Category Archives: USA
Bruce Fein & Associates, Inc.
722 12th Street, N.W., 4th Floor
Washington, D.C. 20005
July 26, 2013
President Barack Obama
The White House
1600 Pennsylvania Avenue, N.W.
Washington, D.C. 20500
Re: Civil Disobedience, Edward J. Snowden, and the Constitution
Dear Mr. President:
You are acutely aware that the history of liberty is a history of civil disobedience to unjust laws or practices. As Edmund Burke sermonized, “All that is necessary for the triumph of evil is that good men do nothing.”
Civil disobedience is not the first, but the last option. Henry David Thoreau wrote with profound restraint in Civil Disobedience: “If the injustice is part of the necessary friction of the machine of government, let it go, let it go: perchance it will wear smooth certainly the machine will wear out. If the injustice has a spring, or a pulley, or a rope, or a crank, exclusively for itself, then perhaps you may consider whether the remedy will not be worse than the evil; but if it is of such a nature that it requires you to be the agent of injustice to another, then, I say, break the law. Let your life be a counter friction to stop the machine.”
Thoreau’s moral philosophy found expression during the Nuremburg trials in which “following orders” was rejected as a defense. Indeed, military law requires disobedience to clearly illegal orders.
A dark chapter in America’s World War II history would not have been written if the then United States Attorney General had resigned rather than participate in racist concentration camps imprisoning 120,000 Japanese American citizens and resident aliens.
Civil disobedience to the Fugitive Slave Act and Jim Crow laws provoked the end of slavery and the modern civil rights revolution.
We submit that Edward J. Snowden’s disclosures of dragnet surveillance of Americans under § 215 of the Patriot Act, § 702 of the Foreign Intelligence Surveillance Act Amendments, or otherwise were sanctioned by Thoreau’s time-honored moral philosophy and justifications for civil disobedience. Since 2005, Mr. Snowden had been employed by the intelligence community. He found himself complicit in secret, indiscriminate spying on millions of innocent citizens contrary to the spirit if not the letter of the First and Fourth Amendments and the transparency indispensable to self-government. Members of Congress entrusted with oversight remained silent or Delphic. Mr. Snowden confronted a choice between civic duty and passivity. He may have recalled the injunction of Martin Luther King, Jr.: “He who passively accepts evil is as much involved in it as he who helps to perpetrate it.” Mr. Snowden chose duty. Your administration vindictively responded with a criminal complaint alleging violations of the Espionage Act.
From the commencement of your administration, your secrecy of the National Security Agency’s Orwellian surveillance programs had frustrated a national conversation over their legality, necessity, or morality. That secrecy (combined with congressional nonfeasance) provoked Edward’s disclosures, which sparked a national conversation which you have belatedly and cynically embraced. Legislation has been introduced in both the House of Representatives and Senate to curtail or terminate the NSA’s programs, and the American people are being educated to the public policy choices at hand. A commanding majority now voice concerns over the dragnet surveillance of Americans that Edward exposed and you concealed. It seems mystifying to us that you are prosecuting Edward for accomplishing what you have said urgently needed to be done!
The right to be left alone from government snooping–the most cherished right among civilized people—is the cornerstone of liberty. Supreme Court Justice Robert Jackson served as Chief Prosecutor at Nuremburg. He came to learn of the dynamics of the Third Reich that crushed a free society, and which have lessons for the United States today.
Writing in Brinegar v. United States, Justice Jackson elaborated:
The Fourth Amendment states: “The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing
the place to be searched, and the persons or things to be seized.”
These, I protest, are not mere second-class rights but belong in the catalog of indispensable freedoms. Among deprivations of rights, none is so
effective in cowing a population, crushing the spirit of the individual and putting terror in every heart. Uncontrolled search and seizure is one of the
first and most effective weapons in the arsenal of every arbitrary government. And one need only briefly to have dwelt and worked among a people possessed of many admirable qualities but deprived of these rights to know that the human personality deteriorates and dignity and self-reliance
disappear where homes, persons and possessions are subject at any hour to unheralded search and seizure by the police.
We thus find your administration’s zeal to punish Mr. Snowden’s discharge of civic duty to protect democratic processes and to safeguard liberty to be unconscionable and indefensible.
We are also appalled at your administration’s scorn for due process, the rule of law, fairness, and the presumption of innocence as regards Edward.
On June 27, 2013, Mr. Fein wrote a letter to the Attorney General stating that Edward’s father was substantially convinced that he would return to the United States to confront the charges that have been lodged against him if three cornerstones of due process were guaranteed. The letter was not an ultimatum, but an invitation to discuss fair trial imperatives. The Attorney General has sneered at the overture with studied silence.
We thus suspect your administration wishes to avoid a trial because of constitutional doubts about application of the Espionage Act in these circumstances, and obligations to disclose to the public potentially embarrassing classified information under the Classified Information Procedures Act.
Your decision to force down a civilian airliner carrying Bolivian President Eva Morales in hopes of kidnapping Edward also does not inspire confidence that you are committed to providing him a fair trial. Neither does your refusal to remind the American people and prominent Democrats and Republicans in the House and Senate like House Speaker John Boehner, Congresswoman Nancy Pelosi, Congresswoman Michele Bachmann,and Senator Dianne Feinstein that Edward enjoys a presumption of innocence. He should not be convicted before trial. Yet Speaker Boehner has denounced Edward as a “traitor.”
Ms. Pelosi has pontificated that Edward “did violate the law in terms of releasing those documents.” Ms. Bachmann has pronounced that, “This was not the act of a patriot; this was an act of a traitor.” And Ms. Feinstein has decreed that Edward was guilty of “treason,” which is defined in Article III of the Constitution as “levying war” against the United States, “or in adhering to their enemies, giving them aid and comfort.”
You have let those quadruple affronts to due process pass unrebuked, while you have disparaged Edward as a “hacker” to cast aspersion on his motivations and talents. Have you forgotten the Supreme Court’s gospel in Berger v. United States that the interests of the government “in a criminal prosecution is not that it shall win a case, but that justice shall be done?”
We also find reprehensible your administration’s Espionage Act prosecution of Edward for disclosures indistinguishable from those which routinely find their way into the public domain via your high level appointees for partisan political advantage. Classified details of your predator drone protocols, for instance, were shared with the New York Times with impunity to bolster your national security credentials. Justice Jackson observed in Railway Express Agency, Inc. v. New York: “The framers of the Constitution knew, and we should not forget today, that there is no more effective practical guaranty against arbitrary and unreasonable government than to require that the principles of law which officials would impose upon a minority must be imposed generally.”
In light of the circumstances amplified above, we urge you to order the Attorney General to move to dismiss the outstanding criminal complaint against Edward, and to support legislation to remedy the NSA surveillance abuses he revealed. Such presidential directives would mark your finest constitutional and moral hour.
Counsel for Lon Snowden
It’s difficult to find a more wasteful government program.
For the last six years, the U.S. government has spent more than $24 million to fly a plane around Cuba and beam American-sponsored TV programming to the island’s inhabitants. But every day the plane flies, the government in Havana jams its broadcast signal. Few, if any, Cubans can see what it broadcasts.
The program is run by the U.S. Broadcasting Board of Governors, and for the last two years, it has asked Congress to scrap the program, citing its exorbitant expense and dubious cost-effectiveness. “The signal is heavily jammed by the Cuban government, significantly limiting this platform’s reach and impact on the island,” reads the administration’s fiscal year 2014 budget request.
But each year, hard-line anti-Castro members of Congress have rejected the recommendation and renewed funding for the program, called AeroMarti. Now, under the restrictions of government-wide belt-tightening, AeroMarti may finally die, but its fate has yet to be sealed.
“It’s hard to believe we are still wasting millions of taxpayer dollars on beaming a jammed TV signal – that fewer than 1 percent of Cubans can see – from an airplane to the island,” Sen. Jeff Flake (R-AZ) tells The Cable.
For Flake and fellow critics of the program, AeroMarti has called into question America’s decades-long information war against the Castro regime. But other Castro critics say the U.S. must continue to find ways to disseminate messaging onto the autocratic island.
At the moment, the AeroMarti twin-engine Gulfstream 1 plane is grounded in Georgia due to the automatic spending cuts known as sequestration. But the program’s ultimate fate will be determined by the House and Senate Appropriations Committees.
Under ordinary circumstances, the plane flies a figure eight pattern near the Communist island beaming hours and hours of TV and Radio Marti, a U.S.-financed broadcaster akin to Radio Free Europe. From 2006 to 2010, AeroMarti burned through $5 million every year. In 2010, its budget was reduced to around $2 million per year. One iteration of the program involved a C-130 military plane and another involved a blimp attached to a cable 10,000 feet above the Florida Keys. All told, the flights have racked up a tab well over $24 million to U.S. taxpayers.
“Proponents of the program say we can’t stop doing it because it would send a bad message to the Cuban government that we’re capitulating,” John Nichols, a communications professor at Penn State University, tells The Cable. “That’s bogus: It’s ineffective, it wastes a huge amount of money and the compromise we make to keep it on air, knowing it violates international law, is not at all worth it.”
Since its inception, the U.S. government has spent well over half a billion dollars to fund Marti programming, which first aired on radio in 1985 and on TV in 1990. The programming includes everything from baseball games to local news to weather reports to interviews with anti-Castro dissidents. Its staunchest supporters in the House and Senate include Sen. Robert Menendez (D-NJ), chairman of the Senate Foreign Relations Committee, and Rep. Ileana Ros-Lehtinen (R-FL).
Ros-Lehtinen, in particular, is known for insisting that AeroMarti continue flying despite its dubious effectiveness. When repeatedly asked about the program this month, she declined to comment.
Menendez is not known to have advocated for the plane specifically, but he is a supporter of Radio and TV Marti in general.
“I will continue to stand behind the mission of Radio and TV Marti until the Cuban government ceases to deprive its citizens of objective and uncensored media sources,” he told The Cable. “The Martis play a critical role in providing information to the Cuban people about events in and outside of Cuba, connecting with nearly a million Cubans every week. In this day and age, there are numerous platforms, new media tools, and technologies available to the Martís to fulfill and continue this integral mission, and I believe we should use every possible medium to break through the Castro regime’s censorship barriers.”
