diluted bitumen

Judges Nixing Keystone XL South Cases Had Tar Sands-Related Oil Investments

On August 4, the U.S. Appeals Court for the 10th Circuit shot down the Sierra Club's petition for rehearing motion for the southern leg of TransCanada's Keystone XL tar sands export pipeline. The decision effectively writes the final chapter of a years-long legal battle in federal courts. 

But one of the three judges who made the ruling, Bobby Ray Baldock — a Ronald Reagan nominee — has tens of thousands of dollars invested in royalties for oil companies with a major stake in tar sands production in Alberta.  And his fellow Reagan nominee in the Western District of Oklahoma predecessor case, David Russell, also has skin in the oil investments game.  

The disclosures raise questions concerning legal objectivity, or potential lack thereof, for the Judges. They also raise questions about whether these Judges — privy to sensitive and often confidential legal details about oil companies involved in lawsuits in a Court located in the heart and soul of oil country — overstepped ethical bounds. 

These findings from a DeSmog investigation precede President Barack Obama's expected imminent decision on the northern, border-crossing leg of Keystone XL.

FBI Advisory: Oil Trains At Risk of "Extremist" Attack, But Lacks "Specific Information" To Verify

A documentmarked “Confidential” and published a year ago today, on July 18, 2014, by the Federal Bureau of Investigation (FBI) concluded that “environmental extremists” could target oil-by-rail routes, as first reported on by McClatchyBut the Bureau also concedes upfront that it lacks “specific information” verifying this hunch.

Rail industry lobbying groups published the one-page FBI Private Sector Advisory as an exhibit to a jointly-submitted August 2014 comment sent to the U.S. Department of Transportation's (DOT), which has proposed “bomb trains” regulations currently under review by the White House Office of Information and Regulatory Affairs (OIRA)

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.

Appeals Court Rules Keystone XL South Approval Was Legal, Lifting Cloud Over TransCanada

In a 3-0 vote, the U.S. Appeals Court for the Tenth Circuit has ruled that the southern leg of TransCanada's Keystone XL pipeline was permitted in a lawful manner by the U.S. Army Corps of Engineers. 

Keystone XL South was approved via a controversial Army Corps Nationwide Permit 12 and an accompanying March 2012 Executive Order from President Barack Obama. The pipeline, open for business since January 2014, will now carry tar sands crude from Cushing, Oklahoma to Port Arthur, Texas without the cloud of the legal challenge hanging over its head since 2012.

California State of Emergency: Up To 105,000 Gallons of Oil Spill in Santa Barbara from Plains All American Pipeline

Up to 105,000 gallons of oil obtained via offshore drilling have spilled from a pipeline owned by Plains All American at Refugio State Beach in Santa Barbara County in California. At least 21,000 gallons have poured into the Pacific Ocean and the spill's impacts stretch nine miles, according to the Associated Press.

Science vs Spin: Dilbit Sinks in the Real World, But Not in Studies Funded by Oil Industry

EPA Kalamazoo River Cleanup

Once the oil started to sink, it made things a lot more difficult on our recovery.”

Those were the words of Greg Powell of the U.S. Environmental Protection Agency during his presentation on March 10th at the National Academy of Sciences conference on the Effects of Diluted Bitumen on the Environment. Powell was one of the people involved in the response and clean up of the Kalamazoo River tar sands dilbit spill in 2010 where an Enbridge pipeline cracked and spilled approximately one million gallons of diluted bitumen into the Kalamazoo River in Michigan.

Enbridge Gets Another Federal Tar Sands Crude Pipeline Permit As Senate Debates Keystone XL

On January 16, the U.S. Army Corps of Engineers gave Enbridge a controversial Nationwide Permit 12 green-light for its proposed Line 78 pipeline, set to bring heavy tar sands diluted bitumen (“dilbit”) from Pontiac, Illinois to its Griffith, Indiana holding terminal.

The permit for the pipeline with the capacity to carry 800,000 barrels-per-day of tar sands dilbit came ten days after the introduction of S.1 — the Keystone XL Pipeline Act — currently up for debate on the U.S. Senate floor, which calls for the permitting of the northern leg of TransCanada's Keystone XL

Enbridge Line 78 Army Corps of Engineers Permit

Griffith is located just south of Whiting, Indiana, home of a massive refinery owned by BP. In November 2013, BP opened its Whiting Modernization Project, which retooled to refine up to 85-percent of its capacity as heavy dilbit from the tar sands, up from its initial 20-percent capacity.

