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Keystone XL Review Extended, Delaying Final Decision Until After 2014 Elections

1:04 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

TransCanada’s northern leg of the Keystone XL tar sands pipeline will not be decided on until after the 2014 mid-term elections.

Reuters and Politico broke a major story today that TransCanada‘s northern leg of the Keystone XL tar sands pipeline will not be decided on until after the 2014 mid-term elections.

“The U.S. State Department will…extend the government comment period on the Keystone XL pipeline, likely postponing a final decision on the controversial project until after the November 4 midterm elections,” Reuters explained.

Secretary of State John Kerry and President Barack Obama have final say over whether the pipeline will be built because it crosses the U.S.-Canada border.

Reporters learned of the decision after a call between high-level congressional staff and State Department officials.

“The justification is the need to wait on continued litigation over a Nebraska court decision earlier this year, which threw part of the project’s route in doubt, two sources said today after a call between the State Department and congressional staff,” reported Politico.

In the end, the decision came down to politics, according to Politico, though there are no shortage of climate change and ecological concerns for the prospective pipeline.

“A delay past November would spare Obama a politically difficult decision on whether to approve the pipeline, angering his green base and environmentally minded campaign donors — or reject it, endangering pro-pipeline Democrats,” they reported.

Proponents and Opponents Respond

Twitter has been abuzz since rumors of the announcement started swirling and many prominent individuals with a stake in the fight have already chimed in.

“Keystone XL delay further proof that State Department has bungled this process and has no business overseeing environmental reviews,” tweeted Friends of the Earth Senior Campaigner Ross Hammond.

Bill McKibben — whose organization 350.org led the civil disobedience Tar Sands Action in summer 2011 that put the Keystone XL and tar sands on the map for many — also responded.

It’s as if our leaders simply don’t understand that climate change is happening in real time–that it would require strong, fast action to do anything about it. While we’re at it, the State Department should also request that physics delay heat-trapping operations for a while, and that the El Nino scheduled for later this spring be pushed back to after the midterms. One point is clear: without a broad and brave movement, DC would have permitted this dumb pipeline in 2011. So on we go.

Elijah Zarlin, CREDO’s senior campaign manager, said: “It is deeply disappointing that Secretary Kerry and President Obama can’t yet muster the courage to stand up to the oil industry and reject Keystone XL. Still, this is yet another defeat for TransCanada, tar sands developers like the Koch Brothers, and oil-soaked politicians. No doubt, the nearly 100,000 people who have pledged to risk arrest to stop Keystone XL played a key role in pushing the administration to more accurately consider the full impact of this project – which must clearly result in rejection. No delays will diminish our commitment to stopping Keystone XL.”

On the other side, Fox News referred to the decision as a “Friday News Dump” and the Koch Brothers-funded American Energy Alliance (AEA) tweeted, “Most had never even heard of @justinbieber back when @TransCanada applied for #KeystoneXL permits,” alluding to the fact Keystone XL has now been up for debate for five years.

Industry-funded Energy in Depth spokesman Steve Everly echoed AEA.

“It took the U.S. less than 4 years to win two theaters in World War II,” stated Everly. “It’s been five years and we can’t approve a metal pipe.”

One thing’s for certain: the prospective pipeline will likely become a major politico “hot potato” in the months leading up to the November 2014 elections. Read the rest of this entry →

“Our Energy Moment:” The Blue Engine Behind Fracked Gas Exports PR Blitz

11:52 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog 

Our Energy Moment log

Blue Engine Media’s pro-fracking moment

Behind nearly every major corporate policy push there’s an accompanying well-coordinated public relations and propaganda campaign. As it turns out, the oil and gas industry’s push to export liquefied natural gas (LNG) obtained via hydraulic fracturing (“fracking”) plays the same game.

And so on February 5, “Our Energy Moment” was born. The PR blitz is described in a press release announcing the launch as a “new coalition dedicated to raising awareness and celebrating the many benefits of expanded markets for liquefied natural gas.”

Its member list includes industry heavy hitters such as Cheniere Energy, Sempra Energy, Louisiana Oil and Gas Association and Freeport LNG.

