Personal Action Plan

Amendment 58 providing for the state

Richard McSwain

December 2008

University of Colorado, Boulder

Introduction

Colorado is one of the nine major oil and natural gas production states, but it has been a battle ground over the state’s oil and gas industry severance tax. Thirty years ago the state congress passed legislation that allowed a tax break to the oil and gas industry through the severance tax. The severance tax was and still is used across the country as a way for a state to tax an industry that extracts nonrenewable natural resources from the earth including gold, molybdenum, coal, natural gas, and crude oil. Thirty years ago Colorado was attempting to draw more commerce into the state, especially in the oil and natural gas production and extraction industry. Since Colorado had lower taxes than neighboring states (because of a break on the severance tax) it was a successful business tactic to move commerce to the state and begin drilling and pumping. This commerce boom helped provide jobs for thousands of Coloradoans as well as help pay for the state’s infrastructure with the added tax revenue.

Currently the tax revenue is distributed to state programs to pay for water projects, programs related to mineral extraction, clean energy development, low-income energy assistance, and wildlife conservation. Local governments receive the remainder of the revenue to be distributed to communities affected by mining. In 2007 the state collected $140 million in oil and gas severance tax, but mine clean-up estimates alone are over $315 million alone, and that does not include stream detoxification, community health, community education, or preservation. The severance tax is intended to help protect the people and environment from irresponsible industries that do not pay for their ecological disaster.

Many people ask “why don’t the corporations pay for the clean-up?” A good example of corporations paying for pollution clean-up is ASARCO, ever heard of it? The American Smelting and Refining Corporation began refining heavy metals in the late 1800’s in Globeville, (north of Denver) Colorado. The company changed process several times until 2006 when it was abandoned and forced to pay for contamination clean-up by the EPA. A several-mile radius had been contaminated by ASARCO and the surrounding neighborhood was listed as a Superfund site. Since ASARCO ended operations there have not been any clean-up operations because the company filed bankruptcy, much like the 23,000 abandoned mines in the state. Now the people are trapped by toxicity in what had been a vibrant center of commerce and diversity. Now only two sources can pay for the remediation of the site: 1-private developer, 2-the government.

Not only is Colorado feeling the affects from pollution and uneven taxation, but the state is also heavily lacking in funding for higher education. Compared to its counterparts across the country, Colorado students are two to four times under-funded by the state. Colorado is now dropping below proficient standards on standardized tests, funding has drastically cut teacher employment, programs have been cut, and class sizes have continued to increase. It could possibly be a link between the state focus on “industrializing” and the state’s record on education.

On the 2008 Colorado elections ballot Amendment 58 was a measure to eliminate the tax break on the severance tax to the oil and gas industry. The measure was estimated to increase the severance tax revenue from $140 million annually to $320 million annually with increases over subsequent years. The revenue increase was intended to be distributed again to local governments and communities, state programs and projects, and the remainder to be setup for the failing higher education system, energy efficiency and renewable energy projects, transportation projects, and water projects.

Justification

Under current law the oil and gas industry is unevenly taxed wells as well as it receives a $140 million tax break. The initial reasoning for the tax break was to draw commerce into the state, but now the industry is spread across the state from the eastern plains to the Roan Plateau, yet the tax break is still in place. The government has lost its power over the oil and gas industry because the industry lobbied the state legislation to continue the break. There is no punishment for damage done by the industry to the environment or communities, and there is little source of remediation for the state to draw upon.

Amendment 58 was a measure to establish accountability for industries and a source of remediation for the communities that have been affected by the negative conditions from the oil and gas industry. Community health and education has been compromised because of the pollution from the drilling activities and the lack of funding for higher education in the state.

Research

US oil consumption continues to increase; in 2007 it averaged to 20.7 billion barrels of oil per day (MMbd), the world’s largest consumer of petroleum. The US only produces 5.1 MMbd of crude oil ranking third in the world for production. That leaves about 13 MMbd of crude that is imported, 50 percent of which comes from Western Hemisphere countries, 17 percent from the Persian Gulf and the remainder from Africa. The US produces 10 percent of the world’s oil yet uses 24 percent, therefore making domestic oil production a topic of increasing importance (Department of Energy).

In Colorado, oil and gas is a $23 billion-a-year industry that employs 70,000 people from the fields to the refineries (Denver Business Journal), but environmental funding is not keeping pace with the increasing oil and gas industry or its fallout. For example, the Denver Post reported that the Colorado State Patrol still has the same number of HAZMAT teams to contain and clean spills as a decade ago, yet the number of spills is increasing. States like Wyoming and New Mexico have severance revenues of $382 million and $479 million respectively yet the oil and gas industry is not suffering from excessive taxes nor are the residents paying over-premium prices for energy or fuel (Colorado Independent).

The slogan or mission statement on the Colorado Oil and Gas Association (COGA) homepage of their website states “to foster and promote the beneficial, efficient, responsible and environmentally sound development, production and use of Colorado oil and natural gas”. COGA constitutes about 80 percent of the oil and gas in the state and if their leadership lives up to their mission then the majority of oil and gas production should focus on preserving and restoring the environment as well as the people of the communities surrounding the wells and fields. Unfortunately the oil and gas industry spent nearly $10 million on fighting the amendment even though the COGA is determined to promote responsibility and certainly doesn’t want to be responsible to pay the taxes due.

