Tax Loophole

Reuters is reporting:

The story of the "check the box" loophole, which allows U.S. companies to choose for themselves how to classify their subsidiaries for tax purposes, and a companion policy known as the "look-through" rule, shows how Washington bureaucrats, lobbyists and politicians have worked together — sometimes wittingly - to save money for American corporations and deprive the federal government of billions in tax revenue each year.
What began in 1996 as an effort by the Treasury Department to simplify the U.S. tax code mistakenly ended up as a massive tax loophole for corporate America, which seized upon it and has never let go.

Besides fueling an explosion in earnings that U.S. companies keep abroad - now more than $1.8 trillion, the Commerce Department estimates, double the amount from less than a decade ago - the loophole has become a symbol of how difficult it can be to repeal a tax benefit once it becomes entrenched.

But that's not the reason I posted this story.

It has to do with ObamaCare.

This bill is 2,700 pages long, too long for the Supreme Court justices to read, but you can bet corporations and unions are reading every page looking for loopholes, and they will find them. 

It's happened before:

The section of the Internal Revenue Code that made 401(k) plans possible was enacted into law in 1978. It was intended to allow taxpayers a break on taxes on deferred income. In 1980, a benefits consultant named Ted Benna took note of the previously obscure provision and figured out that it could be used to create a simple, tax-advantaged way to save for retirement. The client he was working for at the time chose not to create a 401(k) plan.

It's my understanding that some employers have already found a loophole in ObamaCare that is extremely good news for employers; very bad news for employees.  Except they will be able to keep their jobs.

With regard to the original story linked:

Two of Apple's most aggressive questioners, Democratic Senator Carl Levin of Michigan and Republican Senator John McCain of Arizona, have called for closing the "check the box" loophole. But even they have voted to keep it alive several times in recent years when it has been inserted into other legislation.

Levin's office did not respond to requests for a comment. McCain declined to comment for this story.

I guess they voted for it, before they voted against it.

By the way, President Obama's economic adviser, GE/CEO loves the loophole, at least according to the linked story. I can't make this stuff up.

Permit Numbers Cancelled By Surge; It's Not About The Nail -- The Video -- For Guys Everywhere

The other day it was mentioned that Surge was canceling a number of permits. These are the permit numbers and the names of the wells. These are all in Bottineau County and would have been Spearfish wells, I believe:

• 24893, Haram 00 NWSE 31, 31-164-77
• 23899, Scandia 2S NWNW 35 02 SWNE 34H, 35-164-78
• 23898, Scandia 1S NWNW 35 00 SWNE 34H, 35-164-78
• 23897, Scandia 1N NWNW 35 02 NWNE 34H, 35-164-78
• 23896, Scandia 2N NWNW 35 00 NWNE 34H, 35-164-78
• 24876, Haram 00 NWSE 20, 20-163-77
• 24875, Scandia 00 SESE 11, 11-163-78
• 24950, Haram 00 SENE 23, 23-163-77

Some, if not all, are located in/near the Souris oil field, along the Canadian border in Bottineau County.

On May 9, 2013, Surge announced it was selling its non-core assets in North Dakota:

The company is pleased to announce certain senior management changes, effective immediately, a private placement of up to $2.5 million, and the sale of certain non-core, non-operated assets for proceeds of approximately US$42.75 million.

From the press release:

Surge has executed a formal purchase and sale agreement with a Canadian oil and gas producer to sell its non-core, primarily non-operated assets in North Dakota for a purchase price of approximately US$42.75 million.  Closing of this transaction is anticipated to occur on or around May 31, 2013.  The non-core assets being sold comprise production of approximately 650 barrels of oil per day, with independently engineered P+P reserves of 2.2 million boe, and a net present value of $36.8 million (discounted at ten percent before tax as of December 31, 2012).  The Company expects a reduction in its borrowing base of $13 million as a result of the sale, resulting in a bank line of $277 million.

