Tips for bands: What to consider when hiring a manager

By Juston R. Givens, Director

We’ve all heard stories about the wild lifestyle of a modern musician – days on the road, nights of debauchery, money, fun and more money. But more often than not, we also hear stories of the flip side of stardom, when young bands get stifled because of poor business decisions and bad professional relationships.

small ampFor a band in its early stages, deciding on who to trust and how to make wise choices on the “business” side of show business is critical. Enter the band’s manager: the person who oversees the operations side of the effort. The manager helps assemble a team which can include the road manager, merchandise manager, publicist – and even the band’s attorney.

But how does a band know the difference between a manager who could take them places vs. one who could stall their career before it even begins?

Band managers have incredible influence on the success, direction and partnerships of the band’s business, so finding, retaining and empowering a manager is critical. Here are some issues for a band to consider when hiring a manager:

  • Who’s in charge?
    Remember, your manager works for the band, not the other way around. Even though they may have more industry experience and better contacts, ultimately decisions need to be made with the band’s best interest in mind.
  • Legal advice
    Your manager may be great at managing the operations and logistics of the band, but that doesn’t not make him an attorney. Get good legal advice about any contract your band signs to ensure there is an absolute understanding of the agreement.
  • The Yoko Rule
    When deciding on a manager, beware of bringing in relatives to fill that role (or any other important decision-making function in the band). It’s a common mistake, especially among younger artists. Pitfalls can include a lack of experience in the industry, unrealistic expectations for what the band can and can’t do, and conflicts with members of the band who aren’t related to them. Also, if a relative is your manager and doing a poor job, it’s harder to fire them. So don’t hire them in the first place.

Management agreement red flags

When signing a management agreement, a band ought to keep in mind the ramifications, short- and long-term, that document will have. It’s this moment, more than any other, when a fledgling artist can sacrifice future success because of early, naive decisions.

  1. First and foremost, don’t give away the future just because you can’t imagine it (whether it has great or middling success) or that it just seems too far away. Don’t begin by handing over rights to a manager without an exchange that also has long-term benefits, such as a substantial investment or significant opportunity.
  2. Also when looking at an agreement – and this is where good legal counsel is valuable – make sure you and your band know exactly what the agreement contains and what it means. The more details the better, especially in terms of the manager’s and the band’s expectations and who has decision-making authority over specific areas. You also want to avoid open-ended contracts. Just with typical employment, your manager should have a set period to accomplish certain goals and then be evaluated on their performance.
  3. Finally, to ensure the artistic integrity of everyone in the band, make sure that when you sign a management deal, signing as a band doesn’t prevent individuals from pursuing other projects as a solo artist or upon leaving the group.

Not every band’s story has to be an E! True Hollywood story. With the right forethought in who helps the band in its journey, a band can have a long and healthy career and – possibly – a very happy ending.

In the wake of Ferguson

By Cody Cooper, Associate/Litigation  and Robert N. Sheets, Director/Litigation

shutterstock_213974782-1Guest Column in The Journal Record, Published Dec. 3, 2014

By now, everyone is familiar with the situation in Ferguson, Missouri – the tragic loss of life, conflicting eyewitness accounts, and a decision not to indict the officer. Without offering an opinion as to the outcome, this article is intended to educate about Oklahoma’s grand jury process.

It is important to remember that a grand jury does not determine guilt or innocence. Rather, it is a tool used by prosecutors to analyze evidence and determine whether probable cause exists to charge a person with a crime. This differs from the standard required at a trial, which is that the defendant be guilty beyond a reasonable doubt.

During this process, the district attorney must choose to present the evidence to either a judge or a grand jury. Usually, the prosecutor will simply file the charges for a standard preliminary hearing. In the case of Ferguson, however, the district attorney chose to use the grand jury process.

A grand jury is comprised of 12 people who review evidence presented by the prosecution to determine whether probable cause exists to file charges. It is a fairly informal process where grand jury members, prosecutors, and any witnesses are, typically, the only individuals present. Usually no judge is present, and typically the defendant does not participate. Prosecutors present evidence to support criminal allegations and make a suggestion to the grand jury.

Evidence includes presenting witnesses and documents. Typically, prosecutors act in an advocate role to persuade the grand jury to indict. At the end of the prosecutors’ presentation of evidence, the grand jury members make their decision.

The Ferguson grand jury contained several idiosyncrasies:

  • Prosecutors presented all of the evidence to the grand jury rather than only presenting evidence suggesting culpability.
  • Prosecutors apparently made no recommendation to indict the officer. Instead, they left it up to the grand jury to determine the appropriate action.
  • The defendant was allowed to testify before the grand jury. Although these methods are not improper or illegal, they certainly aren’t typical.

Ultimately, the grand jury process is afforded wide investigatory powers. That the procedure in Ferguson departed from what is considered normal practice does not mean the ultimate decision was correct or incorrect.

PM Director Bob Sheets discusses fracking ban on NPR

Phillips Murrah Director Robert N. Sheets participated in a broadcast interview with StateImpact Oklahoma / KGOU reporter Joe Wertz regarding using local referendums to ban hydraulic fracturing.

This interview was broadcast in early November, 2014 and can be seen in its entirety at the StateImpact Oklahoma website.

To listen, click on the player below:

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Excerpt:

sheets-cutout-web

Bob Sheets

Property Rights

In Oklahoma, local officials have the authority to regulate and restrict oil and gas activity within city limits, an ordinance that enforced a fracking ban would likely draw an immediate legal challenge, says Robert Sheets, a land-use and natural resources attorney at the Phillips Murrah law firm in Oklahoma City.

“That’s what the cities are going to have to look at: Are they taking a property right from an individual by saying, ‘You cannot drill, you cannot frack on this property.’”

The energy industry has deep roots in Oklahoma, and many of the property laws themselves were written with oil and gas interests in mind. Sheets says the justification for an outright ban would have to be steep and defendable in court, especially if royalty owners argue that fracking is necessary to produce their oil and gas property.

“You’re probably going to end up with that rational basis test,” Sheets says. “Is there a rational basis for what they’re doing?”

Bob is a commercial litigator, director and one of the firm’s founders. He represents construction and energy industry clients in a broad range of real estate, land use and business litigation matters. You can view his attorney profile page HERE.

About StateImpact: StateImpact seeks to inform and engage local communities with broadcast and online news focused on how state government decisions affect your lives.

 

Brown: Producing for Oklahoma

Guest article originally published in The Journal Record on Oct. 24, 2014.
Click to see Elizabeth K. Brown’s attorney profile


 

Elizabeth K. Brown’s practice is focused at a strategic level on serving her clients as outside counsel where she assists privately held companies in managing the many legal issues that arise in running a business.

Elizabeth K. Brown’s practice is focused at a strategic level on serving her clients as outside counsel where she assists privately held companies in managing the many legal issues that arise in running a business.

A vibrant and growing oil and natural gas industry is paying dividends for Oklahoma, the most recent example being the increased payments to the state’s General Revenue Fund from taxes on the oil and natural gas industry.

Gross collections to the General Revenue Fund increased during the third quarter, up by almost 10 percent from the previous year. A significant portion of that increase came from the state’s gross production tax on oil and natural gas production, which saw a 33.4-percent growth compared with the year before.

The General Revenue Fund is the key indicator of state government’s fiscal status and the predominant funding source for the annual state budget. Collections, reported by the Office of Management and Enterprise Services, are revenues that remain for the appropriated state budget after rebates, refunds and mandatory apportionments.

The growth of receipts from the state’s gross production tax is an important benchmark because Oklahoma’s oil and natural gas industry remains a critical component of the fiscal stability for both state and local governments. The Oklahoma Energy Resources Board’s May 2012 Oklahoma’s Oil and Natural Gas Industry Economic Impact and Jobs Report shows the industry, as a whole, accounts for approximately 25 percent of all taxes paid in the state.

The greatest single benefactor of direct apportionments of gross production tax revenues is the state’s education system. Data from the most recent OERB report released in September shows the oil and natural gas industry accounted for more than $325 million to local school districts across the state. Another $150 million was allocated to the Oklahoma Student Aid Revolving Fund, the Higher Education Capital Fund and the Common Education Technology Fund.

To put that in perspective, take the northern Oklahoma community of Alva. In the heart of the Mississippi Lime, the Class 2A school district received $3.7 million in state funding for the 2012-13 school year. Of that, $2.1 million came directly from the oil and natural gas industry.

This state’s oil and natural gas industry is producing for Oklahoma. A growing oil and natural gas industry means increased funding for Oklahoma’s students and ensures future generations can continue producing for Oklahoma.

Responding to Ebola

By Mary Holloway Richard, Of Counsel/Litigation

Guest Column in The Journal Record, Published Oct. 15, 2014

shutterstock_210544051-1Incidence of Ebola on American soil allows for review of legal underpinnings of the public health response to “catastrophic health emergencies.” This term means, for our purposes, occurrence of imminent threat of an illness or health condition that is believed to be caused by the appearance of an infectious agent that poses a high probability of a large number of deaths in the affected population or widespread exposure to the infectious or toxic agent that poses a significant risk of substantial future harm to a large number of people in the affected population (63 O.S. §6104).

