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"Clean coal" leaves a big mess; which faceless employee, manager or shareholder committed this tort?

December 26th, 2008 3 comments

Yes, I’m referring to the bursting of the TVA holding dam in Kingston, TN a few days ago, leaving a Christmas Eve present of millions of cubic feet of wet fly ash several feet deep over hundreds of acres downstream, including now valueless private homes and property, and flowing into the Clinch River and Tennessee, where fish kills have been reported.  A video from a helicopter fly-over here; local coverage is here

Enviros and the press were fairly quick to point out that the federal government has declined, under industry pressure, to more strictly regulate the disposal of fly ash (replete with heavy metals and arsenic, and which has been captured in increasing amounts as clean air regulation requires greater “scrubbing” from power plant emissions) – but I’d like to make the point that this is the kind of faceless tort that we get from limited liability corporations, including federally-owned ones like the TVA , where shareholders have little interest and zero practical ability to monitor the risks created by the corporation. 

Further, this type of rent-seeking and money-influenced political balancing is
par for the course, and is a natural outcome of the replacement of the pro-industry, “pollute for free” era with the “government regulates industry” era that Walter Block speaks of
.

Limited liability:  a gift of the state that keeps on giving!

 

Bush’s Advent message on Appalachian coal: "Every valley shall be raised up, every mountain and hill made low"

December 8th, 2008 No comments

Just in time for last Sunday’s readings at Advent liturgies of Isaiah 40:4, on December 2 the White House and EPA approved the final issuance by the Department of the Interior of industry-backed changes in the 25-year-old stream “buffer zone” rule.  The revised rule, which the NYT describes as one of “the most contentious of all the regulations emerging from the White House in President Bush’s last weeks in office”, will make it much easier for coal companies to fill in streams and valleys with the rock and dirt produced by mountaintop removal mining operations.  As I described in an earlier post, these mining practices create direct physical effects on nearby communities, and produce extensive and long-lasting alterations to streamflows and aquatic life, leaching of heavy metals into streams and wells and leave behind dangerous leach ponds.  

It is clear from a review of the proceedings that the decisions of the DOI and EPA were based on the premise that mountaintop removal mining would proceed, with stream buffers not being required if the alternative to stream and valley fill were not economically practicable.  Largely because of the damage such mountaintop removal and fill operations have been proven to do to the interests of local and state residents in stream and groundwater quality and flows, the changes were strongly opposed by the public and by the governors of Kentucky and Tennessee.

Nobody seems to have swallowed the rather Orwellian announcement by the DOI’s Office of Surface Mining Reclamation and Enforcement that the new rule will “tighten” restrictions on excess spoil, coal mine waste, and mining activities in or near streams – least of all the coal firms, who praised the new rule!

One wonders if in all the litigation over federal rules, residents who bear the impacts of mountaintop mining have considered bringing direct claims against the mining firms for damage under the common law – as opposed to struggling over the substance of federal and state regulations and whether regulators and prosecutors will try to enforce them.

While I noted this issue last week, I was gently reminded of President Bush’s Christmas gift to the coal companies by the perversely coincidental appropriateness of a church reading on Sunday (the second Sunday of Advent) of Isaiah 40:4:

Every valley shall be raised up,
every mountain and hill made low;
the rough ground shall become level,
the rugged places a plain.

Bush and the coal companies are doing God’s work!

Breaking the impasse on ANWR and OCS exploration and development Part II; a response to Bob Murphy

July 29th, 2008 No comments

On the main Mises blog, Bob Murphy has just advocated opening ANWR and the OCS to oil and natural gas exploration and development, for the purpose of providing “rapid relief at the pump”.  As my comment has been held up – it only had two links for Pete’s sake! – I’ve decided to post a back-up copy here.

My comment (with minor tweaks) follows:

Bob, I agree generally with your analysis, but you really fail to address or answer the question of WHY the government should open up ANWR or the OCS – you state that the best reason to do so is because opening up more federal lands for drilling will “alter current behavior, leading to rapid relief at the pump.”

Interesting, but unexamined.  Is it the government’s job to open up lands that political decisions, on the basis of competing values, have kept off the market, simply to provide relief to the complaining parts of the market (fuel users)?  If so, should the government also open up the SPR whenever markets climb and users complain?  Are there other markets that the government should also try to manage for the benefit of consumers?  And how do we choose between what markets and market segments to listen to – what happens if, say, environmental demands rise suddenly after an oil spill – should the government then rapidly move producing areas off lease and into reserves?

You also conclusorily state that it is an “absurd situation where 94 percent of federal land, and 97 percent of federal offshore waters, are not being leased by energy companies.”  How is it that you have the wisdom to know how much and where the unidentified oil and gas resources lie, so you know what percentage of federal lands SHOULD be under an energy company lease?  And what about the small consideration of other values for the land in question – have you decided that energy trumps all?

