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Obama's boldest move on carbon comes with perils

Written By Unknown on Sabtu, 31 Mei 2014 | 22.27

WASHINGTON — The new pollution rule the Obama administration announces Monday will be a cornerstone of President Barack Obama's environmental legacy and arguably the most significant U.S. environmental regulation in decades.

But it's not one the White House wanted.

As with other issues, the regulation to limit the pollution blamed for global warming from power plants is a compromise for Obama, who again finds himself caught between his aspirations and what is politically and legally possible.

It will provoke a messy and drawn-out fight with states and companies that produce electricity, and may not be settled until the eve of the next presidential election in 2016, or beyond.

"It's going to be like eating spaghetti with a spoon. It can be done, but it's going to be messy and slow," said Michael Gerrard, director of the Center for Climate Change Law at Columbia University.

At the crux of the problem is Obama's use of a 30-year-old law that was not intended to regulate the gases blamed for global warming. Obama was forced to rely on the Clean Air Act after he tried and failed to get Congress to pass a new law during his first term. When the Republicans took over the House, the goal became impossible.

The new rule, as the president described it in a news conference in 2010, is another way of "skinning the cat" on climate change.

"For anybody who cares about this issue, this is it," Heather Zichal, Obama's former energy and climate adviser, said in an interview with The Associated Press. "This is all the president has in his toolbox."

The rule will tap executive powers to tackle the single largest source of the pollution blamed for heating the planet: carbon dioxide emitted from power plants. They produce about 40 percent of the electricity in the nation and about one-third of the carbon pollution that makes the U.S. the second largest emitter of greenhouse gases.

"There are no national limits to the amount of carbon pollution that existing plants can pump into the air we breathe. None," Obama said Saturday in his weekly radio and Internet address.

"We limit the amount of toxic chemicals like mercury, sulfur, and arsenic that power plants put in our air and water. But they can dump unlimited amounts of carbon pollution into the air. It's not smart, it's not safe, and it doesn't make sense," he said.

While Obama has made major reductions in carbon pollution from cars and trucks by increasing fuel efficiency, manufacturers cooperated after an $85 billion government bailout.

His rule requiring new power plants to capture some of their carbon dioxide and bury it underground, while significant, has little real-world impact because few new coal plants are expected to be built due to market conditions.

Both those rules also prescribed technological fixes or equipment to be placed on the automobile or power plant.

The rule released Monday, though, would allow states to require power plants to make changes such as switching from coal to natural gas or enact other programs to reduce demand for electricity and produce more energy from renewable sources.

They also can set up pollution-trading markets as 10 other states already have done to offer more flexibility in how plants cut emissions. Plans from states won't be due until 2016, but the rule will become final a year before.

That hasn't stopped the hoopla over the proposal.

Some Democrats worried about re-elections have asked the White House, along with Republicans, to double the length of the rule-making comment period, until after this November's elections.

The Chamber of Commerce said the rule would cost $50 billion to the economy and kill jobs. Harvard University said the regulation wouldn't just reduce carbon but also would have a beneficial side effect: cleansing the air of other pollutants.

Environmental groups, meanwhile, are taking credit for helping shape it and arguing it would create jobs, not eliminate them.

Rep. Nick Rahall, a Democrat from West Virginia, which gets 96 percent of its power from coal, said Thursday that while he didn't have the details, "from everything we know we can be sure of this: It will be bad for jobs." Rahall faces a difficult re-election in November.

Obama said such pessimistic views are wrong.

"Now, special interests and their allies in Congress will claim that these guidelines will kill jobs and crush the economy," Obama said in his address. "Let's face it, that's what they always say."

Environmental Protection Agency Administrator Gina McCarthy and other government officials have promoted the proposal's flexibility as way to both cut emissions and ensure affordable electricity. But that flexibility could backfire.

Some states, particularly those heavily reliant on fossil fuels, could resist taking action, leading the federal government to take over the program. That happened in Texas when it initially refused to issue greenhouse gas permits through another air pollution program.

Lawyers for states and industry also are likely to argue that controls far afield of the power plant violate the law's intent.