Since its launch, “Our Energy Moment” has disseminated press releases about theU.S. Department of Energy’s (DOE) conditional approval of Jordan Cove LNGexport facility in Coos Bay, Oregon and its conditional approval of Cameron LNG export facility in Hackberry, Louisiana.

So the industry is funding a PR campaign clearly in its self interest. But so what? You have to read all the way to the bottom of the press releases to find what’s perhaps the most interesting tidbit.

At the very bottom of “Our Energy Moment’s” releases, a contact person named Tiffany Edwards is listed with an email address ending in @blueenginemedia.com. If you visit blueenginemedia.com you’ll find the website for PR and advertising firm Blue Engine Message & Media.

Further, a domain name search for ourenergymoment.org reveals the website was registered by another PR and web development firm called Liberty Concepts by its founder and president Jonathan Karush. Karush registered the site on May 8, 2013, a full ten months before the campaign’s official launch date.

Who are these firms and why do they matter? That’s where the fun begins.

Blue Engine Media

According to its website, Blue Engine helps “develop and implement strategic public policy campaign plans for corporations, coalitions, non-profits and national trade associations, particularly when reputation, brand or market position face a threat or opportunity.”

Clients past and present include Citibank, Ford, Delta, American Federation of Teachers (AFT), the 2008 and 2012 Democratic National Conventions and Obama for President in 2008 and 2012, among others.

The firm was founded by Erik Smith — self-described “recovering political hack & aspiring corporate hack“ — served as senior advisor for advertising and message development for President Barack Obama’s 2008 and 2012 presidential campaigns and former Communications Director for the Democratic Congressional Campaign Committee.

Smith also founded and helped coordinate the Common Purpose Project, set up to “discuss White House plans, priorities, and messages with [progressive] groups,” according to Mother Jones’ David Corn. “But some of the outside participants considered the meetings mostly sessions where the administration tossed out talking points and marching orders.”

Common Purpose has received strong criticism from both investigative journalist Jeremy Scahill and founder of FireDogLakeJane Hamsher.

Internal Revenue Service (IRS) 990 tax forms show Common Purpose was run out of Blue Media’s office as of 2012 (the phone number listed on its IRS 990 formsmatches the one listed on Blue Engine’s website, as well) and Erik Smith received over $1.3 million between 2009 and 2012 to work on this account.

Other Blue Engine luminaries include:

  • Adam Abrams: The former regional communications director and spokesperson for President Barack Obama, Abrams was also on the communications team at the Democratic Congressional Campaign Committee and sat on the communications staff for both the Obama 2008 and John Kerry 2004 presidential campaigns.
  • Amber McDowell and Jacob Sittig: McDowell formerly served as Communications Director for U.S. Sen. Mary Landrieu (D-LA), the new head of theU.S. Senate Energy and Natural Resources Committee. Sittig was Landrieu’s former Deputy Press Secretary.
  • Jessica Borchert: Borchert worked on the Obama 2012 campaign. In that capacity, she did “production of the Democratic National Convention in Charlotte, North Carolina and [worked] on the ground in Colorado coordinating press operations.”
  • Catherine Lavelle: Lavelle worked on the Obama for President team in 2012 and also was the Media Logistics Manager for the 2012 Democratic National Convention.

Further, Laura Burton Capps — former Assistant to George Stephanopoulos in the Bill Clinton White House and speechwriter for Clinton — was a Blue Engine principal until 2013. Capps also formerly worked on the staff for the Common Purpose Project and is listed as the principal officer on its 2011 IRS 990 form.

Laura Capps is married to Bill Burton, former Deputy Press Secretary for Obama and co-founder of Priorities USA, a “dark money” Democratic Super-PAC set up to compete with Republican “dark money” Super-PAC Crossroads GPS.

And then there’s Tiffany Edwards, the point person for the “Our Energy Moment” file and where this whole inquiry began.

Before coming to Blue Engine, Edwards served as Deputy Press Secretary at the Department of Energy — the agency with final legal decisionmaking power overLNG export proposals — for the first two years of the Obama Administration. Prior to that, she worked for the 2008 Obama campaign’s press staff in the Chicago headquarters.

