Oil Sand Industry in Canada Tied to Higher Carcinogen Level

Todd Korol/Reuters

An oil sands mine Fort McMurray, Alberta.

OTTAWA — The development of Alberta’s oil sands has increased levels of cancer-causing compounds in surrounding lakes well beyond natural levels, Canadian researchers reported in a study released on Monday. And they said the contamination covered a wider area than had previously been believed.

For the study, financed by the Canadian government, the researchers set out to develop a historical record of the contamination, analyzing sediment dating back about 50 years from six small and shallow lakes north of Fort McMurray, Alberta, the center of the oil sands industry. Layers of the sediment were tested for deposits of polycyclic aromatic hydrocarbons, or PAHs, groups of chemicals associated with oil that in many cases have been found to cause cancer in humans after long-term exposure.

“One of the biggest challenges is that we lacked long-term data,” said John P. Smol, the paper’s lead author and a professor of biology at Queen’s University in Kingston, Ontario. “So some in industry have been saying that the pollution in the tar sands is natural, it’s always been there.”

The researchers found that to the contrary, the levels of those deposits have been steadily rising since large-scale oil sands production began in 1978.

Samples from one test site, the paper said, now show 2.5 to 23 times more PAHs in current sediment than in layers dating back to around 1960.

“We’re not saying these are poisonous ponds,” Professor Smol said. “But it’s going to get worse. It’s not too late but the trend is not looking good.” He said that the wilderness lakes studied by the group were now contaminated as much as lakes in urban centers.

The study is likely to provide further ammunition to critics of the industry, who already contend that oil extracted from Canada’s oil sands poses environmental hazards like toxic sludge ponds, greenhouse gas emissions and the destruction of boreal forests.

Battles are also under way over the proposed construction of the Keystone XL pipeline, which would move the oil down through the western United States and down to refineries along the Gulf Coast, or an alternative pipeline that would transport the oil from landlocked Alberta to British Columbia for export to Asia.

The researchers, who included scientists at Environment Canada’s aquatic contaminants research division, chose to test for PAHs because they had been the subject of earlier studies, including one published in 2009 that analyzed the distribution of the chemicals in snowfall north of Fort McMurray. That research drew criticism from the government of Alberta and others for failing to provide a historical baseline.

“Now we have the smoking gun,” Professor Smol said.

He said he was not surprised that the analysis found a rise in PAH deposits after the industrial development of the oil sands, “but we needed the data.” He said he had not entirely expected, however, to observe the effect at the most remote test site, a lake that is about 50 miles to the north.

Asked about the study, Adam Sweet, a spokesman for Peter Kent, Canada’s environment minister, emphasized in an e-mail that with the exception of one lake very close to the oil sands, the levels of contaminants measured by the researchers “did not exceed Canadian guidelines and were low compared to urban areas.”

He added that an environmental monitoring program for the region announced last February 2012 was put into effect “to address the very concerns raised by such studies” and to “provide an improved understanding of the long-term cumulative effects of oil sands development.”

Earlier research has suggested several different ways that the chemicals could spread. Most oil sand production involve large-scale open-bit mining. The chemicals may become wind-borne when giant excavators dig them up and then deposit them into 400-ton dump trucks.

Upgraders at some oil sands projects that separate the oil bitumen from its surrounding sand are believed to emit PAHs. And some scientists believe that vast ponds holding wastewater from that upgrading and from other oil sand processes may be leaking PAHs and other chemicals into downstream bodies of water.

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Sears CEO D'Ambrosio to step down

Sears Holdings Corp. said Monday night that Chief Executive Officer Louis J. D’Ambrosio will step down at the end of its fiscal year on Feb. 2, due to family health matters. Chairman Edward S. Lampert will step into the role of CEO.

The surprise move adds new uncertainty for the Hoffman Estates-based company, which has struggled for years to re-establish itself as a department store in an ultra-competitive retailing industry dominated by the low-price giant Walmart and big box and specialty stores.

The decision by Lampert, a hedge fund operator who is the company’s biggest shareholder and driving force, to reassert day-to-day control represents a reversal from his the naming of D’Ambrosio, an outsider, as chief executive nearly two years ago after operating with an interim CEO previously.

“In light of Lou's decision to step down, the Board feels it is important that there is continuity of leadership during this important period of transformation and improvement at Sears Holdings,” Lampert said in a statement. “I have agreed to assume these additional responsibilities in order to continue the company's recovery and sustain the momentum we are experiencing, as well as further the development of the management team under the distributed leadership model, which provides our business unit leaders with greater control, authority and autonomy.”