As it stands, the administration’s budget request specifies not continuing AeroMarti. It is now up to the congressional committees to object to the proposal, which none have done thus far.
But regardless of what happens, it won’t stop the programming of Radio and TV Marti as a whole. The BBG is enthusiastic about moving forward with other methods of getting its programming to Cuban viewers and listeners: disseminating DVDs, doling out flash drives, broadcasting via satellite and even offering a new smartphone app. The various work-arounds all carry Marti’s programming.
“We have evolved to what our market demands,” Carlos Garcia-Perez, director of the BBG’s Office of Cuba Broadcasting, tells The Cable. “We’re no longer just a TV and radio and internet operation, we’re a multimedia operation.”
In the past, Marti has come under criticism by critics such as Nichols who say its purpose is to peddle “anti-Castro propaganda.”
“Even if the propaganda plane reached its audience, there’s little evidence the Cuban people are going to spend their leisure time watching Cuban exiles snarl about Castro,” said Nichols.
Senator Flake told The Cable he is similarly opposed to the channel. “While the president’s most recent budget request would stop funding the flights, Congress should do the same with the TV Marti program as a whole,” he said.
Garcia-Perez rejects the notion that Cuban listeners aren’t interested in Marti’s offerings, and ticked off a range of news events — from the Venezuelan elections to the death of Osama bin Laden to the health struggles of Hugo Chavez — where audience records were broken. “In November 2010, our website got 500 hits per day,” he said. “Now it’s 7,000 per day, and when there’s a huge event going on it gets up to 15,000.” For a typical media organization, that’s not much to write home about, but Garcia-Perez says it’s a lot considering that Havana blocks its web pages, requiring readers to access copies of the site on proxy servers. He also claimed that his system of e-mails, text messages, flash drives and DVDs is capable of reaching 1 million Cubans on the island. “We’re here to provide the free-flow of information,” he said, noting the Castro regime’s draconian censorship of the press.
As for the content of Marti, other independent observers say its programming has improved in recent years under Garcia-Perez’s leadership, which has steered away from more transparent anti-Castro messaging. “I have been impressed with the reforms at Radio Marti and Marti Noticias since the new director took over and shifted away from propaganda toward a more hard news and debate format,” Ted Henken, a professor of Latino studies at Barch College, told The Cable. “They constantly interview people on the Island via phone and that’s made the reporting far more grounded.”
But despite differences about the value of Radio and TV Marti, there’s one thing almost everyone agrees on: Spending millions of dollars a year to fly a plane around Cuba is not the savviest use of taxpayer money.
When Lady Liberty Wept
By Gary Corseri
“Not like the brazen giant of Greek fame,” she recalled,
“With conquering limbs astride from land to land””
And yet, even so, it had come to pass,
With every military base, with drones
Hovering everywhere, in the drowned dreams
Of exiles, “refuse,” “yearning to breathe free.”
And what freedom now in the Surveillance State
Where every thought was subject to review
And “newsmen” scurried to assess the threat
From hydra-headed, huddled masses–lost,
Renditioned, imprisoned, killed at the behest
Of elected, cowardly Pinocchios,–
Smiling before drug-induced amnesiacs?
They could not remember who they claimed to be;
Nor why; nor how it mattered to posterity.
Only a looming sense of dread embalmed
Them in a kind of amber ghosts might study
In the years ahead–if there were years” ahead.
And so, she wept” as some say Mother Mary weeps;
As some say Rachel wept for her lost children.
Copper-colored tears from cupreous eyes;
Copious tears from her iron skeleton.
And the wind blew the tears upon her torch.
And the light went out.
By Gary Corseri – Copyright, 2013. Permission is granted for reprint in blog, or web media if this credit is attached and the title and contents remain unchanged. Gary Corseri has published novels and collections of poetry, and his dramas have appeared on Atlanta–PBS and elsewhere. He has taught in US public schools and prisons, and at US and Japanese universities. His work has appeared at periodicals and websites worldwide, and he has performed his work at the Carter Presidential Library.
Here is letter #5:
My name is Mike Eastwood, I’m just a 20-year-old kid from a small town in Oklahoma, but let me tell you my story. I come from a stable and mostly happy family life. I have two sisters (I’m a middle child) who graduated valedictorians of their high schools. I graduated with a 3.7 GPA from my 3A high school in 2009.
My older sister graduated in 2003 from a state college. She worked for the next five years but has been inconsistently employed and predominantly unemployed since 2008, when she moved to San Diego to join her husband who was stationed there by the Marines. All the while, she’s been trying to pay off the $90,000 in student loans she racked up while trying to get a degree in pharmaceuticals that she is not able to use.
I am still going through college, attempting a degree in history. I decided to go to a community college after high school to avoid debt. I’ve been attending classes that do not challenge me intellectually in any way because, frankly, I was and am too scared of the debt that comes from a decent school. I do this in hopes that I can someday be a teacher, though I know that is a career that will leave me in debt for the rest of my life, regardless of how hard I work. My younger sister just graduated (again, a valedictorian with a 4.0 GPA) and she chose not to go to college after seeing the debt involved in getting a degree, as well as numerous examples of people racking up debt for a degree that doesn’t help them move forward in life. Each of us attempted and qualified for many scholarships but none of us qualified for PELL Grants or FAFSA Student Aid. Our parents combined (my mother is a teacher, my father runs a collating machine) make about $65,000 a year, putting us just out of reach of any federal assistance.
Why do I mention this to you? Goldman Sachs doesn’t have anything to do with school directly and I can’t place the blame for our debts on the shoulders of your corporation, nor would I try to. I tell you this because I want to show the state and cost of education, even at a local level, and far more importantly, I want to bring to your awareness the lives of those people who seem to have slipped beyond the vision of you and your fellow executives. My sister, with $90,000 in total student loans and paying a bit above the minimum payment (minimum payment is $345 a month; she pays $400) and paying against an 8.9% annual interest rate, cannot successfully pay off that student loan during her lifetime, assuming she is forced to continue working for K-Mart. And to perhaps offer a bit more perspective on her situation, she works forty hours a week at the minimum wage of $7.25, which earns her roughly $780 a month. Just repaying her student loans costs her more than half of her total income and it’s a payment that will never end.
Again, this isn’t your fault. She didn’t make the job market for those entering the field of pharmaceuticals plummet. And again, I do not blame Goldman Sachs for these problems. Allow me to give another example. As I said before, I’m only 20 years old. I was diagnosed with juvenile diabetes in April of this year. Type-1 diabetes means I’ll have to take insulin shots for the rest of my life, avoid some foods, and remove other foods from my diet completely. I was diagnosed after attending a local soccer game where I fell unconscious while sitting and watching. My blood sugar had gotten so high that the fact I hadn’t had a stroke was a true miracle (1,115, in case you’re curious.) This serious medical problem and diagnosis cost me $2,470. I will also have to pay nearly $160 a month for all of my insulin and diabetes supplies. I don’t have health care myself, but fortunately, because I’m under 24 and thanks to the new laws passed in 2010, I can remain listed on my mother’s health insurance. Unfortunately, my mother is a teacher and her coverage is not all that great. On top of my now $15,000 in school debt and the $1,045 loan I took out last January to cover the cost of my and my fiancé’s bills for a month when she was out of work, I’m in a lot of debt for a kid who was only in high school two years ago, and it is especially high considering that I live in a one-bedroom apartment with my fiancé, I drive a beat-up Pontiac Sunbird, and try desperately not to exceed my means.
I want to stress that I don’t blame Goldman Sachs for these problems; I’m not trying to insinuate in any way that you are at fault for this debt or these problems in my life or my family’s lives. What I do want to show you is the gap between the lives of everyday Americans and the lives you all lead as the executives of such a prestigious operation. Between your lives and the lives of those of us who have had to struggle and fight for every bit of happiness we have.
You’ve influenced our government elections using more than $11,200,000 for the sake of your own interests, leaving the American people with no other alternative but to watch and pray it all gets better. Your profits in 2010 were about $21,700,000,000. My siblings and I made a combined $31,859 and, with my parents’ income, that’s $96,859. This is barely enough to pay back my older sister’s student loans. My family, with the possible exception of my father, is well-educated, hardworking, and politically involved, and yet there is no light at the end of the tunnel. “Work hard and you’ll have a good life” is a cruel axiom.
The reason I sent you this message is so that you might read it and understand that we are frustrated by our lives, by the fact that a huge portion or our incomes are taken away for the sake of supporting federal and state governments that ignore the people they are supposed to represent, and that ignore them because global business juggernauts have the ability to simply buy a vote. Your corporate tax breaks are ridiculous. Your unlimited access to involvement in the affairs of the politics that are supposed to allow the people to improve the quality of their own lives is cruel and unfair. Most of all, your ignorance of the trials and hardships of the average American is unforgivable.
Please understand why we stand in the streets with signs. It is not for handouts, it’s not to taunt or torment the rich, and it’s most certainly not because a bunch of lazy, uneducated hippies want to lay blame on the shoulders of giant corporations. It’s because our lives are in shambles and because you have taken from us our only outlet for change. So we forge a new outlet and we stand shoulder to shoulder in solidarity. Let us change, begin to change yourselves, so that we will again have the American Dream.
Michael EastwoodBartlesville, Oklahoma 74003
* Abby Joseph Cohen (born 1952 in Queens, New York) is an American economist and financial analyst on Wall Street. She is a partner and—as of March 2008—Senior U.S. investment strategist at Goldman Sachs responsible for leadership of the firm’s Global Markets Institute. Prior to that date, she was Chief Investment Strategist. In 2001 she was named one of the 30 most powerful women in America by Ladies Home Journal. (from Wikipedia)
Fort Meade, MD – The United States has had, clearly, a bit of an issue with whistleblowers in recent years. The newest and biggest one, perhaps the most damaging, is still ongoing but there is still another one playing out in the courts, the saga of Bradley Manning which is rapidly coming to a conclusion.
After weeks of testimony and legal finagling, yesterday Judge Denise Lind retired to her chambers to deliberate in the remaining charges against Manning. Some of the initial crime with which he was charged Manning has pled guilty to, but others still stand and many of them are very, very serious.