The sale of Surge's assets in North Dakota is the first step in implementing changes in the Company's business plan to maximize shareholder value, strengthen the Company's financial flexibility and support a sustainable business model.

Back-of-the-envelope:

• 650 x $50/bbl x 365 days = $12 million/year
• at 5% interesting, $42 million costs about $2 million in interest

*********************

For  guys everywhere, it's not about the nail...


It's Not About the Nail from Jason Headley on Vimeo

BRK

I wasn't going to post this story: Berkshire buys NV Energy, but when BRK-B hit another 52-week high (one of several over the past few weeks), it was impossible to resist.

So, Motley Fool is reporting:

There's a lot that's not surprising about the acquisition. The size, if anything, is small. Buffett's been very vocal about his desire to make "elephant"-sized purchases. Nor is it surprising that the conglomerate is expanding its reach with a steady utility business. These types of businesses add stability to the insurance and consumer-goods-heavy Berkshire. And it shouldn't be all that surprising that the price for NV Energy doesn't look all that cheap. If the Heinz deal reminded us of anything, it's that Buffett is willing to shell out a "full" price for a good buy.

But what may surprise a lot of investors is that by all appearances, Buffett had very little to do with this multibillion-dollar acquisition. Greg Abel, the CEO of MidAmerican, appears to have been firmly in the driver's seat on this one. Sure, Buffett knows that Abel is tapping MidAmerican's cash resources for the billions to purchase of NV Energy -- he even chimed in on MidAmerican's press release that the company is "a great fit for Berkshire Hathaway." But this was very much the Greg Abel Show.

"The size, if anything, is small." $10 billion.

Baghdad Bob Re-Emerges

Updates

June 6, 2013:  Investors.com is reporting -- "Fracking: The Death Knell Of OPEC"

If there was any doubt the U.S. shale revolution is breaking the dominance of unsavory energy producers on global oil supplies, look no further than last week's OPEC meeting, where the alarm bells were going off.

At Friday's Organization of Petroleum Exporting Countries meeting in Vienna, the mask of non-chalance about America's new fracking energy boom came off.

After years of dismissing U.S. energy production as insignificant and expensive, OPEC suddenly said it would "study" the growth in hydraulic fracturing and horizontal drilling, a deceptively bland response to the biggest challenge the cartel has ever faced on its monopoly.

The statement concealed the anything-but-tranquil tone of the meeting, in which members were attacking each other and warning of a split.

Nigeria Oil Minister Diezani Alison-Madueke declared U.S. shale oil "a grave concern," according to a report in the Wall Street Journal.

And the linked article goes on from there.

Original Post

Iraq: shale will have little effect on oil demand from OPEC. Rigzone is reporting:

Rising U.S. shale oil production will have only minimal effect on demand for crude oil from the Organization of the Petroleum Exporting Countries, meaning most members of the group want to leave their output ceiling unchanged at 30 million barrels a day, said Iraqi Oil Minister Abdul Kareem Luaiby Thursday. 

Iraq will continue to increase its oil production to 3.525 million barrels a day by the end of this year, compared with 3.125 million barrels a day currently, Mr. Luaiby said.

And that is according to Abdul Kareem "Baghdad Bob" Luaiby.

An earlier post links a story suggesting Iraq is on track to double production by 2020 or 2025. I forget which; I think 2020.

Baghdad Bob needs to look at this graph. 

Re-Posting Due To Significance

The original story was posted earlier tonight, and then a story came out which made the post even more relevant. In case folks missed the earlier post and the update, here is the link. This is a big story.

MDU Subsidiary To Invest $700 Million In Natural Gas Pipeline

Updates

Later, 11:13 pm: see first comment. The pipeline will also supply natural gas to the fertilizer plant(s) going up in the eastern part of North Dakota. 

