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	<title>Center for a Stateless Society &#187; fracking</title>
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		<title>Keystone East: Not as Reasonable as Reason Thinks</title>
		<link>http://c4ss.org/content/31991</link>
		<comments>http://c4ss.org/content/31991#comments</comments>
		<pubDate>Mon, 22 Sep 2014 18:00:48 +0000</pubDate>
		<dc:creator><![CDATA[Kevin Carson]]></dc:creator>
				<category><![CDATA[Commentary]]></category>
		<category><![CDATA[capitalism]]></category>
		<category><![CDATA[corporate]]></category>
		<category><![CDATA[corporate state]]></category>
		<category><![CDATA[economic development]]></category>
		<category><![CDATA[fracking]]></category>
		<category><![CDATA[Hydraulic Fracturing]]></category>
		<category><![CDATA[Keystone XL pipeline]]></category>
		<category><![CDATA[left-libertarian]]></category>
		<category><![CDATA[libertarian]]></category>
		<category><![CDATA[monopoly]]></category>
		<category><![CDATA[Natural Resources]]></category>
		<category><![CDATA[North America]]></category>
		<category><![CDATA[oil]]></category>
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		<guid isPermaLink="false">http://c4ss.org/?p=31991</guid>
		<description><![CDATA[The Keystone XL pipeline is something no libertarian can support if consistency with free market principles matters. But that doesn&#8217;t stop a lot of right-leaning self-proclaimed libertarians from instinctively defending it &#8212; after all, anything that promotes fossil fuel use and gets environmentalists bent out of shape has to be &#8220;libertarian,&#8221; right? Thus A. Barton Hinkle&#8217;s &#8220;Get...]]></description>
				<content:encoded><![CDATA[<p>The Keystone XL pipeline is something no libertarian can support if consistency with free market principles matters. But that doesn&#8217;t stop a lot of right-leaning self-proclaimed libertarians from instinctively defending it &#8212; after all, anything that promotes fossil fuel use and gets environmentalists bent out of shape has to be &#8220;libertarian,&#8221; right?</p>
<p>Thus A. Barton Hinkle&#8217;s <a href="http://reason.com/archives/2014/09/15/get-ready-for-keystone-pipeline-2/print">&#8220;Get Ready for Keystone Pipeline 2</a>?&#8221; (September 15) in  <em>Reason</em> magazine (motto: &#8220;Free Minds and Free Markets&#8221;). Hinkle ridicules environmentalist criticism of a proposed Atlantic coast pipeline shipping natural gas to North Carolina from West Virginia&#8217;s Marcellus shale formation. According to Hinkle, the power companies comply with EPA regulations. What&#8217;s more, environmentalists are partly to blame for the rise of natural gas consumption reflected in new pipeline projects, because they make it more difficult to expand production of coal-fired electricity. And, he adds, &#8220;[n]obody who protests power plants and power lines ever volunteers to give up electricity &#8230;&#8221; Yuk yuk yuk!</p>
<p>In fairness to Hinkle, he addresses, at respectable length, the problematic nature of the eminent domain abuses required to build such pipelines &#8212; fairly unusual among fossil fuels cheerleaders on the self-proclaimed libertarian right.</p>
<p>But he leaves out several things. First, eminent domain isn&#8217;t the only way in which the state makes natural gas pipelines artificially feasible. Pipelines also depend on liability caps or regulatory preemption of tort liability for leaks (those EPA regulations Hinkle makes so much of), contamination of groundwater and earthquakes associated with fracking and pipeline transport.</p>
<p>Second, it&#8217;s not just natural gas, but also coal and oil, that are artificially cheap and economical as a result of state-granted subsidies and privileges. Coal and oil, like natural gas, depend on privileged access to land in the federal domain from which ordinary individual homesteaders have been excluded &#8212; or even on land that was stolen either from First Nations or white settlers. The Bundy ranch, site of a recent standoff between a rancher and the federal government, is situated on what had originally been tribal land. And a lot of Appalachian coal mining takes place on land that had already been homesteaded in the days before fully developed state and county governments or regular land titles, then stolen by mining companies with better lawyers. All fossil fuel industries depend on the same liability caps and regulatory preemption of tort law.</p>
<p>And third, Hinkle makes the unwarranted assumption that the level of demand for energy is inelastic, and that the present energy dependency of our economy has nothing to do with assorted subsidies to fossil fuels and transportation. Besides all the fossil fuels subsidies and privileges mentioned above, present levels of long-distance transportation use also reflect heavy government subsidies. The civil aviation infrastructure was built almost entirely at government expense using eminent domain, and jumbo jets only became economically viable after WWII because the Cold War heavy bomber program enabled the aircraft industry to make full use of the expensive dies required to build them. The car culture has grown far larger than it otherwise would have because of urban planning and zoning, subsidized utilities for new subdivisions and use subsidies and eminent domain to support freeway construction. The taxpayer-subsidized Interstate Highway System is also a massive subsidy to artificially long corporate supply and distribution chains.</p>