The federal government’s rapid response derives its power from the Commerce Clause of the U.S. Constitution (42 U.S.C.A. §264, Section 361 of the Public Health Service Act). The secretary of the Department of Health and Human Services is authorized to take measures to prevent the spread of threat of disease from other countries to the U.S. and between states. Borders are being monitored more stringently. States and tribes have the political power to detail those within their borders in an effort to contain such a threat. Police power functions include isolation-quarantine, access to and use of private health information, closure, lockdown, curfews, and appropriation and destruction of property, including pets and other animals. Those powers are derived from the state’s right to take action against individuals for the good of the people at large.

Oklahoma State Health Department regulations provide for isolation and quarantine including proper due process for affected people (OAC 310:521-7-6). On Oct. 10, the Centers for Medicare and Medicaid Services issued a memorandum to state survey agency directors (the state Department of Health in Oklahoma) to strongly urge hospitals to fully implement recent Centers for Disease Control policies for Ebola, including hospital evaluation and preparedness checklists and algorithms to evaluate patients returning from countries affected by the disease.

Emerging legal issues include privacy rights, provider and volunteer liability, due process and Fourth Amendment protections for mandatory testing and screening of citizens, licensure and scope of practice issues for noninstitutional health services providers giving aid, myriad informed consent, right to refuse treatment, and social distancing and remote handling of citizens including the effect of Americans with Disabilities Act protections.

Phillips Murrah adds health services attorney

Mary Holloway Richard, Phillips Murrah attorney

Mary Holloway Richard

OKLAHOMA CITY – Mary Holloway Richard has joined Phillips Murrah’s Healthcare team as an of counsel attorney.

Richard represents both institutional and non-institutional providers of health services, as well as patients and their families. Her career has included work at hospitals, outpatient clinics, behavioral health facilities, and rehabilitation facilities and clinics.

Prior to joining Phillips Murrah, Richard served as in-house counsel for Integris Health.

Q&A with Jim Roth: More Oklahomans seek to power their own homes, businesses

By Paula Burkes, business writer for NewsOK.com.
Published in The Daily Oklahoman on Aug. 26, 2014.
View Jim Roth’s attorney profile here.

Q&A with Jim Roth: More Oklahomans seek to power their own homes, businesses

Jim Roth is a Director and Chair of the firm’s Clean Energy Practice.

Jim Roth is a Director and Chair of the firm’s Clean Energy Practice.

Q: What is distributed generation?
A: Distributed generation refers to generating power at the site of consumption. When a home, business or school is equipped with a rooftop solar system, its electrical demands are partially met with the energy that the solar system produces. This allows consumers to take control of powering their own homes and businesses.

Q: How are Oklahomans utilizing distributed generation?
A: Oklahomans are using distributed generation to power their lives — to turn on the lights, power the air conditioning on a hot day, charge their electronics, etc. Homes and businesses are seeking the ability to produce their own energy, be less dependent on the utility, and make a sound financial environment. Distributed generation enables you to do all three.

Q: What are the benefits to Oklahomans powering their own homes and businesses?
A: Clean, local energy reduces the burden on and inefficiencies associated with the transmission and distribution infrastructure, as compared to when electricity is produced centrally. There are also significant economic benefits, as rooftop solar creates more jobs per megawatt than any other form of energy.

Q: What impact can this have for our energy future?
A: As more consumers seek to power their own homes and businesses, we will continue to increase an energy choice that is absent in the current monopoly utility model, and decrease our dependence on polluting fuel sources from central power stations. Granting Oklahomans energy empowerment and choice will continue to pave the way for a more sustainable and cleaner energy future in the state.

Solar Energy on the Rise

As our calendar clicks along with Summer fast approaching, soon we will be seeking respite from the blazing sun and likely our 100+ degree sweltering days. Yet, with each passing year, the sun, more specifically solar energy, is becoming a growing, positive way to help keep Americans cool during those Summer afternoons.

In fact, according to the Solar Energy Industries Association (SEIA), 2013 was another record year for the U.S. solar industry. There were 4,751 MW of new photovoltaic (PV) capacity installed in 2013, representing a 41 percent increase in deployment over installation levels in 2012. That’s the most installations in any year, ever. Solar accounted for almost 30 percent of all new electricity generation capacity added in 2013, up from just 10 percent in 2012, which made solar the second largest source of new electricity generating capacity behind natural gas. And as we Oklahomans know, we are blessed with significant amounts of natural gas below our Earth’s surface, accounting for as much as 10% of America’s domestic production. Likewise, we know we are similarly blessed with significant sun exposure (aka opportunity), with an almost 70% rating for sun exposure during every waking hour, according to the National Climatic Data Center.

This “% Sun” number measures the percentage of time between sunrise and sunset that sunshine reaches the ground and our measure of 68% for Oklahoma City places us above southern cities such as: Atlanta, Dallas, and even hot Houston. Our City’s sun exposure rating is actually tied with ‘sunny San Diego’ and so we have tremendous opportunity to integrate this daily, free fuel source, into our daily energy needs.

A few statistics from the SEIA that helps convey this fast-growing trend:

  • There are now over 13,000 MW of cumulative solar electric capacity operating in the U.S., enough to power more than 2.2 million average American homes.
  • There were 140,000 new solar installations in the U.S. during 2013, bringing the total to over 445,000 Photovoltaic (PV) systems operating today.
  • The utility market led the charge again with 2,847 MW of PV and 410 MW of Concentrating Solar Power (CSP) installed in 2013, including our neighboring Capitol city of Austin, Texas where they are adding utility scale solar for their customers’ benefit.
  • Year-over-year, the national average PV installed system price declined by 15% to $2.59/W in Q4, which is becoming very competitive versus traditional fuel sources of coal and natural gas.
  • The average price of a solar panel has declined by 60 percent since the beginning of 2011 and many Americans are finding affordable value

And forecasts for this year?

Close to 6,000 MW of PV are forecasted to come online throughout 2014, which represents an incredible 26% growth over 2013’s own record installation totals. 2014 will be a record year for CSP as 840 MW are expected to be commissioned by year’s end, with more and more Utilities moving towards this now affordable, clean energy option. Together, new solar electric capacity projected to be added in 2014 will generate enough clean energy to power over 1.13 million average American homes and that includes running those air conditioners throughout August when the heat (and the cost of electricity) are typically the worst of the year.

So whether you are considering adding some smaller scale solar to your own home or business, or whether you are talking with your neighbor that happens to work for the local electric Utility, please know, as The Beatles once predicted: Here Comes The Sun.

Now more than ever.

This article first appeared in the Journal Record: http://goo.gl/5xRQ1D

The Business of Being in a Rock Band

If you were preparing to start a new business, one of your first moves would likely be to sit down with a trusted adviser and your key partners to organize and set your objectives. You might consult with a lawyer to recommend the right entity structure and draft agreements, or to help you anticipate the potential legal risks and pitfalls that you will need to avoid in the future. But, what if your startup business is a rock band that you formed in your garage and your business partners are only interested in creating music? Ignoring the business of working as a songwriter or performer in rock, country, blues, or any other genre of music could cause you to hit some very sour notes down the line.

Are you serious about creating original music and taking it on the road to share with the world? If so, it’s a good idea to start treating your band like a business so that you have a plan for resolving conflicts with other members, protecting your long-term interests, getting paid and paying your fair share of taxes.

Here are a few suggestions.

  • Start with creating a business structure and an operating agreement between band members for making management decisions, signing contracts, handling money and getting paid.
  • Don’t expect a venue owner to write you separate checks. Include terms and procedures for members to join or exit the group.
  • Decide who owns your instruments, equipment, and touring vehicle.
  • Decide which members own the rights to your band’s music and make sure that you copyright your songs.
  • Ensure that you have appropriate resources to review contracts for gigs, publishing, licensing and recording deals.

For many musicians, these issues can be headaches, but ignoring them only leads to greater problems down the road. Some bands split up before realizing their potential and others surrender their long-term profits and creative interests, never enjoying the full rewards of their success.
Let’s be honest, most musicians are built a little different, but creativity doesn’t have to be sacrificed for success. With the right planning and guidance, you can rock while you’re ready for success and avoid many of the legal problems that otherwise might start to emerge, just as your songs are climbing the charts.

Originally featured in the Journal Record.

Roth: Lack of Infrastructure Wastes Natural Gas

In Jay McInerney’s 1984 novel Bright Lights, Big City, the main character (ironically from Oklahoma) gets caught up in the hedonistic, fast-paced life in New York City. The life of parties, drugs and eventual humiliation and loss eventually forces him to escape from the dangers of these bright lights.

If you were to look upon Google Earth at a night view across America, you might be surprised to see bright lights in rural North Dakota, even brighter than Minneapolis, Oklahoma City and many other metropolitan areas. What are these bright lights? Is there danger like that depicted in the novel?