Amendment 58 would have provided $40 million on wildlife habitat alone with the prospect of that amount increasing depending on oil and gas tax filings for subsequent years. The state also would have set aside about $30 million to be held in reserve, which could be used at the House’s discretion with the possibility of it to be used to help supplement environmental efforts. Had Amendment 58 passed it would have allowed the state to undertake environmental projects or help corporations pay for restoration and preservation.

Under current law the projected severance tax revenue is expected to drop over the next four years from $315 million to $245. The drop in four years would equal the total amount of spending on environmental projects or activities in roughly the same time period, and the current severance tax law does not allocate $40 million a year on wildlife habitat or clean-up (Colorado Legislative Council).

Amendment 58 was a measure that was intended to bring taxes that were due into the state. The measure was expected to increase the severance tax revenue by $1.1 billion over the next four years to provide for more programs and services to the residents of Colorado (Colorado Legislative Council).

Framework

The Tragedy of the Commons is the underlying idea of the excessive use of oil in this country. As individuals we use a product in small quantities, but when 300 million people use a nonrenewable product “disaster” results. The consumption of oil may not even appear direct to a consumer but refined oil is used in products like plastic and nylon, tools and clothes. The exploiter of the natural resource is the industry that extracts the product from the earth, and disaster results when there is a lack of checks and regulations by the government or another ruling agency. What appears to be happening in Colorado is that the oil and gas industry has unrestricted access to as much fossil fuel as they can successfully extract, and there are few taxes or penalties if they draw heavily upon the resource.

As consumers who purchase a final product we have the mentality that the over-production of oil is not our fault because it is the oil companies’ liability. In reality the common-pool resource of oil can be over extracted and abused by the people who have the ability to do so, and they continue production as long as consumers demand the products that are made from crude oil. The same idea is illustrated by fresh water in the west where there is a demand for water (although necessary) so it has to be provided; or the textile industry where there is a demand for the newest clothing styles so it is provided.

This country is captured by a cycle of consumption and supply, and as a result it has degraded our ability to distance ourselves from our “need” of oil. Since the cycle is so predominant in our lifestyles we continue to consume more of our resource, and because we are consuming and demanding more the oil producers are supplying our needs. We will continue this cycle until governmental legislation regulates or rations suppliers or consumers.

Why

I wanted to research and follow this amendment through this election year because I thought it was important for the people of the state and because of personal convictions about the issue. I single handedly could not have changed the results of the election because my vote is one vote, nor could I have changed the wording of the legislation, but I could take the time and effort to understand the issue at hand and help inform others.

I am not what one may call an environmental activist nor am I a member of Green Peace, although for many reasons, but I do respect the environment and expect others to take responsibility. I think it is only fair that industries pay taxes due and people pay their taxes because it all counts towards each others’ communities. Without industrial, commercial, and personal taxes there is nothing the government can help with and the structure of government is lost to over-consumptive humans that desecrate the wonders of the Earth that we have been blessed with.

Expected outcome

The outcome of Amendment 58 is difficult to determine because of its convolution of issues. The issues at hand are: 1-raising taxes on oil and gas wells over a certain size, 2-eliminating taxes on oil and gas wells under a certain size, 3-setting a standard tax rate for taxed wells, 4-increase revenue for college scholarships, 5-increase revenue for wildlife habitat, 6-increase revenue for energy projects, 7-increase revenue for transportation projects, 8-increase revenue for water projects. Colorado is typically a more conservative state although it has become more evenly split and maybe becoming a little more liberal in many aspects of government. Since Colorado relies on the agricultural and drilling industries for much of the economy I anticipate the measure will be won by the conservative voters and put to rest because most of the eight issues at hand are more so liberal ideas about government.

Conservative Vote Liberal Vote

Eliminate taxes on small wells Raise taxes on large wells

Standard tax rate Revenue for college

Revenue for transportation Revenue for wildlife habitat

Revenue for energy

Revenue for water

I expect Amendment 58 to be voted down because there are fewer issues in favor of the conservatives in Colorado. There is also a large outcry from consumers on both sides that have expressed their concern for the possibility of rising utility costs. It also appears that many residents are concerned that the amendment will drive business out of the state and close sixty-percent of drilling projects across the state.

The psychology associated with this measure has disturbed many residents and has created a sense of fear of outrageous prices. This election season I have witnessed an incredible amount of advertisements, especially negative ones that are intended to affect the sense of security for the family or homeowner. The $10 million that the oil and gas industry spent to fight the measure has been successful in their sense.

Progress Measure

I am basically following this measure as it goes through the ballot this year, and I my measure of progress will be whether or not the amendment is passed or voted down. Election results are typically counted within 48 hours of the closing of the polls. There have not been sufficient polls to determine how the state is leaning on the measure, so a beginning value of voters for/against is not available.

Conclusion

Now that the elections have passed it was clear how the public felt about the issue at hand. Of the 64 counties in the state of Colorado only 10 voted in favor of Amendment 58, although Denver and Boulder County make up the majority of the votes in favor of the measure. The total votes counted were NO - 1,240,518 (57.9%), and YES – 901,600 (42.0%) (Denver Post). Over fifteen percent of the voters were not in favor of eliminating the severance tax break for the oil and gas industry which would have provided more money for the state and community programs.

