Demand the US Attorney General Investigate Corruption in the Governor Corbett Administration

Please Investigate Corruption in the PA Governor Corbett Administration

Dear Attorney General Holder

We are appealing to you as citizens of the United States who believe serious wrongs are being committed in the state of Pennsylvania with regard to Marcellus Shale drilling. We believe the governor and advocates for this industry are working in direct conflict with the President's order to the EPA and Department of Energy to develop this source of energy responsibly and in an environmentally safe manner. In fact, we believe the governor has conspired with the natural gas industry to violate our rights as promised by the U.S. and Pennsylvania Constitutions.

In view of the fact that residents of the state of Pennsylvania have no means within the state to challenge this administration (all agencies charged with protecting citizen rights are directed by the governor’s appointees), it could be said that Pennsylvania is fast becoming a police state for the benefit of the natural gas industry. In addition, actions being taken by this administration violate the rights of citizens outside the Commonwealth’s boundaries.

We ask that you take it upon yourself to investigate corruption at all levels of Pennsylvania state government, particularly in the governor’s office and the Department of Environmental Protection.

Rationale:


At the conclusion of “BonusGate*,” the grand jury determined “without any hesitation, that the current operational structure and ingrained procedures of the Pennsylvania House Democratic and Republican caucuses are irretrievably broken and in desperate need of systemic change,” The grand jury “also called for a limited constitutional convention, saying it was concerned that the General Assembly ‘will remain in its ‘time warp’ and meddle with, obfuscate, ignore or kill every recommendation.’”

(*Pennsylvania "Bonus-gate" was the indictment of both democratic and republican members of the Pennsylvania Legislature and their aides who received illegally $4 million in bonuses and allegedly used taxpayer money to create computer software programs designed to give an upper hand in elections. Governor Corbett, while Attorney General, led the charge against these bonuses, but has greatly benefitted from ignoring the grand jury’s recommendation.

Since BonusGate, nothing has changed. Point of fact, one of the governor’s right hand men, a vehement proponent of gas drilling in Pennsylvania, Senator Joe Scarnati, accepted Super Bowl tickets from a natural gas company; only after this information was made public did the senator claim he was going to pay that company back. We believe that had there not been public outcry about an activity so blatantly unethical, the senator would have accepted this “bribe” and Governor Corbett and his Attorney General [William H. Ryan] would have looked the other way.)

While acting as Attorney General for the state, the governor took approximately one million dollars in campaign contributions from the oil and gas industry. While this in itself is not illegal (though, if representative government is still to have meaning, it should be), Governor Corbett has made it clear in the few short months since he has been in office that his allegiance is to the natural gas industry at the expense of the citizens of the Commonwealth.


If this administration were looked at as a “crime family” there is no doubt the U.S. Attorney General would be investigating its blatant conspiracy to push forward a corporate agenda designed to deceive and swindle the citizens of the Commonwealth.

