Federal Obstruction

5-16-12

16 May 2012 6:02am

Washington Times Op-Ed Today: Senators Lisa Murkowski and David Vitter.  TransCanada’s decision to reapply for a federal permit to build the Keystone XL pipeline across the U.S.-Canadian border offers President Obama something that rarely comes around - a second chance to do the right thing.

Calgary Herald by Dina O'Meara.  Oil and Gas Producers Keep Eye On Wildfires



Jim Jansen, Oil Taxes, ACES, Keep Alaska Competitive, Photo by Dave Harbour

AP/ADN by Becky Bohrer. Marc Langland, Keep Alaska Competitive, Oil Taxes, ACES, Northrim Bank, Photo by Dave Harbour Marc Langland (NGP Photo-R) and Jim Jansen (NGP Photo-L), co-chairs of the Make Alaska Competitive Coalition, in an email Tuesday, said they are not giving up on pressing for what they call meaningful tax reform, saying the state's economic future is at stake.

AP/ADN by Dan Joling.  "Four groups sue to protect Beluga Whales."  (Comment: Environmental activists within over three dozen resident NGOs in Alaska are working full time to oppose responsible natural resource activity Beluga Whale, Port Woronzof, Anchorage, Alaska, Photo by Dave Harbourin Alaska.  Since Alaska's constitution centers on a sustainable economy based on natural resources, the environmental groups are, in effect, calling for the bankrupting of Alaska.  Alaska's State Senate, by keeping oil taxes at a predatory level are, in effect, however indirectly, working with the environmental activists so intent on shutting down the state's free enterprise sector.  We spied a pod of (at least several dozen) spunky Beluga this past weekend at Point Woronzof (NGP Photo), while photographing a wedding.  Since Beluga populations are stable if not increasing we might have suggested to the headline writer this morning this alternative approach: Groups sue to stop energy production and most human commerce in Cook Inlet, the most populated section of Alaska.  -dh)  

Glen Biegel, KBYR, Talk Show, Photo by Dave HarbourYour author will appear this afternoon on Glen Biegel's (NGP Photo) radio show at 4 p.m. A.D.T..  Call in!    -dh
Shell Canada details BC liquefied natural gas project - Calgary Herald  -  Main callout pointer for calgaryheraldcom .... the province's growing natural gas reserves Thepipeline received a B.C. environmental assessment certificate ... www.calgaryherald.com/business/energy...C.../story.html
Categories:

5-14-12 - The Obama Administration Could Shut In The Nation's Petroleum Reserve in Alaska

14 May 2012 7:01am

AMA, Alaska Miners Association, Alaska Mining, Photo by Dave Harbour

 

The Alaska Mining Industry Is Honored -- Along with Bob Hoekzema, One Of Mining's StalwartSupporters (NGP Photo: Weekly AMA Meeting, 5-11-12.)

 Paul Jenkins says in his OP-Ed today that, "Without sensible oil tax reform, without more production, Alaskans will have to live with one eye on Alaska North Slope crude oil prices day to day and worry about the national and international vagaries and happenstance that drive them."

See the Alaska Gas Pipeline Federal Inspector News Briefs for Today!

Should Canada be less dependent on foreign oil?

Dan Fauske Says AGDC Still Has Much to Do | Radio Kenai - 5/14/12 The AGDC may not have received funding to take an in-state pipeline to an open season but ... radiokenai.net/fauske-says-agdc-still-has-much-to-do/

All-Alaska gasline the right move for today's market - Juneau Empire - By Sean Parnell Last fall I charted a new course to build a natural gas pipeline and deliver our resource to Alaskan homes and a global market. This new roadmap to a gasline established benchmarks that have been met and backstop our progress toward ...
See all stories on this topic »

 

 

 

 

 

 

 

 

 

 

"Alaska Is Being Assaulted: Let Me Count the Ways"

 
by 
 
Dave Harbour
 
Beginning today in Point Lay, Alaska and ending on May 24 in Anchorage, the BLM is holding hearings to seek public comment on the future of the Nation's Petroleum Reserve in Alaska (NPR-A).  
 
First created in 1923 as the Naval Petroleum Reserve Number 4, the area contains significant oil and gas resources.  The area was renamed in 1976 and management responsibilities transferred from the Department of the Navy to the Interior Department (DOI).
 
The BLM has created a Draft Integrated Activity Plan and Environmental Impact Statement (IAP/EIS) which contains four alternatives for NPR-A's future.  Alternatives A, B, and C embrace various levels of restricted access and activity while Alternative D would allow planning for natural resource development, including environmental safeguards.  
 
We believe the consumers of America along with the overall national interest are best served by Alternative D.  Here is an important analysis of the issues provided by the Resource Development Council for Alaska, and here is a link to the BLM notice.  We urge our readers to comment here and ALSO provide oral testimony at one of the upcoming meetings.
 
*     *     *    
 
Some of our newer readers may say of our title, "Isn't this a little bit of an overreaction?  Assaulted?  After all, we're just seeing routine regulatory processes, some hearings and a comment period.  It occurs during every administration."
 
We who have watched the actions of Alaska's Washington overlords for the past three+ years have compelling evidence that, a)  not one major natural resource decision from Washington has reasonably supported the sustainability of Alaska's economy, and b) the pattern of the Obama administration's regulation of Alaska activities has also been harmful to America's economy, national job creation, economic recovery, national defense, the balance of payments and energy security.  
 
Let us count the ways that calculating minds in the Federal capital are sapping the strength from America's largest, most well-endowed state:
 
1.  The NPR-A is an area the size of Maine, managed by the DOI's Bureau of Land Management(BLM).  The only significant environmental damage done in the area was perpetrated by the Federal government which has yet to clean up evidence of its own drilling activity, decades old.  Similar violations committed by private companies would have surely result in heavy fines.   Yet Washington at a time of financial and energy and employment crisis has resisted responsible development of NPR-A.  NPR-A is, for heaven's sake, a NATIONAL PETROLEUM RESERVE, yet the current proceeding could result in shutting in much or all of the NPR-A's future potential to supply domestic energy to our country. 
 
2.  The Arctic National Wildlife Refuge, managed by the DOI's US Fish and Wildlife Service (USFWS), is the size of North Carolina and mostly inaccessible wilderness.  Federal law permits oil and gas development on a small sliver on the coast (i.e. "1002 area"), with Congressional approval.  Exploration would occur in the winter when migratory species are absent.  In the adjacent Prudhoe Bay area, a different caribou herd has thrived and more than quadrupled, due partly to human protections.  Though Congress once granted approval for ANWR coastal plain development, President Clinton vetoed the bill in 1995.  The current Administration has not recommended Congressional approval and continues to consider making that coastal sliver, off limits.  Alaska has objected to USFWS steps to seek wilderness designations for the 1002 area within the Arctic National Wildlife Refuge’s 19 million acres that would prevent development of up to 16 billion barrels of oil.
 
3.  Alaska has vast oil and gas potential in the shallow water OCS areas of the Chukchi and Beaufort Seas, managed by the DOI's Bureau of Ocean Energy Management (BOEM).  The current Administration has continually delayed providing necessary approvals for exploration.  It has used crafty, passive-aggressive techniques wherein one agency will play 'good cop' and another will be the 'bad cop' that denies a permit.  Again, this summer season, companies are poised to explore the leases for which they paid the Federal government billions.  There is no assurance that a combination of Federal obstruction and/or environmental lawsuits will not further delay this important work.
 
4.  The White House, via an Ocean Policy Executive Order that evades Congressional oversight and budget approval, has embarked on a two year crusade by the Council on Environmental Quality(CEQ) to put a huge matrix of regulatory controls over the nation's oceans, the waterways feeding them and the inland areas affecting those waterways.  This process would further erode states' rights and citizen freedom by laying a new net of federal control over already well-regulated water and land activity.
 
