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Submission + - Oil Man Proposes Increase in Oklahoma Oil-and-Gas Tax

Hugh Pickens DOT Com writes: Daniel Gilbert reports at the WSJ that Oklahoma oil man George Kaiser is breaking with fellow energy executives in asking the state to raise taxes on oil companies, including his own. "Oklahoma is in desperate financial circumstances," says the billionaire philanthropist, who controls Kaiser-Francis Oil Co. Kaiser says a higher tax on oil-and-gas production could help the state pay for education and much needed infrastructure improvements and is asking legislators to return the state’s gross production tax to 7 percent, challenging a plan proposed by fellow oil company executives who want to see the rate settle at 2 percent for the first four years of production. But many of Kaiser's competitors disagree. Several energy companies and the State Chamber of Oklahoma say that lower tax rates for the costliest oil and gas wells are necessary to continue drilling at a pace that has stimulated economic activity and created other sources of revenue. Berry Mullennix, CEO at Tulsa-based Panther Energy, credits the tax program for helping his company grow to more than 90 employees, up from 18 a few years ago. “I would argue the tax incentive is a direct reason we have so much horizontal drilling in the state today,” Mullennix says. “The companies used the credit to help discover this massive wealth in oil and natural gas.” When companies decide to drill a well, they make their best guesses on how much it will cost to drill the well, how much the well will produce and what the commodity price will be. All of those estimates can vary widely, Kaiser says. “With ad valorem taxes, the difference among states is 2 or 3 or 4 percent. The other factors can vary by 50 or 100 percent.” Compared with those other factors, Kaiser says the tax rate is incidental. “It’s a rounding error."

Submission + - Brazilian Kids Learn English by Video Chatting With Lonely Elderly Americans

Hugh Pickens DOT Com writes: Tim Nudd writes that it's the perfect match: Young Brazilians want to learn English. Elderly Americans living in retirement homes just want someone to talk to. Why not connect them? The advertising company FCB Brazil did just that with its "Speaking Exchange" project for CNA language schools where young Brazilians and older Americans connect via Web chats, and they not only begin to share a language—they develop relationships that enrich both sides culturally and emotionally. "The goal of the Speaking Exchange project is to transform lives," says Luciana Fortuna. "Our students have the opportunity to practice English with people who are willing to listen. During the chat sessions, the students discuss ideas and information from their lives in Brazil with the American senior citizens, many of whom have never had contact with anyone from Brazil before." The pilot project was implemented at a CNA school in Liberdade, Brazil, and the Windsor Park Retirement Community in Chicago. The conversations are recorded and uploaded as private YouTube videos for the teachers to evaluate the students' development. "The idea is simple and it's a win-win proposition for both the students and the American senior citizens. It's exciting to see their reactions and contentment. It truly benefits both sides," says Joanna Monteiro.

Submission + - Master Counterfeiter Walks Free After Printing Millions of Fake $20 Bills

Hugh Pickens DOT Com writes: Rhonda Schwartz reports that master counterfeiter Frank Bourassa has been allowed to walk free after turning over a huge quantity of fake US $20 bills that authorities say are “not detectable by the naked eye.” “I’m safe, absolutely,” says Bourassa after paying a $1,500 fine in Montreal, Canada, and spending only a month and a half in jail after Canadian authorities agreed that they would not extradite him to the United States for prosecution. “They can’t do nothing about that." Bourassa’s fake $20 first showed up in Troy, Michigan in 2010 and US and Canadian authorities spent almost four years tracking the source to Bourassa. “To detect the counterfeit on this one is very difficult,” says RCMP investigator Dan Michaud. Bourassa says he spent two years studying the details about currency security on the website of the US Secret Service to learn how to produce his fake money. Although special security features were added to US $100 bills in 2010, security features added to the $20 in 2003 have not been updated since then. US bills are “the easiest of them all” to counterfeit says Bourassa, because they are not printed on polymer. “Even third world countries in Africa have polymer bills already." The RCMP and the US Secret Service raided Bourassa’s home, but he still had a card to play because authorities did not know where the remainder of his special paper and fake twenties was hidden. In the end, Bourassa agreed to turn over the remaining fakes and paper in return for a deal his lawyer worked out with Canadian prosecutors that let him walk free. Bourassa regards his accomplishment as a complete victory over the United States government. "It was, like, screw you."

