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State Department Keystone XL Contractor ERM Bribed Chinese Agency to Permit Project

Environmental Resources Management (ERM Group), the consultancy selected by TransCanada to conduct the environmental review for Keystone XL's northern leg on behalf of the U.S. State Department, is no stranger to scandal.

Exhibit A: ERM once bribed a Chinese official to ram through major pieces of an industrial development projectERM was tasked to push through the project in Hangzhou Bay, located near Shanghai.

Accepting the bribe landed Yan Shunjun, former deputy head of the Shanghai Municipal Environmental Protection Bureau, an
11-year prison sentence.

Yan “allegedly took bribes of 864,000 yuan (126,501 U.S. dollars), 20,000 U.S. dollars and 4,000 euros from seven contractors,” explained Xiuhuanet. “Yan was also accused of illegally setting up a channel to speed up environmental impact assessment processes, which are essential for companies wanting to build factories.”

BP, one of the companies standing to gain if Keystone XL North receives a presidential permit from the Obama administration as a major Alberta tar sands producer, was also mired in the Chinese ERM Group scandal. 

“Two firms on ERM's bluechip client list, BP and Sinopec, are big investors in a petrochemical complex on the site, but the Chinese authorities apparently saw no conflict of interest in awarding the environmental evaluation to ERM,” explained London's Sunday Times.

In a sense, history has repeated itself.

"I Hate That Oil's Dropping": Why Mississippi Governor Phil Bryant Wants High Oil Prices for Fracking

Outgoing Interstate Oil and Gas Compact Commission (IOGCC) chairman Phil Bryant — Mississippi's Republican Governor — started his farewell address with a college football joke at IOGCC's recent annual conference in Columbus, Ohio.

“As you know, I love SEC football. Number one in the nation Mississippi State, number three in the nation Ole Miss, got a lot of energy behind those two teams,” Bryant said in opening his October 21 speech. “I try to go to a lot of ball games. It's a tough job, but somebody's gotta do it and somebody's gotta be there.”

Seconds later, things got more serious, as Bryant spoke to an audience of oil and gas industry executives and lobbyists, as well as state-level regulators. 

At the industry-sponsored convening, which I attended on behalf of DeSmogBlog, it was hard to tell the difference between industry lobbyists and regulators. The more money pledged by corporations, the more lobbyists invited into IOGCC's meeting.

Perhaps this is why Bryant framed his presentation around “where we are headed as an industry,” even though officially a statesman and not an industrialist, before turning to his more stern remarks.

“I know it's a mixed blessing, but if you look at some of the pumps in Mississippi, gasoline is about $2.68 and people are amazed that it's below $3 per gallon,” he said.

“And it's a good thing for industry, it's a good thing for truckers, it's a good thing for those who move goods and services and products across the waters and across the lands and we're excited about where that's headed.”

Bryant then discussed the flip side of the “mixed blessing” coin.

“Of course the Tuscaloosa Marine Shale has a little problem with that, so as with most things in life, it's a give and take,” Bryant stated. “It's very good at one point and it's helping a lot of people, but on the other side there's a part of me that goes, 'Darn! I hate that oil's dropping, I hate that it's going down.' I don't say that out-loud, but just to those in this room.”

Tuscaloosa Marine Shale's “little problem” reflects a big problem the oil and gas industry faces — particularly smaller operators involved with hydraulic fracturing (“fracking”)  going forward.

That is, fracking is expensive and relies on a high global price of oil. A plummeting price of oil could portend the plummetting of many smaller oil and gas companies, particularly those of the sort operating in the Tuscaloosa Marine.

Introducing "Natural Gas Exports: Washington's Revolving Door Fuels Climate Threat"

DeSmogBlog's Steve Horn and Republic Report's Lee Fang have co-written an in-depth report on the influence the government-industry revolving door has had on Big Oil's ability to obtain four liquefied natural gas (LNG) export permits since 2012 from the Obama Administration.

Titled “Natural Gas Exports: Washington's Revolving Door Fuels Climate Threat,” the report published here on DeSmogBlog and on Republic Report serves as the launching pad of an ongoing investigation. It will act as the prelude of an extensive series of articles by both websites uncovering the LNG exports influence peddling machine. 

The report not only exposes the lobbying apparatus that has successfully opened the door for LNG exports, but also the PR professionals paid to sell them to the U.S. public. It also exposes those who have gone through the “reverse revolving door,” moving from industry back to government and sometimes back again.

It reveals that many former Obama Administration officials now work as lobbyists or PR professionals on behalf of the LNG exports industry, as do many former Bush Administration officials. So too do those with ties to potential 2016 Democratic Party presidential nominee, Hillary Clinton. 