Original Post

Through a press release, MDU is reporting:

WBI Energy, Inc., the pipeline and energy services subsidiary of MDU Resources Group, Inc., announced plans today for a proposed natural gas pipeline stretching from far western North Dakota to western Minnesota where it would connect with Viking Gas Transmission Company’s pipeline system.

This project would increase pipeline takeaway capacity out of the Bakken to accommodate rapidly growing natural gas production in the region.

“It’s exciting to think that the proposed pipeline could provide a new transportation route to bring Bakken-produced natural gas directly to industrial customers and commercial and residential utility customers in eastern North Dakota,” said David L. Goodin, president and CEO of MDU Resources.

“Through interconnecting pipelines, the proposed pipeline could also serve Minnesota, Wisconsin and Midwest U.S. markets.”

The pipeline has been initially designed to transport approximately 400 million cubic feet per day of natural gas and, depending on user commitments, could be expanded to more than 500 million cubic feet per day. The project investment is estimated to be between $650 million and $700 million. 

Several comments:

• when I first started the blog, I was not interested in natural gas in the Bakken; ONEOK changed everything
• the Bakken is considered an oil play; natural gas was originally thought to be about 3% of total economic value of the Bakken oil/gas prospect
• at $700 million for the project, MDU obviously feels the Bakken is going to be around for awhile

And a huge "thank you" to Don for alerting me to the press release. I had not yet seen it.

This is a PDF of the proposed route of this new natural gas pipeline (link broken -- first noted August 3, 2017).

No Wells Come Off The Confidential List Friday?

A Tale Of Two Countries

In Germany, despite a jump in May due partly to bad weather, unemployment is close to a reunification low.

In France, it stands at the worst level since records began in 1996, highlighting the growing divide between the eurozone's two major economies.

And Aljazeera is reporting.

Some years ago it was reported that slightly more than half of the entire French work force was employed by the government. I don't know if that is still accurate. If so, the record unemployment rate is even more startling. [Update: a reader clarified some of this for me: Over time the majority of French industry was owned/controlled by the French government from WWII through Mitterand. Over 60 - 70 percent of French manufacturing, mining, transportation, etc., was owned / controlled by the government. Only over the last ten years, or so, has the government been selling off major sectors. That explains where I "remember" the "more than half" figure -- that was some years ago.]

Two Quick Tweets -- And, A New Poll

Updates

Later, 10:54: just after posting the poll and the background for the poll earlier this evening, Rigzone posted an article on a US-Latin American trade agreement which will help natural gas export decisions later on down the road:

This meeting comes on the heels of Obama's administration recently appointing U.S. Energy Secretary Ernest Moniz, who was sworn in last week. He said he will put about 20 applications on hold to export liquefied natural gas until he reviews studies by the Energy Department and others on what impact the exports would have on domestic natural gas supplies and prices.

Caribbean countries are concerned about higher global oil prices impairing their economies and are looking for ways to promote alternative energy sources while better integrating their energy sectors.

Original Post

Platts: US crude inventories reach new record high -- but gasoline stocks have declined.

Platts: Obama's shout-out to US LNG exports:

Heartened by a brief mention of liquefied natural gas exports by President Barack Obama, the new head of the US trade group for shale gas producers said Thursday he thought Obama should hasten a permitting process that has issued only two permits thus far.

"The great news, here in America, is that by 2020 we'll be a net exporter of natural gas," Obama said Wednesday evening at a fundraising speech in Chicago. "We will over the next couple of decades have the capacity to be energy independent for the first time, incredible change."

"Obama's behind this," America's Natural Gas Alliance CEO Marty Durbin told roughly 100 lobbyists and trade industry representatives Thursday at the American Gas Association's monthly Natural Gas Roundtable in Washington.

I'm not going to hold my breath waiting for additional export licenses.

So, time for a new poll.