Roll Call reported she was hired on February 3, meaning “Our Energy Moment” was likely the first file on her Blue Engine account. Edwards hasn’t responded to questions sent to her via email by DeSmogBlog.

Liberty Concepts

Like Blue Engine, Liberty Concepts maintains tight ties with the Democratic Party and groups with close ties to the party, describing itself as a “full service digital communications agency that specializes in helping create brands and develop online communities around them.”

Read the rest of this entry →

BP Doubles Initial Size Estimate of Lake Michigan Oil Spill

7:37 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Three days after spilling crude oil into Lake Michigan, BP has doubled its spill estimate to between 470 and 1228 gallons. The leak happened at its refinery in Whiting, Ind.

Although some of the oil has been cleaned up, it’s unclear how much is left in the lake, a drinking water source for about seven million Chicagoans.

Located just across the Illinois-Indiana state border, Whiting is home to the sixth largest refinery in the U.S. The refinery just went through a $4 billion “modernization project,” giving it “the capability of processing up to about 85 percent heavy crude.” That’s up from its original 20 percent, says BP’s website.

“Frigid temperatures caused some of the oil to harden into a waxy consistency that made it easier to collect,” BP spokesman Scott Dean told The Chicago Tribune. “Crews used vacuum trucks to suck up any liquid oil that washed ashore.”

The day after the spill, U.S. Sen. Dick Durbin (D-IL) and U.S. Sen. Mark Kirk (R-IL), as well as U.S. Sen. Debbie Stabenow (D-MI) and U.S. Sen. Carl Levin (D-MI) issued press releases in which they pledged to hold BP accountable for the spill. Durbin and Kirk also wrote a follow-up letter to BP, requesting a meeting with BP.

“Any unanticipated spill is cause for concern, but given the Whiting refinery’s recent expansion of its operations to double the amount of heavy oil sands being processed, this spill raises questions about the long-term safety and reliability ofBP’s new, expanded production at Whiting,” they wrote.

Chicago Mayor (and President Obama’s former Chief-of-Staff) Rahm Emanuel had similar things to say.

“I expect a full accounting to the public,” said Emanuel. “I want a report on what happened, how it happened, why did it happen, how much happened and how do you prevent it from ever happening again.”

Though BP claims it’s “recovered the vast majority of oil that had been visible on the surface,” questions remain.

For one, what type of oil was spilled? The refinery processes tar sands bitumen, which sinks in freshwater, a point alluded to in Kirk and Durbin’s letter to BP.

Video Shows Cleanup Crew Offshore

According to a March 25 EPA press release, the “U.S. Coast Guard has flown over the area and has not observed any visible sheen.”

EPA has also deployed a “Shoreline Cleanup Assessment Team,” which consists of employees of the Coast Guard, EPA and BP. The team says it “saw minimal oiling of the shoreline and recommended a small manual removal crew conduct maintenance along the shoreline” and posted some pictures of its cleanup efforts online.

The EPA’s account has become the widely accepted one in local and national media. But a video placed on The Chicago Tribune’s website calls some of it into question.

Read the rest of this entry →

Keystone XL’s Northern Leg: A Fracked Oil Pipeline Along With Tar Sands

3:45 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Bakken Flaring Gas at Night

On January 31, President Barack Obama’s U.S. State Department released its Final Environmental Impact Statement (FEIS) for the northern leg of TransCanada‘s proposed Keystone XL tar sands pipeline.

The State Department’s FEIS argues that the northern half of Keystone XL, if built, “remains unlikely to significantly impact the rate of extraction in the oil sands, or the continued demand for heavy crude oil at refineries in the United States.”

But flying under the media’s radar so far, the State Department review also highlights the prospect that Keystone XL will not only carry tar sands, but also be tapped to carry up to 100,000 barrels per day of oil extracted via hydraulic fracturing (“fracking”) from North Dakota’s Bakken Shale basin.

“[Keystone XL] would have the capacity to deliver up to 830,000 bpd, of which 730,000 bpd of capacity has been set aside for [tar sands] and the remaining 100,000 bpd of capacity set aside for [Bakken] crude oil,” the report details.

[TransCanada] has represented that it has firm commitments to transport approximately 555,000 bpd of [tar sands], as well as 65,000 bpd of crude oil from the Bakken.

