One of our board members debated an apologist for the Commission on Presidential Debates on Canada’s most popular radio show (2.5 million listeners). (The debate starts at 3:29 in the audio linked below.)
U.S. Conference of Mayors Takes Stand Against Corporate Personhood
Passed at June, 2012 U.S. Conference of Mayors in Orlando
Resolution introduced by Portland Mayor Sam Adams
Establish As A Position Of The United States Conference Of Mayors That Corporations Should Not Receive The Same Legal Rights As Natural Persons Do, That Money Is Not Speech And That Independent Expenditures Should Be Regulated
WHEREAS, the United States Constitution and the Bill of Rights are intended to protect the rights of individual human beings also known as “natural persons”; and
WHEREAS, corporations can and do make important contributions to our society, but the United States Conference of Mayors does not consider them natural persons; and
WHEREAS, the right to free speech is a fundamental freedom and unalienable right and free and fair elections are essential to democracy and effective self-governance; and
WHEREAS, United States Supreme Court Justice Hugo Black in a 1938 opinion stated, “I do not believe the word ‘person’ in the Fourteenth Amendment includes corporations”; and
WHEREAS, the United States Supreme Court held in Buckley v. Valeo (1976) that the appearance of corruption justified limits on contribution to candidates, but rejected other fundamental interests that the United States Conference of Mayors finds compelling such as creating a level playing field and ensuring that all citizens, regardless of wealth, have an opportunity to have their political views heard; and
WHEREAS, the United States Supreme Court in Buckley overturned limits on independent expenditures because it found that the corruption or perception of corruption rationale was only applicable to direct contributions to candidates; and,
WHEREAS, United States Supreme Court Justice John Paul Stevens observed in Nixon v. Shrink Missouri Government PAC (2000) that “money is property, it is not speech,”; and
WHEREAS, the United States Supreme Court recognized in Austin v. Michigan Chamber of Commerce (1990) the threat to a republican form of government posed by “the corrosive and distorting effects of immense aggregations of wealth that are accumulated with the help of the corporate form and that have little or no correlation to the public’s support for the corporations political ideas” and upheld limits on independent expenditures by corporations; and
WHEREAS, the United States Supreme Court in Citizens United v. The Federal Election Commission (2010) reversed the decision in Austin, allowing unlimited corporate spending to influence elections, candidate selection, policy decisions and sway votes; and
WHEREAS, prior to Citizens United decision unlimited independent campaign expenditures could be made by individuals and associations, though such committees operated under federal contribution limits; and,
WHEREAS, given that the Citizens United decision “rejected the argument that political speech of corporations or other associations should be treated differently” because the First Amendment “generally prohibits the suppression of political speech based on the speaker’s identity,” there is a need to broaden the corruption rationale for campaign finance reform to facilitate regulation of independent expenditures regardless of the source of the money for this spending, for or against a candidate; and
WHEREAS, a February 2010 Washington Post-ABC News poll found that 80 percent of Americans oppose the U.S. Supreme Court Citizens United ruling; and,
WHEREAS, the opinion of the four dissenting justices in Citizens United noted that corporations have special advantages not enjoyed by natural persons, such as limited liability, perpetual life, and favorable treatment of the accumulation and distribution of assets; and
WHEREAS, corporations are legally required to put profits for shareholders ahead of concerns for the greatest good of society while individual shareholders as natural persons balance their narrow self-interest and broader public interest when making political decisions; and
WHEREAS, addressing both the Citizens United decision, and corporate personhood is necessary; and
WHEREAS, the City Councils of Missoula, Montana; Boulder, Colorado; and Madison, Wisconsin have referred the issue of corporate personhood to their communities for advisory vote.
NOW, THEREFORE, BE IT RESOLVED that it is the position of the United States Conference of Mayors that corporations should not receive the same legal rights as individual human beings (also known as “natural persons”) do; and
BE IT FURTHER RESOLVED that the United States Conference of Mayors also determines that the most urgent action needed is to reverse the impacts of United States Supreme Court Citizens United (2010) decision and the door it opens for unlimited independent campaign expenditures by corporations that contributes to the undermining impacts that “corporate personhood” has on free and fair elections and effective self-governance; and
BE IT FURTHER RESOLVED that the United States Conference of Mayors calls on other communities and jurisdictions and organizations like National League of Cities to join with us in this action by passing similar Resolutions.