5.  Washington is designating an area over half the size of Texas as critical habitat for Alaska's polar bears, whose population is stable if not increasing.  This initiative could stop or limit otherwise legal, reasonable and logical human activity in a state twice the size of Texas with a total population (722,000) smaller than Fort Worth.  The Parnell Administration has vowed to fight “…Improper listings and critical habitat designations with sound science and cost data,” referring to efforts by DOI's U.S. Fish and Wildlife Service (USFWS) to designate 187,166 square miles as a critical habitat for polar bears—an action Alaska and the Arctic Slope Regional Native Corporation believe will cost Alaskans hundreds of millions of dollars in economic potential.
 
6.  The State of Alaska sued the Secretary of the Interior in U.S. District Court to overturn the federal moratorium on offshore drilling in Alaska’s OCS, on grounds that the Obama administration violated federal law and acted in an arbitrary and capricious manner.
 
7.  Alaska challenged DOI's National Park Service regulations, claiming they violate federal law, usurp state sovereignty, and infringe the liberty of Alaskans.
 
8.  The State of Alaska petitioned The National Marine Fisheries Service (NMFS) to remove the eastern distinct population segment (DPS) of Steller sea lions from the list of species protected by the Endangered Species Act (ESA). NMFS is an agency of the National Oceanic and Atmospheric Administration (NOAA) and the Department of Commerce (DOC).
 
There is more we could say about assaults on Alaska.  We believe we are being subjected to an economic death by a thousand cuts.  And, there is much more we could say about similar Federal assaults occuring throughout America (i.e. Consider the USFWS current assault on Texas' economy via the "dunes sagebrush lizard" and EPA's sponsorship of economic distruction.)  
 
But in the spirit of 'one-step-at-a-time' we now focus on the NPR-A challenge and repeat our council to respond to the call to comment and to appear at the public meetings.  It is especially important that elected officials comment and verbally testify, as federal agencies frequently show deference to those of our readers elected to represent the rest of us.
 
Yes, federal actions seem contrived to wear down ordinary citizens and company analysts as well.  We seem to be on the receiving end every month of one initiative after the other to close down reasonable free enterprise and build up a bureaucratic oligarchy to enforce the multiplying array of costly and largely unnecessary regulations.
 
But we cannot give up.  If we stop appearing and commenting, the forces seeking to shut down commerce and our very way of life will own the preponderance of the legal record of these proceedings.  So, we take another deep breath, make another committment to comment, and work toward a better day.
 
End note:
 
2.We often repeat here our allegiance to factual content and urge our readers to provide us with specific suggestions for word changes in any of our news reports or editorials wherein facts are stated.  Thank you!  -dh
We congratulate the Alaska Miners Association for the noble service which has resulted in the following recognition from Alaska's Governor and Legislature:
 

Legislature Honors Bob Hoekzema

Senator Cathy Giessel presented a Bob Hoekzema, Alaska Senator Cathy Giessel, Alaska Miners Association, AMA, Photo by Dave HarbourCitation to Mr. Robert Hoekzema (NGP Photo), Alaska Miners Association at the Alaska Miners Association Anchorage Branch Breakfast on May 11, 2012, for his efforts and commitment in establishing open communication with the Alaska Miners Association Small Scale Miners Committee and the regulators for the State and Federal Agency in the State of Alaska.

The Department of Interior, Bureau of Land Management presented the committee with the 2011 Hardrock Miner Committee Outreach and Economic Security Award October 17, 2011. 

Governor Proclaims "Mining Day"

 

Senator Cathy Giessel presented a Deantha Crockett, Cathy Giessel, Alaska Senator, Jim Duffield, Alaska Miners Association, Mining Day, AMA, Photo by Dave Harbour2nd Mining Day Proclamation to the Alaska Miners Association (AMA) last Friday (May 11, 2012) at the weekly AMA meeting in Anchorage.  To receive this Proclamation was Deantha Crockett, Incoming Executive Director of the Alaska Miners Association and Jim Duffield (NGP Photo).  This act commemorates and represents the passing in Congress the General Mining Law of 1872 of the United States.
 

Lt. Governor Mead Treadwell Mead Treadwell, Alaska, Lieutenant Governor, Photo by Dave Harbour(NGP Photo-L)  presented . Steve Borell (NGP lower Photo), past Executive Director of the Alaska Miners Association, Steve Borell, Alaska Miners Association, AMA, Photo by Dave Harbourthe original Proclamation on May 10, 2011 at the Resource Development Council’s Annual Lunch.

 

 

Categories:

5-3-12 - Alaska Gas Pipeline Shifts Focus

03 May 2012 7:44am

Personal note of welcome. to our Texas friends! With our next email alert we will welcome Alex Mills, Texas Alliance of Energy Producers, Wichita Falls, Photo by Dave Harbourseveral hundred new subscribers, Torin Halsey/Times Record News Dave Harbour addresses members of the Texas Alliance of Energy Producers Wednesday morning at the expo breakfast. Harbour is the commissioner emeritus of the National Association of Regulatory Commissioners.mostly owners and executives associated with the thriving Texas Oil and Gas Industry.  Last Wednesday, your author had the pleasure of addressing the annual meeting of the Texas Alliance of Energy Producers in Wichita Falls, thanks to a thoughtful invitation from TAEP President, Alex Mills (NGP Photo-L).  Today, in response to several requests, we reluctantly provide the notes we used in preparing for that presentation, here.  We say, 'reluctantly', because the speech crept into several emotional and personal spaces that we don't normally discuss publicly.  But we willingly provide the information since so many seemed so genuinely interested in helping to communicate our message.  So, welcome, Texas energy producers; may your service to the Nation be better respected as citizens begin to better understand the critical role you play in the lives of all Americans.  You are now in the friendly company of thousands of fellow readers throughout the Lower 48, Alaska, Canada, Mexico and around the world!  -dh  (Times Record Photo).  (Note: 573 attended our breakfast presentation while 1,247 were present for John Hofmeister's noon speech.  Over 2,200 attended Texas' best BBQ gathering!)

Fuel Fix, by David Holt (NGP Photo).  Last week, we learned about plansDavid Holt, Consumer Energy Alliance, Lake Hood, Alaska, Oil and Gas Policy, Photo by Dave Harbour for a new set of regulations covering natural gas production from hydraulic fracturing. And this week, the Interior Department has said that those forthcoming rules are still being defined and it’s unclear when they will be released. If it sounds familiar, that’s because it is. The U.S. oil and gas industry, [...]  More »

 

 

 

 Large-diameter gas pipeline project to shift focus to tidewater LNG (From Elizabeth Bluemink, Alaska Department of Natural Resources for the Alaska Gas Pipeline Project Office) 

Brookings Institution, U.S. Department of Energy cite promise of Alaska gas projects 

n a letter signed Wednesday, May 2, Natural Resources Commissioner Dan Sullivan and Revenue Commissioner Bryan Butcher approved a Project Plan Amendment (PPA) for TransCanada Alaska under the Alaska Gasline Inducement Act (AGIA). The commissioners agreed to allow TransCanada Alaska, the State’s AGIA Licensee, to shift its focus to a large-diameter line that will run from Alaska’s North Slope to tidewater in Alaska for in-state use, liquefaction and export. 

On March 30, TransCanada, ExxonMobil, ConocoPhillips, and BP announced that they will work together on commercializing North Slope gas, focusing on large-scale liquefied natural gas (LNG) exports from Southcentral Alaska as an alternative to a pipeline through Alberta, Canada. The parties all agreed to do this work within an AGIA framework. 

