to have also utilized this tactic to rally support for TransCanadas Keystone XL pipeline, on-shore and off-shore drilling for oil/natural gas and oppose carbon tax.

Consumer Energy Alliances Echo Chamber is a strategy where any message created by that group or its supporters would be echoed across many different blogs and websites, creating the impression of a largescale movement. (http://www.salon.com/2011/12/15/big_oil_and_canada_thwarted_u_s_carbon_standards/)

Is the message being echoed or coordinated? What do you think?

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Gauging the Message Impact

Ok, almost done. How well is the industrys messaging working?

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The Natural Gas Industry has MONEY to spend on: Advertising Lobbying Campaign Donations Political Action Committees (PACs) Front Groups Trade Organizations

Fractivists have: PEOPLE

The Natural gas industry has money, plenty of it to spend on a variety efforts. Can fractivists compete dollar for dollar? No. Is the natural gas industry concerned about losing PR ground? Yes.

Fractivists have people.

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The Control Risks Group Limited is a subsidiary of Control Risks Holdings Limited, with headquarters in London, UK.

CRG describes itself as: ....an independent, global risk consultancy specializing in helping organizations manage political, integrity and security risks in complex and hostile environments. We support clients by providing strategic consultancy, expert analysis and in-depth investigations, handling sensitive political issues and providing practical on-the-ground protection and support.

Last year, a company called Control Risks issued a report about the GLOBAL anti-fracking movement.

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THE GLOBAL ANTI-FRACKING MOVEMENT - What it wants, how it operates and what s next

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Excerpt: As shown by local bans in the US and Canada, national moratoriums in France and Bulgaria, and tighter regulation in Australia and the UK, the global antifracking movement has mounted an effective campaign against the extraction of unconventional gas through hydraulic fracturing (fracking). Meanwhile, the oil and gas industry has largely failed to appreciate social and political risks, and has repeatedly been caught off guard by the sophistication, speed and influence of anti-fracking activists.

Key Areas to Target

Acknowledge Grievances Engaging Communities Reduce Impacts Create More Winners

Note the emphasis: Meanwhile, the oil and gas industry has largely failed to appreciate social and political risks, and has repeatedly been caught off guard by the sophistication, speed and influence of anti-fracking activists.

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Shale Gas Industry Insider: We Are Losing the Messaging War on Fracking Sep 13th, 2011 Excerpts: Today, she [Tisha Conoly-Schuller] explained, those opposed to hydraulic fracturing can no longer be characterized as environmental extremists because the movement has gone mainstream. The public is skeptical of anything we say, she said. The favorable perception of the oil and gas industry polls at seven percent thats lower than Congress. The public does not believe us. We need someone else delivering our message for us. reposition the industry to appeal more broadly to young people The issue is serious, but we shouldnt take ourselves so seriously. We need to become much more clever. Our industry is going to have to become hipper. In that respect, Conoly-Schuller said, industry executives and communicators are going to have to become well versed in the use of social media and online tools. People that like South Park are our audience, she said, and we need to figure out how to talk to them. We need to figure out what works and how to get it out to them.

From 2011. the industry recognizes fractivists are not environmental extremists and the movement has gone mainstream. Conoly-Schuller says the industry needs to become much more clever and suggests making natural gas hipper. She also thinks the industrys target audience are those who watch South Park. Note: become well versed in the use of social media. Not long after this conference, Facebook pages called ASK CHESAPEAKE and ASK CHIEF began to appear. (Chief being Chief Oil&Gas) Chesapeake has 4 such Facebook pages: ASK CHESAPEAKE

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Chesapeake has 4 such Facebook pages targeted to specific shale formations.

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Coloring Books

One failed attempt to engage the public was by handing out coloring books to children. Chesapeake Energy and Talisman Energy each published a coloring book. These seemed to disappear following Steve Colberts segment on Terry the Fracosaurus. (see: http://www.colbertnation.com/the-colbert-report-videos/391552/july11-2011/anti-frack-attack).

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The shale gas industry has had its collective ass kicked, and kicked hard, by Gasland and others opposed to hydraulic fracturing and needs to redefine its core messages to defuse a burgeoning negative public perception of the controversial drilling technique, the President and Chief Executive Officer of the Colorado Oil & Gas Association (COGA) said today. ~ September 2011 - http://www.naturalgaswatch.org/?p=939

They also tried making their own movies.

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Marcellusmoney.org

In Pennsylvania, the industry has spent $23 million on elected officials from 2000-2012

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http://www.opensecrets.org/lobby/indusclient.php?id=E01

On the national stage, Oil&Gas spent over $139 million on lobbying for 2012 alone

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2012 Top 10 Oil & Gas lobbying spenders Federal level

http://www.opensecrets.org/lobby/indusclient.php?id=E01

Top spenders for 2012. So targeting south park viewers, producing rebuttal movies, coloring books, lobbying and campaign donations arent working very well. Why?

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#1: WHAT THE ANTI-FRACKING MOVEMENT WANTS

A better deal Parts of the anti-fracking movement are not opposed to hydraulic fracturing per se, but want to extract a better deal from the industry in terms of economic opportunity, taxation, and compensation.

Back to the Control Risks report. The industry is under the impression the anti-fracking movement is driven by money.

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Control Risks missed the boat on that. The predominated driving force is not money, its concern about what the industry is doing to our air, water, land and how it is impacting our health and our communities. The industry fails to understand these concerns transcends money, because after all you cant drink natural gas.

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Recommended Reading

Trust Us, Were Experts by Sheldon Rampton and John Stauber Drill Baby Drill: Can Unconventional Fuels Usher in a New Era of Energy Independence? by J. David Hughes Shale & Wall Street: Was the Decline in Natural Gas Orchestrated? by Deborah Rogers Fracking Pennsylvania: Flirting with Disaster by Walter Brasch No Fracking Way: A blog for New York and Pennsylvania (blog.shaleshockmedia.org/)

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