Slimy Parsky Oil Play and a Yorba Linda Lecher
As we first reported late Wednesday, tax reform commission Chairman Gerald Parsky sucker-punched at least some members of his panel by sending them an unexpected, last-minute recommendation to generate “tens of billions of dollars” of new revenue by vastly expanding offshore oil drilling in state waters.
Also in the last-minute materials was the final proposal for a nearly-flat (two-tier) personal income tax that would give a massive tax cut to the richest California taxpayers and a teensy-weensy slice to the poorest taxpayers. Coupled with the knuckle-dragging business net receipts tax, the Parsky proposals are about as regressive as musclebound Gov. Schwarzblunder and his diminutive, cigar-sucking sidekick Susan Kennedy could ask for.
But at least commissioners and the public knew that was coming. The revival of Schwarzenegger’s proposal (which we understand was the brainchild of his economics guru David Crane) to gain approval of the twice-defeated Tranquillon Ridge offshore oil project as a tax-revenue scheme — now that was a nasty surprise.
“There are several economic reasons for permitting new oil leases,” reads the oil-drilling recommendation, to be considered by the commission today, when it meets to craft a final proposal to send to the governor and Legislature. “Unlike all other revenue sources, the oil companies, which would make these new royalty payments, have requested the ability to do so. Revenues from this source would create no economic distortions, and the economic activity being taxes could not migrate elsewhere.”
The recommendation came as a shock, not only because the offshore issue was only casually discussed during the commission’s months of hearings, but also because it deepened the atmosphere of secrecy and sleight-of-hand in which Parsky assembled the agenda for the panel’s final, crucial meeting. As a political matter, such an expansion of offshore drilling would also directly conflict with decades of state policy, in which environmental protection of coastal waters and beaches have trumped economic issues, resulting in a long-held moratorium on new leases.
The proposal for more offshore drilling seems to have worked its way onto the commission’s plate at least in part at the request of conservative Hoover Institution economist Michael Boskin, who also sits on the board of Exxon Mobil.
The commission’s analysis cites a State Lands Commission study estimating that there are 1.635 billion barrels of “recoverable oil on state lands that are not currently under lease.” The U.S. Minerals Management Services, which controls leasing and drilling on federal lands beyond three miles from shore, projects an additional 10.1 billion barrels that remain “undiscovered but is technically recoverable.”
Current royalties paid by oil companies on a small number of existing, small state leases vary from 16.7 percent to 55 percent of the revenues they generate, which altogether yield about $400 million for the state.
“If the ban (on new leases) were lifted,” the recommendation says, “it could make available the 1.63 billion barrels (and) California would receive a share of revenue from new leases on federal lands off of the state’s coast.”
“Over time, the state could receive as much as $34 billion in royalty revenues from new leases in California waters, assuming oil trades on average $70 per barrel and the average royalty rate is 30 percent.”
The recommendation, sure to draw the ire of environmentalists and coastal legislators, pointedly does not suggest imposing a new severance tax on oil companies. California is the only oil-producing state that does not have such a tax, which is being pushed in the legislature by several members of the Assembly, including Assemblymen Pedro Nava, D-Santa Barbara, and Alberto Torrico, D-Fremont.
BTW: There’s no frigging way the agenda and agenda packet was ready early enough for the public to have legal notice. Not that Parsky seems to give a rat’s butt.
Eternal Filthiness of the Adulterous Mind: To be honest, Calbuzz had never heard of (now) ex-Assemblyman Mike Duvall, a Republican from Yorba Linda, until Wednesday morning. But after this and this , and his resignation a few hours later, it’s hard to imagine there’s anyone left on the planet who hasn’t heard of him now. Seriously, you just know that in, oh say, Guinea Bissau or the Republic of Nauru or on Chuuk Island, guys were walking up to their friends all day and saying, “Mike Duvall,” and then both of them would fall down in the street and laugh uncontrollably.