The light visible from space is the effect of massive flaring of natural gas, being discarded in the production of American oil. Is the danger worth it? You decide.

North Dakota’s oil and gas industry has experienced incredible, exponential growth recently. This pace inevitably comes with some growing pains. One serious problem facing North Dakota, and perhaps America, is the issue of natural gas flaring. Nearly 30 percent of the state’s natural gas is flared each year. Last December, North Dakota flared a staggering 36 percent of its gas.

Why is there so much flaring in North Dakota? Growth of North Dakota’s oil and gas industry has been so rapid that infrastructure has been unable to keep pace with production. The state lacks the adequate pipelines and infrastructure to get much of its gas to market. Also, oil prices are relatively high while natural gas prices are historically low, so most oil and gas producers are more concerned with oil infrastructure. Finally, North Dakota has pretty lax standards for flaring. Oil and gas producers in North Dakota can flare natural gas for one year without having to pay royalties or taxes on the gas. After a year, companies can ask for an extension if it would be difficult to connect to a gas pipeline.

Such widespread flaring has serious environmental and economic consequences. North Dakota’s flared gas releases about 6 million tons of carbon dioxide into the atmosphere each year, about the equivalent of three midsized coal plants. Flaring also has a serious economic impact. North Dakota energy analysts estimate that the state is flaring about $1 million worth of natural gas per day.

The amount of gas North Dakota flares is unprecedented in the U.S. Texas flares less than 1 percent of its gas. Statistics on flaring in Oklahoma are not as readily available, but the state has much better gas infrastructure. This enables companies to get gas to the market rather than flare it, thus improving their bottom line and all of our skies. Further, the Oklahoma Corporation Commission has recently taken proactive steps to modernize its rules to address flaring.

North Dakota is finally taking some steps to slow down flaring. Oil companies have set up a task force to find ways to lower the amount of flaring. The North Dakota Industrial Commission, which is responsible for regulating the oil and gas industry, recently adopted several changes aimed at reducing flaring to 5 percent by 2020. Importantly, the commission will now require all companies receiving drilling permits to have gas capture plans. The commission also made clear that it would carefully review each gas capture plan and reject those that were not viable.

It is in everyone’s best interest for us to develop our abundant natural gas resources prudently. Wasting this precious resource is no longer an option – not for landowners, oil companies, or Mother Earth.

Roth: Oil and Gas Companies Help Regulate Methane

Colorado has become the first state to regulate methane emissions from its oil and gas industry. More interestingly, it’s the first one to do so with the help of the oil and gas industry.

As most Americans know by now, natural gas is a cleaner-burning domestic resource that is helping our country reduce its industrial and power plant pollutions. It is helping in many other ways, as well. Yet, aspects of natural gas deserve some care.

Natural gas is made primarily of methane. Gas leaks can lead to methane emission. Methane is the second-most-prevalent greenhouse gas in the U.S. This is problematic because methane’s effect on climate change is more than 20 times greater than carbon dioxide. While methane has a shorter lifetime in the atmosphere than carbon dioxide, it’s 84 times stronger than carbon dioxide at trapping heat in the atmosphere over the first 20 years after emission.

Colorado’s new collaborative regulation requires oil and gas companies to follow stricter methane leak detection standards. Oil and gas companies in Colorado must find and fix methane leaks from tanks and pipes. Oil and gas companies must also install leak control technology that will capture 95 percent of volatile organic compounds, or VOCs, including methane. These steps will help greatly.

It’s estimated that the new regulation will reduce more than 100,000 tons of methane each year and 90,000 tons of smog-creating VOCs. This reduction is equivalent to removing all Colorado cars and trucks from the road for a year. That’s a lot.

Notably, this regulation was supported by three of Colorado’s largest oil and gas producers – Anadarko Petroleum, Noble Energy and Encna. These companies worked with the Environmental Defense Fund to draft the rules. While acknowledging that Colorado’s new rules were strict, Noble Vice President Ted Brown said he thought the rules were smart, and that they ensure that oil and gas is developed in the safest possible way for communities and the environment.

Natural gas is a vital resource that allows us to significantly reduce greenhouse gas emissions by replacing coal power plants with natural gas plants. Natural gas power plants emit about half as much carbon dioxide as coal power plants, less than a third as much nitrogen oxide, and only 1 percent as much sulfur oxides as coal plants. Coal remains the single greatest cause of greenhouse gas effects and we need natural gas to help curb the negative effects.

Colorado has set an innovative example for how to practice environmental responsibility while at the same time fostering a strong oil and gas industry, showing that the two are not mutually exclusive. More states could follow Colorado’s example. Focusing on reducing methane leaks will make natural gas production more efficient and more environmentally responsible, thus increasing its already sizable environmental advantages over coal. For gas-producing states like Colorado, Oklahoma, New Mexico, Texas, Louisiana, Arkansas and beyond, the path seems worthwhile.

Complicated issues like methane emissions will continue to call for sensible, balanced approaches to move us toward a cleaner energy future. No country is better at facing such challenges, and the best approaches happen when industry and environmentalists work together and help lead the way.

Roth: Oklahoma’s Renewable Energy Potential

Energy has always been an essential industry to our state. Not only is Oklahoma an industry leader in oil and gas, our state is also at the forefront of the renewable-energy industry.

The primary source of renewable energy in Oklahoma is wind, as we have enjoyed continuing growth lately. Oklahoma’s wind energy sector has seen a meteoric rise most recently. In 2002, Oklahoma had virtually no installed wind power capacity. Now our state has the sixth-largest installed wind capacity in the nation, with 3,134 megawatts.

The U.S. wind industry has experienced rapid growth recently, as well. In 2012, wind power constituted 43 percent of all electricity capacity additions, passing natural gas as the leading source of new capacity despite historically low natural gas prices. The United States trails only China in installed wind capacity, with 60 gigawatts.

In addition to wind energy, our state also utilizes many of our plentiful lakes and rivers to produce hydroelectric power. In 2012, Oklahoma had 805 megawatts of installed hydroelectric capacity. Three of Oklahoma’s largest lakes, Grand Lake, Lake Eufaula, and Lake Texoma, produce electricity through hydroelectric dams. The U.S. produces about 10 percent of the world’s hydropower, with a total capacity of 78,241 megawatts.

Oklahoma is also a leading state in geothermal energy, which involves using the earth’s temperature to heat and cool buildings. Oklahoma State University’s campus is home to the International Ground Source Heat Pump Association, which is a leader in geothermal research and development. The U.S. currently leads the world in geothermal energy, with 3,386 megawatts of installed capacity. Geothermal can be used for electricity generation, but in Oklahoma its main application is for heating and cooling buildings. Most Oklahoma utility companies offer heat pump rebates to encourage the use of geothermal.

Despite Oklahoma’s growth in renewable energy, we still have tremendous untapped potential, particularly with solar energy. In 2012, Oklahoma produced about 300 kilowatts of electricity from solar photovoltaic energy, but we have the potential for much more solar production. Maps of solar resources in the U.S. show that Oklahoma has above-average potential for solar energy, especially western Oklahoma. Thus, the door is open for Oklahoma to become a leader in yet another energy sector.

Oklahoma is helping push the U.S. to the front of renewable-energy development, creating a cleaner, more sustainable future for all, while bringing jobs, secondary income to some farms and real savings to many Oklahoma families’ households.

Roth: The Costs of Carbon Pollution

With increasingly erratic weather, massive snowstorms, more than 40,000 flights canceled in January and hundreds of millions of dollars spent in response, preparation and loss of productivity, some could rightly argue that we Americans are already paying the price of carbon.

A growing movement among policymakers to address costs at the actual source of pollution is a step toward relieving America from the risk of climate-based catastrophes.

Power plants are the largest stationary source of carbon pollution in the United States, accounting for nearly a third of greenhouse gas emissions. Last year, President Barack Obama introduced his Climate Action Plan. One of its main goals is the reduction of carbon emissions, which are widely known to cause climate change and erratic, damaging weather.

The U.S. Environmental Protection Agency recently proposed a rule that would set pollution emission standards for new fossil fuel-fired electric power plants. It sets emission standards for natural gas combined-cycle units and coal-fired units. As they are currently designed, natural gas units don’t need additional technology to meet the emission standard because they burn cleaner coal.

Coal-fired units, however, would all be required to use carbon capture and storage, or CCS, technology to lower emissions. Only one coal-fired unit in the U.S. is currently using CCS. The EPA’s proposed standard for coal-fired units is 1,100 pounds of carbon dioxide emissions per megawatt-hour of electricity. A typical coal plant that doesn’t use CCS technology releases at least 1,800 pounds of carbon dioxide emissions per megawatt-hour.

The main debate centers on whether it’s feasible to require that new coal units implement CCS. The EPA argues that the technology is market-ready and feasible. Another coal unit is being built with CCS technology. The coal industry argues that implementing these proposed emission standards would effectively ban the construction of new coal plants because CCS is unproven and expensive.

The coal industry has a point that CCS is unproven. We don’t know much about the effectiveness or cost. That may be a big gamble for utility customers, as a coal unit typically has a 60-year life on your bills.

