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Economy
Louisiana's economy has revolved around natural resource extraction
and processing, particularly agriculture, forestry, fisheries, and
oil and gas. As an agricultural center, Louisiana became involved
in the global economy in the nineteenth century. White Southerners
were among the world's leaders in per capita income in the 1850s,
largely as a result of cotton. Southern agriculture has been susceptible
to international demand, federal trade and immigration policies,
attacks on farm subsidies, and meteorological and ecological disasters.
During WWII, sugar production in Indonesia and the Philippines was
curtailed, sugar beet production in Europe was disrupted, and imports
from India, Cuba, and Puerto Rico were jeopardized by hostile seas.
Florida and Louisiana remained as the most secure cane growing areas
within the continental United States. The commodity was in critical
demand, not only for home consumption but as an ingredient in the
manufacture of many chemicals that were then made into medicines,
plastics, vitamins, drugs, and explosives, items needed for war.
WWII also provided impetus for what was to become
the region's dominant industry - offshore oil and gas development.
Southern Louisiana has been attractive to business and industry
because of access to the Mississippi River, globally important
ports, an extensive pipeline network, and the oil and gas production
just off the coast. Louisiana ranks third within the U.S. in terms
of both crude oil production and petrol production and refinement.
It ranks second in terms of producing petrochemicals and natural
gas.
The presence of the oil and gas industry, and
the revenues associated with it, influenced the structure of the
Louisiana economy. From the 1950s to the 1980s, the oil industry
expanded, perfecting its offshore platform construction and benefiting
from the return of World War II soldiers eager to find work and
accustomed to working under harsh conditions. The drilling companies
that emerged as major employers in the area included Gulf, Humble,
Shell, and Texaco. Their presence prompted a boom in economic
activity and the establishment of numerous related companies devoted
to commercial oilfield diving, platform construction and tugboat
driving, among others. At the same time, state coffers became
increasingly dependent on petroleum revenues.
Since the 1980s, the oil and gas industries
have been subject to a series of downturns affecting price and
demand. As a result, workers' confidence that the oil and gas
industry is a reliable source of money and jobs in the southern
Louisiana has waned. The influx of workers that the offshore oil
industry attracted from neighboring states in the early twentieth
century contrasts with the current trend of outmigration
of Louisianans looking for employment and education opportunities,
as well as a higher quality of life. The downturns have also led
to several critical
analyses of the state's economy and efforts
to diversify the economy and strengthen alternative economic
sectors.
Historically, the commercial fishing business
helped to balance south Louisiana's economy and served as a buffer
against cycles in the oil industry. Federal regulation, foreign
imports, and overfishing have impacted this traditional economic
activity.
Louisiana's approach to economic development
has come at a significant cost. Linked to natural resource extraction,
manufacturing plants that offered relatively higher paying jobs,
especially in rural areas of the state, were attracted to low
land costs and lower wage rates. Though the jobs looked good compared
to existing employment opportunities, the companies that owned
the plants maintained their headquarters, research units, and
highest paying positions elsewhere so that much of the wealth
generated by natural resource extractive industries and manufacturing
facilities ended up outside the state. To make matter worse, Louisiana's
Industrial Tax Exemption Program has historically provided the
greatest subsidies to corporations that create few new jobs. The
Louisiana Environmental Action Network reports that in 1995 the
Louisiana
Department of Economic Development found that only 10 percent
of the state's corporate tax breaks generated permanent jobs.
Annually, approximately $350 million that would have been invested
in local schools, roads, and other services had been funneled
into industrial tax exemptions. In 1995, for example, the exemptions
removed $169 million from school programs.
