Drilling Companies Cheating Landowners and Government Out of Royalty Payments

See on Scoop.itGreen & Sustainable News

Don Feusner ran dairy cattle on his 370-acre slice of northern Pennsylvania until he could no longer turn a profit by farming.

Duane Tilden‘s insight:

>Like every landowner who signs a lease agreement to allow a drilling company to take resources off his land, Feusner is owed a cut of what is produced, called a royalty.

In 1982, in a landmark effort to keep people from being fleeced by the oil industry, the federal government passed a law establishing that royalty payments to landowners would be no less than 12.5 percent of the oil and gas sales from their leases.

From Pennsylvania to North Dakota, a powerful argument for allowing extensive new drilling has been that royalty payments would enrich local landowners, lifting the economies of heartland and rural America. The boom was also supposed to fill the government’s coffers, since roughly 30 percent of the nation’s drilling takes place on federal land.

Over the last decade, an untold number of leases were signed, and hundreds of thousands of wells have been sunk into new energy deposits across the country.

But manipulation of costs and other data by oil companies is keeping billions of dollars in royalties out of the hands of private and government landholders, an investigation by ProPublica has found.

An analysis of lease agreements, government documents and thousands of pages of court records shows that such underpayments are widespread. Thousands of landowners like Feusner are receiving far less than they expected based on the sales value of gas or oil produced on their property. In some cases, they are being paid virtually nothing at all.

In many cases, lawyers and auditors who specialize in production accounting tell ProPublica energy companies are using complex accounting and business arrangements to skim profits off the sale of resources and increase the expenses charged to landowners.<

See on insideclimatenews.org

MHI Completes Acquisition of Pratt & Whitney Power Systems

See on Scoop.itGreen Energy Technologies & Development

Tokyo, May 20, 2013 – Mitsubishi Heavy Industries, Ltd. (MHI) has completed its acquisition of Pratt & Whitney Power Systems, the small and medium-size gas turbine business unit of Pratt & Whitney (P&W), an aeroengine manufacturer.

Duane Tilden‘s insight:

>MHI has traditionally focused its gas turbine business on large-capacity, high-efficiency systems. With the addition of PWPS’s small and medium-size aero-derivative engines, MHI has expanded its power generation product portfolio and is able to offer customers a full product lineup.

PWPS’s aero-derivative gas turbines are highly acclaimed, especially for their emergency power generation applications, compact design, and rapid start-up time. More than 1,700 aero-derivative turbines have been delivered worldwide. Significant growth is anticipated in applications that require a flexible power source complementary to a renewable-energy power source. Robust market demand is also expected as small power sources for applications in emerging markets. PWPS’s main product has been the 30MW (megawatt) class machine. The company is developing an innovative 60MW class model, which is expected to significantly boost PWPS’s market share.

Turboden’s ORC turbines have the capability to generate power or supply hot water using a relatively low-temperature heat source such as biomass, factory waste heat or geothermal energy. The company has sold more than 300 units in 20 countries, primarily in Europe. In Japan, increasing opportunities are emerging to use ORC technology in biomass and geothermal applications, and MHI plans to significantly increase sales in those expanding markets.

MHI and P&W have been in a collaborative relationship in aeroengine production for many years. After the acquisition of PWPS, MHI will continue to collaborate with P&W in the supply of engine parts for gas turbines and development of new machines.<

See on www.mhi.co.jp

Hot Rocks: Canada Sits Atop Massive Geothermal Resource – Renewable Energy

See on Scoop.itGreen & Sustainable News

September 2011 Report by the Geological Survey of Canada suggests 100 projects could provide much of the country’s power needs…

Duane Tilden‘s insight:

“Canada’s in-place geothermal power exceeds one million times Canada’s current electrical consumption,” the report notes, though also stating most of that available power could not actually be produced. “Environmental impacts of geothermal development are relatively minor compared to other energy developments, however there are still key issues to be addressed….Geothermal installations have the potential to displace other more costly and environmentally damaging technologies.”

There is at least 5000 megawatts of available geothermal power in various parts of British Columbia, Alberta, and the Yukon. What’s more, the report’s authors write, the cost of delivering geothermal power is expected to rival the costs of coal within 15 years or so. The limitations of developing the huge geothermal resource have a lot to do with location: Some of the most promising areas are far away from load centers, and the costs of developing huge transmission corridors to bring the power to where it is needed would make such projects unfeasible. Still, there is enough located in accessible areas to make a big difference.