But first, results of the current poll, where we asked readers what they thought the future of the US Post Office was:

• grand reform guaranteeing solvency forever and ever: 6%
• status quo (Congress keeps writing blank checks): 81%
• reverts back to Cabinet-level department: 3%
• absorbed by another Cabinet-level department: 10%

Now, the new poll. The US has approved two LNG export licenses this year. Will we see any more licenses granted this year? Yes or no.

Seven (7) New Permits -- The Williston Basin, North Dakota, USA -- Statoil Roughnecks Should Be Celebrating This Weekend -- Pyramid Wells Northest Of Williston With Great IPs

Active rigs: 186 (steady, but trending back up)

Seven (7) new permits --

• Operators: Murex (4), Triangle (2), Whiting
• Fields: Rawson (McKenzie), Sanish (Mountrail)
• Comments: Murex has permits for four (4) wildcats up in Divide County; how interesting -- they will be in the area of the Alexandria and Sioux Trail oil fields noted yesterday; serendipitous.

Wells coming off the confidential list were posted earlier; see sidebar at the right.

Twleve (12) producing wells completed:

• 21875, 2,047, Statoil, Bratcher 10-3 2H, Ragged Butte, t3/13; cum 5K 3/13;
• 21876, 3,153, Statoil, Lonnie 15-22 1H, Ragged Butte, t4/13; cum --
• 22511, 928, Statoil, Bratcher 10-3 3TFH, Ragged Butte, t3/13; cum 3K 3/13;
• 22733, 200, CLR, Glasoe 5-19H, Dolphin, t4/13; cum 5K 4/13;
• 22807, 3,793, Statoil, Richard 8-5 2H, Banks ,t4/13; cum --
• 22872, 3,091, Statoil, Pyramid 15-22 4H, Todd, t3/13; cum 12K 3/13;
• 22873, 2,835, Statoil, Pyramid 15-22 3H, Todd, t3/13; cum 9K 3/13;
• 22874, 1,884, Statoil, Pyramid 15-22 2TFH, Todd, t3/13; cum 3K 3/13;
• 22875, 2,341, Statoil, Pyramid 15-22 1H, Todd, t3/13; cum 600 3/13;
• 22941, 2,581, Statoil, West Bank 26-23 1H, t3/13; cum --
• 22942, 2,274, Statoil, Sullivan WMA 35-2 1H, t4/13; cum --
• 24994, 1,393, Whiting, Carkuff 13-14H, Sanish, t4/13; cum --

Twenty-four (24) new wells plugged or producing.

Dumb Ideas That Will Get Dumber With Time: Tesla

Updates

June 1, 2013: Speaking of dumb ideas. California mandates that EVs must account for 15% of all car sales by 2025 (currently, the number is about 1%). So, the car companies are pretty much giving them away. Why didn't California simply mandate that EV's must account for 100% of all car sales by 2014 and make it really exciting? Why does this story make me think of ObamaPhones -- free for everyone who couldn't otherwise afford them?

Original Post 

The Wall Street Journal is reporting:

Tesla Motors said Thursday it plans to significantly boost the number of electric-vehicle charging stations near key U.S. cities over the next couple of years. 

But there’s a catch: The so-called “superchargers” will only work for Tesla’s Model S. So, for example, drivers of Nissan Motor Co. Ltd.’s popular all-electric Leaf car– the electric vehicle of choice for the middle class – won’t be able to use the Tesla superchargers. 

Automakers have complained that a key barrier to greater public adoption of electric vehicles is a dearth of quick-charge public charging stations. Companies such as NRG Energy Inc. NRG and Ecotality Inc. have been working to install more higher-voltage fast-charging stations in California and other states, where drivers of just about any electric vehicle can recharge their battery more quickly than they can with the old, Level 2 slow-chargers that can take hours. 

Tesla drivers can use any public charging station to recharge their vehicle, a Tesla spokeswoman said.

This will endear them to Americans. And they say Apple is elitist.