Submission + - Wyoming Is First State To Reject Science Standards Over Climate Change 2

Hugh Pickens DOT Com writes: Time Magazine reports that Wyoming, the nation's top coal-producing state, has become the first state to reject new K-12 science standards proposed by national education groups mainly because of global warming components. The Next Generation Science Standards (NGSS) are a set of science standards developed by leading scientists and science educators from 26 states and built on a framework developed by the National Academy of Sciences. The Wyoming science standards revision committee made up entirely of Wyoming educators unanimously recommended adoption of these standards to the state Board of Education not once but twice and twelve states have already adopted the standards since they were released in April 2013. But opponents argue the standards incorrectly assert that man-made emissions are the main cause of global warming and shouldn’t be taught in a state that ranks first among all states in coal production, fifth in natural gas production and eighth in crude oil production deriving much of its school funding from the energy industry. Amy Edmonds, of the Wyoming Liberty Group, says teaching “one view of what is not settled science about global warming” is just one of a number of problems with the standards. “I think Wyoming can do far better." Wyoming Governor Matt Mead has called federal efforts to curtail greenhouse emissions a “war on coal” and has said that he’s skeptical about man-made climate change.

Supporters of the NGSS say science standards for Wyoming schools haven't been updated since 2003 and are six years overdue. "If you want the best science education for your children and grandchildren and you don’t want any group to speak for you, then make yourselves heard loud and clear," says Cate Cabot. "Otherwise you will watch the best interests of Wyoming students get washed away in the hysteria of a small anti-science minority driven by a national right wing group – and political manipulation."

Submission + - Physician Operates on Server, Costs His Hospital $4.8 Million

Hugh Pickens DOT Com writes: Jaikumar Vijayan reports at Computerworld that a physician at Columbia University Medical Center (CU) attempted to "deactivate" a personally owned computer from a hospital network segment that contained sensitive patient health information, creating an inadvertent data leak that is going to cost the hospital $4.8 million to settle with the U.S. Department of Health and Human Services (HHS). The error left patient status, vital signs, laboratory results, medication information, and other sensitive data on about 6,800 individuals accessible to all via the Web. The breach was discovered after the hospital received a complaint from an individual who discovered personal health information about his deceased partner on the Web. An investigation by the HHS Office for Civil Rights (OCR) found that neither Columbia University nor New York Presbyterian Hospital, who operated the network jointly, had implemented adequate security protections, or undertook a risk analysis or audit to identify the location of sensitive patient health information on the joint network. "For more than three years, we have been cooperating with HHS by voluntarily providing information about the incident in question," say the hospitals. "We also have continually strengthened our safeguards to enhance our information systems and processes, and will continue to do so under the terms of the agreement with HHS." HHS has also extracted settlements from several other healthcare entities over the past two years as it beefs up the effort to crack down on HIPAA violations. In April, it reached a $2 million settlement with with Concentra Health Services and QCA Health Plan. Both organizations reported losing laptops containing unencrypted patient data.

