Friday, December 09, 2011

EPA Finds Fracking Fluids In Tainted Water in Wyoming

Despite claims by drillers that the shallow depth of natural gas deposits in Wyoming could explain the presence of off-smelling and tasting water in parts of the Pavillion deposit field, the EPA found that natural processes alone could not explain why chemicals used in hydrofracking (fracking) showed up in test wells.
The draft report, after a three-year study by the Environmental Protection Agency, represents a new scientific and political skirmish line over whether fracking, as it is more commonly known, poses a threat in the dozens of places around the nation where it is now being used to extract previously unreachable energy resources locked within rock.

The study, which was prompted by complaints from local residents about the smell and taste of their water, stressed that local conditions were unusual at the site, called the Pavillion field, in that the gas wells were far shallower than in many other drilling areas around the country. The shallow depth means that natural gas itself can seep upward naturally through the rock, and perhaps into aquifers.

But the suite of chemicals found in two test wells drilled at the site, the report said, could not be explained entirely by natural processes. The agency’s analysis of samples taken from deep monitoring wells in the aquifer indicated the presence of synthetic chemicals, like glycols and alcohols consistent with gas production and hydraulic fracturing fluids, benzene concentrations well above standards in the Federal Safe Drinking Water Act standards, and high methane levels.

Also complicating the inquiry is the Pavillion field’s long history. The oldest wells there were drilled 40 years ago or more, and chemicals that might have been used were not required to be listed or reported to anyone.
This has repercussions for the fracking of the Marcellus field in New York, where the state DEP is examining proposed regulations on allowing fracking, and which could affect the New York City watershed. No one really knows what chemicals were used 40 years ago in the drilling processes, and while it is plausible that the chemicals found in the test wells could be the result of decades-old contaminations, it still shows that those chemicals can migrate into well water and aquifers in and around the natural gas formations.

It means that the energy companies have to do a whole lot more to protect the watershed than they are now doing, and that fracking has to be carefully so as to prevent contamination of the watershed and aquifers. So, while fracking might not leave much of a trace on the surface, the underground damage could be substantial and far more long-lasting than the energy companies are willing to admit.

It means that regulators, politicians, and local groups have to be a whole lot more careful about accepting fracking and the promises of a clean and environmentally responsible fracking process. It means that the energy companies have to be far more careful in their use of fracking fluids that can lead to irreparable harm to aquifers and the watersheds.

Thursday, December 08, 2011

Former NJ Governor Jon Corzine Can't Explain Where MF Global Money Went

Nearly $1.2 billion in client money disappeared from MF Global accounts without a trace, and Jon Corzine doesn't have a clue where the money went. The former New Jersey governor and alleged wunderkind at Goldman Sachs who headed up the late MF Global can't explain where the money went.
Corzine, who was CEO at MF Global during the collapse, said he was “stunned” to learn that client accounts could not be reconciled as the firm went down.

“I simply do not know where the money is, or why the accounts have not been reconciled to date,” he said. “I do not know, for example, whether there were operational errors at MF global or elsewhere, or whether banks and counterparties have held onto funds that should rightfully have been returned to MF Global.”

Corzine said in his statement he would not invoke his Fifth Amendment rights.

“Considering the circumstances, many people in my situation would almost certainly invoke their constitituional right to remain silent — a fundamental right that exists for the purpose of protecting the innocent,” Corzine said.

“Nonetheless, as a former United States senator who recognizes the importance of congressional oversight, and recognizing my position as former chief executive officer in these terrible circumstances, I believe it’s appropriate to respond to your inquiries.”

Corzine noted, however, he had little contact with the company since his departure, and likely would not be able to explain much about what has happened during the liquidation of MF Global, which went under after Corzine directed what turned out to be disastrous investments in European debts.
Curiously, he hasn't invoked his 5th Amendment rights against self-incrimination. That may be a boldly stupid call on his part, considering that he's open to both criminal and civil actions in the bankruptcy of the financial firm as a result of his flawed strategies and calls. Corzine wouldn't have knowledge of the operations at MF Global as it wound down after his departure following the bankruptcy notification, but he should have knowledge of what happened in the weeks and months leading up to the bankruptcy and inability to determine where client money was.

