[Vision2020] 2-6-18: China Is Financing a Petrochemical Hub in Appalachia. Meet its Powerful Backers.

[Ted Moffett]

https://www.desmogblog.com/2018/02/06/fracking-appalachian-storage-hub-china?utm_source=dsb%20newsletterChina
Is Financing a Petrochemical Hub in Appalachia. Meet its Powerful Backers.
Steve Horn <https://www.desmogblog.com/user/steve-horn> | February 6,
2018

Over the past year, oil and gas industry plans to build a petrochemical
refining and storage hub along the Ohio River have steadily gained
traction. Proponents hope this potential hub, which would
straddle Pennsylvania, Ohio, West Virginia, and Kentucky, could someday rival
the industrial corridor
<http://www.post-gazette.com/powersource/companies/2017/06/11/Hunting-for-caverns-Appalachia-s-bid-to-rival-the-Gulf-Coast-salina-salt-cavern-ethane-propane-storage-shale/stories/201706110097>
found
along the Gulf Coast in Texas and Louisiana.

Those plans center around creating what is known as the Appalachian Storage
Hub, which received a major boost on November 9 during a trade mission to
China attended by President Donald Trump
<https://www.desmogblog.com/donald-trump> and U.S. Secretary of Commerce Wilbur
Ross <https://www.desmogblog.com/topics/wilbur-ross>. At that trade
mission, also attended by Chinese President Xi Jinping, the China Energy
Investment Corp. announced the signing of a memorandum of understanding
<http://news.westvirginia.gov/china-energy-and-west-virginia-announce-framework-to-invest-83-billion-in-shale-gas-and-chemical-manufacturing-projects>
(MOU) to invest $83.7 billion into the planned storage hub over 20 years.
For comparison, West Virginia's gross domestic product
<https://www.bea.gov/regional/bearfacts/pdf.cfm?fips=54000&areatype=STATE&geotype=3>
(GDP) in 2016 was $72.9 billion.

Though called the Appalachian Storage Hub as a broad-sweeping term, in
practice the hub could encompass natural gas liquids storage, a market
trading index center, a key pipeline feeding epicenter, and a petrochemical
refinery row. Its prospective development has been spurred by the current
construction
<http://www.timesonline.com/news/20171108/shell-officially-starts-construction-on-6-billion-ethane-cracker-plant>
of a $6 billion petrochemical refining facility in Pennsylvania owned by
Shell Oil
<https://www.desmogblog.com/2017/02/14/chemical-plant-boom-spurred-fracking-smog-plastic-glut-risks-worker-heath-report-warns>
.

The proposed hub has come under fire <https://ohvec.org/petrochem-horror/>
from grassroots groups <https://nopetropa.wordpress.com/about/>. But this
proposal also has a powerful set of backers, including West Virginia's
five-member congressional delegation, the state's Governor and Secretary of
Commerce, West Virginia University, the chemical industry's trade
association, Shell Oil, and the Trump administration, among others.

Detractors of the planned petrochemical hub believe that its construction
would buoy the oil and gas industry in its efforts to further develop
drilling and hydraulic fracturing (“fracking”)
<https://www.desmogblog.com/fracking-the-future> projects in Pennsylvania's
Marcellus Shale and Ohio's Utica Shale basins.

A “major concern we have about the whole complex is that it will encourage
a second or third wave of gas fracking in our region, from the Marcellus,
the Utica, and the Rogersville field, which is a much deeper layer of shale
gas and oil and has been recently tested and a few commercial wells have
been built into it,” Robin Blakeman, project coordinator with the Ohio
Valley Environmental Coalition, recently told the radio show Between the
Lines <http://www.btlonline.org/2018/seg/180209bf-btl-blakeman.html>. “It’s
not commercially viable yet, but we think this complex will make it
commercially viable.”

However, those backing the plan say the hub could lead to much-needed job
creation, positioning the multi-state region as the oil and gas industry's
version of Silicon Valley
<https://www.energyindepth.org/national/could-appalachian-basin-be-next-silicon-valley-american-energy-infrastructure/>
and as a potential “field of dreams
<https://www.energyindepth.org/national/new-report-highlights-an-appalachia-manufacturing-field-of-dreams-powered-by-shale/>
.”

