markets/business firebrands rail against ‘environmental ... · friday, april 23, 1993...

2
■ Friday, April 23, 1993 MARKETS/BUSINESS Times Record News Photo/Becky Chaney Texas Railroad Commissioners Jim Nugent, left, Mary Scott Nabers and Barry Williamson talk before their speeches to the North Texas Oil & Gas Association luncheon Thursday. Nugent says energy tax Texans Williamson said, “ Cut the budget. That’s what we’re doing in Texas.” Williamson said the com- mission also has been fighting hard for tax incentives to en- courage exploration and drilling. Before the luncheon, Nabers said the bill to deregulate the trucking industry is on Gov. Ann Richard’s desk, and that she ex- pects the governor to sign it. "I think there are some reforms in there that will help,” she said. As for the North American Free Trade Agreement, the com- missioners said it is inevitable, but it needs some work to ensure fair trade and make sure trans- portation and environmental is- sues are fair. “We need to work on the energy side of NAFTA,” Wil- liamson said. “We’d like to be able to negotiate company to company, business to business to sell our natural gas. It’s a grow- ing market in Mexico.” Nabers, who was appointed to the commission by the governor three months ago, said she plans to “do some bureaucracy busting and.be very accessible” as she did during her years on the Texas Employment Commission. would be costly to By Jim Mannlon Business Editor Research shows the proposed national energy tax would cost Texans $54 million per month just from driving. Electricity and natural gas use will cost even more, Texas Railroad Com- mission Chairman Jim Nugent said Thursday. The Texas Railroad Com- missioners urged those attending the North Texas Oil A Gas As- sociation luncheon Thursday to write their state and national legislators asking for changes to make the proposed energy tax fairer to Texas. The commissioners — Nugent, Mary Scott Nabers and Barry Williamson said President Clinton is right to make deficit reduction his top priority, but balancing the budget on the backs of Texans is not fair. They noted Texas has 6.8 percent of the population, but would pay 12 percent of the tax. Texas consumes more energy than any other state — 9.8 quad- rillion Btus, Williamson said. "It’s not the consumers’ choice; our businesses need it to oper- ate,” he said, adding that Texas has fuel-intensive industries so it costs more to make things and be a production state than it does in service states. “It will not raise the value of products, just the cost,” Wil- liamson said. For example, he said, it would cost the Eastman Kodak plant in Longview an ad- ditional $13 million in taxes per year, and it would cost Central Freight Lines $15 million. The commissioners said they have been traveling around the state gathering input from citizens and urging them to voice their concerns about the proposed tax and other issues. Williamson said he has testi- fied about the impact of the tax on Texas before the House Ways and Means Committee. And Nugent said he has written Treasury Secretary Lloyd Bentsen pointing out needed changes in the tax proposal. Nugent said Bentsen has been helpful on the specifics noted in the letter, but he is supporting the administration on the tax. Nabers said, “The adminis- tration says it has made all the changes it’s going to. Other ad- justments made will be from the voting Congress, so that’s where we need to focus our efforts.” Asked what alternative to the energy tax they would suggest, Firebrands rail against ‘environmental extremists’ By Richard Mize Staff Writer Two firebrands for free enterprise rallied North Texas Oij & Gas Association members Thursday to take stands against what they consider environmen- tal extremism and government control over business. Dr. Margaret Maxey, a direc- tor and professor of bioethics in the petroleum engineering de- partment at the University if Texas at Austin, and Dr. William Perry Pendley, president of Mountain States Legal Foun- dation at Denver, were the speakers at the NTOGA mem- bership breakfast at the Wichita Falls Country Club. Maxey said U.S. society is en- gaged in a "war of the worlds” “ the world of the catastrophics vs. the world of the cornucopians.” She said believers in the first world insist that nature is “fragile and precariously bal- anced” ; that modern technology causes global destruction; that Rachel Carson’s claim in "Silent Spring" that “man alone creates cancer-causing agents” is cor - rect; that there is “no safe dose” of chemicals in food, air and water; and that A. Gregg, in “Mankind at the Turning Point” was right in the assessment that “the world has a cancer and the cancer is man,” People in the “world of the catastrophics” called swamps “wetlands” until public policy makers agreed and started work- ing to “save” any place where water will stand for more than a few days, Maxey said. The “world of the cornu- copians” is one that sees the world as a place full of techno- logical possibilities and nature as stout enough to thrive as human- kind finds new ways to*ujtilize its natural resources. , She decried students at the University of Texas who want to save insects yet drive past home- less people every day. “I suggest to you that the greatest pollutant on this planet, ladies and gentlemen, is pover- ty,” she said. Lambasting the Delaney Clause — an environmental regu- lation allowing zero tolerance for contaminants in food — she said researchers should quit using mice for lab tests of parts in millionths and billionths of con- taminants. “Why aren’t we using law- yers? There are more of them and you don’t get so attached to them,” she quipped. Complaining about what she considers unreasonable en- vironmental regulations on busi- ness, she cracked, “Do you think this nation would ever have been founded if Queen Isabella had required Christopher Columbus to file an environmental impact statement? He would never have left the shores of Spain.” Pendley said Mountain States Legal Foundation is dedicated to court fights against attacks by environmental extremists against individual liberty, prop- erty rights and rights to use natural resources. Its work includes challenges to wetlands regulations, involve- ment in rewriting the federal En- dangered Species Act and de- fending farmers, oil and gas producers and others who get caught up in government “tak- ings” of their property while doing business. For example, the foundation is representing the Independent Petroleum Association of Ameri- ca, arguing in a case that a Mich- igan state agency that is prohibiting an oil and gas com- pany from drilling on its leasehold is an unconstitutional “taking.” “We sue the government — and we love it,” Pendley said. “I’m convinced that government lawyers are operating largely without adult supervision.” The foundation’s long-range goal, he said, is changed public attitudes. He said he was op- timistic in spite of increased gov- ernment “takings” because poll- ing shows more people oppose unreasonable environmental regulations than approve of them. Producers trade hints on survival By Deanna Watson Staff Writer Area oil and gas producers spent Earth Day ’93 learning how they can meet strict environmen- tal regulations and still survive. J. Roger Kelley, president of Kelley-Hines Inc., a Houston consulting firm that presents training programs on corporate environmental compliance, spoke Thursday at the annual meeting of the North Texas Oil &