Submission + - The Mere Promise of Google Fiber Sends Rivals Scrambling

Hugh Pickens DOT Com writes: Marguerite Reardon writes at Cnet that within a week of Google's declaration last spring that it planned to build a fiber network in the city of Austin, AT&T announced its own Austin fiber network and in less than a year's time, AT&T and local cable operator Grande Communications have beaten Google to market with their own ultra-high speed services using newly built fiber networks. AT&T maintains it has been planning this fiber upgrade for a long time, and that Google's announcement didn't affect the timing of its network but Rondella Hawkins, the telecommunications and regulatory affairs officer for the city of Austin, said she had never heard about AT&T's plans before Google's news came out. Hawkins was part of the original committee that put together Austin's application to become the first Google Fiber city. "Our application for Google would have been a good tip-off to the incumbents that we were eager as a community to get fiber built," says Hawkins. "But we never heard from them. Until Google announced that it was going to deploy a fiber network in Austin, I was unaware of AT&T's plans to roll out gigabit fiber to the home." Grande Communications' CEO Matt Murphy admits that without Google in the market, his company wouldn't have moved so aggressively on offering gigabit speeds. It also wouldn't be offering its service at the modest price of $65 a month, considering that the average broadband download speed sold in the US is between 20Mbps and 25Mbps for about $45 to $50 a month.

It's not surprising, then, that in every city in AT&T's 22-state footprint where Google is considering deploying fiber, AT&T also plans to bring GigaPower. That's a total of 14 markets, including Austin, the Triangle region of North Carolina, and Atlanta, home to AT&T's mobility division. While AT&T refuses to acknowledge that its gigabit fiber plans are answering the competitive challenge posed by Google Fiber, others say that Kansas City may have been a wake-up call. "I think all the providers have learned some valuable lessons from Google's Kansas City deployment," says Julie Huls, president and CEO of the Austin Technology Council. "What Google did instead was say, 'We're going to build you a Lamborghini, but price it at the same price as a Camry,'" says Blair Levin. "And that's what's so disruptive about it."

Submission + - Feds Issue Emergency Order On Crude Oil Trains

Hugh Pickens DOT Com writes: Joan Lowy writes for AP that the Department of Transportation has issued an emergency order requiring that railroads inform state emergency management officials about the movement of large shipments of crude oil through their states and urged shippers not to use older model tanks cars that are easily ruptured in accidents, even at slow speeds. The emergency order follows a warning two weeks ago from outgoing National Transportation Safety Board Chairwoman Deborah Hersman that the department risks a "higher body count" as the result of fiery oil train accidents if it waits for new safety regulations to become final. There have been nine oil train derailments in the U.S. and Canada since March of last year, many of them resulting in intense fires and sometimes the evacuation of nearby residents, according to the NTSB. The latest was last week, when a CSX train carrying Bakken crude derailed in downtown Lynchburg, Va., sending three tank cars into the James River and shooting flames and black smoke into the air. Concern about the safe transport of crude oil was heightened after a runaway oil train derailed and then exploded last July in the small town of Lac-Megantic in Canada, just across the border from Maine. More than 60 tank cars spilled more than 1.3 million gallons of oil. Forty-seven people were killed and 30 buildings destroyed in resulting inferno. Hersman says that over her 10 years on the board she has "seen a lot of difficulty when it comes to safely rules being implemented if we don't have a high enough body count. That is a tombstone mentality. We know the steps that will prevent or mitigate these accidents. What is missing is the will to require people to do so."

Submission + - Let Spouses of H-1B Visa Holders Work in US says White House

Hugh Pickens DOT Com writes: Carolyn Lochhead reports in the SF Chronicle that the White House has announced a plan allowing spouses of H-1B visa holders to work in the United States, a coup for Silicon Valley companies that have been calling for more lenient rules for immigrants who come to the United States to work in technology. "The proposals announced today will encourage highly skilled, specially trained individuals to remain in the United States and continue to support U.S. businesses and the growth of the U.S. economy," says Deputy Secretary of Homeland Security Alejandro Mayorkas. "A concurrent goal is for the United States to maintain competitiveness with other countries that attract skilled foreign workers and offer employment authorization for spouses of skilled workers. American businesses continue to need skilled nonimmigrant and immigrant workers."

Currently, spouses of H-1B visa holders are not allowed to work unless they obtain their own visa but tech companies have been calling for more H-1B visas, and supporters of the rule change argue that it will bring in more talented workers. Critics say they believe expanding the H-1B visa program will allow lower-paid foreign workers to take American jobs. The plan immediately drew fire from Republicans. Sen. Jeff Sessions of Alabama, who sits on the Judiciary Committee, accused the administration of acting unilaterally to change immigration law and bring in tens of thousands of potential competitors with Americans for jobs. "Fifty million working-age Americans aren't working," Sessions said in a statement, adding that as many as "half of new technology jobs may be going to guest workers. This will help corporations by further flooding a slack labor market, pulling down wages."