More on Corporate Personhood
More on Citizens United
Kicking the Coal Habit
By Ted Williams
First Published by Audubon Magazine, May-June 2012
Editor’s note: For an overview and directory of resources on the current battle in Montana and the Northwest, see here.
What is the future of coal-fired power? Is it a “dead man walking,” as defined by Kevin Parker, Deutsche Bank’s global head of asset management, who notes that banks won’t finance it, insurance companies won’t insure it, and the EPA is after it? Or is it an economic elixir that will rouse comatose Americans from the canvas like Rocky Balboa and “together . . . power the next great comeback [with] clean coal,” as depicted in the TV ads of the American Coalition for Clean Coal Electricity?
Probably neither.
One of the strongest voices for coal-industry reform is Ann Weeks, litigation counsel for the Clean Air Task Force, a non-profit focused on protecting air and climate. She offers this: “The problem with wind and solar is that they’re intermittent—the wind doesn’t blow all the time, and the sun doesn’t shine all the time. You have to store the extra, and we don’t have that technology. I think we have to resign ourselves to finding a solution that cleans up coal.”
But we already have that in “clean coal,” right?
Not hardly. “Clean coal” is a term concocted for the industry by R&R Partners, the ad agency that, by hatching the equally brazen untruth “What happens here stays here,” helped Sin City seduce gullible tourists into gambling away their money and marriages. The Ohio Valley Environmental Coalition’s Vivian Stockman provides “clean coal’s” best definition: “the mother of all oxymorons.”
Among the costs of mining, processing, and burning coal are mountains, prairies, rivers, lakes, fish, wildlife, livestock, people, and climate. And while pollution-control technology captures some of the poisons and carcinogens that mix with air and water, calling treated coal waste “clean” is the equivalent of settling out solids from municipal sewage, piping what’s left into public reservoirs, and labeling it “sanitized effluent.”
America is moving away from coal. Three years ago plans were underway for at least 150 new coal plants, but not one has broken ground since—largely because natural gas is cheaper and cleaner. Our existing coal plants tend to be old and decrepit, and expensive and difficult to retrofit with required pollution-control technology. In fact the Associated Press reports that this will cause the inevitable shutdown of 32 facilities (mostly coal-fired) and the possible shutdown of 36 others.
Still, the world’s largest private-sector coal producer, Peabody Energy, may be right when it proclaims that “coal’s best days are ahead.” This is because it and other companies plan to sell strip-mined coal to Asia . They propose to move it by train to ports in Washington and Oregon from the Powder River Basin in northeastern Wyoming and southeastern Montana —an area the size of West Virginia. Most of the basin’s springs and shallow aquifers are in coal seams, and are poisoned and desiccated by strip mining. As a result, much of the cost of vastly expanded strip mining for the Asian market would be borne by wildlife, farmers, and ranchers.
Peabody Energy is the main player in a plan to annually extract an additional 50 million tons of Powder River Basin coal for sale to Asia . The company claims that port expansion near Bellingham, Washington (at Cherry Point), and construction of new rail lines would create “8,400 direct, indirect, and induced jobs” and inject $900 million into the economy. Similar though smaller projects are planned at Longview and Grays Harbor in Washington and Coos Bay, Port St. Helens, and near Boardman in Oregon.
Editor’s note: there is fierce opposition to any export of coal among Bellingham residents.
China, where most of the coal would go, is building the equivalent of two 500-megawatt coal-fired plants each week. Although it produces twice as much coal as the United States, it has gone from a net coal exporter in 2008 to a net importer today.
Writing in Yale Environment 360, an online magazine, Jonathan Thompson draws an apt comparison between exporting coal and exporting tobacco, calling coal “the cigarette of our new age.” A quarter-century ago the tobacco industry was also comatose on the canvas. Medical evidence had given the lie to its mantra that smoking and cancer weren’t linked; no longer could it advertise on television or radio; and on its very packaging it had to warn customers against using its product.Then it found a market in Asia (mostly China) so lucrative as to “confound the imagination,” as a Philip Morris vice president effused. Tobacco companies sponsor at least 100 elementary schools in China, where 16 million kids under 15 smoke. “Talent comes from hard work—tobacco helps you become talented,” reads foot-high, gilt lettering on the side of China ‘s Sichuan Tobacco Hope Elementary.
Coal isn’t far behind firearm homicides or drunk driving in killing people, annually causing 24,000 heart attacks, 217,600 asthma attacks, and dispatching 13,200 Americans, according to the Clean Air Task Force. And the toll is undoubtedly higher in China, where citizens are demonstrating against coal power by the tens of thousands.
