Big Oil in the United States This page intentionally left blank Big Oil in the United States Industry Influence on Institutions, Policy, and Politics Jerry A McBeath Copyright © 2016 by Jerry A McBeath All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, except for the inclusion of brief quotations in a review, without prior permission in writing from the publisher Library of Congress Cataloging-in-Publication Data Names: McBeath, Gerald A., author Title: Big oil in the United States : industry influence on institutions, policy, and politics / Jerry A McBeath Description: Santa Barbara, California : Praeger, [2016] | Includes bibliographical references and index Identifiers: LCCN 2016005285| ISBN 9781440837425 (hard copy : alk paper) | ISBN 9781440837432 (ebook) Subjects: LCSH: Petroleum industry and trade—Political aspects— United States | Gas industry—Political aspects—United States | Business and politics—United States | Big business—Political aspects—United States Classification: LCC HD9566 M397 2016 | DDC 338.2/7280973—dc23 LC record available at http://lccn.loc.gov/2016005285 ISBN: 978-1-4408-3742-5 EISBN: 978-1-4408-3743-2 20 19 18 17 16 1 2 3 4 5 This book is also available as an eBook Praeger An Imprint of ABC-CLIO, LLC ABC-CLIO, LLC 130 Cremona Drive, P.O Box 1911 Santa Barbara, California 93116-1911 www.abc-clio.com This book is printed on acid-free paper Manufactured in the United States of America For Jenifer, Bowen, and Rowena This page intentionally left blank Contents Acknowledgments ix 1 Introduction Onshore Oil and Gas Resource Development 15 Oil and Gas Development in the Outer Continental Shelf 47 Representing the Interests of Industry 73 Representing the Interests of the Land 109 How Institutions M atter: Oil and Gas Regulatory Regimes 145 National Energy Policies and Big Oil 183 8 Conclusion 213 Appendix: List of Respondents 227 Notes 237 Bibliography 277 Index 289 This page intentionally left blank Acknowledgments In April 2014, Jessica Gribble, Praeger’s acquisitions editor, asked if I might be interested in writing a book on the topic of big oil in the United States Set to retire in a few months a fter 44 years of college teaching, I thought a large research/writing project would be a nice transition Although I’d done research on Alaska oil and gas issues since 1980, there was much to learn about the other oil-and gas-producing states and national energy policy, so I viewed Jessica’s proposition as a welcome challenge Many helped me find good sources of information and the right people to talk to in the next year and a half B ecause for 30 some years I’d participated in the annual states’ budget roundtable at the Western Political Science Association, that’s where I turned first Helping me develop contacts in California w ere John Korey (emeritus professor, California State Polytechnic University, Pomona), Ted Lascher (professor of public policy and administration, Cal State University, Sacramento), and James Goldstene (previously the executive officer of the California Air Resources Board) In Colorado, Tom Cronin (president emeritus, Whitman College, and professor of American institutions and leadership at Colorado College) and Bruce Finley (writer for the Denver Post) shared their contacts and insights In Wyoming, Bob Schuhman (professor of public administration, state/local government and associate dean) introduced me to colleagues in economics and energy Robert Godby, associate professor, and Ben Cook, visiting assistant professor, both in economics and finance at the business school put me in touch with several oil and gas regulators Two professors at the University of New Mexico School of Law, Denise Fort and Alex Ritchie, facilitated my finding good respondents in their state 286 Bibliography Rothstein, Bo “Political Institutions: An 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campaign activity of industry in, 102–103; coordination of regulatory activities through DEC, 163; environmental NGOs, 120–121 (see