Sears Holdings, which operates Sears and Kmart, also updated fourth quarter earnings outlook Monday night. The company said it expects to report a net loss of between $280 million and $360 million, or $2.64 and $3.40 per diluted share, for the quarter ending Feb. 2. The loss includes a non-cash charge of roughly $450 million due to pension settlements and an additional $42 million in pension expenses.

Excluding pension expenses Sears said it expects to earn between $132 million and $212 million, or between $1.25 and $2.00 per share. Analysts polled by Bloomberg had been expecting adjusted net income of $137 million.

Excluding interest, taxes and other items, Sears said it expects its adjusted earnings to be between $365 million and $465 million, compared to $351 million at the same time last year. For the year, it expects to adjusted earnings to be between $560 million and $660 million compared to $277 million last year. 

For the year, Sears said it expects to lose between $721 million and $801 million, or between $6.80 and $7.56 per diluted share, which also includes pension-related costs and other adjustments reported in regulatory filings late last year. Excluding those items, the company said it expects to lose between $123 million and $203 million or between $1.16 and $1.92 per share.

D’Ambrosio became CEO after working for the company as a consultant. The 16-year veteran of IBM Corp. had been CEO of a telecommunications company before joining Sears.

“I have worked very closely with Eddie over the past two years. I can say this: there is simply no one in the world that cares more about Sears Holdings and has thought more deeply about our company than Eddie,” D’Ambrosio wrote in a memo to employees.

Lampert gained control of Sears in 2005 after engineering the merger Kmart and Sears Roebuck & Co. For years speculation about Lampert’s intentions for the company focused on the value of its real estate, but under D’Ambrosio Sears appeared to pay more attention to its aspirations as a retailer.

The company reported improved performance in the last quarter that beat Wall Street expectations, but Sears stock still has lost more than 35 percent of its value since November, closing Monday at $42.92.

 Crshropshire@tribune.com

Twitter: @corilyns 

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House drops bills on guns, marijuana, but pension fix alive

SPRINGFIELD — With time running short in the lame-duck session, state lawmakers on Sunday dropped hot-button issues dealing with guns and marijuana but kept alive hopes of reforming pensions and giving driver's licenses to illegal immigrants.

The slimmed-down agenda unfolded rapidly as the House, returning to the Capitol for the first time in a month, pulled an assault weapons ban from consideration and the sponsor of legislation to allow Illinoisans to use marijuana for medical purposes said the chances of quick passage is unlikely.

The spotlight on whether Democratic Gov. Pat Quinn and legislators can come together on financial changes to the state's $96.8 billion government worker pension debt intensified Sunday. House Republican leader Tom Cross of Oswego signed onto a plan offered by two House Democrats and urged GOP members to support it.

Still, Cross acknowledged that Senate President John Cullerton believes a different measure is the only one that meets a state constitutional prohibition against impairing or diminishing public pensions. Cullerton's version, previously passed by the Senate, offers state employees a trade of access to state health care in return for a reduction in retirement benefits.

"Nobody has any idea what the court's going to do," Cross said. "We all have lawyers. There are a lot of lawyers in Chicago. People have opined on what works and doesn't work. The reality is, nobody knows."

Quinn spokeswoman Brooke Anderson said the administration, which wants the package passed before a new Legislature is seated Wednesday, is "encouraged with the momentum."

The pension proposal's fate is uncertain should it pass the House. The Senate went home Thursday but Cullerton left open the possibility of coming back. Cullerton spokeswoman Rikeesha Phelon said senators would return to Springfield Tuesday "to review and hear" a significant pension reform bill if one is passed by the House.

"I can't make any predictions beyond that," she said.

When the governor and legislative leaders met Saturday, Cullerton said at various points he would lobby against the House plan, Cross said. But Cross also said Cullerton indicated that he would allow for a Senate vote if the pension measure passed the House.

Still, if Cullerton balks at the House pension plan, Springfield could devolve into an all-too-familiar political game: The House passes one version of legislation, the Senate passes another, lawmakers pat themselves on the back and then blame the other chamber for failing to achieve needed reform.

