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WSJ: Snake Oil Additives - Do Congress's bidding, get sued. [
Wall Street Journal ^ | July 26, 2005 | Editorial

Posted on 07/26/2005 5:43:28 AM PDT by OESY

Never say Congress isn't willing to accept blame -- as long as it can assign it to someone else. Having mandated the use of the fuel additive MTBE, the Members now want to shake down the companies foolish enough to have made the product.

This is the real story behind the debate over MTBE, which has once again become the sticking point in the House-Senate conference over the energy bill. The House has passed modest liability protection for MTBE makers, while Senate Democrats are threatening a filibuster if there's any such thing in the final bill. If we're lucky, the dispute will cause the hot-air dirigible that is the energy bill to crash and burn one more time. But it's more likely the Members will "compromise" by dropping the House provision and thus blame private business for Congress's mistakes....

Congress required the use of oxygenates in 1990 in high-pollution areas as part of the Clear Air Act amendments....

While such small contaminations are harmless to public health (especially as MTBE is easy to detect and therefore to avoid), water companies and some cities have pounced like trial lawyers on MTBE makers with the deepest pockets.

Refiners and other companies now face more than 100 lawsuits.... Draining cash from these companies to finance trial-lawyer contingency bonanzas will not lower gas prices.

Bear in mind that the House liability waiver would only be for "product defect" lawsuits, which are the most frivolous and deadly because they only require plaintiffs to show that a company made the product for sale. Defendants would still be liable for larger MTBE spills, and the current Congressional negotiations include talk of some sort of industry-financed clean-up fund. In about 95% of spills, a responsible party has been identified and most are already paying for a cleanup....

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Culture/Society; Editorial; Government; News/Current Events; Politics/Elections; US: Louisiana
KEYWORDS: 109th; bennettjohnston; congress; democrats; fueladditives; mandates; mtbe; oxygenates; senateenergy; wsj
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1 posted on 07/26/2005 5:43:28 AM PDT by OESY
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To: Senator Kunte Klinte
Heaven help those companies that jump on the global warming band wagon, only to find themselves blamed for results not foreseen by Congress. This is the same legislative body that includes a minority party and some RINOs that, for ideological reasons, could only envision deficits "as far as the eye could see," despite the fact that the beneficial effects of tax cuts sat right beneath their pompous noses.
2 posted on 07/26/2005 5:44:13 AM PDT by OESY
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To: OESY

This is right out of atlas shrugged.


3 posted on 07/26/2005 5:51:08 AM PDT by traviskicks (http://www.neoperspectives.com/janicerogersbrown.htm)
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To: OESY

png


4 posted on 07/26/2005 5:53:38 AM PDT by sure_fine (*not one to over kill the thought process*)
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To: OESY
IMHO the entire lot of them, all 535 and their staff flunkies, cabin boys, and handmaidens ought to be kicked to the curb and the lights turned off on Capital Hill. Use the salary savings to clean up their MTBE mess.
5 posted on 07/26/2005 5:53:50 AM PDT by WideGlide (That light at the end of the tunnel might be a muzzle flash.)
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To: WideGlide

Could we do worse if we had a lottery and said; "OK, now it's your turn to go up there."? Think of no elections, and the smile just starts to grow.


6 posted on 07/26/2005 5:59:11 AM PDT by patj
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To: patj
Could we do worse if we had a lottery and said; "OK, now it's your turn to go up there."? Think of no elections, and the smile just starts to grow.

I've seen some serious propsals along those lines. Personally, I'm disposed to like them as well, but with a few caveats. First, only taxpayers would be eligible. (Some have propsed that each dollar in taxes you pay would be one "entry" to the drawing.) Second, we'd have to reign in government quite a bit to make sure that no real damage could be done by a single raving lunatic. (this ought to be done anyway, as H.Clinton is running for president.)

Another way to look at it is that anyone who actually wants the job should be automatically disqualified from having it. This is especially true of the office of the presidency. One of the reasons George Washington worked out so well for us as President is that he didn't really want the job very much.

7 posted on 07/26/2005 6:44:25 AM PDT by zeugma (Democrats and muslims are varelse...)
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To: OESY
Having mandated the use of the fuel additive MTBE>

That's a lie. Here's proof:

What are the oxygenate requirements of the Clean Air Act?

The Clean Air Act Amendments of 1990 (CAA) require the use of oxygenated gasoline in areas with unhealthy levels of air pollution. The CAA does not specifically require MTBE. Refiners may choose to use other oxygenates, such as ethanol.

At this time, about 30 percent of this country’s gasoline is reformulated gasoline, of which about 87 percent contains MTBE. Refiners have chosen MTBE as the main oxygenate in RFG in cities outside of the Midwest primarily for economic reasons and its blending characteristics.

Congress did not require the use of MTBE; The WSJ is shilling for the oil industry. In fact, one of the holdups on the energy bill has been that republicans want to spend over 10 billion dollars of taxpayer money to clean up private industry's mess, and amazingly, some rank and file GOPers seem to agree. Big gubmint definitely has a home in the GOP. Grab yer wallets.