See on spectrum.ieee.org

Lockheed Martin Pioneers Ocean Thermal Energy in China – Engineers

See on Scoop.itGreen Energy Technologies & Development

A 10-megawatt ocean thermal energy conversion plant is under way

Duane Tilden‘s insight:

>[…] the company has been working on OTEC since the 1970s, and the technology hasn’t changed drastically since then. OTEC systems make use of the temperature differential in tropical areas between warm surface water and cold deep water. In most systems, ammonia, which has a very low boiling point, passes through a heat exchanger containing the warm water. The ammonia is vaporized and used to turn a turbine, and then it’s cycled past the cold water to recondense. This is a renewable energy technology with the rare capacity to supply base-load power, as water temperatures are fairly stable.

The ammonia passes through a closed loop, while the water comes and goes through massive pipes. The project in China may pump cold water up from a depth of about 1000 meters, using a pipe that’s 4 meters across. Varley says that some of the infrastructure can be borrowed from the offshore drilling industry: “We showed them our requirements for the platform, and they yawned and said, ‘Is that all you got?’ ” he says. “But then we showed them the pipe.” Attaching the massive pipe to a relatively small floating platform creates unusual stresses, Varley says. Lockheed also had to find materials for the pipes and the heat exchangers that could withstand the harsh marine environment.<

See on spectrum.ieee.org

Debunking the Renewables “Disinformation Campaign”

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Misleading coverage fuels policy uncertainty and doubt, reducing investment security and industry development. Disinformation hurts the industry and retards its—and our nation’s—progress

Duane Tilden‘s insight:

The Fox Business example is not a singular incident. Some mainstream media around the world have a tendency to publish misinformed or, worse, systematically and falsely negative stories about renewable energy. Some of those stories’ misinformation looks innocent, due to careless reporting, sloppy fact checking, and perpetuation of old myths. But other coverage walks, or crosses, the dangerous line of a disinformation campaign—a persistent pattern of coverage meant to undermine renewables’ strong market reality. This has become common enough in mainstream media that some researchers have focused their attention on this balance of accurate and positive coverage vs. inaccurate and negative coverage.

Tim Holmes, researcher for the U.K.’s Public Interest Research Centre (PIRC), points out press coverage is important because it can influence not only “what people perceive and believe” but also “what politicians think they believe.” […]

The disinformation campaign about job creation is not limited to Europe. A Cato Institute article claimed that if people believe a commitment to renewables will fuel job growth “we’re in a lot of trouble.” Yet in 2012 alone, more than 110,000 new U.S. clean-energy direct jobs were created, and in 2010, the U.S. had more jobs in the “clean economy” than in the fossil-fuel industries. The Bureau of Labor Statistics reportsthat direct employment in May 2012 totaled 181,580 for oil and gas extraction, 87,520 for coal mining, and 93,200 for iron and steel production. BLS doesn’t similarly classify solar or wind jobs, but reputable analysts have determined from bottom-up industry surveys that in September 2012, for example, the U.S. had 119,016 direct solar jobs (89 percent full-time, the rest at least half-time), up 27 percent in two years—more than in steel-making or coal-mining. Had you heard that before? Why not?

THE COST OF DISINFORMATION

The sad truth is that the debate on clean and renewable energy is unbalanced, and seldom by accident. The CCGroup’s study showed that only 10 percent of articles focusing on renewables even contained comment from a spokesperson from the renewable energy industry. This violates basic journalistic standards. Renewables must be a part of their own conversation. Much of the conversation on renewables is misinformed and misrepresented. And when bad news does happen, says ACORE president and retired U.S. Navy Vice Admiral Dennis McGinn, opponents of renewables are pushing it “as if it’s the only news. They are dominating the conversation through misrepresentation, exaggeration, distraction, and millions of dollars in lobbying and advertising.”<

See on blog.rmi.org

Creating Value: Energy Retrofits for Buildings

See on Scoop.itGreen & Sustainable News

Buildings in the U.S. consume[…] 42 percent of the nation’s primary energy and 72 percent of its electricity. Much of that energy is needlessly wasted through inefficient design and operation.

