Rules Could Cripple Auto Industry

U.S. Senator James Inhofe, R-Okla. called President Barack Obama’s rule requiring cleaner-running cars “a crippling mandate for the ailing auto industry.”
“It’s unfortunate that the administration believes a patchwork of state regulations is better than a single national fuel economy standard, Inhofe said in a statement. Inhofe is the Ranking Member of the Senate Environment and Public Works Committee. He commented on the Obama Administration’s directive to have the Environmental Protection Agency revaluate it’s denial of proposed California greenhouse gas tailpipe regulation to control air quality emissions for motor vehicles.
“Why attempt to bail out the auto industry on one hand and on the other mandate regulations that will further raise costs and result in more job losses in the industry?” Generally, the Clean Air Act establishes a uniform, federal standard for the regulation of emissions from motor vehicles. Section 209 of the CAA does allow California to adopt and enforce air quality emission standards for new motor vehicles in certain limited circumstances; however, all of the waiver requests EPA has received from California in the past refer to smog or to closely related pollution problems that had specific localized effects within the state.
Oklahoma has not addressed auto emission standards through the waiver process, said Skylar McElhaney, spokeswoman for the Oklahoma Department of Environmental Quality.
“I don’t know that we will do anything with CO2 either,” McElhaney said in an e-mail response to a reporter’s question.
Obama’s move is a political exercise that attempts to address a global issue with a statewide solution that undermines a carefully crafted and newly revised national fuel economy standard, Inhofe said.
“The potential granting of this waiver could authorize an untested, state-by-state regulatory program that could undermine the national CAFE standard, thus creating a patchwork of regulatory compliance obligations that would provide marginal, if any, benefit from a greenhouse gas reduction standpoint, but would tremendously increase costs and burdens on interstate commerce and on the automobile industry,” Inhofe said.
ETP, Chesapeake Partner for Haynesville Pipe
Energy Transfer Partners LP and a subsidiary of Oklahoma City-based Chesapeake Energy Corp. partner to construct a 178-mile, 42-inch diameter pipe that would connect emerging Haynesville Shale natural gas production to Louisiana’s interstate pipeline network.
Energy Transfer Partners claims to be the largest transporter of natural gas out of the Barnett Shale.
The Haynesville Play, a rock formation characterized by ultra-low permeability in contrast with the conventional sandstone/limestone reservoir rocks that have high permeability. In geological basins outside of Louisiana, gas shales have been one of the hottest plays in the U.S. for gas production from shallow depth ranges above 8,500 feet. The Haynesville Shale, however, entails well drilling below 10,000 feet.
The Haynesville play is estimated to be over 200 feet thick under the Elm Grove Field.
Oxy Gives Shareholders Say on Executive Pay
Occidental Petroleum Corp. board of directors approve a “say on pay” policy that will give shareholders a nonbinding advisory vote on executive compensation beginning at the 2010 annual meeting.
California Budget Deficit May Stall Clean Fuel Plans
With California facing a $42 billion budget deficit, the state’s year-old law (AB 118) to boost alternative fuel vehicles may be stalled.

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