You are browsing the archive for Alberta.

ANR Pipeline: Introducing TransCanada’s Keystone XL for Fracking

2:14 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog   

When most environmentalists and folks who follow pipeline markets think of TransCanada, they think of the proposed northern half of its Keystone XL tar sands pipeline.

Flying beneath the public radar, though, is another TransCanada-proposed pipeline with a similar function as Keystone XL. But rather than for carrying tar sands bitumen to the Gulf Coast, this pipeline would bring to market shale gas obtained via hydraulic fracturing (“fracking”).

Meet TransCanada’s ANR Pipeline System.

Although not actually a new pipeline system, TransCanada wants ANR retooled to serve domestic and export markets for gas fracked from the Marcellus Shale basin and the Utica Shale basin via its Southeast Main Line.

“The [current Southeast Main Line] moves gas from south Louisiana (including offshore) to Michigan where it has a strong market presence,” explains a March 27 article appearing in industry publication RBN EnergyBecause of the immense amount of shale gas being produced in the Marcellus and Utica, TransCanada seeks a flow reversal in the Southeast Main Line of itsANR Pipeline System. 

TransCanada spokeswoman Gretchen Krueger told DeSmogBlog that ANR’s flow reversal is a “more efficient use of the system based on market demand.”

TransCanada has already drawn significant interest from customers in the open seasons and negotiations held to date, so much so it expects to begin the flow reversal in 2015.

“ANR Pipeline system has secured almost 2.0 billion cubic feet a day (Bcf/d) of firm natural gas transportation commitments on its Southeast Main Line (SEML) at maximum rates for an average term of 23 years,” reads a March 31 TransCanada press release. ”ANR secured contracts on available capacity on the [South East Mainline] to move Utica and Marcellus shale gas to points north and south on the system.”

Like Keystone XL, an Export Pipeline

Like Keystone XL, ANR’s flow reversal will serve — among other things — the global export market.

“This project will…allow more natural gas to move south to the Gulf Coast, where markets are experiencing a resurgence of natural gas demand for industrial use, as well as significant new demand related to natural gas exports from recently approved liquefaction terminals,” TransCanada CEO Russ Girling said in his company’s March 31 press release.

ANR will continue to be an attractive transportation option due to its strategic foot print, interconnections, on-system storage and access to high demand markets.

With the debate over liquefied natural gas (LNG) exports heating up in the U.S.,ANR has arrived on scene right in the knick of time for the oil and gas industry.

Other Keystone XL: Cove Point or Sabine Pass?

Some recent media coverage of the prospective Dominion Cove Point LNG export facility located in Lusby, Maryland has drawn comparisons to the Keystone XLdebate because both involve key pipeline systems, with accompanying plans to export product globally and the Obama Administration has final say over approval (or disapproval) of the pipeline.

Yet, while Cove Point awaits final approval from the U.S. Federal Energy Regulatory Commission (FERC), Cheniere’s Sabine Pass LNG export facility wasapproved by FERC in April 2012 and opens for business in late 2015.

Enter TransCanada into the mix with ANR and it’s the perfect storm: a KeystoneXL pipeline for fracking run by the same company that owns Keystone XL.

Creole Trail: ANR’s Connection to Sabine Pass

ANR feeds into the same Gulf Coast export and refinery markets Keystone XL is set to feed into (and the same ones its already-existing southern half, the Gulf Coast Pipeline Project feeds into).

Port Arthur, Texas — the end point for Keystone XL — is a mere 20 minute drive away from Sabine Pass, Louisiana.

That’s where Cheniere’s Creole Trail Pipeline comes into play, a 94-mile pipeline completed in 2008. Cheniere proposed an expansion project in September 2013 to FERC for Creole Trail, which FERC is still currently reviewing.

If granted the permit by FERC, the expansion would allow Creole Trail to connect to TransCanada’s ANR pipeline at the Mamou Compressor Station located in Evangeline Parish, Louisiana. 

Mamou Compressor Station already received an expedited air permit in October 2013 from the Louisiana Department of Environmental Quality (DEQ).