Among the key features of the House plan is a freeze on cost-of-living increases for all workers and retirees for as long as six years, although the length of time was still under discussion Sunday night. Once the cost-of-living bumps resume, they would apply only to the first $25,000 of pensions. The inflation adjustments also would not be awarded until a person hits 67, a major departure among public employees who have been allowed to retire much earlier in some cases and begin reaping the benefits of the annual increases immediately.

Under the proposal, employee contributions to pensions would increase 1 percentage point the first year and 1 percentage point the second year. A lid would be put on the size of the pensionable salary based on a Social Security wage base or their current salary, whichever is higher.

The goal is to put in place a 30-year plan that would fully fund the Illinois pension systems, which are considered the worst-funded in the nation.

Meanwhile, a proposal to allow undocumented immigrants to qualify for Illinois driver's licenses could get its first House test Monday. Sponsoring Rep. Eddie Acevedo, D-Chicago, said he would call the Senate-passed bill on the House floor if it advances from committee.

Also Sunday, a House panel defeated a bill to require companies to file public disclosure forms when they pay no state income taxes.

rlong@tribune.com

rap30@aol.com

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Alleged Ohio rapists may not get fair trial: defendant’s lawyer

(Reuters) – Two Ohio high-school football players accused of raping a teenage girl may not get a fair trial after a photo and video allegedly associated with the case were posted on the Internet by the computer hacking group Anonymous, a lawyer for one of the accused said on Friday.

Ma’lik Richmond and Trenton Mays, both 16 and members of the Steubenville High School football team, are charged with raping a 16-year-old fellow student last August, according to statements from their attorneys to local and national media.

Their juvenile court trial is scheduled for February in Steubenville, a city of 19,000 about 40 miles west of Pittsburgh.

The case shot to national prominence this week when Anonymous activists made public a picture allegedly of the rape victim, being carried by her wrists and ankles by two young men, and of a video that showed several other young men joking about an alleged assault.

Richmond’s lawyer, Walter Madison, said on CNN that his client was one of the young men in the photograph, but does not appear in the video.

But the picture “is out of context,” Madison said. “That young lady is not unconscious,” as has been widely reported.

“A right to a fair trial for these young men has been hijacked,” Madison said, adding that social media episodes such as this have become a major threat to a criminal defendant’s right to a fair trial.

“It’s very, very serious and fairness is essential to getting the right decision here,” he said.

Mays’ attorney Adam Nemann could not immediately be reached for comment on Friday. In an interview on Thursday with Columbus, Ohio, broadcaster WBNS-10TV, Nemann raised concerns about the effect the Anonymous postings could have on potential witnesses in the case.

“This media has become so astronomically ingrained on the Internet and within that society, I am concerned witnesses might not want to come forward at this point. I would be surprised now, if there weren’t witnesses now who might want to start taking the Fifth Amendment,” Nemann told the station.

The Fifth Amendment to the U.S. Constitution offers protection against self-incrimination in criminal proceedings.

The case has also been a challenge for local officials because of conflicts of interest. Both the local prosecutor and police have close ties to the school that the defendants attend.

As a result, the case is being investigated and prosecuted by Ohio Attorney General Mike DeWine’s office.

Interviewed on CNN on Friday, DeWine said it was not unusual for his office to prosecute or investigate cases in small towns where close ties within the community caused conflicts of interest to arise.

He also voiced concern about how social media may affect the case.

“This case needs to be tried not in the media, not in social media,” DeWine said.

He said Anonymous’ attempt to shame the alleged attackers had actually harmed the victim.

Not only is the victim hurt by the initial crime, but “every time something goes up on the Internet, the victim is victimized again,” DeWine said.

(Reporting by Dan Burns and Peter Rudegeair; Editing by Bernadette Baum)

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Alarm in Albuquerque Over Plan to End Methadone for Inmates

Mark Holm for The New York Times

Officials at New Mexico’s largest jail want to end its methadone program. Addicts like Penny Strayer hope otherwise.

ALBUQUERQUE — It has been almost four decades since Betty Jo Lopez started using heroin.

Her face gray and wizened well beyond her 59 years, Ms. Lopez would almost certainly still be addicted, if not for the fact that she is locked away in jail, not to mention the cup of pinkish liquid she downs every morning.

“It’s the only thing that allows me to live a normal life,” Ms. Lopez said of the concoction, which contains methadone, a drug used to treat opiate dependence. “These nurses that give it to me, they’re like my guardian angels.”