Duane Tilden‘s insight:

>Rather than examine energy costs in isolation, our approach assesses how energy and sustainability improvements add value to all parts of a property or company. This approach is not revolutionary, but rather more comprehensive, applying industry-accepted valuation methods to the full set of retrofit value contributions, including saved energy costs, health and productivity benefits, reputation and leadership, and risk reduction.

Energy investment (and resultant property outcomes) should be treated as one of many factors that influence value, including location, tenant mix, quality of design, and more. Evaluating retrofits within the broader context of property/company value enables a logical, defensible calculation and assessment of a deep retrofit’s relative contribution to value. Previous attempts to value energy retrofits have ignored retrofits’ value contributions and overlooked standard approaches to valuing properties and companies.<

See on www.rmi.org

Jobs for the Future: Energy Efficiency creates Employment — ECEEE

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Energy efficiency initiatives create jobs, and normally very good jobs.  Recent analysis shows that between 17 and 19 net jobs can be created for every million euros spent.

Duane Tilden‘s insight:

>Jobs to improve energy efficiency in all end-use sectors are of high value.  Many require technical qualifications, such as engineering or architectural degrees.  Many require re-training from existing jobs. There will be a demand for financial specialists, construction engineers, behaviour specialists, project managers, auditors, data base managers, policy analysts and the like.  And these jobs are available to all, regardless of age or gender.

The hard work of creating these jobs begins once the Directive is finally approved.  The long-term policy framework needs to be in place and the funding and implementation strategy need to be well developed. But in the longer term, opportunity is knocking at the door, and it deserves a welcome mat.<

See on www.eceee.org

UK offers Big Tax Breaks for Shale Gas Fracking

See on Scoop.itGreen & Sustainable News

Chancellor George Osborne has said that the Treasury will go ahead with the most generous tax regime for shale gas in the world.

Duane Tilden‘s insight:

>In the North Sea oil and gas exploration has received tax breaks along the same lines. This has brought about a renewed interest in this field, which is both technically very difficult and rather expensive. The tax allowance will see a huge relief for fracking, with a portion of each production sites income taxation going to a level of 30% in place of the 62% currently levied.

The British Geological Society has said that shale gas in northern England alone could be as high as 1,300 trillion cubic feet and just 10% of that would meet Britain’s needs for more than 40 years.

Water UK, a representative of Britain’s biggest water suppliers has voiced fears that large quantities of water needed for fracking would stretch water supplies very thinly in the areas earmarked for fracking sites, and there is a concern of contamination of water supplies with chemical waste and methane gas. Water UK said that damage could be done to the existing water pipe infrastructure with resultant shortages for home and business use.

Fracking companies say that lengthy waiting periods for environmental permission to begin fracking are a major concern, and Ministers have said they will endeavour to minimise the waiting period from over three months to under two weeks. Public support for shale gas exploration is low.<

See on www.pcmswitch.co.uk

UK Energy Minister defends fracking comments

See on Scoop.itGreen & Sustainable News

Energy minister Michael Fallon defends comments about fracking, in which he appeared to suggest the process would affect those living near drilling sites.

Duane Tilden‘s insight:

>Mr Fallon said fracking would only be allowed if “absolutely safe”.

In an exchange with the BBC Mr Fallon confirmed he had made the remarks but said the newspaper report had “completely misconstrued a light hearted remark”.

He said “no fracking will be allowed in the Weald unless it is absolutely safe and the environment is fully protected”.

[…]

But demonstrators from across the UK have gathered in the area saying they fear test drilling could lead to the search for shale gas and fracking at the site.

In a separate development, Cuadrilla chief executive Francis Egan revealed he had received an anonymous email saying the company would receive “pipe bombs delivered by express mail to its premises” unless the company ceased its activities in the UK.

“Fracking kills and so do we,” the message said.<

See on www.bbc.co.uk

A Republican Case for Climate Action

See on Scoop.itGreen & Sustainable News

By WILLIAM D. RUCKELSHAUS, LEE M. THOMAS, WILLIAM K. REILLY and CHRISTINE TODD WHITMAN Published: August 1, 2013The United States must move now on substantive steps to curb climate change, at home and internationally.

Duane Tilden‘s insight:

>Mr. Obama’s plan is just a start. More will be required. But we must continue efforts to reduce the climate-altering pollutants that threaten our planet. The only uncertainty about our warming world is how bad the changes will get, and how soon. What is most clear is that there is no time to waste.<

See on www.nytimes.com