That's a core responsibility of all financial firms. You are not allowed to commingle firm funds with those of the clients. Yet, that's apparently what happened, and the clients got screwed.

Corzine would love to rewrite history, and claims that he reduced MF Global's leverage from the time he took over to his departure. He then glosses over the key problem with the MF Global debacle, the pending sale in bankruptcy, and the failure to reconcile hundreds of millions of dollars of client accounts (the numbers have ranged from as low as $600 million to more than $1.2 billion.

Fact is that Corzine was claiming that the company was stable and in good financial position for a restructuring/sale in bankruptcy, when that wasn't the case. That should open him to civil and criminal liabilities.

Wednesday, December 07, 2011

Rod Blagojevich Gets 14 Years For Trying To Sell President Obama's Old Senate Seat

Former Illinois Governor Rod Blagojevich got 14 years for trying to leverage President Barack Obama's vacated Senate seat to raise campaign cash or land a high-paying job. That followed convictions through 2 trials on 18 charges (the first trial ended in mistrial on all but one charge), including bribery, attempted extortion, and lying to the FBI.

Blagojevich's legal team came up with a rather curious strategy in seeking leniency during the sentencing hearings. He had his lawyers admit he's guilty of the charges, but are seeking mercy from the court.
Judge James Zagel signaled Tuesday he may be prepared to impose a stiff prison sentence, saying he thinks Blagojevich lied when he told jurors he never tried to sell or trade an appointment to President Barack Obama's vacated Senate seat for campaign cash or a top job.

Throughout the first day of his two-day sentencing hearing, the impeached executive-turned-reality TV star known for his jocular personality was somber and ill-at-ease, staring down at the floor. His wife sobbed as a letter from their daughter was read begging Zagel not to send Blagojevich to prison.

The hearing was a stark contrast to the circus atmosphere around Blagojevich's trials on multiple counts of corruption.

The conciliatory tone came as something of a surprise — just days after defense filings that, as many times before, stridently declared Blagojevich's innocence and said he had been duped by aides but never intended to cross any lines into illegality.

Attorney Sheldon Sorosky told Zagel it was illegal for Blagojevich to ask for a job for himself in exchange for naming Obama's replacement in the Senate.

"There's no doubt this is a crime to do this in relation to the Senate seat, we accept that," he said. "I am just saying that does not call for a 15- to 20-year jail" term as prosecutors have requested.
He got a pretty harsh sentence all things considered. There was no reason to give him any leniency whatsoever. His only remorse was in being caught.

Blagojevich will be able to spend the holidays with his family; he wont be taken into custody until February 16, 2012.

New Charges Filed In Jerry Sandusky Sex Abuse Case; Jailed For Failing To Make Bail

New charges were filed against former Penn State assistant coach Jerry Sandusky today, bringing the total number of victims allegedly molested by Sandusky to 10 from 8.

Bail was set at $250,000 and he apparently couldn't make bail so he's been jailed. Should he make bail, Sandusky would have to wear an electronic monitoring bracelet. Prosecutors had called for a $1 million bail.

The latest allegations are just as harrowing as the first ones:
According to the grand jury report, victim 9 testified that while staying with the Sanduskys he was instructed to sleep in the basement, where Sandusky forced him to into oral and anal sex. On at least one occasion, the victim testified, he screamed for help, knowing that Sandusky's wife was upstairs, but no one ever came to help him.

"Additional sex acts were allegedly performed in the swimming pool and Jacuzzi of a hotel in the State College area, at times when the pool area was not occupied,"

Sandusky's attorney, Joe Amendola, issued a statement on the arrest of his client.