In the 21st century, manufacturing employment
and payrolls, which account for almost 10 percent of the jobs
in the state, are dominated by oil and gas and related industries
and transportation equipment. : Chemical and allied products and
petroleum refining account for almost 24 percent of manufacturing
employment and 35.3 percent of payroll (compared to 6.1 and 8.1
percent, respectively, for the nation as a whole). Transportation
equipment (primarily shipbuilding) accounts for an additional
14 percent. Payroll from mining-related activities accounts for
4.7 percent of total payroll in the state, a figure that is eight
times the national average. Petroleum products, petrochemical
manufacturing, and oil and gas mining output together account
for 19.4 percent of Louisiana's total gross state product; in
comparison, nationally the three account for 3.1 percent of gross
national product (GNP). Source: Louisiana: Vision
2020 - 2003 Update. Services account for almost 30 percent
of jobs in Louisiana, and while some of these service jobs are
high paying jobs in manufacturing and professional services, one
third of them are lower paying jobs associated with food and accommodation
industries.
Several efforts to address Louisiana's economic
woes have been undertaken in recent decades. The Louisiana Economic
Development Council (LAEDC) was created by the Legislature in
the First Extraordinary Session of 1996 (Act No. 20 H.B. No. 26).
Originally a part of the Department of Economic Development, in
2001 the Council was placed under the Office of the Governor.
Members of the Council include the Governor, Secretary of Economic
Development and 17 other members representing business (manufacturing,
mining, construction, banking, venture capital, and tourism),
economic development (with representatives from the five largest
urban areas and a rural area), and education. The Council developed
Vision 2020 - a comprehensive approach to education, economy,
and quality of life - established benchmarks in order to monitor
how the state is progressing toward its goals, and prepares an
annual report to the Governor, Legislature, and people of the
state. A key feature of Vision
2020 is the identification and support of cluster development
for eight existing and seven emerging clusters. The eight clusters
of traditional industries included: oil, gas and energy technologies;
petrochemicals; shipbuilding and other durable goods; tourism;
transportation; health care; agriculture and food products; and
wood, lumber, and paper. Emerging clusters, for which Louisiana
has a small but growing base of firms and/or a strong university
research base in a high growth industry, include: information
technologies, life sciences, environmental technologies, food
technologies, advanced materials, micro- & nano-technologies,
and entertainment.
"Selling the South" was a popular
activity among Southern civic leaders at the end of the Civil
War when cities cast about for Northern and foreign investors
to help rebuild their stricken economies. Though these investments
returned some dividends, mainly to locals in an economic and political
position to benefit from them, outside investment often did not
raise economic standards or educational levels appreciably, and
a good deal of the profits drained out of the region.
Part of the reason for the relatively
low rate of return on outside investment was due to what civic
leaders "sold" to entrepreneurs. Among other incentives,
they advertised cheap labor, low taxes, and minimum regulations.
By the 1930s, the Boards of Trade - and their successors, the
Chambers of Commerce - had efficiently organized recruitment committees
and prepared sales pitches for potential investors. During this
decade, industrial recruitment became an organized state activity
for the first time, though the "selling" points remained
pretty much the same.
Subsidies to railroads and industrial expansion
date back to the 19th century but the early efforts were not state
sanctioned and did not involve the use of municipal bonds to finance
plant construction. Governor Hugh Lawson White of Mississippi
is often cited as having changed the rules of the game and inaugurated
the south's modern era of industrialization with his 1936 effort
to help his Depression-ravaged state and plan to "Balance
Agriculture with Industry" (BAWI): a program of state
and local subsidization of industry.
Income Inequality
Despite the presence of the offshore oil and gas industry and
the critical role in U.S. commerce played by New Orleans for several
hundred years, the state hovers at the bottom of the fifty states
in most major social indicators. According to the U.S. Department
of Commerce, Bureau of Economic Analysis, in 2001 Louisiana ranked
45th
among the states with per capita personal income of $24,535,
compared to $30,472 for the nation. According to the March 2002
Current Population
Survey in 2001, 16.2 percent of Louisiana's citizens were
living below the poverty level. In 2003 U.S.
Census Bureau report, based on a three-year average for 2000-2002,
Louisiana ranked fourth in the U.S. for the percentage of people
in poverty (17.0%), following only Arkansas, New Mexico, and Mississippi.
Forty-seven percent of Louisiana's families with children qualify
as low
income, compared to a national average of 34 percent. In overall
health indicators, Louisiana ranked last among the 50 states
in 2002 and 49th in 2003.