Finally you conclude that “the ideal solution would be to completely privatize federal lands, so that the decision of whether or not to drill would no longer be a political one.”  As my initial questions to you may indicate, I actually agree with you on this, but the reason for privatization is NOT to provide relief to consumers and other users at the pump, but in order to end incompetent and politicized and sometimes logjammed federal management, while improving management of both environmental and other resource values.

Not only have I done a more thorough job of explaining WHY the feds and our Congresscritters ought to open up ANWR and the OCS, I’ve also explained HOW we can move past the existing deadlock – in a proposal I laid out last week in my blog here:  “Breaking the senseless impasse on ANWR and OCS exploration and development – a tax and rebate proposal”.

A deal on OCS seems easier to do than ANWR, because all that is needed to get the coastal states to agree is greater revenue-sharing with the states.

An ANWR deal should happen just out of fairness to the Inuit who own some land that is now bottled up in ANWR. [If they were given fee simple, then they could start drilling immediately, and while they’d have a right to access and transport across the wildlife reserve, they’d carry the liability for all environmental damage.  Sitting on ANWR makes it more likely that environmentally riskier OCS exploration and development in the Arctic Ocean will proceeed.]

By the way, has it ever occurred to you to wonder how much COAL leasing would occur if private parties and not the federal (and state) government owned the Western lands on which production is occurring?  With all of the royalties flowing into the coffers of federal and state governments?

Or to wonder how much extremely destructive coal production would occur in West Virgina and the rest of the Appalachians, if the governments were not being paid tremendous sums to turn a blind eye and to deny justice to those who are suffering all of the costs of the ongoing violation of private health and property rights and the transfer of costs and risks?  I addressed some of those issues here:  Almost levelled, West Virginia: Crooked justice allows mountain-top removal practices to freely injure homes and health“.

Regards,

Tom

As I noted on my related post, enviros should move on ANWR because they can get a better deal – on federal resource management generally, and even on climate change – than by sitting pat.  And Austrians and others ought to support both such movement, and the type of changes in federal resource management that I’ve outlined.

Peabody Coal is VERY concerned about how Jim Hansen is "cheapening the dialogue"

June 28th, 2008 No comments

In response to Jim Hansen’s recent expressed desire for “public trials” for fossil fuel executives if, despite being “aware of long-term consequences of continued business as usual,” they continue their “campaigns” “to spread doubt about global warming” in order to “blocked [the] transition to our renewable energy future”, Andy Revkin of the The New York Times has received and posted on the NYT’s “Dot Earth” blog a note from Vic Svec of Peabody Energy, which Revkin notes is the largest private coal producer in the world.

Vic Svec’s note at “Dot Earth” is here.

In response, I posted a few comments to Mr. Svec on the Dot Earth blog thread, which I copy below [with some links added]:

Vic Svec
Senior Vice President, Investor Relations and Corporate Communications
Peabody Energy
(314) 342-7768
[email protected]

Dear Vic:

Nice try with your letter addressing Jim Hansen’s criticism of fossil fuel firms such as yours.

1.  You say that Hansen’s “Holocaust analogies [are] outrageous and demeaning.”

Hansen’s latest criticism of coal and oil firms contains ZERO Holocaust analogies.  So who is it who prefers not to address his actual remarks, but to “cheapen the dialogue and invite ridicule”?

Yes, Hansen did warn last year that rapid climate change may very well threaten the extinction of many species – a claim supported by many prominent biologists – and in that context said that further increases in coal plants could in effect be “death trains … loaded with uncountable irreplaceable species”.  http://www.columbia.edu/~jeh1/2007/IowaCoal_20071105.pdf.  You obviously don’t like his rhetoric, but do you care to explain why either his facts or his imagery are wrong?

2.  “The suggestion that a dissemination of ideas be criminalized –- coming from a government employee no less –- does hearken back to World War II.”

First, what was that you just said about cheapening debate?

Second, Hansen has not said that the speech of any fossil fuel executives should be restricted or criminalized.  Rather, he is making a stronger version of the argument that the British Royal Academy made last year to Exxon, when it sought to clarify if Exxon was going to continue to provide support to groups that deny what EXXON itself has conceded: that human GHG emissions present sufficient worry for public policy action now.

Like Exxon, your firm has publicly acknowledged that concerns about climate change are legitimate and, indeed, that massive investments are needed in new infrastructure to ensure that coal is burned more cleanly and that CCS (carbon capture and storage) technologies are employed (as you note in the projects listed in your item 4).  The only real differences between your firm’s position and Hansen’s is that you think that the government should subsidize your change in business model by (a) having Uncle Sam pay the bulk of capital costs for IGCC (integrated gas combined cycle plant) [something like $1 billion for the first one with CCS] and (b) giving you a further break (reduced royalties) on the sweet deals you already have for stripping coal from public lands, while Hansen proposes a carbon tax (rebated to citizens) to motivate changes in demand and a moratorium on new coal plants until CCS is in place.