“A key benefit of the PPA is that it enables all parties – the North Slope producers, the State and the AGIA Licensee – to come together for the first time to work on commercializing North Slope gas,” said Kurt Gibson, director of the Alaska Gas Pipeline Project Office, which oversees work by TransCanada Alaska on the Alaska Pipeline Project. 

As described in the Commissioners’ letter, the PPA lays out an orderly transition phase for TransCanada Alaska to shift its work on the Alberta project, focused on Lower 48 markets, to an LNG project focused on markets abroad. Furthermore, it describes the State’s significant, near-term expectations for TransCanada and the North Slope producers in keeping with Governor Parnell’s timetable for work on an LNG project, as laid out in his January State of the State Address. 

The PPA calls for TransCanada Alaska to complete its initial work on an LNG project by September of this year and conduct a comprehensive market solicitation by year’s end to all potential market participants, including but not limited to North Slope producers, explorers, LNG terminal developers, and entities seeking to import Alaska gas into Asian and other markets.  In early 2013, the state expects TransCanada to provide an updated, more comprehensive PPA request that will reflect the details of the LNG project and its associated timeline. This PPA will also need approval by departments of Natural Resources and Revenue.  

To accommodate the transition to an LNG project, the Commissioners have agreed to defer the filing of a certificate application for an Alberta line to the Federal Energy Regulatory Commission from October 2012 to October 2014. Approximately half of the work done by TransCanada Alaska so far on the Alberta option – including engineering and environmental studies – is applicable to an in-state LNG line. Some of the Alberta work will continue under the current PPA, either as dual use for an LNG project or to preserve work on the Alberta option for potential transfer to the State under terms of the license. This PPA will prevent unnecessary spending on the Alberta option while the LNG project is being developed.  

The Commissioners’ letter, posted at http://gasline.alaska.gov, authorizes TransCanada Alaska to perform its share of the LNG work as part of its AGIA license.  The license requires the project to be developed in a manner that maximizes in-state benefits while facilitating large-scale export.  In return for following these requirements, the license entitles TransCanada Alaska to reimbursements for its work on a gas pipeline and related midstream facilities. The license does not authorize reimbursement for work by the producers on other aspects of the LNG project, such as an export terminal or upstream mitigation work that may be necessary in advance of a major gas sale. TransCanada Alaska’s license was authorized by the Alaska State Legislature in 2008. 

In related developments that also occurred Wednesday, the Brookings Institution released findings from its year-long study on U.S. LNG exports and the Department of Energy announced a successful field trial of methane hydrate production on the North Slope. The Brookings study noted the strong competitive position of a potential, large-scale Alaska LNG project to Asia in comparison with other global LNG projects. According to Department of Energy Secretary Steven Chu, methane hydrates could “potentially yield significant new supplies of natural gas.” The Brookings Institution’s report can be read at www.brookings.edu.  The Department of Energy announcement can be read at http://energy.gov.   (See related Sean Cockerham story, ADN)

 

 

Categories:

4-25-12 - Texas Alliance of Energy Producers

25 April 2012 3:40am

Commentary:  Our friend, Consultant Paul Ziff Paul Ziff, Energy Consultant, Shale Gas, Photo by Dave Harbour(NGP Photo), sent us his new paper yesterday, “Natural Gas Under Siege”.  He says that in today’s price environment, every MCF of gas produced increases a producer’s financial loss.  If one adds to that scenario, desire of the Feds to overregulate shale, the loss to producers and production decline will be exacerbated.  -dh

Today, your author has the pleasure of addressing the annual meeting of the Texas Alliance of Energy Producers.  We will add the prepared text (here), though it was only used as a guide.  We will try to also obtain John Hofmeister's presentation.  -dh 

Membership Breakfast Speaker:
Dave Harbour, Texas Energy Alliance, Wichita SpringsDave Harbour, Commissioner Emeritus, Author, Regulator, Lobbyist
Membership Breakfast Featured Speaker: Dave Harbour, of Anchorage, Alaska, former Chairman Alaska Regulatory Commission, commissioner Emeritus of the National Association of Regulatory Commissioners and Publisher of Northern Gas Pipelines, will discuss the vital role for Texas and Alaska in the security and economic health of the United States. The breakfast begins at 7:30 am on April 25, 2011.
 
 
Industry Luncheon Speaker:  John Hofmeister,  Former President, Shell Oil Company
John Hofmeister, Dave Harbour, OCS, Texas Energy AllianceJohn Hofmeister, the former President of Shell Oil Company, delivers straight talk about the oil and gas industry. Since retiring in 2008, Hofmeister has been working for a better understanding of the oil business by the public and vice versa. He has written a book, “Why We Hate the Oil Companies: Straight Talk from an energy insider.” He organized the Citizens for Affordable Energy that promotes sound U.S. energy security solutions for America.
 
Coming to Anchorage: Thursday, June 21, 2012: Featuring John Hofmeister, President, Citizens for Affordable Energy, Dena'ina Civic & Convention Center
This Week in Texas: 2012 Alliance Expo & Annual Meeting brochure  

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4-22-12 - Is Alaska's Legislature Making A Big Mistake?

22 April 2012 7:08am

Today, we are pleased to provide you with a link to Tom Brennan's important commentary... embellished a bit with our own.  -dh

Tom Brennan, Alaska oil taxes, Snowflake Rebellion, Photo by Dave Harbour

Commentary: Tom Brennan's (NGP Photo) commentary below, notes that the Alaska Legislature seems enamored with providing tax credits to companies that explore new, potential petroleum reservoirs on Alaska state lands (i.e. most 'explorers' are relatively new to Alaska and have expressed publicly or privately a concern that if they do discover anything, production in this tax climate will be difficult or impossible).  State law provides subsidies for explorers by over taxing the so-called legacy producers, the three large oil companies, whose risk and diligence caused Alaska to benefit so greatly from Alaska Governor Sean Parnell, Alaska Oil Taxes, ACES, Photo by Dave HarbourAlaska North Slope production.  The short-sightedness of the Legislature's oil wealth redistribution is exposed below, when Brennan points out the significant new production that the three major producers (i.e. and the state)  could monetize from existing reservoirs.  We concur that the Trans Alaska Pipeline System (TAPS) throughput could be sustained for many decades were the tax and investment climate in Alaska to be fully competitive with other oil producing areas--and not among the worst taxing regimes in the free world.  Governor Sean Parnell (NGP Photo) has exercised his leadership and recommended tax reform to the Alaska State Senate, whose republican and democrat coalition leaders continue to vigorously oppose.  

Alaska also has serious challenges with the Federal Government's bending, breaking, abusing the rule of law whenever possible to delay and stop reasonable and traditional natural resource development in Alaska on federal lands.   Governor Sean Parnell and his Attorney General have consistently opposed federal overreach via public comment periods, defensive lawsuits and through use of the "bully pulpit".  Brennan's book, Snowflake Rebellion, anticipates a day in which Alaskans rebel against federal oppression.  

