By Steve Horn
Former Chesapeake Energy CEO and Founder Aubrey McClendon is back in the fracking game in Ohio's Utica Shale in a big way, receiving a permit to frack five wells from the Ohio Department of Natural Resources on Nov. 26.
"The Ohio Department of Natural Resources awarded McClendon's new company, American Energy Utica LLC, five horizontal well permits Nov. 26 that allows oil and gas exploration on the Jones property in Nottingham Township, Harrison County," a Dec. 6 article appearing in The Business Journal explained. "In October, American Energy Utica announced it has raised $1.7 billion in capital to secure new leases in the Utica shale play."
McClendon is the former CEO of fracking giant Chesapeake Energy and now the owner of American Energy Partners, whose office is located less than a mile away from Chesapeake's corporate headquarters.
The $1.7 billion McClendon has received in capital investments for the purchase of 110,000 acres worth of Utica Shale land came from the Energy & Minerals Group, First Reserve Corporation, BlackRock Inc. and Magnetar Capital.
McClendon—a central figure in Gregory Zuckerman's recent book The Frackers—is currently under investigation by the U.S. Securities and Exchange Commission. He left Chesapeake in Jan. 2013 following shareholder upset over controversial business practices.
He was given a $35 million severance package, access to the company's private jets through 2016 and a 2.5 percent stake in every well Chesapeake fracks through June 2014 as part of the Founder's Well Participation Program.
Little discussed beyond the business press, McClendon has teamed up with a prominent business partner for his new start-up: former ExxonMobil CEO Lee Raymond.
Power Mapping McClendon's New Venture
"[Lee] Raymond has emerged as a director alongside Mr. McClendon in American Energy Ohio Holdings LLC... according to [an SEC] regulatory filing," The Wall Street Journal reported in October.
The former Exxon CEO's son John Raymond is the Managing Partner, Chief Financial Officer and Chief Executive Officer of Minerals & Energy Group, currently the largest capital investor in McClendon's start-up venture and is also a partner in McClendon's new venture. Ryan Turner, Chesapeake's Stock Plan Manager has also joined the team as a partner.
"Jefferies Group LLC gave financial advice to American Energy" for the deal, according to Bloomberg—and is listed as such on American Energy Ohio Holdings LLC's SEC Form D.
Ralph Eads III—McClendon's fraternity brother at Duke University—serves as Global Head of Energy Investment Banking at Jefferies Group, Inc.
"Mr. Eads...is a prince of this world," the New York Times reported in Oct. 2012. "His financial innovations helped feed the gas drilling boom, and he has participated in $159 billion worth of oil and gas deals since 2007."
Eads maintained tight financial ties with McClendon when he was at the helm of Chesapeake Energy. The flow chart below depicts the financial and career ties binding Eads and McClendon.
High Stakes Game
In teaming up with Lee Raymond, the former CEO of ExxonMobil—notorious for its role in funding climate change denial—and his brother John, McClendon has shown he is back in Ohio ready to play ball.
But a recent Environmental Integrity Project report indicates the life-cycle climate change impacts of fracking are more severe than previously thought.
With the U.S. Navy predicting an ice-free summer by 2016 due to climate change, it's a ball game with undeniably high stakes.
Visit EcoWatch’s FRACKING and CLIMATE CHANGE pages for more related news on this topic.
Here are three new films to watch this Earth Week that will transport you from pole to pole and introduce you to the scientists and activists working to save our shared home.
1. The Year Earth Changed
Where to Watch: Apple TV+
When to Watch: From April 16
The coronavirus pandemic has brought home the stakes of humanity's impact on the environment. But the lockdowns also proved how quickly nature can recover when humans give it the space. Birds sang in empty cities, whales surfaced in Glacier Bay and capybara roamed the South American suburbs.
The Year Earth Changed captures this unique year with footage from more than 30 lockdowned cities between May 2020 to January 2021. Narrated by renowned wildlife broadcaster David Attenborough, the film explores what positive lessons we can take from the experience of a quieter, less trafficked world.
"What the film shows is that the natural world can bounce back remarkably quickly when we take a step back and reduce our impact as we did during lockdown," executive producer Alice Keens-Soper of BBC Studios Natural History Unit told EcoWatch. "If we are willing to make even small changes to our habits, the natural world can flourish. We need to learn how to co-exist with nature and understand that we are not separate from it- for example if we closed some of our beaches at for a few weeks during the turtle breeding we see that it can make a huge difference to their success. There are many ways that we can adapt our behavior to allow the natural world to thrive as it did in lockdown."
2. After Antarctica
Where to Watch: San Francisco International Film Festival
When to Watch: 12 a.m. PST April 9 to 11:59 p.m. April 18
In 1989, Will Steger led an international team of six scientists and explorers to be the first humans to cross Antarctica by dogsled. Steger and his team weren't just in it for the adventure. They also wanted to draw attention to the ways in which the climate crisis was already transforming the icy continent and to rally support for the renewal of the Antarctic Treaty, which would keep the continent safe from extractive industries.
In After Antarctica, award-winning filmmaker Tasha Van Zandt follows Steger 30 years later as he travels the Arctic this time, reflecting on his original journey and once again bringing awareness to changes in a polar landscape. The film intersperses this contemporary journey with footage from the original expedition, some of which has never been seen before.
"Will's life journey as an explorer and climate activist has led him not only to see more of the polar world than anyone else alive today, but to being an eyewitness to the changes occurring across both poles," Van Zandt told EcoWatch. "But now, these changes are happening in all of our own backyards and we have all become eyewitnesses. Through my journey with Will, I have learned that although we cannot always control change, we can change our response. I feel strongly that this is a message that resonates when we look at the current state of the world, as we each have power and control over how we choose to respond to hardships, and we all have the power to unite with others through collective action around a common goal."
After Antarctica is available to stream once you purchase a ticket to the San Francisco International Film Festival. If you miss it this weekend, it will screen again at the Minneapolis St. Paul International Film Festival from May 13 to May 23.
Tasha Van Zandt
3. The Race to Save the World
Where to Watch: Virtual Cinema
When to Watch: From Earth Day, April 22
While many films about the climate crisis seek to raise awareness about the extent of the problem, The Race to Save the World focuses on the people who are trying to stop it. The film tells the story of climate activists ranging from 15-year-old Aji to 72-year-old Miriam who are working to create a sustainable future. It follows them from the streets to the courtroom to their homes, and explores the impact of their advocacy on their personal lives and relationships.
Emmy award-winning documentary filmmaker Joe Gantz told EcoWatch that he wanted to make a film about climate change, but did not want to depress viewers with overwhelming statistics. Instead, he chose to inspire them by sharing the stories of people trying to make a difference.
"Unless millions of people take to the streets and make their voices heard for a livable future, the politicians are not going to get on board to help make the changes needed for a sustainable future," Gantz told Ecowatch. "I think that The Race To Save The World will energize and inspire people to take action so that future generations, as well as the plants, animals and ecosystems, can survive and thrive on this planet."
Check back with EcoWatch on the morning of Earth Day for a special preview of this inspiring film!
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