Keystone XL

Thu, 2013-12-12 14:45Steve Horn
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Federal Pipeline Safety Agency Approves Startup of Keystone XL Southern Half

DeSmogBlog has learned that TransCanada cleared the final hurdle for the southern half of its Keystone XL tar sands pipeline, receiving a green light last week from the Pipeline and Hazardous Materials Safety Administration (PHMSA) following a review of several safety concerns.

TransCanada announced this week that it has begun injecting oil into the southern half of its Keystone XL pipeline in preparation for commercial operations.  

Leading up to PHMSA giving Keystone XL south the go-ahead to start up, Public Citizen raised several questions about the safety of the pipeline. 

Will TransCanada respond to greivances raised about dents, faulty welding, pipeline material designated “junk” and other issues raised in the consumer advocacy group's November investigation? And what about September 10 and September 26 warning letters obtained by Public Citizen raising similar concerns from PHMSA to TransCanada?

Both TransCanada and PHMSA have provided DeSmogBlog answers to these questions.

Rebranded the “Gulf Coast Pipeline Project” by TransCanada, the 485-mile Cushing, Oklahoma to Port Arthur, Texas Keystone XL southern half — approved via a March 2012 Executive Order from President Barack Obama — is set to open for business by mid- to late-January.

Tue, 2013-12-10 12:01Steve Horn
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TransCanada Begins Injecting Oil Into Keystone XL Southern Half; Exact Start Date A Mystery

Keystone XL's southern half is one step closer to opening for business. TransCanada announced that “on Saturday, December 7, 2013, the company began to inject oil into the Gulf Coast Project pipeline as it moves closer to the start of commercial service.”

The Sierra Club's legal challenge to stop the pipeline was recently denied by the U.S. Court of Appeals for the Tenth Circuit, so the southern half, battled over for years between the industry and environmentalists, will soon become a reality.

According to a statement provided to DeSmog by TransCanada, “Over the coming weeks, TransCanada will inject about three million of [sic] barrels of oil into the system, beginning in Cushing, Oklahoma and moving down to the company’s facilities in the Houston refining area.”

In mid-January, up to 700,000 barrels per day of Alberta's tar sands diluted bitumen (dilbit) could begin flowing through the 485-mile southern half of TransCanada's pipeline, known as the Gulf Coast Project. Running from Cushing, Oklahoma to Port Arthur, Texas, the southern half of the pipeline was approved by both a U.S. Army Corps of Engineers Nationwide Permit 12 and an Executive Order from President Barack Obama in March 2012.

BloombergThe Canadian Press and The Oklahoman each reported that the Gulf Coast Project pipeline is now being injected with oil. Line fill is the last key step before a pipeline can begin operations. 

“There are many moving parts to this process – completion of construction, testing, regulatory approvals, line fill and then the transition to operations,” TransCanada spokesman Shawn Howard told DeSmog. “Line fill has to take place first, then once final testing and certifications are completed, the line can then go into commercial service.”

Residents living along the length of the southern half will have no clue about the rest of the start-up process, as TransCanada says it won't provide any more information until the line is already running. “For commercial and contractual reasons, the next update we will provide will be after the line has gone into commercial service,” the company announced.

When DeSmog asked whether the company is currently injecting conventional oil or diluted bitumen sourced from the Canadian tar sands, TransCanada's Howard replied: 

“Many people like to try and categorize the blend, etc., however we are injecting oil into the pipeline. As you’ve likely seen me quoted before, oil is oil and this pipeline is designed to handle both light and heavy blends of oil, in accordance with all U.S. regulatory standards.

I am not able to provide you the specific blend or breakdown as we are not permitted (by our customers) from disclosing that information to the media. There are very strict confidentiality clauses in the commercial contracts we enter into with our customers, and that precludes us from providing that. The reason is that if we are providing information about a specific blend, when it is in our system, etc. – that has the potential to identify who our customers may be or allow others to take financial positions in the market and profit from that information when others do not have access to the same information. This has much farther reaching impacts for the financial markets (and ultimately all of us).”

