Keystone XL

Fri, 2013-08-09 07:00Caroline Selle
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Corruption in the Pipeline: A Timeline of Keystone XL Misinformation

Though plagued by corruption, the Keystone XL (KXL) “zombie pipeline” refuses to die.

While firsthand accounts from front line communities in Alberta, Nebraska, Oklahoma, and Texas have galvanized activists, the interconnected web of corporate lobbyists, oil executives, and Obama administration officials continue to push the project forward.

Thankfully, the State Department has launched an inquiry into conflicts of interest in the Keystone XL pipeline (KXL) review, specifically looking at the troubling revelations about TransCanada contractor, Environmental Resources Management (ERM Group).

Listed below is a series of selected controversies as well as the key dates around which the pipeline permitting process revolves.

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.

Fri, 2013-08-02 08:00Derek Leahy
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New TransCanada Pipeline Plan Dwarfs Keystone XL

Energy East pipeline TransCanada

TransCanada Corp. announced yesterday they will proceed with plans to create a pipeline capable of shipping 1.1 million barrels per day (bpd) of oil and tar sands bitumen from western Canada to refineries and ports in Quebec and New Brunswick. Called “Energy East”, this west-to-east pipeline would dwarf the oil delivery capacity of TransCanada's proposed Keystone XL pipeline in the US (830,000 bpd).

The premiers of Alberta and New Brunswick declared Energy East a “nation building” pipeline. The pipeline will pass through Alberta, Saskatchewan, Manitoba, Ontario, Quebec and New Brunswick.

“This is an historic opportunity to connect the oil resources of western Canada to the consumers of eastern Canada, creating jobs, tax revenue and energy security for all Canadians for decades to come,” said Russ Girling, TransCanada's president and chief executive officer, in a statement.

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. 

Thu, 2013-07-18 10:23Steve Horn
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Revealed: Gen. David Petraeus' Course Syllabus Features "Frackademia" Readings

Records obtained by DeSmogBlog pertaining to City University of New York (CUNY) Macaulay Honors College's hiring of former head of the Central Intelligence Agency (CIA) David Petraeus to teach a seminar this coming fall reveal that his syllabus features two of the most well-known “frackademia” studies. 

“Frackademia” is shorthand for oil and gas industry-funded research costumed as independent economics or science covering the topic of hydraulic fracturing (“fracking”), the controversial horizontal drilling process via which oil and gas is obtained deep within shale rock basins.

According to the syllabus, Petraeus will devote two weeks to energy alone, naming those weeks “The Energy Revolution I” and “The Energy Revolution II.” The two “frackademia” studies Petraeus will have his students read for his course titled “The Coming North American Decade(s)? are both seminal industry-funded works.

One of them is a study written by industry-funded National Economic Research Associates (NERA) concluding liquified natural gas (LNG) exports are beneficial to the U.S. economy, despite the fact that exporting fracked gas will raise domestic home-heating and manufacturing prices. NERA was founded by “father of deregulation” Alfred E. Kahn. The study Petraeus will have his students read was contracted out by the U.S. Department of Energy (DOE) to NERA.

The other, a study written by then-Massachusetts Institute of Technology (MIT) research professor Ernest Moniz - now the head of the DOE - is titled “The Future of Natural Gas” and also covers LNG exports. DOE oversees the permitting process for LNG exports. That study was funded by the Clean Skies Foundation, a front group for Chesapeake Energy and covered in-depth in the Public Accountability Initiative's report titled, “Industry Partner or Industry Puppet?

Noticeably absent from the reading list: studies tackling the climate impacts, air quality impacts, over-arching ecological impacts such as water contamination, wastewater impacts and supply issues (aka diminishing supply)

Together, the two crucial studies on the syllabus reading list - and the lack of critical readings on the topic of fracking - offers a gimpse into the stamp of legitimacy industry-funded studies get when they have the logo of elite research universities on them. It's also another portrayal of the ascendancy of the corporate university.  

