Harnessing Passion Through Grassroots

Harnessing Passion through Grassroots Deryck Spooner | April 2015

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1220 L Street, NW • Washington, DC 20005-4070 • www.api.org 2

Intense, driving, or overmastering feeling or conviction

What is passion?

Intense, driving, or overmastering feeling or conviction

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It will drive you to take action…

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To take to the streets…

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Even make a fool of yourself…

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n Our opposition has it. How do we get it? And harness it?

By showing the importance of oil and natural gas in our everyday lives…

And understanding the political and issue landscape that tells us where and

how grassroots passion can have an impact for our industry.

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Some are forgone conclusions, others will be bitter fights.

US Presidency – Not a national election, 51 mostly winner-take-all state races.

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Presidential Primary Process: Up Close and Personal

New Hampshire

Iowa

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US Senate – 54 Republicans, 44 Democrats, 2 Independents.

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US House – 245 Republicans, 188 Democrats, 2 Vacancies

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US Governors – 31 Republicans, 18 Democrats, 1 Independent

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Governors Play Critical Role

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Gridlock in Washington, combined with broader support for natural gas, has caused our opposition to—smartly—refocus their efforts on state legislatures and local and state ballot initiatives.

Industry’s Added Challenge: Federal, State and Local

FEDERAL • Increased regulations

on fracking • Ozone regulations • Offshore drilling 5-

year program • Approval of KXL

STATE • Statewide fracking bans

• Infrastructure battles • Severance tax fights

LOCAL • Local Control

• Community Bill of Rights

• Fracking bans • Infrastructure battles

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The Answer? Effective Grassroots Advocacy

• Constituents Hold the Power: Key to re-election is a “happy” constituency

• Power in Numbers: The more legislators hear from their voters on a particular issue, the more likely they are able to support or change their position

• Air Cover: Showing strong grassroots support is the most effective way to provide “air cover” to influential legislators

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Grassroots Research

Building an Effective Program

Take the time to research and identify the strengths and liabilities of the issue in your community.

Issue Analysis

Determine the assets, operations, historical issues and impacts stakeholders have had in the community.

Stakeholder Analysis

Learn about the regional demographics and geography that will impact your grassroots campaign.

Community Assessment

Assess the political environment, the make-up of registered voters, influential leaders and voter turn-out.

Political Assessment

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Building an Effective Program

Engagement

Face to Face

Meetings Interaction

Campus Organizing Lobby Days

Congressional Testimony

Political Family Intercepts

Social Networking

Blogs Twitter

Facebook LinkedIn

Targeted Communications

E-News

Phone Calls Letters Email

Petitions

Event Media

Endorsements Press

Conferences Briefings

Tours Town Meeting

Testimonials Rallies

Earned Media

Letters to Editor Radio Interviews

Television Interviews

Web Chat Rooms Message Boards

Paid Media

Direct Mail Print Ads

Radio Ads TV Ads

GRASSROOTS TOOLS

Recruit

Educate & Train

Motivate & Activate

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API Program Model

Increased Access to Oil & Natural Gas

Resources

Increased Shareholder

Value

Increased Energy

Production

More Jobs

ENERGY NATION

ENERGY CITIZENS

ENERGY FORUM

Environmental Performance & Integrity

Economic Growth & Employment

Affordable & Reliable Energy

Labor Groups

Veterans

Affinity Groups Business Groups

Women

Conservation & Outdoor

Retirees

Employees & Families

Vendors & Suppliers

Royalty Holders

Registered Voters

Micro-Targets

Energy Security

Investors

EXPANDING THE ENERGY BASE

Native Americans

Engage & Educate

Motivate Activate

General Public Industry Employees Non-Traditional Strategic Partners

Stakeholder Groups & Interests

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API Assets: National, State, and Local Reach

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Maximize value by reaching outside of Capitol Hill to build key, long-term ally relationships relying on the principle that conditioned allies are likely to be better advocates and be willing to underscore implications on Election Day.

