American Petroleum Institute

Recent Federal Court Decision Could Muddy Waters for Keystone XL South, Flanagan South

On June 6, the U.S. Court of Appeals for the District of Columbia Circuit handed down a ruling that will serve as important precedent for the ongoing federal legal battles over the Keystone XL and Flanagan South tar sands pipelines.

In the Delaware Riverkeeper v. Federal Energy Regulatory Commission (FERC) case, judges ruled that a continuous pipeline project cannot be segmented into multiple parts to avoid a comprehensive National Environmental Policy Act (NEPA) review. This is what Kinder Morgan proposed and did for its Northeast Upgrade Project.

As reported on DeSmogBlog, the U.S. Army Corps of Engineers did the same thing to streamline permitting for both the southern leg of TransCanada's Keystone XL and Enbridge's Flanagan South. Sierra Club and co-plaintiffs were denied injunctions for both pipelines in October and November 2013, respectively.

Delaware Riverkeeper v. FERC dealt with breaking up a new 40-mile long pipeline upgrade into four segments. For the other two cases, the Army Corps of Engineers shape-shifted the two projects — both hundreds of miles long each — into thousands of “single and complete” projects for permitting purposes.

On the day of the Delaware Riverkeeper v. FERC decision, Sierra Club attorney Doug Hayes submitted the case as supplemental authority for the ongoing Flanagan South case.

On May 5, Hayes also submitted paperwork to appeal the Keystone XL South decision in front of the U.S. Court of Appeals for the Tenth Circuit, which was docketed by the clerk of Ccurt the next day.

Hayes told DeSmogBlog his side will file an opening brief for the appeal on July 30. It seems likely Delaware Riverkeeper v. FERC will be a key part of that appeal.

In a sign of the importance of the outcome for the oil and gas industry, the American Petroleum Institute (APIentered the Sierra Club v. Army Corps of Engineers case on Keystone XL as an intervenor on May 16, represented by corporate law firm Hunton & Williams.

At the federal level, Hunton & Williams lobbies on behalf of Koch Industries, a company with a major stake in tar sands leases and refining.

Meeting Logs: Obama White House Quietly Coddling Big Oil on “Bomb Trains” Regulations

When Richard Revesz, Dean Emeritus of New York University Law School, introduced Howard Shelanski at his only public appearance so far during his tenure as Administrator of the White House Office of Information and Regulatory Affairs (OIRA), Revesz described Shelanski as, “from our perspective, close to the most important official in the federal government.”

OIRA has recently reared its head in a big way because it is currently reviewing the newly-proposed oil-by-rail safety regulations rolled out by the Department of Transportation (DOT) and Pipeline and Hazardous Materials Safety Administration (PHMSA).   

During his presentation at NYU, Shelanski spoke at length about how OIRA must use “cost-benefit analysis” with regards to regulations, stating, “Cost-benefit analysis is an essential tool for regulatory policy.”

But during his confirmation hearings, Shelanski made sure to state his position on how cost-benefit analysis should be used in practice. Shelanski let corporate interests know he was well aware of their position on the cost of regulations and what they stood to lose from stringent regulations. 

Regulatory objectives should be achieved at no higher cost than is absolutely necessary,” Shelanski said at the hearing.

Earthjustice to Defend Right of Dryden, NY, to Ban Fracking Within Town Limits

Don't Frack New York

On June 3rd, lawyers from Earthjustice will argue to New York’s highest court that the town board of Dryden, NY, has the right to ban fracking within its borders.   

Gas company Norse Energy has sued the Town of Dryden to try to negate its town council’s 2011 unanimous vote to ban fracking. Dryden’s decision has withstood challenges at two lower levels of New York’s judicial system, but this decision in the state’s highest court will be the one that sets precedent.

Dryden’s initial efforts to ban fracking were organized by a group of citizens with legal help from Helen Slottje, a lawyer who has since won the prestigious Goldman Prize for her work on this issue. Once the gas industry sued the Town of Dryden, Earthjustice volunteered to take on the case and has represented the town in this legal battle.

Earthjustice has produced a video, narrated by actor and activist Mark Ruffalo, which tells the story of the Dryden residents who organized the petition drive that led to the unanimous town board vote establishing the ban on fracking. 

Earth Day Greenwash: API Front Group Iowa Energy Forum Sponsors Pro-Keystone XL Event

The political carnival that is the prelude to the Iowa caucuses has started over a year and a half early. At the center of it this time around: a game of political hot potato over the northern leg of TransCanada's Keystone XL tar sands pipeline.

American Petroleum Institute (API) deployed one of its paid consultants — former Obama Administration National Security Advisor General James “Jim” Jones — to deliver an Earth Day address in the home state of the presidential caucuses at Drake University in Des Moines, Iowa.

James Jones used his time on the podium to promote the Keystone XL tar sands pipeline, which another James — retired NASA climatologist James Hansen — once called a “fuse to the biggest carbon bomb on the planet.”

“General James Jones…will discuss the benefits of the pipeline initiative, including more jobs, less dependence on foreign oil, and cheaper energy costs for Americans,” explained an April 15 Drake University press release promoting the event.

Gen. James Jones; Photo Credit: Wikimedia Commons

Days after the Obama Administration decided to delay making a decision on Keystone XL North until after the 2014 mid-term elections, API went on the offensive, with Jones acting as the group's surrogate.

API is using one of its numerous front groups that could factor most prominently during election season: the Iowa Energy Forum, chief sponsor and organizer of the event titled, “The Pipeline to National Security Discussion.”

