TransCanada

Montana Eased Regulations for Keystone XL After Lobbying by TransCanada

TransCanada oil pipelines visible above ground with a sign

As President Trump's State Department took steps to approve the Keystone XL pipeline, the project's owner, TransCanada, lobbied on two bills in Montana which will ease the company's regulatory burden in the state. 

Those bills, HB 365 and SB 109, moved along in the state's legislature with no media coverage despite the state being the first crossed in the pipeline's proposed journey from Alberta, Canada to Steele City, Nebraska. HB 365, which passed in May, will allow TransCanada to escape civil liability for any potential damages suffered by its contracted land surveyors. Meanwhile, SB 109 would have required environmental reviews for infrastructure projects in Montana to consider impacts beyond state lines, but failed to pass.

Keystone XL Pipeline Gets New Push From Revolving Door Team of Lobbyists

Keystone XL pipeline under construction

A changing of the guard in the White House, with President Donald Trump taking the helm, has spawned a hiring spree of new lobbyists to advocate for TransCanada's long-contested Keystone XL pipeline.

In the forefront, TransCanada has hired the firm CGCN Group — former employer of Trump's top White House energy adviser, Mike Catanzaro — to lobby for Keystone with a two-person team. TransCanada has also hired a duo of in-house lobbyists, one who worked as a Democratic congressional staffer and another who worked for a Republican, to make the case for the pipeline.

TransCanada's new team of lobbyists serves as a departure from recent years, in which teams of lobbyists and public relations professionals tied to the Democratic Party and President Barack Obama went to bat for Keystone. Keystone XL landed its long-desired presidential permit from President Trump in January, but now faces the specter of a lack of sufficient market demand for oil from the Alberta tar sands.

Weeks Before Becoming Trump Top Energy Adviser, Mike Catanzaro Lobbied for Keystone XL

Pipeline sections for Keystone XL pipeline in 2009

Just weeks before being hired as President Donald Trump's top White House energy adviser, Mike Catanzaro was paid by TransCanada to advocate for the Keystone XL pipeline.

Lobbying for his old employer, CGCN Group, disclosure forms reviewed by DeSmog reveal that a team of lobbyists including Catanzaro advocated for “Policy issues and executive branch approval of the Keystone pipeline.” TransCanada paid Catanzaro and the CGCN team $90,000 for their work during the first quarter of 2017. The Trump administration recently gave the Canadian energy company the green light to build the long-contested cross-border pipeline, which will carry tar sands from Alberta, Canada, to Cushing, Oklahoma.

These Industry Titans Oppose Trump's Order to Build Pipelines with U.S. Steel

sections of steel pipe for a gas pipeline

The April 7 deadline has come and gone for public comments on President Donald Trump's executive order calling for U.S. pipelines to be made with U.S.-produced steel, and some of the most influential titans of industry have come out against it.

The list of heavy-hitters who have voiced their discontent includes the likes of Dakota Access pipeline-owner Energy Transfer Partners, Russian-owned pipe producers Evraz North America and TMK IPSCO, and pipeline giants Williams Companies and EQT Midstream. It also includes the oil and gas industry at-large through its trade association and lobbying groups, such as the American Petroleum Institute (API), Independent Petroleum Association of America (IPAA), Association of Oil Pipelines, American Fuel & Petrochemical Manufacturers (AFPM), and others such as Magnolia LNG

Noticeably absent from the list is TransCanada, owner of the recently approved Keystone XL pipeline, which the Trump administration has said is exempt from the order. Both Keystone XL and Dakota Access will use steel made by Evraz North America, whose parent company is owned by a close political ally of Russian President Vladimir Putin, as previously reported by DeSmog.

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.

Like Keystone XL, Much of Dakota Access Pipeline Steel Made by Russian Company Tied to Putin

Pipes stamped with 'Made in Canada'

At his February 16 press conference, President Donald Trump discussed his executive orders calling for U.S. federal agencies to grant TransCanada and Energy Transfer Partners the permits needed to build the Keystone XL and Dakota Access pipeline projects.