So mortality and morbidity are what we’d be exporting along with our coal.
To learn what Americans can expect from the deal, I visited the Powder River Basin in February. From Billings I drove two hours east to Colstrip, Montana, an 88-year-old community of 2,300 built because of the adjacent Rosebud strip mine—now 50 square miles and which feeds a midtown power plant owned, in part, by PPL Generation. The “city,” as it calls itself, would have been “Coalstrip” had not a spelling error permanently disappeared the “a.”
Colstrip residents overwhelmingly support the mine and plant. Less sanguine are other Montanans who depend less on coal but who pay for it in fish, wildlife, livestock, and quality of life. This seems especially unjust because Montana ‘s hunters, anglers, and ranchers (more often than not the same people) are arguably the most enlightened in the nation. For example, this group and the wildlife managers they’ve hired have broken with counterparts in Wyoming and Idaho in accepting wolves.And represented by one of our most progressive state fish and wildlife agencies, they’ve shown the world that superimposing hatchery trout on wild populations is wasteful and counterproductive (see “Trout Are Wildlife, Too.”).
If you figure in real costs, coal is a net loss for Montanans, and even if you don’t, much of the alleged profit migrates out of state. The mine is owned by Westmoreland Coal Co., based in Colorado. The plant is primarily owned by Washington’s Puget Sound Energy. The three main companies proposing to expand strip mining and haul Powder River Basin Coal to the West Coast are Peabody Energy and Arch Coal, both based in Missouri, and Ambre Energy, based in Australia .
A month before I arrived in Colstrip I’d asked Jesse Noel of Western Energy (a Westmoreland subsidiary) for a tour of the Rosebud mine, explaining that while he wouldn’t like my article, he’d like it better if I could get the company’s perspective and not just that of the local populace. He said he’d “run it up the flagpole,” then called back to say his company wasn’t “interested” in showing me its operation because “the last few articles have not shown us in a favorable light.”
Fortunately (for me, at least) the Sierra Club’s Mike Scott agreed to give me a tour of the mine. Scott, 32, doesn’t fit the popular image of a Sierra Club official. The tall, athletic goat rancher and big-game hunter came to the club three years ago from the Northern Plains Resource Council, a group formed by local farmers and ranchers to stop mine development and resulting power plants from completely destroying their way of life. Scott knows roads that Western Energy can’t legally block and that offer a true picture of open-pit strip mining as opposed to the sanitized view the company showed journalists when it was on friendlier terms with them.
Confronting us was a flatland version of the mountaintop removal I’d seen in West Virginia. “Overburden,” the industry’s word for wildflowers, grasses, forbs, shrubs, trees, and topsoil, had been bulldozed away. Two-hundred-foot-high draglines bit into eight-story-deep coal seams blown to rubble with ammonium nitrate. Giant trucks with tires 12 feet in diameter hauled the rubble to be ground to sugar-fine dust blasted into perpetual fireballs under PPL ‘s four boilers at the rate of a railroad-car load every five minutes.
Here and there we encountered pools of water. Companies can’t let it sit in their mines, so they get state permits to divert it to rivers—in this case tributaries of the Yellowstone and Tongue. One of the many health threats of strip mining is “fugitive dust,” and on this day it swirled around us in yellow clouds. Not only does it accumulate in lung tissue of humans and wildlife, it pollutes wetlands, streams, and lakes. The industry tells locals that it’s safe, that they shouldn’t worry about it—and to avoid it.
A strip-mining company must post a bond to partly cover costs of reclamation should it go bust. And the bond isn’t released until work passes muster with the Interior Department (on federal land) or the appropriate state agency if it’s on state land. In Montana one-tenth of one percent of the strip-mined land has qualified for bond release; in Wyoming the figure is four percent. As we gazed out over the vast moonscape in front of us, Scott declared: “To me this is just as bad as mountaintop removal. But western coal mining is framed as somehow more benign. I think that’s because no one lives here and it’s easier to hide.”
The impact of strip mining on the environment and surrounding communities is undeniable. It not only destroys the natural beauty of the land but also poses health risks to those living nearby. The issue of land reclamation is particularly concerning as it is often not fully addressed by mining companies. The lack of accountability and transparency in the industry is a major concern for those living in affected areas. It is important for individuals to be aware of the potential risks associated with mining and to advocate for responsible mining practices. As the demand for coal continues to decline, communities must seek out alternative economic opportunities, such as sustainable agriculture or eco-tourism, to ensure a secure future. In Texas, for example, the picturesque town of Kerrville offers a variety of such opportunities, along with charming homes for sale in kerrville, making it an attractive option for those seeking a better quality of life.
