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Frank Giustra, President Bill Clinton’s Close Colleague, Joins US Oil Sands Board

7:58 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

 

No Tar Sands banner

Industry and politics continue to support Tar Sands development.

Frank Giustra – key power broker and close colleague of former President Bill Clinton — has taken a seat on the Board of Directors of U.S. Oil Sands, an Alberta-based company aiming to develop tar sands deposits in Utah’s Uintah Basin.

U.S. Oil Sands — in naming several new members to its Board — also announced it has received $80 million in “strategic financing” from Blue Pacific Investments Group Ltd., Anchorage Capital Group, L.L.C. and Spitfire Ventures, LLC.

The funding will help get the ball rolling on “tar sands south,” a miniature but increasingly controversial version of its big brother to the north, the Alberta tar sands. Giustra will likely help in opening the right doors for tar sands industry interests in the United States.

Giusta is best known for his work in the worlds of uranium mining and minerals mining, though he has dabbled in the Alberta tar sands finance world once before,lending upwards of $20 million in capital to Excelsior Energy. He serves as CEO and President of Fiore Financial Corporation.

Founder and Director of the Radcliffe Foundation and Co-Director of the Clinton Giustra Enterprise Partnership (formerly known as the Clinton Giustra Sustainable Growth Initiative), Frank Giustra has maintained close ties with Bill Clinton since 2005.

The Clinton Giustra Sustainable Growth Initiative is an arm of the Bill, Hillary, and Chelsea Clinton Foundation (the Clinton Foundation). Giustra sits on the Clinton Foundation’s Board of Trustees.

Giustra also sits on the Board of Directors of Petromanas Energy Inc., an oil and gas company with assets including 1.1 million acres in Albania, 170,000 acres in France and 1.6 million acres in Australia.

Clinton and Giustra have been instrumental in forging a major oil deal in Colombia and a major nuclear uranium mining deal in Kazakhstan, among other things.

Opening Doors in Colombia

In a February 2008 article, ”Clinton Used Giustra’s Plane, Opened Doors for Deals,” Bloomberg mapped out the close relationship between Clinton and Giustra that began in 2005.

“Clinton was borrowing [Giustra's private jet] to begin a four-day speaking tour of Latin America that would pay him $800,000,” Bloomberg detailed. “Frank Giustra … was forming a friendship that would make him part of the former president’s inner circle and gain him introductions to presidents of Kazakhstan and Colombia.”

Clinton’s effort to connect Giustra to former Colombian President Alvaro Uribe was related to oil developments.

“Pacific Rubiales Energy Corp., spent more than $250 million to purchase control of a company that operated Colombian oil fields in conjunction with Ecopetrol S.A., the national oil company,” explained The Wall Street Journal. ”Pacific Rubiales has also signed a pipeline deal with Ecopetrol and been invited by the Colombian national petroleum agency to do further oil-development work in the country.”

Giustra’s Endeavor Financial Corporation provided the money for the Pacific Rubiales buyout, where he served as Chairman from 2001-2007. Giustra’s Fiore Financial Corporation maintains an “exclusive strategic alliance” with Endeavor Financial, which “provide[s] Endeavour with unique deal making and investment capabilities.”

Clinton Giustra Enterprise Partnership lists Pacific Rubiales, the Colombian government and Endeavor Mining (the mining wing of Endeavor Financial Corporation) among its current PartnersThe Wall Street Journal explained that Pacific Rubiales gave over $3 million to the Partnership, and Giustra put over $100 million of his own cash into the pot.

From Kazakhstani Uranium Shell Company to Clinton Foundation Trustee

Giustra’s self-serving philantrophy also took him and Clinton to Kazakhstan in September 2007, as documented in a January 2008 New York Times investigation.

Read the rest of this entry →

Second US Tar Sands Mine, Owned by Former ExxonMobil and Chevron Exec., Approved in Utah

8:37 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

MCW Enterprises Ltd., a Canada-based corporation, announced on Nov. 19 that it has received all necessary permits to streamline tar sands extraction at its Asphalt Ridge plant located in Vernal, Utah starting in December.

Protest Banner: All Markets Peak, All Pipelines Leak

Tar Sands protest in New Orleans

The announcement comes just weeks after U.S. Oil Sands Company received the first ever green light to extract tar sands south in the United States.

Recently changing its name from MCW Energy, MCW Enterprises Ltd. owns MCW Oil Sands Recovery LLC as a wholly owned subsidiary. The company’s CEO, R. Gerald Bailey – often also referred to as Raymond Bailey or Jerry Bailey - is the former President of Exxon Arabian Gulf and also served as an Executive for Texaco (since purchased by Chevron) for 15 years.

MCW’s website explains that its stake in the Asphalt Ridge is a “proven/probable resource of over 50+ million barrels of oil” and that it “is seeking other oil sands leases in Utah, which contains over 32 billion barrels of oil within 8 major deposits.”

Bailey told Flahrety Financial News that he sees this first project as a crucible, or testing grounds, with the potential for more extraction to come down the road.

“This is really going to be a technology play,” he stated. “I don’t plan to build another Exxon out there in the desert.”

The Frac Sand Connection

In June 2012, Temple Mountain Energy (TME) – also based in Vernal, UT – cut a five-year oil sands supply agreement deal with MCW.

“Under this five year Supply Agreement, Temple Mountain will supply MCW with 8,333 tons of oil sands material per month until the year 2016,” MCW’s website explains.

Once the bitumen is extracted, TME plans on selling the fine-grained sand under which it sits to unconventional oil and gas companies forhydraulic fracturing (“fracking”).

