Enbridge Stuffs Provision into Wisconsin Budget to Expedite Controversial Piece of "Keystone XL Clone"

On Thursday, July 3 on the eve of a long Fourth of July holiday weekend, Canadian pipeline company giant Enbridge landed a sweetheart deal: a provision in the 2015 Wisconsin Budget that will serve to expedite permitting for its controversial proposed Line 61 tar sands pipeline expansion project.

Line 61 cuts diagonally across Wisconsin and goes into north-central Illinois, beginning in Superior, Wisconsin and terminating in Flanagan, Illinois. The Wisconsin Gazette refers to the pipeline as the “XXL” pipeline because it is bigger in size and has higher carrying capacity than the more well known tar sands pipeline cousin, TransCanada's Keystone XL, and is “buried beneath every major waterway” in the state.

Wisconsin Climate Change Gag Order Part of Broader Industry-Tied Attacks on Science

On April 7, Wisconsin's Board of Commissioners of Public Lands voted 2-1 to ban those employed by the agency from doing any work pertaining to climate change or global warming while doing public lands related work.

Although the story was covered by multiple media outlets, lost in the public discussion so far is how the vote fits into the broader multi-front industry attack in America's Dairyland-turned-Petro State and which industry interests may have played a role in the vote. 

The historical roots of the vote appear to trace back to an April 2009 congressional testimony given by Tia Nelson, executive secretary for the Board of Commissioners of Public Lands and daughter of former Wisconsin Democratic Governor Gaylord Nelson, in favor of passage of the American Clean Energy Security Act of 2009.

That bill is better known as the controversial and eventually nixed Waxman-Markey climate bill, a bill opposed vigorously by the fossil fuel industry (and some environmentalists, too). 

Investor Call: Enbridge's Keystone XL Clone Opens in October, Rail Facility to Follow

In a recent quarter two call for investors, Enbridge Inc executives said the company's “Keystone XL” clone — the combination of the Flanagan South and Seaway Twin pipelines — will open for business by October.

As previously reported by DeSmogBlog, Enbridge has committed a “silent coup” of sorts, ushering in its own Alberta to Port Arthur, Texas pipeline system “clone” of TransCanada's Keystone XL tar sands pipeline. Unlike Keystone XL's northern leg, however, Enbridge has done so with little debate. 

With the combination of the Alberta Clipper (now called Line 67, currently up for expansion), Flanagan South and Seaway Twin pipelines, Enbridge will soon do what TransCanada has done via its Keystone Pipeline System.

That is, bring Alberta's tar sands to Gulf of Mexico refineries and send it off to the global export market.

According to Guy Jarvis, president of liquids pipelines for Enbridge, even though the Cushing, Oklahoma to Port Arthur, Texas Seaway Twin is technically operational, it will not become functional until Flanagan South opens in October. 

“The base plan had been, and still is, to do the line fill of the Seaway Twin from Flanagan South. So we don't expect to see too much off the Seaway Twin until Flanagan South does go into service,” Jarvis said on the investor call.

“It does have the capability to be line filled at Cushing if the barrels are available and the market signals would suggest that you would want to do that. But at this point in time, we think it will be the base plan that it is filled on from Flanagan South.”

Beyond piping diluted bitumen (“dilbit”) to market, Enbridge also has plans to market dilbit via rail in a big way.

Green Billionaires Club? David Vitter Owns Stock in Coal Utilities Fighting EPA Carbon Rules

On July 30, the Republican minority of the U.S. Senate Committee on Environment and Public Works, headed by Sen. David Vitter, released a report titled “The Chain of Environmental Command: How a Club of Billionaires and Their Foundations Control the Environmental Movement and Obama’s EPA.”

Critics of the report say it is propaganda designed to skewer the Obama EPA and environmental philanthropists for “conspiring to help the environment.”

Vitter's chief source of campaign cash is the oil and gas industry and he recently called the billionaire Koch Brothers “two of the most patriotic Americans in the history of the Earth.” 

What the 92-page report leaves out is that Vitter — an esteemed member of the Senate “Millionaires Club” — owns tens of thousands of dollars in stocks of the electric utility Wisconsin Energy Corporation (We Energies), which owns major coal-fired power plants in both Oak Creek, Wisc. and Pleasant Prairie, Wisc.

We Energies says it stands to lose economically if the proposed Obama EPA carbon rules are implemented, citing the potential risks related to legislation and regulation in its most recent U.S. Securities and Exchange Commission (SEC) Form 10-Q.

“Any legislation or regulation that may ultimately be adopted, either at the federal or state level, designed to reduce GHG emissions could have a material adverse impact on our electric generation and natural gas distribution operations,” We Energies stated on the form.

“Such regulation could make some of our electric generating units uneconomic to maintain or operate, and could adversely affect our future results of operations.”

We Energies CEO Gale Klappa also voiced dissatisfaction with the proposed rule during his company's most recent earnings call, saying the company will submit comment to the EPA as part of the public comment period.

America's Dairyland Turning to Petrostate: Wisconsin Oil-By-Rail Routes Published for First Time

DeSmogBlog is publishing the first documents ever obtained from the Wisconsin government revealing routes for oil-by-rail trains in the state carrying oil obtained via hydraulic fracturing (“fracking”) in the Bakken Shale basin.

The information was initially submitted to the U.S. Department of Transportation (DOT) under the auspices of a May 7 Emergency Order, which both the federal government and the rail industry initially argued should only be released to those with a “need to know” and not the public at-large. 

The Wisconsin documents show the three companies that send Bakken crude trains through the state — Burlington Northern Santa Fe (BNSF), Union Pacific and Canadian Pacific — all initially argued routes are “sensitive security information” only to be seen by those with a “need to know.”