For the last six years, the Metropolitan Detention Center, New Mexico’s largest jail, has been administering methadone to inmates with drug addictions, one of a small number of jails and prisons around the country that do so.

At this vast complex, sprawled out among the mesas west of downtown Albuquerque, any inmate who was enrolled at a methadone clinic just before being arrested can get the drug behind bars. Pregnant inmates addicted to heroin are also eligible.

Here in New Mexico, which has long been plagued by one of the nation’s worst heroin scourges, there is no shortage of participants — hundreds each year — who have gone through the program.

In November, however, the jail’s warden, Ramon Rustin, said he wanted to stop treating inmates with methadone. Mr. Rustin said the program, which had been costing Bernalillo County about $10,000 a month, was too expensive.

Moreover, Mr. Rustin, a former warden of the Allegheny County Jail in Pennsylvania and a 32-year veteran of corrections work, said he did not believe that the program truly worked.

Of the hundred or so inmates receiving daily methadone doses, he said, there was little evidence of a reduction in recidivism, one of the program’s main selling points.

“My concern is that the courts and other authorities think that jail has become a treatment program, that it has become the community provider,” he said. “But jail is not the answer. Methadone programs belong in the community, not here.”

Mr. Rustin’s public stance has angered many in Albuquerque, where drug addiction has been passed down through generations in impoverished pockets of the city, as it has elsewhere across New Mexico.

Recovery advocates and community members argue that cutting people off from methadone is too dangerous, akin to taking insulin from a diabetic.

The New Mexico office of the Drug Policy Alliance, which promotes an overhaul to drug policy, has implored Mr. Rustin to reconsider his stance, saying in a letter that he did not have the medical expertise to make such a decision.

Last month, the Bernalillo County Commission ordered Mr. Rustin to extend the program, which also relies on about $200,000 in state financing annually, for two months until its results could be studied further.

“Addiction needs to be treated like any other health issue,” said Maggie Hart Stebbins, a county commissioner who supports the program.

“If we can treat addiction at the jail to the point where they stay clean and don’t reoffend, that saves us the cost of reincarcerating that person,” she said.

Hard data, though, is difficult to come by — hence the county’s coming review.

Darren Webb, the director of Recovery Services of New Mexico, a private contractor that runs the methadone program, said inmates were tracked after their release to ensure that they remained enrolled at outside methadone clinics.

While the outcome was never certain, Mr. Webb said, he maintained that providing methadone to inmates would give them a better chance of staying out of jail once they were released. “When they get out, they won’t be committing the same crimes they would if they were using,” he said. “They are functioning adults.”

In a study published in 2009 in The Journal of Substance Abuse Treatment, researchers found that male inmates in Baltimore who were treated with methadone were far more likely to continue their treatment in the community than inmates who received only counseling.

Those who received methadone behind bars were also more likely to be free of opioids and cocaine than those who received only counseling or started methadone treatment after their release.

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Chicago restaurateurs shrug off economic worries

Chicago may have lost a few of its Michelin-starred restaurants in 2012 and waved goodbye to the inimitable Charlie Trotter's, but the higher-end restaurant scene is powering up in ways not seen since prerecession days, according to industry players and observers.

Local operators with a hit or two are embarking on ambitious ventures, though keeping an eye on startup costs and menu prices. A handful of chefs with established followings, among them Curtis Duffy and Iliana Regan, are sticking out their necks with riskier fine-dining ventures. And some prominent out-of-towners are investing on a grand scale, with a Del Frisco's Double Eagle Steakhouse just opened in the former Esquire Theater on Oak Street, and an Italian food and wine marketplace, Eataly, planned for the former ESPN Zone site in River North.

The flurry of activity is seen by some as a signal the economy has stabilized, at least for now.

"People are out spending money again, and corporations are hosting expensive dinners again, and there was a period when that was not happening," said Neil Stern, senior partner at McMillanDoolittle, a retail consultancy. "It affects the high end significantly."

Still, the bubbling of enthusiasm for the upper end of the market is something of an anomaly. The rebound in Chicago restaurant startups across all price ranges is tenuous. The city issued 1,458 new retail food licenses in 2012, only 11 more than in 2010 and below the 1,589 issued in 2007, the year leading into the recession.

Just as there are new arrivals, there were some big losses last year in this notoriously volatile business. Notable exits include Charlie Trotter's, Crofton on Wells, Il Mulino, One Sixtyblue, Pane Caldo and Ria at the Waldorf Astoria, one of several luxury hotels to step away from fine dining.