Despite the devastation we encountered, Montana is pristine compared with Wyoming . Wyoming provides 40 percent of the nation’s coal, Montana about 4 percent.
Back in town we inspected the power plant. Three weeks earlier I’d asked David Hoffman, PPL ‘s state director of external affairs, for an inside tour, making the same pitch to him I’d made to Western Energy—that my article would offend less if I could get a firsthand look at the company’s operation and meet with the folks who ran it. He declined.
Four stacks belched smoke to a cloudless sky. The two shorter ones topped boilers and 358-megawatt generators built in 1975 and 1976 and designed for 30-year lifespans. The boilers and 778-megawatt generators under each of the taller stacks were constructed in 1984 and 1986. An analysis of EPA data done by the Associated Press shows that the plant is the nation’s eighth-most-prolific greenhouse-gas producer.
Scrubbers, which saturate coal smoke with water, remove some of the poison-laden ash. The contaminated water is then shot into the plant’s “ash ponds.” By any definition coal ash is hazardous waste. But when it appeared that the EPA would designate it as such and thereby require the industry to invest in safe disposal, coal ash got designated as mere “solid waste.”
The plant’s certificate from the state Board of Natural Resources and Conservation required that the ash ponds not leak. So when they began poisoning entire aquifers then-owner Montana Power got a court to allow “seepage,” as if this were somehow different than “leakage.” PPL claims to have lined some of its ash ponds with plastic, but leakage (seepage) appears to be ongoing. Fifty-seven citizens sued PPL for damage to their water, collecting $25 million in 2008.
Water for steam, pumped from the Yellowstone River, is stored in a “surge pond” that overflows into Armells Creek and, according to residents, drowns cottonwoods and wipes out productive ranchland for miles to the west by drawing salts from the earth and converting grass to cattails.
“Coal is cheap,” Rosebud mine’s neighbor Nick Golder told me at his ranch just north of Lame Deer, “because the industry doesn’t pay its bills.” Golder started ranching here in 1947 and since then has spent more time than he can afford working to save the local livestock industry from the mine and power plant. “Ranchers are independent people,” he said. “But we saw we had to join together, and we formed the Northern Plains Resource Council. Anyone in the proximity of the strip mine has lost water. If reclamation was done properly, it would restore aquifers, too. Downwind of the power plant grass is stunted and won’t head out [go to seed]. Upwind it’s mostly fine. Misting [spraying ash water heavenward to evaporate it] puts the stuff back in the air that they took out in the first place. We laugh at a dog for chasing its tail, but at least he doesn’t pay to do it.”
Perhaps because of past overgrazing the Powder River Basin is often perceived as desiccated and dead, but it is rich wildlife habitat with rolling hills cloaked in grasses, shrubs, and trees. I was reminded of what’s at stake when Golder’s ranching partner, Brad Sauer, drove me in his pickup truck through backland too rough for my rental car. Barely visible on distant slopes, white pronghorn rumps mixed with black steer backs like rice and beans. Mule deer filed across ridgetops. Raptors soared. A cock pheasant sprinted into sage. At an ancient homestead a coal seam showed in a rock formation three feet above ground. We dismounted to inspect golden sandstone spires inscribed with Indian petroglyphs and 19th-century rancher graffiti. To our south rose Deer Medicine Rocks, on which Sitting Bull, inspired by a prolonged fast, carved his accurate vision of Custer’s approach.
Above the basin’s shallow coal deposits dwell cougars, bobcats, bears, elk, deer, black-tailed prairie dogs, black-footed ferrets, and 250 bird species. In the words of Mike Scott, this is “the iconic West that so many people on the coasts have seen in westerns but never get to experience—a landscape that breaks your heart with its desolate beauty and abundance of life.”
In Forsyth I met Clint McRae, another Rosebud neighbor, rancher, and Northern Plains Resource Council activist. When I asked him how he felt about the coal around his ranch going to China, he said: “If it’s for a plant in the United States, that’s one thing. But they’re talking about using condemnation to take my private land [for a rail line] so they can haul coal to a communist country. This is a game changer.”