Program Approach

Policymakers

Community-based value proposition of the industry through elected officials and staff, business leaders, small-business owners, community leaders, media.

Local Influentials

Industry, fact-based expertise and perspective to the policymaking process.

Industry Voices

Empower rank-and-file constituent and industry voices to demonstrate widespread support and communicate the personal/community impact of industry and energy policy.

Energy Voters

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National Reach

Leadership, Access, Environment, Tax

Leadership

McConnell (KY-R) Hatch (UT-R)

Energy & Resources

Murkowski (AK-R) Cantwell (WA-D)

Coats (IN-R) Stabenow (MI-D) Franken (MN-D) Shaheen (NH-D) Capito (WV-R)

Portman (OH-R) Corker (TN-R)

Gardner (CO-R) Hoeven (ND-R) Heller (NV-R)

Johnson (SD-D) Manchin (WV-D) Franken (MN--D) Baucus (MT-D) Johanns (NE-R) Heinrich (NM-D)

Alexander (TN-R) Gillibrand (NY-D)

Commerce

Sullivan (AK-R) Boozman (AR-R) Gardner (CO-R) Nelson (FL-D) Rubio (FL-R)

Klobuchar (MN-D) Blunt (MO-R)

McCaskill (MO-D) Ayotte (NH-R) Udall (NM-D) Heller (NV-R)

DeMint (SC-R) Thune (SD-R) Prters (MI-D)

Warner (VA-D) Manchin (WV-D)

EPW

Boozman (AR-R) Sullivan (AK-R) Fischer (NE-R) Merkley (OR-D)

Gillibrand (NY-D) Alexander (TN-R)

Appropriations

Murkowski (AK-R) Boozman (AR-R) Capito (IWV-R)

Shaheen (INH-D) Durbin (IL-D)

Kirk (IL-R) Blunt (MO-R) Tester (MT-D)

Hoeven (ND-R) Nelson (NE-D) Brown (OH-D)

Graham (SC-R) Johnson (SD-D)

Alexander (TN-R)

Joint Deficit

Baucus (MT-D) Portman (OH-R) Toomey (PA-R)

Joint Economics

Coats (IN-R) Klobuchar (MN-D) Bingaman (NM-D)

Casey (PA-D) Toomey (PA-R) DeMint (SC-R) Warner (VA-D) Webb (VA-D)

Joint Tax Grassley (IA-R) Baucus (MT-D) Conrad (ND-D)

Rockefeller (WV-D)

Budget

Grassley (IA-R) Kaine (VA-D) Nelson (FL-D)

Stabenow (MI-D) Ayotte (NH-R) Conrad (ND-D) Portman (OH-R) Toomey (PA-R) Graham (SC-R) Thune (SD-R) Warner (VA-D)

Finance

Grassley (IA-R) Nelson (FL-D)

Stabenow (MI-D) Brown (OH-D) Bennet (CO-D)

Schumer (NY-D) Burr (NC-R)

Wyden (OR-D) Thune (SD-R) Casey (VA-D)

McConnell (KY-R)

Paul (KY-R) Wyden (OR-D)

Merkley (OR-D)

Merkley (OR-R) Wyden (OR-D)

Wyden (OR-D)

Influence with Key Committee Members 68 U.S. Senators 275 U.S. House of Representatives

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State Reach

• State and Local Influence • 34 Governors • Thousands of County Officials • Thousands of Mayors • 10’s of Thousands of

Townships, City/Municipal officials

Ohio

Individual campaigns address ongoing State and Local challenges

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Allies and Strategic Partner Recruitment

Grow High Impact

Partnerships for Maximum Influence

Minority Outreach

African Am Native Am Hispanic

Asian

Veterans Outreach

State Veteran Ldrs Vet Org Partners

Demo-graphic

Seniors Women Students

Strategic Outreach Academia Agriculture Chambers

Labor Outreach

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API Mobilization Program At Work

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Energy Forum in 23 states State Petroleum Councils in 34 States Energy Nation = 260,000 Energy Citizen = 1.5 million API Microtargets = 32.8 million Total Mobilization Resources: 34.5 million

Mobilization Program Today

Thank You

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CASE STUDY: LNG – Public Pressure Through Online and Offline Actions

• Situation: March 2014 – Uphill approval battle on LNG export facility in Cove Point, MD; possible precedent-setting national decision on LNG facilities.