also Northern Alaska Environmental Center); history of oil/gas development, 25–26; industry-government relationship, 178; land ownership, 25; Native communities, 138–139; trade associations, 80–81 (see also Alaska Oil and Gas Association) See also Exxon Valdez; Prudhoe Bay oil field; Trans-Alaska Pipeline System Alaska National Wildlife Refuge (ANWR), 120, 126, 138–139 Alaska Oil and Gas Association (AOGA), 80–81 Alaska Oil and Gas Conservation Commission, 43, 158, 175 Alaska Region (OCS), 51–53, 67; Drilling in Chukchi Sea, 68–71, 112; oil/gas reserves in the American Arctic, 67 Alaska Support Industry Alliance, 81 Alliance for Sustainable Colorado, 127 Alternate energy sources, 205–206, 225 Alyeska, 81 American burying beetle, 88, 250n47, 250n48 American Energy Alliance, 198 American Exploration & Production Council (AXPC), 78 American Legislative Exchange Council (ALEC), 197 American Petroleum Institute (API), 61, 73–76, 77, 188, 195, 196, 200–201 American Security and Clean Energy Act (passed U.S House only, 2009), 140 America’s Natural Gas Alliance (ANGA), 79 Anadarko, 5, 105 Applications for permits to drill (APDs), 125, 217 See also Bureau of Land Management Association of Oil Pipelines (AOPL), 78, 202 Atchafalaya Basinkeeper, 128, 129 Atlantic Region (OCS), 53, 67 Badlands Conservation Alliance (BCA), 129–130, 156 Baker Hughes, 13 290 Index Bakken formation, 19, 81, 82, 130, 154–155, 165–166, 200 Barnet formation, 21 Big Oil, 169, 172–173, 200, 238n12; areas of interest, 10, 11, 45, 57, 67, 192; definition, 4; legislative dominance, 218; limitation of influence, 216–217; position change of, 114, 196, 201; representation of, 75, 83, 84–85, 87–88 (see also individual state trade associations); tax benefits for, 205–206 See also Oil and gas Bingaman, Jeff, 224–225 Biofuels, 218 Blue states, 40, 41, 105, 224 See also Red States; Purple states BNSF, 201 British Petroleum (BP), 4, 35, 56–57 The Broken Branch: How Congress is Failing America and How to Get It Back on Track, 185 Bush (G.W.) administration, 32, 63, 204, 218 Business-government relations, 6, 178–180, 223–224 California: campaign activity of industry in, 104; coordination of regulatory activities, 158; department of conservation (DOC), 174; division of oil, gas, and geothermal resources (DOGGR) of DOC, 153–154, 158, 164; environmental NGOs, 255n25 (see also Los Padres ForestWatch); history of oil/gas development, 24, 39, 54, 58, 147–148, 260n8; industry-government relationship, 178; land ownership, 24; opposition to OCS development, 64; public advocacy organizations, 127; trade associations, 89–91 (see also Western States Petroleum Association; California Independent Petroleum Association; Independent Oil Producers Agency); water (and air) boards, regional, 90, 164 See also Santa Barbara oil spill, 1969 California Air Resources Board (CARB), 251n55 California Independent Petroleum Association (CIPA), 90–91 Californians against higher taxes, 104 the “capture” thesis, 11, 173–180; definition, 222; degrees of relationship (between government and industry), 178–180, 223–224; examples of, 59, 106, 156; ways to avoid capture, 176–178 See also Regulatory regimes Center for Biological Diversity (CBD), 111–112, 217 Center for Responsive Politics, 215 Center for Western Priorities (CWP), 193 Cheney, Dick, 204, 218 Chesapeake Energy, Chevron, 4, 50, 104 Childs, William R., 21, 32–33, 149–150 Citizens United, 101, 215 Clean Air Act (CAA), as amended, 29, 194, 197, 204 See also Prevention of Significant Deterioration Clean Power Plan (of Obama administration), 68, 196–199, 224–225 Clean Water Act (Federal Water Pollution Control Act of 1972, as amended [CWA]), 29, 30, 163, 204 Climate change: enforcement concerns, 198–199; as an issue, 68, 75, 90, 91, 115, 117, 167, 219; Paris summit, 14, 68, 197, 199; in recent campaigns, 140–141 Coal-bed methane (CBM), 22 Coastal Zone Management (CZM), 60 Coll, Steve, 8, 66 Colorado: campaign activity of industry in, 104–105; environmental NGOs, 122, 124 (see