"I'm very disappointed by the latest tactics of the Attorney General's Office by going to Jerry's house unannounced without so much as giving me a courtesy phone call as his attorney," the statement said. "I had to hear about it from the media. We've always offered to turn him in if there were new charges."

Cop Killer Mumia Abu Jamal Will Spend Rest of Life In Prison After Prosecutors Drop Death Penalty

Prosecutors drop death penalty against convicted cop-killer Mumia Abu Jamal. He will spend the rest of his life in prison without parole. This comes as the US Supreme Court declined to hear the case.
The decision by District Attorney Seth Williams, made with the support of the officer's widow and the city police commissioner, comes after nearly 30 years of legal battles over the racially charged case.

Abu-Jamal was convicted of fatally shooting Philadelphia police Officer Daniel Faulkner on Dec. 9, 1981. He was sentenced to death after his trial the following year.

Abu-Jamal, who has been incarcerated in a Pennsylvania prison, has garnered worldwide support from those who believe he was the victim of a biased justice system.

Abu-Jamal, a one-time journalist, garnered worldwide support from the "Free Mumia" movement. Hundreds of vocal supporters and death-penalty opponents regularly turn out for court hearings in his case, even though Abu-Jamal is rarely entitled to attend.
Shannon Faulker, Daniel's widow, has dealt with this for 30 years, and she and the prosecutors have agreed to drop the death penalty from the case.

Abu-Jamal will spend the rest of his days in prison.

Assad Denies Ordering Bloody Crackdown, Even As Murderous Regime Continues Continues Bloodletting

Bashar al Assad was interviewed by Barbara Walters for ABC News, and he vociferously denies ordering the bloody crackdown against protesters. Assad claims that the overwhelming majority of those killed are security forces, but that goes against everything that has trickled out of Syria that isn't controlled by the Syrian media (which is controlled by Assad's regime).
Assad, whose regime has been condemned by the West, the Arab League and former allies, dismissed suggestions that he step down and scoffed at sanctions being imposed on Syria.

His defiant stance was on display in an exclusive interview with ABC News' Barbara Walters who confronted the Syrian dictator in Damascus with stories and evidence of civilians being tortured and killed, some of them children.

"People went from house to house. Children were arrested. I saw those pictures," Walters said to Assad.

"To be frank with you, Barbara, I don't believe you," Assad said.

Walters asked Assad about the case of Hamza al-Khateeb, a 13-year-old boy detained by Syrian forces after a protest whose lifeless body was returned to his parents shot, burned and castrated. The boy's death galvanized protesters, and photos on the internet inflamed world opinion.

Assad denied the boy had been tortured. "No, no, no. It's not news," he insisted. "I met with his father, the father of that child and he said that he wasn't tortured as he appeared in the media."

The tide of pro-democracy protests sweeping the Arab world reached Syria in mid-March and news of violent clashes between protesters and government agents have leaked out of this tightly controlled dictatorship and on to the Internet. The bodies of the dead, some of them children, have been found bearing the marks of torture.

According to a United Nations report released last week, more than 4,000 people have been killed and the country is embroiled in an undeclared civil war, an assessment Assad dismissed with the question, "Who said that the United Nations is a credible institution?"
No one has any reason to trust anything coming from Assad's regime either. Assad has repeatedly claimed that he's instituted reforms, only to accelerate the crackdown against protesters.

The intensification of the crackdown has led some military forces to desert and join forces with the opposition to take up arms against Assad's regime; and in this way Assad could claim that the overwhelming majority of those killed are members of the military (he's just lumping together all those who went AWOL with the protesters, and those members of the military that are still loyal), but there's a huge discrepancy between the number he claims to have been killed in the ongoing protests against the regime and the number that the UN and human rights groups have ascribed to the violence.

Moreover, the composition of the death toll is markedly different; civilians are repeatedly targeted by the regime and the military continues operations against major cities in Syria, including Hama and Homs, inflicting casualties on civilian populations.