After reading some of the opinions posted in the local newspapers it seems to me that the majority of residents were only concerned with fact that the oil and gas industry would have to pay more taxes. The additional $150 million that would have been paid to the state would have been spread over many companies that have operations in the state and other companies that have headquarters outside of the state. The reality is that the increase would have been spread around enough that a pass-through of taxes to the consumer would not have made a difference.

Voters were not concerned with the prospect that the state would have had more money to help their communities, children’s education, and beautiful state. It is evident that this state, and possibly the rest of the country, is scared to put regulations on the oil and gas industry because residents know how desperately they want the resources for energy and products. The goal of the measure was to help move people away from using oil and gas, but the voters spoke and they demand that the industry does not change for anything, at least not yet.

I hope that in upcoming elections there is another move to keep the oil and gas industry accountable by requiring them to pay taxes that were intended to be paid. The economic depression may have been a driving force in this years’ election, but it is uncertain how the results may have turned out had the economy been strong. Hopefully Colorado voters will find it necessary to tax accordingly to help fund, clean, and preserve “colorful Colorado” both socially and ecologically.

Bibliography

Gov. Owens Commission, Colorado lags behind in college spending, Denver Post, November 18, 2008

Thomas, Stephanie, Water Under Pressure, Environment Colorado, 2007

Robinson, Leslie, Severance Tax Could Make Colorado $10 Billion Richer, Colorado Independent, 2007

How dependent are we on foreign oil? Energy Information Administration, DOE, August 2008

http://tonto.eia.doe.gov/energy_in_brief/foreign_oil_dependence.cfm

Proctor, Cathy, Oil and gas industry battling severance tax amendment, October 2008, Denver Business Journal, http://denver.bizjournals.com/denver/stories/2008/10/06/story4.html

Investor skepticism evident in scant interest in Colorado firms

Rocky Mountain News- November 1, 2008
The search for energy is about looking at all options. Energy alternatives need to be primarily clean renewable sources like solar, wind, geothermal, and bio-fuels, but all other options need to be looked at. It is unlikely that this country would be able to rely solely on wind and solar because the two are not always present in every region, and transmission is unreasonable from coast to coast. There has to be a supplement in energy production, and that will have to come from clean coal, natural gas, methane, nuclear, or some other fuel we are trying to move away from. Until we find the magic fuel and production method we will have to use a combination of everything we have. Clean coal is the most likely choice for now because he have technology that closely resembles what we need, and the infrastructure is already in place.

http://www.istockanalyst.com/article/viewiStockNews+articleid_2758520.html

From California to Denver: ozone woes become regional

Denver Post - November 1,2008
It goes to show that what happens in one place has significant effects downstream. Rural Wyoming is facing problems the people in the area have little connection to, and that is smog and pollution from the west coast. The biggest problem with air and water pollution is that they move and it is impossible to contain the pollution in one spot. When one river becomes polluted it flow downstream effecting the communities it passes through. Once reaching the ocean the effects are not over, fish are killed, coral dies, food chains become contaminated, and humans eventually consume the pollutants that were introduced thousands of miles away.
We want energy but we also want healthy people. The goal is to provide both but the energy has to be clean and renewable to continue to provide for generations to come. It's amazing to me that in the course of sixty years we went from the Wright Flyer to the moon, but in 120 years we can't find a way to regulate emissions, or rather the government doesn't have the balls to step to the plate and tell industry how it's going to be.
China which is experiencing rising growth rates is up-wind from the US, so we should help China with regulations because if we don't then we get some wonderful bad air, food, water, and toys.


http://www.denverpost.com/newsheadlines/ci_10878107

EPA lops airborne lead limit 90 percent

Denver Post - October 17, 2008
It is good to see that the EPA is making steps to help clean the environment by making standards more stringent. This kind of action is necessary because industries and commerce will not take the initiative to set standards higher because it is too costly for many industries. Although the cost associated with the standard change will be significant, in the billions of dollars, it helps to benefit the health of the public. I think it is fair that industries that pollute should be held responsible for cleaning what they dirtied. If it was not for dirty industries then the environment would still be relatively clean.

http://www.denverpost.com/allewis/ci_10740736

China launghes food-safety effort

Denver Post- October 25, 2008
China has had some pretty serious health problems in the last few years: SARS, leaded toys, tainted baby food, tainted dairy products, bird flu, lack of food, drought, and so on. The health of a nation depends on the health of the people, and a great number of countries depend on the health of China and it's people for their products. Since food has become so globalized it is important that food be safe to eat and is transported safely. US food travels an average of 1500 miles, so worldwide it is important that every country follow proper procedures and deliver the best product possible, the safest product.


http://www.denverpost.com/ci_10811252

Beijing's stimulus package will lift demand for oil

Wall Street Journal- November 11, 2008
China consumes 8 million barrels of oil a day, and the US consumes about 19 million barrels of oil, but China also has four times the population. With the way China has been growing there is going to be major effects with the demand and cost of oil. China was a driving source in the peak oil prices this summer, so that could end up making record prices a norm in time to come. Major reform needs to happen in the industrial sector in China, And they have showed some promise in reducing electrical consumption. It is strange how the oil demand has fluctuated so much and with hope for reform in the energy sector in the US there may be even more strange action to come.