Exports Gone Wild, Climate Disruption Gone Wild

Read the rest of this entry →

TransCanada Begins Injecting Oil Into Keystone XL Southern Half

1:48 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Junk Pipeline

A Public Citizen report revealed many flawed TransCanada pipeline parts.

Keystone XL’s southern half is one step closer to opening for business. TransCanada announced that “on Saturday, December 7, 2013, the company began to inject oil into the Gulf Coast Project pipeline as it moves closer to the start of commercial service.”

The Sierra Club’s legal challenge to stop the pipeline was recently denied by the U.S. Court of Appeals for the Tenth Circuit, so the southern half, battled over for years between the industry and environmentalists, will soon become a reality.

According to a statement provided to DeSmog by TransCanada, “Over the coming weeks, TransCanada will inject about three million of [sic] barrels of oil into the system, beginning in Cushing, Oklahoma and moving down to the company’s facilities in the Houston refining area.”

In mid-January, up to 700,000 barrels per day of Alberta’s tar sands diluted bitumen (dilbit) could begin flowing through the 485-mile southern half of TransCanada’s pipeline, known as the Gulf Coast Project. Running from Cushing, Oklahoma to Port Arthur, Texas, the southern half of the pipeline was approved by both a U.S. Army Corps of Engineers Nationwide Permit 12 and an Executive Order from President Barack Obama in March 2012.

Bloomberg, The Canadian Press and The Oklahoman Gulf Coast Project pipeline is now being injected with oil. Line fill is the last key step before a pipeline can begin operations.

“There are many moving parts to this process — completion of construction, testing, regulatory approvals, line fill and then the transition to operations,” TransCanada spokesman Shawn Howard told DeSmog. “Line fill has to take place first, then once final testing and certifications are completed, the line can then go into commercial service.”

Residents living along the length of the southern half will have no clue about the rest of the start-up process, as TransCanada says it won’t provide any more information until the line is already running. ”For commercial and contractual reasons, the next update we will provide will be after the line has gone into commercial service,” the company announced.

When DeSmog asked whether the company is currently injecting conventional oil or diluted bitumen sourced from the Canadian tar sands, TransCanada’s Howard replied:

“Many people like to try and categorize the blend, etc., however we are injecting oil into the pipeline. As you’ve likely seen me quoted before, oil is oil and this pipeline is designed to handle both light and heavy blends of oil, in accordance with all U.S. regulatory standards.

I am not able to provide you the specific blend or breakdown as we are not permitted (by our customers) from disclosing that information to the media. There are very strict confidentiality clauses in the commercial contracts we enter into with our customers, and that precludes us from providing that. The reason is that if we are providing information about a specific blend, when it is in our system, etc. – that has the potential to identify who our customers may be or allow others to take financial positions in the market and profit from that information when others do not have access to the same information. This has much farther reaching impacts for the financial markets (and ultimately all of us).”

Riddled with Anomalies

The Keystone XL line fill comes just weeks after Public Citizen released an investigation revealing potentially dangerous anomalies such as dents, faulty welding and exterior damage that the group suggests could lead to pipeline ruptures, tears and spills.

Read the rest of this entry →

Dirty Details: Dents, Faulty Welds Found Along Keystone XL Southern Half in Texas

9:03 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

If an ecologically hazardous accident happens to TransCanada’s Keystone XL (KXL) tar sands pipeline, we can’t say we weren’t forewarned. That’s the latest from a press release and YouTube video recently disseminated by the good government group, Public Citizen.

Public Citizen’s Texas office explained, “Dozens of anomalies, including dents and welds, reportedly have been identified along a 60-mile stretch of the southern segment of the Keystone XL pipeline, north of the Sabine River in Texas.”

A recent report appearing in The Houston Chronicle revealed KXL’s southern half is over 75-percent complete and will be on-line by late-2013. That half of the pipeline brings tar sands – also known as diluted bitumen, or “dilbit” – from Cushing, OK (dubbed the “pipeline cross-roads of the world“) down to Port Arthur, TX, where it ends up exported to the global market.