also Alliance for Sustainable Colorado; Conservation Colorado); history of oil/gas development, 22–23; industrygovernment relationship, 178; land ownership, 22; public advocacy organizations, 127 (see also Index Conservation Colorado); trade associations, 83–84, 191 (see also Colorado Oil & Gas Association; Colorado Petroleum Association) See also Task Force on State and Local Regulation of Oil and Gas Operations (Colorado) Colorado Department of Public Health and Environment (DPHE), 27, 171 Colorado Oil & Gas Association (COGA), 83–84, 170 Colorado Oil and Gas Conservation Commission, 122, 128, 153, 158, 160, 170, 171, 172, 177, 261n35 Colorado Petroleum Association (CPA), 84 Conflicts of interest, 176 See also Energy & Environment News the Congress, 11, 184–190, 267n5 Congressional Government, 186–187 ConocoPhillips, 4, 104, 123, 237n4 Conservation Colorado, 127–128 Conservation mandates, 43–44 Continental Resources, 35, 156 Corporate investment in “reserves,” 66–67 Corporate Social Responsibility (CSR), Corporatism, 168 Cronin, Thomas, 41; Childs, William R., 21, 32–33, 149–150 Crude-by-rail, 130, 200–202 See also Pipeline and Hazardous Materials Safety Administration Crude oil exports, 68, 86, 98, 208, 221, 274–275n112 Dakota Resource Council (DRC), 130–131 Dannreuther, Roland, Deepwater Horizon, 50, 128 Deregulation, Devon Energy, Diffusion: horizontal, 35–36; vertical, 32–34 See also Convergence Dine´ Care, 137 Disinvestment (from fossil fuels), 127 291 Divided government, 186–188 Downstream oil and gas firms, Drake, (Col.) Edwin, 17 Drilling (horizontal and vertical), 3, 89 Eagle Ford formation, 21, 35, 119 Earth Day, 55, 132 Earthjustice, 112–113, 195, 201–202 Earthquakes: Oklahoma, 36–37, 87, 88, 118, 131, 255n31; Texas, 96 See also Interstate Oil and Gas Compact Commission Earthworks, 122–123, 137 Economy (U.S.): GDP, 2015, 1; significance of oil/gas industry, 1–2, 14, 20, 21, 37–39, 51, 67–68 Elazar, Daniel, 41–42 Endangered Species Act of 1973, 30, 112 Energy: committees in Congress, 187; independence, 2; policies, 11, 203–208; security, 14 Energy & Environment News, 174–175 Energy Policy Act of 2005, 28, 62, 192, 204 Energy Security and Independence Act of 2007, 183 Engler, Robert, Enlightened self-interest, 213–214 Enron, 218 Environmental Defense Fund (EDF), 113–114, 175, 196, 200 Environmental disasters, 217 See also Santa Barbara oil spill, 1969; Exxon Valdez; Deepwater Horizon Environmental “diseases,” 141 Environmental impact statements (EIS), 241n52, 246n38 Environmental protests, 69, 123–124 Ethanol, 218 Exploration & Production (EP), 4, 77, 96 See also Majors; Big Oil; Upstream Exxon Valdez, 55–56 ExxonMobil, 4, 55, 66, 103, 114, 121, 140, 202 292 Index Fallin, Mary, Governor (Oklahoma), 169 Federal Energy Regulatory Commission (FERC), 78, 203 Federal Land Policy and Management Act of 1976 (FLPMA), 28 Federalism: coastal states in, 10, 63–65; “federal overreach,” 78, 96, 190–199, 219, 225; U.S pattern of, 28–30, 31–32, 224–226 Fiscal policy, 188, 206, 220; budgets in states of sample, 2, 208 Fish and Wildlife Conservation Act of 1934, as amended, 30 Food & Water Watch (FWW), 123 For-profit corporations, 214, 217 FracFocus, 34, 159, 191 See also Interstate Oil and Gas Compact Commission; Groundwater Protection Council Frack pack, 192 Fraser Institute, 202 Freedom Caucus (Tea Party), 186 Friends of the Earth (FOE), 114 Fukuyama, Francis, 188–189 Gasland, 204 Geological conditions of states in sample, 36–37 Government-initiated unannounced exercises (GIUEs), 61 Grassroots groups, 131, 133–141 See also Non-governmental organizations Greenpeace, 69–70, 115 Groundwater Protection Council (GWPC), 33–34 See also Interstate Oil and Gas Compact Commission Gulf of Mexico, 18, 48–50, 67 See also Deepwater Horizon Halliburton: the firm, 13; “loophole,” 11, 204–205, 220 Hamm, Harold, 156 Hazelwood, Joseph, 55 Helms, Lynn, 173–174, 266n112 Hess Corporation, 173 Hickel, Wally J (former Secretary of US DOI), 54 Hickenlooper, John, Governor (of