Falling crude threatens Iran's budget

Wall Street Journal- November 13, 2008
It's funny that I read this article the day I did because a friend told me they filled up their car for $1.80 for gas. I said to them "I bet the Arabs are upset." Then I read that the Iranians were hurting sevearly from the drop in the price of crude. $56 a barrel really hurts planning a budget when prices only three months ago hit $147. OPEC will face some serious difficulties in the coming years because of fluctuating oil prices. The market is so volatile that there could be some great trouble in countries providing for their people.

Fading oil-field production threatens supply

Wall Street Journal- November 13, 2008
So basically the world has to invest trillions of dollars a year in new energy to maintain supply over the next twenty years or so. All the discussion now about trying to save money and not convert is a waste of time and frankly it's ignorant because there will be catastrophic consequences if we do not change our energy now. It's fact that oil will run out one day, and when that day comes our cars will no longer run. And when our cars run dry we wont get to work. And when we don't get to work the economy crashes. And when the economy crashes it effects the whole world.
http://royaldutchshellplc.com/2008/11/13/iea-says-fading-oil-production-threatens-supply/

Group project sources
http://www.colorado.gov/energy/index.asp

http://factfinder.census.gov/servlet/GCTTable?_bm=y&-geo_id=04000US08&-_box_head_nbr=GCT-PH1&-ds_name=DEC_2000_SF1_U&-format=ST-2

http://factfinder.census.gov/servlet/QTTable?_bm=y&-geo_id=04000US08&-qr_name=DEC_2000_SF3_U_DP4&-ds_name=DEC_2000_SF3_U

Personal action sources
http://www.denverpost.com/search/ci_4680665

http://www.environmentcolorado.org/uploads/f8/jK/f8jKAjipufxFa185_HmWIA/Water-Under-Pressure--screen.pdf

http://coloradoconfidential.com/showDiary.do;jsessionid=A24BE7D40890EC9A62D6EA47D6DB49E6?diaryId=2899

Time's up on offshore-drilling ban

Denver Post- September 24, 2008
The offshore-drilling ban that has been in place since 1981 expired at the end of September with rather lackluster hype. I think the American public is willing to allow anything that will keep gas prices below $4 a gallon. Like I have said before, Obama wants to keep to ban in at least partial effect while decreasing oil imports. It will be an interesting four years to see how the oil and energy movement pan out.
I think we will continue to see many renewable energy projects pop up around the country, but I do not see widespread change closing coal power plants and opening solar power plants. I see some offshore exploration being allowed but under heavy environmental policy as well as Arctic oil exploration under heavy oversight.

http://www.denverpost.com/breakingnews/ci_10541890

BioWest expected to draw hundreds

Denver Post- October 17, 2008
It will be interesting to see what BioWest has to show that may have large impacts in the bioscience industry, may it range from health technology to industrial procedural technology. I'll try to keep up on what comes out of the even later his week. It will also be interesting to see how bioscience industries affect the local economy.

http://www.denverpost.com/ci_10740040

OPEC cuts: oil dives

Rocky Mountain News- October 25, 2008
The DOE reported a decline in the demand for crude oil in 38 of the last 42 weeks, US demand is down nearly 10 percent during the last four weeks compared to last year. Because of the decline in demand OPEC has been struggling to keep oil prices up, because falling prices at the pump means huge losses for them. It appears that Americans have driven 15 billion miles less this August compared to last year, and this decline in fuel consumption is possibly the leading cause of the overall decline in crude demand.
Hopefully what happens in this country is a reverse occurrence of oil and gas demand of the 1970 oil embargo. Hopefully Americans drastically change driving and social habits in turn reducing demand for gas and crude oil. If demand for oil continues to drop 10 percent from the previous year then OPEC will slash crude prices to something we haven't seen in a decade. Here is the economic point that the oil and gas industry is terrified of because it would ruin the industry, cause bankruptcy, and massive layoffs. The oil and gas industry pours money into making sure there is stability and increasing value in their product, but their power can easily be overcome by an entire population that chooses change and alternatives.

http://www.rockymountainnews.com/news/2008/oct/25/opec-cuts-oil-dives/

Colorado gets $71.3 million for energy assistance

Denver Post- October 17, 2008
It is good to see the federal government helping the low income households with paying for energy bills because this year was predicted to be one of the coldest on record- according to the farmers almanac. What would help bring down the cost of energy is if heating was moved away from natural gas which continues to rise and if electricity was produced by energies other than natural gas, oil, or coal which all continue to increase.

http://www.denverpost.com/ci_10740038

Crude oil drops to $70 a barrel, a 14-month low

Denver Post- October 16, 2008
The frustrating issue with the price of oil is how so many people criticise the president or government with changing the price of oil. Oil prices are based on global market values set by OPEC and regional oil producers, not individual governments or people. The American public also criticises how the government taxes the sale of gas, but the US has among the lowest fuel taxes of industrial nations (about $0.47/gal)- UK $3.80/gal, Canada $0.57, Norway $1.42/liter. The US is among the cheapest gasoline countries, yet the public is furious with $3.50/gal when Netherlands pay $3.50 just for the tax. Get used to the fact that the end of cheap oil is upon us. Oil will only become more expensive to extract because of location and environmental regulations.