Supporting Anecdotal Evidence
Cronyism is rampant in the Corbett administration. Of particular note, Mr. Corbett has formed a Marcellus Shale Advisory Commission comprised of mainly industry executives whose only goal is to drill into the Marcellus Shale bed at an unprecedented rate with as little regulatory oversight as possible. Of these commissioners, only the representative for the Chesapeake Bay Foundation expressed any interest in protecting the environment. None of its members represent the people of the Commonwealth where natural gas drilling is taking place. The only representatives of the “people” might be those from Lycoming County, but they represent landowners who have drilling taking place on their land. Those who don’t have gas wells on their property (the majority) have no voice whatsoever.
The advisory commission may not have any unilateral power to do anything other than make recommendations. And those recommendations must, of course, go through the legislative process. But, the Pennsylvania legislature (both House and Senate) is heavily pro-Corbett and there is evidence that Republicans are universally voting in lockstep to pass any and all Corbett proposals Witnesses seated in the gallery watching senate and house activities and have watched legislators vote for absentee colleagues. There can be no doubt that whatever comes out of this commission will be approved without benefit of citizen input.
Despite the governor’s expressed desire to receive a report from the commission, he has done nothing to deter legislation from being passed before the commission’s final report is prepared. At present there are numerous bills to benefit the gas companies at the expense of the citizens being debated in the legislature. Of particular note is Senator Gene Yaw’s bill calling for punitive forced pooling – those reluctant to sign a gas lease will be required to pay 300% of the production costs before receiving royalties if they are force-pooled. Other bills involve powers being given to pipeline companies an involve eminent domain, even though the “common good” has not yet been established..
It is our belief that this commission is merely window dressing, that the governor’s plans were established long before he took office, and that he will stop at nothing to irresponsibly and dangerously unleash Marcellus Shale drilling for his own gains.
Members of the Commission include:
Mike Krancer, acting Secretary of Environmental Protection, Harrisburg. Mr. Krancer’s wife donated $6,500 and his father donated $300,000 to the governor’s campaign. All notices of violations at gas company sites issued by DEP inspectors must now be approved by Mr. Krancer in advance of being made official or public.
Glenn Cannon, executive director of Pennsylvania Emergency Management Agency, Harrisburg. This office, along with its Office of Homeland Security, was investigated and then criticized strongly last year for having allocated funding and manpower to monitor those individuals and groups in the Commonwealth opposed to natural gas drilling in the state, and for having compiled intelligence bulletins treating those individuals and groups as potential eco-terrorists. Governor Corbett was Attorney General for the Commonwealth (and campaigning for office) while this was going on, and information gathered was being provided to former Governor Tom Ridge at the Marcellus Shale Coalition and his associates at another gas industry lobbyist group, the Bravo Group, by the Institute for Terrorism Research and Response which also works for former Governor Ridge’s company Ridge Global.
C. Alan Walker, acting Secretary of Community and Economic Development, Harrisburg. Mr. Walker was the first cabinet member Mr. Corbett selected. His environmental track record while working with the coal industry is appalling. In the governor's budget plan, Mr. Walker was given the unusual authority to place permit applications on the fast track when job creation is involved. This, despite the fact that DEP inspectors have testified they are already “rubber-stamping” permit applications because of lack of time and manpower to properly examine them for accuracy and completeness. This despite the fact that the Department of Environmental Protection is the agency responsible for granting permit applications. Mr. Walker contributed $106,607 to Governor Corbett’s campaign.
Patrick Henderson, the Governor’s Energy Executive, Harrisburg. Mr. Henderson was formerly aid to Senator Mary Jo White who heads up PA’s Environmental Quality Board. Her office has been known across the board as the place where “good environmental bills go to die.”
Robert Powelson, chairman of the Pennsylvania Public Utility Commission, Harrisburg. On March 8, 2011, Governor Corbett invited Mr. Powelson to serve as a member of the Marcellus Shale Advisory Commission to ensure that Pennsylvania maximizes the opportunity that Marcellus Shale presents in the most responsible manner possible. He donated $1,750 to the Corbett campaign.
James W. Felmlee, president of the PA State Association of Boroughs, Harrisburg. Mr. Felmlee is a proponent of the industry and rather than demand that environmental impacts be precluded or regulated, he calls for a law allowing local governments to charge an impact fee to offset the effect of drilling operations on roads, water supplies and air quality. He donated $820 to the governor’s campaign.
Clifford “Kip’’ Allen, president of the PA League of Cities and Municipalities, Harrisburg. He donated $200 to the Corbett campaign.