The rule probably would push utilities to rely more on natural gas because coal emits about twice as much carbon dioxide. The recent oil and gas drilling boom in the U.S. has helped lower natural gas prices and, by extension, electricity prices. But it still generally is cheaper to generate power with coal than with natural gas. Also, natural gas prices are volatile and can lead to fluctuations in power prices.

The rule will push the U.S. closer to the 17 percent reduction by 2020 it promised other countries at the start of Obama's presidency, it will fall far short of the global reductions scientists say are needed to stabilize the planet's temperature. That's because U.S. fossil-fueled power plants account for 6 percent of global carbon dioxide emissions.

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Follow Dina Cappiello's environment coverage on Twitter at http://www.twitter.com/dinacappiello


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Mass. Gov. Patrick heading to United Arab Emirates

BOSTON — Massachusetts Gov. Deval is setting off on the second leg of his latest trade mission, heading from Israel to the United Arab Emirates.

On Monday, Patrick is scheduled to meet with the Mubadala Development Company, an investment and development firm in Abu Dhabi, to discuss increased economic opportunities between Massachusetts and the emirate.

Patrick is also set to meet with representatives of the United Arab Emirates Ministry of Economy and visit the Masdar Institute of Science and Technology, a university which studies issues related to sustainability.

Patrick will also meet with U.S. Ambassador to the UAE Michael Corbin on Monday.

Patrick has said the goal of the nine-day trip is to expand opportunities for economic development and job creation in the innovation economy.

Since taking office, Patrick has led trade missions to 13 countries.


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New drugs may make a dent in lung, ovarian cancer

CHICAGO — For the first time in a decade, an experimental drug has extended the life of patients with advanced lung cancer who relapsed after standard chemotherapy.

But the benefit in the study was so small — six extra weeks, on average — that it is raising fresh questions about the value of some costly new cancer medicines.

Eli Lilly and Co.'s drug Cyramza (sih-RAM-zuh) was tested in more than 1,200 patients. It is sold now for stomach cancer and costs $6,000 per infusion.

The study was discussed Saturday at a cancer conference in Chicago where doctors also reported progress with new drugs against relapsed ovarian cancer and chronic lymphocytic leukemia, the most common type of leukemia in adults.


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US law prods states to revisit health care rules

CONCORD, N.H. — Prompted by the health care overhaul law, several states are updating their rules for insurance networks to better reflect who is covered and how people shop for and use their benefits.

Washington state just implemented new regulations, and discussions are underway in several others, including Arkansas, Minnesota, California and New Hampshire. Although complaints about one insurer's network prompted New Hampshire's decision to reconsider its rules, insurance officials say the old standards haven't kept up with changes in how and where people get health care.

Washington's rules took effect last week and were designed to balance access with affordability while giving consumers more information about the networks. Insurance Commissioner Mike Kreidler says the health overhaul law increased benefits but also requires consumers to play a bigger role in shopping for insurance.


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How Obama's power plant emission rules will work

WASHINGTON — The Obama administration on Monday plans to make public the first rules limiting carbon emissions from the thousands of power plants.

The pollution controls form the cornerstone of President Barack Obama's campaign to combat climate change and a key element of his legacy.

Obama says the rules are essential to curb the heat-trapping greenhouse gases blamed for global warming. Critics contend the rules will kill jobs, drive up electricity prices and shutter plants across the country.

Environmentalists and industry advocates alike are eagerly awaiting the specifics, which the Environmental Protection Agency will make public for the first time on Monday and Obama will champion from the White House.

While the details remain murky, the administration says the rules will play a major role in achieving the pledge Obama made in Copenhagen during his first year in office to cut America's carbon emissions by about 17 percent by 2020.

Some questions and answers about the proposal:

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Q: How does the government plan to limit emissions?

A: Unable to persuade Congress to act on climate change, Obama is turning to the Clean Air Act. The 1970s-era law has long been used to regulate pollutants like soot, mercury and lead but has only recently been applied to greenhouse gases.

Unlike with new power plants, the government can't regulate existing plant emissions directly. Instead, the government will issue guidelines for cutting emissions, then each state will develop its own plan to meet those guidelines. If a state refuses, the EPA can create its own plan.

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Q: Why are these rules necessary?

A: Power plants are the single largest source of greenhouse gas emissions in the U.S. Environmentalists and the White House say without bold action, climate change will intensify and endanger the public's well-being around the world. In its National Climate Assessment this year, the administration said warming and erratic weather will become increasingly disruptive unless curtailed.