“The recent rapid expansion of shale gas and shale oil drilling…has greatly increased the need for fracking sand in this region,” TME wrote on it website. “Asphalt Ridge is well-positioned to serve this high-volume market—both in terms of geographic location and in terms of sand quality.”

To date, frac sand mining companies have targeted five states - WisconsinMinnesotaTexasArkansas, and Iowa - transforming tens of thousands of acres of land into “Sand Land.” Utah is soon to become number six.

Race for What’s Left: End of “Easy Oil,” Heavy Price to Pay

With domestic unconventional oil and gas wells under-producing, setting the stage for the shale gas bubble to burst, the push to extract tar sands in the United States is a depiction of the oil and gas industry’s reckless push to extract every last drop in a “race for what’s left.”

The age of “easy oil,” to borrow the term from scholar Michael Klare, is over. In a May 2012 interview with FutureMoneyTrends.com, Bailey acknowledged this as well, stating that the “cheap, easy oil is pretty much behind us.”

Bailey defines “cheap” here with regards to the price of extracting the “tough oil” from a production point-of-view.

But as the Alberta tar sands north of the border have shown, it’s the ecosystem and climate that really pays the heaviest price of all. Read the rest of this entry →

Tar Sands South: First US Tar Sands Mine Approved in Utah

9:46 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

We are more than oil protest sign

Photo: Claytonn Conn / Tarsandsaction / Flickr

The race is on for the up-and-coming U.S. tar sands industry. To date, the tar sands industry is most well-known for the havoc it continues to wreak in Alberta, Canada - but its neighbor and fellow petrostate to the south may soon join in on the fun.

On Oct. 24, the Utah Water Quality Board (UWQB) approved the first ever tar sands mine on U.S. soil, handing a permit to U.S. Oil Sands, a company whose headquarters are based in Alberta, despite it’s name.

In a 9-2 vote, the UWQB gave U.S. Oil Sands the green light to begin extracting bitumen from its PR Spring Oil Sands Project, located in the Uinta Basin in eastern Utah. The UWQB concluded that there’s no risk of groundwater pollution from tar sands extraction for the prospective mining project.

Members of the public were allowed to attend the hearing but “were not permitted to provide input,” according to The Salt Lake Tribune.

“The PR Spring project remains on track for commercial startup late in 2013, and the decision ultimately illustrates the merits that our responsible approach to oil sands development has for the environment and local communities,” Cameron Todd, CEO of U.S. Oil Sands stated in a press release in response to the decision.

Living Rivers, the Moab, Utah-based offshoot of Colorado Riverkeeper says it will likely appeal the decision to the state’s court system, ”arguing that tar sands mining will contaminate groundwater in a largely undeveloped area of Utah’s Book Cliffs region that drains into the Colorado River,” explained the Associated Press.

In an Oct. 9 interview on Democracy Now!, John Weisheit, Conservation Director of Living Rivers said the harms associated with looming tar sands extraction in the Uinta Basin aren’t merely limited to groundwater contimination. Rather, the entire surrounding ecosystem would be endangered. He told Amy Goodman:

Well, we’re concerned because this particular locality is in a high-elevation place called the Tavaputs Plateau, and it’s one of the last wild places in Utah. It’s a huge refuge for elk and deer. It’s also a beautiful watershed. It not only would affect the Colorado River, but it also—at this particular site, it’s at the top of the drainage, so it would also affect the White River and the Green River.

The PR Spring mining site is 5,930 contiguous acres with a “land position totalling 32,005 acres of bitumen extraction rights on leases in the State of Utah,” according to U.S. Oil Sands’ financial statement for the first half of 2012. AP explained that U.S. Oil Sands plans to extract 2,000 barrels of tar sands crude in Utah in 2012, “in the start of what could grow into a much larger operation.”

Two main grassroots activist groups are currently battling Utah’s upstart tar sands industry: Utah Tar Sands Resistance and Before It Starts. “The Utah Water Quality Board is an entirely inappropriate authority for determining the safety of both water safety and water availability for the 30 million people who depend on the Colorado RIver, most of which do not live in Utah,” Kate Finneran, Co-Director of Before It Starts told DeSmogBlog in an interview.

Though Living Rivers will appeal the decision, U.S. Oil Sands isn’t wasting any time in forging ahead, and according to the AP is already “looking to take on a partner, ordering equipment, hiring Utah contractors and preparing the site” for extraction.

5,900+ acres is a drop in the bucket for an industry sitting on some 232,065 acres of land open for tar sands extraction in the state of Utah, according to a Sept. 2012 story by Inside Climate News.

The U.S. tar sands are deemed a “strategically important domestic resource that should be developed to reduce the growing dependence of the United States on politically and economically unstable sources of foreign oil imports” in Sec. 369 of the Energy Policy Act of 2005.

Most well-known for the “Halliburton Loophole,” the Energy Policy Act of 2005 exempts oil and gas corporations from complying with the dictates of the Clean Water Act and the Safe Drinking Water Act, making the chemicals injected into the ground (and into groundwater) while hydraulic fractruing (“fracking”) for unconventional gas a “trade secret.” The law was written with the helping hand of oil and gas executives via then Vice President Dick Cheney’s Energy Task Force in 2001.

By legal mandate, it appears, the race to extract bitumen from “Tar Sands South” has just begun. It’s a race that, like the one being run by its Canadian neighbor to the north, can’t possibly end well for the ecosystem, public health, water quality and the global climate.