While Peabody has every right to conduct its business as it sees fit, so does Hansen have the right to hope that fossil fuel firms will be called to public account for the years of delay that they have purchased, not by openly arguing with the science, but by back door channels/contributions and third-party proxies – tactical activities that are hardly subject to dispute.  THAT, and not open disputes on science or policy, is what Hansen is criticizing.

3.  “Blaming big oil and big coal for the broad array of opinions about climate change is disingenuous.”

Is that at all what Hansen has done, or do you just find strawmen to be irresistible?

“If he would imprison those who don’t march in lockstep with his views, the jails would be very, very big.”

Ahh, here we go with more cheap and shameful metaphors of the very type that you yourself decry, plus another great strawman.  Hansen hasn’t suggested jailing anyone who disagrees with him, as I previously noted.  He’s just castigating the fossil fuel firms for what is rather pedestrian (and undeniable) in the modern world – that powerful economic interests have no qualms about ignoring public and common interests for the sake of private gain, or about employing whatever tool they can to influence government action via both politicians and public opinion.  Hansen, whose views on science you conspicuously refuse to address, is now obviously trying to play the same game of influencing political discourse by putting pressure on you.  As a scientist, Hansen obviously has only a political bark and no formal bite.

Your aim now is simply to discredit the barker, the better to get government subsidies, cheaper coal from the government by lowering royalties, and to continue commercial activities that shift the costs and risks of GHG emissions to others and to the future.  That, of course, is the “serious work” for which Peabody employs you as SVP of Investor Relations and Corporate Communications.

As for the “thousands of scientists and university professors” who have opinions that differ from Hansen’s, I’ll wager that, like Exxon, your scientists tend to agree with Dr. Hansen and that your only connection with any of the other thousands is via funding for PR efforts.  Maybe you could clarify this?

Thanks so much for your sound bites.

Almost levelled, West Virginia: Crooked justice allows mountain-top removal practices to freely injure homes and health

March 3rd, 2008 3 comments

… with the federal government, state and union all firmly
in the pocket of coal firms.

This seems to be a classic case, on a huge scale, of the difficulties individual property owners and communities face when confronting clearly wrongful acts by large
corporations with deep pockets
– and how easily our
governments and courts are suborned from their duties to enforce property rights or other
laws protecting lives, health and property.

The influence and corruption goes all the way up, as this discussion of recusals and non-recusals by W. Va. Supreme Court  justices illustrates: 

http://gristmill.grist.org/story/2008/2/20/11531/8589

[Note: desnarked in light of fair comment.]

 

Background:

Here is a partial list  – just scratching the surface – of resources on this topic:

 

http://en.wikipedia.org/wiki/Mountaintop_removal_mining

http://encyclopedia.thefreedictionary.com/Mountaintop+removal+mining

 

http://news.yahoo.com/s/thenation/20080219/cm_thenation/769287429

http://www.nytimes.com/2007/08/23/us/23coal.html?ex=1345521600&en=3d104863e0d4d655&ei=5088&partner=rssnyt&emc=rss

http://www.washingtonpost.com/wp-dyn/articles/A6462-2004Aug16.html

http://www.earthjustice.org/news/press/007/mountaintop-removal-mining-permits-illegal.html

 

http://www.ilovemountains.org/ – this site has great Google Earth links 

http://googleblog.blogspot.com/2008/02/you-are-connected-to-mountaintop.html

http://www.700mountains.org/

 

http://www.kftc.org/our-work/canary-project/campaigns/mtr/MTR-generalinfo

http://www.ohvec.org/galleries/mountaintop_removal/007/

http://www.stopmountaintopremoval.org/

http://www.mountainjusticesummer.org/facts/steps.php

 

http://gristmill.grist.org/story/2007/8/21/11552/5722

http://gristmill.grist.org/story/2006/2/16/142954/768

http://grist.org/news/maindish/2006/02/16/reece/index.html

http://grist.org/news/maindish/2006/02/16/caskey/index.html#spadaro

http://grist.org/news/daily/2000/10/18/top/index.html

 

http://www.appvoices.org/index.php?/site/mtr_overview/

http://www.christiansforthemountains.org/

 

Multimedia

http://www.youtube.com/watch?v=I7Zb3Tb0oSM

http://www.blackdiamondsmovie.com/Trailer.html

http://www.youtube.com/watch?v=RPixjCneseE

http://www.vbs.tv/player.php?bctid=494918454&bccl=NDEzMjk4MjU0X19ORVdT

http://www.youtube.com/watch?v=GZoQ5Gw0r7Q&feature=user

http://www.hawriverfilms.com/id2.html

http://www.youtube.com/results?search_query=%22Mountain+Top+Removal%22+&search_type=

 

http://www.ilovemountains.org/multimedia

 

http://www.wvculture.org/history/buffcreek/buff1.html

http://www.ohvec.org/galleries/mountaintop_removal/007/