As covered in a previous DeSmogBlog article revealing the routes of oil trains traveling through North Dakota for the first time, the rail industry used this same line of legal argument there and beyond.

Wisconsin Emergency Management did not buy the argument, though, and released the documents to DeSmogBlog through the state's Public Records Act.

Silent Coup: How Enbridge is Quietly Cloning the Keystone XL Tar Sands Pipeline

While the debate over the TransCanada Keystone XL tar sands pipeline has raged on for over half a decade, pipeline giant Enbridge has quietly cloned its own Keystone XL in the U.S and Canada. 

It comes in the form of the combination of Enbridge's Alberta Clipper (Line 67), Flanagan South and Seaway Twin pipelines.

The pipeline system does what Keystone XL and the Keystone Pipeline System at large is designed to do: ship hundreds of thousands of barrels per day of Alberta's tar sands diluted bitumen (“dilbit”) to both Gulf Coast refineries in Port Arthur, Texas, and the global export market.

Alberta Clipper and Line 67 expansion

Alberta Clipper was approved by President Barack Obama and the U.S. State Department (legally required because it is a border-crossing pipeline like Keystone XL) in August 2009 during congressional recess. Clipper runs from Alberta to Superior, Wis.

Map Credit: U.S. Department of State

Initially slated to carry 450,000 barrels per day of dilbit to market, Enbridge now seeks an expansion permit from the State Department to carry up to 570,000 barrels per day, with a designed capacity of 800,000 barrels per day. It has dubbed the expansion Line 67.

As reported on previously by DeSmogBlog, Line 67 is the key connecter pipeline to Line 6A, which feeds into the BP Whiting refinery located near Chicago, Ill., in Whiting, Ind. BP Whiting — the largest in-land refinery in the U.S. — was recently retooled to refine larger amounts of tar sands under the Whiting Refinery Modernization Project.

Interview: Big Men Director Rachel Boynton on Oil, Ghana and "Responsible Capitalism"

The subtitle of the newly released documentary film Big Men is “everyone wants to be big” and to say the film covers a “big” topic is to put it mildly.

Executive produced by Brad Pitt and directed by Rachel Boynton, the film cuts to the heart of how the oil and gas industry works and pushes film-watchers to think about why that's the case. Ghana's burgeoning offshore fields — in particular, the Jubilee Field discovered in 2007 by Kosmos Energy — serve as the film's case study.

Image Credit: Ghana Oil Watch

Boynton worked on the film for more than half a decade, beginning the project in 2006 and completing it in 2013. During that time, the Canadian tar sands exploded, as did the U.S. hydraulic fracturing (“fracking”) boom — meanwhile, halfway around the world, Ghana was having an offshore oil boom of its own.

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.”

Mining Corporation Looks to BC for Frac Sand Open Pit Mine

Stikine Gold Mining Corp. will provide unconventional gas producers with British Columbian silica sand for fracking operations if the Ministry of Forests, Lands and Natural Resource Operations approves the company's open pit frac sand mine project application. According to the Ministry's website the project, located 90 kilometers north of Prince George, is in pre-application status with the Environmental Assessment Office.

If granted approval, Stikine could gouge a 5 kilometer wide and 200 meter deep hole in the region's sandstone shelves, dismantling what works as a massive natural water filtration system in order to benefit an industrial enterprise that removes millions of gallons of freshwater from the earth's hydrogeological system each year. This is done as an intermediary step towards fracking for unconventional gas, an energy-intensive, heavy industrial process that will ultimately release high levels of greenhouse gasses into the atmosphere. 
“Stikine's new focus on the potential production of Frac Sand from silica sources in north eastern BC (NEBC) represents a strategic opportunity in the market and a first for what is shaping up to be a massive gas play in region,” the company announced on its website.
Frac sand mining is an often overlooked component of hydraulic fracturing operations. Producers use a mixture of sand, water, and chemicals to blast open shale gas deposits, such as those located in northeastern BC. Fracking opponents often point to the toxicity of fracking chemicals, the possibility of groundwater contamination and high levels of fugitive methane emissions associated with the process to demonstrate the high environmental footprint of the industry-lauded 'clean' energy source.
The role sand plays in fracking is often overshadowed by these more widespread problems that follow the process to each well-pad, affecting communities at the local level. However, giving more thought to the industry's need for sand - a single well can use between 2 and 5 million pounds of sand - sheds light on just how destructive fracking is, right from inception.

Second US Tar Sands Mine, Owned by Former ExxonMobil and Chevron Exec., Approved in Utah

MCW Enterprises Ltd., a Canada-based corporation, announced on Nov. 19 that it has received all necessary permits to streamline tar sands extraction at its Asphalt Ridge plant located in Vernal, Utah starting in December.

The announcement comes just weeks after U.S. Oil Sands Company received the first ever green light to extract tar sands south in the United States.

Recently changing its name from MCW Energy, MCW Enterprises Ltd. owns MCW Oil Sands Recovery LLC as a wholly owned subsidiary. The company's CEO, R. Gerald Bailey - often also referred to as Raymond Bailey or Jerry Bailey - is the former President of Exxon Arabian Gulf and also served as an Executive for Texaco (since purchased by Chevron) for 15 years.

MCW's website explains that its stake in the Asphalt Ridge is a “proven/probable resource of over 50+ million barrels of oil” and that it “is seeking other oil sands leases in Utah, which contains over 32 billion barrels of oil within 8 major deposits.” 

Bailey told Flahrety Financial News that he sees this first project as a crucible, or testing grounds, with the potential for more extraction to come down the road. 

“This is really going to be a technology play,” he stated. “I don't plan to build another Exxon out there in the desert.”


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