“This project will not only transform the region, it will impact the entire
country by enhancing America’s energy dominance,” said U.S. Rep. David
McKinley (R-WV)
<https://www.capito.senate.gov/news/in-the-news/gas-storage-hub-project-clears-first-hurdle-for-big-loan>.
“The storage hub has the potential to create thousands of jobs, attract
billions in investment, invigorate Appalachia’s economy, and establish our
area as a force in the petrochemical industry.”
Appalachia Development Group

While the hub itself, when fully developed, would likely involve a whole
host of companies, its concept and initial marketing phase has been led by
a corporation named the Appalachia Development Group
<http://appalachiadevgroup.com/> (ADG), which is owned by
<http://governor.wv.gov/News/press-releases/2018/Pages/Gov.-Justice-Says-Expansion-of-Petrochemical-Industry-in-West-Virginia-Continues-To-Move-Forward-With-U.S.-DOE-Announcement.aspx>
the
Mid-Atlantic Technology, Research and Innovation Center (MATRIC) and the West
Virginia University Innovation Corporation <https://innovation.wvu.edu/>.
The joint venture registered its website
<https://www.networksolutions.com/whois/results.jsp?domain=appalachiadevgroup.com>
on November 10, one day after West Virginia signed the MOU with the China
Energy Investment Corp.

On January 3, ADG received an invitation from the U.S. Department of Energy
to apply for a $1.9 billion loan guarantee
<https://www.prnewswire.com/news-releases/adg-invited-to-submit-part-ii-application-for-19-billion-in-loan-guarantees-under-does-title-xvii-loan-guarantee-program-300577137.html>
created
by the Energy Policy Act of 2005
<https://energy.gov/lpo/services/section-1703-loan-program/title-xvii>.
(That law is perhaps best recognized for creating what is known as the
“Halliburton
Loophole
<https://www.earthworksaction.org/issues/detail/inadequate_regulation_of_hydraulic_fracturing#.WniF95M-et8>,”
which exempts the oil and gas industry from U.S. Environmental Protection
Agency enforcement of the Safe Drinking Water Act during horizontal
drilling and fracking operations.)

In a press release
<https://www.prnewswire.com/news-releases/adg-invited-to-submit-part-ii-application-for-19-billion-in-loan-guarantees-under-does-title-xvii-loan-guarantee-program-300577137.html>
announcing the DOE invite, ADG also said the hub could lead to the creation
of 100,000 jobs, and received praise from U.S. Rep. McKinley, U.S. Sen. Joe
Manchin (D-WV), and U.S. Sen. Shelley Moore Capito (R-WV).

“I am very excited that the Department of Energy is moving forward with the
Appalachia Development Group in its efforts to secure a loan to develop the
Appalachian Storage Hub. I have long said that the Appalachian Storage Hub
is a vital project that will help us capitalize on our state and region's
abundant natural resources, growing infrastructure, and innovative spirit,”
Sen. Manchin said in the statement. “I look forward to working with the
Department of Energy and the Appalachian Development Group to make the
Appalachian Storage Hub a reality.”

According to corporate registration forms reviewed by DeSmog, ADG incorporated
several businesses in West Virginia covering many facets of the gas supply
chain just two weeks after the Energy Department's loan guarantee
announcement. The incorporations serve as something of a roadmap for what
the visionaries behind the hub have planned in the area.

Names of the companies include Appalachia Development Group Chemical LLC
<http://apps.sos.wv.gov/business/corporations/organization.aspx?org=374571>
, Appalachia Development Group Pipeline LLC
<http://apps.sos.wv.gov/business/corporations/organization.aspx?org=374572>
, Appalachia Development Group Trading LLC
<http://apps.sos.wv.gov/business/corporations/organization.aspx?org=374574>,
and
Appalachia Development Group Storage LLC
<http://apps.sos.wv.gov/business/corporations/organization.aspx?org=374573>.
All of those LLCs are incorporated in Delaware, a state which serves as a
corporate tax haven
<https://www.nytimes.com/2012/07/01/business/how-delaware-thrives-as-a-corporate-tax-haven.html>
in the U.S.