KXL’s northern half is still in its proposal phase. Its eventual fate sits entirely in the hands of President Barack Obama and his U.S. State Department because it’s a border-crossing pipeline. In March 2012, President Obama issued an Executive Order for expediting building of KXL’s southern half.

Earlier this year, Tar Sands Blockade - a group committed to creative non-violent direct action to stop the building of KXL’s southern half – also detected defective welding in the pipeline, akin go that discovered by Public Citizen. The group did so when one of its activists went inside of the pipeline and discovered light seeping through it.

Despite this new concrete evidence from both Public Citizen and Tar Sands Blockade, the State Dept. recently denied Friends of the Earth-U.S.‘s (FOE) request to have its key Freedom of Information Act request expedited, one which would likely expose Big Oil’s influence over State’s KXL northern half decision. State argued the request doesn’t “meet any of the established criteria” for expedition, though Public Citizen’s latest spate of findings shows otherwise.

Faulty Welding: Dirt’s in the Details, Detail’s in the Dirt

An old adage goes, “the dirt’s always in the details” one digs up. So too with this latest revelation by Public Citizen - both figuratively and literally.

“Some of the new pipeline has been in the ground on some owners’ land for almost six months,” Public Citizen’s news release reads. “Landowners are concerned that this digging is indicative of faulty pipeline along the route that could potentially leak and threaten water supplies, and have requested TransCanada and the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) to provide more information about the work.”

The “dirt” in this situation was excavated not merely through landowner speculation, but straight from TransCanada’s own contractors.

“The anomalies and other problems were reported to landowners along the line…by several TransCanada vendors, including an independent inspector and a right-of-way representative,” Public Citizen further explained, also writing that each “marked section [has] a stake that reads ‘Anomaly.’”

“Anomaly” or More of the Same?

Yet, is any of this really an “anomaly”? Again, the “dirt’s in the details.”

Read the rest of this entry →

State Department’s Keystone XL Contractor ERM Green-Lighted BP’s Explosive Caspian Pipeline

9:09 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

The more things change, the more they stay the same. 

Map of BTC Pipeline

The BTC Pipeline, called the "New Silk Road" but also a "Time Bomb," reveals many potential flaws of the KXL Pipeline.

Almost 11 years ago in June 2002, Environmental Resources Management (ERM) Group declared the controversial 1,300 mile-long Baku–Tbilisi–Ceyhan (BTC) Pipeline environmentally and socio-economically sound, a tube which brings oil and gas produced in the Caspian Sea to the export market.

On March 1, it said the same of the proposed 1,179 mile-long TransCanada Keystone XL (KXL) Pipeline on behalf of an Obama State Department that has the final say on whether the northern segment of the KXL pipeline becomes a reality. KXL would carry diluted bitumen or “dilbit” from the Alberta tar sands down to Port Arthur, Texas, after which it will be exported to the global market

ERM Group, a recent DeSmogBlog investigation revealed, has historical ties to Big Tobacco and its clients include ExxonMobil, ConocoPhillips and Koch IndustriesMother Jones also revealed that ERM – the firm the State Dept. allowed TransCanada to choose on its behalf - has a key personnel tie to TransCanada.

Unexamined thus far in the KXL scandal is ERM’s past green-light report on the BTC Pipeline – hailed as the “Contract of the Century” – which has yet to be put into proper perspective.

ERM is a key player in what PLATFORM London describes as the “Carbon Web,” shorthand for “the network of relationships between oil and gas companies and the government departments, regulators, cultural institutions, banks and other institutions that surround them.”

In the short time it has been on-line, the geostrategically important BTC pipeline - coined the “New Silk Road” by The Financial Times - has proven environmentally volatile. A full review of the costs and consequences of ERM’s penchant for rubber-stamping troubling oil and gas infrastructure is in order.

Massive Pipeline, Massive Hype: Sound Familiar?

Like the Keystone XL, the BTC Pipeline – owned by a consortium of 11 oil and gas corporations, including BP, State Oil Company of Azerbaijan (SOCAR), Chevron, ConocoPhillips, Eni and Total – was controversial and inspired a bout of activism in the attempt to defeat its construction.