A smaller proposed project owned by TransCanada called the Bakken MarketLink pipeline and incorporated as Keystone Marketlink LLC in February 2011, would ship the fracked oil to Keystone XL’s northern leg as an “on ramp.”

“This project would include a 5-mile pipeline, pumps, meters, and storage tanks to supply Bakken crude oil to the proposed pipeline,” explains the FEIS.

For Bakken Fracked Oil, ‘No’ on KXL Means Rail

Many doubt that rail could ever replace pipeline as a viable marketing mechanism for Alberta’s tar sands. But few could argue the fact that rail reigns supreme for bringing Bakken fracked oil to market.

“Last November, rail shipped 71 percent — nearly 800,000 barrels of oil a day — of the Bakken’s oil, much of it on lines across Minnesota and Wisconsin, while pipelines shipped just 22 percent, according to estimates from the North Dakota Pipeline Authority,” explains the Duluth News Tribune.

The State Department FEIS suggests that if Keystone XL were never completed, the oil industry will instead ship the Bakken crude via rail. Both Union Pacific and Burlington Northern Santa Fe (BNSF) are mentioned by name as the potential corporate beneficiaries.

“One new rail loading terminal would be needed in Epping [in ND] to ship Bakken crude oil,” reads the FEIS. “Sufficient off-loading rail facilities currently exist or are proposed in the Gulf Coast area such that no new terminals would need to be built under this scenario.”

On December 30, 2013, a BNSF freight rail train carrying Bakken fracked oil exploded in Casselton, NDspilling over 400,000 gallons of oil. In July 2013, 47 people were killed in Lac-Mégantic, Quebec by another “bomb train” carrying Bakken crude.

Officially classified as more volatile and explosive than conventional oil by the U.S. government and some state governments, some activists have labeled freight trains carrying Bakken oil “Bomb Trains.” There were more gallons of oil spilled via rail cars carrying crude in 2013 than in the previous four decades combined.

Protests Occur in Over 200 Cities

In response to the release of the FEIS, Credo Mobile, Rainforest Action Network, Sierra Club, 350.org, The Other 98%, Center for Biological Diversity, Oil Change International, Friends of the Earth and other groups mobilized on Monday. 280 vigils took place across the country on February 3, kicking off the 30-day public comment period on the FEIS and 90-day period allotted for a response to the FEIS by the U.S. Environmental Protection Agency and the U.S. Department of Interior.

“This issue has already brought more Americans into the streets than any environmental issue in decades, and now finally we’re at the point of decision,” Bill McKibben, founder of 350.org, said at the New York City rally.

“It’s out of the hands of the bought-off bureaucrats who’ve been delaying it in the State Department for years and doing the bidding of the fossil fuel industry. Now we’re going to find out whether John Kerry and Barack Obama are similarly captives of the oil industry or whether they’re willing to really stand up when it counts for the commitments they’ve made about climate change.”

In setting up the protests, many may have thought they were protesting tar sands extraction and marketing in exclusivity.

Yet, when push comes to shove, the fight against Keystone XL’s northern leg is actually a fight against both tar sands extraction and fracking — and of course, runaway climate change. Read the rest of this entry →

Days Before Oil Train Explosion, Obama Signed Bill Hastening Fracking Permits on ND Public Lands

6:57 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Obama

President Obama eases fracking regulations days before explosive crash.

On December 20, both chambers of the U.S. Congress passed a little-noticed bill to expedite permitting for hydraulic fracturing (“fracking”) on public lands in the Bakken Shale basin, located predominantly in North Dakota. And on December 26, President Obama signed the bill into law.

Days later, on December 30, a Burlington Northern Santa Fe (BNSF) freight train owned by Warren Buffett carrying Bakken fracked oil exploded in Casselton, North Dakota. Locals breathed a smoky sigh of relief that the disaster happened outside the town center. In July 2013, a “bomb train” carrying Bakken oil exploded in Lac-Mégantic, Quebec, killing 47 people.

Dubbed the “Bureau of Land Management (BLM) Streamlining Act,” the bill passed unanimously in the Senate as S.244 and 415-1 in the House as H.R. 767, with Rep. Justin Amash (R-MI) serving as the sole “nay” vote and 16 representatives abstaining. Among the abstentions were representatives Peter Defazio (D-OR), Henry Waxman (D-CA) and John Campbell (R-CA).