EPP To Develop Two Texas Refined Products Export Terminals; Will Handle Panamax- And Aframax-Size Vessels

Oil & Gas Journal is reporting:

Enterprise Products Partners LP (EPP) is developing two refined products export terminals to meet growing demand for additional products export capability on the US Gulf Coast.

Terminal development will use EPP’s existing Southern Complex of refined products pipeline, storage, and terminal facilities in southeast Texas, to improve access to its marine facilities in Beaumont, Tex., and on the Houston Ship Channel (HSC). Export service at the reactivated Beaumont marine terminal will initially handle Panamax-size vessels and is expected to begin first-quarter 2014, followed in mid-2014 by expansions at marine terminal on the HSC initially sized to handle up to Aframax-class vessels.

Keystone XL? We Don't Need NO Keystone XL --

Oil & Gas Journal is reporting:

The Canadian Association of Oilwell Drilling Contractors has hiked its forecast of 2013 drilling in western Canada 2.3% to 10,649 wells based on first quarter performance that was stronger than expected in the association’s November 2012 forecast.

CAODC said industry averaged 496 rigs or 61% utilization in January through March, compared with the 60% utilization anticipated in the November forecast.

In first quarter drilling, Alberta utilization averaged 60% (365 rigs running in a fleet of 607), Saskatchewan 56% (70 rigs of 125 available), in British Columbia 81% (47 out of 58 available rigs), and in Manitoba 55% (13 out of 24 rigs available).

Lots of conflicting data points out there. 

Williston Wire; Minot Motel Occupancy Down To 57%

Headlines only; it is easy to subscribe to the Williston Wire.

• Home Depot's new address in Williston: 13960 West Front Street; recently housed Derrick Equipment Company.

• Renaissance Heights Apartments, Phase 1, ground breaking; amenities to include an indoor pool and spad, a modern fitness center, and theatre with lounge seating.

• Oil patch housing is shifting from temporary to permanent.

• Hotel occupancy in Minot in April: 57%. 

• Misperception about a "wild west" mentality in the Bakken oil patch.

• K-9 unit marks second year in Williston.

• ND's oil production at record pace: almost 800,000 bopd.

• Garden Creek III, near Watford City, approved. Previously posted.

• Amtrak considers Culbertson stop.

The Utica: 2012 --

From Ohio's Department of Natural Resources (like the NDIC):

Production reports were submitted for 85 wells in 2012. Of these, 63 were commercial producing wells, 19 were tested and shut-in and 3 were dry and abandoned.

It was interesting to see how Ohio presented that data. On their front page, no data. One had to download the Excel spreadsheet. The amount of oil produced by Ohio in 2012: about 636,000 bbls.

North Dakota does that about every three weeks.

Yes, I know, the Utica is starting out as a natural gas play but bills itself as a promising natural gas play AND crude oil play.

The Utica, natural gas: 13 billion cubic feet in 2012. 13 billion/365 = 35 million cubic feet/day.

For all the ink used to write about the Utica, the data coming out of the Utica is downright unimpressive. 

Eighty-five (85) wells were producing oil and/or gas in Ohio in 2012. North Dakota drills that many wells in a week. Okay, maybe two weeks. Maybe 5/day x 14 days = 70 wells. (In the last Director's Cut, the director said 140 wells were completed in March, 2013, most recent data.  That was down from 30 the month before.

So, let's see what else folks said about the Utica in the past month or so. This should be fun:

• Analyst says Ohio data may not be particularly useful (posted before the data was released).
• ODNR itself says Utica shale is putting up big production numbers. Okay.

A typical vertical well in Ohio annually produces about 50,000 cubic feet of gas a day and less than one 42-gallon barrel of oil.

North Dakota, an oil play: 850 million cubic feet/natural gas/month = 28 million cubic feet/day.

Unless I missed it, the report did not include the amount of natural gas flared. 

Disclaimer: don't trust the math. I often make mistakes with basic arithmetic. 
 