"This is not some distant problem of the future. This is a problem that is affecting Americans right now," Obama said in May.

The United States is only one player in the global climate game. These rules won't touch carbon emissions in other nations whose coal plants are even dirtier. But the White House believes that leading by example gives the U.S. more leverage to pressure other countries to reduce their own emissions.

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Q: How steep will the reductions be?

A: We don't know.

The administration hasn't said whether it will set one universal standard or apply different standards in each state. But Obama's senior counselor, John Podesta, said the reductions will be made "in the most cost-effective and most efficient way possible," by giving flexibility to the states.

That could include offsetting emissions by increasing the use of solar and nuclear power, switching to cleaner-burning fuels like natural gas or creating efficiency programs that reduce energy demand. States might also pursue an emissions-trading plan — also known as cap-and-trade — as several northeast states have already done.

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Q: How will they affect my power bill? What about the economy?

A: It depends where you live. Different states have a different mixes of coal versus gas and other fuels, so the rules will affect some states more than others. Dozens of coal-burning plants have already announced they plan to close.

Still, it's a good bet the rules will drive up electricity prices. The U.S. relies on coal for 40 percent of its electricity, and the Energy Department predicts retail power prices will rise this year because of environmental regulations, economic forces and other factors.

Environmentalists argue that some of those costs are offset by decreased health care costs and other indirect benefits. They also say the transition toward greener fuels could create jobs.

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Q: Doesn't Obama need approval from Congress?

A: Not for this. A 2007 Supreme Court ruling gave the EPA the green light to regulate carbon-dioxide under the Clean Air Act. But that doesn't mean there won't be fierce opposition and drawn-out litigation. The government is expecting legal challenges and is preparing to defend the rules in court if necessary.

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Q: Is this the final step?

A: Not even close. After the draft rule is proposed, there's a full year for public comment and revisions. Then states have another year to submit their implementation plans to the EPA.

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Associated Press writers Jim Kuhnhenn and Dina Cappiello contributed to this report.

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Reach Josh Lederman at http://twitter.com/joshledermanAP


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Radian tries to make its mark in luxury market

Written By Unknown on Jumat, 30 Mei 2014 | 22.27

Designed to resemble a boutique hotel and with condo-level finishes, the just-opened 240-unit Radian luxury complex is hoping to draw the city's well-heeled renters.

The 26-story, $130 million project developed by Forest City Enterprises and the Swampscott-based Hudson Group North America sits along the Greenway at the nexus of Chinatown, the Leather District and the Financial District.

And while it doesn't have a pool like the nearby Kensington or sports courts like The Arlington or The Victor, or even an outdoor roof deck, it's trying to differentiate itself in other ways.

"We don't have some of the bells and whistles other buildings do, but we do have two things that stand out — our location is better and our service is higher quality," said property manager Michael Cheek of Forest City Enterprises.

If you have your groceries delivered, the Radian staff will take them up to your unit and put the perishables away. When you come in from work, there are refresher towels waiting in the lobby and there are steam towels in the gym when you finish a workout.

Have visitors coming to stay? They can rent an apartment for $150-$200 a night and can use the building's amenities.

But all the high-end service comes at a price. The 563-square-foot studios rent for $2,960 to $3,555. One-bedroom apartments, ranging from 617 square feet to 911 square feet, cost $3,400 to $5,100. Two bedrooms, from 1,049 to 1,163 square feet, run from $4,160 to $6,235 a month. And that does not include utilities (everything's electric) or garage parking, which is $400 a month and up.

Only 13 of the 240 units have been rented so far, Cheek said. To spur leasing, Radian is offering concessions — a free month's rent for those signing 12-month leases, and letting tenants lock in rent with two-year leases.

"We think there's a lot of young professionals who have good jobs downtown who want to reward themselves by having a nice place to live," said Cheek.

The fifth floor has a fitness center and yoga studio, as well as a residents lounge overlooking the city. There's also a private conference room to conduct business.

The units have contemporary two-tone kitchen finishes and lots of natural light from oversized windows. Living area floors are "Plyboo," a mixture of plywood and bamboo. The bathrooms have porcelain tile floors, white quartz sinks and tiled walk-in showers. And every unit has a Bosch washer and dryer.