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Page 1: MARKETS/BUSINESS Firebrands rail against ‘environmental ... · Friday, April 23, 1993 MARKETS/BUSINESS Times Record News Photo/Becky Chaney Texas Railroad Commissioners Jim Nugent,

■ Friday, April 23, 1993 M A R K E T S /B U S IN E S S Times Record News

Photo/Becky ChaneyTexas Railroad Commissioners Jim Nugent, left, Mary Scott Nabers and Barry W illiamson talk before their speeches to the North Texas Oil & Gas Association luncheon Thursday.

Nugent says energy taxTexans

Williamson said, “ Cut the budget. That’s what we’re doing in Texas.”

Williamson said the com­mission also has been fighting hard for tax incentives to en­courage exploration and drilling.

Before the luncheon, Nabers said the bill to deregulate the trucking industry is on Gov. Ann Richard’s desk, and that she ex­pects the governor to sign it. "I think there are some reforms in there that will help,” she said.

As for the North American Free Trade Agreement, the com­missioners said it is inevitable, but it needs some work to ensure fair trade and make sure trans­portation and environmental is­sues are fair.

“We need to work on the energy side of NAFTA,” Wil­liamson said. “We’d like to be able to negotiate company to company, business to business to sell our natural gas. I t’s a grow­ing market in Mexico.”

Nabers, who was appointed to the commission by the governor three months ago, said she plans to “do some bureaucracy busting and.be very accessible” as she did during her years on the Texas Employment Commission.

would be costly toBy Jim MannlonBusiness EditorResearch shows the proposed

national energy tax would cost Texans $54 million per month just from driving. Electricity and natural gas use will cost even more, Texas Railroad Com­mission Chairman Jim Nugent said Thursday.

The Texas Railroad Com­missioners urged those attending the North Texas Oil A Gas As­sociation luncheon Thursday to write their state and national legislators asking for changes to make the proposed energy tax fairer to Texas.

The commissioners — Nugent, Mary Scott Nabers and Barry Williamson — said President Clinton is right to make deficit reduction his top priority, but balancing the budget on the backs of Texans is not fair. They noted Texas has 6.8 percent of the population, but would pay 12 percent of the tax.

Texas consumes more energy than any other state — 9.8 quad­rillion Btus, Williamson said. " It’s not the consumers’ choice; our businesses need it to oper­ate,” he said, adding that Texas has fuel-intensive industries so it costs more to make things and be

a production state than it does in service states.

“It will not raise the value of products, just the cost,” Wil­liamson said. For example, he said, it would cost the Eastman Kodak plant in Longview an ad­ditional $13 million in taxes per year, and it would cost Central Freight Lines $15 million.