Submission + - Why Only One Top Banker Went to Jail for the Financial Crisis

Hugh Pickens DOT Com writes: After the savings-and-loan scandals of the 1980s, the FBI opened 5,490 criminal investigations, 1,100 people were prosecuted, and 839 were convicted, including top executives at many of the largest failed banks. But Jesse Eisinger writes in the NYT that the largest man-made economic catastrophe since the Depression resulted in the jailing of a single investment banker, Kareem Serageldin, to 30 months in jail. Many assume that federal authorities simply lacked the guts to go after powerful Wall Street bankers but according to Eisinger, the truth is more complicated. "During the past decade, the Justice Department suffered a series of corporate prosecutorial fiascos, which led to critical changes in how it approached white-collar crime. The department began to focus on reaching settlements rather than seeking prison sentences, which over time unintentionally deprived its ranks of the experience needed to win trials against the most formidable law firms."

From 2004 to 2012, the Justice Department reached 242 deferred and nonprosecution agreements with corporations, compared with 26 in the previous 12 years, and while companies paid huge sums in the settlements, several veteran Justice Department officials say that these settlements emboldened defense lawyers. More crucially, they allowed the Justice Department’s lawyers to “succeed” without learning how to develop important prosecutorial skills. The erosion of the department’s actual trial skills soon became apparent. In November 2009, the U.S. attorney’s office in Brooklyn lost the first criminal case of the crisis against two Bear Stearns executives accused of misleading investors. The prosecutors rushed into trial, failing to prepare for the exculpatory emails uncovered by the defense team. After two days, the jury acquitted the two money managers. “For sure, it put a chill” on investigations says one former prosecutor. “Politicos care about winning and losing.” Federal prosecutors have their own explanation for how only one Wall Street executive landed in jail in the wake of the financial crisis, says Eisinger. "The cases were complex to investigate and would have been infernally difficult to explain to juries."

Submission + - US Climate Report Says Global Warming Impact Already Severe

Hugh Pickens DOT Com writes: Darryl Fears reports in the Washington Post that according to the government’s newest national assessment of climate change, Americans are already feeling the effects of global warming. “For a long time we have perceived climate change as an issue that’s distant, affecting just polar bears or something that matters to our kids," says Katharine Hayhoe, a Texas Tech University professor and lead co-author of the changing climate chapter of the assessment. "This shows it’s not just in the future; it matters today. Many people are feeling the effects.” The assessment carves the nation into sections and examines the impacts: More sea-level rise, flooding, storm surge, precipitation and heat waves in the Northeast; frequent water shortages and hurricanes in the Southeast and Caribbean; more drought and wildfires in the Southwest. "Residents of some coastal cities see their streets flood more regularly during storms and high tides. Inland cities near large rivers also experience more flooding, especially in the Midwest and Northeast. Insurance rates are rising in some vulnerable locations, and insurance is no longer available in others. Hotter and drier weather and earlier snow melt mean that wildfires in the West start earlier in the spring, last later into the fall, and burn more acreage. In Arctic Alaska, the summer sea ice that once protected the coasts has receded, and autumn storms now cause more erosion, threatening many communities with relocation." The report concludes that over recent decades, climate science has advanced significantly and that increased scrutiny has led to increased certainty that we are now seeing impacts associated with human-induced climate change. "What is new over the last decade is that we know with increasing certainty that climate change is happening now. While scientists continue to refine projections of the future, observations unequivocally show that climate is changing and that the warming of the past 50 years is primarily due to human-induced emissions of heat-trapping gases. These emissions come mainly from burning coal, oil, and gas, with additional contributions from forest clearing and some agricultural practices."