Cheek said the most popular floor plan so far has been the rear "bullnose" apartments that feature living/dining areas with curving glass walls of windows with great downtown views. We looked at a 911-square-foot one bedroom plus study "flex" unit on the 17th floor with an asking rent of about $4,400. It also features a kitchen with Silestone countertops and Whirlpool stainless-steel appliances.

The 4,500-square-foot ground-floor retail space will be leased by four-time James Beard nominee chef Matt Jennings for a restaurant called Townsman, which will open Oct. 1.

"The people who will live here have busy lives, and we want to make living here as easy, stress-free and convenient as possible," Cheek said.


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The Ticker

Romney, Peter Lynch sell local properties

Mitt and Ann Romney are pulling up roots in Belmont — and apparently turning a profit.

Massachusetts' former first couple sold their South Cottage Road condo earlier this month for $1.2 million, according to property records.

Romney, the former Bay State governor and 2012 presidential candidate, and his wife, Ann, had owned the condo at the Woodlands at Belmont Hill since June 2010, when they purchased it for $850,000, records show.

Meanwhile, legendary Fidelity money manager Peter Lynch and his wife, Carolyn, have sold their Beacon Hill home at 51 Chestnut St. in Boston at a loss, for 
$4.5 million, according to Registry of Deeds documents. The circa-1830, Federal-style townhouse had been on the market since 2010, when the asking price was $6.85 million. The Lynches bought it for 
$5.125 million in 2005.

Lincoln Property buys 40 Court St.

Dallas-based Lincoln Property Co. has purchased the 110,000-square-foot office building at 40 Court St. in Boston's Financial District for $31 million, according to Registry of Deeds documents. The seller, New York real estate private equity firm Brickman, bought the property for $37 million in 2007 at the height of the Boston real estate market.

Built in 1912, the United States Trust Co. or Scollay Building's tenants include the Oceanaire Seafood Room, Massachusetts League of Community Health Centers, the Anti-Defamation League of New England and Kearney, Donovan & McGee P.C.

States release zero-emissions auto plan

Eight states on the East and West coasts including Massachusetts released a plan yesterday to work together to put 3.3 million zero-emission vehicles on the nation's roads by 2025.

The so-called "action plan" follows last year's memorandum of understanding announced by the governors of the states, including California and New York. The other states in the pact are Maryland, Oregon, Connecticut, Rhode Island and Vermont. The states represent about 23 percent of the U.S. auto market.

Car manufacturers applauded the action plan but said a lot of work needs to be done to meet the
3.3 million goal with zero-emission vehicles making up less than 1 percent of nationwide new car sales.

Today

 Commerce Department releases personal income and spending for April.


THE SHUFFLE

The Parthenon Group has named Peter Gates as senior adviser. Gates joins the Global Healthcare Practice, where he will focus on strategy development and value creation in the health care industry. Gates has 25 years of experience as both an executive and a consultant for health care companies.


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Panel sees nothing odd on casino vote

The state Gaming Commission yesterday brushed off concerns that Chairman Stephen P. Crosby's decision to recuse himself from discussions over the Boston area's sole casino license could result in a tie vote.

"We're not the first board to have an even number of members (without Crosby)," said Commissioner James F. McHugh. "It's inconceivable to me that we won't reach a decision."

Because of ties to an owner of the Everett land that's the site of Wynn Resorts' proposed casino and his attendance at an opening day party at Suffolk Downs, where Mohegan Sun wants to build, Crosby recused himself earlier this month, leaving the commission with only four members to vote on the Boston-area license.

Yesterday, the commission's general counsel, Catherine Blue, suggested those members discuss ground rules for deliberations and consider what questions they might have for staff and what additional information they might want from the applicants.

The commissioners may even say they have a preference, but still come to a consensus, McHugh said. If they don't, he said, they have the option of telling Wynn and Mohegan Sun to come back with their "best and final offer" to improve their applications.

Although host community hearings are scheduled for June 24 in Revere and June 25 in Everett, a vote on the Boston-area license is not expected until Aug. 29, unless the city goes to arbitration over how much money it's entitled to from Wynn and Mohegan Sun as a surrounding community. In that case, the license may not be awarded until Sept. 12.