Now Manning will await his fate, judge by a single person and not by a jury of his peers, this being a military court and all, which could very well result in a conviction for the 25-year old Manning. Actually, given the politically charged atmosphere of the case and there really being no other option, it’s pretty much guaranteed that he will be found guilty on all the charges, heck there’s no real reason to even bother with the deliberation, it’s going to happen.
“He’s not seeking attention. He’s saying he’s willing to accept the price. That is a whistleblower, period. That is somebody who wants to inform the American public,”said Manning’s lawyer David Coombs upon concluding his case.
Really, little of what Manning leaked mattered all that much save for a single video showing U.S. troops gunning down Reuters reporters, which was a little embarrassing.
Despite a willingness to take responsibility for his actions, it’s believed that Manning would still prefer to not go to jail for the rest of his life.
“I think it’s pretty clear what the judge’s decision is going to be since this case is what it is. I mean this is no small thing, not tiny little event that just happened to happen. Aside from the trouble that it cause, giving him release could give other people so inclined to do the same thing, and that is not something anyone wants I would think,” said Scrape TV Legal analyst Gabe Hawthorne. “This is one of those cases where the law is actually not totally relevant to the outcome, what matters is what people want and people want Manning to go to prison for a long time. Manning obviously not but he doesn’t really get a say.”
Manning has said on multiple occasions, perhaps even to the judge, that he would prefer to stay out of prison if that is possible.
“It’s really a sticky situation where what is right legally is not necessarily in lock step with what people seem to want. Often that results in people getting angry, but that is unlikely here because Manning acted against the government. Perhaps if the information belonged to a young black kid if Florida he would be okay, but the U.S. government is a different animal,” continued Hawthorne. “That is really what has gotten him in the most trouble, who he went up against. A lesser agency and everything would have been fine because what he did wasn’t really that bad, but he made the government look bad and when that happens they will seek revenge, and have it most likely.”
The judge is believed to be just waiting around to announce the decision she made before the trial started
At a time when much of the world is looking with a mix of envy and excitement at the recent boom in USA unconventional gas from shale rock, when countries from China to Poland to France to the UK are beginning to launch their own ventures into unconventional shale gas extraction, hoping it is the cure for their energy woes, the US shale boom is revealing itself to have been a gigantic hyped confidence bubble that is already beginning to deflate. Carpe diem!
America: The New Saudi Arabia?
If we’re to believe the current media reports out of Washington and the US oil and gas industry, the United States is about to become the “new Saudi Arabia.” We are told she is suddenly and miraculously on the track to energy self-sufficiency. No longer need the US economy depend on high-risk oil or gas from the politically unstable Middle East or African countries. The Obama White House energy adviser, Heather Zichal, has even shifted her focus from pushing carbon cap ‘n trade schemes to promoting America’s “shale revolution.”
In his January 2012 State of the Union Address to Congress, President Obama claimed that, largely owing to the shale gas revolution, “We have a supply of natural gas that can last America nearly 100 years.” 
Renowned energy experts like Cambridge Energy Research’s Daniel Yergin in recent Congressional testimony waxed almost poetic about the purported benefits of the recent US shale oil and gas exploitation: “The United States is in the midst of the ‘unconventional revolution in oil and gas’ that, it becomes increasingly apparent, goes beyond energy itself.” He didn’t explain what exactly energy going beyond energy itself means. He also claimed that “the industry supports 1.7 million jobs – a considerable accomplishment given the relative newness of the technology. That number could rise to 3 million by 2020.” Very impressive numbers.
Mr Yergin went on to suggest a major geopolitical dimension of America’s shale oil and gas industry, saying “expansion of US energy exports will add an additional dimension to US influence in the world…Shale gas has risen from two percent of domestic production a decade ago to 37 percent of supply, and prices have dropped dramatically. US oil output, instead of continuing its long decline, has increased dramatically – by about 38 percent since 2008. Just the increase since 2008 is equivalent to the entire output of Nigeria, the seventh-largest producing country in OPEC…People talk about the potential geopolitical impact of the shale gas and tight oil. That impact is already here…”
In their Energy Outlook to 2030, published in 2012, BP’s CEO Bob Dudley sounded a similar upbeat projection of the role of shale gas and oil in making North America energy independent of the Middle East. BP predicted that growth in shale oil and gas supplies—“along with other fuel sources”—will make the western hemisphere virtually self-sufficient in energy by 2030. In a development with enormous geopolitical implications, a large swath of the world including North and South America would see its dependence on oil imports from potentially volatile countries in the Middle East and elsewhere disappear, BP added.
There’s only one thing wrong with all the predictions of a revitalized United States energy superpower flooding the world with its shale oil and shale gas. It’s based on a bubble, on hype from the usual Wall Street spin doctors. In reality it is becoming increasingly clear that the shale revolution is a short-term flash in the energy pan, a new Ponzi fraud, carefully built with the aid of the same Wall Street banks and their “market analyst” friends, many of whom brought us the 2000 “dot.com” bubble and, more spectacularly, the 2002-2007 US real estate securitization bubble. A more careful look at the actual performance of the shale revolution and its true costs is instructive.
One reason we hear little about the declining fortunes of shale gas and oil is that the boom is so recent, reaching significant proportions only in 2009-2010. Long-term field extraction data for a significant number of shale gas wells only recently is coming to light. Another reason is that there have grown up huge vested corporate interests from Wall Street to the oil industry who are trying everything possible to keep the shale revolution myth alive. Despite all their efforts however, data coming to light, mostly for the review of industry professionals, is alarming.
Shale gas has recently come onto the gas market in the US via use of several combined techniques developed among others by Dick Cheney’s old company, Halliburton Inc. Halliburton several years ago combined new methods for drilling in a horizontal direction with injection of chemicals and “fracking,” or hydraulic fracturing of the shale rock formations that often trap volumes of natural gas. Until certain changes in the last few years, shale gas was considered uneconomical. Because of the extraction method, shale gas is dubbed unconventional and is extracted in far different ways from conventional gas.
The US Department of Energy’ EIA defines conventional oil and gas as oil and gas “produced by a well drilled into a geologic formation in which the reservoir and fluid characteristics permit
the oil and natural gas to readily flow to the wellbore.” Conversely, unconventional hydrocarbon production doesn’t meet these criteria, either because geological formations present a very low level of porosity and permeability, or because the fluids have a density approaching or even exceeding that of water, so that they cannot be produced, transported, and refined by conventional methods. By definition then, unconventional oil and gas are far more costly and difficult to extract than conventional, one reason they only became attractive when oil prices soared above $100 a barrel in early 2008 and more or less remained there.
To extract the unconventional shale gas, a hydraulic fracture is formed by pumping a fracturing fluid into the wellbore at sufficient pressure causing the porous shale rock strata to crack. The fracture fluid, whose precise contents are usually company secret and extremely toxic, continues further into the rock, extending the crack. The trick is to then prevent the fracture from closing and ending the supply of gas or oil to the well. Because in a typical fracked well fluid volumes number in millions of gallons of water, water mixed with toxic chemicals, fluid leak-off or loss of fracturing fluid from the fracture channel into the surrounding permeable rock takes place. If not controlled properly, that fluid leak-off can exceed 70% of the injected volume resulting in formation matrix damage, adverse formation fluid interactions, or altered fracture geometry and thereby decreased production efficiency.
Hydraulic fracturing has recently become the preferred US method of extracting unconventional oil and gas resources. In North America, some estimate that hydraulic fracturing will account for nearly 70% of natural gas development in the future.
Why have we just now seen the boom in fracking shale rock to get gas and oil? Thank then-Vice president Dick Cheney and friends. The real reason for the recent explosion of fracking in the United States was passage of legislation in 2005 by the US Congress that exempted the oil industry’s hydraulic fracking, astonishing as it sounds, from any regulatory supervision by the US Environmental Protection Agency (EPA) under the Safe Drinking Water Act. The oil and gas industry is the only industry in America that is allowed by EPA to inject known hazardous materials – unchecked – directly into or adjacent to underground drinking water supplies.
The 2005 law is known as the “Halliburton Loophole.” That’s because it was introduced on massive lobbying pressure from the company that produces the lion’s share of chemical hydraulic fracking fluids – Dick Cheney’s old company, Halliburton. When he became Vice President under George W. Bush in early 2001, Cheney immediately got Presidential responsibility for a major Energy Task Force to make a comprehensive national energy strategy. Aside from looking at Iraq oil potentials as documents later revealed, the energy task force used Cheney’s considerable political muscle and industry lobbying money to win exemption from the Safe Drinking Water Act. 
During Cheney’s term as vice president he moved to make sure the Government’s Environmental Protection Agency (EPA) would give a green light to a major expansion of shale gas drilling in the US.
In 2004 the EPA issued a study of the environmental effects of fracking. That study has been called “scientifically unsound” by EPA whistleblower Weston Wilson. In March of 2005, EPA Inspector General Nikki Tinsley found enough evidence of potential mishandling of the EPA hydraulic fracturing study to justify a review of Wilson’s complaints. The Oil and Gas Accountability Project conducted a review of the EPA study which found that EPA removed information from earlier drafts that suggested unregulated fracturing poses a threat to human health, and that the Agency did not include information that suggests “fracturing fluids may pose a threat to drinking water long after drilling operations are completed.” Under political pressure the report was ignored. Fracking went full-speed ahead.
© n/a Fracking toxic waste. This diagram depicts methane gas and toxic water contaminating the drinking water as the fracturing cracks penetrate the water table.
The Halliburton Loophole is no minor affair. The process of hydraulic fracking to extract gas involves staggering volumes of water and of some of the most toxic chemicals known. Water is essential to shale gas fracking. Hydraulic fracturing uses between 1.2 and 3.5 million US gallons (4.5 and 13 million liters) of water per well, with large projects using up to 5 million US gallons (19 Million liters). Additional water is used when wells are refractured; this may be done several times. An average well requires 3 to 8 million US gallons of water over its lifetime. Entire farm regions of Pennsylvania and other states with widespread hydraulic fracking report their well water sources have become so toxic as to make the water undrinkable. In some cases fracked gas seeps into the home via the normal water faucet.
© Screenshot from HBO film Gasland – Rural resident flicking on cigarette lighter next to his kitchen faucet and watching his drinking water, infused with gas and chemicals, ignite in flames as high as 3 feet.