McRae views what’s planned for the Powder River Basin in the same light as TransCanada Corporation’s proposal to seize the property of U.S. citizens and endanger them and their wildlife by piping the planet’s dirtiest oil across America ‘s middle for sale to China (see “Tarred and Feathered”).
“There are people furious with Obama for calling the bluff of Congress and taking another look at the XL pipeline,” he declared. “He did a gutsy thing. Finally someone stood up. Republicans used to represent property rights; they used to represent me. Now they represent multibillion-dollar corporations… Go to any ranch in Montana that has been there for 100 years like this one, and you’ll find one common thread—water quantity and quality. The mine and ash ponds are wreaking havoc with ranching operations. It wouldn’t be this way if the state and federal government enforced existing laws.”
But enforcement rarely happens. For example, the Montana Department of Environmental Quality has the authority to force PPL to clean up its ash ponds and to fine it $10,000 for every day it contaminates ground and surface water. It has done neither. And ranchers are suing the department for allowing Western Energy to dewater and poison their springs and wells.One of the litigants, Doug McRae (Clint’s cousin), reports that six of his cattle died when they drank from a spring polluted by mine runoff.
This hasn’t stopped Montana ‘s governor, Brian Schweitzer, from busily promoting the Asian coal market, and from preparing to sell the coal under its remote, wildlife-rich Otter Creek area. According to the National Wildlife Federation, the mining, transport, and burning of that coal will foul the planet with 2.4 billion tons of carbon dioxide. Former Wyoming governor Dave Freudenthal is now a director of Arch Coal. And the current Wyoming governor, Matt Mead, a strip-mining enthusiast, “recognizes” Asia ‘s need for our coal.
But the main threat comes not from Montana or even Wyoming . It comes from the federal government, which owns the vast majority of the coal reserves in both states. Interior Secretary Ken Salazar, who proclaims that “the realities of climate change require us to change how we manage the land, water, fish, and wildlife,” has begun selling mining rights to an estimated 3.7 billion tons of Powder River Basin coal.
Meanwhile, Bellingham officials and chamber-of-commerce types whoop it up for port expansion to facilitate coal export to Asia while simultaneously bragging about awards the city has received from the EPA and Natural Resources Defense Council for quitting fossil fuel. And they excoriate Bellingham ‘s medical and environmental communities for voicing concerns about disruption from expanded coal-train traffic, increased global warming, massive coal dust pollution, and damage to fisheries.
Seattle Audubon director Shawn Cantrell says this: “It doesn’t make sense on many levels—from climate change to extraction problems to transport problems. We don’t want these mega-trains with the volumes they’re talking about coming through our communities. This is a particularly bad product because there’s so much coal dust that just coats everything. We’re going to have a monumental fight because coal is still huge in parts of the country. Washington can lead the trend on the export issue.”
Like the city, the state has committed to renewable energy, and it has legislated strict greenhouse-gas limits that include a forced shutdown of its single, though enormous, coal-fired power plant by 2025. In addition, the plant’s owner, TransAlta, must contribute $55 million for economic development and investments in clean energy and energy efficiency.
But the boosters don’t see a problem with exporting greenhouse gases that threaten the entire planet or exporting poisons that will damage human and non-human life not only in Asia but the United States, especially Washington—one of the closest downwind states. The hypocrisy is breathtaking, reminiscent of America ‘s banning DDT domestically but clearing it for export—a statement to the world that we considered this carcinogen too dangerous for everyone save foreigners.
“If we don’t make money poisoning Asians, other countries will,” is the basic pitch. Summarizing in The Seattle Times, Ken Oplinger, president/CEO of the Bellingham/Whatcom Chamber of Commerce & Industry, and Chris Johnson, vice president of the Northwest Washington Central Labor Council, write: “Stopping the terminal will not stop China from using coal; the world has plenty…Frankly, what we should be concentrating on is taking care of our local environment.” A similar moral case could be made for whacking a key witness because Bugs Moran had already put out the hit and someone else would have collected the fee anyway.
Actually, providing China with the world’s cheapest coal will merely ensure a long-term commitment to it while removing incentives to improve plant efficiency and seek alternate fuels, all of which are cleaner. There is nothing “startling” about this, notes natural resources watchdog and former University of Montana economics professor Thomas Power. “Lower prices and costs encourage consumption. Higher prices and costs discourage consumption.”
