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Tue, 2013-12-10 12:01Steve Horn
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TransCanada Begins Injecting Oil Into Keystone XL Southern Half; Exact Start Date A Mystery

Keystone XL's southern half is one step closer to opening for business. TransCanada announced that “on Saturday, December 7, 2013, the company began to inject oil into the Gulf Coast Project pipeline as it moves closer to the start of commercial service.”

The Sierra Club's legal challenge to stop the pipeline was recently denied by the U.S. Court of Appeals for the Tenth Circuit, so the southern half, battled over for years between the industry and environmentalists, will soon become a reality.

According to a statement provided to DeSmog by TransCanada, “Over the coming weeks, TransCanada will inject about three million of [sic] barrels of oil into the system, beginning in Cushing, Oklahoma and moving down to the company’s facilities in the Houston refining area.”

In mid-January, up to 700,000 barrels per day of Alberta's tar sands diluted bitumen (dilbit) could begin flowing through the 485-mile southern half of TransCanada's pipeline, known as the Gulf Coast Project. Running from Cushing, Oklahoma to Port Arthur, Texas, the southern half of the pipeline was approved by both a U.S. Army Corps of Engineers Nationwide Permit 12 and an Executive Order from President Barack Obama in March 2012.

BloombergThe Canadian Press and The Oklahoman each reported that the Gulf Coast Project pipeline is now being injected with oil. Line fill is the last key step before a pipeline can begin operations. 

“There are many moving parts to this process – completion of construction, testing, regulatory approvals, line fill and then the transition to operations,” TransCanada spokesman Shawn Howard told DeSmog. “Line fill has to take place first, then once final testing and certifications are completed, the line can then go into commercial service.”

Residents living along the length of the southern half will have no clue about the rest of the start-up process, as TransCanada says it won't provide any more information until the line is already running. “For commercial and contractual reasons, the next update we will provide will be after the line has gone into commercial service,” the company announced.

When DeSmog asked whether the company is currently injecting conventional oil or diluted bitumen sourced from the Canadian tar sands, TransCanada's Howard replied: 

“Many people like to try and categorize the blend, etc., however we are injecting oil into the pipeline. As you’ve likely seen me quoted before, oil is oil and this pipeline is designed to handle both light and heavy blends of oil, in accordance with all U.S. regulatory standards.

I am not able to provide you the specific blend or breakdown as we are not permitted (by our customers) from disclosing that information to the media. There are very strict confidentiality clauses in the commercial contracts we enter into with our customers, and that precludes us from providing that. The reason is that if we are providing information about a specific blend, when it is in our system, etc. – that has the potential to identify who our customers may be or allow others to take financial positions in the market and profit from that information when others do not have access to the same information. This has much farther reaching impacts for the financial markets (and ultimately all of us).”

Mon, 2013-12-09 05:00Steve Horn
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Stink Tanks: Historical Records Reveal State Policy Network Was Created by ALEC

A 1991 report tracked down by DeSmogBlog from the University of California-San Francisco's Legacy Tobacco Documents reveals that the State Policy Network (SPN) was created by the American Legislative Exchange Council (ALEC), raising additional questions over both organizations' Internal Revenue Service (IRS) non-profit tax status. 

Titled “Special Report: Burgeoning Conservative Think Tanks” and published by the National Committee for Responsive Philanthropy, the report states that State Policy Network's precursor — the Madison Group — was “launched by the American Legislative Exchange Council and housed in the Chicago-based Heartland Institute.”

Further, Constance “Connie” Campanella — former ALEC executive director and the first president of the Madison Group — left ALEC in 1988 to create a lobbying firm called Stateside Associates. Stateside uses ALEC meetings (and the meetings of other groups) as lobbying opportunities for its corporate clients

“Stateside Associates is the largest state and local government affairs firm,” according to its website. “Since 1988, the Stateside team has worked across the 50 states and in many local governments on behalf of dozens of companies, trade associations and government and non-profit clients.”

Constance Campanella; Photo Source: Twitter

Named Constance Heckman while heading ALEC, Campenella also formerly served on the Board of Directors of Washington Area State Relations Group, a state-level lobbyist networking group. 

“The Washington Area State Relations Group (WASRG) is one of the nation’s largest organizations dedicated exclusively to serving state government relations professionals,” explains its website. “Since the mid-1970s, WASRG has been providing its corporate, trade association and public sector members with a unique and valuable opportunity to interact with their peers, key state officials and public policy experts.”

Thu, 2013-12-05 17:29Steve Horn
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Stink Tanks: State Policy Network Internal Budget Documents Revealed by The Guardian

It's been a rough week for the American Legislative Exchange Council (ALEC). The “corporate bill mill” group's annual States & Nation meeting was overshadowed by damaging evidence of misconduct revealed by The Guardian. 

And it just got a whole lot rougher with yet another investigative installment in The Guardian series.

This time, instead of focusing on ALEC alone, Guardian reporters Suzanne Goldenberg and Ed Pilkington took a big swing at what Center for Media and Democracy and Progress Now have called the “stink tanks” network run by the right-wing State Policy Network (SPN). Leaked a copy of SPN's tax and budget proposal published in July 2013, the documents offer a rare glimpse inside the SPN machine.

One of the biggest revelations in the energy and environment sphere: SPN Associate Member, the Beacon Hill Institute “requested $38,825…to weaken or roll back a five-year effort by states in the region to reduce greenhouse gas emissions,” explained The Guardian. “The institute said it would carry out research into the economic impact of the cap-and-trade system operating in nine states known as the Regional Greenhouse Gas Initiative.”