Weak economic conditions played a role for some, and the forecast for 2013 remains uncertain.

"It's a precarious market, and one economic blip really can take demand out of the market very, very quickly," Stern said.

Still, upscale-restaurant operators are moving ahead, betting on Chicagoans' seemingly endless fascination with food trends, dining out and the city's robust roster of accomplished chefs.

"When I was a child, people would go to each other's homes for a dinner party every week and would rarely go to restaurants — now it is almost the opposite," said David Flom, who with his business partner Matthew Moore hit a grand slam with Chicago Cut Steakhouse in River North, which opened in 2010. Steaks range from $34 to $114; soup, salad, sauces, vegetables and potatoes all are extra.

In December, they opened The Local at the Hilton Suites in Streeterville, a more modestly priced venue where executive chef Travis Strickland, formerly of the Inn at Blackberry Farm, is serving locally sourced comfort food. Meatloaf made with prime dry-aged beef goes for $24, rotisserie chicken pot pie for $22.

"People can use The Local as an everyday restaurant," Flom said. "People can say, 'Let's just grab a burger at The Local.' It doesn't have to be $100 a person, it can be $25."

At Chicago Cut, the average check, per person, is $82, including drinks, versus $44 at The Local, he said.

Industry observer Ron Paul, president and CEO of Technomic Inc., said he is particularly intrigued by the growing strength of such emerging independents, who are nipping at the heels of Lettuce Entertain You Enterprises Inc., even as that homegrown powerhouse continues to churn out winning concepts.

As restaurant real estate broker Randee Becker, president of Restaurants!, put it: "People who are doing north of $8 million to $10 million of sales are expanding in a big way."

After establishing a high-style, large-scale foothold in River North with the opening of Epic in 2009, proprietors Steve Tavoso and Jeff Krogh last fall embarked on a second act in the neighborhood. They engaged prominent chefs — Thomas Elliott Bowman and Ben Roche, who worked together at Moto — but kept their initial investment more modest this time.

Their latest entry, the eclectic Baume & Brix, opened last fall in the former Rumba space, which had most of the necessary mechanical, electrical, plumbing and kitchen elements in place. Startup costs were about $1.5 million, compared with more than $5 million spent to open Epic. "I took raw space (for Epic) — I would never do that again," Tavoso recalled.

Mercadito Hospitality, whose Chicago offerings include high-energy Latin American tapas spots Mercadito and Tavernita, also is watching its pennies on startups, its most recent being Little Market Brasserie in the Talbott Hotel. Led by chef/partner Ryan Poli, the restaurant has quietly opened with a Parisian decor and American small plates. Its grand opening is expected Jan. 18.

"We are aware of the fact the economy is not fully recovered, so we try to keep our expenses down without sacrificing quality," said managing partner Alfredo Sandoval.

The Chicago-based group intends to keep expanding. It just signed a lease at a River North spot with a 4 a.m. liquor license, with plans to open a drinks-focused venue there in 2013.

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Englewood shooting victim dies

An afternoon shooting in the Englewood neighborhood has left a man dead on a day in which at least 10 people have been shot since 12 a.m., according to authorities.

At 3:10 p.m. someone shot a male victim multiple times in the abdomen in the 5500 block of South Loomis Boulevard, News Affairs Officer Daniel O’Brien said.

The victim, a man in his 20s, was taken from the scene of the shooting in the Englewood neighborhood to John H. Stroger Jr. Hospital of Cook County, where he was pronounced dead at 3:52 p.m., according to the Cook County medical examiner's office.

Saturday night about 8:30 p.m., a male was shot in the West Town neighborhood, police said.

The male, whose age and condition were not immediately released, was taken from the 1800 block of West Maypole Avenue to Stroger with a gunshot wound to the buttocks.

About 7:10 p.m., two men were injured in a shooting in the 5100 block of West Oakdale Avenue, O'Brien said.

A 25-year-old man was taken in critical condition to Advocate Illinois Masonic Medical Center with a gunshot wound to the back, O'Brien said. A 21-year-old man was taken to the same hospital in good condition with a gunshot wound to the wrist, O'Brien said.

The shooting happened in the Cragin neighborhood on the Northwest Side.

Late Saturday morning, a shooting in the Back of the Yards neighborhood left another victim shot in the abdomen and seriously wounded.