The commissioners said they have been traveling around the state gathering input from citizens and urging them to voice th e ir concerns about the proposed tax and other issues.

Williamson said he has testi­fied about the impact of the tax on Texas before the House Ways and Means Committee. And Nugent said he has written T reasu ry S ec re ta ry Lloyd Bentsen pointing out needed changes in the tax proposal.

Nugent said Bentsen has been helpful on the specifics noted in the letter, but he is supporting the administration on the tax.

Nabers said, “The adminis­tration says it has made all the changes it’s going to. Other ad­justments made will be from the voting Congress, so that’s where we need to focus our efforts.”

Asked what alternative to the energy tax they would suggest,

Firebrands rail against ‘environmental extremists’

By Richard MizeStaff WriterTwo fireb ran d s for free

enterprise rallied North Texas Oij & Gas Association members Thursday to take stands against what they consider environmen­tal extremism and government control over business.

Dr. Margaret Maxey, a direc­tor and professor of bioethics in the petroleum engineering de­partment at the University if Texas at Austin, and Dr. William Perry Pendley, president of Mountain States Legal Foun­dation at Denver, were the speakers at the NTOGA mem­bership breakfast at the Wichita Falls Country Club.

Maxey said U.S. society is en­gaged in a "war of the worlds” — “ th e w o rld of th e catastrophics vs. the world of the cornucopians.”

She said believers in the first world insist that nature is “fragile and precariously bal­anced” ; that modern technology causes global destruction; that Rachel Carson’s claim in "Silent Spring" that “man alone creates cancer-causing agents” is cor­rect; that there is “no safe dose” of chemicals in food, air and water; and that A. Gregg, in “Mankind at the Turning Point” was right in the assessment that “the world has a cancer and the cancer is man,”

People in the “world of the catastrophics” called swamps

“wetlands” until public policy makers agreed and started work­ing to “save” any place where water will stand for more than a few days, Maxey said.

The “world of the cornu­copians” is one that sees the world as a place full of techno­logical possibilities and nature as stout enough to thrive as human­kind finds new ways to*ujtilize its natural resources. ,

She decried students at the University of Texas who want to save insects yet drive past home­less people every day.

“I suggest to you that the greatest pollutant on this planet, ladies and gentlemen, is pover­ty,” she said.

L am basting the D elaney Clause — an environmental regu­lation allowing zero tolerance for contaminants in food — she said researchers should quit using mice for lab tests of parts in millionths and billionths of con­taminants.

“Why aren’t we using law­yers? There are more of them and you don’t get so attached to them,” she quipped.

Complaining about what she considers unreasonable en­vironmental regulations on busi­ness, she cracked, “Do you think this nation would ever have been founded if Queen Isabella had required Christopher Columbus to file an environmental impact statement? He would never have

left the shores of Spain.”Pendley said Mountain States

Legal Foundation is dedicated to court fights against attacks by e n v iro n m e n ta l e x tre m is ts against individual liberty, prop­erty rights and rights to use natural resources.

Its work includes challenges to wetlands regulations, involve­ment in rewriting the federal En­dangered Species Act and de­fending farmers, oil and gas producers and others who get caught up in government “tak­ings” of their property while doing business.

For example, the foundation is representing the Independent Petroleum Association of Ameri­ca, arguing in a case that a Mich­igan sta te agency tha t is prohibiting an oil and gas com­pany from drilling on its leasehold is an unconstitutional “taking.”

“We sue the government — and we love it,” Pendley said. “I’m convinced that government lawyers are operating largely without adult supervision.”

The foundation’s long-range goal, he said, is changed public attitudes. He said he was op­timistic in spite of increased gov­ernment “takings” because poll­ing shows more people oppose unreasonable environm ental regulations than approve of them.

Producers trade hints on survivalBy Deanna WatsonStaff WriterArea oil and gas producers

spent Earth Day ’93 learning how they can meet strict environmen­tal regulations and still survive.

J. Roger Kelley, president of Kelley-Hines Inc., a Houston consulting firm that presents training programs on corporate env ironm enta l com pliance, spoke Thursday at the annual meeting of the North Texas Oil &

Page 2: MARKETS/BUSINESS Firebrands rail against ‘environmental ... · Friday, April 23, 1993 MARKETS/BUSINESS Times Record News Photo/Becky Chaney Texas Railroad Commissioners Jim Nugent,

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Joey Aboussle, left, talks with Dr. M argaret M axey and Perry Pendley.