Colorado), 84, 170, 172, 181 Holds on appointments (in the U.S Senate), 189 Horizontal diffusion, 9, 35–36 Hydraulic fracturing (HF), or “fracking,” 3–4, 35, 44, 83, 89, 105, 123–124, 127, 130, 132, 190–192, 204; on federal lands, 115, 125, 190–193; fluids used in, 113–114 Incidental Harassment Authorization (IHA), 30, 243n54 Independent Oil Producers Agency (IOPA), 91 Independent Petroleum Association of America (IPAA), 76–77, 187, 188, 191 Independent Petroleum Association of New Mexico (IPANM), 86, 87 Independent Regulatory Review Commission (Pennsylvania), 92, 178 Independents, 77, 83, 84–85, 88, 96, 106, 148, 193 See also Mom-and-pops Institutions, 181, 221–224; activities of, 10–11; defined as, 145, 221, 259n1; life cycle of, 224 See also Regulatory regimes Interagency agreements, 27, 29, 161, 192 Interest groups: access of, 107, 186– 188, 216; defining characteristics, 10, 73, 275n2; environmental NGOs, 10, 109–111; lobbying, 101, 216, 217; money connections, 101–106, 215–216; oil/gas trade associations, 10, 73–80, 187 Interstate Commerce Commission (ICC), 6, 226 Interstate Natural Gas Association of America (INGAA), 79 Interstate Oil and Gas Compact Commission (IOGCC), 32–33, 91, 149–150 See also Regulatory regimes Jewell, Sally, 190 Keffer, Jim, 106 Keystone XL pipeline, 114 Index King Ranch, 100 Krasner, Stephen, Land and Water Conservation Fund, 62, 208 See also New energy legislation (2015–2016) Landsmen, 14, 135 League of Conservation Voters, 139–140, 191 Leno, Jay, 185 Lesser prairie chicken, 75, 88, 250n48 Link, Arthus (former Governor, North Dakota), 136 Linkages of staffs (Non-state Actors), 73, 86, 107, 116, 142 Liquified natural gas (LNG), 68, 79 Liveable Arlington, 133 Local government land use authority, 11, 60, 83, 132, 139, 146, 168–173; attempted bans on fracking, 44, 105, 168–169, 170; state pre-emptions of local government authority, 44, 96, 129, 169–170 See also Task Force on State and Local Regulation of Oil and Gas Operations (Colorado) Los Padres ForestWatch, 126–127 Louisiana: department of natural resources (DNR), 153; environmental NGOs, 120 (see also Louisiana Environmental Action Network; Atchafalaya Basinkeeper); history of oil/ gas development, 18; land ownership, 18; office of conservation (OC) of DNR, 153, 158; public advocacy organizations, 128; trade associations, 84–85 (see also Louisiana Mid-Continent Oil and Gas Association; Louisiana Oil and Gas Association) Louisiana Environmental Action Network (LEAN), 128–129 Louisiana Mid-Continent Oil and Gas Association (LMOGA), 84, 85 Louisiana Oil and Gas Association (LOGA), 84–85 Low carbon fuel standards, 90 293 Majors, 4, 12–13, 87, 103, 106, 148 See also Big Oil; Upstream; EP Mann, Thomas, 185 Marathon, 214 Marcellus Shale Coalition (MSC), 93–94 Marcellus shale formation, 17–18, 93, 162–163 Marine sanctuaries, 50–51 Martella, Roger, 199 Martinez, Susana, Governor (New Mexico), 41, 128 Massachusetts v EPA, 197 Mayhew, David, 185, 186 McCarthy, Gina, 194 McConnell, Mitch, 197–198, 208, 220, 272n69 Methane standards (EPA), 195–196, 210 Midcontinent States Environmental and Energy Regulators (MSEER), 197 Midstream oil and gas firms, 4, 13 Migratory Bird Treaty Act of 1918, 30 Mineral estate, 134–135 See also Split estates Mineral Leasing Act of 1920 as amended, 241n49 Mom-and-pops, 4, 13, 83, 92, 97, 216 Money: in commission elections, 151, 152; in federal elections, 102, 139–140, 215; in state elections, 102, 142, 215 See also Alaska; California; Colorado; Texas MTBE, 218 Murkowski, Lisa, 70, 206–207 Murkowski rider, 60 Murray Energy, 195 National Association of Manufacturers (NAM), 194–195 National Association of Royalty Owners (NARO), 99, 155 See also North Dakota chapter of NARO; Texas Chapter, NARO National Audubon Society, 115–116 National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, 57 294 Index National Energy Policy Development Group, 218 National Environmental Policy Act of 1969 (NEPA), 29, 54–55, 58 National Institute on Money in State Politics, 