John Kerry

Thu, 2014-02-06 11:00Ben Jervey
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Tom Steyer to Secretary of State Kerry: New Review Necessary of "Defective" Keystone XL Environmental Assessment

With the State Department’s release of the final Keystone XL environmental review, attention is being refocused on apparent conflicts of interest within both the State Department itself and the consultancy hired to conduct the review.

Upon the release of the review – which is formally called the final supplemental environmental impact statement (or FSEIS) – Tom Steyer of NextGen Climate urged Secretary of State John Kerry to begin a formal review of the “defective” environmental analysis. In his February 2 letter to Secretary Kerry, Steyer writes that “It is inappropriate and unfair to provide President Obama … with a report that is not only on its face defective, but which has suffered from a process that raises serious questions about the integrity of the document.”

The review, argues Steyer, “has suffered from a process that raises serious questions about the integrity of the document.”

In his letter, Steyer lays out the following problems, which he argues undermine the entirety of the environmental impact statement:

Wed, 2014-02-05 10:00Steve Horn
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Keystone XL's Northern Leg: A Fracked Oil Pipeline Along with Tar Sands

On January 31, President Barack Obama's U.S. State Department released its Final Environmental Impact Statement (FEIS) for the northern leg of TransCanada's proposed Keystone XL tar sands pipeline.

The State Department's FEIS argues that the northern half of Keystone XL, if built, “remains unlikely to significantly impact the rate of extraction in the oil sands, or the continued demand for heavy crude oil at refineries in the United States.”

But flying under the media's radar so far, the State Department review also highlights the prospect that Keystone XL will not only carry tar sands, but also be tapped to carry up to 100,000 barrels per day of oil extracted via hydraulic fracturing (“fracking”) from North Dakota's Bakken Shale basin.

“[Keystone XL] would have the capacity to deliver up to 830,000 bpd, of which 730,000 bpd of capacity has been set aside for [tar sands] and the remaining 100,000 bpd of capacity set aside for [Bakken] crude oil,” the report details.

“[TransCanada] has represented that it has firm commitments to transport approximately 555,000 bpd of [tar sands], as well as 65,000 bpd of crude oil from the Bakken.”

A smaller proposed project owned by TransCanada called the Bakken MarketLink pipeline and incorporated as Keystone Marketlink LLC in February 2011, would ship the fracked oil to Keystone XL's northern leg as an “on ramp.” 

“This project would include a 5-mile pipeline, pumps, meters, and storage tanks to supply Bakken crude oil to the proposed pipeline,” explains the FEIS.

Fri, 2014-01-31 12:38Steve Horn
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State Department Releases Flawed Keystone XL Final Environmental Review In Super Bowl Friday Trash Dump

The State Department has released the Final Supplemental Environmental Impact Statement (SEIS) for the proposed northern leg of the controversial and long-embattled TransCanada Keystone XL tar sands pipeline.

In a familiar “Friday trash dump” — a move many expected the Obama administration to shun — John Kerry's State Department chose to “carefully stage-manage the report's release” on Super Bowl Friday when most Americans are switching focus to football instead of political scandals. **See bottom of this post for breaking analysis**

Anticipating the report’s release, insiders who had been briefed on the review told Bloomberg News the SEIS – not a formal decision by the State Department on the permitting of the pipeline, but rather another step in the department’s information gathering – “will probably disappoint environmental groups and opponents of the Keystone pipeline.”

And, indeed, the new report reads“Approval or denial of any one crude oil transport project, including the proposed Project, remains unlikely to significantly impact the rate of extraction in the oil sands, or the continued demand for heavy crude oil at refineries in the United States.”

This reiterates one of the earlier draft’s most heavily criticized conclusions that the pipeline is “unlikely to have a substantial impact on the rate of development in the oil sands,” and thus avoids a comprehensive assessment of those climate impacts.

In June 2013, President Obama said in a speech announcing his Climate Action Plan at Georgetown University that he would only approve the permit if it was proven that “this project does not significantly exacerbate the problem of carbon pollution.”  