The brunt of income, education and health care
inequality within the state is shouldered by Louisiana's ethnic
and racial minorities, especially African-Americans. Thirty-three
percent of African-American households in Louisiana live below
the poverty line, compared with eight percent of white Louisiana
households and 21 percent of African-American households nationally.
Roughly 15 percent of Asian-American and Hispanic households in
Louisiana live below the poverty-line. The relation between income
disparity and race is further intensified in New Orleans. A quarter
of New Orleans households live below the poverty line; 90 percent
of those households are African-American. The Louisiana Department
of Economic Development publishes economic
indicators by parish.]
Education
Economic indicators are closely linked to education. In southern
Louisiana, for many generations in groups such as the Acadians
and the Isleños, schooling was not perceived as necessary,
and few southern Louisiana residents participated in formal education
beyond the elementary grades. The penchant toward practical knowledge
and its transmission via mentoring, coupled with a general trust
of outsiders, led many parents to keep their children out of schools.
Into the 1960s, segregation and lack of schools prevented blacks
and Native Americans from receiving a secondary education. Compared
to both Louisiana white residents and U.S. blacks, for example,
fewer African-Americans in Louisiana have continued education
beyond high school. Though initially the presence of relatively
high-paying jobs that did not require any formal education contributed
to high dropout rates, by the 1970s the growing labor needs of
the oil and gas industry hastened the push for schooling and,
with it, changes in local language and culture. Still, the early
oil and gas industry did not remedy low
levels of educational attainment among local residents.
According to the U.S. Census 2000, Louisiana
has among the lowest levels of educational
attainment in the nation; 25
percent of all adults age 25 and over lack a high school education
(they didn't graduate or receive some kind of equivalency). Of
those adults, 20 percent of white adults, 37 percent of African
American adults, 30 percent of Hispanic adults, and 33 percent
of Asian American adults age 25 and above lack a high school education.
Rural residents show lower rates of high school completion; 32.6
percent of rural Louisiana adults and 22.7 percent of urban adults
have not completed high school (see Louisiana
State Facts for more).
Efforts to address educational disparities are
coupled with economic goals in the state's Louisiana: Vision
2020 program. State policies encourage all students to go
to college, and college preparatory curricula have been emphasized
in K-12 schools, resulting in a rise in school graduation rates.
The Louisiana Tuition Opportunity Program for Students (TOPS)
is a comprehensive program of state scholarships the guarantees
funding for college for students who meet minimum standards.
"Louisiana
is number one in unemployment and last in education. One reason
why is because of the industry we have down here. It used to be
so easy. Take myself. I dropped out of school at 16 years old
and went to work on a supply boat. In two weeks I was told I would
be the engineer. People on the boat helped me learn. By 19, I
was the captain of a 100 ton vessel, only because that was all
I could get for the age I was [the size of ship for which you
can get a license depends on a mariner's age and sea time]. By
21, I was the captain of a 500 ton vessel, for anything above
100 tons up to 500. By 23, I was the captain of a 1,600 ton. To
get the licenses, I had to take tests. Nothing that I learned
in a school made me a captain. I got hands on training. That's
what it goes back to, as far as people's ability, and education
is in the background¼ Years ago people were running boats
down here. They hunted, fished, trapped. The guys already knew
how to run the boats. The oil companies said, "How about
bringing me some supplies out to the rig?" and on like that.
That went on for awhile. Then the Coast Guard decided they had
to be licensed."
Offshore Supply Boat Captain from Lafourche Parish
"The
negative effect of the oil industry was that young men could go
out and get jobs. Their interest in education was minimal. We
had a tremendous drop out rate. Kids would get out and go to work.
They also worked in agriculture and shrimping and fishing. Not
just oil. It was a community type attitude that caused this problem.
We operate now with 45 to 55 percent of the people without a high
school diploma. That is double what it should be for this area."