However, carbon pollution has many serious consequences. Setting a standard for power plants is an effective way to lower carbon emissions at the source. Carbon pollution leads to rising global temperatures and sea levels, disruptive weather patterns, damages to the world’s agricultural production and changes in ecosystems. It creates serious threats to public health, like increasingly frequent and severe weather disasters, heavier smog, respiratory diseases and an increased range of ticks and mosquitoes, which can carry diseases.

A problem as daunting as carbon pollution will require bold, creative action. The costs associated with the EPA’s proposed carbon emission standard are substantial. However, the costs of carbon pollution could be immeasurable.

There’s no magic method for reducing carbon emissions, but the EPA’s proposed carbon emission standard is a step that should be taken to start preserving our environment and economy for future generations. We are already beginning to pay for pollution in storm cleanups, rising insurance rates, crop failures, food prices, economic productivity and health care costs.

Some may suggest that we shouldn’t do anything to control our destinies, when emerging economies like China are reluctant to act. I ask them: When did America choose to follow, rather than lead?

Roth: Farm Bill Addresses Climate Change

The federal government has started taking some necessary steps toward addressing climate change.

Congress included some important measures in the recently passed farm bill that will help address some environmental issues. For one, the farm bill has a provision requiring farmers to meet a minimum standard of environmental protection to be qualified for federal crop insurance on sensitive land like wetlands.

Farmers who own sensitive land and want to obtain crop insurance on that land must implement an approved soil conservation plan on highly erodible land that is currently producing crops and was cropped before 1985.

Another provision in the farm bill takes program benefits away from farmers who fill or drain wetlands or expand existing drainage on farmed wetlands. All of these provisions will encourage best practices in terms of conservation and ensure that farmers are managing their land in a sustainable manner.

Another measure that President Barack Obama announced to address climate change is the establishment of seven regional climate hubs throughout the country, including one in El Reno.

The purpose of these climate hubs is to assist farmers and rural communities in responding to climate change, including drought, invasive pests, fires and floods.

These measures are important because climate change could have a severe impact on the U.S. agriculture industry, which contributes about $200 billion to the economy every year.

More extreme temperatures can prevent the growth of many crops. An unfortunate example of this occurred in 2008, when the Mississippi River flooded right before harvest. This resulted in an estimated loss of $8 billion for farmers. The government estimates that the U.S. economy lost $50 billion due to drought from 2011 to 2013, and much of the losses were from the agriculture industry.

As climate change continues, the increasing extremity of weather will have plenty of serious consequences, both environmental and economic. For example, this past January, much of the country experienced extremely cold temperatures. Several industries of the U.S. economy were negatively affected by the weather, including the U.S. auto industry, where Ford, GM and Toyota cited weather as having a negative impact on their sales. Job creation was less than anticipated in January, and many economists cited the miserable weather as a large factor.

With increasingly severe weather year after year, it has become imperative for America to start addressing climate change. The measures in the farm bill and President Obama’s establishment of climate hubs will be a nice, albeit small step forward to help farmers implement the most sustainable practices.

Continuing to implement incremental policies that address climate change will benefit farmers, the agriculture industry, the economy as a whole, and the environment. The farm bill and the establishment of climate hubs are a step in the right direction.

Roth: Canadian Ports Incentivize Energy Efficient Ships

Oh, Canada! Our neighbors to the north are creatively incentivizing their industries to be profitable and environmental. Here’s how.

Two major Canadian ports are offering financial incentives to ship owners whose vessels have low overall emission of greenhouse gases and relative energy efficiency compared to ships of similar size and type. The Canadian west coast ports are using an A-to-G rating system for greenhouse gas emission. The system was developed by RightShip and the Carbon War Room. As you might expect, vessels are rated from A, being the most efficient, to G, being the least efficient.

Port Metro Vancouver’s Eco-Action Program and Prince Rupert Port Authority’s Green Wave program are among the first in the world to offer rewards to the most efficient vessels that enter their ports.

The International Maritime Organization, or IMO, acknowledged that greenhouse gas emissions attributable to international shipping are a tricky thing, mainly because the emissions can’t necessarily be attributed to one particular country. As shipping becomes more pronounced in light of growing international trade, efforts to encourage energy efficiency can be a bit complicated.

In 2009, IMO released an assessment of the level of greenhouse gases emitted by ships internationally: 879 million tons, or about 2.7 percent, of the global man-made emissions of carbon dioxide in 2007. Efforts are underway to update this study in light of the global economic crisis in 2008, as well as the related fast pace of recovery in international trade since then.

The source? Exhaust gases, which make up the primary source of greenhouse gas emissions from ships and of carbon dioxide.

Consider this: The energy consumption of a bulk ship carrier is equal to that of 113 semi trucks, or 4,160 compact cars. Interestingly, in the United States, the American Clean Skies Foundation recently commissioned a study examined the effect of converting from diesel to natural gas in shipping.

There are obvious hurdles to achieving this objective, mainly one of infrastructure, which could be a costly investment. But, utilization of natural gas by America’s shipping industry would not only provide greater fuel flexibility, according to the American Clean Skies Foundation, but the reduction in nitric oxide and greenhouse gas emissions would be substantial.

Given the fact that natural gas is an affordable commodity and a sure bet, maybe one day the shipping industry will get a financial incentive both for being energy efficient and for using a cleaner, cheaper source of energy while helping to clean the air around the world.

Now that’s another reason why the U.S. and Canada can continue to maintain the longest-running peaceful border in the world.

I’ve had the good luck of 11 summer fishing trips to north-central Ontario and I have witnessed firsthand the magnificence that Canada is rightly working to preserve. Our national beauty is worthy of similar incentives and protections.

Roth: Toxic substances need new regulation

On Jan. 9, some residents in West Virginia near the Elk River began complaining of a strange licorice-like odor. Just 1.5 miles downstream from a water-treatment center on Elk River, a chemical called 4-methylcyclohexane methanol, or MCHM, had started leaking through a 1-inch hole in a steel storage tank. Although the investigation is in the early stages, it appears the responders to the neighbors’ call discovered the spill and alerted the unknowing operator. There are now battles over testing and efforts to determine what exactly has leaked and the possible risks to the water sources.

The chemical MCHM is utilized in coal-processing plants to help remove fine particles of coal from surrounding rock in a process commonly referred to as froth flotation. The Etowah River Terminal, where the chemical was being stored, is a liquid bulk storage distribution facility that serves the Port of Charleston, W.Va. There, Freedom Industries, which within one week of the spill filed for bankruptcy protection, operates 13 bulk tanks with a liquid storage capacity of 4 million gallons.

It is estimated that there are more than 84,000 industrial chemicals that are used in the United States and our regulators know very little about most of them. The last major congressional act passed on this subject was the Toxic Substance Control Act of 1976. It is widely criticized as being ineffective. A total of 62,000 industrial chemicals, including MCHM, have been grandfathered by the Toxic Substance Control Act of 1976. This means that MCHM has never been tested by federal regulators. In fact, none of those 62,000 industrial chemicals that were grandfathered have to be tested. Also, current regulations as a result of the act require little testing for new industrial compounds. This lack of regulation is now at the heart of the post-spill debate. What was leaked? What are its risks? What should the public know about its water quality?

In essence, a chemical that we know very little about just started leaking into a major source of water supply. Now, nine West Virginia counties are telling their citizens: “Don’t drink the water.” Industry reports about the chemical itself are mixed. At the very least, this has led to some confusion about how to clean up and treat folks who have been exposed to the MCHM in varying degrees of toxicity. The reality is that the public safeguards should be in place for transparency before and after such occurrences.

Perhaps Congress will lower some of its own toxicity to actually revisit a law designed to protect all of us from toxic chemicals across America. One can hope, right?

Roth: U.S. Freeze Fuels Global Warming Debate

Record-breaking cold winter temperatures for the new year have raised many questions about climate change.

As the word “selfie” became the buzzword of 2013, “polar vortex” may be the new hot phrase for 2014.

It has brought arctic chill to the continental United States and disrupted industries, cities and thousands of individual lives.

According to some climate-change researchers, global warming may be contributing to the polar vortex and actually causing the recent frigid temperatures across most of the nation.

While it seems contradictory, research argues that plunging temperatures could come from changes in the jet stream caused by climate change.

Rutgers University climate scientist Jennifer A. Francis has released a number of papers on the subject.

Her conclusions suggest that warming arctic air caused by greenhouse gas emissions has caused the jet stream to change in a way that is pushing colder air farther south.

Francis said the jet stream shift has sent frigid air across the central part of the country, and deeper into the South than normal. Alaska, meanwhile, is being hit by unusually warm conditions and California is facing record-breaking drought. Strange weather is becoming more likely because of climate change, she said.

A 2010 NASA analysis tied colder temperatures in 2009 to an event similar to a vacillating pressure system over the North Pole call Arctic Oscillation. That oscillation pushed cold air to the south.

