Hillary Clinton's Keystone XL Crony Lobbyists Problem

Wed, 2011-10-05 21:01Brendan DeMelle
Brendan DeMelle's picture

Hillary Clinton's Keystone XL Crony Lobbyists Problem

Hillary Clinton and the State Department have the final word on whether to approve the Keystone XL tar sands pipeline, unless President Obama intervenes. The influence of tar sands industry lobbyists connected to Hillary Clinton is finally getting some media attention, but there is still more to this story.

Clinton's State Department is finally complying with a FOIA request for documents, after a lawsuit filed in May by three watchdog groups over an alleged lack of transparency regarding contacts with TransCanada lobbyist Paul Elliott, a former staffer on Hillary Clinton's presidential run. Elliott has earned at least $310,000 as TransCanada Pipelines’ in-house lobbyist to influence Congress and several federal agencies, including the State Department, on the Keystone XL pipeline.

However, the tar sands industry’s use of former Clinton associates to lobby on the controversial project extends beyond Mr. Elliott. DeSmogBlog has uncovered seven other influencers or lobbyists with ties to Clinton and Obama who have lobbied on behalf of tar sands interests for approval of the Keystone XL pipeline.  

These lobbyists are spread out over three firms, including one that was the largest single source of funds of any corporate entity to Clinton’s 2008 presidential run. Included in their midst is a lobbyist with close ties to top Obama adviser David Plouffe, and a former Koch Industries operative now lobbying for the Koch-friendly Keystone XL project.


The extent of the contacts between these lobbyists and Secretary Clinton, or her political appointee-led staff, remains to be determined. Today, **Earthjustice, representing** Friends of the Earth, Corporate Ethics International and the Center for International Environmental Law, filed an amended FOIA request asking the State Department to release all contacts between this web of lobbying firms and her department. The groups credited DeSmogBlog's research as the impetus for the revised FOIA request. 


The presence of so many former Clinton associates on the lobbying roster for polluter clients on a high-profile controversy suggests a clash with the repeated campaign pledges of greater transparency and tougher dealings with lobbyists by Secretary Clinton’s boss, President Obama. 

On the campaign trail, Obama contrasted his view of lobbyists with the view of his opponent, Senator John McCain
“This is somebody who’s been in Congress for twenty-six years, who put seven of the most powerful Washington lobbyists in charge of his campaign, and now he tells us that he’s the one who will take on the ol' boy network,”Obama said before a crowd in Elko, Nev. “The ol’ boy network? In the McCain campaign, that’s called a staff meeting,” Obama said. 
TransCanada Corp's permit request for the Keystone XL network of long-distance pipes represents a clear test of those pledges of transparency and a less cozy relationship with corporate lobbyists. The proposed pipeline would shuttle what is described as the dirtiest oil on the planet – Canada’s tar sands crude – to petroleum refineries on the Gulf Coast. Ultimately, much of the oil will be shipped overseas to foreign markets, undermining claims that this project would boost U.S. energy security.

The lack of disclosure about contacts with lobbyists regarding the Keystone XL builds upon growing questions about the Obama Administration’s commitment to open government, particularly on environmental issues. DeSmogBlog has cataloged the Obama Administration’s failure to report contacts with lobbyists on several key climate and energy matters, including coal ash regulations and the BP disaster. Now let's take a closer look at tar sands lobbyists.
 

WEB OF TAR SANDS LOBBYISTS TIED TO CLINTON/OBAMA

Below is a description of the influence peddling firms and lobbyists that DeSmogBlog has identified as having close connections to Hillary Clinton and President Obama that are working to convince the State Department to approve Keystone XL.

McKenna Long & Aldridge is one of the key outside firms registered to lobby for TransCanada Pipelines, which paid the McKenna firm at least $190,000 over the last 5 years to lobby on their pipeline issues, including $40,000 in the first half of 2011. McKenna employees donated $41,650 in campaign contributions to Hillary Clinton in 2008, according to the Center for Responsive Politics.