Black Educator from Terrebonne Parish
Environmental Problems
Early attempts to address environmental
problems in Louisiana focused on natural resource issues. Though
the first conservation law in Louisiana was passed in 1857, it
was not until the end of the century, when intensive exploitation
of Louisiana's forests, fishes, minerals, and furbearers was underway,
that significant attention was paid to ecological concerns. Early
in the 20th century, efforts were made to conserve game; two examples
are a 1902 commission to manage and protect oysters and a 1908
commission to manage game birds and fish.
By the 20th century, the most pressing
environmental problems include large-scale coastal erosion and
contamination from industrial facilities and processes. Though
astute observers have been trying to call attention to the problems
of coastal land loss since at least the 1920s, it was not until
the 1980s that they began to get widespread attention. In a 1925
presentation to the Ecological Society of America, Percy Viosca,
Jr. of Louisiana's Department of Conservation argued that the
draining and reclaiming of marshes was a major factor in the decline
of the state's native wildlife. Citing flood protection and the
digging of canals as two major causes of changes in the state's
wetlands, Viosca argued that "the scenic effects throughout
the country [the wetlands] have served and still serve as inspiration
to the poet, philosopher and artist, and the legend and romance
of the swamp and marsh country is still being written." Despite
these concerns, little action was taken to protect the wetlands;
this was partly due to the wetlands being an area into which few
people ventured. During the 1970s, when national attention to
environmental issues was at its peak, both the fisheries and the
oil and gas industry were booming in southern Louisiana. In 1971,
due to growing awareness that the biological and economic productivity
of the Louisiana coastal zone was being imperiled by fragmented
management, improper development, and lack of research, the governor
established the Louisiana Advisory Commission on Coastal and Marine
Resources. In 1976, the definition of coastal zone impacts in
Louisiana was broadened to include both onshore and offshore impacts
of outer continental shelf activity. By that time thousands of
platforms had been installed and 120 rotary
drilling rigs were operating in the Gulf of Mexico.
The popular environmentalism that took
hold across the United States during the 1970s seemed alien to
much of southern Louisiana's population. The oil industry was
booming and offering thousands of people employment, and the environmental
consequences of dredging pipeline canals were largely accepted
as an externality of the business. Trappers were angered by the
decrease in fur demand related to environmental campaigning, and
commercial fishermen opposed efforts to impose environmental regulations
in the Gulf. In the 1980s, however, when wetlands loss was newly
connected to increased hurricane threat, and to the loss of important
estuary functions regulating marine wildlife, things began to
change.
Coastal Land Loss
Coastal residents and some scientists began reporting marsh deterioration
and shoreline erosion at least 80 years ago. However, habitat
preservation sentiments in the public were abruptly replaced by
the urgency of flood control after the Mississippi
River flood of 1927. Floodwaters displaced over 600,000 people
across seven states, and New Orleans was saved only by dynamiting
levees downstream. The 1928 Federal
Flood Control Act authorized more money for levee construction
than had been spent throughout the nation's history. The goal
of the Act was to protect people and property from the worst-case
water level by constructing levees and shifting water in low-lying
areas of the Atchafalaya River and delta. Twelve years later,
reorganization within Louisiana's government created the Department
of Public Works - to construct and maintain levees, spillways,
and canal systems; drain wetlands; and provide engineering services
- and the Stream Control Commission - to handle water pollution
problems. By 1950, the Mississippi was leveed along virtually
its entire length -- approximately half of the sediment reaches
the Gulf today that did prior to 1950. In 1956, the Federal Water
Pollution Control Act brought concerns about flood protection
and management together with wetlands management by requiring
the U.S. Army Corps of Engineers to consider the effects of its
actions on fish and wildlife. This link was furthered by the passage
of the National Environmental Protection Act, which required that
appropriate consideration be given to environmental values; one
of the first lawsuits filed after passage involved the Corps (Zabel
v Tabb, 430 F.2d 199 (5th Cir. 1970). The first comprehensive
assessment of coastal erosion in Louisiana occurred in 1971.Renewed
efforts to draw attention to the severity of the problem in the
1970s include Sherwood Gagliano and Johannes van Beek's estimates
of the rate of land loss as 16.5 square miles per year. more.