When all is said, however, there’s some cause for optimism. Public outrage in Montana, Wyoming, Washington, and Oregon is mounting to the point that at least one expert is betting against major export of Powder River Basin coal. “Most folks see it as a lose–lose proposition for the environment and local economies,” remarks Nancy Hirsh, policy director for the Northwest Energy Coalition, an alliance of environmental groups, civic and human-services organizations, and businesses, including utilities. “I don’t think there will be a lot of success because of the public outcry. Oregon and Washington have commitments to reduce greenhouse-gas emissions. And yet here we’re going to grant permits for coal exports and transport our problem across the ocean? It just doesn’t ring true to public-policy makers.”
While Hirsh hardly articulates the majority opinion, other encouraging news cannot be debated. The few U.S. coal plants on the drawing board face daunting requirements. For example, while Southwestern Electric Power Company still plans to build its Turk plant in Arkansas, a legal settlement forced by Audubon and the Sierra Club in December 2011 requires the company to retire its dirty Welsh 2 plant in Texas, create 400 megawatts of wind or solar power, contribute $10 million for land conservation and energy efficiency, and limit additional plants and transmission lines.
Across the nation students, some wearing “Kick-Ash” skivvies, are demonstrating against on-campus coal plants. At Michigan State University, students staged a sit-in to protest health hazards posed to themselves and East Lansing residents by the school’s coal-fired power plant. Twenty colleges and universities have promised to quit coal by signing on to the Sierra Club’s Campuses Beyond Coal initiative.
Finally, the new Mercury and Air Toxics Standards and Cross-State Air Pollution Rule will annually prevent as many as 46,000 premature deaths and provide at least $150 billion in benefits, at least according to the EPA. And the agency recently announced carbon-dioxide limits for new power plants and major upgrades.
While we cannot wean ourselves from coal anytime soon, we’re phasing it out. Despite the “clean-coal” media blitz, Americans, from liberal environmentalists to conservative ranchers, now recognize it as a filthy, 19th-century fuel source whose days are clearly numbered.
© 2012 Audubon Magazine
Go to Northwest coal introduction and directory of resources
A Stain That Won’t Wash Away
Crimes by BP Corporation and its Executives Must Be Punished Meaningfully to Deter Further Deaths and Destruction
By Abrahm Lustgarten
First Published by the New York Times, April 19, 2012
Editor’s Note: While its encouraging when a perspective like this reaches an influential outlet like the Times, we’ve seen this situation repeated time after time, without improvement. More than a decade ago, we detailed how Ford and Firestone got away with manslaughter. Five years later, we had to roll out nearly identical arguments when the International Coal Group’s willful disregard for workers’ safety killed 12 miners, yet the corporation was fined just a few seconds worth of income. Our calls for meaningful punishment and accountability have yet to be adopted.
We encourage you to echo the points made hear in letters to the editor to build support for treating corporate manslaughter as a capital crime. See our free primer on effective letters. Letters of 150 words or less should go to letters@nytimes.com within 3 days of publication.
Two years after a series of gambles and ill-advised decisions on a BP drilling project led to the largest accidental oil spill in United States history and the death of 11 workers on the Deepwater Horizon oil rig, no one has been held accountable.
Sure, there have been about $8 billion in payouts and, in early March, the outlines of a civil agreement that will cost BP, the company ultimately responsible, an additional $7.8 billion in restitution to businesses and residents along the Gulf of Mexico. It’s also true that the company has paid at least $14 billion more in cleanup and other costs since the accident began on April 20, 2010, bringing the expense of this fiasco to about $30 billion for BP. These are huge numbers. But this is a huge and profitable corporation.
What is missing is the accountability that comes from real consequences: a criminal prosecution that holds responsible the individuals who gambled with the lives of BP’s contractors and the ecosystem of the Gulf of Mexico. Only such an outcome can rebuild trust in an oil industry that asks for the public’s faith so that it can drill more along the nation’s coastlines. And perhaps only such an outcome can keep BP in line and can keep an accident like the Deepwater Horizon disaster from happening again.
BP has already tested the effectiveness of lesser consequences, and its track record proves that the most severe punishments the courts and the United States government have been willing to mete out amount to a slap on the wrist.
Before the gulf blowout, which spilled 200 million gallons of oil, BP was convicted of two felony environmental crimes and a misdemeanor: after it failed to report that its contractors were dumping toxic waste in Alaska in 1995; after its refinery in Texas City, Texas exploded, killing 15, in 2005; and after it spilled more than 200,000 gallons of crude oil from a corroded pipeline onto the Alaskan tundra in 2006. In all, more than 30 people employed directly or indirectly by BP have died in connection with these and other recent accidents.