In addition, McKenna lobbies for the Canadian American Business Council, which has played a major public relations role on behalf of the Keystone XL project. McKenna lobbyist Maryscott “Scotty” Greenwood is Senior Advisor (and former Executive Director) at the CABC, which is now headed up by another McKenna associate. 
UPDATE Oct 6, noon EST: Guess who serves on the Board of Directors of the Canadian American Business Council? Paul Elliott. (Also, Susan Carter, the ExxonMobil executive on the recipient list of Scotty Greenwood's email referenced below. Small world.)

McKenna Long & Aldridge lobbies for Nexen Inc., a company with present growth strategies that include “oil sands, including our 65% operated interest in the Long Lake project.” Nexen has paid McKenna over $1.8 million since 2007 in lobbying fees. Talisman, another major energy company in Canada, has paid McKenna $90,000 over the last two years for lobbying. 

Frank McKenna, the first-named principle of McKenna Long & Aldridge, served as Canadian ambassador to the U.S. from 2005-6. [Correction: Frank McKenna has no affiliation with McKenna Long & Aldridge. I regret the error.]

Gordon Giffin, a partner at McKenna Long & Aldridge, served as U.S. Ambassador to Canada during the Clinton administration (1997 to 2001), and was a key fundraiser and donor to Hillary Clinton’s Senate and White House campaigns. Giffin was one of 22 “Bundlers for Hillary Clinton who have registered as Federal Lobbyists” cataloged by Public Citizen. He’s also been a donor to Bill Clinton’s campaigns and the William Jefferson Clinton Foundation.  Giffin sits on the boards of four Canadian companies, including Canadian Natural Resources Limited, a major tar sands player.

Maryscott “Scotty” Greenwood, another McKenna lobbyist, was appointed by President Bill Clinton to serve as Chief of Staff to Gordon Giffin when he was U.S. ambassador to Canada.  Considered by The Hill Times as one of the “Top 100 Most Influential People in Government and Politics in 2010,” Greenwood is valued by McKenna for her ability to reach Secretary Clinton on the phone, according to a biography on the firm's principal Frank McKenna: “Because of her up attitude and the jobs she has held, [Scotty Greenwood] can get through on the phone to virtually anyone of influence within the US Democratic ranks, including the likes of U.S. secretary of the state Hillary Clinton.”

Greenwood was a member of the important Credentials Committee at the 2008 Democratic Convention - the committee appointed by Chairman Howard Dean that was responsible for deciding how to handle Hillary Clinton's delegate challenges. She was also the Executive Director of the Georgia Democratic Party, where she met Giffin.

Giffin lobbied officially on TransCanada’s behalf until 2008 on “U.S. pipeline permit policy,” and
Greenwood lobbied officially for TransCanada from 2007 until as recently as Q1 2010 on the same issues. Since then, they seem to have handed the official lobbying reins to juniors and now serve as advisors. But their Clinton connections raise important questions about their possible influence over her decision regarding the Keystone XL pipeline. 

Indeed, one of the emails obtained by FOE et al in their FOIA request shows Scotty Greenwood emailing news that “Sen Lugar calls for approval of KXL” to Gordon Giffin, Paul Elliott, Marja Verloop and an ExxonMobil lobbyist. (See pg 137 of this PDF)


David Pollak joined McKenna as a “Senior Strategic Advisor” in August 2009. Pollack served as Co-Chairman of the New York State Democratic Party from 2006 – 2008, and was a Hillary Clinton Super-Delegate.

In May 2010, McKenna Long & Aldridge hired Alex McGee, who previously worked for Koch Industries as the Director of Federal Affairs for Koch Companies Public Sector (KCPS). Prior to that, he spent five years as the Department of Energy's (DOE) Principal Deputy Assistant
Secretary for Congressional and Intergovernmental Affairs. McGee’s bio claims he was “a strategic player in the passage of the Energy Policy Act of 2005.” McGee now lobbies on behalf of TransCanada.