While a Snowflake Rebellion might save Alaska from its federal masters in Washington, it will take a different sort of rebellion to save Alaska from its own, elected leaders.  The first rebellion could be thought of as an "us vs. them" conflict, as in colonial days.  The second rebellion would more closely resemble a civil conflict, as in President Lincoln's day.   Both the state and the federal challenges require the honest analysis, courage and decisive action of citizens to overcome.  -dh

Anchorage Daily Planet by Tom Brennan (NGP Photo).  Any legislator who votes to provide ACES tax relief to Tom Brennan, Anchorage Daily Planet, Snowflake Rebellion, Photo by Dave Harbourcompanies making new North Slope discoveries - but deny it to the legacy field owners - owes the Alaska public an explanation.  This state and its people have a lot at stake in the dispute. The legacy fields are Alaska's heritage, the heart of any future economy. The fields still contain an estimated 4 billion barrels of recoverable oil. The current value of that oil at $120 a barrel is $480 billion. The state's royalty share alone - not counting its tax take - comes to about $85 billion, twice the size of the Alaska Permanent Fund. State taxes of various kinds would reap many billions more.   The state’s tax grab involves esoteric numbers like net profit so I can’t calculate that. But it is safe to say that the total, including royalties, would double or triple that $85 billion.  For reasons that have not been explained, many legislators refuse to pass legislation that would encourage full and prompt development of that resource. They simply say the lower taxes could reduce the state's immediate take by a billion or two a year.  (More....)

Categories:

4-17-12 Could America Experience Dictatorship This Summer?

17 April 2012 2:55am

The US Coast Guard definitely recognizes that the Arctic presents a daunting challenge and the Canadian military of course sees the Arctic as a core concern.

 

Obama’s Quiet Executive Order: Reaffirming and Expanding Presidential Powers

Commentary by

Dave Harbour

(See Similar, Shorter Master Resource Version Here)

We wonder how many of our readers knew that one month ago, the President signed an updated Executive Order (E.O.) -- giving himself access to dictatorial powers -- under the guise of 'national defense' and under authority of the Defense Production Act of 1950.  Upon activation, these powers will control public and private means of production, including energy, mining, timber, fishing and manufacturing production.  And more....

We are suspicious of White House motives because if the reasons for this E.O. (Reprinted below) were noble, we would have been treated to a transparent, presidential announcement and/or press conference.  

This recent action could really be referred to as an update of E.O. 11858 executed on May 7, 1975.  The president authorizes himself to take almost complete control of the country without Congressional assent or budget authority using national defense or even the peacetime preparation for national defense as an excuse for assuming dictatorial powers (See Sec. 102.  Policy.  The United States must have an industrial and technological base capable of meeting national defense requirements and capable of contributing to the technological superiority of its national defense equipment in peacetime and in times of national emergency.)

The E.O. goes on under Sec. 103.  General Functions  to direct, "Executive departments and agencies (agencies) responsible for plans and programs relating to national defense (as defined in section 801(j) of this order), or for resources and services needed to support such plans and programs...to (a)  identify requirements for the full spectrum of emergencies, including essential military and civilian demand; (b)  assess on an ongoing basis the capability of the domestic industrial and technological base to satisfy requirements in peacetime and times of national emergency, specifically evaluating the availability of the most critical resource and production sources, including subcontractors and suppliers, materials, skilled labor, and professional and technical personnel; (c)  be prepared, in the event of a potential threat to the security of the United States, to take actions necessary to ensure the availability of adequate resources and production capability, including services and critical technology, for national defense requirements...."

Put These Headlines In Context Of An Administration Building A Case For Why America's Economy Requires Centralized Federal Controls:

CBS: Obama seeks to confront oil market manipulation

Under pressure to take action on rising gasoline prices, President Obama on Tuesday will ask Congress to implement a plan that entails strengthening federal supervision of oil markets and increasing penalties for market manipulation, a senior administration official confirms to CBS News. The White House plan is more likely to draw sharp election-year distinctions with Republicans than have an immediate effect on prices at the pump.
 
President Obama, facing political problems over high gas prices, will announce a plan today "to increase oversight and crack down on manipulation in oil markets," the White House announced. "At a time when American consumers are feeling pain at the pump, it is critically important to ensure that illegal manipulation, fraud and market rigging are not contributing to gas price increases," said the announcement.
 
In a bid to put Republican rivals on the back foot, President Barack Obama on Tuesday called for Congress to give greater powers and more money to the nation’s commodities regulator in what is shaping up as a major election issue. With gas prices at $4 a gallon, Obama has been on the defensive, with Republican critics saying the administration has been too slow to approve domestic oil projects that could reduce prices.
 
Huffington Post by Jim Garrison.  President Obama's National Defense Resources Preparedness Executive Order of March 16 does to the country as a whole what the 2012 National Defense Authorization Act did to the Constitution in particular -- completely eviscerates any due process or judicial oversight for any action by the Government deemed in the interest of "national security." Like the NDAA, the new Executive Order puts the government completely above the law, which, in a democracy, is never supposed to happen. The United States is essentially now under martial law without the exigencies of a national emergency. 
 

The President doesn't have to wait for the Congress to declare a war or fund a national emergency.  He could  (in our words) "deem an emergency to exist or 'potentially exist' and state in the preamble to a forthcoming directive that, while the country does not face an actual, imminent national security threat, we must prepare for potential threats.  He could, accordingly, assume control of all transportation facilities, food stores and supplies, energy and natural resource production, national water supplies and the nation's health care systems.  Since the E.O. gives authority to control 'services', in his  capacity as Commander-in-Chief of the Armed Forces, he could also assume authority over state and local fire and police services."  If employees of these organizations wished to continue receiving paychecks, they would, of course, comply with federal demands made of them.  Any pensions administered by these organizations could provide adequate, indirect control over pensioners. 

The heads of agencies shall, under this E.O.,  become heads of massive central planning and enforcement efforts, such as those that existed in previous, failed authoritarian societies.  

The principle players in controlling the new American economy and its parts and enforcing this new 'rule by agency', shall include the Departments of Homeland Security (National Defense); Commerce (Means of production and manufacturing base, and all other materials, services, and facilities, including construction materials); the Secretary of Agriculture  (food resources, food resource facilities, livestock resources, veterinary resources, plant health resources, and the domestic distribution of farm equipment and commercial fertilizer); the Secretary of Energy (controlling public and private energy activity?);  the Secretary of Health and Human Services (health resources, making debate over Obamacare a moot point?); the Secretary of Transportation (all forms of civil transportation, whether publicly or privately owned?); the Secretary of Defense (water resources--meaning that some of its military functions will fall under Homeland Security? )

The above agencies "shall plan for and issue regulations to prioritize and allocate resources and establish standards and procedures by which the authority shall be used to promote the national defense, under both emergency and non-emergency conditions."

If agencies disagree over which should exercise what control (the U.S. Military and CIA come to mind here), "then the issue shall be referred to the President through the Assistant to the President and National Security Advisor and the Assistant to the President for Homeland Security and Counterterrorism."

The free market will experience indentured servitude to federal agencies, as "...the Secretary of the resource department that made the finding may use the authority of section 101(a) of the Act, 50 U.S.C. App. 2071(a), to control the general distribution of any material (including applicable services) in the civilian market.

If agencies run short of cash, no problem, no need to bother Congress.  Just guarantee a loan and charge it to the next generation with approval of the Secretary of Treasury.   Sec. 302.  Loans.  To reduce current or projected shortfalls of resources, critical technology items, or materials essential for the national defense, the head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 302 of the Act, 50 U.S.C. App. 2092, to make loans thereunder.  Terms and conditions of loans under this authority shall be determined in consultation with the Secretary of the Treasury and the Director of OMB.

And if readers weren't completely sure that the intent of the President's E.O. is to be able to confiscate property, note Sec. 308.  Government-Owned Equipment.  The head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 303(e) of the Act, 50 U.S.C. App. 2093(e), to: (a)  procure and install additional equipment, facilities, processes, or improvements to plants, factories, and other industrial facilities owned by the Federal Government and to procure and install Government owned equipment in plants, factories, or other industrial facilities owned by private persons; (b)  provide for the modification or expansion of privately owned facilities, including the modification or improvement of production processes, when taking actions under sections 301, 302, or 303 of the Act, 50 U.S.C. App. 2091, 2092, 2093....