H.R. 767′s sponsor is North Dakota Republican Rep. Kevin Cramer, who received $213,150 from the oil and gas industry prior to the 2012 election, and an additional $29,000 for the forthcoming 2014 elections.

Cosponsors include Wyoming Republican Rep. Cynthia Lummis ($109,050 from the oil and gas industry pre-2012 election, $28,500 in the 2014 election cycle), South Dakota Republican Rep. Kristi Noem ($95,501 from the industry pre-2012 election, $20,400 pre-2014) and Montana Republican Rep. Steve Daines ($124,620 pre-2012 election and $87,412 pre-2014).

S.244 is sponsored by Sen. John Hoeven (R-ND), who has taken $291,237 from the oil and gas industry since his 2010 election to Congress. Cosponsor Sen. Heidi Heitkamp (D-ND) received $111,050 from the oil and gas industry since her 2012 electoral victory.

Sen. Hoeven visited BNSF’s Fort Worth, Texas, corporate headquarters on January 3 to meet with the company’s CEO, Matt Rose, “to get an update on the Casselton derailment and measures that can be taken to enhance railroad safety.”

“While it’s a blessing that no one was hurt in this accident, we must now work with the National Transportation Safety Board (NTSB), industry and leaders on all levels to get to the root cause of this week’s derailment,” Hoeven said in a press statement, not mentioning the bill he sponsored will create additional oil-by-rail markets.

“We also need to rigorously review ways that shipping petroleum products by rail can be improved for safety.”

Energy Policy Act of 2005 Amendment

The BLM Streamlining Act passed into law by the Obama administration is actually an amendment to Section 365 of the Bush-era 2005 Energy Policy Act. It creates offices in North Dakota and Montana to rubber stamp fracking permits on public lands in those states.

Section 365 created a “Pilot Project to Improve Federal Permit Coordination” on public lands “to improve coordination of oil and gas permitting…as a means of meeting the Nation’s need for dependable, affordable, environmentally responsible energy,” explains the BLM website.

This compelled BLM to set up field offices to more efficiently fast track oil and gas drilling permits in Rawlins and Buffalo, Wyoming; Miles City, Montana; Farmington and Carlsbad, New Mexico; Grand Junction/Glenwood Springs, Colorado; and Vernal, Utah.

Left out of the original Section 365: North Dakota, the new darling of the U.S. domestic oil fracking scene. The BLM Streamlining Act ”[r]eplaces the Miles City, Montana field office with the Montana/Dakotas State Office,” creating an open season for fracking North Dakota’s public lands.

The Energy Policy Act of 2005 is perhaps most famous for the “Halliburton Loophole,” which exempted the fracking industry from the legal dictates of the Safe Drinking Water Act and other laws. The loophole also made the chemicals contained in “fracking fluid” a trade secret, meaning the industry doesn’t have to disclose the recipe of chemicals injected into the ground in fracking operations.

Obama Executive Order: Fast-Track Bakken Permits

In March 2012, President Obama issued Executive Order 13604, lending an explanation to his signing off on the BLM Streamlining Act.

Obama announced the Order while standing in front of the sections of pipe that would soon become the southern half of TransCanada’s Keystone XL pipeline (now rebranded the “Gulf Coast Pipeline“) in Cushing, Oklahoma (the “pipeline crossroads of the world“) — a pipeline that will be fast-tracked by the Order.

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 →

Documents: ALEC’s Looming Attacks on Clean Energy, Fracking Laws, Greenhouse Gas Regulations

4:05 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

The Guardian has released another must-read piece about the American Legislative Exchange Council (ALEC), this time laying bare its anti-environmental agenda for 2014.

The paper obtained ALEC’s 2013 Annual Meeting Policy Report, which revealed that ALEC — dubbed a “corporate bill mill” for the statehouses by the Center for Media and Democracy — plans more attacks on clean energy laws, an onslaught of regulations pertaining tohydraulic fracturing (“fracking”) and waging war against Environmental Protection Agency (EPA) greenhouse gas regulations.