Someone shot the male in the abdomen at 11:48 a.m. in the 4500 block of South Marshfield Avenue, according to Chicago Police Department News Affairs Officer Michael Sullivan.

He was taken to John H. Stroger, Jr. Hospital of Cook County in serious condition, Sullivan said.

The circumstances surrounding the shooting were not known immediately but Sullivan said no one was arrested.

Earlier Saturday, four people were shot in two separate incidents before the sun rose, and a fifth man was killed in a West Side shooting.

chicagobreaking@tribune.com

Twitter: @ChicagoBreaking

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We Salute the First Baby Senator

We realize there’s only so much time one can spend in a day watching new trailers, viral video clips, and shaky cell phone footage of people arguing on live television. This is why every day The Atlantic Wire highlights the videos that truly earn your five minutes (or less) of attention. Today:

RELATED: Claire McCaskill and How to Attack the Opponent You’re Rooting For

Here’s our suggestion to improve the (already pretty hilarious) swearing-in process for U.S. Senators: Each new member of Congress must bring a cute baby.

RELATED: Rand Paul Doesn’t Want You to Go to Jail for Smoking Pot

RELATED: Larry David’s Two-Minute Guide to Etiquette

Apparently the BBC has decided to market a line of lunch boxes specifically made for hungry polar bears. They are still working out the kinks: 

RELATED: Homer Simpson, Fox News Pundit; Books After Dark

RELATED: Bo Obama Stays On Message; Sarah Palin Can See HBO in Her House

The Golden Globes will be bittersweet this year. Don’t get us wrong — we’re really excited to watch Amy Poehler and Tina Fey entertain us. But we’ll also be also really sad when this thing is over because it means the end of these promos:

And finally, it’s Friday. And it’s time to dance. Enjoy your weekend. 

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Despite New Health Law, Some See Sharp Rise in Premiums

Health insurance companies across the country are seeking and winning double-digit increases in premiums for some customers, even though one of the biggest objectives of the Obama administration’s health care law was to stem the rapid rise in insurance costs for consumers.

Bob Chamberlin/Los Angeles Times

Dave Jones, the California insurance commissioner, said some insurance companies could raise rates as much as they did before the law was enacted.

Particularly vulnerable to the high rates are small businesses and people who do not have employer-provided insurance and must buy it on their own.

In California, Aetna is proposing rate increases of as much as 22 percent, Anthem Blue Cross 26 percent and Blue Shield of California 20 percent for some of those policy holders, according to the insurers’ filings with the state for 2013. These rate requests are all the more striking after a 39 percent rise sought by Anthem Blue Cross in 2010 helped give impetus to the law, known as the Affordable Care Act, which was passed the same year and will not be fully in effect until 2014.

 In other states, like Florida and Ohio, insurers have been able to raise rates by at least 20 percent for some policy holders. The rate increases can amount to several hundred dollars a month.

The proposed increases compare with about 4 percent for families with employer-based policies.

Under the health care law, regulators are now required to review any request for a rate increase of 10 percent or more; the requests are posted on a federal Web site, healthcare.gov, along with regulators’ evaluations.

The review process not only reveals the sharp disparity in the rates themselves, it also demonstrates the striking difference between places like New York, one of the 37 states where legislatures have given regulators some authority to deny or roll back rates deemed excessive, and California, which is among the states that do not have that ability.

New York, for example, recently used its sweeping powers to hold rate increases for 2013 in the individual and small group markets to under 10 percent. California can review rate requests for technical errors but cannot deny rate increases.

The double-digit requests in some states are being made despite evidence that overall health care costs appear to have slowed in recent years, increasing in the single digits annually as many people put off treatment because of the weak economy. PricewaterhouseCoopers estimates that costs may increase just 7.5 percent next year, well below the rate increases being sought by some insurers. But the companies counter that medical costs for some policy holders are rising much faster than the average, suggesting they are in a sicker population. Federal regulators contend that premiums would be higher still without the law, which also sets limits on profits and administrative costs and provides for rebates if insurers exceed those limits.

Critics, like Dave Jones, the California insurance commissioner and one of two health plan regulators in that state, said that without a federal provision giving all regulators the ability to deny excessive rate increases, some insurance companies can raise rates as much as they did before the law was enacted.

“This is business as usual,” Mr. Jones said. “It’s a huge loophole in the Affordable Care Act,” he said.