During the uproar over the BP Deepwater Horizon Gulf of Mexico oil spill, the Obama Administration and the Energy Department formed an Advisory Commission on Shale Gas, ostensibly to examine the growing charges of environmental hazards from shale gas practices.
Their report was released in November 2011. It was what could only be called a “whitewash” of the dangers and benefits of shale gas.
The commission was headed by former CIA director John M. Deutch. Deutch himself is not neutral. He sits on the board of the LNG gas company Cheniere Energy. Deutch’s Cheniere Energy’s Sabine Pass project is one of only two current US projects to create an LNG terminal to export US shale gas to foreign markets.
Deutch is also on the board of Citigroup, one of the world’s most active energy industry banks, tied to the Rockefeller family. He also sits on the board of Schlumberger, which along with Halliburton, is one of the leading companies doing hydraulic fracking. In fact, of the seven panel members, six had ties to the energy industry, including fellow Deutch panel member and shale fracking booster, Daniel Yergin, himself a member of the National Petroleum Council. Little surprise that the Deutch report called shale gas, “the best piece of news about energy in the last 50 years.” Deutch added, “Over the long term it has the potential to displace liquid fuels in the United States.” 
Shale gas: Racing against the Clock
With regulatory free-rein, now also backed by the Obama Administration, the US oil and gas industry went full-power into shale gas extraction, taking advantage of high oil and natural gas prices to reap billions in quick gains.
According to official US Department of Energy Energy Information Administration data, shale gas extraction ballooned from just under 2 million MCF in 2007, the first year data was tracked, to more than 8,500,000 Mcf by 2011, a fourfold rise to comprise almost 40% of total dry natural gas extraction in the USA that year. In 2002 shale gas was a mere 3% of total gas.
Here enters the paradox of the US “shale gas revolution.” Since the days of oil production wars more than a century ago, various industry initiatives had been created to prevent oil and later gas price collapse due to over-production. During the 1930’s there was discovery of the huge East Texas oilfields, and a collapse of oil prices. The State of Texas, whose Railroad Commission (TRC) had been given regulatory powers not only over railroads but also over oil and gas production in what then was the world’s most important oil producing region, was called in to arbitrate the oil wars. That resulted in daily statewide production quotas so successful that OPEC later modeled itself on the TRC experience.
Today, with federal deregulation of the oil and gas industry, such extraction controls are absent as every shale gas producer from BP to Chesapeake Energy, Anadarko Petroleum, Chevron, Encana and others all raced full-tilt to extract the maximum shale gas from their properties.
The reason for the full-throttle extraction is telling. Shale Gas, unlike conventional gas, depletes dramatically faster owing to its specific geological location. It diffuses and becomes impossible to extract without the drilling of costly new wells.
The result of the rapidly rising volumes of shale gas suddenly on the market was a devastating collapse in the market price of that same gas. In 2005 when Cheney got the EPA exemption that began the shale boom, the marker US gas price measured at Henry Hub in Louisiana, at the intersection of nine interstate pipelines, was some $14 per thousand cubic feet. By February 2011 it had plunged amid a gas glut to $3.88. Currently prices hover around $3.50 per tcf.
In a sobering report, Arthur Berman, a veteran petroleum geologist specialized in well assessment, using existing well extraction data for major shale gas regions in the US since the boom started, reached sobering conclusions. His findings point to a new Ponzi scheme which well might play out in a colossal gas bust over the next months or at best, the next two or three years. Shale gas is anything but the “energy revolution” that will give US consumers or the world gas for 100 years as President Obama was told.
Berman wrote already in 2011, “Facts indicate that most wells are not commercial at current gas prices and require prices at least in the range of $8.00 to $9.00/mcf to break even on full-cycle prices, and $5.00 to $6.00/mcf on point-forward prices. Our price forecasts ($4.00-4.55/mcf average through 2012) are below $8.00/mcf for the next 18 months. It is, therefore, possible that some producers will be unable to maintain present drilling levels from cash flow, joint ventures, asset sales and stock offerings.” 
Berman continued, “Decline rates indicate that a decrease in drilling by any of the major producers in the shale gas plays would reveal the insecurity of supply. This is especially true in the case of the Haynesville Shale play where initial rates are about three times higher than in the Barnett or Fayetteville. Already, rig rates are dropping in the Haynesville as operators shift emphasis to more liquid-prone objectives that have even lower gas rates. This might create doubt about the paradigm of cheap and abundant shale gas supply and have a cascading effect on confidence and capital availability.” 
What Berman and others have also concluded is that the gas industry key players and their Wall Street bankers backing the shale boom have grossly inflated the volumes of recoverable shale gas reserves and hence its expected supply duration. He notes, “Reserves and economics depend on estimated ultimate recoveries (EUR) based on hyperbolic, or increasingly flattening, decline profiles that predict decades of commercial production. With only a few years of production history in most of these plays, this model has not been shown to be correct, and may be overly optimistic….Our analysis of shale gas well decline trends indicates that the Estimated Ultimate Recovery per well is approximately one-half the values commonly presented by operators.” In brief, the gas producers have built the illusion that their unconventional and increasingly costly shale gas will last for decades.
Basing his analysis on actual well data from major shale gas regions in the US, Berman concludes however, that the shale gas wells decline in production volumes at an exponential rate and are liable to run out far faster than being hyped to the market. Could this be the reason financially exposed US shale gas producers, loaded with billions of dollars in potential lease properties bought during the peak of prices, have recently been desperately trying to sell off their shale properties to naïve foreign or other investors?
Three decades of natural gas extraction from tight sandstone and coal-bed methane show that profits are marginal in low permeability reservoirs. Shale reservoirs have orders of magnitude lower reservoir permeability than tight sandstone and coal-bed methane. So why do smart analysts blindly accept that commercial results in shale plays should be different? The simple answer is found in high initial production rates. Unfortunately, these high initial rates are made up for by shorter lifespan wells and additional costs associated with well re-stimulation. Those who expect the long-term unit cost of shale gas to be less than that of other unconventional gas resources will be disappointed…the true structural cost of shale gas production is higher than present prices can support ($4.15/mcf average price for the year ending July 30, 2011), and that per-well reserves are about one-half of the volumes claimed by operators. 
Therein lies the explanation for why a sophisticated oil industry in the United States has desperately been producing full-throttle, in a high-stakes game laying the seeds of their own bankruptcy in the process—They are racing to offload the increasingly unprofitable shale assets before the bubble finally bursts. Wall Street financial backers are in on the Ponzi game with billions at stake, much as in the recent real estate securitization fraud.
One Hundred Years of Gas?
Where then did someone get the number to tell the US President that America had 100 years of gas supply? Here is where lies, damn lies and statistics play a crucial role. The US does not have 100 years of natural gas supply from shale or unconventional sources. That number came from a deliberate blurring by someone of the fundamental difference between what in oil and gas is termed resources and what is called reserves.
A gas or oil resource is the totality of the gas or oil originally existing on or within the earth’s crust in naturally occurring accumulations, including discovered and undiscovered, recoverable and unrecoverable. It is the total estimate, irrespective of whether the gas or oil is commercially recoverable. It’s also the least interesting number for extraction.
On the other hand “recoverable” oil or gas refers to the estimated volume commercially extractable with a specific technically feasible recovery project, a drilling plan, fracking program and the like. The industry breaks the resources into three categories: reserves, which are discovered and commercially recoverable; contingent resources, which are discovered and potentially recoverable but sub-commercial or non-economic in today’s cost-benefit regime; and prospective resources, which are undiscovered and only potentially recoverable.
The Potential Gas Committee (PGC), the standard for US gas resource assessments, uses three categories of technically recoverable gas resources, including shale gas: probable, possible and speculative.
According to careful examination of the numbers it is clear that the President, his advisers and others have taken the PGC’s latest total of all three categories, or 2,170 trillion cubic feet (Tcf) of gas—probable, possible and purely speculative—and divided by the 2010 annual consumption of 24 Tcf. To get a number between 90 and 100 years of gas. What is conveniently left unsaid is that most of that total resource is in accumulations too small to be produced at any price, inaccessible to drilling, or is too deep to recover economically.
Arthur Berman in another analysis points out that if we use more conservative and realistic assumptions such as the PGC does in its detailed assessment, more relevant is the Committee’s probable mean resources value of 550 (Tcf) of gas. In turn, if we estimate, also conservatively and realistically based on experience, that about half of this resource actually becomes a reserve (225 Tcf), then the US has approximately 11.5 years of potential future gas supply at present consumption rates.
If we include proved reserves of 273 Tcf, there is an additional 11.5 years of supply for a total of almost 23 years. It is worth noting that proved reserves include proved undeveloped reserves which may or may not be produced depending on economics, so even 23 years of supply is tenuous. If consumption increases, this supply will be exhausted in less than 23 years.
There are also widely differing estimates within the US Government over shale gas recoverable resources. The US Department of Energy EIA uses a very generous calculation for shale gas average recovery efficiency of 13% versus other conservative estimates of about half that or 7% in contrast to recovery efficiencies of 75-80% for conventional gas fields. The generously high recovery efficiency values used for EIA calculations allows the EIA to project an estimate of 482 tcf of recoverable gas for the US. In August 2011, the Interior Department’s US Geological Survey (USGS) released a far more sober estimate for the large shale plays in Pennsylvania and New York called Marcellus Shale. The USGS estimated there are about 84 trillion cubic feet of technically-recoverable natural gas under the Marcellus Shale. Previous estimates from the Energy Information Administration put the figures at 410 trillion cubic feet.
Shale gas plays show unusually high field decline rates with very steep trends, a combination giving low recovery efficiencies. 
Huge shale gas losses
Given the abnormally rapid well decline rates and low recovery efficiencies, it is little wonder that once the euphoria subsided, shale gas producers found themselves sitting on a financial time-bomb and began selling assets to unwary investors as fast as possible.
In a very recent analysis of the actual results of several years of shale gas extraction in the USA as well as the huge and high-cost Canadian Tar Sands oil, David Hughes notes, “Shale gas production has grown explosively to account for nearly 40 percent of US natural gas production. Nevertheless, production has been on a plateau since December 2011; 80 percent of shale gas production comes from five plays, several of which are in decline. The very high decline rates of shale gas wells require continuous inputs of capital—estimated at $42 billion per year to drill more than 7,000 wells—in order to maintain production. In comparison, the value of shale gas produced in 2012 was just $32.5 billion.”