We believe that were this E.O. honorably intended, the White House would have announced its presence and explained the need for it to the American people a month ago.  We believe that the White House would not have gone to the trouble to construct a way in wartime or peace to have total control of America without Congressional consent, unless it intended to activate that plan.  We believe the White House is now positioned to announce that because of some upcoming news item, 'significant justification exists for activating the E.O.'   What might constitute "significant justification"?   Subjective excuses abound: a declaration of shortage of rare earth and strategic minerals; domestic chaos as we have seen with the 'occupy' movement supported by the White House; a disruption in middle eastern oil deliveries; high gasoline prices; a 'convenient' environmental accident; loss the American dollar reserve currency status; etc.  Effectively, then, the country will be secured under a dictatorship.

The energy industry and Alaska's resources could play an important role in the rise of the 'New America" under authority of this E.O..  The environmental activists so important to White House agendas before now, could become irrelevant under this E.O. -- or redirected to control certain government agencies -- and one could imagine government controlled oil and gas, mining, timber and fishing activity to replace private initiative and efficient operation of the free market.

Here is how Executive Orders came to exist.

Here is the national coverage now beginning to build into a huge issue which the mainstream media will no longer be able to ignore and which will give Mitt Romney new reason for leading a much more aggressive presidential campaign. 

Ann Barnhardt

With news now breaking quickly about this E.O. and its ramifications, we expect activation of its provisions could occur soon, before the public has time to panic and before an organized opposition has time to 1) believe that this could be happening in America, and 2) create an effective defense that can withstand the criticism that it is "defying a lawful Executive Order of the President".

We urge all concerned citizens, however, to not underestimate this Commander-in-Chief's creative use of the E.O., particularly one that might declare that, "due to potential national security concerns, the national elections in November have been postponed until November of 2013."

If the President wanted to allay the concerns arising from a plain reading of the E.O., he need only hold a press conference and explain 1) why this E.O. does not in fact enable the assumption of dictatorial powers, or 2) why this E.O. is intended to and can only be used to coordinate America's assets in the event of a true national emergency -- supported and funded by Congress.  Absent such a revelation, we should remain vigilant.

In this Brave New World, no federal initiative from this point forward should be dismissed as "too extreme, too anti-American, or too impossible."

Write us here, if you agree or disagree with our analysis of this E.O., together with the reasons for your reaction.

God Bless America.

(See reader responses here.)

The Arctic Institute.  

 

The Arctic Institute.  We heard that the Russian and Norwegian navies are preparing for joint exercise POMOR-2012, which will take place in Russian and Norwegian waters and be focused on anti-terror and anti-piracy operations (Barents Observer), while the Russian Border Patrol and the US Coast Guard had a series of meetings in Juneau this week, after which they signed a "document of understanding" covering cooperation on fisheries and law enforcement, among other issues (Juneau Empire). The US Coast Guard definitely recognizes that the Arctic presents a daunting challenge (Sea Power, San Francisco Chronicle), and the Canadian military of course sees the Arctic as a core concern. See an overview of Canada's largest ongoing military deals HERE from the CBC. Also in Canada, 150 soldiers, divers and rangers are taking part in Operation Nunalivut 2012, working on a couple of different possible scenarios (Nunatsiaq Online). Side note: had you heard about a project to install underwater listening devices along the Northwest Passage (redicecreations.com)? 

White House.  

 

Presidential Executive Order:  http://www.whitehouse.gov/the-press-office/2012/03/16/executive-order-national-defense-resources-preparedness

 

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The White House

Office of the Press Secretary

For Immediate Release
March 16, 2012
 

Executive Order -- National Defense Resources Preparedness

 

EXECUTIVE ORDER

NATIONAL DEFENSE RESOURCES PREPAREDNESS

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et seq.), and section 301 of title 3, United States Code, and as Commander in Chief of the Armed Forces of the United States, it is hereby ordered as follows:

PART I  -  PURPOSE, POLICY, AND IMPLEMENTATION

Section 101.  Purpose.  This order delegates authorities and addresses national defense resource policies and programs under the Defense Production Act of 1950, as amended (the "Act").

Sec. 102.  Policy.  The United States must have an industrial and technological base capable of meeting national defense requirements and capable of contributing to the technological superiority of its national defense equipment in peacetime and in times of national emergency.  The domestic industrial and technological base is the foundation for national defense preparedness.  The authorities provided in the Act shall be used to strengthen this base and to ensure it is capable of responding to the national defense needs of the United States.

Sec. 103.  General Functions.  Executive departments and agencies (agencies) responsible for plans and programs relating to national defense (as defined in section 801(j) of this order), or for resources and services needed to support such plans and programs, shall:

(a)  identify requirements for the full spectrum of emergencies, including essential military and civilian demand;

(b)  assess on an ongoing basis the capability of the domestic industrial and technological base to satisfy requirements in peacetime and times of national emergency, specifically evaluating the availability of the most critical resource and production sources, including subcontractors and suppliers, materials, skilled labor, and professional and technical personnel;

(c)  be prepared, in the event of a potential threat to the security of the United States, to take actions necessary to ensure the availability of adequate resources and production capability, including services and critical technology, for national defense requirements;

(d)  improve the efficiency and responsiveness of the domestic industrial base to support national defense requirements; and

(e)  foster cooperation between the defense and commercial sectors for research and development and for acquisition of materials, services, components, and equipment to enhance industrial base efficiency and responsiveness.

Sec. 104.  Implementation.  (a)  The National Security Council and Homeland Security Council, in conjunction with the National Economic Council, shall serve as the integrated policymaking forum for consideration and formulation of national defense resource preparedness policy and shall make recommendations to the President on the use of authorities under the Act.

(b)  The Secretary of Homeland Security shall:

(1)  advise the President on issues of national defense resource preparedness and on the use of the authorities and functions delegated by this order;

(2)  provide for the central coordination of the plans and programs incident to authorities and functions delegated under this order, and provide guidance to agencies assigned functions under this order, developed in consultation with such agencies; and

(3)  report to the President periodically concerning all program activities conducted pursuant to this order.

(c)  The Defense Production Act Committee, described in section 701 of this order, shall:

(1)  in a manner consistent with section 2(b) of the Act, 50 U.S.C. App. 2062(b), advise the President through the Assistant to the President and National Security Advisor, the Assistant to the President for Homeland Security and Counterterrorism, and the Assistant to the President for Economic Policy on the effective use of the authorities under the Act; and

(2)  prepare and coordinate an annual report to the Congress pursuant to section 722(d) of the Act, 50 U.S.C. App. 2171(d).

(d)  The Secretary of Commerce, in cooperation with the Secretary of Defense, the Secretary of Homeland Security, and other agencies, shall:

(1)  analyze potential effects of national emergencies on actual production capability, taking into account the entire production system, including shortages of resources, and develop recommended preparedness measures to strengthen capabilities for production increases in national emergencies; and

(2)  perform industry analyses to assess capabilities of the industrial base to support the national defense, and develop policy recommendations to improve the international competitiveness of specific domestic industries and their abilities to meet national defense program needs.

PART II  -  PRIORITIES AND ALLOCATIONS

Sec. 201.  Priorities and Allocations Authorities.  (a)  The authority of the President conferred by section 101 of the Act, 50 U.S.C. App. 2071, to require acceptance and priority performance of contracts or orders (other than contracts of employment) to promote the national defense over performance of any other contracts or orders, and to allocate materials, services, and facilities as deemed necessary or appropriate to promote the national defense, is delegated to the following agency heads:

(1)  the Secretary of Agriculture with respect to food resources, food resource facilities, livestock resources, veterinary resources, plant health resources, and the domestic distribution of farm equipment and commercial fertilizer;

(2)  the Secretary of Energy with respect to all forms of energy;

(3)  the Secretary of Health and Human Services with respect to health resources;

(4)  the Secretary of Transportation with respect to all forms of civil transportation;

(5)  the Secretary of Defense with respect to water resources; and

(6)  the Secretary of Commerce with respect to all other materials, services, and facilities, including construction materials.