Obama Signals Keystone XL "No" on Colbert Report As Enbridge "KXL Clone" He Permitted Opens

In his December 8 “Colbert Report” appearance, President Barack Obama gave his strongest signal yet that he may reject a presidential permit authorizing the Alberta to Cushing, Oklahoma northern leg of TransCanada's Keystone XL tar sands pipeline. 

Yet just a week earlier, and little noticed by comparison, the pipeline giant Enbridge made an announcement that could take the sails out of some of the excitement displayed by Obama's “Colbert Report” remarks on Keystone XL North. That is, Enbridge's “Keystone XL Clone” is now officially open for business

“Keystone XL Clone,” as first coined here on DeSmogBlog, consists of three parts: the U.S.-Canada border-crossing Alberta Clipper pipeline; the Flanagan, Illinois to Cushing Flanagan South pipeline; and the Cushing to Freeport, Texas Seaway Twin pipeline.

Enbridge announced that Flanagan South and its Seaway Twin connection are now pumping tar sands crude through to the Gulf of Mexico, meaning game on for tar sands to flow from Alberta to the Gulf through Enbridge's pipeline system.

Alberta Clipper, now rebranded Line 67, was authorized by Hillary Clinton on behalf of the Obama State Department in August 2009 and got a quasi-official permit to expand its capacity by the State Department over the summer. That permit is now being contested in federal court by environmental groups.

Flanagan South, meanwhile, exists due to a legally contentious array of close to 2,000 Nationwide Permit 12 permits handed out by the U.S. Army Corps of Engineers, which — as with Alberta Clipper expansion — has helped Enbridge usurp the more democratic and transparent National Environmental Policy Act (NEPA) review process

State Department Keystone XL Contractor ERM Bribed Chinese Agency to Permit Project

Environmental Resources Management (ERM Group), the consultancy selected by TransCanada to conduct the environmental review for Keystone XL's northern leg on behalf of the U.S. State Department, is no stranger to scandal.

Exhibit A: ERM once bribed a Chinese official to ram through major pieces of an industrial development projectERM was tasked to push through the project in Hangzhou Bay, located near Shanghai.

Accepting the bribe landed Yan Shunjun, former deputy head of the Shanghai Municipal Environmental Protection Bureau, an
11-year prison sentence.

Yan “allegedly took bribes of 864,000 yuan (126,501 U.S. dollars), 20,000 U.S. dollars and 4,000 euros from seven contractors,” explained Xiuhuanet. “Yan was also accused of illegally setting up a channel to speed up environmental impact assessment processes, which are essential for companies wanting to build factories.”

BP, one of the companies standing to gain if Keystone XL North receives a presidential permit from the Obama administration as a major Alberta tar sands producer, was also mired in the Chinese ERM Group scandal. 

“Two firms on ERM's bluechip client list, BP and Sinopec, are big investors in a petrochemical complex on the site, but the Chinese authorities apparently saw no conflict of interest in awarding the environmental evaluation to ERM,” explained London's Sunday Times.

In a sense, history has repeated itself.

Gulf-Bound Tar Sands for Export? Follow the Oiltanking Trail

The U.S. Senate failed to get the necessary 60 votes to approve the northern leg of TransCanada's Keystone XL pipeline, but incoming Senate Majority Leader Mitch McConnell (R-Ky.) already promised it will get another vote when the GOP-dominated Senate begins its new session in 2015.

Though the bill failed, one of the key narratives that arose during the congressional debate was the topic of whether or not the tar sands product that may flow through it will ultimately be exported to the global market. President Barack Obama, when queried by the press about the latest Keystone congressional action, suggested tar sands exports are the KXL line's raison d'etre.

Obama's comments struck a nerve. Bill sponsor U.S. Sen. Mary Landrieu (D-La.) and supporter U.S. Sen. John Hoeven (R-ND) both stood on the Senate floor and said Keystone XL is not an export pipeline in the minutes leading up to the bill's failure.

“Contrary to the ranting of some people that this is for export…Keystone is not for export,” said Landrieu, with Hoeven making similar remarks.

But a DeSmog probe into a recent merger of two major oil and gas industry logistics and marketing companies, Oiltanking Partners and Enterprise Products Partners, has demonstrated key pieces of the puzzle are already being put together by Big Oil to make tar sands exports a reality. 

And both Keystone XL and Enbridge's “Keystone XL Clone” serve as key thoroughfares for making it happen.


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