Heavy Oil

Federal Court Gives Blessing to Covertly Approved Enbridge Cross-Border Tar Sands Pipeline Expansion

Read time: 4 mins

A federal court has ruled that the Enbridge Alberta Clipper (Line 67) cross-border tar sands pipeline expansion project, permitted covertly and behind closed doors by the Obama Administration, got its greenlight in a legal manner. 

The ruling — made by Michael J. Davis, a President Bill Clinton-appointee — comes just over a year after several environmental groups brought a lawsuit against the U.S. Department of State for what they said was a violation of the National Environmental Policy Act (NEPA). NEPA calls for robust public hearings and public commenting periods for any major proposed energy infrastructure projects, referred to by some as the “Magna Carta of environmental law.”

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

Read time: 7 mins

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

Read time: 5 mins

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)

Emails: Enbridge Attorney, Lobbyist Wrote Provisions into Wisconsin Budget for "Keystone XL Clone" Pipeline Leg

Read time: 3 mins

Emails reveal that an attorney and lobbyist for Canadian pipeline company giant Enbridge helped draft the controversial provision placed into the 2015 Wisconsin Budget set to fast-track expansion of the company's Line 61 pipeline. 

The emails, published by the Wisconsin Legislative Reference Bureau and first covered by Wisconsin Public Radio, emerge just months after DeSmog revealed emails showing Enbridge's attorney for its border-crossing Alberta Clipper expansion project proposal, which connects to Line 61 in Superior, Wisconsin, doing much the same to curry favor with the U.S. Department of State to fast-track permitting for that project.  

Together, Alberta Clipper (also called Line 67) and Line 61 are two parts of the four that make up the broader “Keystone XL Clone” pipeline system. That system carries tar sands bitumen extracted in Alberta down to Gulf coast refineries and the global export market.

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

Read time: 4 mins

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

Read time: 4 mins

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.

Emails: How State Department Secretly Approved Expanding Piece of Enbridge's "Keystone XL Clone"

Read time: 6 mins
State Department Enbridge Emails

DeSmogBlog has obtained dozens of emails that lend an inside view of how the U.S. State Department secretly handed Enbridge a permit to expand the capacity of its U.S.-Canada border-crossing Alberta Clipper pipeline, which carries tar sands diluted bitumen (“dilbit”) from Alberta to midwest markets. 

The State Department submitted the emails into the record in the ongoing case filed against the Department by the Sierra Club and other environmental groups in the U.S. District Court for the District of Minnesota. Collectively, the emails show that upper-level State Department officials hastened the review process on behalf of Enbridge for its proposed Alberta Clipper expansion plan, now rebranded Line 67, and did not inform the public about it until it published its final approval decision in the Federal Register in August 2014.

According to a March 17, 2014 memo initially marked “confidential,” Enbridge's legal counsel at Steptoe & Johnson, David Coburn, began regular communications with the State Department on what the environmental groups have dubbed an “illegal scheme” beginning in at least January 2014. 

Enbridge State Department Emails
Image Credit: U.S. District Court for the District of Minnesota

Environmental groups have coined the approval process an “illegal scheme” because the State Department allowed Enbridge to usurp the conventional presidential permit process for cross-border pipelines, as well as the standard National Environmental Policy Act (NEPA) process, which allows for public comments and public hearings of the sort seen for TransCanada's Keystone XL pipeline.

Further, the scheme is a complex one involving Enbridge's choice to add pressure pump stations on both sides of the border to two pipelines, Enbridge Line 3 and Enbridge Line 67, to avoid fitting under the legal umbrella of a “cross-border” pipeline.

Hastening the approval process — and thus dodging both the conventional presidential permit and NEPA process — came up in a June 6, 2014 memo written by Coburn and his Steptoe co-counsel Josh Runyan. Enbridge's legal argument centered around ensuring profits for its customers “consistent with its obligations as a common carrier.”

State Department Enbridge Emails
Image Credit: U.S. District Court for the District of Minnesota

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

Read time: 4 mins

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

Read time: 4 mins

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

Read time: 4 mins

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.

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