Keystone XL

Fri, 2014-03-07 13:51Julie Dermansky
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Whistleblower Evan Voke’s Evidence Against TransCanada Whitewashed By Regulators

Pipeline safety regulators in North America have done nothing but write warning letters to TransCanada in the two years since former employee Evan Vokes revealed evidence indicating the company had been breaking the rules.

A recently released report by the Canadian National Energy Board on TransCanada's integrity management programs stated: “There are areas where the company was found to be out of compliance.” The board gave TransCanada 30 days to come up with a plan to fix things internally.

In response, Vokes released a statement through the advocacy group, Public Citizen stating:

The Canadian government's audit criticizing TransCanada’s failings is a start, but leaves numerous safety concerns unaddressed. An audit based on paper and interviews only cannot catch non-compliance in the field. In my experience, TransCanada’s management failings are systemic and won’t be fixed simply by reviewing what TransCanada says its policies are on paper. These kind of reviews have not fixed the problem in the past and they aren’t sufficient now. Time and again, TransCanada’s internal and third-party audit systems have failed to catch the repeated substandard practice of engineering in the construction and maintenance of its pipelines. Unless regulators in Canada and the United States step up to the plate to ensure compliance in the field, future ruptures and risks to Americans are inevitable.”

The Canadian Senate held hearings in 2013 about the transport of hazardous materials after Vokes went to the media with what he said was proof that TransCanada was breaking the law. During the hearings the National Energy board testified they had verified much of the evidence Vokes provided.

The Senate’s report cites the National Energy Board's conclusion that TransCanada's incidents of non-compliance do not represent immediate threats to the safety of people or the environment. The report notes the board advanced its previously scheduled audit of TransCanada to include the specific concerns raised by Vokes, but recommends no further action.

“The lack of accountability with regulators is appalling,” Vokes told DeSmog Blog. He says he came forward because the oath he took to become an engineer requires him to put public safety first.

Tue, 2014-03-04 09:43Heather Libby
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Enbridge Announces $7B Line 3 Rebuild, Largest Project in Company History

Enbridge Line 3

In its largest capital project in history, Enbridge plans to do what Transcanada so far can't — ship more than half a million barrels of heavy oil across the U.S. border without President Barack Obama's direct approval.

Late Monday evening, Enbridge announced plans for its largest capital project in history— a $7 billion replacement of its Line 3 pipeline.

The existing Line 3 pipeline is part of Enbridge’s extensive Mainline system. The 34-inch pipe was installed in 1968 and currently carries light oil 1,660 km from Edmonton to Superior, Wis. 

While the Line 3 pipeline currently has a maximum shipping capacity of 390,000 barrels of light crude oil per day, pumping stations along the line have a much larger capacity (and can accommodate heavier oils). Enbridge plans to take advantage of this. Under the company's replacement plans, the new Line 3 pipeline will be widened by two inches, and built “using the latest available high-strength steel and coating technology.” By the time it goes into service in 2017, Line 3 will ship 760,000 barrels of oil across the border every day, nearly double what it currently moves. 

Wed, 2014-02-26 15:03Ben Jervey
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WHITEWASH: State Dept Keystone XL Inspector General Report Clears Botched Handling of Environmental Resources Management Conflicts

The State Department's Office of the Inspector General (OIG) has finally weighed in on potential conflicts of interest in the environmental assessments of the proposed Keystone XL pipeline. Sort of.

The office just released its long-anticipated report, capping off an investigation on whether Environmental Resources Management, the contractor hired by TransCanada to conduct the environmental impact study, had too close a relationship with TransCanada, and whether it deliberately hid those ties in filings with the State Department. 

On first look, the inspector general report takes an extremely narrow view of the potential conflicts, but does declare that the department's procedures for dealing with conflicts of interest are weak and need to be improved. 
 

Specifically, from the OIG's findings:

  • OIG did find that the process for documenting the contractor selection process, including the conflict of interest review, can be improved.
  • OIG also found that the Department’s public disclosures concerning its conflict of interest review could be improved.

Finally, the Office of the Inspector General makes these specific recommendations:

  • OIG recommends that the Department’s Bureau of Oceans and International Environmental and Scientific Affairs, in coordination with the Office of the Legal Adviser, enhance its guidance to more fully articulate its selection and conflict of interest review processes.
  • OIG recommends that the Department explain in greater detail the definition of “organizational conflict of interest” relied upon by the Department.
  • OIG recommends that the Department specify in its guidance the documentation required in the contractor selection and conflict of interest processes and establish standard operating procedures to capture and retain this information.
  • OIG recommends that the Department enhance its guidance to integrate a process for public disclosure of

appropriate information.

Attention will now turn to the Government Accountability Office, which will begin an investigation on the State Department's environmental review process. Earlier this week, Representative Raúl Grijalva of Arizona requested a GAO review, suggesting that the Keystone XL environmental assessment has been corrupted by conflicts of interest. “Nothing should be glossed over; nothing should be ignored,” Grijalva said. “The questions that we posed to GAO had to do with the State Department process. And if this is a tainted process, I suggest the president at that point shouldn't trust that information,”

DeSmogBlog will take a closer look at all the details in the report and update this post throughout the evening. 

Wed, 2014-02-26 12:26Indra Das
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U.S. EPA Denied Late Participation in Kinder Morgan Hearings, Exposes Shortcomings of New NEB Process

Kinder Morgan trans mountain Pipeline

The Canadian National Energy Board (NEB) rejected a request this month from the U.S. Environmental Protection Agency (EPA) to extend the deadline to apply as a participant in the public hearings on Kinder Morgan's Trans Mountain oil pipeline expansion.