By the late 1970s, resources were newly devoted to scientific
research of the issue at scales never before seen. The Louisiana
Universities Marine Consortium (LUMCON) was formed in 1979
to coordinate and stimulate Louisiana's activities in marine research
and education.In 1980, Karen Wicker published evidence that the
deltaic plain lost 39 square miles per year between 1955 and 1978.
In 1981, Gagliano, Wicker, and Klaus Meyer-Arendt concluded that
the rate of wetland loss had been increasing geometrically for
a century.
Still, many residents and community leaders
remained complacent until Hurricane
Juan devastated Terrebonne Parish in 1985. Described by residents
as a "wake up call," Hurricane Juan was the eighth costliest
hurricane to strike the U.S. mainlan in the city of
Houma. [A resolution prepared for the Louisiana Catholic Conference
in 1987 reminded Louisiana Catholics of the importance of protecting
wetlands, and the importance of church involvement. Catholics,
Methodists and members of the Louisiana Interchurch Conference,
an ad hoc coalition of churches, established the Louisiana
Coastal Wetlands Interfaith Stewardship Initiative.
"People
saw we got millions of acres of marsh out there that isn't worth
anything. So, why shouldn't we dredge as many canals as necessary
to get to the oil reserves or gas reserves that we think are there.
And there was really no regulations to prevent them from doing
this. There were no penalties to speak of to prevent them from
doing it. And, like I said, unless they dug a canal through Lake
Charles to disrupt the lives of a lot of people, well, nobody
really cared. And there weren't many people that were really familiar
with it. Because there were so many places to fish in coastal
Louisiana, and hunt, and trap, and swim, or boating, or whatever
you intended to do, that if they dug a canal across your favorite
hole, so what? You had ten more within a ten mile area. So nobody
just really cared. But to me, one of the most important things
was the disruption of the natural water flow through the coastal
marsh area. You know, almost all of these canals are in some way
connected North to South, even though they may have been dug East
to West. There were cuts in them. There were old bayous that passed
through them. They went through natural lakes or whatever, so
once you dug a deeper channel here, and the current started running
through that channel, then each tidal cycle that current tended
to change the natural water flow in this area. And you got thousands
and thousands of areas that were impacted directly. And now, we
see that you have millions of acres that were impacted indirectly.
Biologist with the Louisiana Department of Wildlife and Fisheries
from 1963 to 1997, January 14, 2002
In 1987 the U.S. Environmental Protection Agency
and Louisiana Geological Survey convened the Louisiana Wetland
Protection Panel to study coastal erosion; the panel issued Saving
Louisiana's Coastal Wetlands: The Need for a Long-Term Plan of
Action. The report concluded: "The wetlands of coastal
Louisiana are being converted to open water at a rate of fifty
square miles per year, largely as a result of maintaining shipping
lanes, the dredging of canals, flood control levees, and the withdrawal
of oil and gas. If current trends continue, an ecosystem that
supports the nation's oldest bilingual culture, 25 percent of
the nation's fishing industry, and North America's largest fur-producing
area, will be mostly lost in the next century. This process could
be further accelerated if sea level rises one or more feet as
a result of the projected global warming from the greenhouse effect."
The report noted that the problem of coastal land loss had been
recognized for 20 years and a variety of solutions put forward
but that a comprehensive solution was lacking. The report also
observed that, though additional scientific research would be
needed along the way, sufficient information was available to
commence the development of a plan for saving Louisiana's wetlands.
The panel called upon the Federal Emergency Management Agency's
Flood Insurance Administration, the Fish and Wildlife Service,
the National Park Service, the National Oceanic and Atmospheric
Administration, the Environmental Protection Agency, the Army
Corps of Engineers, the State of Louisiana, coastal parishes,
the U.S. Congress, the Louisiana Legislature, and the private
sector to join forces to address the loss of Louisiana's wetlands.]