Thu, 2013-07-18 05:00Steve Horn
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State Dept Keystone XL Environmental Reviewer Claimed Delaware Tar Sands Refinery Made Air Cleaner

A DeSmogBlog investigation reveals Environmental Resources Management, Inc. (ERM Group), the contractor that performed the environmental review for TransCanada's Keystone XL tar sands export pipeline, was also recently hired by a major Delaware City refinery to study air quality around the plant. 

This “study” was funded by the refinery itself, owned by Delaware City Refining Company, a wholly-owned subsidiary of PBF EnergyDelaware City Refinery is the recipient of 180,000 barrels per day of fracked oil from North Dakota's Bakken Shale along with oil extracted from Alberta's tar sands - both referred to as the “holy grail” by the Refinery's owner at a Feb. 2013 meeting - which sojourn eastward via mile-long freight rail cars owned by Norfolk Southern.

Conducted in March 2013, the study concluded the “air quality [near the refinery] is as good as, and in some cases, better than samples taken during the 2011 study before the refinery restart,” as explained on a flyer obtained by DeSmog promoting two public meetings hosted by ERM to discuss results. 

However, an independent air sample study detected the cancer-causing compound benzene far above levels set by the Environmental Protection Agency, as well as soot and sulfur dioxide, in an area one mile from the refinery.

ERM Group - a dues-paying member of American Petroleum Institute (API), which has spent over $22 million lobbying on tar sands and Keystone XL since its June 2008 proposal - said that because Alberta's tar sands will get to market with or without Keystone XL, the tube's northern half “is unlikely to have a substantial impact on the rate of [tar sands] development.”

Under that logic, Keystone XL - which President Obama said in in the Climate Action Plan he will only approve if it doesn't “significantly exacerbate…carbon pollution” - won't have a “substantial impact” on climate change. That could mean “game on” for the pipeline. 

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.

Wed, 2013-07-10 12:27Steve Horn
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State Dept Contractor ERM Lied About TransCanada Ties, Another Fatal Flaw of Environmental Review

The contractor the Obama U.S. State Department hired for the Supplemental Environmental Impact Statement (SEIS) of the northern half of TransCanada's Keystone XL (KXL) tar sands export pipeline overtly lied on its conflict-of-interest disclosure form that it signed and handed to State in June 2012.

A major research dossier unfurled today by Friends of the Earth-U.S. (FOE-U.S.) and The Checks & Balances Project (CBP) shows that Environmental Resources Management, Inc. (ERM Group) played “Pinocchio” in explaining its ties - or as they say, lack thereof - to Big Oil, tar sands and TransCanada in particular on its conflict-of-interest form.

The two groups dug deep and revealed State's contractor ERM and its subsidiary Oasis Environmental both have ongoing contractual relationships with the Alaska Gas Project - now known as the South Central LNG Project - co-owned by TransCanada, ExxonMobil, ConocoPhillips and BP. Further, ERM's Socioeconomic Advisor Mark Jennings served as a “Consultant to ExxonMobil Development Company for the Alaska Pipeline Project, according to his now-scrubbed LinkedIn profile

ERM's own documents - FOE-U.S. and CBP further explain - also reveal the multinational firm has business ties with over a dozen companies active in the Alberta tar sands, including Exxon, Shell, Chevron, Conoco Phillips, Total and Syncrude.

On its conflict-of-interest form, ERM said it had no “direct or indirect relationship … with any business entity that could be affected in any way by the proposed work.” Clearly, that's far from the case. 

In March, ERM Group - a City of London-based dues-paying member of the American Petroleum Institute (API) with a history of rubber-stamping ecologically hazardous oil and gas infrastructure projects - said KXL's northern half “is unlikely to have a substantial impact on the rate of development” of the tar sands in its SEIS. Thus, it will also have little impact on climate change, according to ERM's SEIS, contracted out by TransCanada on behalf of the State Department.

FOE-U.S. says these most recent developments further call the entire SEIS into question, and that doesn't include the fact that State recently revealed it's clueless as to the exact route of the Keystone XL.