253n103 National Mining Association, 197 National Ocean Industries Association (NOIA), 78 National Petroleum Council, 70 National Petroleum Reserve-Alaska (NPR-A), 121 National Pollution Discharge Elimination System (NPDES), 29, 161, 162 See also Clean Water Act (Federal Water Pollution Control Act of 1972, as amended [CWA]) Natural Resources Defense Council (NRDC), 116–117, 192, 195, 196, 198, 255n25 Navajo allotments, 138 Nechodom, Mark, 153–154, 174 Negative externalities, 6–7 Neslin, David, 159 Ness, Ron, 82 New energy legislation (2015–2016): Accountability, 208; conservation fund reauthorization, 208; energy efficiency, 207; infrastructure, 207; supply, 207–208 New Mexico: environmental NGOs, 122–123, 124–125 (see also New Mexico Environmental Law Center); history of oil/gas development, 23–24; lack of coordination through EPA, 161, 164; land ownership, 23, 85, 138; Navajo associations, 138 (see also Dine´ Care); public advocacy organizations, 138 (see also New Mexico Cattle Growers’ Association); trade associations, 85–87 (see also New Mexico Oil and Gas Association; Independent Petroleum Association of New Mexico) New Mexico Cattle Growers’ Association (NMCGA), 123, 137 New Mexico Environmental Law Center, 129 New Mexico Oil and Gas Association (NMOGA), 85–86 New Mexico Oil Conservation Division (OCD), 122, 153, 158, 160 New York, 17, 124, 169 Niobara basin formation, 23 Noble Energy, 105, 121 Non-governmental organizations (NGOs), 110–111, 125–134 See also environmental NGOs; public advocacy organizations Non-profit organizations (501[c] corporations), 141, 217 Non-state actors (NSAs), 73, 110 See also oil and gas firms and trade associations; environmental NGOs; public advocacy organizations North Dakota: agency coordination (limited), 157–158; department of health (NDDH), 130, 165; environmental NGOs, 129 (see also Badlands Conservation Alliance; Dakota Resource Council); “exceptional places,” 130, 154–157; history of oil/gas development, 19; industry-government relations, 179; land ownership, 19; oil and gas division, 131, 136, 156, 160, 164–165, 173–174; ombudsman, 136; public advocacy organizations, 130 (see also North Dakota Farmers Union; Northwest Landowners Association); trade associations, 81–82 (see also North Dakota Petroleum Council); water usage, 263n77 See also Bakken formation North Dakota chapter of NARO, 100 North Dakota Farmers Union, 135–136 North Dakota Industrial Commission (NDIC), 130, 151, 154–157, 164–166 North Dakota Petroleum Council (NDPC), 81, 155–156, 175 North Dakota Water Commission, 165 Index Northern Alaska Environmental Center, 125–126 Northwest Landowners Association (NWLA), 136–137, 258n108, 258n109 Obama, Barack, administration: “all of the above” energy policy, 30, 112, 241n55; BLM regulations for HF on federal lands, 74, 83, 125, 190–193, 219, 269n28, 269n30; clean power plan (EPA), 68, 196–199, 219, 224–225, 271n62; climate change policy, 125, 219; methane standards (EPA), 125, 195–196; onshore royalty rate increases, 193; ozone standard (EPA, proposed), 194–195, 219; reform of OCS operating standards, 57; “unified agenda of federal and regulatory and deregulatory actions,” 190, 219 Occidental Petroleum, 104 Oil and gas: activity in campaigns and elections (see also Money; and individual states of sample); development, conventional, 3, 31, 89, 93; development in offshore regions, 58–59; development, unconventional, 3, 89, 93, 129; industry, degree of concentration of state’s industry, 13, 35, 39, 123 (see also Big Oil); industry disunity, 216–217; industry, impact of price volatility on, 12–14; industry influence on U.S politics, 1, 2–3, 11, 67–68, 187, 188–190, 213; industry subsidies, credits and tax breaks, 204–206, 220; major oil and gas producing states, 9, 16 (Figure 2.1); prices, 12, 238n13; regulations, 5–7 (see also Regulatory regimes); representation of, 10, 190; reserves, 66–67; shocks, 2–3; taxation of, in U.S states, 2, 37–39, 67, 81, 87–88, 91, 92, 103, 105, 170 Oil field service firms, 