skip to main content

Natural Resources Defense Council

Switchboard

Frances Beinecke's Blog

Salazar Cleans Up Bush-Era Cronyism in Dirty Oil-Shale Program

Salazar Cleans Up Bush-Era Cronyism in Dirty Oil-Shale Program

Just as support for clean energy and climate solutions is growing among Americans from all walks of life--from Fortune 500 executives to Iraqi war veterans to union members--we learn new secrets about the old forces eager to keep us hooked on dirty fossil fuels.

This week, Secretary of the Interior Ken Salazar asked the Inspector General to investigate the oil-shale lease agreements the Bush administration authorized just days before it left office. Negotiated with the help of Gale Norton, Bush's former secretary of the interior turn oil company representative, the leases cover 30,000 acres of public lands, yet they required oil companies to pay only 5 percent in royalties to American taxpayers instead of the more typical rate of 16 percent.

The leases also turned a blind eye to the fact that oil shale production releases upwards of five times as much greenhouse gas as conventional oil. 

This sweetheart deals raises a question for all Americans: Do we want energy development on our public lands to intensify global warming or do we want a national energy policy that promotes technologies that are renewable, generate zero greenhouses gases, and create four times jobs as fossil fuels?

You see the vast majority of the world's oil shale reserves are found in the Green River formation in northwest Colorado, northeast Utah, and southwest Wyoming where seven out of every ten acres are managed by the federal government on behalf of the American people.

During the Bush administration, the interests of us citizens took a back seat to corporate profits. Extracting oil from shale involves heating sedimentary rock at high temperatures to turn it into a liquid. It is an untested process; no commercial production is currently operating in the United States today. Yet the Bush administration decided to effectively subsidize R&D for fossil fuel companies at a time when the global energy market is moving toward cleaner technologies.

Salazar's decision to reform the Department of Interior's oil shale program brings welcome change to an industry that has been rife with cronyism and corruption. Salazar said in his statement:

Taxpayers deserve answers to serious questions about why these lease addenda were granted at the eleventh hour, under what circumstances, and at what potential expense to the federal treasure. We must reform our nation's oil shale program.

Not all of Salazar's changes to the program go far enough. I question, for instance, the need to make additional public lands open to oil shale development given the significant amount already under private control. But I am pleased that the new system for bidding on leases appears to place greater emphasis on transparent reviews and scientific findings instead of political favoritism.

 

Tags:
corruption, departmentofinterior, dirtyfuels, greenriver, oilleases, oilshale, publiclands, salazar

(bookmark or email this entry)

Comments

Michael MeadorOct 22 2009 10:07 PM

Sadly this is typical of todays journalist. I doubt that you have done your research. The
leases you are speaking of are leases that no one in America wanted due to the expence of producing the oil. There is a cooking process that is required to get the oil and that cost is more than double the normal processes followed by most oil companies. Yes it is more expensive than Drilling and producing. Shell Oil Company stepped up when the price of oil was $140.00 per barrel. During this period our Congress lead this movement . Poor ol' George gets the blame. We must remember that the Presidents job is to sign legislation into law and to protect this County. You make it look as if Ol' George rubbed belt buckels with the good Ol' Boys at Shell Oil Company. If the truth be know I doubt that one barrel of oil will ever come from the oil shell reserves in our lifetime. It is just to expensive to extract. Bottom line: I beleive this is a God send to Shell Oil Company. They can gracefully step away now that the issue has been raised. The people who lose in this will be the land owners, who are hoping for royalties on the oil. The truth is this article did cut around the edges of the problem but missed in the excavation of trurth of actually what did happen. Next time try to do your research and get you facts in order. Finally the restrictions given in answering about non political is a sham. Read your headline. That would be a subject for another time.

Thanks,

Comments are closed for this post.

We close comments on a blog post when it's clear the conversation has moved on -- click on the tags (above) or on our homepage to see if we've got fresh news and views on this post's topic.

Clean Energy Common Sense

OnEarth: NRDC's award-winning magazine

Citizen journalism from the OnEarth magazine website

Day Five of No Impact Week: Lights Out
by Solvie Karlstrom
The Not-So-Badness of Guides to Green Living
by Emily Gertz
No Impact Week Day Four: Foreign Foods
by Solvie Karlstrom

Read more

Fresh Conversation

Feeds: Stay Plugged In