Gene Barr, vice president, Government & Public Affairs, Pennsylvania Chamber of Business and Industry, Harrisburg. Mr. Barr worked for over 12 years with BP America, the U.S. subsidiary of British Petroleum and has said on several occasions that the Marcellus Shale natural gas industry is the "real deal," but also warned the firms may bypass the state if its severance tax on the gas is too high.
Terry R. Bossert, vice president, Government & Regulatory Affairs, Chief Oil & Gas, Harrisburg, and former Chief Counsel at DEP. Corporate Executive. Mr. Bossert’s boss, the Chief Executive Officer of Chief , Trevor Rees-Jones, donated $100,000 to the Corbett administration.
Jeff Wheeland, Lycoming County Commissioner, Williamsport. Donated $450 to the Corbett campaign. Mr. Wheeland claims to be committed to expanding business opportunities associated with gas drilling in his county. He and his wife are involved in real estate. As such, they are suspected of owning land leased to the gas industry.
Vincent J. Matteo, president Williamsport-Lycoming Chamber of Commerce, Williamsport. Mr. Matteo is a proponent of this industry, co chair of the Lycoming County Community Gas Exploration Task force, The purpose of the CGETF is to identify key issues, research facts and information, and review and propose public policy regarding the positive, economic impact of gas exploration of the Marcellus Shale in Lycoming County. He has stated: "This is the most important economic development and job creation opportunity we've ever had,” and does not address environmental issues with regard to this industry.
Terry Engelder, professor of geosciences, Penn State University, Department of Geosciences, University Park. Dr. Engelder is considered the “father of the Marcellus” and has said on numerous occasions the natural gas industry is experimenting with new technology. He has also stated that people will have to sacrifice for the good of the gas industry. Penn State has received millions of dollars in donations from the natural gas industry. Mr. Engelder is a principal for a company called Appalachian Fracture Systems and consults for the natural gas industry. In addition, he has estimated that he has benefited from at least $6 million in grants from industry.
Barry Schoch, acting Secretary of Transportation, Harrisburg. Penn State graduate. Mr. Schoch describes himself as a transportation advocate who stresses the importance of adequate investment and the use of new technology. His company donated more than $85,000 to the governor’s campaign.
David Porges, chief executive officer, EQT, Pittsburgh. Corporate Executive. EQT is a gas drilling company that contributed $20,000 to the Corbett campaign while other EQT executives contributed another $30,450 and a political action committee controlled by the company provided another $6,450.
Christopher J. Masciantonio, general manager, State Government Affairs, U.S. Steel, Pittsburgh. U.S. Steel executives provided $20,000 and the US Steel political action committee gave another $15,500 to the Corbett campaign.
Dave Spigelmyer, vice president, Government Relations, Chesapeake Energy, Canonsburg. Corporate Executive. Chesapeake Energy executives donated $17,000 to the Corbett campaign at its political action committee gave another $20,000.
Randy Smith, U.S. Government Affairs Manager, Exxon Mobil, Fairfax, Va. Corporate Executive. Exxon Mobil’s political action committee donated $20,000 to the Corbett campaign.
Ray Walker, chairman Marcellus Shale Coalition, Canonsburg. The Marcellus Shale Coalition is a natural gas industry lobbyist group that has no interest in creating jobs or protecting the environment; its mission is to advocate for the natural gas industry. He is also vice president for the drilling company Range Resources. He contributed $26,800 while other Range Resources executives contributed another $54,000.
Chris Helms, NiSource Gas Transmission and Storage, Houston, Texas. Corporate Executive. NiSource GasTransmission & Storage donate $7,000, and other executives of the Houston, Texas company gave $9,000. The NiSource political action committee gave $33,500.
Terry Pegula, Delray Beach, Fla. (founder of East Resources). Corporate Executive. Mr. Pegula has donated several million dollars to Penn State which advocates for the natural gas industry. He also owns shale land. He and his wife contributed $380,000 to the Corbett campaign while other East Resources executives contributed another $31,000.
Jeff Kupfer, Chevron, Washington, D.C. Corporate Executive. Chevron recently acquired Mr. Kupfer’s former employer Atlas Energy. He donated $4,000 to the Corbett campaign while the company’s political action committee donated over $45,000.
Gary Slagel, chairman, PA Independent Oil & Gas Association, Wexford. Lobbyist Group Executive. Mr. Slagel is also director of government affairs for CNX Gas Corportation and donated $2,750 to the Corbett campaign while CNX’s political action committee donated $52,000.
Anthony S. Bartolomeo, chairman, Pennsylvania Environmental Council, Philadelphia. Mr. Bartolomeo is also chief executive of a Philadelphia engineering firm, Pennoni Associates, which contributed $19,550 to the Corbett campaign.
Nicholas S. Haden, vice president, Reserved Environmental Services, Mt. Pleasant. This company is a wastewater firm established to treat Marcellus waste.
Also included on this commission are representatives from three conservative Conservancies and the Chesapeake Bay Foundation. At the first meeting of the Commission, only the representative of the CBF challenged the Corbett administration’s natural gas drilling goals. An excerpt from a recent Patriot News article that succinctly and accurately reports that challenge follows:

