Gulf Coast Pipeline

Goldman Sachs-backed Firm Invests Big in Shipping Tar Sands by Train Along Keystone XL Route

Oil train tank cars

USD Partners, a rail terminal operator owned in part by Wall Street giant Goldman Sachs, has signed a nearly three year deal to facilitate moving tar sands by train from where it is extracted in Alberta, Canada, to an offloading terminal in Stoud, Oklahoma, in a route mirroring that of the Keystone XL pipeline.

From Stroud, the heavy oil can be sent via pipeline to the nearby oil storage hub in Cushing, Oklahoma. USD's announcement, which said the company could transport up to 70,000 barrels per day of tar sands in rail cars, came in a June 2 filing with the Securities and Exchange Commission (SEC).

The deal, centering around the purchase of the Stroud terminal, also included the acquisition of 300,000 barrels of storage space in Cushing, a town known by oil and gas industry observers as the “pipeline crossroads of the world.” 

Former GOP Congressional Staffer Follows Revolving Door, Now Latest Keystone XL Lobbyist

Construction of Keystone XL pipeline

TransCanada has wasted no time since President Donald Trump signed a January 24 executive order calling for U.S. federal agencies to permit construction of the Keystone XL pipeline. 

The Calgary-based company has already re-applied for a presidential permit through the U.S. Department of State to cross the U.S.-Canada border with the pipeline and has also applied in Nebraska to build the line across that state. It also has registered to lobby the federal government, deploying lobbyist and former GOP Congressional staffer Jay Cranford of the CGCN Group, for the job.

As DeSmog has previously reported, fellow CGCN Group lobbyist Mike Catanzaro is the presumed choice for top energy adviser to President Trump. Catanzaro has a track record as a climate change denier and has lobbied for companies such as Devon Energy, America's Natural Gas Alliance (ANGA), and others.

Key Trump Donor Stands to Profit from Order to Approve Keystone XL, Dakota Access Pipelines

On January 24, President Donald Trump signed two executive orders calling for the approval of the Dakota Access and Keystone XL pipelines, owned by Energy Transfer Partners and TransCanada, respectively. He also signed an order calling for expedited environmental reviews of domestic infrastructure projects, such as pipelines.

Fights against both pipelines have ignited nationwide grassroots movements for over the past five years and will almost assuredly sit at the epicenter of similar backlash moving forward. As DeSmog has reported, Donald Trump's top presidential campaign energy aide Harold Hamm stands to profit if both pipelines go through. 

Hamm, the founder and CEO of Continental Resources who sat in the VIP box at Trump's inauguration and was a major Trump campaign donor, would see his company's oil obtained from hydraulic fracturing (“fracking”) in the Bakken Shale flow through both lines. Kelcy Warren, CEO of Energy Transfer Partners, was also a major Trump donor.

Weeks Before Dakota Access Pipeline Protests Intensified, Big Oil Pushed for Expedited Permitting

Dakota Access oil pipeline installation between farms, as seen from 50th Avenue in New Salem, North Dakota.

In the two months leading up to the U.S. Army Corps of Engineers' decision to issue to the Dakota Access pipeline project an allotment of Nationwide 12 permits (NWP) — a de facto fast-track federal authorization of the project — an army of oil industry players submitted comments to the Corps to ensure that fast-track authority remains in place going forward.

This fast-track permitting process is used to bypass more rigorous environmental and public review for major pipeline infrastructure projects by treating them as smaller projects.

Texas Ranch Owner Battles TransCanada to Restore Her Pipeline-Scarred Land

Eleanor Fairchild, an 82-year-old grandmother who owns a 425-acre ranch outside of Winnsboro, Texas, has advice for anyone who is asked to sign a contract by a company that wants to build a pipeline to transport tar sands oil on their land: “Don’t sign it.”

During a recent visit to her ranch, I saw the damage to her land caused by the installation of TransCanada’s Gulf Coast Pipeline, which is the original southern route of the Keystone XL pipeline before the project was broken into segments. 

I first met Fairchild in October 2012, a few days after she was arrested, along with environmentalist actress Daryl Hannah. The two had stood in the way of land-moving vehicles on Fairchild’s land where TransCanada had started clearing trees and readying a right-of-way to install its pipeline. At that time, Fairchild was refusing to make a deal with TransCanada, but the company moved forward with clearing her land anyway. 

Donald Trump's Top Energy Aide Could Profit From GOP-Promised Keystone XL Permit

Harold Hamm — founder and CEO of Continental Resources, top energy aide for Republican Party presidential nominee Donald Trump and Trump's possible choice for energy secretary — may stand to gain from a cross-border permit of TransCananda's Keystone XL pipeline. 

Continental Resources has been dubbed the “King of the Bakken” because of the vast amount of acreage the company owns in North Dakota's Bakken Shale basin, while Hamm also served as energy adviser in 2012 for Republican Party presidential nominee Mitt Romney. Handing TransCanada a permit for Keystone XL receives an explicit mention in the Republican Party platform.

Exclusive: Newly Released Inspection Reports on Keystone XL’s Southern Route Fuel Doubt Over ‘Safest Pipeline Ever Built' Claims

TransCanada’s claim that the southern route of the Keystone XL Pipeline is the safest pipeline ever built in the United States is challenged by the release of new documentation confirming multiple code violations.
 
Daily inspection reports on the construction of the pipeline obtained by the Tar Sands Blockade, an activist group, renew questions about the pipeline’s integrity.

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.

Exclusive: TransCanada Keystone 1 Pipeline Suffered Major Corrosion Only Two Years In Operation, 95% Worn In One Spot

Julie Dermansky

Documents obtained by DeSmogBlog reveal an alarming rate of corrosion to parts of TransCanada's Keystone 1 pipeline. A mandatory inspection test revealed a section of the pipeline's wall had corroded 95%, leaving it paper-thin in one area (one-third the thickness of a dime) and dangerously thin in three other places, leading TransCanada to immediately shut it down. The cause of the corrosion is being kept from the public by federal regulators and TransCanada.

Breaking: TransCanada Shuts Down Southern Leg of Keystone XL Pipeline, Raising “Suspicions”

KXL install in TX copyright Julie Dermansky

TransCanada shut down the southern leg of the Keystone XL (now called the Gulf Coast Pipeline Project) on June 2 for “routine work,” according to Reuters.  

“Pipelines aren't normally shut down for maintenance shortly after being started up. They may have planned it but something is wrong,” an industry insider told DeSmogBlog. “A two day shutdown on a new line raises suspicions.”

The Pipeline and Hazardous Material Safety Administration was unable to provide an answer to DeSmogBlog when asked to confirm if the shutdown was due to routine work today.

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