' lE R in r b "“What we are trying to do is

help individual producers to op­erate successfully in spite of the environm ental regu la tions,’’ Kelley told the group assembled at the Wichita Falls Country Club. “We have seen success at getting in compliance with the regulations without having to sell a few oil wells to pay for it.”

Kelley addressed 12 en ­vironmental issues facing oil and gas producers from oil spill prevention to disposing hazard­ous waste to air pollution control, a problem he said is becoming more prevalent In the industry than ever before.

The major step in complying with regulations monitored by agencies like the Environmental Protection Agency and the Texas Railroad Commission comes when producers train their em­ployees, Kelley said.

"You need to make sure your em ployees are tra ined (in preventing or correcting en­vironmental hazards),” Kelley said. “If you are the owner, you can’t go out like a plant manager and see all the wells everyday to

make sure everything is done right. Your people need to know.”

The Federal Clean Water Act requires operators to immedi­ately report any harmful quan­tities of oil spilled into United States waters, Kelley said, but producers need to know exactly how much oil is considered harmful.

"The definition of ’harmful’ changes any time Congress meets,” Kelley told the group, adding that the act states that a harmful quantity is any amount of oil that reaches water and causes a slight sheen or dis­coloration. “That could just be one drop of oil.”

The consulting firm, which also helps Individual gas and oil operators develop and maintain programs that protect them­selves against liabilities as­sociated with environmental haz­ards, presented a Texaco train­ing film showing how the thoughtless act of one employee

could send the owner straight to jail.

“The fact is,” a spokesman in the film said, “that anyone who knows or is in a position to know about the environmental regu­lations can be held liable.”

Failing to report a spill to the National Response Center could cost a corporation $200,000 and/or one year in prsion, a Kelley-Hines publication stated. Individuals can also face $100,000 in fines and jail time.

Since 1982, Kelley said, more than 580 indictments have re­sulted in 432 convictions of fail­ing to comply with environmen­tal regulations. Those convic­tions totaled $26 million in fines.

Individuals are not excluded from the large fines as 305 of the convictions went to employees of companies not complying.

“That’s real fines payed by real people,” Kelley said, “from the executive all the way to the field worker.”

Consultant: Tax will hurt industryBy Russell L. HutchisonStaff WriterPresident Clinton’s tax pack­

age will hurt an already reeling oil and gas industry with its Btu tax and rate hikes for upper- income famil­ies, according to a Dallas oil and gas tax consultant.

Ma r k E d ­munds, the na­tional energy d irecto r with D elo itte and Touche, told participants in the North Texas Oil & Gas As­sociation’s 63rd annual meeting that Clinton is “playing hard­ball” with his tax proposals and leaving oil and gas producers sitting in the stands.

“There's nothing in the pack­age for us,” Edmunds said. “There’s an increase in rates but none of the incentives are there for oil and gas.”

Edmunds said that the Btu tax will probably become a reality because It will generate so much revenue for Clinton’s deficit re­duction plan — up to $80 billion a year once it is fully in place in 1996. He called Clinton a master politician for his tactic of putting almost every type of fuel on the table at once, getting everybody upset at once. Now, Edmunds said, he has started granting cer­tain industries exemptions to help develop a consensus for the plan.

“It will look like swiss cheese” but he will pass it that way, Edmunds said.

The administration's proposed rates are 25.7 cents per million Btu on natural gas and 59.9 cents per million Btu on oil.

Edm unds did have some news for the independent producers concerning the Btu tax.

The administration had started out wanting to collect at the well­head, which would have meant producers absorbing most of the

cost of the tax increase, but it has been pushed further down­stream for both oil and gas, he said. The tax on oil will be col­lected at the end of the refining process while the tax on natural gas will be paid by the utility or other user, he said.

The consultant said he is not as optimistic as some in the indus­try that an oil import fee will become a reality. “My personal opinion is that it is (dead)” although House Majority Leader Dick Gephardt Is strongly pitch­ing the idea to the administration and may have some success, he said.

On the rate increases for upper-income brackets, Ed­munds said it will probably be retroactive so that the whole of 1993 is under the 39.6 percent rate for people earning more than $250,000. If action on it is delayed much past August, it could be blended with the current 36 percent rate, he said.

CLINTON

Agribusiness Editor Richard Mize reports the news farmers need. A product of an Oklahoma farm himself, Richard knows the importance of being up to date on issues in agriculture and ranching. Read w hat he has to say in the Times Record News.