• Execution: Over 3 months, engaged online and turned online advocates into champions – utilizing them for rallies, hearings and third party letters: – Online Activation: Drove over 120,000 comments in support of Cove Point to 3 local

regulatory agencies. – Offline Activation: Turned out attendees and speakers for hearings and rallies.

Generated third party letters in primary and battle ground states to Governor O’Malley.

• Results: Thanks to public pressure, the LNG Cove Point facility was approved by necessary state and federal agencies.

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CASE STUDY: Youngstown, Ohio

• Execution: By engaging in aggressive voter outreach which included direct mail, phone banking, neighborhood canvassing, church outreach, community meetings, building a diverse coalition and more, the API-led coalition established a successful framework for industry success in other communities.

• Results: Defeated a ballot measure in four consecutive election cycles that would have banned virtually all oil and natural gas activity in Youngstown, Ohio.

• Situation: In Youngstown, Ohio, activists have mounted four separate attempts to ban virtually all oil and natural gas activities within city limits, through the so-called “Community Bill of Rights.” Consistent polling indicated our industry was poised for defeat in this predominantly African-American and Democratic stronghold.

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CASE STUDY: South Portland, Maine

• Execution: Built an API-led coalition of industry members, business groups, small business owners, workers, and families that would have been negatively impacted if the working waterfront was shut down. The campaign centered on advanced voter micro-targeting and direct contact with voters, with volunteers personally visiting 13,000 voters in the last 96 hours of the campaign.

• Results: Following the model built in Youngstown, API and its allies were able to narrowly defeat the Waterfront Protection Ordinance by 198 votes.

• Situation: API faced long odds at the ballot box in South Portland, Maine during the fall of 2013. Environmental activists successfully put the “Waterfront Protection Ordinance” on the ballot, which would have prevented our industry from transporting Canadian oil sands through the city’s working waterfront.

2014 Priority Issues

Mission Critical Work Work / Monitor

Taxes Oil Spill Prevention, Response & Liability Energy Markets

Fuels Climate Change International

Unconventional Resource Development / Hydraulic Fracturing

Financial Reform and Transparency Implementation

Waste & Remediation

Energy Infrastructure Development1 Water

Access and Development Endangered Species / Marine Mammal Protection

Air / NAAQS Natural Gas Markets

Safety and System Integrity Health & Product Stewardship

Security

Oil Sands2

1Moved from Work 2Moved from Mission Critical

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Energy Forum/Entity

PR Firm?

Campaign Manager (SPC)

• Overall campaign director • Connecting Global to

Grassroots • Communications/Advertising • Budget • Communication to API

members • Messaging for earned media • Directing Public Forum Traffic • Press inquiries

Consortium Building • Allied Oil & Gas Assoc. • Non-traditional ie EMS,

churches, etc • Traditional ie. Chambers,

labor, etc. • Forums/Public speaking • Group Listening Sessions • Communications

networks • Educate elected officials

Targeted Groups in Communities

• Regional Groups • Hook & Bullets • Local Electeds • Local Business Groups • Civic Groups • Ethnic Groups

• Advocacy databases • Subject matter

experts/speakers • National Third party

groups/contacts • External Mobilization

tools • Communications Depts

Internal/External • PR Firms • Social media

resources • KEF Web design/host

API Member Companies • Provide experts for legislative/regulatory

testimony, speakers bureau • Site visits

Hydraulic Fracturing Campaign