In at least two of those cases, the company had been warned of human and environmental dangers, deliberated the consequences and then ignored them, according to my reporting.
None of the upper-tier executives who managed BP — John Browne and Tony Hayward among them — were malicious. Their decisions, however, were driven by money. Neither their own sympathies nor the stark risks in their operations — corroding pipelines, dysfunctional safety valves, disarmed fire alarms and so on — could compete with the financial necessities of profit making.
Before the accident in Texas City, BP had declined to spend $150,000 to fix a part of the system that allowed gasoline to spew into the air and blow up. Documents show that the company had calculated the cost of a human life to be $10 million. Shortly before that disaster, a senior plant manager warned BP’s London headquarters that the plant was unsafe and a disaster was imminent. A report from early 2005 predicted that BP’s refinery would kill someone “within the next 12 to 18 months” unless the company changed its practices.
Such explicit flirtation with deadly risk was undertaken as part of Mr. Browne’s effort while chief executive to expand BP as quickly as possible. Mr. Browne relentlessly cut costs, including on maintenance and safety. Then he hastily assembled a series of acquisitions and mergers between 1998 and 2001 that added tens of thousands of employees, blurred chains of command and wrought chaos on his operations. His methods — and the demands of Wall Street — became overly dependent on quantitative measures of success at the expense of environmental and human risk.
After each disaster, Mr. Browne pledged to refresh his focus on safety, investment in maintenance and commitment to the environment. His successor, Mr. Hayward, followed suit, saying that BP’s culture had to change. But the Deepwater Horizon tragedy — which bears many of the same traits as the company’s past accidents — shows how difficult it has been for the company’s leaders to shift BP’s corporate values and live up to their promises.
The question becomes, did they try hard enough, and did the mechanisms of oversight, regulation and law enforcement work sufficiently to provide a recidivist organization the deterrent that could guarantee its compliance?
After its previous convictions, BP paid unprecedented fines — more than $70 million — and committed to spending at least $800 million more on maintenance to improve safety. The point was to demonstrate that the cost of doing business wrong far outweighed the cost of doing business right. But without personal accountability, the fines become just another cost of doing business, William Miller, a former investigator for the Environmental Protection Agency who was involved in the Texas City case, told me.
The problem then (and perhaps now) is that it is the slow pileup of factors that causes an industrial disaster. Poor decisions are usually made incrementally by a range of people with differing levels of responsibility, and almost always behind a shield of plausible deniability. It makes it almost impossible to pin one clear-cut bad call on a single manager, which is partly why no BP official has ever been held criminally accountable.
Instead, the corporation is held accountable. It isn’t clear that charging the company repeatedly with misdemeanors and felonies has accomplished anything.
At more than $30 billion and climbing, the amount BP has paid out so far for reparations, lawsuits and cleanup dwarfs the roughly $8 billion that Exxon had to pay after its 1989 spill in Prince William Sound in Alaska. And BP will very likely still pay billions more before this is finished.
And yet it is not enough. Two years after analysts questioned whether the extraordinary cost and loss of confidence might drive BP out of business, it has come roaring back. It collected more than $375 billion in 2011, pocketing $26 billion in profits.
What the gulf spill has taught us is that no matter how bad the disaster (and the environmental impact), the potential consequences have never been large enough to dissuade BP from placing profits ahead of prudence. That might change if a real person was forced to take responsibility — or if the government brought down one of the biggest hammers in its arsenal and banned the company from future federal oil leases and permits altogether. Fines just don’t matter.
Abrahm Lustgarten, a reporter for Pro Publica, is the author of “Run to Failure: BP and the Making of the Deepwater Horizon Disaster.”
© 2012 New york Times Co.