http://www.denverpost.com/business/ci_10740037

Energy policies come up against green initiatives

Wall Street Journal- November 5, 2008
Obama is surly a politician at heart that sold an incompatible idea to the American public. His ideas for pushing alternative energy and independence from foreign oil will never succeed with how his agenda is structuring the process. Obama wants to mandate 10 percent of electricity to be produced from renewable sources in four years, and 25 percent in about 13 years. Yes we must shift our energy sources from coal and oil, but the 10 percent will never be met because of the quantity of energy that is already produced, and the huge economic cost to build the power plants. So to create enough renewable energy the government must subsidize projects for both large utility companies and homeowners. Where will that money come from, a tax increase on someone if not everyone.
The second problem with Obama's initiatives is that he wants to decrease our dependency on foreign but also wants to ban offshore drilling. The US imports and consumes nearly three times the amount of oil as the next leading countries. The US consumes 20,000 thousand barrels of oil per day, and produces 8,330 thousand barrels of oil per day- so if we stop importing and ban alternative oil production methods then we have a 12,000 thousand barrel per day deficit. I suppose the argument is that the US should decrease consumption, but frankly we're not, we haven't, and we won't soon... like in four years.
Like I say again and again, we have to change because oil will stop, coal will not be found, air will become toxic, water will become poison, and life will cease, but the approaches by American politicians suck. American policy revolves around commerce and the economy, and the environment has no value, so politicians let it suffer at the expense of commerce.
Having visited Sweden I know that our energy situation can have dramatic improvements while increasing the quality of life for residents. Sweden has invested billions of dollars in energy policy to create a relatively oil-independent nation. The energy and environmental model of Sweden should be followed by the US because it actually works.

http://online.wsj.com/article/SB122593011788403123.html?mod=googlenews_wsj

FDA to put inspectors in China by year's end

Denver Post- October 17, 2008
With the number of contamination outbreaks there have been in the US in the last few years, and the threat of more, it is about time the FDA works on the source of our food. The outbreak of bad baby food in China and the release of leaded paint toys is seriously scary, and there is little regulation on what come into our country. The EU has setup a rather comprehensive ban on GMO's from the US because of their concern for the health of their residents. It's incredibly hypocritical that we have so many regulations and lawsuits but so little effort goes into protecting the health of our bodies and environments.

http://www.denverpost.com/business/ci_10740540?source=rss

Thirsty? No thanks I have Boulder water in my glass

Tell me this is ok. even if this were the only stack in the world, is it alright to do?

Deaths of small fry a big issue

Denver Post- October 19, 2008
Power plants and factories across the US are contributing at least in small part to the loss of environment and species. Despite their claim that only a few fish eggs are destroyed or only a few fish are killed, thousands of water cooling systems are killing marine life. There are alternative cooling systems that would reduce or eliminate the number of fish killed. This is significant to the lager ecosystem because every fish that dies is a fish that does not feed another animal. Every egg that does not hatch is one less chance for a fish to mature. Every animal that does not eat enough is more likely to die. The debate that we are only killing a few is such bogus because we are still killing. It's like you're intending on going to Mexico but instead you drive towards Canada, only instead of going fast towards to Canada you drive slow so it's not really that bad. Slow or fast it's the wrong way.
This debate focuses on the economic value of both industry and market fish, the environment has no position in the industries mindset. This country especially needs to break out of the commerce-only mindset and look at the larger picture and what the effects are from their actions.

http://www.denverpost.com/ci_10756988

Economy deflates renewable fuel plans

Denver Post- October 18, 2008
Not only does the price of oil affect everybody, but the recent economic depression has spread to other countries as well. The economic and credit upheaval has caused major concern for environmental projects around the state and nation, but hopefully Congress will help with many developments. The importance of the government to invest, or at least provide tax money to renewable energy research and development, is without a doubt, enormous. We will not be able to switch away form coal and oil sources at the instant they cease to provide for our energy needs. The change to alternative energy is a long, expensive, complicated, but necessary process. Besides the central idea of renewable energy changing our energy source, but it also is an industry that will employ thousands if not millions around the world. The oil industry will still continue to produce and thus provide jobs while hopefully decreasing the number of employees over several decades without causing massive unemployment.
The more renewable energy projects that are funded and built help to educate that many more people, and the more people educated about energy will hopefully push for it.

http://www.denverpost.com/ci_10751236

Oil change may reverse fortune of Southwest Airlines

Denver Post- October 18, 2008
I remember years ago when the price of oil was not a talking point for anyone except shareholders. Now the price of oil changes the cost of everything from corn to shoes, FedEx to lumber deliveries, bus to airplane ticket. I think with the change in oil prices there will be more creative ways for producers and consumers to make and buy products, because if commerce continues as is then there is billions of dollars to be lost. More efficient and creative ways may be the cover for sustainable ideas to emerge.

