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Oil Trade’s Image Is how petroleum and coal affect the environment Tarnished In Louisiana, Green Activist Says

Oil and gas operators have lost their luster in Louisiana, Lafayette resident Mike Stagg, a civic activist and organizer with the grassroots Inexperienced Army group, stated in New Orleans this month. Earlier than the oil growth went bust within the 1980s, the industry was considered benevolent as a result of its severance taxes paid for Louisiana’s roads, bridges and hospitals. “And earlier than the BP spill, oil firms had been seen as benign because nothing really bad had occurred right here,” he stated at First Unitarian Universalist Church on South Claiborne Avenue on Aug. 19. His topic was “Oil and Water Do not Combine.”

Stagg referred to as Louisiana a “petro-colonial state,” exploited by oil and gas companies since the first effectively was drilled in Evangeline close to Jennings in 1901. Operators from Texas and Oklahoma have been notably aggressive. “Do what you want to do has been Louisiana’s oilfield ethic,” he mentioned. “The industry owns the state legislature and has been protected by it.” Louisiana’s severance tax on oil was implemented in 1910. But twenty years ago, the state partly exempted oil and gasoline extracted from land wells, together with fracking operations, from these taxes.

In northwest Louisiana, “Haynesville has been probably the most protected shale trend within the country,” Stagg mentioned. And at this juncture, oil extraction from the Tuscaloosa Marine Shale or TMS deposit, working from central Louisiana into St. Tammany Parish and southwest Mississippi, is rising.

Severance taxes are rooted in the concept of “the commons,” assets together with air, water and ecosystems which can be shared by all residents, Stagg mentioned. When public mineral resources are converted to private wealth, Louisiana residents collect a share of it by way of severance taxes. However since 1994, new wells on land have been exempt from state severance taxes for up to 2 years or till a nicely is paid for–whichever is first.

“With these exemptions, the incentive is to drill shortly, pull out and pay no taxes,” Stagg said. Because of its policies, Louisiana has pocketed little in severance dollars from sizable Haynesville fuel extraction. In its “Tax Exemption Price range 2013-2014,” launched late final 12 months, the state’s Department of Revenue estimated that Louisiana lost nearly $250 million in severance taxes from horizontal drilling over five years–the three previous years, the present one and the coming 12 how petroleum and coal affect the environment months. The report covers a period of substantial drilling in the Haynesville play. Lost revenue from severance tax exemptions for all oil and gasoline activities within the five-year span was estimated at $482 million.

State regulation requires that revenues lost to tax exemptions be tallied, Stagg famous. And he stated Louisiana wants the money forfeited to severance-tax exemptions. For one thing, “the state has a very nice, $50 billion coastal grasp plan however would not have the cash to pay for it,” he mentioned.

Stagg stated one difference between as we speak’s TMS operations and current Haynesville activity is that TMS drillers are going after oil as it hovers round $100 a barrel, and are flaring off low cost natural gasoline. Partly due to formidable Haynesville extraction, pure fuel prices had been hammered from 2008 to 2012 and remain weak. In the Haynesville play, 2,seven-hundred wells have been drilled to this point, and TMS operators would possibly drill much more wells than that, Stagg mentioned. “If the Helis Oil software in St. Tammany is accredited, it will likely be ten wells, not only one, on 60,000 acres,” he stated. “And if Helis is allowed to drill, you’ll see an enormous flare-off of natural fuel,” affecting air in that parish.

Plans to drill in St. Tammany by New Orleans-based Helis Oil & Gasoline Co. are in limbo, nonetheless. On Aug. 5, the U.S. Military Corps of Engineers mentioned the company ‘s software to drill close to Mandeville wasn’t valid, based on issues from the Louisiana Geological Survey–which assists the Corps. Helis should prove to authorities that its site can be able to produce oil. The firm can submit new permit applications to the Corps and the state’s Department of Environmental Quality.

In the meantime, the state’s Workplace of Conservation, a part of the Department of Natural Assets, announced on Aug. 29 that the 960-acre production unit Helis sought close to Mandeville was permitted. The unit’s authorization is required to find out mineral royalties however isn’t an approval for drilling.

St. Tammany residents and politicians needed to study fracking in a hurry this spring and summer. “The incestuous relationship between industry and the arms of Louisiana’s government came as a shock to St. Tammany residents,” Stagg stated. The parish has the highest incomes and is one of the educated in the state. “However they didn’t know that Louisiana government provides trade what it desires,” he mentioned.

At one time, St. Tammany was thought-about a retreat, Stagg famous. “Folks moved there for clear air and water,” he said. “But both may very well be jeopardized if Helis drills.” Helis desires to drill by the Southern Hills Aquifer that provides St. Tammany’s drinking water. “St. Tammany wasn’t a hotbed of radicals before but it is now,” Stagg said.

Stagg weighed in on a lawsuit filed a 12 months in the past by the Southeast Louisiana Flood Protection Authority-East, also called the brand new Orleans East Financial institution levee board, towards 97 oil and gas companies to make them fill canals they dug in wetlands. Louisiana Senate Bill 469 to block the go well with just barely handed in June although the Louisiana Oil & Fuel Association had accomplished quite a lot of lobbying for it, Stagg said. On June 6, Governor Bobby Jindal signed SB 469 into regulation, barring the levee district from urgent its go well with in opposition to oil and gas operators for harming land that had protected New Orleans from storms.

Stagg said large oil companies would have been in a position to cope with the levee board lawsuit but smaller operators opposed it. “The little guys represented by the Louisiana Oil & Gasoline Association don’t desire it,” he mentioned.

Stagg mentioned the Gulf offshore drilling moratorium imposed by the feds in 2010 in response to the BP spill. He stated a handful of Louisiana State University professors, whom he known as “shills for LOGA,” forecast gloom and doom and substantial job losses from the ban. Because it turned out, the professors–three economists and a finance professional–have been too pessimistic. Predictions of layoffs proved to be mistaken as oil corporations held onto skilled staff in the course of the almost six-month drill ban. When 2010 ended, the state’s jobs had grown, and the oil patch’s unemployment–which was relatively low in late 2009–had fallen further.

Soon after the 2010 moratorium was imposed, a lawsuit was filed by marine firms that served offshore oil and needed the drilling ban to finish, Stagg noted. Thirty-seven firms joined Hornbeck Offshore in Covington, La. in an anti-drilling-moratorium go well with that looked like a mass revolt. However of those 37 companies, greater than half were managed by vessel builders Bollinger Shipyards in Lockport, La. and the remainder by the house owners of Edison Chouest Offshore in Reduce Off, La.

Stagg is writing a book, which ought to be printed next yr, about the Gulf Coast’s marketing campaign against the U.S. Department of Inside’s 2010 drilling ban.

As for Louisiana, it does not have two or more political parties like different states, based on Stagg. “We’ve got one huge occasion, the Oil how petroleum and coal affect the environment Occasion,” he said. “The business has veto energy over the choice of the secretary of the Division of Pure Sources, and the Department of Environmental Quality lives on the business’s charges.” If Louisiana needs to see progress on coastal points, the oil and gas industry’s political grip have to be broken, he mentioned.

Stagg’s lecture Tuesday kicked off a collection of talks to be held at First Unitarian Universalist Church on the state’s coast and atmosphere. Sandra Slifer, president of the League of Ladies Voters of Louisiana, will discuss fracking threats in St. Tammany at 5:30 p.m.

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