(b)  The Secretary of each agency delegated authority under subsection (a) of this section (resource departments) shall plan for and issue regulations to prioritize and allocate resources and establish standards and procedures by which the authority shall be used to promote the national defense, under both emergency and non-emergency conditions.  Each Secretary shall authorize the heads of other agencies, as appropriate, to place priority ratings on contracts and orders for materials, services, and facilities needed in support of programs approved under section 202 of this order.

(c)  Each resource department shall act, as necessary and appropriate, upon requests for special priorities assistance, as defined by section 801(l) of this order, in a time frame consistent with the urgency of the need at hand.  In situations where there are competing program requirements for limited resources, the resource department shall consult with the Secretary who made the required determination under section 202 of this order.  Such Secretary shall coordinate with and identify for the resource department which program requirements to prioritize on the basis of operational urgency.  In situations involving more than one Secretary making such a required determination under section 202 of this order, the Secretaries shall coordinate with and identify for the resource department which program requirements should receive priority on the basis of operational urgency.

(d)  If agreement cannot be reached between two such Secretaries, then the issue shall be referred to the President through the Assistant to the President and National Security Advisor and the Assistant to the President for Homeland Security and Counterterrorism.

(e)  The Secretary of each resource department, when necessary, shall make the finding required under section 101(b) of the Act, 50 U.S.C. App. 2071(b).  This finding shall be submitted for the President's approval through the Assistant to the President and National Security Advisor and the Assistant to the President for Homeland Security and Counterterrorism.  Upon such approval, the Secretary of the resource department that made the finding may use the authority of section 101(a) of the Act, 50 U.S.C. App. 2071(a), to control the general distribution of any material (including applicable services) in the civilian market.

Sec. 202.  Determinations.  Except as provided in section 201(e) of this order, the authority delegated by section 201 of this order may be used only to support programs that have been determined in writing as necessary or appropriate to promote the national defense:

(a)  by the Secretary of Defense with respect to military production and construction, military assistance to foreign nations, military use of civil transportation, stockpiles managed by the Department of Defense, space, and directly related activities;

(b)  by the Secretary of Energy with respect to energy production and construction, distribution and use, and directly related activities; and

(c)  by the Secretary of Homeland Security with respect to all other national defense programs, including civil defense and continuity of Government.

Sec. 203.  Maximizing Domestic Energy Supplies.  The authorities of the President under section 101(c)(1) (2) of the Act, 50 U.S.C. App. 2071(c)(1) (2), are delegated to the Secretary of Commerce, with the exception that the authority to make findings that materials (including equipment), services, and facilities are critical and essential, as described in section 101(c)(2)(A) of the Act, 50 U.S.C. App. 2071(c)(2)(A), is delegated to the Secretary of Energy.

Sec. 204.  Chemical and Biological Warfare.  The authority of the President conferred by section 104(b) of the Act, 50 U.S.C. App. 2074(b), is delegated to the Secretary of Defense.  This authority may not be further delegated by the Secretary.

PART III  -  EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY

Sec. 301.  Loan Guarantees.  (a)  To reduce current or projected shortfalls of resources, critical technology items, or materials essential for the national defense, the head of each agency engaged in procurement for the national defense, as defined in section 801(h) of this order, is authorized pursuant to section 301 of the Act, 50 U.S.C. App. 2091, to guarantee loans by private institutions.

(b)  Each guaranteeing agency is designated and authorized to:  (1) act as fiscal agent in the making of its own guarantee contracts and in otherwise carrying out the purposes of section 301 of the Act; and (2) contract with any Federal Reserve Bank to assist the agency in serving as fiscal agent.

(c)  Terms and conditions of guarantees under this authority shall be determined in consultation with the Secretary of the Treasury and the Director of the Office of Management and Budget (OMB).  The guaranteeing agency is authorized, following such consultation, to prescribe:  (1) either specifically or by maximum limits or otherwise, rates of interest, guarantee and commitment fees, and other charges which may be made in connection with such guarantee contracts; and (2) regulations governing the forms and procedures (which shall be uniform to the extent practicable) to be utilized in connection therewith.

Sec. 302.  Loans.  To reduce current or projected shortfalls of resources, critical technology items, or materials essential for the national defense, the head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 302 of the Act, 50 U.S.C. App. 2092, to make loans thereunder.  Terms and conditions of loans under this authority shall be determined in consultation with the Secretary of the Treasury and the Director of OMB.

Sec. 303.  Additional Authorities.  (a)  To create, maintain, protect, expand, or restore domestic industrial base capabilities essential for the national defense, the head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 303 of the Act, 50 U.S.C. App. 2093, to make provision for purchases of, or commitments to purchase, an industrial resource or a critical technology item for Government use or resale, and to make provision for the development of production capabilities, and for the increased use of emerging technologies in security program applications, and to enable rapid transition of emerging technologies.

(b)  Materials acquired under section 303 of the Act, 50 U.S.C. App. 2093, that exceed the needs of the programs under the Act may be transferred to the National Defense Stockpile, if, in the judgment of the Secretary of Defense as the National Defense Stockpile Manager, such transfers are in the public interest.

Sec. 304.  Subsidy Payments.  To ensure the supply of raw or nonprocessed materials from high cost sources, or to ensure maximum production or supply in any area at stable prices of any materials in light of a temporary increase in transportation cost, the head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 303(c) of the Act, 50 U.S.C. App. 2093(c), to make subsidy payments, after consultation with the Secretary of the Treasury and the Director of OMB.

Sec. 305.  Determinations and Findings.  (a)  Pursuant to budget authority provided by an appropriations act in advance for credit assistance under section 301 or 302 of the Act, 50 U.S.C. App. 2091, 2092, and consistent with the Federal Credit Reform Act of 1990, as amended (FCRA), 2 U.S.C. 661 et seq., the head of each agency engaged in procurement for the national defense is delegated the authority to make the determinations set forth in sections 301(a)(2) and 302(b)(2) of the Act, in consultation with the Secretary making the required determination under section 202 of this order; provided, that such determinations shall be made after due consideration of the provisions of OMB Circular A 129 and the credit subsidy score for the relevant loan or loan guarantee as approved by OMB pursuant to FCRA.

(b)  Other than any determination by the President under section 303(a)(7)(b) of the Act, the head of each agency engaged in procurement for the national defense is delegated the authority to make the required determinations, judgments, certifications, findings, and notifications defined under section 303 of the Act, 50 U.S.C. App. 2093, in consultation with the Secretary making the required determination under section 202 of this order.

Sec. 306.  Strategic and Critical Materials.  The Secretary of Defense, and the Secretary of the Interior in consultation with the Secretary of Defense as the National Defense Stockpile Manager, are each delegated the authority of the President under section 303(a)(1)(B) of the Act, 50 U.S.C. App. 2093(a)(1)(B), to encourage the exploration, development, and mining of strategic and critical materials and other materials.

Sec. 307.  Substitutes.  The head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 303(g) of the Act, 50 U.S.C. App. 2093(g), to make provision for the development of substitutes for strategic and critical materials, critical components, critical technology items, and other resources to aid the national defense.