A spokeswoman for Mayor Martin J. Walsh yesterday said he met this week with both casino developers, hoping to cut mitigation deals that would preempt a June 16 deadline, after which an arbitrator will decide what Boston deserves. However, she would not provide details of the discussions.

The full commission, including Crosby, expects to award the state's first casino license as early as June 13 in Western Massachusetts, where MGM has proposed an $800 million development in Springfield.

By July, the state's highest court is expected to rule on whether to allow a referendum to repeal the state's 2011 casino law on the November ballot. If the court does allow it, the commission "would have to cross that bridge," said spokeswoman Elaine Driscoll. "But at this point, our licensing process is proceeding."


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Gap filled in downtown

Gap Inc. is seeking workers for a new Gap Outlet that will open in Downtown Crossing — the latest evidence of a looming revival for the Boston shopping district.

The Gap is in talks to open the outlet on Washington Street, across from the Millennium Tower site, in the space previously occupied by the F.Y.E music and video store.

Downtown Crossing has seen heightened interest from retailers and investors in the wake of Millennium Partners starting work on the $630 million Millennium Tower and Filene's building redevelopment — particularly since it announced Arnold Worldwide will relocate its advertising headquarters there in September, and a 30,000-square-foot Roche Bros. supermarket and four-floor Primark store will open in 2015.

"There's clearly more interest," said Ron Druker, a major Downtown Crossing property owner with buildings on Winter, Washington and Bromfield streets, including the Corner Mall. "We get inquiries from brokers and from tenants as to whether or not we have space. We get interest from national and international (companies). It has picked up."

And retail lease prices will only go one way, Druker said — up.

The F.Y.E store closed in January 2012. Next door, the building that once housed a Barnes & Noble has been vacant since the bookseller moved out in the summer of 2006.

"In general, I think there's more activity than we've seen in recent years," said Robert Posner of Commonwealth Holding LP, which owns the former Barnes & Noble space at 395 Washington St.

Since 2010, 35 Downtown Crossing properties have changed hands. In the past year and a half alone, 17 buildings have sold, according to the Downtown Boston Business Improvement District.

"The real estate market is hot, and I think it means people are looking at the district and seeing that it has great value and great potential," BID president Rosemarie Sansone said.

As for retail interest, "there's a lot of movement," according to Sansone. "We see many more people showing spaces every day than we ever have before," she said.

San Francisco-based Gap Inc. did not respond to Herald inquiries.

"The Gap is a well-known brand, and that's exciting," Sansone said. "They have a loyal following."


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How Google got states to legalize driverless cars

MOUNTAIN VIEW, Calif. — About four years ago, the Google team trying to develop cars driven by computers — not people — became convinced that sooner than later, the technology would be ready for the masses. There was one big problem: Driverless cars were almost certainly illegal.

And yet this week, Google said it wants to give Californians access to a small fleet of prototypes it will make without a steering wheel or pedals.

The plan is possible because, by this time next year, driverless cars will be legal in the tech giant's home state.

And for that, Google can thank Google, and an unorthodox lobbying campaign to shape the road rules of the future in car-obsessed California — and maybe even the rest of the nation — that began with a game-changing conversation in Las Vegas.

The campaign was based on a principle that businesses rarely embrace: ask for regulation.

The journey to a law in California began in January 2011 at the Consumer Electronics Show in Las Vegas, where Nevada legislator-turned-lobbyist David Goldwater began chatting up Anthony Levandowski, one of the self-driving car project's leaders. When talk drifted to the legal hurdles, Goldwater suggested that rather than entering California's potentially bruising political process, Google should start small.

Here, in neighboring Nevada, he said, where the Legislature famously has an impulse to regulate lightly.

It made sense to Google, which hired Goldwater.

"The good thing about laws is if they don't exist and you want one — or if they exist and you don't like them — you can change them," Levandowski told students at the University of California, Berkeley in December. "And so in Nevada, we did our first bill."

Up to that point, Google had quietly sent early versions of the car, with a "safety driver" behind the wheel, more than 100,000 miles in California. Eventually, government would catch up, just as stop signs began appearing well after cars rolled onto America's roads a century ago.

If the trigger to act was a bad accident, lawmakers could set the technology back years.