*Credit: West Virginia Secretary of State*

The trading business appears to be an attempt to create an industry hub
rivaling Mont Belvieu in Texas
<http://www.ogj.com/articles/print/volume-112/issue-6/speical-report-worldwide-gas-processing/what-s-at-mont-belvieu.html>
and akin to the oil industry's hub in Cushing, Oklahoma
<https://blog.spaceknow.com/cushing/>, which serve as a pricing index for
natural gas liquids and oil market traders, respectively. The Appalachian
trading post would be focused on the natural gas liquids trade, according
to congressional testimony
<https://www.energy.senate.gov/public/index.cfm/files/serve?File_id=580501C9-B70D-4F07-9DE1-1E3A09CDFFCC>
given at a hearing
<https://www.gpo.gov/fdsys/pkg/CHRG-114shrg21998/pdf/CHRG-114shrg21998.pdf>
by West Virginia University Professor Brian Anderson
<http://research.wvu.edu/about/leadership/brian-j-anderson> in August 2016
and a presentation
<http://iogcc.ok.gov/Websites/iogcc/images/2017_Pittsburgh_Presentations/EnergyStorageHub-Anderson-2017.pdf>
he gave in October 2017.

The Appalachia Development Group told the outlet Natural Gas Intelligence
that it hopes to raise $3.3 billion
<http://www.naturalgasintel.com/articles/print/112975-appalachian-ngl-hub-proposal-clears-hurdle-in-hunt-for-3b-plus-in-financing>
in capital for the project, or an additional $1.4 billion if it
successfully lands the loan guarantee from the Energy Department.
West Virginia University Incubator

At the center of pushing the ball forward on the hub has been West Virginia
University (WVU), which has served as a key incubator for the Appalachia
Development Group and its plans to create a major petrochemical hub in the
region. Professor Anderson, listed as one of the principals
<http://appalachiadevgroup.com/> on the ADG website, has led that charge at
WVU.

While the WVU Innovation Corporation is part of the Appalachia Development
Group joint venture, Anderson's university research has also helped boost
the project's profile in the media. Anderson, who serves as the General
Electric Plastics Materials Engineering Professor in chemical engineering
at WVU, also directs the WVU Energy Institute.

After the announcement that the Appalachia Development Group had entered
into an $83.7 billion MOU with the China Energy Investment Corp., WVU put
out a press release quoting Anderson and boasting about its role
<https://aongrc.nrcce.wvu.edu/news/2017/11/22/hub-report-integral-to-83-7-billion-china-energy-investment-in-west-virginia>
in
making such an investment possible.

“This is a game-changer for the state of West Virginia,” Anderson stated in
the release. “By collaborating with global companies like China Energy to
invest in our state through joint research, business development, and
demonstration opportunities, we begin to move West Virginia forward by
expanding and diversifying our state into newfound prosperity and success.”

Anderson has also spoken at a slew of industry events, making the case for
the natural gas liquids storage hub. He spoke in front of
<http://iogcc.ok.gov/Websites/iogcc/images/2017_Pittsburgh_Presentations/EnergyStorageHub-Anderson-2017.pdf>
the Interstate Oil and Gas Compact Commission at its annual meeting in
October, at a June 2017 Appalachian Storage Hub Conference
<https://www.appastorage.com/> event held in Pennsylvania, and at the
January 2018 winter meeting of the West Virginia Independent Oil and Gas
Association (WVIOGA). At this latest event, Anderson spoke about the hub
<https://iogawv.com/wp-content/uploads/2018/01/2018-winter-meeting-agenda.pdf>
alongside Rep. McKinley and ADG CEO Steve Hedrick.

In turn, the petrochemical industry has shown its appreciation for
Anderson's involvement.