8 posted on 07/26/2005 8:44:58 AM PDT by Huck ("John Roberts will almost certainly pull the Supreme Court to the right."-Rich Lowry)
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To: WideGlide
Use the salary savings to clean up their MTBE mess.

The GOP wants to use 10 billion or more of our tax dollars to clean up the energy companies' mess, and amazingly, some so called conservatives support that idiocy.

9 posted on 07/26/2005 8:46:15 AM PDT by Huck ("John Roberts will almost certainly pull the Supreme Court to the right."-Rich Lowry)
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To: Huck
10 billion or more of our tax dollars to clean up the energy companies' mess

MTBE is just one more example of the unintended consequences on a Nanny Government. Congress mandated the additive to close up the Ozone hole. The energy companies are not at fault here.

10 posted on 07/26/2005 7:56:23 PM PDT by WideGlide (That light at the end of the tunnel might be a muzzle flash.)
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To: WideGlide
Congress mandated the additive to close up the Ozone hole. The energy companies are not at fault here.

That is incorrect. The Congress (which is really just us, by the way) did not mandate MBTE.

11 posted on 07/26/2005 8:33:10 PM PDT by Huck ("John Roberts will almost certainly pull the Supreme Court to the right."-Rich Lowry)
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To: Huck
Congress did not require the use of MTBE; The WSJ is shilling for the oil industry.

Congress mandated the use of oxygenates and specified either MTBE or ethanol. Further, the EPA had approved their use.

The WSJ is "shilling for responsibility".

12 posted on 07/26/2005 8:45:27 PM PDT by okie01 (The Mainstream Media: IGNORANCE ON PARADE)
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To: okie01
and specified either MTBE

Incorrect.

13 posted on 07/27/2005 3:04:54 AM PDT by Huck ("John Roberts will almost certainly pull the Supreme Court to the right."-Rich Lowry)
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To: okie01

The Clean Air Act Amendments of 1990 (CAA) require the use of oxygenated gasoline in areas with unhealthy levels of air pollution. The CAA does not specifically require MTBE. Refiners may choose to use other oxygenates, such as ethanol.

At this time, about 30 percent of this country’s gasoline is reformulated gasoline, of which about 87 percent contains MTBE. Refiners have chosen MTBE as the main oxygenate in RFG in cities outside of the Midwest primarily for economic reasons and its blending characteristics.


The WSJ is shilling for gubmint providing free liability coverage to the oil industry, courtesy of us taxpayers.


14 posted on 07/27/2005 3:06:46 AM PDT by Huck ("John Roberts will almost certainly pull the Supreme Court to the right."-Rich Lowry)
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To: okie01
I have to say though, it's sort of funny to see "conservatives" arguing for a multibillion dollar payout to private business for environmental cleanup. Wonder where the idea ever got in their heads that they wanted to pay more taxes in order to cover someone else's risk. What a coincidence they all thought of that on their own. Or did they?


15 posted on 07/27/2005 3:09:40 AM PDT by Huck ("John Roberts will almost certainly pull the Supreme Court to the right."-Rich Lowry)
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To: Huck

Huck-ster, would there have been sufficient ethanol without sending gas prices through the roof (and making rotgut wine cost $100 a liter)?


16 posted on 07/27/2005 3:10:24 AM PDT by HiTech RedNeck (No wonder the Southern Baptist Church threw Greer out: Only one god per church! [Ann Coulter])
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To: Huck

You are absolutely right...keep sticking up for reality.


17 posted on 07/27/2005 3:10:51 AM PDT by Keith in Iowa (Talk Nerdy To Me)
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To: Huck
In about 95% of spills, a responsible party has been identified and most are already paying for a cleanup....

Sounds like Superfund is doing what it is supposed to, already.

MTBE in water at the levels we've been seeing it has only one substantiated ill effect, and that is to make water taste lousy. And it takes far more than what you get from homeowners spilling gas as they fill their lawn mowers, to get it up even high enough to taste. It takes an industrial sized muck-up, with an industrial-sized culprit.

18 posted on 07/27/2005 3:15:14 AM PDT by HiTech RedNeck (No wonder the Southern Baptist Church threw Greer out: Only one god per church! [Ann Coulter])
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To: Keith in Iowa

Thank you.


19 posted on 07/27/2005 4:23:09 AM PDT by Huck ("John Roberts will almost certainly pull the Supreme Court to the right."-Rich Lowry)
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To: HiTech RedNeck
Huck-ster, would there have been sufficient ethanol without sending gas prices through the roof (and making rotgut wine cost $100 a liter)?

Is your argument that because ethanol is more expensive than MBTE, the taxpayer should pick up the check? Why shouldn't it come from the producer's bottom line? What happened to letting the market dictate? Are we all socialists now?

20 posted on 07/27/2005 4:24:40 AM PDT by Huck ("John Roberts will almost certainly pull the Supreme Court to the right."-Rich Lowry)
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