Trump also cited a different executive order signed that same day, highlighting the “Buy American measures” which he said were “in place to require American steel for American pipelines.” But like Keystone XL, as DeSmog previously reported, much of the steel for the Dakota Access project appears to have been manufactured in Canada by Evraz North America, a subsidiary of the Russian steel giant Evraz.

Evraz is owned in part by Roman Abramovich, a Russian multi-billionaire credited for bringing Russian President Vladimir Putin into office in the late 1990s. DeSmog's finding comes on the heels of Trump's former National Security Adviser Michael Flynn resigning for potentially having discussed U.S. sanctions against Russia with Russian diplomats before Trump took office, apparently without the knowledge of Trump or now-Vice President Mike Pence.

How a Russian Steel Oligarch and Putin Ally Is Profiting from the Keystone XL Pipeline

Pipes for the Keystone XL pipeline sit in piles

Believe it or not, there's a key connection to Russia and its president, Vladimir Putin, in the fight over North America's controversial Keystone XL pipeline.

One of President Donald Trump’s first actions in office was to sign an executive order on January 24 expediting the approval of the Keystone XL. Owned by TransCanada, this tar sands oil pipeline was halted by former President Barack Obama in November 2015. Trump signed another order on January 24, calling for steel for U.S. pipelines to be made in the U.S. to the “maximum extent possible,” and two days later TransCanada filed a new presidential permit application for Keystone XL with the U.S. Department of State.

Critics, such as John Kemp of Reuters, pounced on the caveat language in Trump’s steel order and noted that it appears “designed to preserve lots of wiggle-room.” In fact, a DeSmog investigation reveals that much of the steel for Keystone XL has already been manufactured and is sitting in a field in rural North Dakota.

DeSmog has uncovered that 40 percent of the steel created so far was manufactured in Canada by a subsidiary of Evraz, a company 31-percent owned by Russian oligarch Roman Abramovich, who is a close ally of Putin and a Trump family friend. Evraz has also actively lobbied against provisions which would mandate that Keystone XL's steel be made in the U.S.

Dakota Access Pipeline Approved a Week After Co-Owner's Pipeline Spilled 600,000 Gallons of Oil in Texas

Oil spill in Blue Ridge, Texas

On January 30, 600,000 gallons (14,285 barrels) of oil spewed out of Enbridge's Seaway Pipeline in Blue Ridge, Texas, the second spill since the pipeline opened for business in mid-2016.

Seaway is half owned by Enbridge and serves as the final leg of a pipeline system DeSmog has called the “Keystone XL Clone,” which carries mostly tar sands extracted from Alberta, Canada, across the U.S. at a rate of 400,000 barrels per day down to the Gulf of Mexico. Enbridge is an equity co-owner of the Dakota Access pipeline, which received its final permit needed from the U.S. Army Corps of Engineers on February 7 to construct the pipeline across the Missouri River and construction has resumed.

The alignment of Native American tribes, environmentalists, and others involved in the fight against Dakota Access have called themselves “water protectors,” rather than “activists,” out of concern that a pipeline spill could contaminate their drinking water source, the Missouri River. 

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.

The Keystone Pipeline Network Could Soon Be Completed Under Trump, But Will It Be Safe?

Keystone pipeline in Texas

In the coming months, TransCanada will likely receive a green light to build the final leg of its Keystone pipeline network, which would carry Canadian tar sands to Gulf of Mexico refineries. President-elect Trump has said that, during his first 100 days in office, he will reverse President Obama’s decision to block the Keystone XL Pipeline.

If built, TransCanada maintains that the Keystone pipeline will be the safest pipeline ever built. But an ongoing DeSmog investigation into the Keystone network’s safety record continues to raise questions about the veracity of TransCanada’s claim.

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