Tue, 2013-12-03 05:00Julie Dermansky
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"Just the Reality:" Pipeline Safety Official Admits He’d Avoid Buying A Home Near Pipelines Like Keystone XL

A federal pipeline safety official admitted on camera recently that he made a point of ensuring his home wasn’t in the path of any pipelines before buying it, and that he wouldn't advise anyone to build in the path of a pipeline. 

The official, Bill Lowry, is responsible for community assistance and technical services for the southwest region of the Pipeline and Hazardous Materials Safety Administration (PHMSA).

At a Public Safety Trust conference on Nov. 21, Lowry was asked, “Knowing what you know about the problems in the Keystone XL's construction, what would you do if your house was in its path?”

His answer:  “Here is what I did when I bought my house — I looked on all the maps, I looked for all the well holes. I found there is nothing around me but dry holes and no pipelines. And it's not because I'm afraid of pipelines, it's not because I think something will happen. It's because something could happen. … You're always better off, if you have a choice….” 

He trailed off before finishing his sentence, but added that, “If I was building a house, I wouldn't build it on a refinery, … I wouldn't build it on a pipeline, because they're all industrial facilities. That's just the reality.”

Watch video of PHMSA’s Bill Lowry explaining what measures he took to keep his own family safe from pipelines, and the “reality” of pipeline risks:

Lowry's answer was not terribly reassuring to those along the Keystone XL route, inferring they should have done their due diligence before settling in,” said Ramsey Sprague, spokesperson for the Tar Sands Blockade. “Lowry expects the public to trust that regulators will keep them safe, although he himself doesn't trust it enough to buy property near a pipeline.”

Thu, 2013-11-28 13:10Brendan DeMelle
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Tar Sands! It’s What’s For Dinner!

tar sands thanksgiving

This Thanksgiving, Americans can be thankful that Canadian tar sands crude isn’t flowing across the border through the Keystone XL to refineries and export facilities on the Gulf Coast.

Canada, which is home to the third largest deposit of oil on the planet, is looking to export the fuel source from U.S. soil, because Canadians won’t let industry ship it from their own shores. The Keystone XL pipeline, which would transport the dilbit concoction from Alberta, Canada down to Texas, is pending approval from the Obama Administration and will only be cleared for construction if it doesn’t exacerbate climate change (although the southern half of the pipeline has already been built).

Nextgen Climate Action, a project of the Next Generation, released this video on Keystone crude just in time for Thanksgiving to show just how…strange…an appetite for dirty crude really is.

Wed, 2013-11-27 10:58Steve Horn
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Firm with History of Spill Cover-Ups Hired to Clean Up North Dakota Oil Spill

Tesoro Logistics — the company whose pipeline spilled more than 800,000 gallons of fracked Bakken Shale oil in rural North Dakota in September — has hired infamous contractor Witt O'Brien's to oversee its clean-up of the biggest fracked oil spill in U.S. history.

The oil was obtained via hydraulic fracturing (“fracking”) in the Bakken Shale basin.

As revealed after ExxonMobil hired the same firm in the aftermath of a 210,000-gallon tar sands oil spill in April 2013, Witt O'Brien's — formerly known as OOPS, Inc. — is a firm with a history of oil spill cover-ups dating back to the Exxon Valdez oil spillIt also oversaw the spraying of toxic oil dispersants into the Gulf of Mexico during BP's summer 2010 mega-spill and a literal cover-up of Enbridge's massive “dilbit disaster” tar sands pipeline spill in Michigan. 

Witt O'Brien's also won a $300,000 contract to develop an emergency response plan for TransCanada’s Keystone XL tar sands export pipeline in August 2008.