Some Disconnected Rambling

Updates

May 18, 2014: the man behind killing the Keystone. It turns out to be a gentleman who started his own investment company which is heavily invested in a competing pipeline company. LOL.  The man is billionaire environmentalist Thomas Steyer.

The leftwing Steyer undoubtedly is sincere in his green beliefs but sincerity on an issue is easier if you also stand to make a fortune from it. The conservative Daily Caller (Nov. 8, 2013) noted, “Most of Steyer’s $1.4 billion fortune came through investments in fossil fuels. In fact, Steyer’s biggest cash cow is Farallon Capital Management. Farallon has stakes in a number of oil, gas and pipeline companies, including a large investment in Kinder Morgan, an oil and gas pipeline outfit that plans to expand its own TransMountain pipeline to transport oil from Alberta to refineries and shipping terminals in the U.S. and Canada.”

(Steyer actually founded Farallon with $15 million in start-up money.)

Keystone threatens Steyer’s profits in several ways. A glut of Canadian oil would drive down energy costs in America, and the new supplier would be a competitor. But more than anything else, the method of supply would also compete with Steyer’s self-interest.

The Business Insider (June 17, 2013) observed that, if TransMountain’s “expansion is approved, TransMountain will be the only available outlet for Alberta crude.

If Keystone XL is killed, it will leave TransMountain as the only game in town for transporting oil directly from the oil sands to export terminals, up to 900,000 barrels a day. And most of that oil will be shipped west to China.”

No wonder Steyer has not breathed a word of criticism about TransMountain, which is functionally the same as Keystone. No wonder he lobbied against the Northern Gateway pipeline which would take oil from Edmonton to the west coast. It, too, would compete with TransMountain.

Later, 5:29 pm: Chinese bought more US assets in 2013 than they did in nine of the past full ten years. The Wall Street Journal is reporting:

The $9.8 billion in announced deals by Chinese firms scooping up U.S. companies is the highest ever at this point of the year, according to Dealogic. In fact, the year is off to such a strong start that there already has been more Chinese acquisitions announced in the U.S. in 2013 than were announced nine of the past 10 full years, the data provider shows.

Original Post

So, the Chinese are buying our shale assets in Oklahoma and Texas.

The Chinese are buying our pork.

The Europeans are clear-cutting our North Carolina forests for wood chips for fuel.

The IRS commissioner visits the White House a gazillion times more often than Hillary and all the others combined.

And the activist environmentalists are worried about fracking.

Okay.

How Much Is A 26-Car Parking Lot Worth? In Williston, Way More Than $16 Million

Updates

February 27, 2014: apparently this project has been approved (verbal discussion with long-time Williston resident and very, very reliable source).

Later, 11:38 pm: I was correct. Incredible. I joked below that Williston city commissioners voting again the project must be realtors, turned out to be (at least partly) true. The Williston Herald also noted it:

Discussion continued Tuesday night on the potential sale of a downtown parking lot, but no action was ultimately taken.

Commissioners accepted a bid on May 14 for a total of $17 million, and numerous questions were raised about the bid and the pending purchase agreement.

Commissioner Tate Cymbaluk, who originally voted against the bid citing already-present parking issues downtown, peppered the commission with more concerns over the project.

Cymbaluk, who doubles as a realtor, said if the project’s footings are in place, the city could face potential liens if construction was not adequate to the agreement, which could cost more money to buy it back.

Sounds like the city could require bonds to minimize adverse exposure.

I still think the Chicago developer needs to take his proposal to the 13-mile corner. 

It doesn't take a rocket scientist to guess who was against man-camps; the result was $200/night lodging, and very, very expensive housing. But that's an old story.

 

Original Post

A Chicago developer wants to invest $16 million in downtown Williston.

Some in Williston are vehemently opposed: they don't want to lose a parking lot.

Even the city commissioners are divided 3-2.

