Bakken oil

Iowa Republican Lawmaker: Rick Perry’s Involvement With Bakken Oil Pipeline “A Bad Idea”

Read time: 3 mins

By David Goodner and Steve Horn 

Everyday Iowa voters are less likely to caucus for former Texas governor and potential presidential candidate Rick Perry “because of his involvement” with a controversial oil pipeline proposal, according to an influential state lawmaker who has made eminent domain one of his signature issues in the Iowa House of Representatives.

Politically speaking, I am not sure there is as much upside for him to be involved as there is downside,” Iowa state representative Bobby Kaufmann (R-Wilton) told DeSmogBlog. “People would likely not vote for him for being involved with the pipeline.” 

Last month, DeSmogBlog broke news that Perry’s appointment to the Board of Directors of Energy Transfer Partners (ETP) could cost him support in the Iowa Caucuses. Energy Transfer Partners is a Texas-based company whose subsidiary, Dakota Access, LLC, has petitioned the state of Iowa to build a pipeline to transport up to 575,000 barrels per day of oil obtained from North Dakota's Bakken Shale via hydraulic fracturing (“fracking”)

Kaufmann’s statement to DeSmogBlog marks the first public criticism of Perry on this issue by a sitting Republican lawmaker. It also comes on the heels of Perry’s scheduled March 7 return to Iowa to speak at the Iowa Ag Summit alongside other likely Republican presidential candidates.

Kaufmann’s remarks to DeSmogBlog also come in the aftermath of Iowa’s paper of record, The Des Moines Register, releasing a poll finding that 74 percent of Iowans are opposed to the use of eminent domain to build the pipeline.

I think any presidential candidate’s association with eminent domain could be unhelpful” to them in the Iowa Caucuses, Kaufmann said. 

Fact Check: Rick Perry Already Advocated Publicly for Bakken Oil Pipeline In Iowa

Read time: 5 mins
Rick Perry Bakken Pipeline

By David Goodner 

Rick Perry's Iowa spokesman says the potential presidential candidate won't publicly advocate for the controversial Bakken oil pipeline project he has a personal stake in as newly appointed board member of Energy Transfer Partners. But Perry was on TV news telling Iowans they “should support efforts to build the Bakken Pipeline” three days before his appointment to the board of the Fortune 500 oil company was made public.

Rekha Basu's excellent story Feb 11 for the Des Moines Register, “PAC money distorts politics, caucuses” sums up exactly why former Texas Governor Rick Perry's entanglement in a controversial, hot-potato Bakken oil pipeline fight in Iowa is such a big deal. Basu writes:

Prospective presidential candidate Perry gets a direct financial stake in a controversial oil-pipeline proposal. The Bakken pipeline, which would stretch through Iowa on its way from North Dakota to Illinois, is widely opposed by environmental and other groups. But by investing in Perry and his campaign, the company can bank on a friend in the White House to create a climate favorable for such projects. In 2012, the head of Energy Transfer Partners gave a quarter million dollars to a Super PAC for Perry. And now Perry has a seat on its board. A Perry spokesman says Perry won't be publicly promoting the pipeline, but he doesn't have to. His board presence is endorsement enough.

I hope most Americans also understand the absurdity of politicians using their office to return a debt to the deep pockets that helped get them elected.

But Basu's op-ed is also the third mainstream media story in as many days to uncritically repeat a questionable claim that Perry's Iowa spokesman Robert Haus made saying that the Texas politician will not publicly promote the Bakken pipeline in Iowa.

GOP Activists: Rick Perry's Bakken Oil Pipeline Ties Could Cost Him Iowa Caucus Support

Read time: 6 mins

By David Goodner

Former Texas governor Rick Perry's recent appointment to the board of Energy Transfer Partners, a company attempting to build a Bakken oil pipeline through Iowa, could hurt him in the first-in-the-nation Republican Party caucus if he decides to run for president, according to a conservative Iowa Republican activist and a DeSmog analysis of the political landscape.

Energy Transfer Partners (ETP) appointed Perry to its Board of Directors on February 3. ETP is a Texas-based company whose subsidiary corporation, Dakota Access, LLC, has petitioned the state of Iowa to build a pipeline carrying up to 575,000 barrels per day of oil obtained via North Dakota's Bakken Shale basin hydraulic fracturing (“fracking”) fields.  

The news about Perry's board appointment and its tie-in to the Iowa Caucus highlights the complicated terrain the issue will create for some Republicans in Iowa. It is a “political hot potato,” as DeSmog's Steve Horn wrote, and it is possible questions about the pipeline will arise in caucus politics leading up to 2016.  

Permitting plans in Iowa by Energy Transfer Partners and Dakota Access, LLC have sparked resistance from environmental activists and family farmers, the latter of whom often vote Republican, as well as from the libertarian wing of the GOP. Libertarian Republicans are often concerned about property rights and the potential abuse by government of eminent domain laws to confiscate private land for corporate profit.

“If Rick Perry is going to compete in Iowa this year, this could definitely be a big factor that could hurt him,” Jeff Shipley, a young Republican from Fairfield, Iowa, told DeSmogBlog. Shipley is a Republican activist, organizer, and former statehouse candidate for the Iowa GOP who has worked on presidential campaigns and with county and state party leaders for years. His home in Fairfield is located in Jefferson County, one of 18 Iowa counties sitting along the proposed pipeline route.