The NASA analysis also said that despite cold snaps and other weather changes being a part of naturally occurring patterns, they are still in line with a globally warming world.

Francis said big fluctuations in the jet stream cause extreme weather conditions to hang around longer, and greenhouse gas emissions are a key factor.

Massachusetts Institute of Technology atmospheric scientist Kerry Emanuel said long-term climate change can only be seen by looking at detailed statistics.

“It’s plausible, at least for a while that a changing jet stream may cause colder winters,” she said.

A new video posted on the White House website is aimed at climate change naysayers’ claims that the polar vortex is a sign global warming doesn’t exist. John Holdren, science adviser to President Barack Obama, said no single weather event can disprove climate change.

“If you’ve been hearing that extreme cold spells like the one that we’ve been having in the United States now disprove global warming, don’t believe it,” Holdren said.

Holdren said the U.S. should expect more instances of arctic-like weather in the future as the polar vortex weakens its centralized hold due to global warming.

He also contends the Arctic is warming roughly twice as rapidly as the mid-latitude regions of the globe, such as the U.S. His conclusion is the temperature difference between the mid-latitudes and the Arctic is shrinking. Those events cause the polar vortex to become less stable, meaning there will be more frequent cold snaps headed farther south.

The administration’s group called We the Geeks recently hosted a conversation on the polar vortex and extreme weather with meteorologists, climate scientists and weather experts. Cristin Dorgelo and Brendan Kelly from the White House Office of Science and Technology Police moderated the live event.

Most scientific research finds that climate change is still real and very serious. The IPCC Intergovernmental Panel of Climate Change has said it’s extremely likely that humans are the dominant cause.

Roth: Congress ends wind energy credits

On Jan. 1, subsidies for U.S. wind energy ended with Congress refusing to renew them. Perhaps they are among the many victims of an inactive Congress. It was recently rated perhaps the least-working Congress in history.

Either way, wind tax incentive aid enabled renewable-power suppliers to build clean energy across many areas of Oklahoma and in turn has made cheaper power available to Oklahoma families.

In fact, wind projects installed in Oklahoma in 2013 were actually able to bid 20-year leveled energy at prices far below the delivered cost of coal, which has usually been cheapest – at least until you add in the costs to remove coal’s many pollutants.

In one way or another, the U.S. has subsidized wind-sourced electricity since 1992 to promote the use of cleaner energy and lessen America’s dependence on the fossil fuels blamed for climate change.

Last year, billions of dollars in wind production tax credits, or PTCs, amounted to ratepayers saving 2.3 cents per kilowatt-hour, or kWh, of electricity.

Coal still leads the percentage of American electricity at 37 percent; natural gas provides 30 percent. Nuclear power provides 19 percent, with renewable energies growing to account for the rest.

More than 13 gigawatts of new wind power capacity was added last year to the U.S. grid, bringing the total to more than 60 GW, with the capacity to power more than 15 million homes each year.

An estimated 72 percent of wind turbine parts for U.S. wind farms are manufactured domestically. According to recent study by Environmental Entrepreneurs, more than 186,500 clean energy and clean transportation jobs have been announced across the country in the past two years alone.

Wind energy is now, on average, the second-cheapest U.S. energy source.

According to the Department of Energy, the average cost of natural gas from a new plant in 2018 will be 6.7 cents per kWh, compared with 8.7 cents for wind, 10 cents for coal and 11 cents for nuclear power.

Energy from offshore wind farms remains at 22 cents per kWh.

The end of the tax credit or Congress’ inability to act does not put an end to this growing industry. Wind operators whose construction began before Dec. 31, 2013, may continue to earn the federal benefit for 10 years, with only new projects being subsidy-free.

Currently 29 states have set their own renewable-energy goals thereby encouraging operators to invest in wind.

By 2020, California is expected to produce a third of its electricity from renewable sources, while Maine has a goal of 40-percent renewable energy by 2017.

According to the American Wind Energy Association, technological advances have helped drive down wind production costs by more than 40 percent in the last four years and these improvements will continue to drive down costs.

Clean energy is a smart investment that will benefit our health, economy and environment for decades to come. Our country should make sure these investments continue to provide cleaner options for our utilities, which are tasked with meeting our growing electric loads.

Roth: Resolutions for an Eco-Friendly Life

Happy New Year to all and may 2014 reveal all the promise for you that feels possible.

The age-old practice of adopting resolutions at the start of the year has no doubt led to significant improvements in peoples’ lives. Improving your health by quitting cigarettes or altering your schedule to guarantee more quality time with your children can directly and indirectly improve and extend your life and the quality of the lives of those around you.

But there’s an approach to life that is, at our core, an effort worth making every single day of the year. Call it the golden rule, or a life of purpose, but the mere intention, commitment and repeated actions to live more friendly is perhaps the greatest resolve to have. Actions, or often inactions, affect each other. With a few purposeful thoughts, we can make a huge difference for ourselves, our families and in the end for the broader family of all the earth.

Here are a few ideas to consider for an eco-friendly life.

Haste makes waste: Americans can do a lot to benefit our wallets and our environment by simply slowing down some. Almost a third of all U.S. carbon dioxide emissions come from driving. The American Public Transportation Association suggests that using public transportation saves as much as 1.4 billion gallons of gas and 1.5 million tons of carbon dioxide each year. As you know, public transportation isn’t readily available to much of Oklahoma and likewise 88 percent of all trips in America are by car, so here’s what we can resolve to do: If you drive slower, even a few miles per hour, your car uses less gas, burns less pollutants and causes less damage. We are still better off walking, riding a bike, or taking public transportation whenever possible, but even a subtle decrease in our pace can make a big difference.

Grow your own: About 35 percent of our landfills are comprised of food waste, food scraps and food-soiled packaging and containers. Americans waste about 25 percent of our food purchases, either in food that spoils or over-preparing quantities that are never consumed.

Growing your own food – or at least a portion of it – enables you to eat healthier, teach your family valuable lessons about life and appreciating its bounty, and helps you reduce your expenses and food waste. Also, please remember to bring your own grocery bags when you can, choose recycled paper over plastic and reuse your food scraps, such as meat bones in soup, veggie trimmings in broth and stock, and build an easy-to-use compost pile for the rest.

Drips matter: Every drop of water is valuable, whether we are in one of our recent droughts or not. Fixing leaky faucets and not letting the water run while brushing your teeth are obvious simple things we should all be doing. But we can also repurpose that cold water in our tubs or showers while we are waiting for the hot water to arrive. Instead of letting that water run down the drain, capture it in a pitcher to reuse for indoor and outdoor plants or even for cleaning your household floors. There are many ways to reuse water if we just resolve to recognize that every drop has a purpose.

Gavel to Gavel: Year end tax advice

My grandmother always told me you should be generous, especially during the holidays. She also said you typically get more out of giving than receiving. Such is the case with charitable donations – you might not get more out of it, but the deduction for charitable contributions gives back to you, especially during year-end tax planning.

Generally, a tax deduction is available for cash contributions to qualified charities of up to 50 percent of your adjusted gross income and for charitable gifts of appreciated property of up to 30 percent of your adjusted gross income. As you climb into higher income levels, charitable contributions can offer more value as a deduction to help reduce your tax liability. This year, Uncle Sam has decided to raise tax rates on higher-income earners; those taxpayers may realize greater savings from their charitable donations.

For example, it might be best to consider donating the shares of stock your grandmother bought you when you were born. As long as the shares have appreciated and you’ve held them for more than one year, you can deduct the current fair market value of the stock and avoid the capital gains tax you would pay if you sold the property, which has increased from 15 percent to 20 percent for higher-income taxpayers.

Additionally, for taxpayers 70½ years and older with IRA accounts, it’s likely they are required to withdraw a percentage of their IRAs annually. For taxpayers in this category, a transfer of IRA assets directly to a charity is permitted through the end of the year. No charitable deduction is allowed because a deduction was permitted when the IRA originally was funded. However, the transfer is not a taxable distribution from the IRA account, yet it fulfills the obligations of the required minimum distributions for such taxpayers.

Consider that prepaying donations that you would otherwise make next year can reduce your 2013 federal income tax bill, because your total itemized deductions will be that much higher. As my grandmother would say, with the spirit of Christmas, coupled with the charitable donation deduction, consider how making charitable donations can work in your favor as you address your year-end tax planning.

Roth: Have an Eco-Friendly Christmas

I learned a great holiday and life lesson from my grandmother Anthony, a wonderful woman who lived a generous life but who never forgot the influence of her Depression-era childhood.

Her slightly used recycled wrapping paper, which found its way around our gift packages each year, was literal more of a lasting gift to me, over the years, than the toys or socks or button-down shirts she would often share with us kids. Thankfully, not a gift that I ever give or receive happens without an inner smile and a loving memory of her kindness and conscientious spirit.

Christmas is a wonderful time of giving for so many families. The Christmas spirit becomes contagious as we all receive joy from giving gifts to others and receiving gifts ourselves. We can add to this Christmas spirit by making our holiday celebrations a bit greener and more sustainable.