The final environmental review is being released on the heels of damning revelations about the close ties between the Canadian pipeline builder, TransCanada and Environmental Resources Management (ERM). ERM was hired by the State Department to conduct the environmental review.

Tue, 2013-11-26 15:31Steve Horn
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Obama Approves Major Border-Crossing Fracked Gas Pipeline Used to Dilute Tar Sands

Although TransCanada's Keystone XL tar sands pipeline has received the lion's share of media attention, another key border-crossing pipeline benefitting tar sands producers was approved on November 19 by the U.S. State Department.

Enter Cochin, Kinder Morgan's 1,900-mile proposed pipeline to transport gas produced via the controversial hydraulic fracturing (“fracking”) of the Eagle Ford Shale basin in Texas north through Kankakee, Illinois, and eventually into Alberta, Canada, the home of the tar sands. 

Like Keystone XL, the pipeline proposal requires U.S. State Department approval because it crosses the U.S.-Canada border. Unlike Keystone XL - which would carry diluted tar sands diluted bitumen (“dilbit”) south to the Gulf Coast - Kinder Morgan's Cochin pipeline would carry the gas condensate (diluent) used to dilute the bitumen north to the tar sands.

“The decision allows Kinder Morgan Cochin LLC to proceed with a $260 million plan to reverse and expand an existing pipeline to carry an initial 95,000 barrels a day of condensate,” the Financial Post wrote

“The extra-thick oil is typically cut with 30% condensate so it can move in pipelines. By 2035, producers could require 893,000 barrels a day of the ultra-light oil, with imports making up 786,000 barrels of the total.”

Increased demand for diluent among Alberta's tar sands producers has created a growing market for U.S. producers of natural gas liquids, particularly for fracked gas producers.

“Total US natural gasoline exports reached a record volume of 179,000 barrels per day in February as Canada's thirst for oil sand diluent ramped up,” explained a May 2013 article appearing in Platts. ”US natural gasoline production is forecast to increase to roughly 450,000 b/d by 2020.”

Tue, 2013-11-12 08:02Steve Horn
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Public Citizen Report Reveals Dents, Holes in Keystone XL Southern Half Weeks Before Planned Startup

The southern half of Transcanada's Keystone XL tar sands pipeline is supposed to begin pumping up to 700,000 barrels of diluted bitumen per day through the Cushing, OK to Port Arthur, TX route within weeks. But is it ready to operate safely?

Public Citizen has released a chilling report revealing that the 485-mile KXL southern line is plagued by dents, faulty welding, exterior damage that was patched up poorly and misshapen bends, among other troubling anomalies.

In conducting its investigative report, “Construction Problems Raise Questions About the Integrity of the Pipeline,” Public Citizen worked on the ground to examine 250 miles of the 485 mile pipeline's route. The group and its citizen sources uncovered over 125 anomalies in that half of the line alone. These findings moved Public Citizen to conclude the southern half of the pipeline shouldn't begin service until the anomalies are taken care of, and ponders if the issues can ever be resolved sufficiently.

After President Barack Obama temporarily denied a permit for Keystone XL's northern half in January 2012, the U.S. Army Corps of Engineers granted Keystone XL's south half a legally dubious Nationwide Permit 12 to expedite construction. Soon after, President Obama issued his own Executive Order in March 2012 calling for the expedited building of the south half in de facto support of the Corps' permit. 

An August report by industry intelligence firm Genscape said the pipeline, rebranded by Transcanada as the “Gulf Coast Project,” will ship tar sands dilbit through the line beginning in the first quarter of 2014. Now, the race to build the south half literally looks like it could come with major costs and consequences.  

Thu, 2013-08-15 14:50Steve Horn
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Mark Fiore Unveils "Keystone Clones" Cartoon on Keystone XL Corruption Ring

mark fiore tar sands timmy keystone xl

Mark Fiore - the Pulitzer Prize-winning political cartoonist satirist - has a new video out that in two-minutes pokes fun at the perverse conflicts of interest that've prevailed throughout debate over the prospective Keystone XL northern half.