In a May 2017 report titled “The Potential Economic Benefits of an
Appalachian Petrochemical Industry
<https://www.americanchemistry.com/Appalachian-Petrochem-Study/>,” the
American Chemistry Council thanked Anderson for his support in preparing
the paper. Its May 18 release came just nine days after the May 9
introduction of the Appalachian Ethane Storage Hub Study Act of 2017
<https://www.congress.gov/bill/115th-congress/senate-bill/1075>, a bill
supported by every
<https://www.congress.gov/bill/115th-congress/senate-bill/1075/cosponsors>
member
<https://www.congress.gov/bill/115th-congress/house-bill/2568/cosponsors?q=%7B%22search%22%3A%5B%22%5C%22ethane+storage+hub%5C%22%22%5D%7D&r=1>
of West Virginia's congressional delegation.

American Chemistry Council members
<https://www.americanchemistry.com/Membership/MemberCompanies/> include
Shell, ExxonMobil, Chevron, Saudi Basic Industries Corporation (SABIC), Dow
Chemical, Monsanto, and other major corporations.

WVU also houses the Appalachian Oil and Natural Gas Research Consortium
<http://www.nrcce.wvu.edu/programs/aongrc>, which in July 2017
released a report
on the geologic potential
<https://aongrc.nrcce.wvu.edu/files/d/b0b6b967-5911-4bbe-957f-0b149851224f/ngls-study-report-ilovepdf-compressed.pdf>
for creating a storage hub in West Virginia. According to its
acknowledgments section, that report was funded by companies such as
Chevron, Dominion Energy, EQT Resources, Noble Energy, ExxonMobil
subsidiary XTO Energy, and the West Virginia Oil & Natural Gas Association (
WVONGA).

Though Anderson did not travel to China to sign the MOU, he did speak
<https://twitter.com/WVUEnergy/status/930120261621383168> at a press event
<https://twitter.com/WVGovernor/status/930167882184646656> convened by West
Virginia's Republican Governor Jim Justice just days later to discuss the
deal and its implications for the state. Anderson did not respond to a
request for comment for this story.
Thrasher's Dual Role

Another key actor in implementing the West Virginia and China Energy MOU
was the state's Secretary of Commerce Woody Thrasher, who served as the
state's official representative at the signing in China.

But before Governor Justice named Thrasher as commerce secretary, he was
president of his family business, The Thrasher Group
<http://thethrashergroup.com/who-we-are/our-story/>. Co-founded by Woody
and his father Henry, the firm provides architectural, engineering,
and construction
services for oil and gas field and pipeline projects
<http://thethrashergroup.com/what-we-do/energy/>, with offices in West
Virginia, Ohio, Pennsylvania, and Kentucky — all hub states.

“The Mid-Atlantic region of the U.S. offers a wealth of resources important
to America’s energy independence: natural gas, coal, and wind energy,” The
Thrasher Group details on its website
<http://thethrashergroup.com/what-we-do/energy/>. “The development of these
resources, including the emerging Marcellus Shale play, is particularly
important. With five offices located in the heart of this area, we’re ready
to mobilize our various energy development services to meet your needs
throughout this major production area.”

The Thrasher Group has repeatedly shown interest in the business side of
the Appalachian Storage Hub. For example, Andy Kincell
<https://www.linkedin.com/in/andy-kincell-b1a7a660/>, Thrasher's head of
business development and construction services, also attended the June 2017
Appalachian Storage Hub conference
<https://twitter.com/ThrasherEng/status/875370481821548546> where WVU's
Brian Anderson gave a presentation, according to both his Twitter account
and Thrasher's. Kincell also attended
<https://twitter.com/ThrasherEng/status/902582674598096900> another event
about the hub, hosted by WVU in August 2017
<https://www.nrcce.wvu.edu/news/2017/08/03/workshop-registration-open-appalachian-storage-hub-for-natural-gas-liquids-aug-29>,
again according to both of their Twitter accounts.

In addition, The Thrasher Group will play host to the Emerging
Opportunities Ohio River Valley Conference
<http://emergingopportunitiesorv.com/#about> held in Wheeling,
West Virginia.

“The Emerging Opportunities Ohio River Valley Conference will provide a
comprehensive view of the once-in-a-generation industrial and commercial
development,” details the conference's website
<http://emergingopportunitiesorv.com/#about>. “In addition to development
of cracker and petrochemical plants, experts predict the overall
development will change the economic landscape.”