He adds, “The best shale plays, like the Haynesville (which is already in decline) are relatively rare, and the number of wells and capital input required to maintain production will increase going forward as the best areas within these plays are depleted. High collateral environmental impacts have been followed by pushback from citizens, resulting in moratoriums in New York State and Maryland and protests in other states. Shale gas production growth has been offset by declines in conventional gas production, resulting in only modest gas production growth overall. Moreover, the basic economic viability of many shale gas plays is questionable in the current gas price environment.”
If these various estimates are anywhere near accurate, the USA has a resource in unconventional shale gas of anywhere between 11 years and 23 years duration and unconventional oil of perhaps a decade before entering steep decline. The recent rhetoric about US “energy independence” at the current technological state is utter nonsense.
The drilling boom which resulted in this recent glut of shale gas was in part motivated by “held-by-production” shale lease deals with landowners. In such deals the gas company is required to begin drilling in a lease running typically 3-5 years, or forfeit. In the US landowners such as farmers or ranchers typically hold subsurface mineral rights and can lease them out to oil companies. The gas (or oil) company then is under enormous pressure to book gas reserves on the new leases to support company stock prices on the stock market against which it has borrowed heavily to drill.
This “drill or lose it” pressure typically has led companies to seek the juiciest “sweet spots” for fast spectacular gas flows. These are then typically promoted as “typical” of the entire play.
However, as Hughes points out, “High productivity shale plays are not ubiquitous, and relatively small sweet spots within plays offer the most potential. Six of thirty shale plays provide 88 percent of production. Individual well decline rates are high, ranging from 79 to 95 percent after 36 months. Although some wells can be extremely productive, they are typically a small percentage of the total and are concentrated in sweet spots.” 
One estimate of projected shale gas decline suggests the peak will pass well before the end of the decade, perhaps in four years, followed with a rapid decline in volume
The extremely rapid overall gas field declines require from 30 to 50 percent of production to be replaced annually with more drilling, a classic “tiger chasing its tail around the tree” syndrome. This translates to $42 billion of annual capital investment just to maintain current production. By comparison, all USA shale gas produced in 2012 was worth about $32.5 billion at a gas price of $3.40/mcf (which is higher than actual well head prices for most of 2012). That means about a net $10 billion loss on their shale gambles last year for all US shale gas producers.
Even worse, Hughes points out that capital inputs to offset field decline will necessarily increase going forward as the sweet spots within plays are drilled off and drilling moves to lower quality areas. Average well quality (as measured by initial productivity) has fallen nearly 20 percent in the Haynesville, the most productive shale gas play in the US. And it is falling or flat in eight of the top ten plays. Overall well quality is declining for 36 percent of US shale gas production and is flat for 34 percent.
Not surprising in this context, the major shale gas players have been making massive write-downs of their assets to reflect the new reality. Companies began in 2012 reassessing their reserves and, in the face of a gas spot price that was cut in half between July 2011 and July 2012, are being forced to admit that the long-term outlook for natural-gas prices is not positive. The write-downs have a domino effect as bank lending is typically tied to a company’s reserves meaning many companies are being forced to renegotiate credit lines or make distress asset sales to raise cash.
Beginning August 2012, many large shale gas producers in the US were forced to announce major write-downs of the value of their shale gas assets. BP announced write-downs of $4.8 billion, including a $1 billion-plus reduction in the value of its American shale gas assets. England’s BG Group made a $1.3 billion write-down of its US shale gas interests, and Encana, a large Canadian shale gas operator made a $1.7 billion write-down on shale assets in the US and Canada, accompanied by a warning that more were likely if gas prices did not recover. 
The Australian mining giant BHP Billiton is one of the worst hit in the US shale gas bubble as it came in late and big-time. In May, 2012 it announced it was considering taking impairments on the value its US shale-gas assets which it had bought at the peak of the shale gas boom in 2011, when the company paid $4.75 billion to buy shale projects from Chesapeake Energy and acquiring Petrohawk Energy for $15.1 billion.
But by far the worst hit is the once-superstar of shale gas, Oklahoma-based Chesapeake Energy.
Part VI: Chesapeake Energy: The Next Enron?
The company by most accounts that typifies this shale gas boom-bust bubble is the much-hailed leading player in shale, Chesapeake Energy. In August 2012 there were widespread rumors that the company would declare bankruptcy. That would have been embarrassing for the company that was the nation’s second largest gas producer. It would also have signaled to the world the hype that was behind promotion of a “shale energy revolution” from the likes of Yergin and the Wall Street energy promoters looking to earn billions on M&A and other deals in the sector to replace their dismal real estate experiences.
In May 2012, Bill Powers of the Powers Energy Investor, wrote of Chesapeake (CHK by its stock symbl): “Over the past year, however, CHK’s business model has broken down. The company’s shares continue to break to 52-week lows and the company has a funding issue—financial speak for the company is running out of money. While it was able to farm-out a portion of its Utica Shale assets in Ohio to France’s Total last year—this is remarkable given the accounting errors that resulted in Total receiving significantly less revenue from their Barnett Shale joint-venture—CHK has largely run out of prospective acreage to farm-out.” Powers estimated a $3 billion cash shortfall in 2012 for the company. That comes atop already huge corporate debt of $11.1 billion of which $1.7 billion was a revolving line of credit. 
Powers adds, “When the off-balance sheet debt and preferred issues are added to the company’s existing $11.1 billion of on-balance sheet debt, CHK’s has a whopping $20.5 billion of financial obligations. Given such a high level of indebtedness, CHK debt is rated junk and will be for the foreseeable future. “ He concludes, “Having America’s second largest natural gas producer as well as its most reckless destroyer of shareholder capital almost completely walk away from the shale gas business is a great indication that today’s natural gas price bubble is on the verge of popping. CHK has not made any money by drilling shale wells—and neither have virtually any of its peers—and now the dumb money has run out.” 
Angry shareholders forced a major shakeup of the Chesapeake board last September after a Reuters report that CEO Aubrey McClendon had been taking out large loans not fully disclosed to the company’s board or investors. McClendon was forced to resign as Chairman of the company he founded after details leaked out that McClendon has borrowed as much as $1.1 billion in the last three years by pledging his stake in the company’s oil and natural gas wells as collateral. In March 2013 the US Government Securities and Exchange Commission (SEC) announced that it was investigating the company and Chief Executive Aubrey McClendon and had issued subpoenas for information and testimony, among other items looking into a controversial program that grants McClendon a share in every well that Chesapeake drills.
The company is in the midst of a major asset sale of an estimated $6.9 billion to lower debt, including oil and gasfields covering roughly 2.4 million acres. It must invest heavily in drilling new wells to deliver the increased production of more lucrative oil and natural gas liquids, if it is to avoid bankruptcy. As one critical analyst of Chesapeake put it, “the company’s complex accounting methods make it almost impossible for analysts and stockholders to determine what the risks really are. The fact that the CEO is taking out billion-dollar loans and not openly disclosing them only furthers the perception that everything is not as it appears at Chesapeake – that the company is Enron with drilling rigs.” 
The much-touted shale gas revolution in the USA is collapsing along with the stock shares of Chesapeake and other key players.
F. William Engdahl is author of Myths, Lies and Oil Wars. He can be contacted via his website atwww.williamengdahl.com
 Roberta Rampton, Energy Policy Shifting as abundance replaces scarcity: Obama adviser, Reuters, February 25, 2013.
 President Barack Obama, President Obama’s State of the Union Address , January 25, 2012, The New York Times, January 24, 2012, accessed in http://www.nytimes.com/interactive/2012/01/24/us/politics/state-of-the-union-2012-video-transcript.html.
 Daniel Yergin, Subcommittee on Energy and Power of the House Energy and Commerce Committee
Testimony submitted for Hearings on ‘America’s Energy Security and Innovation,’ Washington D.C., February 5, 2013, accessed in http://energycommerce.house.gov/hearing/AESI-assessment-north-americas-energy-resources.
 BP, BP Energy Outlook 2030, London, January 2012.
 Glenn S. Penny, et al, Control and Modeling of Fluid Leakoff During Hydraulic Fracturing, Journal of Petroleum Technology, Vol. 37, no. 6, pp. 1071-1081.
 F. William Engdahl, Shale Gas: Halliburton’s Weapon of Mass Devastation, VoltaireNet.org, 17 May 2012, accessed in http://www.sott.net/article/245733-Shale-Gas-Halliburtons-Weapon-of-Mass-Devastation.
 Anthony Andrews, et al, Unconventional Gas Shales: Development, Technology and Policy Issues, Congressional Research Service, Washington D.C., October 30, 2009, p.7.
 John Deutsch, Robin West, The North American Oil and Gas Renaissance and its Implications, The Aspen Institute, 2012, Washington DC, accessed inhttp://www.aspeninstitute.org/sites/default/files/content/docs/pubs/2012GlobalForumRepFINALPDF_0.pdf.
 EIA, Natural Gas Gross Withdrawals and Production, US Department of Energy, Washington DC, accessed in http://www.eia.gov/dnav/ng/ng_prod_sum_dcu_NUS_a.htm
 Malcolm Maiden, Burnt Fingers all round in US shale gas boom, The Sydney Morning Herald, August 2, 2012, accessed in http://www.smh.com.au/business/burnt-fingers-all-round-in-us-shale-gas-boom-20120801-23g03.html
 SPEE, Canadian Oil and Gas Evaluation Handbook, Volume 1 — Reserves Definitions and Evaluation Practices and Procedures, SECTION 5: DEFINITIONS OF RESOURCES AND RESERVES, Petroleum Society of the Canadian Institute of Mining, Metallurgy and Petroleum, Calgary Chapter, accessed in www.petsoc.org.
 Stephen Lacey, After USGS Analysis, EIA Cuts Estimates of Marcellus Shale Gas Reserves by 80% ,August 26, 2011
 Rafael Sandrea, Evaluating production potential of mature US oil, gas shale plays, The Oil and Gas Journal, December 3, 2012, accessed in http://www.ogj.com/articles/print/vol-110/issue-12/exploration-development/evaluating-production-potential-of-mature-us-oil.html.