12, 13 Oil Pollution Act of 1990, 29, 56, 61 295 Oil pollution liability, 57 Oil spill response, 56, 61 Oklahoma: department of environmental quality (DEQ), 88, 166–167; environmental NGOs, 118, 119 (see also Stop Fracking Payne County); history of oil/ gas development, 19–20, 149; industry-government relations, 179; land ownership, 19–20; trade associations, 87–89 (see also Oklahoma Oil and Gas Association; Oklahoma Independent Petroleum Association) Oklahoma Corporation Commission, 88, 118, 152, 157, 166–167, 169 Oklahoma Independent Petroleum Association (OIPA), 88–89 Oklahoma Oil and Gas Association (OkOGA), 87–88 Ornstein, Norman, 185 Outer Continental Shelf (OCS): leasing moratoria, 63; oil and gas development, 9–10, 47–48; Outer Continental Shelf Governors’ Coalition, 64; planning areas, 49 (Figure 3.1), 52 (Figure 3.2), 66–67; regions, 9–10, 18, 24, 47, 48–53, 71, 244n2; responses to 2017–2022 leasing plan, 63–67 (Figure 3.3), 114 See also Bureau of Ocean Energy Management; Bureau of Safety and Environmental Enforcement; Office of Natural Resources Revenue Outer-Continental Shelf Lands Act (OCSLA) of 1953, 57–58 Ozone standards (EPA proposal), 82, 194–195 Pacific region (OCS), 24, 50–51, 54–55 Paris Summit on greenhouse gas emissions, 14 Parnell, Sean (former Governor, Alaska), 103 Pavillion (Wyoming), water quality, 135 “Peak oil” hypothesis, 222, 275n11 296 Index PennEnvironment, 131–132, 257n85 PennFuture, 132 Pennsylvania: chapter 78 of statutes on oil/gas, 27, 94; coordination of regulatory activities via the EPA, 162–163; department of environmental protection (DEP), 147; environmental NGOs, 132 (see also PennEnvironment; PennFuture); history of oil/gas development, 17–18, 146–147; industry-government relations, 179; land ownership, 17; oil and gas division (of DEP), 147, 153, 158; public advocacy organizations, 132; Robinson decision on local government powers, 168–169; trade associations, 91–94 (see also Pennsylvania Independent Oil & Gas Association; Pennsylvania Independent Petroleum Producers Association; Marcellus Shale Coalition; Pennsylvania Grade Crude Oil Coalition) Pennsylvania Grade Crude Oil Coalition (PGCC), 94 Pennsylvania Independent Oil & Gas Association (PIOGA), 91–92, 216 Pennsylvania Independent Petroleum Producers Association (PIPP), 92–93 Permian basin formation, 21, 97 Permian Basin Petroleum Association (PBPA), 97–98 Petroleum Association of Wyoming (PAW), 82–83, 195 Pipelines: new construction, 202–203; regulation, 202–203, 219; safety issues, 203, 219 Plays, 244n8 Police powers, 263n63 Policy liberalism, 42–43 (Table 2.2) Political action committees (PACs), 10, 101, 102, 215 Political culture, 41–42, 223 Political Order and Political Decay, 188–189 Political Organizations, 121 Political party polarization, 186–187 Potential incidents of non-compliance (PINCs), 61 Powder River Basin (PRB) Resource Council, 133–134 Prevention of Significant Deterioration (PDS) permits, 29 Prindle, David, Prorationing, 148–149 Protecting Colorado’s Environment, Economy & Energy Independence (PCEEEI), 105 Prudhoe Bay oil field, 26 Public utility regulation (cf oil/gas regulation), 152 Purple states, 41, 104, 170, 224 See also Blue states; Red States Reagan, Ronald, 40 Recruitment of regulatory officials, 151–154, 222; direct election, 151–152; gubernatorial appointment of commissioners, 128, 152–153, 222; indirect appointments, 153–154, 222 See also Regulatory regimes Red States, 40, 41, 104 See also Blue states; Purple states Regulations: economic, 6; oil and gas, 5–7; regimes, 5–7, 41 (see also Regulatory regimes); social, 6–7 Regulatory regimes, 10–11, 109; agencies, 27–28, 190–203; avoiding industry capture, 176–178, 222; collaboration (of industry, government, NGOs), 143, 220, 223, 276n14; commission form of, 154; comparative evaluation of, 7, 35, 157–158, 159–160, 224; and conflicts of interest, 154, 173–175; convergence of, 9, 31–36, 150; coordination of regulatory activities, 160–163, 163–168 (see also Alaska; California; New