There are many simple adjustments we can make to ensure that our holiday festivities are more sustainable. Besides, having a greener Christmas usually leads to saving money, so everyone wins.

There are a number of sustainable gift-wrapping methods we can use. Buying wrapping paper each year can get expensive, and we often use and throw away large amounts of it. One alternative is to wrap our gifts in festively patterned cloth and use cloth ribbons. While cloth will probably cost more up front than wrapping paper, it will save money over the long haul because unlike wrapping paper, cloth can be reused to wrap gifts for many years.

Another surprisingly attractive gift wrapping option is to use old newspapers instead of wrapping paper. This gives a second life to something we would throw away anyway, and it saves us from spending money on wrapping paper. The newspapers can be recycled after gifts are opened. This is a more sustainable approach than buying wrapping paper each year.

Instead of using incandescent Christmas light bulbs, we can upgrade to LED lights. LED lights last longer and are more efficient than traditional light bulbs, so even though they are more expensive up front, they will save money over time. LED bulbs don’t get as hot as incandescent bulbs, so they pose less of a fire hazard. For extra savings and efficiency, timers can be set up to turn the lights off late at night. Some LED lights are even solar powered, altogether eliminating the use of electricity.

There is also a green alternative to sending out Christmas cards. Instead of sending out cards, we can email e-cards to our friends and family. E-cards have exploded in popularity in recent years, and they provide more options than traditional Christmas cards because many are animated video clips rather than pictures. Not only are e-cards more environmentally friendly, they also save money by eliminating the need for stamps.

So this Christmas, let’s spread holiday cheer to a new level. Let’s have a greener, more sustainable Christmas and save ourselves some green in the process. Happy Holidays to everyone.

Roth: Nature Conservancy Protects OK Ecosystems

The Nature Conservancy has yet again had a tremendous year of conserving our state’s beautiful and diverse landscapes.

The Nature Conservancy is a nonprofit organization founded in 1951 to protect ecosystems for nature and people. With more than 1 million members, it takes a leading role in all 50 states and 33 countries, protecting ecologically important lands and waters.

The Nature Conservancy itself describes its work as addressing threats to conservation that involve climate change, fresh water, oceans, and conservation land by pursuing pragmatic solutions with a non-confrontational, collaborative approach. To date, the organization has protected more than 119 million acres of land and thousands of miles of rivers around the world.

And they are doing good things here in Oklahoma. The Nature Conservancy has a vital and ever-growing presence in Oklahoma. It has worked to preserve unique landscapes in Oklahoma since 1986. The Nature Conservancy uses a program called Conservation by Design to identify landscapes that will have the greatest long-term conservation impact, and then the organization finds ways to preserve these landscapes. The Nature Conservancy maintains 12 preserves in Oklahoma, totaling 77,000 acres.

The organization’s Oklahoma preserves include the Tallgrass Prairie Preserve, the largest protected tallgrass prairie on Earth. The Tallgrass Prairie region once spanned all the way from Texas to Minnesota. But conversion to cropland and urban sprawl whittled down this area until only 10 percent of the region remained. The Nature Conservancy entered the scene in 1989 to preserve what remained. The organization has successfully restored a fully functioning portion of the ecosystem by using about 2,500 free-range bison and a patch-burn method of prescribed burn, where about one-third of the rangeland is burned each year.

Fire plays a vital role in ecosystems, but its role has become severely out of balance. The Nature Conservancy’s prescribed burning approach is used to help restore balance and improve biodiversity. In 2013, the organization used prescribed burn on 11,490 acres in Oklahoma, the second-largest prescribed burn season since the program was established in 2000.

The J.T. Nickel Family Nature and Wildlife Preserve is another recent Oklahoma success story. The Nature Conservancy took land that had been converted into a cattle pasture and restored it to its original prairie ecosystem by planting native wildflowers. The organization uses prescribed burns to restore the conditions that historically existed.

Perhaps most importantly, the Nature Conservancy is taking a proactive approach to Oklahoma’s sensitive water situation. The organization recently launched Oklahoma’s Statewide Freshwater Conservation Program to improve the way we manage our precious water supply. The organization has led by example, putting in place aquatic monitoring plans at its five main preserves in Oklahoma.

The Nature Conservancy’s recent move to Midtown in Oklahoma City should give it a central platform to engage the public on important conservation issues facing our state. The Nature Conservancy continues to be a vital leader at conserving Oklahoma’s beautiful landscapes, ensuring that this land remains for you and me for years to come.

Roth: LNG Export Opportunity

The global demand for liquefied natural gas continues to grow, and the United States is in prime position to become a leading LNG exporter.

Countries that lack a domestic natural gas supply must turn to LNG for their energy needs. Natural gas must be liquefied before it can be exported without pipelines. Once liquefied, LNG is shipped in tankers to the countries that purchase it. Several Asian countries, including Japan and South Korea, rely heavily on imported LNG. Japan and South Korea are the world’s largest LNG importers.

While the game-changing shale revolution in the U.S. has dramatically increased domestic natural gas production and made our natural gas extremely affordable, this is not the case throughout much of the world. In 2012, natural gas was $2.76 per million British thermal units in the U.S., compared to $11 per mmbtu in Europe and about $15 per mmbtu in Japan and South Korea.

The U.S. has a tremendous opportunity to capitalize on the worldwide demand for natural gas by increasing our capacity to export LNG. Currently, Japan receives much of its LNG from countries like Qatar, but this trend is starting to change. Both Japan and South Korea have recently made deals to purchase gas from American LNG terminals. In some cases, the two countries have offered to help cover the development costs for expensive LNG terminals.

Likewise, Australia and Canada are building more LNG terminals to increase export capacity. This seems like an expensive proposition for them, but when you look at the enormous price margins at play you realize they will recapture their capital investments very quickly.

Increasing our LNG exports would allow the U.S. to share its abundant, affordable natural gas with the rest of the world. It would add jobs to our economy. For example, Exxon Mobil is planning on building an LNG plant and terminal in Alaska that would employ 3,500 to 5,000 people. America could have the world’s largest LNG export capacity if all of the currently proposed U.S. LNG terminals were completed.

Although increasing LNG exports would provide many benefits to the U.S., doing so is a somewhat complicated process. For one thing, LNG export facilities must receive government approval before they contract to send LNG to non-free-trade countries. This can be problematic since South Korea is the only major LNG importer that has a free-trade agreement with the U.S.

However, the Obama administration has allowed four LNG terminals to export to non-free-trade countries, suggesting that this difficulty can be overcome. Another potential concern is that a dramatic increase in LNG exports could cause domestic gas prices to increase somewhat. Finally, LNG terminals are extremely expensive, so this can be an obstacle to increasing export capacity. But as mentioned, two countries, Japan and South Korea, have already offered to cover some of the development costs of LNG terminals, suggesting that the market will take care of cost concerns.

Even though increasing LNG export capacity will be a complicated process, the many benefits outweigh the few drawbacks. Sharing our abundant and affordable natural gas with the world will boost the U.S. economy while providing other countries with more affordable, clean energy, a win-win for all involved.

Gavel to Gavel: Wearable Tech and Privacy

We should have seen it coming. Maxwell Smart’s shoe phone heralded a future explo­sion of ubiquitous, wearable technologies.

Today, the landscape includes a growing assortment of inseparable, life-enhancing devices designed to help communicate, monitor, measure, and maintain our very existence. We’re more connected and better monitored than ever before, but at what risk to an individual’s privacy? Are our laws keeping pace with the enhanced capabilities of evolving technologies or are they holding back progress?

Generally, your rights and expectations of privacy are determined by your location. You have no expectation of privacy while standing in the middle of Disney World, but you have an extremely high expectation of privacy in the shower. Voluntarily putting oneself in public spaces generally defeats an expectation of privacy. The question remains as to whether putting yourself in a public space means you consent to being recorded, monitored or advertised to.

Some emerging wearable technologies are designed to appear like glasses, bracelets, watches or other unobtrusive accessories with the ability to record your activities or the world around you. One day you’re shopping down the vegetable aisle, the next you’re on a website called People of Walmart because you forgot you were wearing your favorite pair of leopard tights with a neon green sweat shirt. While being caught in that outfit may be embarrassing, your concern would be justifiably higher if you realized a stranger was recording video or taking pictures of your children.

On the more sinister side, as physicians use wireless versions of internal insulin pumps and pacemakers, security researchers are concerned about possible cyberattacks on such implanted medical devices, so much so that former Vice President Dick Cheney took note.

What’s the expectation of supplying adequate security on these implants by the manufacturer? The good news is companies are already offering cybersecurity for medical devices, ranging from wireless frequency jammers for your pacemaker to ultrasound devices that determine where and when a malicious actor attempts to access your implant. The Food and Drug Adminis­tration is pushing medical device companies to increase security on their products.

At its current pace, technology seems to develop with the central idea that users want to record and share everything. This development doesn’t bode well for individual privacy.

Roth: What Determines Electricity Prices?