The Chesapeake Bay Foundation stepped up with a list of specific environmental concerns that made many of the polite smiles around the table go thin.

“CBF would like to draw attention to the fact that Pennsylvania’s recently crafted Watershed Implementation Plan for the Chesapeake Bay total maximum daily load does not currently account for the cumulative increases in the nitrogen, phosphorous and sediment loads generated by the natural gas industry, an omission that will need to be addressed,” said staff attorney LeeAnn Murray.

“CBF also notes that DEP currently reviews permits for gas extraction on a permit by permit basis without viewing the potential comprehensive cumulative impacts resulting from increases in sediment loads from erosion and post-construction runoff from roads, wellpads, pipelines and other infrastructure.”

“It is issues like these that we believe may have an impact on water quality,” she said, “and with recent scientific studies indicating that water quality is affected by gas extraction activities we hope to discuss methods of reducing such impacts.”

She continued, and the polite smiles became more strained.

She said the foundation is “looking forward to discussing topics involving: shallow gas migration, the ultimate fate and risk of contamination from frackwater, documentation and tracking of waste products, inadequate bonding laws, setbacks, fines, well pads siting issues, floodplain concerns, an exploration of alternative fracking methodologies that may have less environmental and health impacts and a funding source…whether a fee, assessment or, tax, which compensates PA for the extraction of a natural resource and allows citizens of the Commonwealth to utilize the money for local impacts and environmental improvements.”

Despite public and legislative demands that these actions be rescinded, Governor Corbett has hamstrung the Department of Environmental Protection by requiring all notices of violations identified at well sites be approved by the director before being issued to the offending company. This is the equivalent of telling a police officer that he must clear a speeding ticket with the governor prior to citing an errant driver. This edict applies ONLY to gas wells; NOVs issued to other industries do not have to be pre-approved.

Department of Environmental Protection inspectors have testified they are merely rubber-stamping permit applications and are not following the law. Permit applications from natural gas companies are simply NOT denied, no matter how much impact they will have on communities or the environment. Governor Corbett is working to expedite the process so permits can be non-reviewed at an even faster rate.
The Department of Environmental Protection is allowing well wastewater to be treated by municipal treatment plants knowing full well they are not equipped to treat for the chemicals contained in that fluid. The untreated waste is being dumped into rivers and streams that move beyond state boundaries and eventually make its way to the Chesapeake Bay.
The administration appears to be working towards ensuring Marcellus Shale gas wells are exempt from NPDES requirements.
The governor has allowed natural gas industry representatives loose throughout the Commonwealth swindling landowners of their mineral rights.
The governor and his commission are working to strip municipalities of their right to zone out Marcellus drilling.
For the most part, rural governments have supervisors who stand to personally gain from gas industry development of the region; most are leased to the gas companies making it virtually impossible for residents to oppose natural gas drilling in their townships and counties. Appeals by citizens to the state ethics board have had little or no effect. With the Corbett administration working to expedite the drilling in the state, environmental damage will take place before voters can effect change in local government.
The majority of the land leased privately is owned by the minority population giving rise to tyranny of the minority over the majority.
State land is leased at an alarming rate; the Corbett administration is arranging the budget to the agencies responsible for stewardship of the people’s land to be contingent on money earned from gas drilling.
The Department of Environmental Protection budget is contingent on how many natural gas wells it permits.
The Corbett administration utilizes a public relations plan to deal with “outraged communities” so it can manipulate unsuspecting impoverished communities into accepting natural gas drilling before the truth of the magnitude of the ventures are fully made public and understood.
The Corbett administration is putting out to bid road reconstruction despite the fact that it is the natural gas industry that is the cause of road damage. This means that citizens of the state are already picking up the tab for industry produced damage.
The Corbett Administration insists the gas companies will pay no severance tax. As a result he is forcing municipalities and individual citizens to pay for cleanup of environmental contamination caused by the gas companies.
The Oil and Gas Act which was passed on February 5 does not require natural gas companies to post even moderately acceptable bonding for its activities.
Governor Corbett has stated he wants Pennsylvania to be the next Texas. His efforts so far show he is working to make that happen. The report, “Flowback: How the Texas Natural Gas Boom Affects Health and Safety” finds that authorities in Texas lack the resources to deal with air pollution, water contamination and other problems that accompany natural gas production; are limited in their response by inadequate laws and regulations, and continue the long Texas tradition of favoring the oil and gas industry at the expense of citizens." Mr. Corbett clearly is working towards making sure Pennsylvania will encounter these same limitations.
We understand that at times, politics requires both parties to manipulate situations to achieve the greater goal. But, we see Governor Corbett and his followers acting with what we can only characterize as criminal intent. It is more than clear that he will not allow the democratic process get in his way, and that he does not represent or intend to represent the people.
If there were the possibility to recall this governor, we believe that effort would already be underway. But, Pennsylvania law precludes that as an option. Impeachment has been suggested, as we are sure you are aware. But the impeachment process would take much longer than the people of this state have before Mr. Corbett and his industry cronies do the damage they have so publicly said they are going to do.
Mr. Holder, you are a last resort. And, we acknowledge that none of these pieces of information, on its own, is certain evidence of illegality, though each seems a definitive example of moral corruption. But when one considers all these events cumulatively, one sees there is an environment of corrupt thinking and acting within the state. We implore you to investigate. Where there is moral smoke, there is frequently legal fire.

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