“Over the coming year, [ALEC] will promote legislation with goals ranging from penalising individual homeowners and weakening state clean energy regulations, to blocking the Environmental Protection Agency, which is Barack Obama’s main channel for climate action,” explained The Guardian. “Details of ALEC’s strategy to block clean energy development at every stage, from the individual rooftop to the White House, are revealed as the group gathers for its policy summit in Washington this week.”

The documents also reveal ALEC’s boasting of introducing myriad “model resolutions” nationwide in support of fast-tracking approval for the northern half of Transcanada’s Keystone XL pipeline, along with another “model bill” — the “Transfer of Public Lands Act” already introduced in Utah — set to expropriate federally-owned public lands to oil, gas and coal companies.

Attacks from Household to White House

Among the more interesting discoveries by The Guardian: ALEC has plans to attack clean energy from the household-level to the White House-level, working in service to its utility industry members’ unfettered profits.

John Eick, legislative analyst for ALEC’s Energy, Environmental and Agriculture Task Force, told The Guardian that ALEC is closely scrutinizing “how individual homeowners with solar panels are compensated for feeding surplus electricity back into the grid.”

“As it stands now, those direct generation customers are essentially freeriders on the system,” Eick told The Guardian. “They are not paying for the infrastructure they are using. In effect, all the other non direct generation customers are being penalised.”

Yet, far from a “free ride,” a report commissioned by the Arizona Public Service found household solar panels offer a “range of benefits.” Distributed energy generation defers the need for capital allocation into utility investments, saving ratepayers money in avoiding investments into expensive utility projects.

Not limiting itself to penalizing those installing solar panels on their homes, ALEC has also joined the right wing echo chamber in waging war against President Barack Obama’s push to regulate coal-fired power plants and has a model resolution that will be voted on at its States and Nation Summit taking place this week in Washington, DC.

“ALEC is very concerned about the potential economic impact of greenhouse gas regulation on electricity prices and the harm EPA regulations may have on the economic recovery,” the resolution reads.

This effort is in line with its previous efforts, coining EPA regulations of greenhouse gases a “regulatory trainwreck” and calling for a two-year regulatory moratorium.

ALEC’s Frack Attack

Read the rest of this entry →

The Geopolitics of Energy: An Interview with Steve Horn

9:14 am in Uncategorized by Steve Horn

Cross-Posted from Frack the Media

If there is an up-and-coming investigative journalist to follow, it’s Steve Horn of DeSmog Blog. If you follow any of Frack The Media’s social media, you’ve been exposed to Steve. What draws us to Steve (and others like him) is his attention to detail surrounding the energy issue. It’s a multifaceted, highly complex and propagated geopolitical issue — regular reports often miss these intricacies (as mainstream media outlets tend to gloss over complex topics ). Long story short, we got to pick Steve’s brain and highlight some of the important investigative work he does.

Frack The Media: A lot of your reporting has focused on fracking and tar sands. What draws you to these particular issues?

Steve Horn: I focus on these issues for a number of reasons. Most importantly, the majority of the reporting on these issues by U.S. and Canadian reporters only grazes the surface, treating them as only environmental issues or only as energy issues. That’s not the case.

Given my academic background is in sociology and history and my keen interest in geopolitics, there is far more to these issues than meets the eye at face-value. I use my “sociological imagination,” as C. Wright Mills put it, when doing reporting on these issues. That means being an ecologist and looking at how the local interconnects with the global and looking at energy as not only an environmental issue, but also as a geopolitical issue.

In the case of fracking and tar sands, they’re the two biggest sources of energy that have transformed the U.S. and Canada into the “New Saudi Arabia” for oil and gas, huge players in the geopolitical “great game,” as Zbiginiew Brzezinski once put it. Not only are these important issues because they’re ravaging ecosystems and racing us to climate change catastrophe, but they’re also reshaping geopolitics as we know it.

There will still be wars for oil of course, as it’s a cornerstone of U.S. geopolitical planning. But given tar sands and fracking are both seen as political pawn chips on the “Grand Chessboard” to fend off Russian dominance of the global gas market and Saudi/Russian dominance of the global oil market, these issues aren’t going away anytime soon without a hell of a fight by grassroots activists, regardless of the idealism of some well-meaning environmentalists. That means busy times for an investigative journalist and endless stories to tell, an incredible time to be in the business to say the least.