Assad would love to shift blame on to terror groups, but he has no one to blame but himself and his regime for the situation; he's playing from his father's Hama Rules playbook, but faces a modern communications network that allows opposition groups to get their message out despite restrictions by the regime. Assad can't control the message coming out of Syria, so he's forced to counter the claims by calling them lies.

Tuesday, December 06, 2011

Gov. Cuomo Strikes Tax Deal That WIll See Higher Taxes For Millionaires

The deal struck between legislative leaders and Gov. Andrew Cuomo will not completely replace revenues generated from the soon to be expired millionaire's surtax, but it will incorporate lower taxes for the middle class and a higher tax rate for those making over $2 million.
The state’s current income tax rates are relatively flat, taxing any individuals who earn $20,000 or more, as well as couples who earn $40,000 or more and file joint tax returns, at the same 6.85 percent rate.

For the last three years, individuals who earned more than $200,000 a year, and couples who earned more than $300,000, have also been subjected to a tax surcharge called a “millionaires’ tax.”

Under the proposal announced Tuesday, for married couples filing jointly, income from $40,000 to $150,000 would be taxed at 6.45 percent; from $150,000 to $300,000 at 6.65 percent; from $300,000 to $2 million at 6.85 percent, and over $2 million at 8.82 percent.

Changing the tax rates and brackets would allow the state to replace some, but not all, of the revenue to be lost when the so-called millionaires’ tax expires on Dec. 31.

Any increase in tax rates for the wealthy would mark a reversal for Mr. Cuomo, a Democrat, who ran for governor last year on a platform of opposing tax increases and said that increasing such taxes would hurt the state by motivating wealthy residents to move elsewhere.
Cuomo had run for office on a campaign that the state's financial problems were due to overspending and that revenues weren't the main problem. Well, this deal appears to have gone back on those earlier campaign statements. He's looking to generate revenues to close a budget deficit that is expected in the upcoming fiscal year and is doing so with a tax hike, rather than further spending cuts.

Considering that much of the state budget is dedicated to health care spending programs and transfer payments, there isn't much he can do unless the spending formulas are completely renegotiated, which is a huge mess even in prosperous times. At a time of financial strain, making changes to those formulas would be politically untenable since it would upset key unions and other key groups that are reliant on the funding.

The New York proposed tax rates are right in the range with neighboring states like New Jersey and Vermont, slightly higher than Connecticut for the top rate, and significantly higher than Pennsylvania and Massachusetts. In sum, I don't think there'll be much flight of high-income earners to other states as a result of the move, and the revenues generated will be comparable to the outgoing surtax.

Another way to view this is that anyone making up to $200,000/$300,000 will see a lower rate, and those making less than $2 million will see significantly lower rate once factoring in the expiring surtax, and only those in the true rich category will see anything approaching a hike.

Company That Bought Massey Energy Pays $200 Million Settlement Over Mining Disaster That Killed 29

Alpha Natural Resources, which purchased Massey Energy in June 2011, has agreed to a $209 million settlement in restitution and civil and criminal penalties for the role Massey Energy in the mining disaster in West Virginia that killed 29 miners.

Massey Energy flagrantly disregarded numerous safety rules and regulations in its operations at the mine, which led to the explosion and death of 29 miners.
The settlement, first reported by the Charleston Gazette, follows months of investigative work by federal officials from the Departments of Justice and Labor, as well as an independent commission appointed by the former West Virginia governor. The findings that had been made public placed the blame for the blast squarely on Massey and what investigators said was its reckless disregard for safety standards, but had stopped short of assigning criminal blame.

Tuesday’s announcement, which will be made public after federal investigators meet with families of the victims in West Virginia, will detail criminal responsibility, that Alpha, and in turn Massey, which it now owns, will accept.

In the past, Massey, which was purchased by Alpha in June, had dismissed investigators charges that its actions led directly to the disaster.