BHI appeared to have already arrived at its conclusions in advance, admitting from the outset that the aim of the research was to arm opponents of cap-and-trade with data for their arguments, and to weaken or destroy the initiative.”

Another huge related development came in a piece published concurrently by The Guardian. That piece pointed out that Beacon Hill Institute is in trouble with its host institution Suffolk University for pushing research explicitly funded by SPN to oppose the Regional Greenhouse Gas Initiative, with research results already determined before the inquiry began. 

Wed, 2013-12-04 13:32Steve Horn
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Documents Reveal ALEC's Looming Attacks on Clean Energy, Fracking Laws, Greenhouse Gas Regulations

The Guardian has released another must-read piece about the American Legislative Exchange Council (ALEC), this time laying bare its anti-environmental agenda for 2014. 

The paper obtained ALEC's 2013 Annual Meeting Policy Report, which revealed that ALECdubbed a “corporate bill mill” for the statehouses by the Center for Media and Democracy — plans more attacks on clean energy laws, an onslaught of regulations pertaining to hydraulic fracturing (“fracking”) and waging war against Environmental Protection Agency (EPA) greenhouse gas regulations.

“Over the coming year, [ALEC] will promote legislation with goals ranging from penalising individual homeowners and weakening state clean energy regulations, to blocking the Environmental Protection Agency, which is Barack Obama's main channel for climate action,” explained The Guardian. “Details of ALEC's strategy to block clean energy development at every stage, from the individual rooftop to the White House, are revealed as the group gathers for its policy summit in Washington this week.”

The documents also reveal ALEC's boasting of introducing myriad “model resolutions” nationwide in support of fast-tracking approval for the northern half of Transcanada's Keystone XL pipeline, along with another “model bill” — the “Transfer of Public Lands Act” already introduced in Utah — set to expropriate federally-owned public lands to oil, gas and coal companies. 

Tue, 2013-12-03 11:43Steve Horn
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Leaked Documents Reveal IRS Concerns, Funding Crisis At Corporate Lobbying Group ALEC

The Guardian has published a major investigative piece that once again exposes the scandalous ways of the right wing lobbying group, American Legislative Exchange Council (ALEC). 

Among the biggest revelations: ALEC may soon face a budget crisis, and is feeling the heat of public pressure from activists and its own membership in the aftermath of the Trayvon Martin shooting by George Zimmerman in Florida. Dozens of corporations have jumped ship from what critics have coined a “corporate bill mill” for statehouses nationwide.

Another explosive revelation: ALEC State Chairs were handed a draft pledge to put ALEC's interests over its constituent's interests, asked to “act with care and loyalty and put the interests of [ALEC] first.” ALEC confirmed to The Guardian that it was “not adopted by the membership committee or by any of the state chairs.”

The Guardian obtained ALEC's Board of Directors' meeting minutes which reveal that ALEC has created a 501(c)(4) non-profit organization called The Jeffersonian Project.

Creation of the Jeffersonian Project - paralleling ALEC's self-serving branding as standing for “Jeffersonian principles” - could be seen as a tacit admission that ALEC had been illegally operating as a shadow lobbying organization on behalf of its corporate members for the past four decades.

ALEC's budget hole from the exodus of corporate members has inspired a campaign to win corporate members back to the exclusive club, calling it the biblically-inspired “Prodigal Son Project.” Desperate for more member-based funding, ALEC is considering recruiting gambling companies into its member base.

Mon, 2013-12-02 10:25Steve Horn
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Tar Sands' Next Frontier: Shipments on the Great Lakes

Great Lakes Tar Sands

The Great Lakes, drinking water source for over 40 million North Americans, could be the next target on tar sands marketers' bullseye according to a major new report out by the Chicago-based Alliance for the Great Lakes.

The 24-page report, “Oil and Water: Tar Sands Crude Shipping Meets the Great Lakes?unpacks a new looming threat to the Great Lakes in the form of barges transporting tar sands along the Great Lakes to targeted midwestern refinery markets. As the report suggests, it's a threat made worse by an accompanying “Wild West”-like regulatory framework.

“The prospect of tar sands shipping on the Great Lakes gives rise to fundamental social and economic questions about whether moving crude oil by vessel across the world’s single largest surface freshwater system is a venture this region wants to embrace, despite the known risks,” the report says early on.

Calumet Specialty Products Partners LP is one of the major corporations hedging its bets on moving tar sands along the Great Lakes — and oil obtained via hydraulic fracturing (“fracking”) from North Dakota's Bakken Shale basin — and may begin doing so as early as 2015.   

“[I]ndustry observers and consultants speculate this crude could travel from Wisconsin across Lake Superior to Lake Michigan, and on to refineries in Whiting, Ind., Lemont, Ill., and possibly Detroit, Mich. near Lake Erie,” the report details. “Other potential destinations include Sarnia, Ontario on Lake Huron, or even an East Coast refinery.”

As a recent GasBuddy.com article explained, BP's Whiting, Indiana refinery - capable of refining far more tar sands crude with its Modernization Project - will soon open for business.

“Sources say that BP's modernization of the company's 405,000-b/d Whiting, Ind., refinery is on schedule with all units now operating,” the article explained. “That includes a brand new 105,000-b/d coker that will eventually allow the plant to use about four times as much heavy sour Canadian crude compared with it had used previously.”

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