We’ll leave it to others to draw the great moral lessons implicit in the NFW tale of a dumbass holy roller, family values, fat lying tub of goo who brags over an open mike about cheating with kinky sex, not only on his wife but also on his mistress, in favor of noting that no matter what he does or where he goes the rest of his life, Mike Duvall will be a walking double entendre:
Take for example, this lede on a recent Capitol Weekly piece about him:
“If you want to know what issues are important to Assemblyman Mike Duvall, R-Brea, just look at what he did the other weekend.”
Or this from his soon-to-be shut down web site:
“In February 2009 Assemblyman Duvall was named “Legislator of the Year for 2008″ by the California Attractions and Parks Association for his opposition to Governor Schwarzenegger’s proposed ‘fun tax.’”
You also gotta wonder whether Chapman University wants its plaque back:
“Chapman University awarded Duvall the Ethics in America Award in 2000 for his ‘demonstration of the highest standards of ethical integrity.’”
And finally this: The hearing room where Duvall let his potty mouth run wild is festooned with a large color portrait of the late, great Jesse Unruh, a man of great appetites who famously said of lobbyists, “If you can’t take their money, drink their liquor, fuck their women, and then come in here the next day and vote against them, you don’t belong here.”
Of course, that was in the days before women were lobbyists.
PS: Get this, from Duvall’s web site: “I want to make it clear that my decision to resign is in no way an admission that I had an affair or affairs. My offense was engaging in inappropriate story-telling and I regret my language and choice of words. The resulting media coverage was proving to be an unneeded distraction to my colleagues and I resigned in the hope that my decision would allow them to return to the business of the state.”
Parsky has once again engineered a failure. By and thru his actions the Commission does not have credibility and its report is DOA.
Gerry is a wannabe of the first order, but just flat doesn’t have the goods.
We will probably end up granting rights to drill off the CA coast to the China or Venezuela
Some sleavebag and his hypocrisy is not the issue! Where is the reporting on lobbyists literally whoring themselves?!? Where is the reporting on the not reporting on this?
Some media types seem to think that sex scandals are beneath them and just purient pandering to the USA Today crowd. But this is corruption! Base vile impious influence over the body politic. May Priapus curse the offenders, their impotent viagra inspired weapons and pox infected dirty dried up sheaths!
Can Duvall just drill Parsky and call it a typical Rep day without destroying the coastal environment?
As a citizen of the coastal region of California, I’m still looking for the “destroyed coastal environment” that our current oil platforms, most within sight of Gaviotta, Santa Barbara, etc., have created. The sharks certainly don’t seem to mind them as they munch on idiotic human swimmers out in the middle of huge schools of fish.
The reality is that our national economy is oil-sensitive, as demonstrated by last year’s fuel prices and the true destruction out-of-control oil prices wreaked on our economy. Realize that opening more oil fields can help buffer against future problems – not to mention being another source of major revenue for the greedy entitlement culture of California.
And despite the lofty speeches and clicking-heels wishful thinking of “green energy”, such technology isn’t ready to take over from oil. In the meantime, gone are the days where oil was pumped into the ocean or systems were engineered without concern for environmental impacts. Current oil companies that are allowed to drill do so under regulations so tight that you as the average citizen would not be able to run your own household. (As an example – do you have an MSDS on file for EVERY chemical in your house? Have you maintained them for the last 50 years? Do you make written notification to your neighbor every time you spray insecticide under your sink because you saw a spider? For that matter, are you licensed to spray that insecticide? And those are the really simple and easy things to comply with… )
None of us want to drill any more than necessary, but at the same time, one has to be realistic and perhaps less rhetorical.
As for Duvall, he deserves everything he gets. And I agree with those before who are amazed by the press’s lack of coverage. But as Bruce Willis said in Die Hard, “Welcome to the party, Pal.” Some of us have been amazed since the days of President Clinton and his marinated cigars.
Divebomber, you’ve got a short memory. Ask Professor Google about Fanne Foxe and Rep. Wilbur D. Mills. Clinton was only doing his part to maintain tradition.
There’s a huge (Connecticut-sized) oil spill from an offshore rig in Western Australia that is getting zero exposure in the western press. Howcum? Perhaps b/c if people heard about it they would not be so inclined to drill-baby-drill (Spanky Duvall excepted).