http://www.denverpost.com/headlines/ci_10751209

Reports of toxic spills spiking

Denver Post- October 26, 2008
Our country depends on productive industrial processes, but at the cost of the environment and our health. Colorado State Patrol and other Colorado authorities report increasing numbers of hazmat material production, transportation, and spill reports. This means we are seeing and experiencing more toxic pollution in our drinking water, food products, and air. Natural habitat is being destroyed because of fuel spills and pristine environments are facing permanent damage from toxins in the soil. Colorado State Patrol still has the same number of hazmat teams as a decade ago even though there has been an increase in spills and offenders. Industries are expected to report and contain toxic spills, but there is little incentive for businesses to properly handle spills because of how expensive they may be. The state and federal governments must regulate and penalize offenders with a strong hand because environmental pollution affects more than people involved in a spill, they affect everybody downstream and everybody who breathes the air.

http://www.denverpost.com/headlines/ci_10816901

Orca loss "worse than the stock market"

Denver Post- October 25, 2008
Concern about endangered species seems to go unnoticed when species are bugs, like lightning bugs, but large mammals get some attention. The Center for Whale Research is able to track orca populations and their findings have helped to determine that a decline in chinook salmon may be a prime factor for the orca deaths. Because of the demand for fresh seafood product and the demand for such large volumes of food, links in the food chain suffer from over farming/production. This article made me think about the 1993 movie Free Willy, not only because it was about an orca but because of how one group of people respects and understands the importance of the whale and the other group only sees profit and business. This day in age everything is about business and making a profit, and saving wild species has no place in the market place...

http://www.denverpost.com/ci_10817007

No one is neutral in water fight

Denver Post- October 12, 2008
The West suffers from a lack of water for the current population, and an estimated 40 million more people are expected in the West within the next 30 years. Where do we get water from, who regulates its use, how is it regulated, who is responsible for controlling and cleaning water? Coal-bed methane water does sound appealing for some people because it is cheap and its water, but opponents are skeptical to allow this water go into use because of the health implications that are associated with it. I think there needs to be sufficient studies done on the quality of the water and long term effects of using it because if it is dangerous then states will end up spending hundreds of millions of dollars on a system that kills citizens and crops. The public and commerce seems to push for options that seem like really good ideas but ends up being dangerous and having horrible lasting effects. I don't know where we will get water from, but maybe new water laws and better conservation programs must be funded and enforced.

http://www.denverpost.com/search/ci_6603026

Oil industry's tax break looks as if it will stay

Denver Post- November 4, 2008
The oil and gas industry has been successfully receiving tax breaks and refunds for thirty years, with 2004 giving 81 percent of taxpaying filers some amount of a refund. Amendment 58 would have raised state collections of severance taxes from about $200 million to about $500 million. The money would have provided $90 million for college scholarships and the rest split up for sustainable projects and infrastructure projects. Colorado still has the lowest severance tax in the west, but the oil industry paid its way through this piece of legislation. I think not enough people were aware of the benefits of the proposal and were more concerned with the possibilities of price increases or tax issues.

http://www.denverpost.com/ballotissues08/ci_10900351

Iraq flush with oil cash

Denver Post- October 25, 2008
Here near the end of the presidential campaigns the Democratic party has used the Iraqi oil money surplus as a target against the war in Iraq. They say Iraq should be paying for the war instead of building attractions and infrastructure in a country that has been oppressed and ravaged by war. One product of the Iraq war was to remove Saddam and the oil sanctions so the country can build like any other nation in the world. Under Saddam the budget was poorly managed and the country could not build any monetary surplus because of spending restrictions and UN sanctions. The US, UN, and other allies should help Iraqi officials manage the budget and help with rebuilding the infrastructure and attractions. Let Iraq grow with the help of the US, because really we put them in their place as of now.

http://www.denverpost.com/ci_10811285

Xcel's filings could lower state bills a bit

Denver Post- November 4, 2008
Its ironic that the day of elections the paper come out with this blurb that says Xcel could possibly help lower residential and commercial energy bill a little bit. Why ironic, Amendment 58 did pass because many voters were concerned with the possibility of an "enormous" raise in energy bills. It just shows that energy prices fluctuate because of so many factors, and in the end they will never come down below what we know as cheap prices.

http://www.denverpost.com/headlines/ci_10898865

FasTracks challenge faces new directors

Denver Post- November 4, 2008
Voters approved funding the whole FasTrack program expansion a few years ago, but somehow the state has lost the funding that voters thought was properly allocated. I'm guessing in the next election in two years the state will want voters to approve more funding for the project. This is the largest planned transportation expansion project in the nation which will be a focal point for Denver for the next 50 years. Hopefully the state and RTD can successfully complete the project to help move the public that is shifting types of transportation. Whats good for the majority comes at a high price that many do not agree with, but it just may be necessary.

http://www.denverpost.com/election08/ci_10899671

Ozone hole is fifth largest ever

Denver Post- November 5, 2008
The battle to protect our environment is never ending. The ozone hole tragedy of the 90's has subsided significantly but the problem still persists and the culprit has not done enough to stop it. Collectively the world must come together to determine the exact causes of problems like this and make changes to try to stop or revert the circumstance. Kyoto was maybe a half hearted attempt at global environmental policy, but there was not enough encouragement or benefit seen in the protocol. One may ask why the world must unite on environmental policy, and the answer is because Antartica does not produce the pollution that causes ozone depletion, it all comes from somewhere else.