Also in 1987, Congress established the National
Estuary Program (NEP) through section 320 of the Clean Water
Act. The NEP is administered by the Environmental Protection Agency;
its goal is to protect estuaries' public water supply, shellfish,
fish and wildlife populations, and recreational opportunities
for estuary residents. Louisiana's Barataria and Terrebonne basins
were nominated for participation in the NEP on October 16, 1989.
In his nomination letter, the Governor of Louisiana stated, "Louisiana
faces a pivotal battle in the Barataria-Terrebonne Estuarine Complex
if we are to do our part in winning the national war to stem the
net loss of wetlands..." The Barataria-Terrebonne
National Estuary Program was established on September 13,
1990 through a cooperative agreement between the EPA and the State
of Louisiana and created a coalition of government, private, and
commercial interests. The goals of the BTNEP were delineated in
1992 by a management conference and provide the basis for all
action plans found in the Comprehensive Conservation Management
Plan.
Goals of the Barataria-Terrebonne National Estuary
Program are to:
- Preserve and restore wetlands and barrier
islands
- Realistically support diverse, natural biological
communities
- Develop and meet water quality standards
that adequately protect estuarine resources and human health
- Promote environmentally responsible economic
activities that sustain estuarine resources
- Generate national recognition and support
- Implement comprehensive education and awareness
on and awareness programs that enhance public involvement and
maintain cultural heritage
- Create an accessible, comprehensive database
with interpreted information for the public
- Create clear, fair, practical, and enforceable
regulations
- Develop and maintain multi-level, long-term,
comprehensive watershed planning
- Be compatible with natural processes
- Forge common-ground solutions to estuarine
problems
- Formulate indicators of estuarine ecosystem
health and balance estuary use
In 1998 officials convened unprecedented
federal, state and local task forces to address the issue in an
initiative called Coast
2050 as a direct response to a perceived need for a coordinated
set of objectives among the many different administrative sectors
managing coastal activities. The Coast 2050 process worked to
define regional wetlands conservation and restoration objectives,
and several - though notably not all - interagency sectors were
asked to align their objectives to reflect Coast 2050 findings
and conclusions.
Coastal land loss has long been attributed primarily
to levee and flood management efforts and canals dredging. Though
local residents have long recognized links between the industry
and coastal erosion, government acknowledgement of links to the
oil and gas industry have been slow in coming. Recent research
indicates that wetland conversion in Louisiana reached its peak
between 1950 and the late 1970s, when coastal marshes disappeared
at an average rate of 30-40 square miles per year, and that at
least 30 percent of this loss is directly attributable to oil,
gas and shipping canal dredging. Studies of historical
interior wetland loss in the region south of Houma and west
of Bayou Lafourche, for example, attribute most of the loss to
rapid subsidence, mostly between the late 1960s and the late 1970s.
The highest subsidence rates in Lafourche and Terrebonne Parishes
coincide with oil and gas fields and reactivated faults.
"They
tear up bayous and bayous and bayous and they've introduced freshwater
where saltwater used to be dominant, and they introduce saltwater
where freshwater used to be. Since they dug the deepwater channel
come to Houma, the oil companies progressed and prospered from
it, but all the local fishermen, they suffer because of all the
erosion from the land, and these oil companies just cuttin' more
and more. If you go up in a helicopter, or airplane, and just
fly over, you'd be surprised at how very little land there is
between the Gulf and where you're sitting now."
Resident of Isle de Jean Charles, Louisiana, 2002
"It
destroyed the land and the wildlife and it made living hard to
survive because there's no more trapping; the land's gone for
the furs that we used to catch year round. And whenever they have
a leak of one of the wells that they've got, there goes the shrimp
and the crab and the fish. They've gotten pretty good over the
years, but before it would happen at least twice a year. Now it's
like maybe once every three years we'll have a problem 'cause
they store all the different chemicals in the barges that they
leave out there and salt water causes it to erode and it will
eventually get a leak. But they'll leave a well that's dead, they
just cap it off and then somebody will hit it with a boat or something
'cause it's under the water. Then that causes a problem. They
leave all the dead pipes out there, which looks like spaghetti
in the grass. But other than that you know they just don't seem
to care sometimes about what they do. The major companies came
in and just dug canals where there were no canals and just put
these big old rigs and then they'd work for a couple of months
and they would bring outside people. They didn't employ any of
the local people. You see they were not only taking from the land.