Mexico; North Dakota; Oklahoma; Texas; Wyoming; and state accounts); cost of regulations (burden), 83, 123, 167, 192, 194–195, 201; definitions Index of, 5–6; differences among states, 9; empowerment of communities in, 123, 124, 128; ESA listing actions, 87, 98; hierarchical control, 61, 157–158, 247–248n75; history and onset of, 6–7; industry funding of government positions, 81, 85, 94, 97, 175–176, 249n20; outer continental shelf, 47, 57–63; regulatory beneficiaries, 177, 222; regulatory reform, 113, 203, 223; standard setting, 74, 200; transparency of, 117, 158–160, 221 See also Oil and gas; Recruitment of regulatory officials Renewable fuel standards (RFS), 218 Repatrimonialism, 188–189 See also Fukuyama, Francis Resource management plan (RMP), 28 Riders on appropriations bills, 60, 63, 189–190 Rivers and Harbors Act of 1899, 30 Royal Dutch Shell, 4, 51, 66, 68–70, 72 Royalty Owners & Producers Educational Coalition (ROPE), 155 See also National Association of Royalty Owners RSI, 200, 201 “Rule of capture” (in wildlife law), 147 Rule 13 (well integrity, Texas), 95, 141, 223 Safe Drinking Water Act (SDWA), 29, 192, 204 See also Clean Water Act (Federal Water Pollution Control Act of 1972, as amended [CWA]); NPDES Safety and Environmental Management Systems (SEMS), 62 Sage grouse, 82, 98, 115, 166, 168, 190 Salazar, Ken (former Secretary, U.S DOI), 57, 59, 193 Santa Barbara oil spill, 1969, 54–55 Severance taxes, 37–39, 81, 92, 103, 105 Shale revolution, 3–4, 15, 17–18, 20, 22, 23–24, 44, 66, 68, 82, 87, 132–133, 135, 137, 161, 184, 202, 225 297 Sierra Club, 55, 117–119, 170 Sierra Club v Morton (1972), 110, 254n2 Sinclair, Barbara, 185–186 Smith, Adam, 214 Specialization of NSA staffs, 73, 85, 93, 106, 113, 142, 215, 217 Spence, David, 225–226 Split estates, 109–110, 135 See also Mineral estate State Oil and Gas Regulatory Exchange (SOGRE), 33 See also Interstate Oil and Gas Compact Commission; Groundwater Protection Council Stenehjem, Wayne, 130, 154–156, 261n29 Steyer, Tom, 90, 101, 275n4 Stop Fracking Payne County, 131 Strategic litigation, 112, 117 Strategic Petroleum Reserve, 207 STRONGER (State Review of Oil & Natural Gas Environmental Regulations), 34 See also Interstate Oil and Gas Compact Commission; Groundwater Protection Council Submerged Lands Act of 1953, 58 Sustainable Energy and Economic Development (SEED) Coalition, 133 Task Force on State and Local Regulation of Oil and Gas Operations (Colorado), 170–173 Texas: campaign activity of industry in, 105–106; coordination of state/federal agencies, 167; environmental NGOs, 119, 132 (see also Liveable Arlington; Texas Campaign for the Environment); history of oil/gas development, 20–21, 148–149; land ownership, 20; public advocacy organizations, 105, 133 (see also Sustainable Energy and Economic Development (SEED) Coalition); trade associations, 94–98 (see also PBPA; Texas Alliance; Texas Independent Producers & Royalty 298 Index Texas (cont.) Owners Association; Texas Oil & Gas Association; TPA) See also Barnett, Eagle Ford and Permian basin foundations; Texas Commission on Environmental Quality; Texas Railroad Commission Texas Alliance of Energy Producers (Texas Alliance), 96–97 Texas Campaign for the Environment, 132 Texas chapter, NARO, 99–100 Texas Commission on Environmental Quality (TCEQ), 167, 264n86 Texas Independent Producers & Royalty Owners Association (TIPRO), 95–96 Texas Land and Minerals Owners Association (TLMA), 100–101, 252n98 Texas Oil & Gas Association (TxOGA), 94–95, 169 Texas Pipeline Association (TPA), 98 Texas Railroad Commission (TRC), 29, 226, 252n81; activities of, 157, 167; campaigns of industry in elections for, 105–106, 148, 152; sunset review of, 96, 106, 141, 157 The Nature Conservancy (TNC), 119–120 Theodore Roosevelt National Park, 241n51 Thompson, Ernest, 149 Tort reform, 85 Toxic Substances Control Act, 75 Trade secrets, 84, 134, 159 Trans-Alaska Pipeline System (TAPS), 26 Twain, Mark (aka Samuel Clemens), 185 Udall, Mark, 170 Union Oil, 54 United