It's these conflicts of interest that DeSmogBlog has focused on in the past several months since the March 2013 release of the sham U.S. State Department Keystone XL environmental review. Some of the conflicts of interest covered in Fiore's 2-minute video titled “Keystone Clones” now up on Moyers and Company's website include:

-Anita Dunn/Robert Bauer Scandal: Described as a “Power Couple” by NewsweekAnita Dunn is President Barack Obama's former communications director and was a top-level communications advisor for Obama's 2008 run for president and Secretary of State John Kerry's 2004 run for president. Through her PR firm SKDKnickerbocker, she does communications work for TransCanada, owner of the Keystone XL pipeline.

Her husband Robert “Bob” Bauer is Obama's personal attorney, former White House Counsel under Obama, and served as the election law attorney for Kerry in 2004 and Obama in 2008 and 2012. Infamous in election law reform circles for his attempts to bend election law in such a way as to flood the electoral system with more money, Bauer's law firm Perkins Coie also has an attorney-client relationship with TransCanada.

-ERM Group Scandals: Obama's State Department chose a Big Oil-connected contractor named Environmental Resources Management, Inc. (ERM Group) to do the environmental review for Keystone XL's northern half. ERM - which historically also did contract work for Big Tobacco - has rubber-stamped ecologically hazardous projects in the Caspian Sea-area, Peru, Delaware and now the Keystone XL.

Given this shady track record, it's unsurprising it also said the pipeline's northern half - if built - would have negligible climate change impacts. 

Thu, 2013-08-15 08:25Steve Horn
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Keystone XL Influence Peddling Web Extends into PA Governor's Race Via Katie McGinty

Pennsylvania Democratic Party gubernatorial candidate and former head of the PA Department of Environmental Protection, Kathleen “Katie” McGinty, has hired powerful PR firm SKDKnickerbocker for her campaign's communications efforts.

SKDKnickerbocker - once known as Squier Knapp Dunn - is co-owned by President Barack Obama's former Communications Director Anita Dunn and a member of Obama's national media team for his 2008 run for President, Bill Knapp. Both Dunn and Knapp previously did PR for U.S. Secretary of State John Kerry's 2004 run for President, as well.

One of SKDKnickerbocker's key clients is TransCanada, owner of the Keystone XL tar sands export pipeline.

Another key SKDKnickerbocker client: Association of American Railroads, that industry's version of the American Petroleum Institute. Rail is an increasingly viable alternative to pipelines for bringing tar sands - and fracked oil - to market. 

Both McGinty and Dunn also have key marital connections with skin in the game for the looming decision over the prospective northern half of Keystone XL: Karl Hausker and Robert “Bob” Bauer, respectively. 

Tue, 2013-08-06 06:00Steve Horn
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Fracking's Myriad Ties to Flawed State Dept Keystone XL Environmental Review

fracking keystone xl pipeline ERM

Most don't think of hydraulic fracturing (“fracking”) when pondering the future of TransCanada's Keystone XL tar sands export pipeline - but they should. 

There are numerous ties between key members of the fracking industry and groups pushing for approval of the Keystone XL pipeline. And these threads all lead back, one way or another, to Environmental Resources Management, Inc. (ERM Group).

ERM Group did the official U.S. State Department's environmental review for Keystone XL pipeline. The review, published in March 2013, determined the pipeline will have negligible climate change impacts (the review dealt with the northern segment of the pipeline as the southern half, now known as the “Gulf Coast Pipeline,” received an expedited Executive Order permit by President Barack Obama in March 2012).

ERM is also a paying member of the American Petroleum Institute (API), which has spent over $22 million lobbying on Keystone XL since June 2008

In its bid to provide the environmental review for the Keystone XL pipeline, ERM overtly lied on its conflict-of-interest form, saying it has no current business ties to TransCanada. ERM has an ongoing consulting relationship with the company responsible for the Alaska South Central LNG Project, also known as Alaska Gas Pipeline Project. The company, South Central LNG, is co-owned by TransCanada.