http://www.denverpost.com/rawnews/ci_10906182

Homebuilders' blues

Denver Post- November 4, 2008
Home building has had a 40 percent decline in sales this third quarter. Unfortunately the entire field of construction suffers from declines in such a large encompassing market. The chain of losses surrounding the housing market is rather long: real estate agents/agencies, home building companies/contractors, sub-contractors, suppliers, manufactures, and so on. Maybe the initial problem of the credit crisis was the excessive volume of houses on the market being sold well under prime market value. Home builders inflated the housing market with cheap cookie-cutter homes only to sucker people into homes they couldn't really afford. One thing lead to another and now the world is having an economic collapse.
My advise for the future is that all industries should be careful of how much they flood the market with their product because too much will have a significant chain effect on many people.

http://www.denverpost.com/commented/ci_10898855?source=commented-business

Amendment 58

9News.com Summary of 58
There is no certainty that the pass-through of taxes would actually happen had 58 passed, like Gov. Ritter stated is his position paper. Not only would gas and oil prices fluctuate slightly, but public services are regulated by the state so rates are not irresponsibly increased. Coloradans are concerned that making an industry responsible might raise fuel rates for their consumption, but it just doesn't work like that.
Now that elections have passed it is surprising that Colorado voters allowed the oil and gas industry to continue to receive substantial financial breaks. Smaller wells are actually supported by the measure, so why did we not support them? What happens when all the oil and gas wells dry up, how much money will the state be able to receive when there is no industry?

http://www.9news.com/rss/article.aspx?storyid=100907

Amendment 58 voted down

Voters say NO to 58
Elections concluded yesterday yielding the result of Amendment 58, and voters said no. It is interesting how Colorado voters chose not to support any education funding by voting down 58 and 59, and chose not to support environmental protection or alternative energy funding by voting down 58.
Colorado voters only approved two amendments both of which concern money- gambling and campaign contributions. It seems that Colorado voters did not put any focus on other social issues at hand.

Analysis of Amendment 58

The two positions for Amendment 58 go like this: support the measure to have the oil and gas industry pay taxes with the possibility of $200 million being passed down to consumers, or do not support the measure and allow the oil and gas industry to continue to receive a substantial tax break at the expense of the state's tax payers.
Nearly $200 million could become available for supporting education and environmental action but it is not certain that energy costs will rise because of the governmental regulations on utility prices.

http://www.associatedcontent.com/article/1029062/analysis_of_colorados_amendment_58.html

A $321 million tax hike

Denver Post- October 10, 2008
A counterpoint to Gov. Ritter's article is that amendment 58 is essentially a tax hike for oil and gas producers but the tax will be passed on to consumers through higher retail costs of energy bills. What I think is flawed about this argument is that the public will not have a tax increase in sales tax, property tax, or income tax. the only tax being influenced is that on the extraction and sale of oil and gas. This is a way for the state to level the tax base for all oil and gas industry, under $300,000 pays no tax and over $300,000 pays 5% tax. Seems easy enough to me, maybe income tax should be divided the same/similar way.


http://origin.denverpost.com/ci_10682431

Stop subsidizing big oil

Denver Post- October 10, 2008
Amendment 58 does two things for the State of Colorado: 1) eliminate a collective $300 million tax subsidy for oil companies in the state and companies that produce over $300,000 pay a flat rate of 5% while producers under $300,000 pay no tax, 2) tax revenue from oil and gas production will pay for public education and college scholarships as well as environmental preservation.
I think it is unfair for industry to extract resources and not pay their way in taxes, because the taxes are in place to provide education to the employees extracting the resources and to recover the landscape.

http://origin.denverpost.com/ci_10682420

Oil's steep drop leads OPEC to call meeting

Denver Post- October 10, 2008
It is quite interesting how record high oil prices which were comfortably supporting OPEC has lead to massive recessions around the world. And now that oil is dropping below $100 a barrel OPEC recognizes that they are beginning to experience a recession. The goal of the meeting is to coordinate a rise in oil prices by reducing oil production, supply and demand. The problem with a coordinated effort to fluctuate the oil price is that we may face an oil shortage again like the 70's. Two to three weeks ago the south was facing massive shortages because of storms and pipeline diversions. It will certainly be exciting when we have shortages again.

http://www.denverpost.com/headlines/ci_10682441

Chevron to post gusher of earnings

Denver Post- October 10, 2008
Nearly $6 billion earnings in one quarter for Chevron is really quite impressive, considering Exxon Mobil which produces only 3 percent of the worlds oil had earnings of $11.68. The six major international oil companies topped $50 billion in profit. It seems pretty ridiculous that the oil industry profits hundreds of billions of dollars every year, but that's just good business. What I would like to see is more oil produces investing in clean technologies to help transition away from oil. I think $50 billion would go pretty far in cleaning up the environment and funding research.


http://www.denverpost.com/headlines/ci_10682446
http://www.huffingtonpost.com/2008/07/31/oil-profits-shatter-recor_n_116022.html
http://www.msnbc.msn.com/id/25964073/

