Commentary Magazine


Topic: EPA

Crucifying the Oil and Gas Industry

It is often said that the definition of the word gaffe in Washington-speak is when someone accidentally tells the truth. Al Armendariz, the EPA administrator for Texas and surrounding states, certainly made a gaffe when he said in a speech in 2010, that the best way to enforce environmental laws was to crucify a few oil companies so that the rest will fall in line. He noted that the Romans used this technique when they conquered a new town, crucifying the first five people they could get their hands on so that the place would be very easy to manage for the next few years. (I expect that that is actually a slander against the Romans, although they had no scruples against selling whole populations into slavery.)

Armendariz was, let us hope, using a metaphor. But his actions indicate that he is all too willing to act first and get, well, evidence of wrong doing, later. The New York Times reported on December 8th, 2010, that he had signed an emergency order:

Dallas-based EPA Regional Director Al Armendariz issued an emergency order yesterday against Range Resources Corp., charging that its drilling in the Barnett Shale contaminated at least two water wells with methane and benzene. The order gave Range 48 hours to provide clean drinking water to affected residents and begin taking steps to resolve the problem.

Armendariz’s order is not simply an action against the company, but a slap at regulators at the Texas Railroad Commission, whom he accused of not doing enough to help the people living near the drilling operations in the Fort Worth area.

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Weighing the Costs and Benefits of EPA Regulations

While Secretary of Energy Stephen Chu was giving himself an A- grade on gas prices, the White House was rolling out a new rule that would ostensibly require federal agencies to weigh the cumulative effects of energy regulations. It’s a laudable idea in theory, but then again, so was President Obama’s executive order to cut down on regulatory red tape last year. And apparently that was such a runaway success that the White House needed to announce another rule a year later intended to do basically the same thing:

Agencies now will consult stakeholders and the public on how a new rule might interact with existing rules — and whether, for example, a string of upcoming rules on one industry would create an undue burden. Officials will also consider the cumulative effects of rules in their cost-and-benefit analysis, a process that currently weighs the costs against the benefits of each individual rule.

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