FTM: You’ve reported on the industry influence of academic research on fracking (“frackademia”). Can you explain this issue and it’s significance?

Read the rest of this entry →

Obama Approves Major Border-Crossing Fracked Gas Pipeline Used to Dilute Tar Sands

8:39 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Kinder Morgan logo

Kinder Magic?

Although TransCanada’s Keystone XL tar sands pipeline has received the lion’s share of media attention, another key border-crossing pipeline benefitting tar sands producers was approved on November 19 by the U.S. State Department.

Enter Cochin, Kinder Morgan’s 1,900-mile proposed pipeline to transport gas produced via the controversial hydraulic fracturing (“fracking”) of the Eagle Ford Shale basin in Texas north through Kankakee, Illinois, and eventually into Alberta, Canada, the home of the tar sands.

Like Keystone XL, the pipeline proposal requires U.S. State Department approval because it crosses the U.S.-Canada border. Unlike Keystone XL – which would carry diluted tar sands diluted bitumen (“dilbit”) south to the Gulf Coast – Kinder Morgan’s Cochin pipeline would carry the gas condensate (diluent) used to dilute the bitumen north to the tar sands.

“The decision allows Kinder Morgan Cochin LLC to proceed with a $260 million plan to reverse and expand an existing pipeline to carry an initial 95,000 barrels a day of condensate,” the Financial Post wrote.

“The extra-thick oil is typically cut with 30% condensate so it can move in pipelines. By 2035, producers could require 893,000 barrels a day of the ultra-light oil, with imports making up 786,000 barrels of the total.”

Increased demand for diluent among Alberta’s tar sands producers has created a growing market for U.S. producers of natural gas liquids, particularly for fracked gas producers.

“Total US natural gasoline exports reached a record volume of 179,000 barrels per day in February as Canada’s thirst for oil sand diluent ramped up,”explained a May 2013 article appearing in Platts. ”US natural gasoline production is forecast to increase to roughly 450,000 b/d by 2020.”

Before Eagle Ford, Kinder Morgan Targeted Marcellus

Pennsylvania’s Marcellus Shale basin was Kinder Morgan’s first choice pick for sourcing tar sands diluent for export to Alberta. It wasn’t until that plan failed that the Eagle Ford Shale basin in Texas became Plan B.

Known then as the Kinder Morgan Cochin Marcellus Lateral Project proposal, the project fell by the wayside in February 2012.

“The company’s Cochin Marcellus Lateral Pipeline would have started in Marshall County, West Virginia, and transported natural gas liquids from the Marcellus producing region of Pennsylvania, West Virginia and Ohio,” wrote the Mount Vernon News of the canned project. [It] would [then] carry the [natural gas] liquids to processing plants and other petrochemical facilities in Illinois and Canada.”

“Kinder Magic”: More to Come?

Industry market trends publication RBN Energy described Kinder Morgan’s dominance of the tar sands diluent market as “Kinder Magic” in a January 2013 article.

“These are still early days for the developing condensate business in the Gulf Coast region,” RBN Energy’s Sandy Fielden wrote. “Plains All American and Kinder Morgan are developing the potential to deliver at least 170,000 barrels per day of Eagle Ford condensate as diluent to the Canadian tar sand fields in Alberta by the middle of 2014.”

Fielden explained we could see many more of these projects arise in the coming years.

“We have a sense that before too long there will be many more condensate infrastructure projects showing up like ‘magic’ in midstream company presentations.”

While the industry press coverage sounds optimistic, it doesn’t account for the concurrent rise of public opposition to dirty energy pipelines and expansion plans in the fracking and tar sands arenas, so only time will tell the fate of Cochin and its kin.

US Court: Transcanada’s Keystone XL Profits More Important than Environment

3:58 am in Uncategorized by Steve Horn

pipeline

The financial needs of the Transcanada outweigh the needs of the environment, says US court

In a major ruling that’s flown under the radar, the U.S. Court of Appeals for the Tenth Circuit – based in Denver, Colorado — decided not to grant the Sierra Club and Clean Energy Future Oklahoma a temporary injunction on the construction of the southern half of Transcanada’s Keystone XL tar sands export pipeline.