Mon, 2013-07-08 09:37Steve Horn
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State Department Admits It Doesn't Know Keystone XL's Exact Route

Keystone XL's route is unknown

The State Department's decision to hand over control to the oil industry to evaluate its own environmental performance on the proposed Keystone XL tar sands pipeline has led to a colossal oversight.

Neither Secretary of State John Kerry nor President Barack Obama could tell you the exact route that the pipeline would travel through countless neighborhoods, farms, waterways and scenic areas between Alberta's tar sands and oil refineries on the U.S. Gulf Coast.

A letter from the State Department denying an information request to a California man confirms that the exact route of the Keystone XL export pipeline remains a mystery, as DeSmog recently revealed.

Generic maps exist on both the
State Department and TransCanada websites, but maps with precise GIS data remain the proprietary information of TransCanada and its chosen oil industry contractors. 

Thomas Bachand, a San Francisco-based photographer, author, and web developer discovered this the hard way. A year and a half after he first filed a Freedom of Information Act (FOIA) request seeking the GIS data for his Keystone Mapping Project, Mr. Bachand received a troubling response from the State Department denying his request.

In the letter, the State Department admits that it doesn't have any idea about the exact pipeline route - and that it never asked for the basic mapping data to evaluate the potential impacts of the pipeline. 

Where will KXL intersect rivers or cross ponds that provide drinking water? What prized hunting grounds and fishing holes might be ruined by a spill? How can communities prepare for possible incidents? 

The U.S. State Department seems confident in letting the tar sands industry - led in this instance by TransCanada, whose notorious track record with Keystone 1 includes more than a dozen spills in its first year of operation - place its pipeline wherever it wishes.

“[State] does not have copies of records responsive to your request because the Environmental Impact Statement for the Keystone pipeline project was created by Cardno ENTRIX under a contract financed by TransCanada Keystone Pipeline LP, and not the U.S. government,” reads the State Department's letter denying Bachand's information request.

Neither Cardno ENTRIX nor TransCanada ever submitted GIS information to the Department of State, nor was either corporation required to do so. The information that you request, if it exists, is therefore neither physically nor constructively under the control of the Department of State and we are therefore unable to comply with your FOIA request.”

As Mr. Bachand pointed out in a July 3 blog post: “Without this digital mapping information, the Keystone XL’s Final Environmental Impact Statement (FEIS) and Supplemental Environmental Impact Statement (SEIS) are incomplete and cannot be evaluated for environmental impacts.”

Tue, 2013-07-02 08:00Steve Horn
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Tar Sands Coal Export Boom: Petcoke Exports Second Highest Ever in April

With many eyes honed in on the Powder River Basin coal export battle in the Northwest, another coal export boom is unfolding on the U.S. Gulf Coast. Although no coal production is actually taking place here, a filthy fuel with even more severe climate impacts than coal is leaving port bound for foreign power plants. 

Meet petroleum coke, or “petcoke,” what Oil Change International described in a Jan. 2013 report as “The Coal Hiding in the Tar Sands.” 

Petcoke “is a byproduct of coking, a process that takes very heavy oil and produces gasoil (a precursor to diesel or vacuum gasoil) and naphtha,” Platts explains. “The coke is used as a fuel for power plant, in a kiln in the production of concrete or, for some specialty grades, in the production of aluminum or other metals.”

As relayed by Platts, the Energy Information Agency (EIA) is reporting the U.S. exported the second-highest amount of petroleum coke in U.S. history in AprilEIA's April data show export levels of 17.78 million barrels, second only to Dec. 2011's 20.44 million barrels of petcoke.   

With the tar sands' expansion has come an accompanying petcoke export boom of historical proportion.

“The US exported a record 184.17 million barrels of petroleum coke in 2012, a record up over 20 million barrels compared to 2010,” Platts explained. 

According to the EIA report, China is the current top beneficiary of the U.S. petcoke export boom, importing 3.20 million barrels of petcoke in April, the third most it's ever imported from the U.S.

China imported 4.93 million barrels of petcoke from the U.S. in Dec. 2011 and another 3.64 million barrels in Jan. 2013.

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