You know, if they would have employed the local people it would
have helped, but they didn't. They brought people from Texas and
Alabama and all over - the same as they do now."
Resident of Grand Bayou in Plaquemines Parish, February 25,
2003
The complex relationship between the oil and
gas industry and southern Louisiana communities has complicated
local response to coastal land loss. In the fishing off season,
many people find work offshore or in supporting industries. Oil
development brought money for infrastructure, roads, schools,
and jobs. Coastal communities entered into an interdependence
with the industry that challenges the differentiation of community
"stakeholder" interests.
"I
think one of the big mistakes was they allowed them to go ahead
and dig these canals. And I think that most of the erosion today
that we have in South Louisiana is caused by the oil field. The
oil industry came in here and cut canals all over. It just kept
on washing out. I really think if they had done like- I know that
some places I've been - You don't cut canals. You go ahead and
make a board road. That's what I was talking about. If you could
make roads, you would have land instead of having a lake today.
I blame the oil field for a lot of that. They came here and done
some good and did help some people. But the offshore done a lot
of damage that could have been avoided. They gave people jobs
and everything else. I mean I am thankful that I was able to work
in the oil field. You know? But I can see the damage that was
done. The damage that cannot be repaired."
Oilfield foreman from Chauvin, Louisiana, July 20, 2001]
"The
oilfield service got bases in the lower part of the bayou here
to service the oilfields that created a few jobs here, put the
local people to work. And 'course that peaked and then we started
comin' down again. When the oil companies drilled in here, inshore,
out in the marshes, built all these canals where they had to dig
into the water, dig into the ground make what you call a slip,
you know, locate a rig at a certain place, then they like sort
of helped salt water intrude. There are slips all over the coastal
marshes. The thing is, once they build 'em and get the oil out
and there's nothin' left, they don't go back and close the slips.
Like go to the waterways everywhere and there's erosion, salt
water intrusion. This big navigation channel that they built right
here, down the road, it was supposed to be big enough for small
size ship to navigate. Actually, they didn't build it that big.
But it was big enough that it was like a big old artery now, goin'
to the Gulf. Back to Houma, Louisiana. And that has contributed
a lot to flood problems and saltwater intrusion and a whole lot
of stuff. The bayou by my house is very, very close to bein' flooded
now. It is getting worse all the time. A good south wind here,
there is water all over the highway. Now, where before when I
was younger, that didn't happen. But I'll tell you, one of the
thing they don't realize, they lettin' the coast lose, coastline
and marshland and they're not doin' anything about it. And the
oilfield is on its way out. There's only so much oil and gas in
the ground, it took millions of years to get in there. Once it's
gone, it's not comin' back. Whereas the marshlands require the
necessary assistance for fishin' and shrimpin' and seafood. And
once you have that in place, it supports itself, you don't have
to do anything."
Pumper from south Terrebonne Parish, Louisiana, July 24, 2003
Efforts to bring national attention to
problems of coastal land loss have had limited success. President
Bush promised "no net loss" of wetlands, a policy launched
by his father's administration and bolstered by President Clinton,
but he reversed his approach in 2003, unleashing the developers.
The U.S. Army Corps of Engineers and the Environmental Protection
Agency followed suit by announcing that wetands protecton had
to be linked to interstate commerce.
Contamination
Louisiana ranks second only to Texas in
terms of hazardous industrial waste generated. Biologist Florence
Robinson, A former biology professor from Southern University
and a Heinz Foundation awardee for her research which correlated
toxic pollution in Louisiana to the state's demographic profile,
noted that on a per-capita basis, the Bayou State produces the
most hazardous wastes in the country, especially in areas with
over 50 percent African-American residents. In the 1970s, when
much of the U.S. was establishing environmental protection laws
and policies, Louisiana's Governor Edwin Edwards was actively
promoting the use of south Louisiana's bayous for hazardous waste
disposal. The Office of Environmental Quality was established
in 1980 under a new governor, but Edwards abolished it when he
was reelected in 1984. At that time he resumed efforts to attract
both industry and waste disposal facilities to the state.