While Mr. Jones has not yet weighed in on the insurers’ most recent requests, he is pushing for a state law that will give him that authority. Without legislative action, the state can only question the basis for the high rates, sometimes resulting in the insurer withdrawing or modifying the proposed rate increase.

The California insurers say they have no choice but to raise premiums if their underlying medical costs have increased. “We need these rates to even come reasonably close to covering the expenses of this population,” said Tom Epstein, a spokesman for Blue Shield of California. The insurer is requesting a range of increases, which average about 12 percent for 2013.

Although rates paid by employers are more closely tracked than rates for individuals and small businesses, policy experts say the law has probably kept at least some rates lower than they otherwise would have been.

“There’s no question that review of rates makes a difference, that it results in lower rates paid by consumers and small businesses,” said Larry Levitt, an executive at the Kaiser Family Foundation, which estimated in an October report that rate review was responsible for lowering premiums for one out of every five filings.

Federal officials say the law has resulted in significant savings. “The health care law includes new tools to hold insurers accountable for premium hikes and give rebates to consumers,” said Brian Cook, a spokesman for Medicare, which is helping to oversee the insurance reforms.

“Insurers have already paid $1.1 billion in rebates, and rate review programs have helped save consumers an additional $1 billion in lower premiums,” he said. If insurers collect premiums and do not spend at least 80 cents out of every dollar on care for their customers, the law requires them to refund the excess.

As a result of the review process, federal officials say, rates were reduced, on average, by nearly three percentage points, according to a report issued last September.

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'Ones to Watch' in 2013

Tom Ricketts will try to finally clinch a deal to improve Wrigley Field with some taxpayer support.

Andrew Mason will fight for his legacy, and his job, at Groupon.

And Lewis Campbell hopes to turn around Navistar to the point that his services are no longer needed.

Tribune editors and reporters identified some of the Chicago business executives most likely to make news in 2013. Here are the "Ones to Watch."

Tom Ricketts

Title: Chairman, Chicago Cubs

Why we're watching: Expect City Hall to cut a deal with the Ricketts family, owner of the Cubs, in 2013 to help finance a $300 million renovation of Wrigley Field.

No one's talking specifics. Ricketts last proposed using $150 million of city amusement tax revenue to help pay for it. He would raise the remaining $150 million by extracting additional revenue from relaxed rules on advertising and concerts at the ballpark.

But that level of public subsidy is entirely off the table, according to a source close to the team. Asked whether Ricketts would accept less taxpayer assistance in exchange for greater freedom from historic preservation and other regulations, he said "probably," but that my description of the trade-off was "oversimplified."

"We have to compete against rooftops every day that … undercut us on price," Ricketts said. "We have limits on what we can do to our stadium and inside our stadium. We have limits on what time we can hold games and when we can host events. Our position is: Let us run our business. And if we can do that, we can unlock a lot of economic potential."

The Lake View Citizens' Council reportedly is open to more night games and concerts in exchange for contributions from the Cubs to community projects and traffic- and parking-related protections. Still, Ald. Tom Tunney, whose district includes Wrigley, said he opposes a Cubs request to open Sheffield Avenue for "family-fun entertainment" during games, among other issues.

"There will be some decisions made on a community level, on a zoning level," said Tunney, who called 2013 a "pivotal" year for the team. "As for the public financing, that's bigger than me."

Ricketts said he had not spoken in the past six months with either Mayor Rahm Emanuel or the city's chief financial officer, Lois Scott. "Our teams talk to each other," Ricketts said. "And that's not necessarily unusual. It's not like we can just not talk to the city. But no matter when or what a final deal looks like, everyone has got incentives to get that done in 2013."

Andrew Mason

Title: Founder and CEO, Groupon

Why we're watching: One year from now, will Mason still be CEO of Groupon?

In November, within days of a tech conference and a company board meeting, a source close to Groupon's board anonymously suggested to an influential tech journalist that the board might fire Mason at its meeting.

If the leaker had been Groupon chairman Eric Lefkofsky, Mason would have been out of a job by now.

Mason's future hinges on his relationship with Lefkofsky. In addition to being Mason's boss, Lefkofsky is the daily deal company's largest shareholder. He also gave Mason $1 million to launch the company.

And Mason always has spoken of Lefkofsky with reverence and affection. At the height of Groupon's euphoria, he shared credit with the veteran entrepreneur at every turn, telling me in 2010: "Eric's creative and unbelievably smart and if I'd never met him, I'd never been able to be the CEO of a lemonade stand."

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