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by danps

Eminent Domain and Corporate Need

3:57 am in Uncategorized by danps

Cross posted from Pruning Shears.

Thanks to rjs for the help in researching this post.

The Work Around: Build the pipeline ostensibly for oil but leave wiggle room to change that later.

Last week I linked to this article detailing how the relative lack of pipelines in Ohio is preventing fracking from taking off as the extraction industry would like. This means pipelines have moved front and center in some communities. Since the fastest way to assemble the land for one is to pressure citizens to sell under threat of seizure via eminent domain (ED), ED law is starting to get a much closer look.

The short version is that ED can be used for oil but not liquefied natural gas, meaning yes for traditional drilling but no for fracking. Companies have taken note of the distinction:

the eminent domain statute says only companies that ship ‘natural or artificial gas, petroleum, coal or its derivatives, water, or electricity’ through pipelines have a right force Ohioans to sell easements on their land. The eminent domain law doesn’t mention natural gas liquids.

To get around that, the company uses a different definition for the ATEX in court cases where it is citing eminent domain power, calling it a “petroleum product derived from natural gas extraction process.”

So here’s the conundrum for the fracking companies: they want to use the threat of ED to pressure homeowners into giving up their land, but they can’t invoke ED for the purpose the pipelines are being constructed for (until they can once again fix the law to their liking, that is).

The workaround appears to be this: Build the pipeline ostensibly for oil but leave wiggle room to change that later. Of course, an oil pipeline is troubling enough. Sunoco has demonstrated over and over and over again that its Ohio pipelines are leaky. Looking strictly at their track record around here, there is little reason for Portage County residents to feel confident in the soundness of this new pipeline.

As problematic as an oil-only pipeline would be (why here and now, incidentally? Have vast new petroleum reserves been discovered in eastern Ohio?), it appears Sunoco is at least leaving the door open for alternate uses:

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by danps

Statement to county commissioners at pipeline meeting

7:23 am in Uncategorized by danps

Cross posted from Pruning Shears.

The following statement was prepared for Thursday’s Portage County Commissioners pipeline meeting. I’ll have a write up of the meeting next week.

Pipelines leak. Last summer’s spill in Arkansas was so severe that houses had to be demolished because of it. Last September there was a six inch pipeline spill of almost a million gallons in North Dakota. These are just two of the most dramatic examples from the last year. A little over a year ago a report commissioned by the Pipeline and Hazardous Materials Safety Administration (PHMSA) documented hundreds of spills throughout the country.

Oil Pipeline

“It is up to us to think in advance what those hazards might be, and to insist that business as usual is not good enough.”

So the prudent question for any community faced with a new pipeline should not be, will it leak? But rather, what happens once it does leak? The industry’s monitoring schemes are often inadequate. As Reuters reported of the North Dakota spill: “A robot, known as a ‘smart pig,’ detected anomalies during what Tesoro called routine internal inspections of the pipeline September 10 and 11.” Yet no action was taken on that. All the high tech monitoring in the world is useless if the company does not dedicate the resources to act promptly when a red flag is raised.

The industry claims to be vigilant about watching for spills, but the PHMSA reported that for hazardous liquid pipelines “[a]n emergency responder or a member of the public was more likely to identify a release than air patrols, operator ground crew and contractors.” That was the case in North Dakota: It was discovered by a farmer, and not disclosed to the public for eleven days. Will Sunoco depend on the citizens of Portage County to be its eyes and ears as well? If not, then what do we have beyond its earnest assurances?

Transparency and disclosure are important concerns as well. In Arkansas, an oil company consultant was put in charge of a no fly zone over the site of the spill, giving the company the ability to prevent the public from understanding the scope of the disaster. Has Sunoco made any binding commitment to not choke off the flow of information if the oil starts flowing?

Finally, who will be in charge of remediation? As a citizen I would greatly prefer our local public first responders be given the proper training and equipment to do so. Having private, company-funded contractors in charge means trusting that the company adequately funds the operation.

Safety does not have a return on investment, though, and over time it will be tempting – maybe irresistibly so – to skimp on it. Moreover, what transparency will there be for this privatized force? Will its employees be silenced by gag orders and nondisclosure agreements? The normal means of democratic accountability that apply to public servants will not apply to them. Vital safety information could easily be withheld.

Large conglomerates are profit-seeking entities, and they pursue those profits amorally. If they can maximize profit by being good corporate citizens and working in good faith with a community, they will. If they can maximize profit by cutting corners and stonewalling when a PR nightmare erupts, they will. It is no comment on the integrity of their employees to say that these impersonal entities will, if the bottom line so dictates, needlessly visit great hazard on a community and leave that community to fend for itself if something goes wrong.

It is up to us to think in advance what those hazards might be, and to insist that business as usual is not good enough. Pipeline companies have proved to be extraordinarily poor neighbors of late, and we should require a much higher standard of conduct for one that wants to move into our neighborhood.
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