Appalachia Development Group CEO Steve Hedrick will present at the
conference, as will WVU's Anderson and representatives from both
the American Chemistry Council and the American Petroleum Institute
<https://www.desmogblog.com/american-petroleum-institute>. Thrasher Group
CEO Chad Riley will offer both introductory and closing remarks for the day.

Riley and Kincell did not respond to a request for comment. Hedrick and
Appalachia Development Group's CFO and COO, Joe Bozada, also did not
respond to a request for comment for this story.

To date, the exact details of the MOU signed between the China Energy
Investment Corp. and West Virginia have yet to be made public
<http://wvpublic.org/post/details-scant-about-84-billion-china-energy-investment-deal-west-virginia#stream/0>
and
DeSmog could not track down a copy of the MOU online. Thrasher told the
West Virginia Senate and House of Delegates’ Joint Committees on Natural
Gas Development and Energy on January 9 that he expects construction of
some assets within the petrochemical storage hub to begin as soon as
this year.

Though Woody Thrasher has signed a blind trust legal agreement
<https://s3.amazonaws.com/wvmetro-media/uploads/2017/01/Blind-Trust-Agreement-of-H.-Wood-Thrasher-submitted-to-Commission.pdf?x43308>
handing over day-to-day financial management of Thrasher Group and its
subsidiaries, West Virginia's commerce secretary has not foregone his
ownership stake
<https://www.wvgazettemail.com/business/potential-conflicts-also-issue-for-new-wv-commerce-secretary/article_dfaf9bea-0986-5e7b-9e57-2e6419022d0d.html>
in the company. According to West Virginia MetroNews, Thrasher still
retains a 70 percent stake in The Thrasher Group
<http://wvmetronews.com/2017/01/30/billionaire-gov-jim-justice-says-hes-pursuing-blind-trust-commerce-secretary-thrasher-files-one/>
and the blind trust agreement does not apply to any of his family or his
legal dependents.

“Handing over day-to-day operations of a company that is directly affected
by the official’s role or decision making isn’t effective,” Brendan
Fischer, a lawyer for the Campaign Legal Center, recently told the
Charleston Gazette-Mail. “If a public official maintains a financial stake
in a company, the potential for a conflict remains.”

In addition, one of the blind trustees for the agreement, Marcia Broughton
<http://www.jacksonkelly.com/attorney_bio.aspx?a=10573#>, is an attorney
for Jackson Kelly, a firm which often represents oil and gas industry
clients. Broughton is listed as one of the firm's oil and gas industry
attorneys <http://www.jacksonkelly.com/is_view.aspx?is=116&state=industry>
on the Jackson Kelly website and the firm is listed as a financial supporter
<http://www.matricinnovates.com/development-chemical-pilot-plants-chemical-process-scale-up/friends-of-matric/>
on the website of MATRIC, one of ADG's owners.

Appalachian Development Group attorney and principal Kathy Beckett
<http://www.steptoe-johnson.com/kathy.beckett/pdf> is also a former Jackson
Kelly attorney, where she worked from 1997-2013, before moving to the law
firm Steptoe & Johnson. Beckett, who also sits on the Board of Directors
<https://www.uschamber.com/about/board-directors> for the U.S. Chamber of
Commerce, did not respond to a request for comment for this story.

Thrasher also decided to remain
<https://wvutoday.wvu.edu/stories/2016/12/30/thrasher-to-remain-chair-of-wvu-alumni-association-while-wv-secretary-of-commerce>
chairman of the board of directors for the WVU Alumni Association for the
first half of 2017, while simultaneously serving as Secretary of Commerce,
even as WVU has served as a key vehicle behind the hub's creation. He now
serves as “Immediate Past Chairman,” a one-year ex-officio and non-voting
role which allows him to sit on both the executive and governance
committees of the alumni associaton, according to the association's
constitution and bylaws
<https://www.alumni.wvu.edu/files/d/fb95fea9-fa6d-494b-acd8-4533f885e965/wvualumnileadershandbook.pdf>
.