Jeff Shipley Iowa
Photo Credit: Shipley for Iowa

“This is a for-profit corporation that is going to try and use the force of government to steal farmers property,” Shipley told DeSmogBlog. “That runs contrary to typical conservative values.”

Federal Court Order: Explosive DOT-111 "Bomb Train" Oil Tank Cars Can Continue to Roll

Read time: 3 mins

A U.S. federal court has ordered a halt in proceedings until May in a case centering around oil-by-rail tankers pitting the Sierra Club and ForestEthics against the U.S. Department of Transportation (DOT). As a result, potentially explosive DOT-111 oil tank cars, dubbed “bomb trains” by activists, can continue to roll through towns and cities across the U.S. indefinitely.  

“The briefing schedule previously established by the court is vacated,” wrote Chris Goelz, a mediator for the U.S. Court of Appeals for the Ninth Circuit. “This appeal is stayed until May 12, 2015, or pending publication in the Federal Register of the final tank car standards and phase out of DOT-111 tank cars, whichever occurs first.”

Order to Delay DOT-111 Bomb Trains Case
Image Credit: U.S. Court of Appeals for the Ninth Circuit

Filing its initial petition for review on December 2, the Sierra Club/ForestEthics lawsuit had barely gotten off the ground before being delayed.

Heather Zichal, Former Obama Energy Aide, Named to Board of Fracked Gas Exports Giant Cheniere

Read time: 6 mins

Heather Zichal, former Obama White House Deputy Assistant to the President for Energy and Climate Change, may soon walk out of the government-industry revolving door to become a member of the board of directors for fracked gas exports giant Cheniere, who nominated her to serve on the board. 

The announcement, made through Cheniere's U.S. Securities and Exchange Commission Form 8-K and its Schedule 14A, comes just as a major class-action lawsuit was filed against the board of the company by stockholders.

In reaction to the lawsuit, Cheniere has delayed its annual meeting. At that meeting, the company's stockholders will vote on the Zichal nomination.

The class-action lawsuit was filed by plaintiff and stockholder James B. Jones, who alleges the board gave stock awards to CEO Charif Souki in defiance of both a stockholders' vote and the company's by-laws. 

Souki — a central character in Gregory Zuckerman's book “The Frackers“ — became the highest paid CEO in the U.S. as a result of the maneuver, raking in $142 million in 2013, $133 million of which came from stock awards.

Cheniere CEO Charif Souki; Photo Credit: Getty Images

Zichal was nominated to join Cheniere's audit committee of the board, and will be paid $180,000 per year for the gig if elected.

Among the audit committee duties: “Prepare and review the audit committee report for inclusion in the proxy statement for the company's annual meeting of stockholders,” which is now set for September 11 after the push-back following the filing of the stockholder class-action lawsuit.

“The audit committee’s responsibility is oversight, and it recognizes that the company’s management is responsible for preparing the company’s financial statements and complying with applicable laws and regulations,” Cheniere's audit committee charter further explains.

Oil-By-Rail Scrutiny Ratchets Up Across United States

Read time: 4 mins

Two years ago, trains snaked through American towns and cities day and night often without residents, or even city officials, knowing they were carrying explosive crude oil from the Bakken shale fields in North Dakota.

But now — after four serious oil train explosions in the US and Canada — the issue has exploded into public consciousness, with citizens and governments across the country raising questions about whether it’s safe to transport the flammable or explosive petroleum products through residential neighborhoods. 

Recently we have seen some major developments in the national discussion about moving oil by rail in the United States.

Yesterday, U.S. Transportation Secretary Anthony Foxx told Congress that his agency is committed to pressing the oil-by-rail industry to come up with a safer tank car design for unconventional oil. “My target date is as soon as possible,” Foxx said, although he would not commit to a hard deadline for stricter standards when pressed by the Senate Appropriations committee.

A Record Year of Oil Train Accidents Leaves Insurers Wary

Read time: 7 mins

Spurred by the shale drilling rush that has progressed at breakneck speed, the railroad industry has moved fast to help drillers transport petroleum and its byproducts to consumers. Last year, trains hauled over 400,000 carloads of crude oil, up from just 9,500 carloads in 2008, according to railroad industry estimates.  Each carload represents roughly 30,000 gallons of flammable liquids, and some trains haul over 100 oil cars at a time.

But with this fast expansion has come some astounding risks — risks that have insurance companies and underwriters increasingly concerned.

A string of oil train explosions have highlighted the potential for harm. A train hauling 2.9 million gallons of Bakken oil derailed and exploded on November 8 in Aliceville, Alabama, and the oil that leaked but did not burn continues to foul the wetlands in the area.

On December 30th, a train collision in Casselton, North Dakota 20 miles outside of Fargo, prompted a mass evacuation of over half the town’s residents after 18 cars exploded into fireballs visible for miles. 400,000 gallons of oil spilled after that accident, which involved two trains traveling well below local speed limits.

Those crashes are all on the radar of the insurance industry,” attorney Dean Hansell recently told Law360.

All told, railcar accidents spilled more than 1.15 million gallons of crude oil in 2013, federal data shows, compared with an average of just 22,000 gallons a year from 1975 through 2012 — a fifty-fold spike.

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