The Court’s decision hinged on an “injury” balancing test: Would Transcanada be hurt more financially from receiving an injunction? Had it lost, it would be stuck with one until Sierra Club, et al receive a U.S. District Court decision on the legality of the U.S. Army Corps of Engineers’ decision to grant Transcanada a Nationwide Permit 12 (NWP 12) for construction of what’s now called the Gulf Coast Pipeline in February 2012.

Or would ecosystems suffer even greater and potentially incalculable damage from the 485-mile, 700,000 barrels per day pipeline crossing 2,227 streams?

In a 2-1 decision, the Court sided with Transcanada, and by extension, the U.S. Army Corps of Engineers. The Court ruled, “the threatened environmental injuries were outweighed by the financial harm that the injunction would cause Transcanada.”

Commenting on the case brought by Sierra Club, et al, Judge Jerome A. Holmes and Judge Paul J. Kelly, Jr. — appointees of President George W. Bush and President George H.W. Bush, respectively – shot down the arguments sharply.

Holmes and Kelly ruled that Sierra Club, et al failed to show how the pipeline will have a significant environmental impact despite the fact it’s been deemed a “fuse to the biggest carbon bomb on the planet” by retired NASA climate scientist James Hansen.

Construction of Keystone XL’s southern half — subject of significant grassroots activism by the Tar Sands Blockade and others — is now nearly complete. Tar sands dilbit is slated to begin to flow through it in early 2014.

NWP 12: “New Normal” for Tar Sands Pipeline Approval

After protestors succeeded initially in delaying Keystone XL, Big Oil has chosen a “new normal” stealth approval method: the non-transparent NWP 12.

This avoids the more strenuous National Environmental Protection Act permitting process overseen by the Environmental Protection Agency (EPA), which requires public hearings and public comments for major federal pipeline projects. NEPA compels the EPA to take comments into account in response throughout the Environmental Impact Statement phase, allowing robust public participation in the process.

Sierra Club Staff Attorney Doug Hayes explained in an interview with DeSmogBlog that NWP 12 is for utility projects with up to a half an acre of stream or wetland impacts, and has never been used for tar sands pipelines before Keystone XL’s southern half.

The southern half of the pipeline was approved via Executive Order by President Barack Obama in March 2012, directly after Obama gave a speech in front of a Cushing, OK pipeyard.

“The Corps is abusing the nationwide permit program. Nationwide permits were intended to permit categories of projects with truly minimal impacts, not tar sands oil pipelines crossing several states,” said Hayes.

Utilizing tricky legal loopholes, Transcanada used NWP 12 to push through Keystone XL’s southern half in February 2012, calling each half acre segment of Keystone XL’s southern half a “single and complete project.” The Army Corps of Engineers agreed despite the fact that Transcanada refers to the pipeline at-large as the “Gulf Coast Pipeline project.”

“What the Corps is doing is artificially dividing up these massive pipelines, treating them as thousands of individual projects to avoid environmental review,” Hayes explained. ” In this case, there were 2,227 crossings of federal waterways, so the Corps has treated the Gulf Coast Pipeline as 2,227 ‘single and complete projects,’ each of which qualifies under NWP 12.”

Why, I asked Hayes?

“The Corps artificially treats these massive pipelines as thousands of individual projects so as to qualify under NWP 12 and avoid NEPA compliance.”

NWP 12 has also been utilized by Enbridge for the Flanagan South Pipeline, a 600-mile, 600,000 barrels per day pipeline set to shuttle tar sands crude from Flanagan, IL to Cushing, OK, crossing over 2,000 streams. That pipeline is scheduled to begin operations in mid-2014, demonstrating how NWP 12 is the “new normal” way to fast-track domestic tar sands pipelines.

Dissent: Laws Violated, Economic Harm Transcanada’s Fault

Perhaps the biggest irony of the Appeals Court decision is that Judges Holmes and Kelly barely grappled with the central issue of the legal challenge to begin with: using NWP 12 rather than going through the NEPA process.

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