The same firm is now maintaining Tesoro's website dedicated to offering updates — also known as crisis communications management — for the massive spill's recovery efforts at TesoroAlert.com

Buried at the bottom of the website is a mention that the site is “powered by the PIER System.” PIER — short for “Public Information Emergency Response” — is owned by Witt O'Brien's.

Screen Shot Taken Nov. 25, 2013

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.”

Fri, 2013-11-22 12:37Steve Horn
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US Court Denies Halt on Pipeline Set to Replace Keystone XL Northern Half

Flanagan south, keystone xl pipeline

The ever-wise Yogi Berra once quipped “It's like déjà vu all over again,” a truism applicable to a recent huge decision handed down by the United States District Court for the District of Columbia. 

A story covered only by McClatchy News' Michael Doyle, Judge Ketanji Brown Jackson shot down Sierra Club and National Wildlife Federation's (NWF) request for an immediate injunction in constructing Enbridge's Flanagan South tar sands pipeline in a 60-page ruling.

That 600-mile long, 600,000 barrels per day proposed line runs from Flanagan, Illinois - located in the north central part of the state - down to Cushing, Oklahoma, dubbed the “pipeline crossroads of the world.” The proposed 694-mile, 700,000 barrels per day proposed Transcanada Keystone XL northern half also runs to Cushing from Alberta, Canada and requires U.S. State Department approval, along with President Barack Obama's approval. 

Because Flanagan South is not a border-crossing line, it doesn't require the State Department or Obama's approval. If Keystone XL's northern half's permit is denied, Flanagan South - along with Enbridge's proposal to expand its Alberta Clipper pipeline, approved by Obama's State Department during Congress' recess in August 2009 - would make up that half of the pipeline's capacity and then some. 

Mon, 2013-11-18 05:00Sharon Kelly
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George W. Bush on Keystone XL: "Build the Damn Thing"

Make private companies happy. Don’t worry about the environment. Stop fretting about long-term sustainability. Forget renewables, property concerns, the safety of our water and air. Make private companies happy.

This was the 43rd president's message to the current administration at the DUG East conference held by the shale gas industry on Thursday.

With characteristic bluntness, George W. Bush spoke his mind on energy policy to several thousand oil and gas executives gathered in Pittsburgh at an exclusive luncheon on Wednesday.

“I think the goal of the country ought to be 'how do we grow the private sector?'” Mr. Bush said. “That ought to be the laser-focus of any administration. And therefore, once that’s the goal, an issue like Keystone pipeline becomes a no-brainer.”

“If private sector growth is the goal and Keystone pipeline creates 20,000 new private sector jobs, build the damn thing,” Mr. Bush said, prompting a burst of applause from the more than 4,000 oil and gas executives attending the conference.

In his candor, Mr. Bush also highlighted the essence of what burns bright but short in the fossil-fuel doctrine.

In emphasizing a get-it-now, don’t-worry-about-the-future approach to energy, he drove home why the Keystone XL pipeline has become such a lightning rod issue. The reason: it is symbolic of the overall short-sightedness of increasing our long-term addiction to oil rather than pushing with urgency toward renewable energy.

Thu, 2013-11-14 05:29Julie Dermansky
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Don't Mess With Texas: Michael Bishop's Battle Against TransCanada Keystone XL Tar Sands Pipeline

If you ever doubted that one man's stand against the oil and gas industry can make a difference, consider the case of Michael Bishop. The 65 year old Marine veteran, first year medical student, farmer, and partner in a bio-diesel engineering venture, resides in Douglass, Texas, where he is trying to stop the Keystone XL pipeline by means of multiple lawsuits.

His federal case against the U.S. Army Corps of Engineers won an entry of default because the Corps failed to respond in the time allocated by the court. The lawsuit asserts the Corps granted environmental permits to TransCanada Keystone XL pipeline illegally. It could be a short-lived victory for Bishop. 

Listen to Michael Bishop explain his lawsuit against TransCanada:

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.  

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