<p>Hinkle ignores the possibility that, without government&#8217;s thumb on the scale to facilitate the consumption of energy, we might just use less of it. We might buy food and manufactured goods produced in our own communities, live closer to the places we work and shop, and keep more energy-efficient homes.</p>
<p>The libertarian problems with fossil fuels don&#8217;t stop with the use of eminent domain to build pipelines. That&#8217;s only the beginning. Fossil fuels in general are just one example of a larger function of the capitalist state: Providing artificially cheap inputs for an industrial model based on extensive addition of inputs rather than more efficient use of existing ones.</p>
<p>In other words, principled libertarians need to consistently apply their opposition to &#8220;crony capitalism&#8221; to all manifestations of it, and direct their distaste for welfare to its biggest recipients.</p>
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		<title>Fracking: Poster Child for the Corporate Welfare State</title>
		<link>http://c4ss.org/content/29567</link>
		<comments>http://c4ss.org/content/29567#comments</comments>
		<pubDate>Thu, 24 Jul 2014 18:00:41 +0000</pubDate>
		<dc:creator><![CDATA[Kevin Carson]]></dc:creator>
				<category><![CDATA[Commentary]]></category>
		<category><![CDATA[capitalism]]></category>
		<category><![CDATA[COINTELPRO]]></category>
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		<category><![CDATA[fracking]]></category>
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		<guid isPermaLink="false">http://c4ss.org/?p=29567</guid>
		<description><![CDATA[Just about every week another story comes to my attention confirming the complete and total government-dependency of fracking &#8212; beloved of so many self-proclaimed &#8220;free market&#8221; advocates on the libertarian right. Something about eminent domain to build the pipelines, or liability caps for spills, or regulatory approval of unsafe pipelines superseding tort liability for negligence, and...]]></description>
				<content:encoded><![CDATA[<p>Just about every week another story comes to my attention confirming the complete and total government-dependency of fracking &#8212; beloved of so many self-proclaimed &#8220;free market&#8221; advocates on the libertarian right. Something about eminent domain to build the pipelines, or liability caps for spills, or regulatory approval of unsafe pipelines superseding tort liability for negligence, and ad nauseam. I have another couple of them right here.</p>
<p>First, an article in Monthly Review (Lauren Regan, <a href="http://monthlyreview.org/2014/07/01/electronic-communications-surveillance/">&#8220;Electronic Communications Surveillance,&#8221;</a> July/August) describes the revolving door of personnel between federal law enforcement and the oil and gas industry&#8217;s private goon squads, and how &#8220;the U.S. government has colluded with private corporations and extractive industries to ratchet up their COINTELPRO-esque tactics upon climate justice activists.&#8221; The fossil fuel industries like to spin off private &#8220;security&#8221; and &#8220;public relations&#8221; firms (often staffed by retired federal and state cops) to spy on perfectly legal activist groups, infiltrate and disrupt them, and give intelligence to PR staff &#8212; who then cook up scary &#8220;fact sheets&#8221; to discredit activists to both media and law enforcement. Extractive corporations like TransCanada also give PowerPoint presentations to various levels of law enforcement advocating surveillance and prosecution of activists as &#8220;terrorists&#8221; &#8212; something the cops are all prepared to eat up, what with the proliferation of &#8220;Fusion Centers&#8221; looking for stuff to panic over.</p>
<p>The other item: According to a study by Katie Keranen of Cornell University, almost all of the 2,500 small earthquakes in Oklahoma in the past five years have been the result of high pressure wastewater injections related to fracking. The change of stress on existing fault lines from the injection of water can trigger them &#8212; with water travelling along fault lines and causing earthquakes up to 22 miles away. And other states &#8212; Texas, Arkansas, Kansas, Ohio &#8212; have also seen sharp rises in small earthquakes corresponding to the introduction of fracking there. Youngstown, Ohio &#8212; which hadn&#8217;t previously been bothered by earthquakes &#8212; was hit by 109 of them in 2011 following the creation of an injection well.</p>
<p>Somehow I&#8217;m guessing even the minor structural damage to homes from thousands of earthquakes in five states, breakage of possessions, and the like, would cumulatively amount to a significant sum of money &#8212; enough to have a real impact on the bottom line of an industry that has problems with financial sustainability as it is and is highly reliant on a bubble financing Ponzi scheme. And we haven&#8217;t even gotten into the poisoning of groundwater from injection of toxic chemicals into geologically unstable areas.</p>
<p>At every step of the way, the state steps in to subsidize the operating costs of the fossil fuel industry, steal land for it to build pipelines on, and indemnify it against liability through regulatory preemption of tort law or even flat out statutory caps on liability for damage. And yet self-proclaimed libertarians like the Koch Brothers and much of the right-wing libertarian think tank and periodicals establishment loudly proclaim their support for fracking and Keystone in the name of the &#8220;free market.&#8221;</p>
<p>Sorry, folks. Fracking and pipelines have nothing to do with the free market. They&#8217;re creations of the state from beginning to end.</p>
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