Wine and Milk vs. Oil and Gas: Existing Industries Go Up Against Fossil Fuel Job Promises

Ken Stanton’s 400-cow dairy farm lies in the path of the proposed Constitution Pipeline, which would carry fracked natural gas from Pennsylvania to New York.

Three generations of Stanton’s family spoke in opposition to the pipeline during a packed public comment session at a hearing at Cobleskill-Richmondville high school on March 31.

The pipeline would cut through my land. With eminent domain, there’s nothing I can do. It doesn’t feel like America anymore,” Stanton told the Daily Gazette.  

It’s people like Stanton who stand to lose in the face of new fossil fuel developments, despite the job-creation claims of industry.

Until recently, new projects were justified in the name of American energy independence, but with the new push to lift the Jones act to allow for crude oil exports and the big PR effort to ramp up liquid petroleum gas (LPG) exports, the new spin is job creation. 

Dirty Energy Job Numbers Don't Add Up

A foolproof way to sell an idea to the American public is to link that idea to jobs. If you are able to convince them that your proposal will either preserve jobs already in place, or even better, create new jobs, it makes it much more difficult to ignore. 

This is why the promise of jobs has been used to sell the Keystone XL pipeline to the public, and the concept of preserving jobs has been used to fight the tightening of safety standards for the coal industry.

In both of those examples, the dirty energy industry has grossly inflated the net economic benefit of their activities, but that hasn’t stopped politicians and pundits from parroting those same “job creation” talking points to the national media.

The “job creator” talking points have proven to be so successful for the dirty energy industry that they have begun using them to defend everything from their $4 billion a year in federal tax subsidies, to their $1 trillion in net profits over the last decade.  They can’t be the bad guys because they employ millions of hard-working Americans, so their story goes.

But when you stop to analyze the industry’s numbers, numbers that they’ve sworn are accurate in front of Congress, the math simply doesn’t add up.

South Portland Tar Sands Pipeline Defeat: Big Oil Outspends Local Grassroots 6-to-1

Of all the elections and ballot measures voted on around the country on Tuesday, perhaps the most egregious example of the fossil fuel industry’s money influencing an outcome was seen in South Portland, Maine.

Voters in the coastal city were deciding whether to approve a ballot item that would have essentially prevented the loading of tar sands crude onto ships in the South Portland harbor.

The proposed Waterfront Protection Ordinance, which appeared on the ballot after the Protect South Portland citizens group gathered enough signatures this past Spring, was voted down by less than 200 votes, out of 8,714 total votes cast.

In the months leading up to the vote, local residents were bombarded with media and direct mail campaigns opposing the ordinance. The week before the election, campaign finance reports revealed that the oil industry had pumped over $600,000 into ads and mailings opposing the measure.

The Save Our Working Waterfront campaign received most of its funding from big oil companies and industry groups like Citgo, Irving, and the American Petroleum Institute. A good chunk of the money raised - $123,427 to be exact - was used to hire the Maryland-based consultancy DDC Advocacy, which advertises its ability to organize online campaigns and “local grassroots” advocacy.

Contrast that $600,000 with the roughly $100,000 raised by the three local groups, including Protect South Portland, to support the ordinance.

According to Crystal Goodrich, who organized the door-to-door campaign efforts for Protect South Portland, the oil industry spent more per voter - about $32 per voter in this town of just 19,000 voters - than in even the most expensive elections across the country. “The oil industry bought this election at more than $135 per vote,” said Goodrich, calculating the cost for each “no” vote.

Ohio Clean Energy Still in Koch & ALEC Crosshairs

Crossposted from Greenpeace’s blog: The Witness.

Ohio is currently fighting this year's final battle in a nationally-coordinated attack on clean energy standard laws, implemented by the American Legislative Exchange Council (ALEC) and other groups belonging to the secretive corporate front group umbrella known as the State Policy Network (SPN).

What a Secretly-Negotiated Free Trade Agreement Could Mean for Fracking in the U.S.

A trade agreement being secretly negotiated by the Obama administration could allow an end run by the oil and gas industry around local opposition to natural gas exports. This agreement, called the Trans-Pacific Partnership, is being crafted right now – and the stakes for fracking and shale gas are high.

While the vast majority of the opposition to fracking in the US has focused on domestic concerns – its impact on air and water, local land rights, misleading information about its finances – less attention has been paid to a topic of colossal consequence: natural gas exports.

At least 15 companies have filed applications with the federal Department of Energy to export liquified natural gas (LNG). The shale gas rush has caused a glut in the American market thanks to fracking, and now the race is on among industry giants to ship the liquefied fuel by tanker to export markets worldwide, where prices run far higher than in the U.S.

As drilling has spread across the U.S., grassroots organizing around unconventional oil and gas drilling and fracking has grown to an unprecedented level in many communities. Public hearings and town halls from New York to California have been flooded with concerned scientific experts, residents and small business owners and farmers who stand to be impacted by the drilling boom.

Drilling advocates have become increasingly concerned about how grassroots organizing has expanded over the past 5 years. “Meanwhile, the oil and gas industry has largely failed to appreciate social and political risks, and has repeatedly been caught off guard by the sophistication, speed and influence of anti-fracking activists,” one consultant warned the industry last year.

Some of the most resounding setbacks the drilling industry has faced have come at the state or local level. Bans and moratoria have led drilling companies to withdraw from leases in parts of the country, abandoning, at least for the short term, plans to drill.

But when it comes to natural gas exports – which many analysts have said are key for the industry’s financial prospects –independent experts and local organizers may soon find themselves entirely shut out of the decision-making process, if the oil and gas industry has its way.

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. 


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