 Arthur E. Berman, After the Gold…
 Ed Crooks, Gas groups headed for large write-downs, Financial Times, August 31, 2012, accessed inhttp://www.ft.com/intl/cms/s/0/a0fd134e-f38d-11e1-b3a2-00144feabdc0.html#axzz2MehR4I7i.
 Marin Katusa, Does a Long-Term Natural-Gas Downturn Signal that Investors Should Exit?,http://www.caseyresearch.com/cdd/does-long-term-natural-gas-downturn-signal-investors-should-exit.
 Jeff Goodell, ‘World’s Biggest Fracker’ Pockets $1 Billion in Shady Deal, Rolling Stone, April 18, 2012, accessed in http://www.rollingstone.com/politics/blogs/national-affairs/worlds-biggest-fracker-pockets-1-billion-in-shady-deal-20120418#ixzz2N3vXTPH9.
 Reuters, SEC Investigating Chesapeake Energy, CEO, March 01, 2013, accessed inhttp://www.foxbusiness.com/business-leaders/2013/03/01/sec-investigating-chesapeake-energy-ceo/#ixzz2N40Rnm4d.
 Ed Crooks, Two directors forced out of Chesapeake, Financial Times, June 8, 2012, accessed inhttp://www.ft.com/intl/cms/s/0/7fbbd6a4-b182-11e1-bbf9-00144feabdc0.html#axzz2N3lAsPdW.
 Jeff Goodell, Op. Cit.
MARIJUANA has gone mainstream. We’ve yet to see weed adverts on the side of F1 vehicles, as we have for cigarettes and booze, but NASCAR fans heading to the 2013 Brickyard 400 races at the Indianapolis Motor Speedway will get to see a TV advert hailing cannabis.
It will, however, not improve your driving:
Photo: Bobby Allison poses at New York’s Waldorf Astoria hotel with the Winston Cup trophy, Dec. 8, 1983. Allison, winning his first Winston Cup will receive $150,000 from the R.J. Reynolds Tobacco Co., which sponsors the NASCAR series.
July 28th marks the 35th anniversary of the political assassination of two Puerto Rican independence activists, Carlos Soto Arriví and Arnaldo Darío Rosado, in the infamous Cerro Maravillai case. This case, which was widely followed among Puerto Ricans, involved an agent provocateur that led the activists to an ambush that resulted in their brutal murder by paramilitary agents within the colonial police force. The event led to two investigations, the second of which revealed a conspiracy to cover up both the assassination plot as well as the destruction and manipulation of evidence carried out by the colonial police and justice department, and well as the federal justice department and FBI. Cerro Maravilla symbolizes for many the most outstanding recent example of repressive measures, from surveillance to political assassination, unleashed by US imperialism against the anticolonial movement in Puerto Rico.
The recent revelations of NSA spying by Edward Snowden have provoked mass outrage across the globe. Much of the consternation comes from what is commonly understood as a violation of privacy. In the official media, Snowden’s actions have been framed as a debate between ‘national security’ and ‘privacy’. However, framing the question in these terms is pure subterfuge. The Puerto Rican experience shows that the true objectives of surveillance programs by intelligence agencies like the NSA, CIA, and FBI having nothing to do with ‘security’ or ‘protection’ but rather political repression. Systematic surveillance can only be understood as an essential part of state repression, the purpose of which is to intimidate those that question the status quo by promoting a culture of fear. One can never be separated from the other.
The systematic surveillance and repression of Puerto Rico’s anticolonial movement is obviously just one example of many. A brief historical sketch of US imperialism’s repressive efforts against anticolonial forces in Puerto Rico must begin with the political intrigues that preceded the 1898 military invasion as well as the martial law that characterized both military and civilian colonial governments in its immediate aftermath. This history goes on to include the surveillance and repressive attacks against the Puerto Rican Nationalist Party and its followers from the 30s through the 50s, which included massacres of unarmed civilians, political assassinations and imprisonments, the harassment and attacks against labor unions and newly emergent socialist organizations of the same period, as well as COINTELPRO operations against resurgent nationalist and socialist political formations during the 60s and 70s.ii Indeed, in 1987 it was revealed that over 130,000 files on individuals and organizations had been accumulated through systematic surveillance on the island. This history is an integral part of the parallel campaigns of systematic state repression unleashed within the United States against groups such as the Black Liberation Movement, the American Indian Movement, the Chicano Liberation Movement, radical labor organizations, progressive students and antiwar activists, as well as communists.iii As such, what constitutes a scandal for the broader public is in fact part of the daily reality for those that fight for freedom and an end to oppression.
Snowden’s revelation that the United States Security Group Command’s Sabana Seca installation, located in the northern coastal municipality of Toa Baja, is part of an international surveillance network, which includes the Fornstat program, comes to no surprise to Puerto Rican anticolonial activists. From Sabana Seca, US naval intelligence monitors and gathers Internet, phone, and other forms of communication. In 1999, Duncan Campbell and Mark Honigsbaum of The Guardian already highlighted the naval intelligence’s “Echelon” operations from Sabana Seca and other locations both in the US and internationally as part of joint US British surveillance programs.iv
What is critical to highlight about US imperialism in Puerto Rico is the continued military character of colonialism on the island. For the benefit of those that may be unaware or who take the position that US militarism characterized only the past history of colonialism in Puerto Rico, a few contemporary examples serve to illustrate the point. Over the past decade and a half, Puerto Ricans have mobilized en masse to oppose a proposed military radar system intended for the Lajas valley in the southwestern part of the island, to end the practice of using the eastern island of Vieques as a bombing range by the US military and its allies (It should be noted that there was also a successful campaign to end the militarization of Culebra island also off the eastern coast of the main island in the 70s), and in more recent times against a system of potentially toxic and environmentally destructive antennas used both by the military and cellular companies that have proliferated across the island. In an article in the current issue of Claridad, the spokesperson for the grassroots Coalition of Communities Against the Proliferation of Antennas, Wilson Torres, sheds light on the US military’s Full Spectrum Dominance program currently being implemented in Puerto Rico. v
Understood in the context of pervasive unemployment, which serves to ensure an ever present pool of recruits used as cannon fodder in US military campaigns throughout the world as well as the structural dependence of large parts of the colonial economy on the Pentagon, this picture constitutes the modified form of US militarism in Puerto Rico in the present context. One may add the militarization of the colonial police force in the ongoing attacks against residents of public housing and other marginalized communities to this reality.
It would not be difficult to draw parallels between much of what is described immediately above and the realities faced by many North Americans. Heavy-handed policing and economically depressed communities dependent upon military or prison industries are a familiar reality for many. Yet the notion that the United States of America is characterized by a repressive state is much more difficult for the average person to accept. The narrative of 9/11 provides the pretext that results in the conflation of national security and state repression in the minds of many.
Notwithstanding, the revelations about the NSA spying program have provoked the condemnation of all except the most recalcitrant sycophants of US imperialism. Yet, it is absolutely necessary to place these programs in the context of the long history of state repression and militarism. Those on the left must push to extend the public discourse beyond questions of personal privacy to a discussion of systematic political repression within increasingly militarized “liberal” democracies. The experiences of anticolonial activists and militant, class-conscious revolutionaries from Puerto Rico lend valuable insights that add to the discussion around the significance of what Snowden’s leaks reveal: systematic surveillance and state repression are two sides of the same coin.
An insightful comment by Marx, writing in the New York Daily Tribune about British imperialism in India during the mid 1800s and often repeated among Puerto Rican comrades, is a useful starting point for the US left:
“The profound hypocrisy and inherent barbarism of bourgeois civilization lies unveiled before our eyes, moving from its home, where it assumes respectable form, to the colonies, where it goes naked.”
Carlos Borrero is a New York based writer.
Protesters, responding to calls by a loose network calling itself #stopwatchingus, braved searing summer temperatures Saturday to demonstrate in Hamburg, Munich, Berlin and up to 35 other German cities and towns.
Some wore tinfoil hats to shield themselves from the sun—and make a political statement about warding off unwanted eavesdroppers.
Others held placards showing support for National Security Agency leaker Edward Snowden.
Chancellor Angela Merkel raised the issue of the NSA’s alleged interception of Web traffic when U.S. President Barack Obama visited Berlin last month. But German opposition parties remain skeptical of the government’s claim that it had known nothing about the surveillance.
― Jarod Kintz, The Days of Yay are Here! Wake Me Up When They’re Over.
Somnium Americanum certum est quia impossibile est
“I’m standing in this piece of shit goddamn rubble city and saying to you Americans, I’m going to hand over the 17 Trillion dollar national debt I racked up to you and all future generations once I end my tenure as president. This was my American dream, and it’s going to be your American fu**ing nightmare. Thanks for voting for me — twice!” the jovial president said chuckling like a hyena.
The president then went on to his usual diatribe about how he is being hindered by Republicans in Congress and how none of the mess the country is currently in is his fault in any way.
A homeless army veteran onlooker to the whole sorry scene quipped: “This is what happens when Marxism mixes with Capitalism. In the Marine Corp. we used to call it a ‘clusterf*ck’.”
After hearing that GM crops could potentially increase yields, three farmers in Schmeiser’s region planted fields of Monsanto’s seed. Winds pushed pollen from GM canola into Schmeiser’s fields, and the plants cross-pollinated. The breed he had been cultivating for 50 years was now contaminated by Monsanto’s GM canola.
Did Monsanto apologize? No. It sued Schmeiser for patent infringement — first charging the farmer per acre of contamination, then slapping him with another suit for $1 million and attempting to seize his land and farming equipment. After a seven-year battle, the Canadian Supreme Court eventually ruled against him but let him keep his farm and his $1 million. He was one of the lucky ones.
Schmeiser’s case illustrates how Monsanto is dominating — and terrifying — the agricultural world with secretive technologies, strong-arm tactics, and government approval. According to the Center for Food Safety, Monsanto has filed at least 142 similar lawsuits against farmers for alleged infringement of its patents or abuse of its technology agreement. The company has won 72 judgments totaling almost $24 million.