Electricity prices generally reflect the costs to build, finance, maintain, manage, and operate power plants and the complex system of power transmission and distribution lines called the grid.

Electricity prices change constantly – literally every five minutes. A multitude of factors affect prices, some slightly, some dramatically. Some factors have a short-term effect. Others are long lasting.

Weather conditions, natural disasters, and consumer demand influence electricity prices every day. Legislation, regulatory changes, generation efficiency, and electricity grid and infrastructure costs affect prices on a long-term basis.

Major weather events like Rita and Katrina in the 2005 hurricane season produced destructive storms, causing major price volatility.

When an earthquake and tsunami hit Japan in 2011, a nuclear meltdown occurred at Fukushima Daiichi nuclear power station. This resulted in the U.S. Nuclear Regulatory Commission’s review of the ability of domestic nuclear reactors to withstand natural disasters. Subsequently, several nuclear facilities were taken off-line, and some new nuclear projects were abandoned at a substantial economic loss to facility owners and local communities.

Disasters are felt on a political and governmental level, too. Democrats and Republicans often disagree about re­sponses to disasters, such as the BP oil spill in the Gulf of Mexico. This causes delay and additional costs to consumers. A bipartisan approach is needed to implement a national energy plan.

Trillions of dollars must be invested nationally in the next few decades to upgrade the current infrastructure to a modernized, fully interactive smart grid. As utilities are required to rebuild transmission systems to ensure reliable delivery of electricity to homes and businesses, consumers will see delivery costs rise to cover these expenditures.

Commodity investors and speculators have had a large influence on electricity pricing.

While federal stimulus funds have been issued to some utilities for upgrades, most utilities will increase delivery tariff rates to cover costs.

The environmental consequences of coal mining, gas drilling, and power plant emissions affect electricity prices. In February 2012, the Nuclear Regula­tory Commission approved two new nuclear power reactors for the first time since the partial meltdown at Penn­syl­vania’s Three Mile Island plant in 1979.

Green or renewable generation, including solar, wind, and hydro, continues to grow slowly. The U.S. Environmental Protection Agency has cracked down on air pollution, imposing strict limits on environmental emissions from coal-burning plants, which generate most of our nation’s electricity.

Lower electricity prices also have slowed implementation of renewable generation. The costs of installing a green system remain high compared to traditional electricity.

The 2011-2012 winter season was exceptionally mild. Demand decreased for electricity to heat homes and businesses. Lower demand pushed prices down.

When winter weather causes an increase in heating demand, electricity prices increase. During peak summer times, the grid system can become overwhelmed by consumer demand. This causes electricity prices to climb and be volatile.

Electricity prices are affected most by the amount of consumer usage, and the time of day and season that electrons are consumed. Electricity prices are highest during times of peak demand in the late afternoon, and lowest overnight when demand drops.

Prices vary by locality due to the availability of power plants and fuels, local fuel costs, and pricing regulation and structures. Oklahoma consumers, with production fuel sources like natural gas and wind in abundance, have benefited from those factors.

Roth: How Natural Gas is Priced

Natural gas prices are no longer based just on its use for heating. With about 25 percent of the United States’ electricity coming from plants burning natural gas, it has become a larger part of our nation’s energy use. Although not yet used widely, some predict that it is also destined to be a large part of our transportation energy in the future.

Even with more uses, natural gas prices are historically low. Compared on an energy-equivalent basis, natural gas is cheap relative to other energy sources like heating oil and gasoline.

Today, huge new supplies of gas are coming on-line, thanks to horizontal drilling and hydraulic fracturing, which are tapping huge resources and lowering prices.

Since the beginning of the 2008 financial crisis, the stock values of gas production companies and gas pipeline companies have fallen. The path of future natural gas prices will influence the cost of electricity, especially in the Northeast.

Still the major use of natural gas is for heating, and supply and demand are mismatched for that purpose. Demand is highest in winter, typically exceeding supply during the heating months in the Northeast and Midwest. In the summer months, demand is lower than supply, making it cheaper in the winter and more expensive in the summer.

The unpredictable demand for gas means that gas has to be stored – often waiting until the price is right to sell.

Natural gas must be moved from its source to where it can be used or stored, requiring numerous pipelines. The U.S. has more than 300,000 miles of pipeline, yet it doesn’t go everywhere. Building and maintaining underground gas pipelines is expensive, and the companies that own them charge gas producers for usage.

Extreme weather can also affect gas prices. The very warm 2011-2012 winter in the Northeast led to lower demand for gas to heat homes, leaving record-high storage inventories and lower prices.

With more gas-fired electricity generators, summer weather that is hotter than expected can lead to more gas demand from air conditioners and depleted inventories for the winter and higher prices. A hot summer followed by a cold winter can produce a price spike. More volatile weather means more volatile gas prices.

The number of new wells being drilled and those in active production fluctuate. Some producers face pressure to sell gas even at prices they don’t like to make debt service payments on the money they borrowed to drill the wells.

The U.S. also imports gas from Canada and Mexico via international pipelines or shipped in special tankers, called liquefied natural gas, or LNG.

Trading and speculation of natural gas futures, derivatives, and investment funds also can affect the price of gas.

All the variables in supply and demand – including unpredictable weather, resistance to fracturing, and energy consumers adjusting their behavior to benefit from lower natural gas prices – make it complicated and difficult to predict future gas prices. But people are doing it every day, winning and losing, and so it goes.

Courts Eye Employer “Look Policies” for Civil Rights Violations

By Catherine Campbell

“Look Policies” – policies intended to promote the company brand by recruiting and requiring employees that fit specific cultural or physical characteristics or restricting clothing accessories – are currently a hot topic at the EEOC. The agency and others have, in recent years, challenged companies that institute such policies on civil rights grounds. Though not generally considered outright illegal, employers may apply “Look Policies” in a way that violates applicants’ and employees’ civil rights.

Looks-conscious, clothing retailer Abercrombie & Fitch has had several high profile problems with its look policy. For instance, in 2005, Abercrombie agreed to a six-year consent decree and paid $40 million dollars to a class of minority – including African Americans, Latinos and women – job applicants and employees for its alleged failure to hire, promote, and retain minorities because they did not fit Abercrombie’s “All-American look.”

Several years later, Abercrombie again sparked EEOC interest when it refused to hire several Muslim women who wore hijabs for religious reasons. In one case, a California federal district court determined that Abercrombie violated Title VII of the Civil Rights Act of 1964 by refusing to hire a Muslim job applicant because she wore a hijab. EEOC v. Abercrombie & Fitch Stores, Inc., Case No. 10-cv-03911-EJD (N.D. Cal. Sept. 3, 2013). When the court agreed that Abercrombie had failed to accommodate the applicant’s sincerely-held religious beliefs, Abercrombie, in September 2013, ultimately agreed to settle.

In another case, however, the Tenth Circuit reversed a jury verdict for a female, Muslim job applicant who was not hired because she wore a hijab. EEOC v. Abercrombie & Fitch Stores, Inc., No. 11-5110 (10th Cir. Oct. 1, 2013). The court agreed that while Abercrombie was required to accommodate a job applicant’s (or employee’s) sincerely-held religious beliefs, because the applicant never informed Abercrombie prior to its hiring decision that she needed an accommodation due to her religious beliefs, applicant could not establish a prima facie discrimination claim. According to the court, a plaintiff must act for religious, not cultural, reasons and his or her religious beliefs must place him or her in the position of “choos[ing] between their religious convictions and their job.” Slip Op. at 25.

Important for employers, at least in the Tenth Circuit, an employer cannot be liable for failure to accommodate a religious belief unless the applicant or employee explicitly tells the employer of the conflict and seeks an accommodation. Id. at 31. That is, an employer has no duty to glean from the circumstances that an accommodation may be necessary and begin a dialog. The dissent argued that the majority rule was too inflexible, because under the facts of the case, it allowed Abercrombie to escape censure. Although Abercrombie obviously knew that the applicant wore a head scarf, it never told her that wearing a hijab conflicted with its look policy, and the applicant was not aware that the hijab conflicted with the look policy. Dissent at 2. The dissent advocated for a “common sense exception to the usual rule” when an employer “has knowledge of a credible potential conflict.” Id. at 10, 1.

Of course, some corporate look policies do not raise issues. For example, a policy that requires certain clothing for safety reasons – say one that bans loose-fitting clothing worn around machinery – is generally permissible. On the other hand, an employer cannot restrict an employee’s protected rights merely because his or her co-workers are uncomfortable with a particular item of clothing. And, what about a policy that prohibits staff from wearing jewelry, but an applicant must wear a medical alert bracelet? Applying the policy could result in American’s with Disabilities Act liability. A savvy employer may well determine that a conservative approach is a better one. Although delving into a job applicant’s or employee’s religious beliefs or other protected characteristics is verboten according to the EEOC, the common sense approach advocated by the Tenth Circuit dissent may be advisable.