Oil trove a tough recovery

Denver Post- October 10, 2008
Brazil becoming an oil superpower exporter is so much more likely than being a country full of wealth from oil exploration. Every OPEC country is full of corruption and extreme poverty and wealth. Saudi Arabia, the largest exporter, is still an under-developed country that lacks many amenities that one would expect for a county so rich in a resource. It is an interesting prospect for Brazil's economy but they face many challenges in retrieving the oil. It would be great if our government would allow off shore drilling to help supplement our oil necessities. It also seems to me that Brazil is preparing for a war over their oil field, which is a scary thought.

http://www.denverpost.com/headlines/ci_10682194

Airline system wasting billions in fuel

Denver Post- October 10, 2008
It is surprising that we are in a technological or robotic revolution but we still use inefficient and outdated systems that are wasting billions of dollars. The airline industry is regulated by the federal government but I do not think it is the governments responsibility to transition all private aircraft to a new navigation system. Critics argue that the Bush administration has been unsuccessful in making this transition a national priority, but why would this be national priority over other domestic issues that are affecting the entire country. This is just one more topic that the Democratic Congress wants to turn against the administration for no reason. Granted the airline industry should transition but here is another kicker that does not encourage the transition, $10 million savings by 2025 when the plan costs $35 billion. It will take nearly 30 years for this plan to pay itself back, not encouraging enough for private industry.

http://www.denverpost.com/news/ci_10682654

Personal action plan

Personal action plan topic- Drilling legislation in Colorado for the 2008 elections
I have been interested in the oil and gas industry because our live revolve around the two resources. What I am going to do is research drilling in Colorado, the ballot measures for the November 4 election, and follow the measures through voting. I think the oil and gas industry may be one of the most important industries in the world because everything we do requires one or the other, and understanding them better will help with promoting change.

Ligntning bugs facing dim future

Denver Post- August 31, 2008
'Canary in a coal mine'... exactly. The number of species that have gone extinct or are now endangered is astounding. The sad reality is that many of these species are in danger because of our actions- pollution, food hunting, urban sprawl, habitat loss, climate change, ecosystem disturbance. The future looks grim for many creatures because of our daily endeavours, and the future/past of species helps to tell us the health of the Earth. Sure a little lightning bug poses little risk to the well being of mankind, but the chain effect of one specie or the repetition of hundreds of dying species does suggest a critical problem.

http://www.denverpost.com/nationworld/ci_10345738

UNC professor steering away from corn for biodiesel

Denver Post- August 29, 2008
Check out this paper I wrote on biodiesel a couple of years ago. I found that algae is about 10 times more productive than corn for fuel. The emphasis on corn is completely absurd because of the economic impact and how directly corn influences the price of food. The entire country of Brazil runs E80 or higher gasoline, but not from corn which the US in now cultivating specifically for fuel. Brazil acquires most of its ethanol from the stalks of sugar cane after it has been processed. The US must look elsewhere for ethanol because cont is not the answer. Corn ethanol has had a huge economic impact in Northern Colorado where Weld County was at one time the most productive county in the US, and now farmers are feeding a new market. I think there are much better sources for two main reasons: 1-energy yield 2-loss of land for food cultivation. Don't get me wrong, I think corn ethanol should still be supported, but only until another better system addresses the problem of fuel sources.

http://www.denverpost.com/breakingnews/ci_10327944

The tragedy of the commons- on religion

Under the section of the Tragedy of the Commons on Moral, Religious, Ethical Appeals- there was a statement that many writers have argued that Christianity lacks a pro-environmental stance, but I stand the difference. God commanded that men be stewards of the Earth, rule over animals, and be as numerous as the sands on the beach or stars in the sky. The Lord commanded that we respect and take care of the land we have been given and provide for our offspring. Jesus does not teach recycling but he taught respect, honor, grace, and care. Christians help and care for brothers and sisters in good times or bad, when one needs a hand, and when the future depends on the actions we take now.
I'll say environmentalism is not a topic preached in the pulpit or a major belief for Christians, in other words Christianity is not about environmentalism, but Christians are not trying to destroy the Earth either.
Greeley's analysis of Christians and the environment may be well in line that is ends up being political conservatism that aligns Christians with environment issues.

CU recognized for eco-efforts

Denver Post- August 28, 2008
I am glad to be part of a university that takes responsibility for being a steward of Earth. We were commanded as descendants of Adam and Eve to take care of the world in which we were given to use. Humans have possibly damaged the Earth beyond its breaking point, but it is our responsibility to revert the ill effects and care for future generations. Congratulations to CU for being 'ranked' as green (whatever arbitrary rankings exist). Unfortunately not everyone understands how to be clean and protect what we have in short supply. I will say the ranking system may not be the most accurate process but it is quite evident what the health of Earth is, and it doesn't look prospective.

Almanac sees rough winter

Denver Post-August 25, 2008
The farmers almanac has been a trusted source for weather predictions for decades, but it is clear that forecasts/predictions are uncertain and increasingly irregular. In my lifetime I have seen white Christmas' and hot Christmas', drought and excess snow pack. I believe climate change is broad but has been evident in many different ways around Earth. Will cities drown... probably not in my life, but that's not to say I shouldn't concern myself with our situation. Sure there are cycles in weather patterns, they have been recorded using ice core samples from Antarctica, but history hasn't recorded events like what we are experiencing now.

This article comes into play with our group project concerning energy efficiency and what home owners can do.

http://news.politicswest.com/nationworld/ci_10293158