Sec. 308.  Government-Owned Equipment.  The head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 303(e) of the Act, 50 U.S.C. App. 2093(e), to:

(a)  procure and install additional equipment, facilities, processes, or improvements to plants, factories, and other industrial facilities owned by the Federal Government and to procure and install Government owned equipment in plants, factories, or other industrial facilities owned by private persons;

(b)  provide for the modification or expansion of privately owned facilities, including the modification or improvement of production processes, when taking actions under sections 301, 302, or 303 of the Act, 50 U.S.C. App. 2091, 2092, 2093; and

(c)  sell or otherwise transfer equipment owned by the Federal Government and installed under section 303(e) of the Act, 50 U.S.C. App. 2093(e), to the owners of such plants, factories, or other industrial facilities.

Sec. 309.  Defense Production Act Fund.  The Secretary of Defense is designated the Defense Production Act Fund Manager, in accordance with section 304(f) of the Act, 50 U.S.C. App. 2094(f), and shall carry out the duties specified in section 304 of the Act, in consultation with the agency heads having approved, and appropriated funds for, projects under title III of the Act.

Sec. 310.  Critical Items.  The head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 107(b)(1) of the Act, 50 U.S.C. App. 2077(b)(1), to take appropriate action to ensure that critical components, critical technology items, essential materials, and industrial resources are available from reliable sources when needed to meet defense requirements during peacetime, graduated mobilization, and national emergency.  Appropriate action may include restricting contract solicitations to reliable sources, restricting contract solicitations to domestic sources (pursuant to statutory authority), stockpiling critical components, and developing substitutes for critical components or critical technology items.

Sec. 311.  Strengthening Domestic Capability.  The head of each agency engaged in procurement for the national defense is delegated the authority of the President under section 107(a) of the Act, 50 U.S.C. App. 2077(a), to utilize the authority of title III of the Act or any other provision of law to provide appropriate incentives to develop, maintain, modernize, restore, and expand the productive capacities of domestic sources for critical components, critical technology items, materials, and industrial resources essential for the execution of the national security strategy of the United States.

Sec. 312.  Modernization of Equipment.  The head of each agency engaged in procurement for the national defense, in accordance with section 108(b) of the Act, 50 U.S.C. App. 2078(b), may utilize the authority of title III of the Act to guarantee the purchase or lease of advance manufacturing equipment, and any related services with respect to any such equipment for purposes of the Act.  In considering title III projects, the head of each agency engaged in procurement for the national defense shall provide a strong preference for proposals submitted by a small business supplier or subcontractor in accordance with section 108(b)(2) of the Act, 50 U.S.C. App. 2078(b)(2).

PART IV  -  VOLUNTARY AGREEMENTS AND ADVISORY COMMITTEES

Sec. 401.  Delegations.  The authority of the President under sections 708(c) and (d) of the Act, 50 U.S.C. App. 2158(c), (d), is delegated to the heads of agencies otherwise delegated authority under this order.  The status of the use of such delegations shall be furnished to the Secretary of Homeland Security.

Sec. 402.  Advisory Committees.  The authority of the President under section 708(d) of the Act, 50 U.S.C. App. 2158(d), and delegated in section 401 of this order (relating to establishment of advisory committees) shall be exercised only after consultation with, and in accordance with, guidelines and procedures established by the Administrator of General Services.

Sec. 403.  Regulations.  The Secretary of Homeland Security, after approval of the Attorney General, and after consultation by the Attorney General with the Chairman of the Federal Trade Commission, shall promulgate rules pursuant to section 708(e) of the Act, 50 U.S.C. App. 2158(e), incorporating standards and procedures by which voluntary agreements and plans of action may be developed and carried out.  Such rules may be adopted by other agencies to fulfill the rulemaking requirement of section 708(e) of the Act, 50 U.S.C. App. 2158(e).

PART V  -  EMPLOYMENT OF PERSONNEL

Sec. 501.  National Defense Executive Reserve.  (a) In accordance with section 710(e) of the Act, 50 U.S.C. App. 2160(e), there is established in the executive branch a National Defense Executive Reserve (NDER) composed of persons of recognized expertise from various segments of the private sector and from Government (except full time Federal employees) for training for employment in executive positions in the Federal Government in the event of a national defense emergency.

(b)  The Secretary of Homeland Security shall issue necessary guidance for the NDER program, including appropriate guidance for establishment, recruitment, training, monitoring, and activation of NDER units and shall be responsible for the overall coordination of the NDER program.  The authority of the President under section 710(e) of the Act, 50 U.S.C. App. 2160(e), to determine periods of national defense emergency is delegated to the Secretary of Homeland Security.

(c)  The head of any agency may implement section 501(a) of this order with respect to NDER operations in such agency.

(d)  The head of each agency with an NDER unit may exercise the authority under section 703 of the Act, 50 U.S.C. App. 2153, to employ civilian personnel when activating all or a part of its NDER unit.  The exercise of this authority shall be subject to the provisions of sections 501(e) and (f) of this order and shall not be redelegated.

(e)  The head of an agency may activate an NDER unit, in whole or in part, upon the written determination of the Secretary of Homeland Security that an emergency affecting the national defense exists and that the activation of the unit is necessary to carry out the emergency program functions of the agency.

(f)  Prior to activating the NDER unit, the head of the agency shall notify, in writing, the Assistant to the President for Homeland Security and Counterterrorism of the impending activation.

Sec. 502.  Consultants.  The head of each agency otherwise delegated functions under this order is delegated the authority of the President under sections 710(b) and (c) of the Act, 50 U.S.C. App. 2160(b), (c), to employ persons of outstanding experience and ability without compensation and to employ experts, consultants, or organizations.  The authority delegated by this section may not be redelegated.

PART VI  -  LABOR REQUIREMENTS

Sec. 601.  Secretary of Labor.  (a)  The Secretary of Labor, in coordination with the Secretary of Defense and the heads of other agencies, as deemed appropriate by the Secretary of Labor, shall:

(1)  collect and maintain data necessary to make a continuing appraisal of the Nation's workforce needs for purposes of national defense;

(2)  upon request by the Director of Selective Service, and in coordination with the Secretary of Defense, assist the Director of Selective Service in development of policies regulating the induction and deferment of persons for duty in the armed services;

(3)  upon request from the head of an agency with authority under this order, consult with that agency with respect to:  (i) the effect of contemplated actions on labor demand and utilization; (ii) the relation of labor demand to materials and facilities requirements; and (iii) such other matters as will assist in making the exercise of priority and allocations functions consistent with effective utilization and distribution of labor;

(4)  upon request from the head of an agency with authority under this order:  (i) formulate plans, programs, and policies for meeting the labor requirements of actions to be taken for national defense purposes; and (ii) estimate training needs to help address national defense requirements and promote necessary and appropriate training programs; and

(5)  develop and implement an effective labor management relations policy to support the activities and programs under this order, with the cooperation of other agencies as deemed appropriate by the Secretary of Labor, including the National Labor Relations Board, the Federal Labor Relations Authority, the National Mediation Board, and the Federal Mediation and Conciliation Service.

(b)  All agencies shall cooperate with the Secretary of Labor, upon request, for the purposes of this section, to the extent permitted by law.

PART VII  -  DEFENSE PRODUCTION ACT COMMITTEE

Sec. 701.  The Defense Production Act Committee.  (a)  The Defense Production Act Committee (Committee) shall be composed of the following members, in accordance with section 722(b) of the Act, 50 U.S.C. App. 2171(b):

(1)   The Secretary of State;

(2)   The Secretary of the Treasury;

(3)   The Secretary of Defense;

(4)   The Attorney General;

(5)   The Secretary of the Interior;

(6)   The Secretary of Agriculture;

(7)   The Secretary of Commerce;

(8)   The Secretary of Labor;

(9)   The Secretary of Health and Human Services;

(10)  The Secretary of Transportation;

(11)  The Secretary of Energy;

(12)  The Secretary of Homeland Security; 

(13)  The Director of National Intelligence;

(14)  The Director of the Central Intelligence Agency;

(15)  The Chair of the Council of Economic Advisers;

(16)  The Administrator of the National Aeronautics and Space Administration; and

(17)  The Administrator of General Services.