Agriculture is a big industry in Florida. About $130 billion-per-year big, the second-largest industry behind tourism. Statewide, 9 million acres of farmland are divided into more than 47,500 commercial farms. In fact, Palm Beach County is the largest agricultural county east of the Mississippi River.
According to the USDA, 95,000 acres of corn, 125,000 acres of upland cotton, and 25,000 acres of soybeans have been planted in the state in 2013. With Food and Water Watch warning that nationally, 90 to 93 percent of such crops are genetically modified, Floridians have cause to know what’s lurking up the food chain.
A Biotech Revolution
When you’re good at something, you want to leverage that. Monsanto’s specialty is killing stuff.
When lawsuits piled up, putting a crimp in long-term profitability, Monsanto hatched a less lethal, more lucrative plan. It would attempt to take control of the world’s food supply.
This mission started in the mid-’90s, when the company began developing genetically modified crops like soybeans, corn, alfalfa, sugar beets, and wheat (much of it used for livestock feed). Monsanto bred crops that were immune to its leading weed killer, Roundup. That meant farmers no longer had to till the land to kill weeds, as they’d done for hundreds of years. They could simply blast their fields with chemicals. The weeds would die while the crops grew unaffected. Problem solved.
Monsanto put a wonderful spin on this development: The so-called “No-Till Revolution” promised greater yields, better profits for the family farm, and a heightened ability to feed a growing world.
But there was a dark side. First, farmers grew dependent on Monsanto, having to buy new seed every year, along with Monsanto’s pesticides. The effects on human health were largely unknown — would it harm people to consume foods whose genetic profile had suddenly changed after millions of years? Or to eat the animals that had consumed those plants? What about ripple effects on ecosystems?
But agriculture had placed the belligerent strongman in charge of the buffet line.
Monsanto squeezed out competitors by buying the biggest seed companies, spending $12 billion on the splurge. The company bought up the best shelf space and distribution channels. Its braying of global benevolence began to look much more like a naked power grab.
Seed prices began to soar. Since 1996, the cost of soybeans has increased 325 percent. Corn has risen 259 percent. And the price of genetically modified cotton has jumped a stunning 516 percent.
Instead of feeding the world, Monsanto drove prices through the roof — taking the biggest share for itself. A study by Dr. Charles Benbrook at Washington State University found that rapidly increasing seed and pesticide costs were tamping farmers’ income, cutting them from any benefits of the new technology.
Still, Monsanto was doing its best to make them play along. It offered steep discounts to independent dealers willing to restrict themselves to selling mostly Monsanto products. These same contracts brought severe punishment if independents ever sold out to a rival. U.S. regulators showed little concern for Monsanto’s expanding power.
“They’re a pesticide company that’s bought up seed firms,” says Bill Freese, a scientist at the Center for Food Safety. “Businesswise, it’s a beautiful, really smart strategy. It’s just awful for agriculture and the environment.”
Today, Monsanto seeds cover 40 percent of America’s crop acres — and 27 percent worldwide. The company makes nearly $8 billion per year.
“If you put control over plant and genetic resources into the hands of the private sector… and anybody thinks that plant breeding is still going to be used to solve society’s real problems and to advance food security, I have a bridge to sell them,” says Benbrook.
Seeds of Destruction
It didn’t used to be like this. At one time, seed companies were just large-scale farmers who grew various strains for next year’s crop. Most of the innovative hybrids and cross-breeding was done the old-fashioned way at public universities. The results were shared publicly.
“It was done in a completely open-sourced way,” says Benbrook. “Scientists at the U.S. Department of Agriculture exchanged all sort of seeds with other scientists and researchers all over the world. This free trade and exchange of plant genetic resources was the foundation of progress in plant breeding. And in less than a decade, it was over.”
The first crack appeared in 1970, when Congress empowered the USDA to grant exclusive marketing rights to novel strains — with the exception that farmers could replant the seeds if they chose and patented varieties must be provided to researchers.
But that wasn’t enough. Corporations wanted more control, and they got it with a dramatic, landmark U.S. Supreme Court decision in 1980 that allowed the patenting of living organisms. The decision was intended to increase research and innovation. But it did the opposite, encouraging market concentration.
Monsanto, which declined an interview request for this article, would soon gobble up every rival seed company in sight. It patented the best seeds for genetic engineering, leaving only the inferior for sale as non-GM brands.
Syngenta and DuPont both sued, accusing Monsanto of monopolistic practices and a “scorched earth campaign.” But instead of bringing reform, the chemical giants reached settlements that granted them licenses to use, sell, and cross-develop Monsanto products. (Some DuPont suits still drag on today.)
It wasn’t until 2009 that the Justice Department, working in concert with several state attorneys general, began investigating the company for antitrust violations. But three years later, the feds quietly dropped the case. (They also ignored interview requests for this article.)
Dr. Peter Carstensen, a professor at the University of Wisconsin Law School, said some states were interested in pursuing the case and “some of the staff in the antitrust division wanted to do something, but top management — you say the word ‘patent’ and they panic.”
Set the Lawyers to Stun
Historically, farmers were able to save money on seeds by using those produced by last year’s crops for the coming year’s planting. But because Monsanto owns patents on its genetically modified strains, it forces farmers to buy new seeds every year.
Armed with lawyers and private investigators, the company has embarked on a campaign of spying and intimidation to stop any farmer from replanting his seeds.
Farmers call them the “seed police,” using words such as “Gestapo” and “Mafia” to describe Monsanto’s tactics. The company’s agents fan out into small towns, where they secretly videotape and photograph farmers, store owners, and co-ops; infiltrate community meetings; and gather information from informants. Some Monsanto agents pretend to be surveyors. Others confront farmers on their land and try to pressure them to sign papers giving Monsanto access to their private records.
In one case, Monsanto accused Indiana farmer David Runyon of using its soybean seeds, despite documented fact that he’d bought nonpatented seed from local universities for years. While attempting to pressure Runyon, Monsanto’s lawyer claimed the company had an agreement with the Indiana Department of Agriculture to search his land.
One problem: Indiana didn’t have a Department of Agriculture at the time. Like most Monsanto investigations, the case never went to trial and would appear to be more about intimidation than anything. Runyon incurred substantial costs defending himself without having done anything wrong. In 2006, the Center for Food Safety estimated that Monsanto had pressured as many as 4,500 farmers into paying settlements worth as much as $160 million.
Yet Monsanto wanted even more leverage. So it naturally turned to Congress.
Earlier this year, a little-noticed provision was slipped into a budget resolution. The measure, pushed by Sen. Roy Blunt (R-Missouri), granted the company an unheard-of get-out-of-jail-free card, which critics derisively dubbed “The Monsanto Protection Act.”
There have been some indications of adverse health effects, but Monsanto has largely kept its products from researchers. Long-term studies have been limited, but scientists have found greater prevalence of tumors and digestive problems in rats fed GM corn and potatoes, and digestive issues for livestock eating GM feed. Those who have published studies critical of GM have been besieged by industry-funded critics disputing their finding, assailing their professional reputations, and effectively muddying the water. The feds have never bothered to extensively study GM foods. Instead, they’ve basically taken Monsanto’s word that all is kosher. So organic farmers and their allies sued the company in 2009, claiming too little study had been done on Monsanto’s GM sugar beets.
A year later, a judge agreed, ordering all recently planted GM sugar beet crops destroyed until their environmental impact was studied.
The Monsanto Protection Act was designed to end such rulings. It essentially bars judges from intervening in the midst of lawsuits — a notion that would seem highly unconstitutional.
Not that Congress noticed. Monsanto’s spent more than $10 million on campaign contributions during the past decade — plus another $70 million on lobbying since 1998. The money speaks so loudly, Congress has become tone-deaf.
In fact, the U.S. government has become Monsanto’s de facto lobbyist in countries distrustful of GM safety. Two years ago, WikiLeaks released diplomatic cables showing how the feds had lobbied foreign governments to weaken laws and encourage the planting of genetically modified crops in Third World countries.
Other wires from State Department diplomats ask for money to fly in corporate flacks to lean on government officials. Even Mr. Environment, former Vice President Al Gore, was key in getting France to briefly approve Monsanto’s GM corn.
These days, the company has infiltrated the highest levels of government. U.S. Supreme Court Justice Clarence Thomas is a former Monsanto lawyer, and the company’s former and current employees are in high-level posts at the USDA and FDA.
But the real coup came in 2010, when President Obama appointed former Monsanto Vice President Michael Taylor as the FDA’s new deputy commissioner for foods. It was akin to making George Zimmerman the czar of gun safety.
Trust Us. Why Would We Lie?
At the same time Monsanto was cornering the food supply, its principal products — GM crops — were receiving less scrutiny than an NSA contractor.
Monsanto understood early on the best way to stave off bad publicity was to suppress independent research. Until recently, when negotiating an agreement with major universities, the company had severely restricted access to its seeds by requiring researchers to apply for a license and get approval from the company about any proposed research. The documentary Scientists Under Attack: Genetic Engineering in the Magnetic Field of Money noted that nearly 95 percent of genetic engineering research is paid for and controlled by corporations like Monsanto.
Meanwhile, former employees embedded in government make sure the feds never get too nosy.
Meet Michael Taylor. He’s gone back and forth from government to Monsanto enough times that it’s not a revolving door; it’s a Bat-pole. During an early-’90s stint with the FDA, he helped usher bovine growth hormone milk into the food supply and wrote the decision that kept the government out of Monsanto’s GM crop business.
Known as “substantial equivalence,” this policy declared that genetically modified products are essentially the same as their non-GM counterparts — and therefore require no additional labeling, food safety, or toxicity tests. Never mind that no accepted science backed his theory.
“It’s simply a political calculation invented by Michael Taylor and Monsanto and adopted by U.S. federal policymakers to resist labeling,” says Jim Gerritsen, a Maine farmer. “You have this collusion between corporations and the government, and the essence is that the people’s interest isn’t being served.”
The FDA approves GM crops by doing no testing of its own but by simply taking Monsanto’s word for their safety. Amusingly, Monsanto agrees that it should have nothing to do with verifying safety, says spokesman Phil Angell. “Our interest is in selling as much of it as possible. Assuring its safety is the FDA’s job.”
So if neither Monsanto nor the feds is ensuring that the food supply is safe, who is?
The answer: No one.