In discussing the trust agreement with the press, Governor Justice actually
referred to Thrasher's agreement not as a blind trust, but as one put “under
the control of trusted colleagues
<https://governor.wv.gov/News/press-releases/2016/Pages/Justice-Names-Woody-Thrasher-Secretary-of-Commerce.aspx>.”
Spokespersons for both Thrasher and Justice did not respond to requests for
comment from DeSmog.
Congressional Bills, Lobbying Revolving Door

The West Virginia congressional delegation, particularly Sens. Manchin and
Capito and Rep. McKinley, has led the push for the Appalachian Storage Hub
on Capitol Hill. Beyond the Appalachian Ethane Storage Hub Study Act of
2017, members of the delegation introduced other bills to usher in the hub
in 2017, including the Appalachian Energy and Manufacturing Infrastructure
Revitalization Act
<https://www.congress.gov/bill/115th-congress/senate-bill/1340/text?format=txt>
and the Capitalizing on American Storage Potential Act
<https://www.congress.gov/bill/115th-congress/senate-bill/1337/cosponsors?q=%7B%22search%22%3A%5B%22%5C%22American+Storage+Potential%5C%22%22%5D%7D&r=2>
.

The Infrastructure Revitalization Act calls for “an expedited permitting
process for critical energy infrastructure projects relating to the
establishment of a regional energy hub in Appalachia, and for other
purposes.” Meanwhile, the Capitalizing on American Storage Potential Act
would make sure the Department of Energy's loan guarantee program would
also apply to projects such as the Appalachian Storage Hub.

Various industry players, such as the American Chemistry Council, the National
Propane Gas Association
<http://disclosures.house.gov/ld/ldxmlrelease/2017/Q4/300937889.xml>,
the National
Association of Manufacturers
<http://disclosures.house.gov/ld/ldxmlrelease/2017/Q4/300934867.xml>, and
Shell Oil have all lobbied for some or all of these bills. All of the
entities lobbying for the hub's creation have benefitted in some way from
government-industry revolving door relationships, according to a
review by Desmog.

As a case in point, the American Chemistry Council deployed a team of
lobbyists
<http://disclosures.house.gov/ld/ldxmlrelease/2017/Q4/300929834.xml> to
advocate for all three of the bills, according to its federal lobbying
disclosure forms. Those lobbyists included Bryan Zumwalt
<https://www.opensecrets.org/revolving/rev_summary.php?id=80131>, who
formerly served as chief legal counsel for the Senate Environment and
Public Works Committee under the chairmanship of U.S. Sen. David Vitter (R-
LA) and Calvin Dooley <https://www.americanchemistry.com/dooley/>, formerly
a Democratic U.S. Representative from California who now serves as
president and CEO of the chemistry council.

Shell Oil, which lobbied
<http://disclosures.house.gov/ld/ldxmlrelease/2017/Q2/300889414.xml> for
the Appalachian Ethane Storage Hub Study Act, also has notable
revolving-door connections on its lobbying team. Patricia Villarreal Tamez
<https://www.linkedin.com/in/patricia-villarreal-tamez-3008703/>, prior to
landing the lobbying job with Shell, worked as executive director of the
Congressional Hispanic Caucus, according to her LinkedIn profile.
Further, Marnie
Funk <https://www.linkedin.com/in/marnie-funk-0a90367/> — a lobbyist on
Shell's team pushing for the Appalachian Ethane Storage Hub Study Act —
formerly served as communications director for the Senate Energy and
Natural Resources Committee when it was run by U.S. Rep. Pete Domenici (R-NM
).

The revolving door and campaign finance contributions may have buttressed
prospects for the hub on the congressional side of things as well.

For example, the American Chemistry Council has donated $10,000 to Sen.
Manchin for his 2018 re-election campaign, one of its largest 2018 election
cycle contributions
<https://www.opensecrets.org/orgs/toprecips.php?id=D000000365&cycle=2018>
to-date. The council cut Manchin a $5,000 campaign contribution check
<http://docquery.fec.gov/cgi-bin/fecimg/?201706199063504734> on May 10, the
day after he co-sponsored the Appalachian Ethane Storage Hub Study Act,
according to U.S. Federal Elections Commission filings reviewed by DeSmog.