(b)  The Director of OMB and the Director of the Office of Science and Technology Policy shall be invited to participate in all Committee meetings and activities in an advisory role.  The Chairperson, as designated by the President pursuant to section 722 of the Act, 50 U.S.C. App. 2171, may invite the heads of other agencies or offices to participate in Committee meetings and activities in an advisory role, as appropriate.

Sec. 702.  Offsets.  The Secretary of Commerce shall prepare and submit to the Congress the annual report required by section 723 of the Act, 50 U.S.C. App. 2172, in consultation with the Secretaries of State, the Treasury, Defense, and Labor, the United States Trade Representative, the Director of National Intelligence, and the heads of other agencies as appropriate.  The heads of agencies shall provide the Secretary of Commerce with such information as may be necessary for the effective performance of this function.

PART VIII  -  GENERAL PROVISIONS

Sec. 801.  Definitions.  In addition to the definitions in section 702 of the Act, 50 U.S.C. App. 2152, the following definitions apply throughout this order:

(a)  "Civil transportation" includes movement of persons and property by all modes of transportation in interstate, intrastate, or foreign commerce within the United States, its territories and possessions, and the District of Columbia, and related public storage and warehousing, ports, services, equipment and facilities, such as transportation carrier shop and repair facilities.  "Civil transportation" also shall include direction, control, and coordination of civil transportation capacity regardless of ownership.  "Civil transportation" shall not include transportation owned or controlled by the Department of Defense, use of petroleum and gas pipelines, and coal slurry pipelines used only to supply energy production facilities directly.

(b)  "Energy" means all forms of energy including petroleum, gas (both natural and manufactured), electricity, solid fuels (including all forms of coal, coke, coal chemicals, coal liquification, and coal gasification), solar, wind, other types of renewable energy, atomic energy, and the production, conservation, use, control, and distribution (including pipelines) of all of these forms of energy.

(c)  "Farm equipment" means equipment, machinery, and repair parts manufactured for use on farms in connection with the production or preparation for market use of food resources.

(d)  "Fertilizer" means any product or combination of products that contain one or more of the elements nitrogen, phosphorus, and potassium for use as a plant nutrient.

(e)  "Food resources" means all commodities and products, (simple, mixed, or compound), or complements to such commodities or products, that are capable of being ingested by either human beings or animals, irrespective of other uses to which such commodities or products may be put, at all stages of processing from the raw commodity to the products thereof in vendible form for human or animal consumption.  "Food resources" also means potable water packaged in commercially marketable containers, all starches, sugars, vegetable and animal or marine fats and oils, seed, cotton, hemp, and flax fiber, but does not mean any such material after it loses its identity as an agricultural commodity or agricultural product.

(f)  "Food resource facilities" means plants, machinery, vehicles (including on farm), and other facilities required for the production, processing, distribution, and storage (including cold storage) of food resources, and for the domestic distribution of farm equipment and fertilizer (excluding transportation thereof).

(g)  "Functions" include powers, duties, authority, responsibilities, and discretion.

(h)  "Head of each agency engaged in procurement for the national defense" means the heads of the Departments of State, Justice, the Interior, and Homeland Security, the Office of the Director of National Intelligence, the Central Intelligence Agency, the National Aeronautics and Space Administration, the General Services Administration, and all other agencies with authority delegated under section 201 of this order.

(i)  "Health resources" means drugs, biological products, medical devices, materials, facilities, health supplies, services and equipment required to diagnose, mitigate or prevent the impairment of, improve, treat, cure, or restore the physical or mental health conditions of the population.

(j)  "National defense" means programs for military and energy production or construction, military or critical infrastructure assistance to any foreign nation, homeland security, stockpiling, space, and any directly related activity.  Such term includes emergency preparedness activities conducted pursuant to title VI of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5195 et seq., and critical infrastructure protection and restoration.

(k)  "Offsets" means compensation practices required as a condition of purchase in either government to government or commercial sales of defense articles and/or defense services as defined by the Arms Export Control Act, 22 U.S.C. 2751 et seq., and the International Traffic in Arms Regulations, 22 C.F.R. 120.1 130.17.

(l)  "Special priorities assistance" means action by resource departments to assist with expediting deliveries, placing rated orders, locating suppliers, resolving production or delivery conflicts between various rated orders, addressing problems that arise in the fulfillment of a rated order or other action authorized by a delegated agency, and determining the validity of rated orders.

(m)  "Strategic and critical materials" means materials (including energy) that (1) would be needed to supply the military, industrial, and essential civilian needs of the United States during a national emergency, and (2) are not found or produced in the United States in sufficient quantities to meet such need and are vulnerable to the termination or reduction of the availability of the material.

(n)  "Water resources" means all usable water, from all sources, within the jurisdiction of the United States, that can be managed, controlled, and allocated to meet emergency requirements, except "water resources" does not include usable water that qualifies as "food resources."

Sec. 802.  General.  (a)  Except as otherwise provided in section 802(c) of this order, the authorities vested in the President by title VII of the Act, 50 U.S.C. App. 2151 et seq., are delegated to the head of each agency in carrying out the delegated authorities under the Act and this order, by the Secretary of Labor in carrying out part VI of this order, and by the Secretary of the Treasury in exercising the functions assigned in Executive Order 11858, as amended.

(b)  The authorities that may be exercised and performed pursuant to section 802(a) of this order shall include:

(1)  the power to redelegate authorities, and to authorize the successive redelegation of authorities to agencies, officers, and employees of the Government; and

(2)  the power of subpoena under section 705 of the Act, 50 U.S.C. App. 2155, with respect to (i) authorities delegated in parts II, III, and section 702 of this order, and (ii) the functions assigned to the Secretary of the Treasury in Executive Order 11858, as amended, provided that the subpoena power referenced in subsections (i) and (ii) shall be utilized only after the scope and purpose of the investigation, inspection, or inquiry to which the subpoena relates have been defined either by the appropriate officer identified in section 802(a) of this order or by such other person or persons as the officer shall designate.

(c)  Excluded from the authorities delegated by section 802(a) of this order are authorities delegated by parts IV and V of this order, authorities in section 721 and 722 of the Act, 50 U.S.C. App. 2170 2171, and the authority with respect to fixing compensation under section 703 of the Act, 50 U.S.C. App. 2153.

Sec. 803.  Authority.  (a)  Executive Order 12919 of June 3, 1994, and sections 401(3) (4) of Executive Order 12656 of November 18, 1988, are revoked.  All other previously issued orders, regulations, rulings, certificates, directives, and other actions relating to any function affected by this order shall remain in effect except as they are inconsistent with this order or are subsequently amended or revoked under proper authority.  Nothing in this order shall affect the validity or force of anything done under previous delegations or other assignment of authority under the Act.

(b)  Nothing in this order shall affect the authorities assigned under Executive Order 11858 of May 7, 1975, as amended, except as provided in section 802 of this order.

(c)  Nothing in this order shall affect the authorities assigned under Executive Order 12472 of April 3, 1984, as amended.

Sec. 804.  General Provisions.  (a)  Nothing in this order shall be construed to impair or otherwise affect functions of the Director of OMB relating to budgetary, administrative, or legislative proposals.

(b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

BARACK OBAMA

THE WHITE HOUSE,

         March 16, 2012

 

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