On top of lying about its current business ties, ERM stated on the conflict-of-interest form it had no “direct or indirect relationship (financial, organizational, contractual or otherwise) with any business entity that could be affected in any way by the proposed work.” In so doing, ERM may have broken federal law - 18 USC § 1001 - by making a false claim on a federal contract.

The State Department's Office of Inspector General has officially launched an inquiry into how and why State overlooked ERM's omission, allowing ERM to potentially commit a crime. 

In addition to potentially fraudulent claims about its connection to TransCanada, ERM also has significant ties to major gas industry groups and major players supporting the fracking boom in the US.

Thu, 2013-07-25 05:00Steve Horn
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Controversial State Department Keystone XL Climate Study the Basis of David Petraeus' CUNY Seminar

Former CIA-head David Petraeus' City University of New York (CUNY) Macaulay Honors College seminar readings include several prominent Big Oil-funded “frackademia” studies, a recent DeSmogBlog investigation revealed.

Further digging into records obtained via New York's Freedom of Information Law (FOIL) also reveals “a survey of the global economy to set the stage for the course” - as stated in an email from Petraeus to an unknown source due to redaction - utilizes the U.S. State Department's Keystone XL environmental review written by Environmental Resources Management (ERM Group) to argue that Transcanada's tar sands export pipeline deserves approval.

“[Redacted], atttached is a document that my Harvard researchers and I put together for the seminar I'll lead at Macaulay Honors College of CUNY,” wrote Petraeus in the email. “It is intended to be a survey of the global economy to set the stage for the course…[It] will have considerable value, I think, for the undergrads in the course.”

The “Global Economy” survey was penned on behalf of Petraeus by Vivek Chilukuri, one of Petraeus' researchers at Harvard University's Kennedy School of Public Policy, where Petraeus sits as a Non-Resident Fellow. Chilukuri serves as Editor-in-Chief for the Harvard Journal of Middle Eastern Politics & Policy, and worked for Obama for America before the 2008 election. 

It was at the Harvard Kennedy School where all of Petraeus' troubles began. His biographer, Paula Broadwell, whom he had an affair with, met Petraeus while a Harvard graduate student, a scandal that ultimately drove him out of the CIA.

His CIA departure landed Petraeus his current gigs on Wall Street at Kohlberg Kravis Roberts (KKR) and as an adjunct professor at CUNY Honors College and University of Southern California - and coming full circle - back at Harvard, where the spool began to unravel. 

Tue, 2013-07-16 11:00Steve Horn
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Friends of the Earth Sues State Department on Keystone XL FOIA Delay, DeSmog Requests White House Financial Disclosure Forms

Friends of the Earth-U.S. (FOE) has filed a lawsuit against the U.S. State Department for failing to expedite its April 2013 Freedom of Information Act (FOIA) request seeking communications between TransCanada Keystone XL tar sands export pipeline's influence peddlers and the agency tasked to make the final decision on KXL's northern half.  

FOE's request seeks records of communications between State - which FOE has yet to hear back from since the April expedition request denial - and a cadre of powerful lobbyists.

The most well-connected of the group is Anita Dunn, a principal at SDKnickberbocker, a senior advisor to Obama's 2012 reelection campaign and former communications director for the Democratic Senatorial Campaign Committee under then-Senator Kerry. Dunn - who had over 100 private meetings with the Obama Admininistration between 2009 and 2012 according to a New York Times investigation - now does public relations on behalf of TransCanada at SDKnickberbocker.

Dunn's husband Robert “Bob” Bauer - President Obama's personal attorney, former White House Counsel for Obama, Counsel for the Democratic National Committee and election law attorney for Obama's 2012 reelection campaign - works at a law firm that does legal work on behalf of another TransCanada-owned pipeline, Alaska's South Central LNG.

DeSmogBlog submitted a FOIA request to the White House for the financial disclosure forms of Dunn and Bauer on July 5.

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