They include:

Gulf-Bound Tar Sands for Export? Follow the Oiltanking Trail

The U.S. Senate failed to get the necessary 60 votes to approve the northern leg of TransCanada's Keystone XL pipeline, but incoming Senate Majority Leader Mitch McConnell (R-Ky.) already promised it will get another vote when the GOP-dominated Senate begins its new session in 2015.

Though the bill failed, one of the key narratives that arose during the congressional debate was the topic of whether or not the tar sands product that may flow through it will ultimately be exported to the global market. President Barack Obama, when queried by the press about the latest Keystone congressional action, suggested tar sands exports are the KXL line's raison d'etre.

Obama's comments struck a nerve. Bill sponsor U.S. Sen. Mary Landrieu (D-La.) and supporter U.S. Sen. John Hoeven (R-ND) both stood on the Senate floor and said Keystone XL is not an export pipeline in the minutes leading up to the bill's failure.

“Contrary to the ranting of some people that this is for export…Keystone is not for export,” said Landrieu, with Hoeven making similar remarks.

But a DeSmog probe into a recent merger of two major oil and gas industry logistics and marketing companies, Oiltanking Partners and Enterprise Products Partners, has demonstrated key pieces of the puzzle are already being put together by Big Oil to make tar sands exports a reality. 

And both Keystone XL and Enbridge's “Keystone XL Clone” serve as key thoroughfares for making it happen.

State Department's Keystone XL Contractor ERM Approved Project Now Melting Glaciers

A controversial government contractor once again finds itself in hot water, or in this case, melting glacier water.

TransCanada chose Environmental Resources Management Group (ERM) as one of its contractors to conduct the environmental impact statement for Keystone XL on behalf of the U.S. State Department. ERM Group also happens to have green-lighted a gold mining project in central Asia that is now melting glaciers.

ERM Group has a penchant for rubber-stamping projects that have had tragic environmental and public health legacies. For example, ERM formerly worked on behalf of the tobacco industry to pitch the safety of its deadly product.

A January 2014 study about Keystone XL's climate change impacts published in the journal Nature Climate Change paints a drastically different picture than ERM Group's Keystone XL tar sands study.

The Kumtor Gold Mineowned by Centerra Gold/Cameco Corporation, was provided a stamp of approval from ERM Group in October 2012. Similar to the TransCanada arrangement with the State Department on Keystone XL, Centerra served as the funder of the report evaluating its own project. 

ERM Group Melting Glaciers

“The mine sits at an altitude of 4,000 meters above sea level, in the Tien Shan mountain range and among some of Kyrgyzstan's - and the region's - most important glaciers,” explained an October 28 story published in Asia Times.

“Centerra Gold has consistently dismissed as untrue that operations at Kumtor have had negative implications for the glaciers, which are reportedly melting with observable speed due to years of dumping rock tailings onto the ice sheet. The Canadian company has backed its position with expert evaluations from consultancies such as Environmental Resources Management.” 

Former Treasury Secretary Timothy Geithner's Warburg Pincus May Profit from Tar Sands Exports

Several environmental groups have filed a lawsuit against the U.S. Department of State and Secretary John Kerry over the permitting of a controversial border-crossing northern leg of a pipeline system that DeSmogBlog has called Enbridge's “Keystone XL Clone.”

The Keystone XL Clone is designed to accomplish the same goal as TransCanada's Keystone XL: bringing Alberta's tar sands to Gulf coast refineries and export market. It consists of three legs: the Alberta Clipper expansion as the northern leg, the Flanagan South middle leg and the Seaway Twin southern leg.

Green groups have called the northern leg an “illegal scheme” because the Enbridge Alberta Clipper expansion proposal didn't go through the normal State Department approval process. Instead, State allowed Enbridge to add pressure pumps to two separate-but-connected pipelines on each side of the border and send Alberta's diluted bitumen (“dilbit”) to market.

Enbridge dodged a comprehensive State Department environmental review, which involves public hearings and public commenting periods. The groups say this is illegal under the National Environmental Policy Act (NEPA) and have demanded a re-do for Enbridge's application process.

“The only thing worse than dirty oil is dirty oil backed by dirty tricks. This is the fossil fuel equivalent of money laundering,” Kieran Suckling, executive director of the Center for Biological Diversity, said in a press release announcing the lawsuit. “The Obama administration should be ashamed of itself for letting Enbridge illegally pump more dirty tar sands oil into the United States.”

The maneuver has a key beneficiary: former Obama Administration Secretary of the Treasury, Timothy Geithner, who now serves as President of the private equity giant Warburg Pincus.

Geithner's connection to the lawsuit not only adds intrigue, but also reveals the purpose of Enbridge's Keystone XL Clone: an export fast-track to the global market.


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