Nations (codes of conduct for multi-national corporations), United Shale Advocacy group, 93 Upstream oil and gas firms, 4, 12–13, 17 Upton, Fred, 206 U.S Army Corps of Engineers (ACE), 30 U.S Bureau of Land Management (BLM), 28, 58, 125, 160, 175, 190–193, 194 U.S Bureau of Ocean Energy Management (BOEM), 50, 59–60, 71 U.S Bureau of Safety and Environmental Enforcement (BSEE), 61–62, 71 U.S Coast Guard, 61 U.S Congress: holds on appointments (Senate), 189, 268nn18–21; riders on appropriations bills, 189–190, 268–269n24 U.S Congress, House Energy and Commerce Committee, 187 U.S Congress, House Natural Resources Committee, 193 U.S Congress, Senate Energy and Natural Resources Committee, 187 U.S Department of Energy, 207, 208, 221 U.S Department of Interior (USDOI) See also Bureau of Land Management; Bureau of Ocean Energy Management; Bureau of Safety and Environmental Enforcement; Fish and Wildlife Service; National Parks Service; Office of Natural Resources Revenue U.S Department of Transportation (USDOT), 199–203 U.S Energy Information Administration (EIA), 15–17, 200, 238–239n1 U.S Environmental Protection Agency (EPA), 29, 55, 161–163, 193–199, 204; Pennsylvania studies, 161–163; Region (Texas), 264n84; water quality, 134, 163 U.S Fish and Wildlife Service (USFWS), 30, 88 U.S Forest Service (USFS), 28–29 U.S Geological Service (USGS), 58 Index U.S Minerals Management Service (U.S MMS), 47, 57, 58–59, 71, 224 U.S National Marine Fisheries Service, 30 U.S National Parks Service (NPS), 29 U.S Office of Information and Regulatory Affairs (OIRA), 177–178, 200, 220 U.S Office of Management and Budget (OMB), U.S Office of Natural Resources Revenue (ONRR), 62–63, 71, 86 U.S Pipeline and Hazardous Materials Safety Administration (PHMSA), 78, 200–203 Vertical diffusion, 9, 32–34, 150 Western Energy Alliance (WEA), 84, 191 Western Environmental Law Center (WELC), 124–125 Western Resource Advocacy (WRA), 124 Western States Petroleum Association (WSPA), 80, 88–90, 104 299 The Wilderness Society, 120–121, 193 Wilson, James Q., 121 Wilson, Woodrow, 186–187 Wiseman, Hannah, 204–205 Wolf, Tom, Governor (Pennsylvania), 92 Wyoming: department of environmental quality (DEQ), 82–83, 167–168; environmental NGOs, 118 (see also Powder River Basin (PRB) Resource Council); history of oil/gas development, 22; industry-government relations, 179; land ownership, 21–22; public advocacy organizations, 133 (see also Wyoming Outdoor Council); trade associations, 82–83 (see also Petroleum Association of Wyoming) Wyoming Oil and Gas Conservation Commission, 153, 159, 160 Wyoming Outdoor Council (WOC), 133–134, 158 Yates Petroleum, 123 Yergin, Daniel, About the Author Jerry A McBeath is professor of political science emeritus, University of Alaska Fairbanks His classroom teaching c areer included work at Rutgers College, the City University of New York, and the longest period at the University of Alaska Fairbanks He also had two Fulbright professor stints, in Taiwan and China He has received research grants from international and national research foundations, federal, state, and local agencies, and private foundations His publications include 16 books (authored or coauthored), more than 50 refereed journal articles and book chapters, and hundreds of book reviews and research reports During his career, he has won teaching excellence awards, commendations for research accomplishments, and distinguished service awards .. .Big Oil in the United States This page intentionally left blank Big Oil in the United States Industry Influence on Institutions, Policy, and Politics Jerry A McBeath... Africa, and Latin America CONVENTIONAL AND UNCONVENTIONAL OIL AND GAS DEVELOPMENT The terms “conventional” and “unconventional,” in the context of oil and gas resource exploration and development,... technological developments in the industry and changes in industry structure These newspapers and newsmagazines were the best source of information on changes in the industry when oil and gas prices dropped