Submission + - Students Remember Lectures Better Taking Notes Longhand Than Using Laptops

Hugh Pickens DOT Com writes: Walk into any university lecture hall and you're likely to see row upon row of students sitting behind glowing laptop screens. Laptops in class have been controversial, due mostly to the many opportunities for distraction that they provide (online shopping, browsing Reddit, or playing solitaire, just to name a few). But few studies have examined how effective laptops are for the students who diligently take notes. Now Robinson Meyer writes at The Atlantic that a new study finds that people remember lectures better when they’ve taken handwritten notes, rather than typed ones. The research suggests that even when laptops are used solely to take notes, they may still be impairing learning because their use results in shallower processing. "Our new findings suggest that even when laptops are used as intended — and not for buying things on Amazon during class — they may still be harming academic performance," says psychological scientist Pam Mueller of Princeton University, lead author of the study. Laptop note takers’ tendency to transcribe lectures verbatim rather than processing information and reframing it in their own words is detrimental to learning. If you can type quickly enough, word-for-word transcription is possible, whereas writing by hand usually rules out capturing every word. “We don’t write longhand as fast as we type these days, but people who were typing just tended to transcribe large parts of lecture content verbatim,” says Mueller. “The people who were taking notes on the laptops don’t have to be judicious in what they write down.”

Submission + - Scientists Race To Develop Farm Animals That Can Survive Climate Change

Hugh Pickens DOT Com writes: Evan Halper writes in the LA Times that with efforts to reduce carbon emissions lagging, researchers, backed by millions of dollars from the federal government, are looking for ways to protect key industries from the impact of climate change by racing to develop new breeds of farm animals that can stand up to the hazards of global warming. ""We are dealing with the challenge of difficult weather conditions at the same time we have to massively increase food production" to accommodate larger populations and a growing demand for meat, says Agriculture Secretary Tom Vilsack. For example a team of researchers is trying to map the genetic code of bizarre-looking African naked-neck chickens to see if their ability to withstand heat can be bred into flocks of US broilers. "The game is changing since the climate is changing," says Carl Schmidt. "We have to start now to anticipate what changes we have to make in order to feed 9 billion people," citing global-population estimates for 2050.

Warmer temperatures can create huge problems for animals farmed for food. Turkeys are vulnerable to a condition that makes their breast meat mushy and unappetizing. Disease rips through chicken coops. Brutal weather can claim entire cattle herds. Some climate experts, however, question the federal government's emphasis on keeping pace with a projected growing global appetite for meat. Because raising animals demands so many resources, the only viable way to hit global targets for greenhouse gas reduction may be to encourage people to eat less meat and point to an approach backed by Microsoft founder Bill Gates that takes animals out the process altogether. "There's no way to produce enough meat for 9 billion people," says Bill Gates. "Yet we can't ask everyone to become vegetarians. We need more options for producing meat without depleting our resources."

Submission + - Tennessee to Jail Women Who Use Drugs During Pregnancy

Hugh Pickens DOT Com writes: Tony Gonzalez reports in USA Today that Tennessee has become the first state with legislation that will criminally charge women who use drugs while pregnant with assault for harm done to their infants. Tennessee officials have wrestled with what to do about the growing numbers of infants born dependent on drugs (921 in Tennessee in 2013) and who often suffer from a condition known as neonatal abstinence syndrome. The legislation would allow mothers to avoid criminal charges if they get into one of the state's few treatment programs. Governor Bill Haslam says he wants doctors to encourage women to get into treatment before delivering their babies so they can avoid charges. "The intent of this bill is to give law enforcement and district attorneys a tool to address illicit drug use among pregnant women through treatment programs," says Haslam.

Seventeen states already consider drug use during pregnancy as child abuse and in three of them — Minnesota, South Dakota and Wisconsin — it is grounds for civil commitment (e.g. forced enrollment in treatment programs). In 15 states, health-care providers are required to report suspected abuse and, in four of those states, they are then also required to test for drug exposure of the child. Eighteen states have treatment programs targeted at pregnant women. Opponents of the bill, including five national medical organizations and local doctors who treat pregnant women, worry that criminalization will scare women away from treatment. "This law separates mothers from their children and is not patient-centered," says Cherisse A. Scott. "Tennessee families who are already being hit the hardest by policies such as the failure to expand Medicaid, poverty and a lack of available drug treatment facilities will be most deeply impacted by this bill."