Nancy Kapp, president and CEO of The Renaissance Companies, proposes a six-story complex on Williston’s Main Street that would house retail, office space, 45 apartments and underground parking.

The Renaissance on Main project, which would replace a city-owned parking lot, has created a divide among Williston city commissioners and residents. Commissioners recently supported the project in a 3-2 vote and will make a final decision on selling the lot in a special meeting tonight.

Call me crazy but I must be missing something. Let me guess. Two of the Williston city commissioners are realtors. Or own the parking meters on the parking lot.

The Dickinson Press is reporting.

I definitely understand the concerns of the local retailers, but if I were the Chicago developer and got that kind of welcome (two of five commissioners voting against the proposal), I would take my offer to the proposed Bakken City 13 miles north of Williston.

A $16 million project in downtown Williston would be just the start of a transformation. Downtown Williston, compared to all the activity in the area (and compared to the economic data just released -- more retail sales than Fargo), looks tiny, parochial, and pathetic. JCP and Hedderich's are the big buildings downtown? From the 1950s or 60s? Think of the property tax revenue this project would bring. Think of the huge number of shoppers this would bring to downtown.

Williston, April, 2013

Thursday Morning News And Links

Active rigs: 184 (steady, reversed recent downward trend)

RBN Energy: Condensate markets east of the Suez Canal, part II. 

Jobs Report

Reuters is reporting: "unemployment benefits applications rise unexpectedly BUT still within 2013 range." Okay.  Talk about beating a dead horse. Up 10,000.  Up to 354,000. Last week's numbers were revised UPWARD. No surprise. Four-week moving average edged up to 347,250.

Original GPD estimates for 1Q13 were revised downward to 2.1%.

WSJ Links

Section D (Personal Journal):

• FAA targets certain flights to be delayed to manage overall system. Incredible.

Section C (Money & Investing):

• KKR lands Petraeus.
• Banks see record profits.

Section B (Marketplace):

• Bankruptcy court says Patriot Coal can scrap union contracts.
• Everyone cutting their internet service -- wi-fi everywhere.
• Two Flying J Truck Stop employees in plea deals.

Section A:

• New tack in preventing hospital infections: hand-washing.
• Op-Ed: just a reminder. Senator Durbin wants to look into silencing bloggers and tweeters.

No links, but one trend: both GE and Berkshire Hathaway continue to expand their holdings in fossil fuel entities.

This Should Scare Folks

The Daily Caller is reporting:

The narrative and the graph are absolutely amazing:

Shulman’s extensive access to the White House first came to light during his testimony last week before the House Oversight and Government Reform Committee. Shulman gave assorted answers when asked why he had visited the White House 118 times during the period that the IRS was targeting tea party and conservative nonprofits for extra scrutiny and delays on their tax-exempt applications.

By contrast, Shulman’s predecessor Mark Everson only visited the White House once during four years of service in the George W. Bush administration and compared the IRS’s remoteness from the president to “Siberia.” But the scope of Shulman’s White House visits — which strongly suggests coordination by White House officials in the campaign against the president’s political opponents — is even more striking in comparison to the publicly recorded access of cabinet members.

The tea-tards had it right.

And the mainstream media will let this slide. Hero-worship. That tingle down their collective legs.

RBN Energy Correction To Yesterday's Story

Link to yesterday's post.

The correction:

Yesterday in our blog titled “To the Pipelines, Robin” we examined Genscape data that showed lower volumes moving via out of the Bakken and higher volumes moving via pipe.  One of the terminals in the data table was Inergy’s Colt terminal, which showed a decline this month versus last.  We got an email from our good friends at Inergy saying that in fact April volumes at Colt were in excess of the reported volumes and more importantly their May actual volumes increased 12% versus April.  Genscape uses remote cameras to record the goings and comings of rail cars at these terminals.  It turns out that there was a camera malfunction for a week, so the table should have reflected that fact.  We apologize for the error.

Fascinating, to say the least.