We’ve Got Bigger Problems Now
So far, it appears the GM movement has done little more than raise the cost of food.
A 2009 study by Dr. Doug Gurian-Sherman looked at four Monsanto seeds and found only minimal increases in yield. And since GM crops cost more to produce, their economic benefits are questionable at best.
“It pales in comparison to other conventional approaches,” says Gurian-Sherman. “It’s a lot more expensive, and it comes with a lot of baggage that goes with it, like pesticide use, monopoly issues, and control of the seed supply.”
Meanwhile, the use of pesticides has soared as weeds and insects become increasingly resistant to these death sprays. Since GM crops were introduced in 1996, pesticide use has increased by 404 million pounds. Last year, Syngenta, one of the world’s largest pesticide makers, reported that sales of its major corn soil insecticide more than doubled in 2012, a response to increased resistance to Monsanto’s pesticides.
Part of the blame belongs to a monoculture that developed around farming. Farmers know it’s better to rotate the crops and pesticides and leave fields fallow for a season. But when corn prices are high, who wants to grow a less profitable crop? The result’s been soil degradation, relatively static yields, and an epidemic of weed and insect resistance.
Weeds and insects are fighting back with their own law — the law of natural selection. Last year, 49 percent of surveyed farmers reported Roundup-resistant weeds on their farms, up from 34 percent the year before. The problem costs farmers more than $1 billion annually.
Nature, as it’s proved so often before, will not be easily vanquished.
Pests like Roundup-resistant pigweed can grow thick as your arm and more than six feet high, requiring removal by hand. Many farmers simply abandon fields that have been infested with it. Pigweed has infested Florida cotton fields, and farmers are now using old pesticides on top of Roundup to combat it.
To kill these adaptive pests, chemical giants like Monsanto and Dow are developing crops capable of withstanding even harsher pesticides. It’s producing an endless cycle of greater pesticide use at commensurate financial and environmental cost.
“It’s not about stewardship of the land,” says Thomas Earnshaw, sustainable farmer, educator, and founder of Outlaw Farmers in the Florida Panhandle. “The north Panhandle is probably the most contaminated land in the state — because of the monoculture farming with all the cotton and soy, both are “Roundup Ready” [GM crops]. They’re just spraying chemical herbicides, pesticides, and fertilizers into the soil, it’s getting into the water table, and farmers aren’t even making any more money — biotech is.”
Next Stop… the World!
The biggest problem for Monsanto’s global growth: It doesn’t have the same juice with foreign governments as it does with ours. That’s why it relies on the State Department to work as its taxpayer-funded lobbyist abroad.
Yet that’s becoming increasingly difficult. Other nations aren’t as willing to play corporate water boy as America is. The countries that need GM seeds often can’t afford them (or don’t trust Monsanto). And the nations that can afford them (other than us) don’t really want them (or don’t trust Monsanto).
Though the European Union imports 30 million tons of GM crops annually for livestock feed, it’s approved only two GM crops for human consumption. Although Brazil is poised to become the world’s largest soybean exporter on the strength of Monsanto seed, thousands of farmers there are suing Monsanto for more than $600 million after the company continued to charge them royalties two years after the expiration of its patent. Ecuador and Peru have shied away from GM crops. And even in the wake of the 2010 earthquake, Haiti mistrusted Monsanto so much that it declined its offer of seeds, even with assurances that the seed wasn’t GM.
In April, biotech companies took another hit when the European Union banned neonicotinoids — AKA “neo-nics” — one of the most powerful and popular insecticides in the world. It’s a derivative of nicotine that’s quite poisonous to plants and insects. German giant Bayer CropScience and Syngenta both make neo-nics, which are used to coat seeds, protecting crops in their early growth stage. In America, 90 percent of America’s corn crop comes with the coating.
The problem is that plants sweat these chemicals out in the morning dew, where they’re picked up by bees like a morning cup of Starbucks. Last year, a study linked neo-nics to the collapse of bee colonies, which threatens the entire food system. One-quarter of the human diet is pollinated by bees.
The mysterious collapse of colonies — in which bees simply fly off and die — has been reported as far back as 1918. Yet over the past seven years, mortality rates have tripled. Some U.S. regions are witnessing the death of more than half their populations, especially at corn planting time.
Last year’s study indicates a link to Monsanto’s GM corn, which has been widely treated with neo-nics since 2005.
But while other countries run from the problem, the U.S. government is content to let its citizens serve as guinea pigs. Beekeepers, though, are starting to fight back. This year, two separate lawsuits have been filed against the EPA demanding a more stringent risk assessment process and labeling laws for pesticides.
What’s Mine Is Yours
The same worries apply to contamination from GM crops. Ask Frank Morton, who grows organic sugar beet seeds in Oregon’s Willamette Valley and is among the few non-GM holdouts.
In 2010, a federal judge demanded farmers stop planting GM sugar beets. Farmers were surprised to find there was very little non-GM sugar-beet seed to be had. Since being introduced in 2005, Monsanto had driven just about everyone out of the market.
Morton’s farm is just two miles from a GM sugar beet farm. Unfortunately, beet pollen can travel as much as five miles, cross-pollinating other farmers’ fields and, in the case of an organic farmer, threatening his ability to sell his crop as organic and GM-free.
Morton has to worry about his fields because GM crops have perverted long-standing property law. Organic farmers are responsible for protecting their farms from contamination, since courts have consistently refused to hold GM growers liable.
Kansas farmer Bryce Stephens had to stop growing organic corn and soybeans for fear of contamination and has 30-foot buffer crops to protect his organic wheat. (Wheat pollen doesn’t travel far.)
“Monsanto and the biotechs need to respect traditional property rights and need to keep their pollution on their side of the fence,” says Maine farmer Jim Gerritsen. “If it was anything but agriculture, nobody would question it. If I decided to spray my house purple and I sprayed on a day that was windy and my purple paint drifted onto your house and contaminated your siding and shingles, there isn’t a court in the nation that wouldn’t in two minutes find me guilty of irresponsibly damaging your property. But when it comes to agriculture, all of a sudden the tables are turned.”
Contamination isn’t just about boutique organic brands. It maims U.S. exports too.
Take Bayer, which grew experimental, GM rice — that was unapproved for cultivation and for human consumption — at test plots around Louisiana State University for just one year. Within five years, these test plots had contaminated 30 percent of U.S. rice acreage. No one’s certain how it happened, but Bayer’s rice was found as far away as Central America and Africa.
Within days of the USDA announcement that this untested GM rice had gotten loose, rice futures lost $150 million in value, while U.S. rice exports dropped by 20 percent during the next year. And Bayer ended up paying farmers $750 million in damages.
Last month brought another hit. A Monsanto test of GM wheat mysteriously contaminated an Oregon farm eight years after the test was shut down. Japan and South Korea immediately halted imports of U.S. soft white wheat — a particularly harsh pill for the Japanese, who have used our white wheat in almost all cakes and confectionary since the 1960s.
Monsanto’s response? It’s blaming the whole mess on eco-terrorists.
Just Label It
Trish Sheldon moved to Florida in 2001, but the bubbly blond still exudes a cool, friendly California air. In 2010, she started a state chapter of Millions Against Monsanto, then in 2011 founded a group called GMO-Free Florida to raise awareness of the risks of GMOs and push for mandatory labeling initiatives.
With Monsanto seeds covering more than 40 percent of America’s crop acres (a March study found that 86 percent of corn, 88 percent of cotton, and 93 percent of soybeans grown here are of a GM variety) and the agri-giant making an expected $7.65 billion profit this year, it’s doubtful the company will go away anytime soon. But as consumers become more aware of the sinister problems lurking in the food chain, activists in many states are pushing for laws that would require foods with GM ingredients to be labeled, much as foods with trans fats are.
More than 23 right-to-know groups have since popped up throughout Florida especially after California’s push for mandatory labeling legislation, called Proposition 37, failed last year. Chemical companies defeated the initiative, thanks to a $46 million publicity campaign full of deceptive statements.
“Even though there were lies and deceit by the biotech industry, that was the catalyst,” Sheldon says. “People were so pissed off that it failed [and] we started gaining steam.” This May, during a global day of action, more than 2 million protesters attended rallies in more than 400 cities across 52 countries. In Miami, organizers lost count when protesters topped 1,300.
“If they’re going to allow the American people to be lab rats in an experiment, could they at least know where it is from so they can decide whether they want to participate or not?” asks Lance Harvell, a Republican state representative from Maine who sponsored a GM labeling law this year. “If the FDA isn’t going to do their job, it’s time we stepped in.”
Maine is just the second state (nine days after Connecticut) to pass such a law. When Vermont raised the issue a year ago, a Monsanto official indicated the company might sue. So the new laws in both Maine and Connecticut won’t take effect until other states pass similar legislation so they can share defense costs.
In Florida, state Sen. Maria Lorts Sachs and House Rep. Michelle Rehwinkel-Vasilinda have sponsored similar bills — but neither version made it to committee. Both intend to revise and resubmit bills in the next legislative session, in January 2014.
“God gave the seed to the earth and the fruit to the trees,” Harvell says. “Notice it didn’t say he granted Monsanto a patent. The human body has developed with its seeds. You’re making a major leap into Pandora’s box, a quantum leap that maybe the human body isn’t ready to make yet.”
As more information comes out, it’s increasingly clear that GM seed isn’t the home run it’s portrayed to be. It encourages greater pesticide use, which has a negative impact on the environment and our bodies. Whether or not GM food is safe to eat, it poses a real threat to biodiversity through monopolization of the seed industry and the kind of industrial farming monoculture this inspires.
Meanwhile, a study by the University of Canterbury in England found that non-GM crops in America and Europe are increasing their yields faster than GM crops.
“All this talk about feeding the world, it’s really PR,” explains Wenonah Hauter, executive director of Food & Water Watch. “The hope is to get into these new markets, force farmers to pay for seed, then start changing the food and eating habits of the developing world.”
But as much as he hates GM, Kansas farmer Stephens is sanguine. “I’ve seen changes since I was little to where it is now,” he says. “I don’t think it will last. This land and these people here have gone through cycles of boom and bust. We’re just in another cycle, and it will be something different.”
Providing we don’t irreparably break it first.
Additional reporting by Sara Ventiera.