The EPA was unaware of a February 12 deadline to apply as a participant in hearings on the proposed $5.4 million expansion of the Vancouver-to-Edmonton Trans Mountain pipeline, which would increase its capacity from 300,000 barrels per day (bpd) of diluted bitumen to 890,000 bpd.

The pipeline expansion, which is supported by 13 oil companies, will free the flow of landlocked Albertan oil to Asian markets overseas.

The EPA reportedly needed more time to “follow through with agency protocols and procedures” before applying to take part in the hearings, according to a notice filed with the NEB.

Wed, 2014-02-26 11:46Ben Jervey
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Keystone PipeLIES Exposed: New Film from Center for Media and Democracy

On Tuesday, the Center for Media and Democracy released a new short film that sets out to debunk the many false claims — the films calls them “pipeLIES” — used by promoters of the Keystone XL pipeline. These industry talking points, many of which are repeated without verification by mainstream media sources, have corrupted any reasonable public discourse on the pipeline, and the film's producers hope that using the video medium to expose the mistruths will lead to better public understanding of the true risks of the pipelines. 

The film, Keystone PipeLIES Exposed, takes a close and critical look at both ends of the proposed pipeline — from the open pit tar sands mines in Alberta to the toxic refineries in Port Arthur, Texas. But the meat of the 23-minute film looks at the pipeline itself — the route, the construction jobs, the spill risks, the communities and ecosystems that would be made vulnerable.

While traveling down the pipeline, so to speak, the film pays special attention to the talking points and falsehoods — the massively inflated job creation claims, promises of lower gas prices, and so on — that are constantly repeated by those who stand to profit from the pipeline's construction, and often by a mainstream media too lazy to verify them. 

Emmy Award-winning journalist Dave Saldana wrote, directed and produced the film. Saldana is also an attorney, and says this background was particularly useful in exploring and debunking many of the oil industry's suspicious claims. Saldana says:

I looked at the claims as a lawyer; what did the evidence show me? The evidence shows that its job creation claims are grossly inflated; that better, greener alternatives would aid America's energy independence and put more Americans to work for a longer time than the pipeline; and that the pumping of tar sands oil across the U.S. primarily for export to foreign countries poses enormous risks to America's water supply, food supply, and air quality. And that’s before you even get to what it does to climate change.”

Here's the film. You can also check out the PipeLIES Exposed site to find references for all the arguments debunking the lies. 

Keystone PipeLIES Exposed from Center for Media and Democracy on Vimeo.

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.

Tue, 2014-02-04 10:13Kai Nagata
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Is Keystone in the National Interest? Of Canada, That Is?

keystone xl

It's up to the U.S. President to decide whether the cross-border leg of the Keystone XL pipeline is in the national interest of his country. Ultimately, his criteria are less scientific than political. Does he stand to lose more by alienating those who support or oppose the project?

With midterm elections coming up in November, Obama doesn't have time to worry about Canada's hurt feelings. Our economy, environment and opinion are very low on his list of priorities.

But the strongest pro-Keystone arguments on the American side raise an uncomfortable question: if the pipeline is approved, who benefits a little bit — and who benefits a lot? In other words, who gets the short end of the stick?

Mon, 2014-02-03 11:59Sharon Kelly
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Keystone XL Decision Highlights Coziness Between Oil and Gas Industry, Obama Administration

This past week was good to the oil and gas industry. First, President Obama talked up jobs gains from drilling and labeled natural gas a “bridge fuel” in his State of the Union address, using terminology favored by natural gas advocates.

Then, on Friday, the Obama administration released a much-awaited assessment of the Keystone XL pipeline’s environmental impacts which concluded that pipeline construction “remains unlikely to  significantly impact the rate of extraction in the oil sands,” effectively turning a blind eye to the staggering carbon emissions from tar sands extraction and expansion plans.

While Mr. Obama’s warm embrace of fossil fuels surprised some environmentalists, it should come as little surprise in light of prior comments made by the CEO of the American Petroleum Institute (API).

“It's our expectation it will be released next week,” Jack Gerard confidently told Reuters, referring to the Keystone XL assessment, while many were still speculating that the report might not be issued until after the November mid-term election. “We're expecting to hear the same conclusion that we've heard four times before: no significant impact on the environment.”

Mr. Gerard added that these predictions were based on sources within the administration.

In fact, as the Keystone decision-making process has unfolded, the oil and gas industry has had — as they’ve enjoyed for decades — intensive access to decision-making in the White House.  This access has helped form the Obama administration’s schizophrenic energy policy, in which the President backs both renewable energy and fossil fuels without acknowledging that the two are competitors. When fossil fuels gain market share, renewables lose.

While even the World Bank has called for immediate action on climate change, the API, which has worked hard to shape Obama’s views on fossil fuels, has also worked to create doubt around the very concept of fossil-fuel-driven climate change and to downplay the impact their industry has had.

There’s no question that the oil and gas industry wields enormous sway inside Washington D.C.

The API has spent $9.3 million dollars this year alone on reportable lobbying expenses, the highest amount in the group’s history, according to data from OpenSecrets.org. This summer, a DeSmog investigation found that API spent $22.03 million dollars lobbying at the federal level on Keystone XL and/or tar sands issues since June 2008, when the pipeline project was first proposed.

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.

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