And what is an acceptable accommodation? A case filed against Walt Disney Corporation in 2012 may help answer that question. Imane Boudlal, a Muslim woman began working as a hostess at Storyteller’s Café, a Disney-owned facility. After working two years, Ms. Boudlal requested permission to wear hijab at work due to her religious beliefs. Disney denied the request as a violation of its “look policy,” but offered to either reassign her to a position which did not require interaction with the public or require her to wear a hat to cover the hijab. Ms. Boudlal refused the offered accommodations claiming that Disney was impermissibly attempting to stifle her “Muslim-ness”. The case is currently in litigation.

Roth: How are gas prices determined?

According to AAA, since January, retail gas prices have dropped at the fastest rate in nearly a year.

Currently, the national average price for a gallon of regular gas is $3.35. In parts of Oklahoma City, it is $2.87. AAA said the national average could drop another 25 to 30 cents per gallon by year’s end.

What really drives gas prices? The general rule, according to the Energy Information Administration, is that about two-thirds of the cost of gas at the pump is determined by crude oil cost. The remainder includes retail costs, federal and state taxes, refining costs, profits, distribution and marketing.

To turn crude into gasoline and sell it at the pump, oil must be refined, shipped and loaded into trucks for delivery to stations, where it is purchased for public resale. Long shipping routes, more refining, and remote station locations contribute to higher prices.

In 2004 the average price for crude oil was $37 per barrel. Crude was 47 percent of the price of regular gasoline. Today, crude is $111 per barrel and is two-thirds of the price we pay.

Worldwide demand has increased dramatically, particularly in China, India and Brazil – three countries with a combined population of 2.7 billion.

In summer 2010, gas prices were about $2.80. An unstable supply caused prices to rise when revolutions swept the Middle East. During Libya’s civil war its oil production fell more than 50 percent.

U.S. crude for December delivery fell 94 cents per barrel to $96.86, its lowest settlement since July 1. Brent crude, often considered a broader indicator of global oil prices, lost $2.17, ending the day at $107.80 per barrel, its lowest settlement price since Aug. 8.

The result is a buildup in oil supply in the U.S. Meanwhile, demand for gasoline remains flat, partially a reflection of the stagnant economy.

Analysts said the downtrend in retail gasoline prices will continue with reduced demand, increased U.S. production of oil and increased refining capacity.

U.S. refiners have an ample supply of domestic and Canadian crude, allowing them to make more gasoline. The U.S. met 87 percent of its own energy needs in the first six months of 2013, the highest rate since 1986.

The result is a buildup in oil supply in the U.S. Meanwhile, demand for gasoline remains flat, partially a reflection of the stagnant economy.

New technology makes a difference. Some suggest that fracking can do for oil and gasoline prices what it has been doing for natural gas prices. Vehicles now get considerably better gas mileage.

Inflation and taxes account for the biggest relative increases in the price of gasoline. The nationwide average tax on gasoline is 49.5 cents per gallon, up 0.1 cpg since July 2013. The federal tax on gasoline is 18.4 cpg. The average state gasoline excise tax is 21.4, up 0.5 cpg from July 2013.

It is expected that per individual there will be less fuel consumption, but more people will be consuming worldwide. These changes will affect pump prices.

Nationally, retail prices have fallen 25 cents since the end of August, as the 2013 Atlantic hurricane season was looking like the first in almost two decades without a major storm disrupting Gulf Coast production.

The common belief is that the price of gasoline is solely determined by the supply and demand of crude. Those are the major factors, but other components will continue to influence pricing.

Roth: Governor’s Energy Conference a Success

Gov. Mary Fallin’s third-annual energy conference successfully exhibited Oklahoma’s key role in the nation’s current energy renaissance. More than 500 guests attended the conference at Tulsa’s Cox Business Center and I witnessed firsthand the well-represented industries and people from across the energy spectrum.

Speakers at the conference included industry leaders such as C. Michael Ming, general manager at the new Oil & Gas Technology Center GE Global Research building in Oklahoma City; Michael Skelly, president of Clean Line Energy Partners; Michael Teague, Oklahoma secretary of energy and environment; Gary Demasi, Google director of operations for data center location strategy and energy; and Merl Lindstrom, vice president of technology at Phillips 66.

The conference also included two panel discussions. The first panel discussion included the presidents of Oklahoma State University and Oklahoma City University, Burns Hargis and Robert Henry respectively, and covered the topic of educating a new generation of energy leaders. The second panel discussion featured several of Tulsa’s energy leaders, including Mayor Dewey Bartlett’s welcome.

Demasi talked about Google’s important partnership with Oklahoma. Google has invested $700 million in its data center in Pryor – one of only nine Google data centers in the world. The company’s partnership with Oklahoma has led to $369 million in economic activity, and Google has contracted for 390 megawatts of wind energy in the region. Google recently acquired a former Gatorade manufacturing facility in Pryor. The tech giant shared its plans to continue expanding its renewable-energy portfolio and continue its important partnership with Oklahoma.

The keynote speaker at the conference was North Dakota Gov. Jack Dalrymple. Dalrymple spoke about North Dakota’s role in the domestic energy renaissance, particularly the oil-rich Bakken boom. He noted that despite the current energy boom, even more progress can be achieved by industry-leading states like North Dakota and Oklahoma, which have demonstrated regulatory approaches that find a healthy balance between energy production and the environment. He also noted the significant benefits the industries’ production means to their economy and their state budget.

Fallin spoke at the conference, advocating for continued investment in the Oklahoma energy industry. Fallin suggested that Oklahoma’s energy plan can provide a national blueprint for growth and reminded us that the state’s energy plan supports a broad range of energy initiatives, including hydraulic fracturing for natural gas production, energy efficiencies where possible, compressed natural gas vehicles, and development of solar and wind power. Fallin said Oklahoma energy companies have played an important role in making the United States more energy-independent, calling Oklahoma the best place in the world for energy investments.

The conference showcased just how important Oklahoma’s role is in the current energy renaissance. While Oklahoma has long been a leader in oil and natural gas production, the conference also demonstrated that Oklahoma is increasingly becoming an industry leader in wind energy development. Fallin’s all-of-the-above energy approach enables Oklahoma to reap the benefits of industry giants like Continental Resources, Oneok and Google, which will continue to bring tremendous economic benefits to our state. Fallin’s energy conference demonstrated that Oklahoma is on the right track and will continue to be on the cutting edge of the U.S. energy industry. The job was well-done, again.

Roth: U.S. Leads Europe in Natural Gas Production

European Union lawmakers recently voted to force energy companies to carry out in-depth environmental audits before they initiate hydraulic fracturing to recover natural gas, oil and liquids from shale rock.

The result is a setback for the shale gas industry in Europe, where many citizens are more concerned about the environmental effects than the benefits from energy production. It leaves Europe far behind the United States in developing recovery and production techniques.

The U.S. has widely embraced shale gas production, leading to a fall in domestic gas prices and making it possible to achieve energy independence in oil and gas by 2035, according to the International Energy Agency. It’s transforming our economy.

The 27-nation European Union has been slower to explore the possibilities. Policymakers from the EU are positioned to decide by the end of the year whether strict regulation is required.

Opponents of shale gas exploration in Europe say existing environmental law is inadequate for the potential risks of hydraulic fracturing (fracking). France has already banned the technique and others are considering following this move.

Pro-shale gas advocates insist that shale gas provides lower energy costs, can curb greenhouse emissions and could provide a more indigenous source of energy.

According to a recent report by investment bank Credit Suisse, after a decade or more of shale development in the U.S., the country is still in the early innings of growth. There are tens of billions more dollars expected for infrastructure and development. The renaissance in industrial development and manufacturing will continue to benefit.

This isn’t the case for the U.K. and the majority of the Europe Union, which largely relies on Russia for its gas supply. Not surprisingly, Russia has raised a lot of purported concerns about hydraulic fracturing. This is obviously designed to help maintain Russia’s dominance over Europe’s gas supply.

Despite a less positive outlook for Europe’s shale exploration, there could be additional opportunities for oil and gas producers, as well as oil service subsectors, in countries such as Argentina and China.

The Credit Suisse reported that U.S. crude’s effect on global oil prices is still muted. Increased U.S. production has coincided with global supply interruptions and Middle East/North African instability. The report added that a significantly weaker oil price is not an imminent prospect.

Natural gas is being substituted for other fuels, particularly coal, in electricity generation, resulting in lower greenhouse gas emissions from utilities. The use of natural gas in the transportation sector is currently negligible but is projected to increase in the U.S. with investments in refueling infrastructure and natural gas vehicle technologies. Petrochemical and other manufacturing industries have responded to lower natural gas prices by investing in domestically located manufacturing projects.

According to “The Shale Revolution II” report, strong drilling activity and continued technological progress should lead to significant oil production growth in key regions such as the Permian Basin, the Eagle Ford, Bakken and Niobrara Wattenberg shale fields, in west Texas, south Texas, North Dakota/Montana and Colorado, respectively.

The good news for Oklahoma, and America, is that while we are safely maximizing our domestic energy and transitioning our economy toward lower-carbon fuel sources, other parts of the world will lag behind and lose their competitiveness.

That’s good for America and American jobs.