Bryan Cave LLP reported earnings of $1.08 million between 2009-2011 lobbying on behalf of TransCanada, according to the Center for Responsive Politics. Bryan Cave staff reported lobbying the State Department directly about the Keystone XL Pipeline. 

Broderick Johnson, a former Bryan Cave LLP lobbyist registered on the Keystone XL account, reported lobbying President Obama’s legislative affairs staff in 2010, a post he’s familiar with, having served in the Clinton administration in the White House Office of Legislative Affairs from 1998-2000. He was named deputy assistant to the president and House liaison, acting as the Clinton administration’s primary advocate before the U.S. House of Representatives in 1999 and 2000. 

Jeff Berman is listed as another Bryan Cave lobbyist on the Keystone XL account who reports lobbying the State Department and the President’s office. Berman, a friend of David Plouffe, has been referred to as the “unsung hero” of Barack Obama’s 2008 primary victory over Hillary Clinton. According to TalkingPointsMemo coverage, “Berman’s in-depth understanding of every state and every congressional district drove the campaigning strategy that Plouffe laid out.”

DLA PIPER employees and PACs contributed $480,150 to Hillary Clinton’s 2008 run, making it the largest single source of funds for a corporate entity to Clinton

DLA PIPER partner James Blanchard, a former Governor of Michigan, served as Michigan Chairman of Bill Clinton’s 1992 campaign, and was rewarded by President Clinton with the post of U.S. ambassador to Canada (1993-96).  He also was a key fundraiser for Hillary Clinton’s 2008 presidential campaign. According to Public Citizen, Blanchard was one of 22 “Bundlers for Hillary Clinton who have registered as Federal Lobbyists.”

The government of Alberta retained Blanchard to lobby Washington last year. According to lobbying disclosure records reviewed by Climate Action Network Canada (p. 9), Blanchard and other DLA Piper lobbyists had more than 80 interactions with U.S. officials and politicians in the year beginning March 1, 2009, on behalf of the Government of Alberta. Blanchard alone billed over $300,000 in fees.

Blanchard sits on the board of major tar sands pipeline company Enbridge, which spilled roughly 20,000 barrels of oil into Michigan’s Kalamazoo River last year, and tried to hide the fact that the spill involved tar sands crude. Enbridge's pipelines move the lion's share of tar sands crude into the U.S.

Conclusion
The web of tar sands lobbyist cronies with ties to Hillary Clinton pressuring the State Department to approve Keystone XL shows that President Obama must take personal responsibility for the transparency and objectivity of this permit decision. It appears that Secretary Clinton is too compromised by this web of polluter influence peddlers from her past to say no to Keystone XL.

Saying no to this filthy tar sands pipeline is the only viable option for President Obama, who campaigned not only on a platform of strong climate action and ending our oil addiction, but also for transparency and minimizing the role of corporate lobbyists in policy decisions.  

Right now, the State Department’s capitulation to lobbyists – and secrecy about Secretary Clinton’s contacts with lobbyists  – stinks to high heaven, as the recently released emails demonstrate. Hopefully this amended FOIA request will compel the State Department to reveal all the facts about lobbyist influence over Hillary Clinton’s position on Keystone XL.

DeSmogBlog's Emma Pullman contributed research to this report.

** Clarification added to note that Earthjustice, which represents the environmental groups, filed the amended FOIA today on their behalf.

Previous Comments

That’s the system. You can’t be President without owing a lot of favors and you can’t turn your back on those to whom you owe those favors. Obama made his choice a long time ago.

Bunch of sell outs.

Great cartoon, and I look forward to more parodies like this during the construction of the green energy pipeline. The Keystone pipeline aka the key to energy independence and economic recovery for the USA.

[x]
Oil by rail

In 2009, Matt Taibbi wrote a piece in Rolling Stone in which he described the investment bank Goldman Sachs as “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.” 

Apparently tar sands oil smells like money. And thus the vampire squid has found another target. As Reuters reported on August 29:

... read more