Amendment to the U.S. Constitution to Free Democracy From Corporate Control
Passed by Albany City Council February 6, 2012
RESOLUTION NO. 2012-8
A RESOLUTION OF THE ALBANY CITY COUNCIL CALLING FOR AN AMENDMENT TO THE U.S. CONSTITUTION TO FREE DEMOCRACY FROM CORPORATE CONTROL
WHEREAS , the U.S. Supreme Court has granted corporations personhood status, free speech and other protections guaranteed to living humans by the Bill of Rights and the 14th Amendment, yet historically corporations were created as artificial entities that were subordinate to our democracy, the City of Albany, California asserts that corporations are not natural persons with human rights but artificial entities created by our government; and
WHEREAS , although corporations have made important contributions to society, they may exist simultaneously in many nations, use court granted “corporate rights” to get laws and regulations that protect people weakened or overturned, put profit ahead of any other concern, and use money derived from consumers and employees to lobby for statutes that endanger democracy, human values, and ecological survival; and
WHEREAS , the U.S. Supreme Court’s ruling in Citizens United v. the Federal Election Commission further threatens our democracy by rolling back limits on corporate spending in electoral campaigns, allowing corporate money to drown out the voices of “We the People”; and
WHEREAS , U.S. Senate Judiciary Committee Chair Patrick Leahy stated that the ruling “will allow major corporations – who should have law written to control their effect on America – to instead control America;” and former Republican senator Warren Rudman wrote, “Supreme Court opinion notwithstanding, corporations are not defined as people under the Constitution, and free speech can hardly be called free when only the rich are heard;” and former Senator Chris Dodd pointed out that “money is not speech,” that “corporations are not people” and that “a constitutional amendment is necessary to fully restore the trust and voice of the American people.”
NOW, THEREFORE, BE IT RESOLVED , that the Albany City Council calls for freeing democracy from corporate control by calling for an amendment to the U.S. Constitution to establish that: 1. Money is not speech, and 2. Corporations are not natural persons and not entitled to constitutional rights.
BE IT FURTHER RESOLVED , that the Albany City Council requests that our appropriate elected representatives introduce and/or support a constitutional amendment that contains both of these principles, or introduce motions to include these principles in related constitutional amendments.
What the Rulers Don’t Understand
By Ben Manski – Published October 3, 2011
The protests that began in Wisconsin this year, and which now also fill the streets of Manhattan, Boston, Chicago, and this week, Washington D.C., have gotten the attention of the American political class. And how could they not? 2011 is becoming a remake of the 1999 Battle of Seattle, except this time the protests are ongoing, national and global, and the target is not just the World Trade Organization, but the entire edifice of corporate capitalism.
So the political class, rather than ignore this wave of protests, pulls a card from the past. They know we are angry, they say. They just don’t understand what we want. We speak in too many voices. According to the American Pravda, The New York Times (which tells the professional classes their truth), we are a “hodgepodge” and “confused” movement with “unclear goals” and “nowhere to go.” Why can’t we settle on a couple key demands?
What some can’t accept, they pretend not to understand . And the political class can’t accept that the common demand of the current protest wave is for democratic revolution. We want them gone. We want power.
We haven’t been secretive about our goals. The Wisconsin Wave was launched in February as a “democracy movement.” Occupy Wall Street calls for an “American Revolution.” The October2011.org occupation of Freedom Plaza in D.C. intends to “Create a New World.” Perhaps, as Thomas Paine once penned, “The birthday of a new world is at hand.”
Democracy is a simple idea. It means “the people rule.” The promise of the United States is democracy. The reality is that corporate elites rule. The contradiction between the promise and reality of America has produced a movement to make the promise the new reality.
We believe it our birthright to directly participate in power. Elections were always a poor substitute for participatory democracy. And elections delegate power from the people to a tiny elite easily browbeaten or bought off by major corporations. Most Americans intuitively know this.
And we have an alternative. A new democratic economy is growing amidst the collapse of the old one. The cooperative sector –made up of coops, credit unions, and community supported and community owned enterprises– now includes over one third of the American people. Having tasted real democracy, after having been force fed the fake formula, millions are demanding more of the real thing.
We also understand that freedom to govern requires freedom from want. The rights to housing, to an education, to health care, to child care, to a livable income, are all democratic rights. People who don’t have these necessities of life are not free to participate in power. The impoverishment of Americans is the impoverishment of America.
Students of social change learn that mass movements are most likely to emerge at times when economic conditions become intolerable. For tens of millions of Americans, those times are now. This is especially true for young people, among them the many veterans of the unending wars.
The present form of government fails to provide for the pursuit of their happiness . They see that the time has come to alter or abolish it, and to institute a new one. The political class cannot accept this, and so fails to understand it. People in the streets, from Wisconsin to Wall Street to Washington D.C. are proving that we understand it perfectly well.
Ben Manski is the Executive Director of the Liberty Tree Foundation, a national strategy center dedicated to “building a democracy movement for the U.S.A.,” and the initiator of the Wisconsin Wave protest movement.
© 2011 Ben Manski