tar sands

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.

Edelman and TransCanada Part Ways After Leaked Documents Expose Aggressive PR Attack on Energy East Pipeline Opponents

Russ Girling TransCanada

Last week internal documents from Edelman, the world’s largest PR firm, were leaked to Greenpeace, exposing an aggressive strategy to target opponents of TransCanada’s Energy East pipeline.

The release of the documents brought TransCanada under fire for using dirty public relations tricks to manipulate public opinion and divide communities on the issue of the company’s 4,600 km Energy East pipeline that will carry 1.1 million barrels a day of Alberta oilsands crude to one small refinery and to export facilities on the east coast.

Today a press release from Edelman confirms the firm is parting ways with TransCanada after “attention…moved away from the merits of TransCanada’s Energy East Pipeline project.”

According to the release, “Edelman and TransCanada have mutually agreed not to extend Edelman’s contract beyond its current term,” which completes at the end of December.

The release also states the communications strategy Edelman devised was meant to “drive an active public discussion that gives Canadians reason to affirmatively support the project.”

Vivian Krause and Richard Berman’s Oil Industry Playbook

vivian krause, richard berman

He had no idea he was being taped.

So when influential Washington, DC, political consultant Richard Berman talked about strategy and tactics to the oil and gas industry’s Western Energy Alliance in Colorado Springs this past June, he didn’t mince words.  

This is an endless war,” Berman said.

The secret tape was published in the New York Times a few weeks ago, released by a displeased oil industry executive, on condition of anonymity.

As he urged industry reps to employ tactics like digging up embarrassing tidbits about environmentalists and liberal celebrities, Berman also made one emphatic point:

People always ask me one question all the time, ‘How do I know that I won't be found out as a supporter of what you're doing?’ We run all of this stuff through non-profit organizations that are insulated from having to disclose donors. There is total anonymity. People don't know who supports us. We've been doing this for 20-something years in this regard.”

The Western Energy Alliance, at whose June meeting Berman laid out his cold-blooded strategy, describes membership as “an investment in the future of the independent oil and gas community in the West.” Its members throughout the U.S. and Canada “share and support our commitment to improve business conditions, expand opportunities and move the industry forward.” 

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.

UK Energy Minister Calls for More Tar Sands, Fracking and Climate Action at Same Time

The UK and Canada must strengthen their energy relationship by increasing investment in tar sands and fracking, Department of Energy and Climate Change (DECC) energy minister Matthew Hancock said at today’s Europe-Canada Energy Summit in London.

There remains great potential for deepening our energy relationship further, including delivering more British investment in Canada’s energy industry, or growing Canadian investment in the UK,” Hancock said.

We want to see more British companies active in the energy supply chain across Canada,” he said, repeatedly pointing to opportunities in Alberta’s tar sands and Western Canada’s shale gas reserves.

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.” 

DeSmogCAST 3: Historic US-China Climate Deal, Pipeline News and Scientists Standing Up to Harper

This week’s episode of DeSmogCAST covers the two major developments from Washington, D.C. this week — the historic climate deal between the United States and China and the upcoming GOP majority leaders' plans to attack the EPA’s carbon emission standards — along with new developments in the Kinder Morgan and Keystone XL tar sands export pipelines and the coalition of Canadian scientists standing up to Harper's attacks on science.

Hosted by DeSmogBlog contributor Farron Cousins, the DeSmogCAST guests this week are Carol Linnitt, Brendan DeMelle and Steve Horn. 

Republicans Attempting Science: A Preview of the Republican-Led Senate

Rep. Paul Broun (R-GA)

On September 9th, two subcommittees of the Congressional Committee on Science, Space and Technology held a joint hearing where they spent the better part of two hours arguing the benefits of moving crude oil by pipeline.

The Republican committee members grilled the representatives from the Department of Energy and the Pipeline and Hazardous Materials Safety Administration and repeatedly tried to make the argument that pipelines were the safest mode of transporting oil. 

Congressman Dana Rohrabacher (R-CA) also mentioned how this administration “honestly believes in the global warming theory” and that was why the administration has not approved the TransCanada Keystone XL pipeline.

The repeated focus on pipelines in this hearing was odd because the topic of the hearing was supposed to be the scientific properties of Bakken crude oil.

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.

“Citizen Interventions” Have Cost Canada’s Tar Sands Industry $17B, New Report Shows

Oil companies and fossil fuel investors seeking further developments in the Alberta tar sands have been dealt another setback with the publication of a report showing producers lost $17.1 billion USD between 2010-2013 due to successful public protest campaigns.

Fossil fuel companies lost $30.9 billion overall during the same period partly due to the changing North American oil market but largely because of a fierce grassroots movement against tar sands development, said the report — Material Risks: How Public Accountability Is Slowing Tar Sands Development.

A significant segment of opposition is from First Nations in Canada who are raising sovereignty claims and other environmental challenges, added the report, which was produced by the Institute for Energy Economics and Financial Analysis (IEEFA) and Oil Change International (OCI).

Tar sands producers face a new kind of risk from growing public opposition,” Tom Sanzillo, director of finance at IEEFA, and one of the lead authors on the report, said. “This opposition has achieved a permanent presence as public sentiment evolves and as the influence of organizations opposed to tar sands production continues to grow.”

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