Submission + - U-2 Caused Widespread Shutdown of US Flights out of LAX 2

Hugh Pickens DOT Com writes: Reuters reports that last week's computer glitch at a California air traffic control center that led officials to halt takeoffs at Los Angeles International Airport was caused by a U-2 spy plane still in use by the US military, passing through air space monitored by the Los Angeles Air Route Traffic Control Center that appears to have overloaded ERAM, a computer system at the center. According to NBC News, computers at the center began operations to prevent the U-2 from colliding with other aircraft, even though the U-2 was flying at an altitude of 60,000 feet and other airplanes passing through the region's air space were miles below. FAA technical specialists resolved the specific issue that triggered the problem on Wednesday, and the FAA has put in place mitigation measures as engineers complete development of software changes,” said the agency in a statement. “The FAA will fully analyze the event to resolve any underlying issues that contributed to the incident and prevent a reoccurrence.” The U.S. Air Force is still flying U-2s, but plans to retire them within the next few years. The U-2 was slated for retirement in 2006 in favor of the unmanned Global Hawk Block 30 system, before the Air Force pulled an about-face two years ago and declared the Global Hawk too expensive and insufficient for the needs of combatant commanders.

Submission + - Steve Jobs Defied Convention, and Perhaps the Law

Hugh Pickens DOT Com writes: James B. Stewart writes in the NYT that recent revelations that Steve Jobs was the driving force in a conspiracy to prevent competitors from poaching employees raises the question: If Steve Jobs were alive today, should he be in jail? Jobs “was a walking antitrust violation. I’m simply astounded by the risks he seemed willing to take,” says Herbert Hovenkamp, a professor at the University of Iowa College of Law and an expert in antitrust law. "Didn’t he have lawyers advising him? You see this kind of behavior sometimes in small, private or family-run companies, but almost never in large public companies like Apple.” In 2007, Jobs threatened Palm with patent litigation unless Palm agreed not to recruit Apple employees, even though Palm’s then-chief executive, Edward Colligan, told him that such a plan was “likely illegal.” That same year, Jobs wrote Eric E. Schmidt, the chief executive of Google at the time, “I would be extremely pleased if Google would stop doing this,” referring to its efforts to recruit an Apple engineer. When Jobs learned that the Google recruiter who contacted the Apple employee would be “fired within the hour,” he responded with a smiley face. "How could anyone have approved that?” says Hovenkamp. “Any competent antitrust counsel would know that’s illegal. And they had to know they’d get caught eventually.”

But the anti-poaching pact was hardly Jobs’s only brush with the law. Jobs behavior was at the center of an e-book price-fixing conspiracy with major publishers where a federal judge ruled that “Apple played a central role in facilitating and executing that conspiracy.” (Apple has appealed the decision. The publishers all settled the case.) Jobs also figured prominently in the options backdating scandal that rocked Silicon Valley eight years ago. An investigation by Apple’s lawyers cleared Jobs of wrongdoing, saying he didn’t understand the accounting implications but five executives of other companies went to prison for backdating options, while Jobs was never charged.

There’s no way of knowing whether Jobs, had he lived and been healthy, would have faced charges, especially since he was a recidivist. Given Jobs’s immense popularity, prosecutors might not have wanted to risk a trial, says Hovenkamp. Jobs probably came closest to being prosecuted in the backdating scandal, but by then he was already known to have pancreatic cancer. Jobs' biographer Walter Isaacson notes that “over and over, people referred to his reality distortion field.” Isaacson added, “The rules just didn’t apply to him, whether he was getting a license plate that let him use handicapped parking or building products that people said weren’t possible. Most of the time he was right, and he got away with it.”

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