[image: Joe Manchin $5,000 American Chemistry Council Donation]
<https://www.desmogblog.com/sites/beta.desmogblog.com/files/Joe%20Manchin%20%245%2C000%20Donation%20American%20Chemistry%20Council.pdf>

*Credit: U.S. Federal Elections Commission
<https://www.desmogblog.com/sites/beta.desmogblog.com/files/Joe%20Manchin%20%245%2C000%20Donation%20American%20Chemistry%20Council.pdf>*

According to the research database Legistorm, Manchin's senior adviser
Sarah Venuto Perez formerly served as director of federal affairs for
America's Natural Gas Alliance, which has since merged with
<http://www.api.org/news-policy-and-issues/news/2015/11/18/api-and-anga-two-energy-trades-to-combin>
the
American Petroleum Institute.

In September of last year, according to comments made by Manchin on the
sidelines of a forum hosted by the Bipartisan Policy Center, the senator
had dinner <https://www.eenews.net/eedaily/2017/09/14/stories/1060060619>
with President Trump and his chief-of-staff John Kelly. At that dinner,
Manchin pitched the idea of the Appalachian petrochemical hub to Trump and
Kelly, according to EnergyWire.

“He was delighted to hear about it,” Manchin told EnergyWire. “I gave it to
[chief of staff] Gen. [John] Kelly. He's going to look at it and see if he
can get this thing moving,”

Manchin's office did not respond to a request for comment about whether the
$10,000 donation from the American Chemistry Council and Venuto Perez's
past industry affiliation have influenced the senator's policy stance on
the hub.

Capito serves as another case study, with her former senior legislative
assistant on oil, gas, and coal policy issues, Virginia Hamisevicz, now
working as vice president of governmental affairs for the National
Association of Manufacturers.

During her successful first attempt at running for the U.S. Senate, Capito
received $162,000
<https://www.opensecrets.org/members-of-congress/pacs?cid=N00009771&cycle=2014&seclong=Energy+%26+Natural+Resources&sector=E>
in campaign contributions from the oil and gas industry in 2014. In
addition, according to forms reviewed by DeSmog, Capito's husband has
$15,000-$50,000
worth of stock investments
<https://www.desmogblog.com/sites/beta.desmogblog.com/files/Capito%20Financial%20Disclosure%20Forms.pdf>
in Shell Oil, which already has a major petrochemical investment in
the area.

Beyond campaign contributions, the petrochemical industry has also heaped
praise on Manchin and Capito for their policy efforts.

“We applaud Senators Capito and Manchin for their commitment to realizing
the exciting opportunities afforded by an energy storage hub,” said the
American Chemistry Council in a June 2017 press release
<https://www.americanchemistry.com/Media/PressReleasesTranscripts/RelatedPDF/ACC-Welcomes-Legislation-to-Advance-Americas-Energy-Storage-Potential.pdf>.
“The Capitalizing American Storage Potential (CASP) Act will help expedite
the development of new infrastructure in hydrocarbon-rich areas of the
country and, in turn, spur new manufacturing investment and jobs.”
'Nightmare Waiting to Happen'

In a January 4 blog post <https://ohvec.org/petrochem-horror/>, the Ohio
Valley Environmental Coalition spelled out how the Appalachian Storage
Hub will likely incentivize more fracking in the region.

“More fracking for methane leads to more gas liquids used by the
petrochemical companies, the more gas liquids petrochemical companies use,
the more fracking will happen,” wrote the group. “What that means is our
region would face the combined threats of more fracking and the
petrochemical industries.”

In addition to the public health and pollution battles being fought in the
Gulf's existing petrochemical corridor (also known as “Cancer Alley”
<https://www.desmogblog.com/louisiana-cancer-alley-communities-gulf-petrochemical-pollution>),
the Ohio Valley Environmental Coalition also pointed to Appalachia's past
experiences with the coal industry and decried a potential repeat
of history.

“Haven’t we learned any lesson from what the coal industry has done, where
the majority of what is produced here is exported elsewhere, and the
profits made by companies from outside the region?” the group asked. “This
hub of horrors is a nightmare waiting to happen … The people deserve better
than false economic hope and toxic neighbors.”

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Vision2020 Post: Ted Moffett
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