Feeling some urgency, Google bet it could legalize a technology that though still experimental had the potential to save thousands of lives and generate millions in profits.

The cars were their own best salesmen. Nevada's governor and other key policy makers emerged enthusiastic after test rides. The bill passed quickly enough that potential opponents — primarily automakers — were unable to influence its outcome.

Next, Nevada's Department of Motor Vehicles had to write rules implementing the law.

At the DMV, Google had an enthusiastic supporter in Bruce Breslow, then the agency's leader.

Breslow had been fascinated by driverless cars since seeing an exhibit at the 1964 New York World's Fair. Seeing a career-defining opportunity, Breslow shelved other projects and shifted money so he wouldn't have to ask for the $200,000 needed to research and write the rules.

At first, DMV staff panicked — they only had several months to write unprecedented rules on a technology they didn't know. But Google knew the technology, and was eager to help.

"Very few people deeply understand" driverless car technology, said Chris Urmson, the self-driving car pioneer lured from academia who now leads Google's project. Offering policymakers information "to make informed decisions ... is really important to us."

The task fell primarily to David Estrada, at the time the legal director for Google X, the secretive part of the tech giant that houses ambitious, cutting-edge projects. Estrada would trek from San Francisco to Nevada's capital, Carson City, for meetings hosted by DMV staff.

Breslow credited Estrada with making suggestions that made the regulations far shorter, and less onerous, than they would have been. "We quickly jumped in ... to help figure out what the regulation should look like," recalled Estrada.

While others attended the meetings, Google seemed to have a special seat at the table.

Bryant Walker Smith, who teaches the law of self-driving cars as a fellow at Stanford University, described one rule-drafting session where Google — not the DMV — responded to suggestions from auto industry representatives.

"It wasn't always clear who was leading," Smith said. It seemed to him that both Google and the DMV felt ownership of the rules.

By the end of 2011, Nevada welcomed the testing of driverless cars on its roads. Google, however, was focused on its home state, where its Priuses and Lexuses outfitted with radar, cameras and a spinning tower of laser sensors were a regular feature on freeways.

In many ways, Google replicated its Nevada playbook: Frame the debate. Wow potential allies with joy rides. Argue that driverless cars would make roads safer and create jobs.

In January 2012, Google met with state Sen. Alex Padilla, a Massachusetts Institute of Technology engineering graduate. Padilla was intrigued, and agreed to push a bill. Padilla said Nevada's law helped him sell colleagues on the need to act.

"California is home to two things. Number one is the hotbed of innovation and technology. And second, we love our cars. So it only made even more sense to say, 'OK we need to catch up and try and lead the nation,'" Padilla said.

Nevada's swift action, he said, "sent the signal to a lot of colleagues that, 'No, this is not one we want to overthink and study for five years before we take action.'" After all, who in California government wanted a flagship company moving jobs out of the state.

In March 2012, Padilla rode in the driver's seat of a Google car with Levandowski riding shotgun to the news conference announcing his legislation.

In the months that followed, various groups tried to shape Padilla's bill.

One was the Alliance of Automobile Manufacturers, which objected that automakers would be liable for the failure of Google technology strapped onto one of their cars. Trial lawyers, a powerful constituency in the state, successfully lobbied to keep automakers on the hook.

Some inside the Capitol concluded that Padilla was most attuned to Google.

One thing that troubled Howard Posner, then the staffer on the Assembly Transportation Committee responsible for analyzing the bill and suggesting improvements, was that Padilla's legislation would let cars operate without a human present.

Posner argued that lawmakers shouldn't authorize this last step until the technology could handle it. The response, he said, was that Padilla didn't want to do that — "which in my mind meant Google was not willing to do that."

Padilla said that while Google's high profile helped the bill succeed, his office made the decisions. "We're always going to have the final say," he said.

In September 2012, Gov. Jerry Brown went to Google's headquarters and signed Padilla's bill.

Now, California's motor vehicles officials face an end-of-year deadline to write regulations that will allow driverless cars to go from testing to use by the public in June 2015.

At a DMV hearing in March, two Google representatives sat next to DMV staff at the head tables. Their message: Now that self-driving cars were legal, the state should not regulate them too strictly.

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Follow Justin Pritchard at https://twitter.com/lalanewsman


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