Referred to as “BP’s Time Bomb” by CorpWatch, the BTC Pipeline was first proposed in 1992, began construction in May 2003 and opened for business two years later in May 2005. BTC carries oil and gas from the Azeri-Chirag-Gunashli (ACG) Caspian Sea oil field, co-owned by Chevron, SOCAR, ExxonMobil, Devon Energy and others, which contains 5.4 billion recoverable barrels of oil.

Paralleling the prospective 36-inch diameter Keystone XL that would carry 830,000 barrels per day of tar sands bitumen through the U.S. heartland, the BTC serves as a 42-inch diameter export pipeline and moves 1 million barrels of oil per day to market.

Like today’s KXL proposal – which would only create 35 full-time jobs – the false promise of thousands of jobs also served as the dominant discourse for BTC Pipeline proponents. The reality, like KXL, was more dim. The Christian Science Monitor pointed out in 2005 that only 100 people were hired full-time in Georgia, the second destination for BTC.

“People were told that there would be 70,000 Georgians that were going to be employed because of this pipeline,” Ed Johnson, BP’s former project manager in Georgia told the St. Petersburg Times in 2005. “The (Georgian) government needed to sell the project to its own people so some of the benefits were overblown.”

Massive Ecological Costs and Consequences

Read the rest of this entry →

Keystone XL North: TransCanada’s Controversial Shale Gas Export Pipeline Plan

3:07 pm in Uncategorized by Steve Horn

The battle continues over the future of TransCanada’s Keystone XL tar sands pipeline, with the Tar Sands Blockade continuing and a large forthcoming President’s Day anti-Keystone XL rally set to take place in Washington, DC.

pipelineIn a nutshell: Keystone XL, if approved by the U.S. State Department, will carry viscous and dirty tar sands crude – also known as diluted bitumen or “dilbit” – from Alberta, Canada down to Port Arthur, TX. From Port Arthur, the tar sands crude will be exported to the global market.

Muddying the waters on the decision is the fact that The Calgary Herald recently revealed that prospective Secretary of State, John Kerry, has financial investments in two tar sands corporations: Suncor and Cenovus. Kerry has $750,000 invested in Suncor and another $31,000 invested in Cenovus.

Which of course all begs the question: Is this another episode of State Department Oil Services all over again?

North America’s Shale Gas Industry’s Keystone XL

North of the border, TransCanada is proposing another export pipeline for the shale gas industry.

Dubbed the Prince Rupert Gas Transmission project, the $5.1 billion project will carry gas obtained via the controversial fracking process from the Montney Shale basin westward to the coast of British Columbia. From there, the gas will be exported in the form of liquefied natural gas (LNG) to Asia starting in 2018.

“Gas producers in British Columbia’s Montney Shale, far from North American population centers, are seeking Asian markets for the heating and power-plant fuel,” the Houston Chronicle‘s “Fuel Flex” explained.

US Debate Over Shale Gas Exports Also Continues

Meanwhile, south of the border, debate continues over the future of U.S. gas markets.

On Jan. 24, the comment period closes for the U.S. Department of Energy’s (DOE) study on LNG exports.

That study, contracted out to the oil, gas and coal industry-friendly NERA Economic Consulting concluded that exports are a net benefit for the U.S. economically. The Sierra Club has filed a Freedom of Information Act to discern how the Obama DOE went about choosing NERA as the contractor.

“Deciding to export the U.S. gas supply is a major public decision,” Deb Nardone, director of the Sierra Club’s Beyond Natural Gas Campaign said in a press release. “We deserve a full and fair conversation about it. That’s why we deserve to know how and why DOE picked this anti-environmental, pro-corporate consultant for this crucial report.”

On top of its looming decision on the Keystone XL, it’s likely that the Obama Administration will make a final decision on whether or not to greenlight shale gas exports sometime in 2013.

Though it’s still the dead of winter, the policy agenda is about to heat up in the energy and environment policy arenas inside the Beltway in the coming weeks.

Cross-Posted from DeSmogBlog
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.