“It’s a record-level settlement,” said a former federal mine safety chief, J. Davitt McAteer, who conducted the independent state investigation, which issued the first findings about the explosion this year. “This is an amount that will get companies to pay attention. It has to affect their bottom line, otherwise it doesn’t mean anything.”

The settlement does not protect individual Massey managers, including the former chief executive, Don L. Blankenship, who have not been charged. In all 18 executives refused to be interviewed by federal investigators, invoking their Fifth Amendment rights.

In addition to the $46.5 million payout to victims and families, the agreement includes $80 million to bolster safety and infrastructure in all underground mines owned by Alpha and Massey; $48 million to establish a mine health and safety foundation to be used to finance academic research on mine safety; and about $35 million in fines and fees that Massey owed to the Mining, Safety and Health Administration, the branch of the Department of Labor that oversees the mining industry.

Under the terms of the agreement, Alpha must also put in place a plan that guarantees it has enough safety equipment, ventilation and methods of clearing potentially explosive rock dust out of all its underground mines within 90 days.

The company will be required to build a state-of-the-art training facility in West Virginia, including a mine lab where it will be able to simulate mining disasters.
The key detail here is that Alpha made the settlement after buying up Massey; Massey had done an insufficient job in dealing with the aftermath of the disaster. In many respects, Alpha is cleaning up the mess that Massey and its corporate leaders made. It's also good that Alpha is going to bolster safety and infrastructure at all its mining operations.

Monday, December 05, 2011

New Details Emerge In Iranian Mystery Missile Base Blast

A few weeks back, an Iranian missile-testing site at Bid Kaneh was rocked by a tremendous explosion that damaged the facility and killed workers associated with the missile program. New details have emerged about the base, which is located near Tehran, and what may have happened.
In interviews, current and former officials said surveillance photos showed that the Iranian base was a central testing center for advanced solid-fuel missiles, an assessment backed by outside experts who have examined satellite photos showing that the base was almost completely leveled in the blast. Such missiles can be launched almost instantly, making them useful to Iran as a potential deterrent against pre-emptive attacks by Israel or the United States, and they are also better suited than older liquid-fuel designs for carrying warheads long distances.

It is still unclear what caused the explosion, with American officials saying they believe it was probably an accident, perhaps because of Iran’s inexperience with a volatile, dangerous technology. Iran declared it an accident, but subsequent discussions of the episode in the Iranian news media have referred to the chief of Iran’s missile program as one of the “martyrs” killed in the huge explosion. Some Iranian officials have talked of sabotage, but it is unclear whether that is based on evidence or surmise after several years in which Iranian nuclear scientists have been assassinated on Tehran’s streets, and a highly sophisticated computer worm has attacked its main uranium production facility.

Both American and Israeli officials, in discussing the explosion in recent days, showed little curiosity about its cause. “Anything that buys us time and delays the day when the Iranians might be able to mount a nuclear weapon on an accurate missile is a small victory,” one Western intelligence official who has been deeply involved in countering the Iranian nuclear program said this weekend. “At this point, we’ll take whatever we can get, however it happens.”

In addition to providing a potential deterrent to attackers, Iran’s advances in solid-fuel missile technology, and the concern it could eventually have intercontinental reach, have been at the heart of the Obama administration’s insistence on the need for new missile-defense programs.
Here's a photo of the base before the explosion:

Here's a photo of the base following the explosion:

You can see significant damage to multiple structures, including two that look to have been completely obliterated by the explosion. The facility was apparently testing solid-rocket technologies, and no one seems to know what happened. There's some speculation that sabotage may have played a role, or that a US UAV strike hit the base, but that is mere rumor and unsupported by any evidence - even from an Iranian media that has no problem proffering bogus information as news (such as claiming it shot down US unmanned vehicles, or reporting that the US is carrying out more UAV airstrikes than has been reported - using the same information in each of the reports).