In 1980, advanced by citizens of Vermillion
Parish who were concerned about the oilfield pollution affecting
them, the first statewide rules governing commercial oilfield
waste disposal facilities were passed (Statewide Order No. 29-B).
The regulations were tightened in 1983. Effective January 15,
1997, federal regulations prohibit the discharge of any waste
in the coastal zone of the Gulf of Mexico (generally including
inland waters and transition zone onshore areas). A tremendous
volume of oilfield waste is generated in Louisiana and offshore
in the Gulf of Mexico, and state policies on the management of
oilfield wastes have been inadequate. Under the Louisiana rules,
oilfield waste that cannot be treated for discharge or disposed
of at the well where it was generated must be transported to a
permitted disposal facility; the Louisiana rules identified the
wastes as nonhazardous to facilitate disposal.
Widespread environmental pollution in Louisiana
led to an active and organized grassroots movement. African American
communities became involved when tenant organizations linked housing
and environmental pollution issues. In late 1980, in what has
become celebrated as one of the early grassroots environmental
justice efforts, residents of Alden, Louisiana began organizing
in opposition to the Rollins Environmental Services hazardous
waste landfill, at the time the fourth largest facility in the
nation. In 1981, local residents filed a class action lawsuit
against the company; the suit was settled out of court in November
1987. In the mid-1980s, grassroots and mainstream environmental
organizations joined together to oppose Rollins' application to
burn PCBs. In another example, in 1989, the Gulf Coast Tenants
Organization organized the first Great Louisiana Toxics March
through what had become known as "Cancer Alley," the
85 mile industrial corridor of petrochemical plants that follows
the Mississippi River between Baton Rouge and New Orleans. Then,
in 1992, the Southern Organizing Committee, one of several regional
and specialized coalitions that formed to address environmental
justice issues, organized the Southern Community Labor Conference
for Environmental Justice in New Orleans. However, despite its
central place in the debate about waste, pollution, and environmental
justice issues and success in getting the Air Toxic and Solid
Waste Bills through the state legislature, Louisiana has made
only minor adjustments in policy that would affect the oil and
gas industry. Rather, Governor Edwin Edwards' explicit actions
in the 1970s to open "Louisiana to massive chemical waste
dumping by disposal firms and oil companies" began a pattern
in which state policies thwart the efforts of environmental justice
leaders. Even after Louisiana passed legislation on environmental
racism and established an Office of Environmental Justice following
Clinton's executive order, critics claim that neither federal
nor state actions helped residents in Cancer Alley. From 1988
to 1992, Governor Buddy Roemer established new environmental policies
and programs, such as the state "environmental scorecard"
that was designed to link tax benefits to pollution, but many
of these were abolished when Edwin Edwards was again elected in
1991.
The Louisiana Coalition for Tax Justice,
a coalition of groups ranging from environmental justice organizations
to labor unions, spent three years doing an analysis of Louisiana's
industrial tax exemptions and began challenging the status quo.
Though the environmental scorecard was dropped, but it succeeded
in pressuring some companies to clean up and stimulated new investments
in pollution prevention equipment. Nevertheless, Louisiana ranked
last in a 1994 review of economic and environmental conditions
and first in a 1998 analysis of per capita government subsidies
to industry.
The cost of lax environmental laws and
enforcement can be seen in emissions data. According to 1995 Toxics
Release Inventory data, where New Jersey 's manufacturing sector
produced an average of 11 pounds of pollution per job and Texas's
manufacturing sector produced 213 pounds, Louisiana's produced
981 pounds; the difference was attributed to the level of environmental
enforcement in each area. The Toxic
Release Inventory is a compendium of information on the type
of volume of toxic substances released by manufacturing facilities
and required under the 1986 Emergency Planning and Community Right
to Know Act. Recent efforts to minimize pollution, combined with
plant closures, have led to reduced emissions in some parishes.

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