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State Dept. Keystone XL Contractor Also OK’d Explosive, Faulty Peruvian Pipeline Project

8:08 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Macchu Pichu

The same consulting firm responsible for evaluating the Tar Sands Pipeline also worked on a troubled Peruvian project.

Environmental Resources Management (ERM), the State Department consulting firm that claims TransCanada’s proposed Keystone XL tar sands pipeline proposal is safe and sound, previously provided a similarly rosy approval for the expansion of a Peruvian natural gas project that has since racked up a disastrous track record.

On March 1, the U.S. State Department declared KXL’s proposed northern half environmentally safe and sound in its draft Supplemental Environmental Impact Statement (SEIS), part of TransCanada’s Presidential Permit application for the proposed tar sands pipeline.

KXL is a 1,179-mile tube set to blast 800,000 barrels of tar sands crude a day – also known as diluted bitumen or “dilbit” - from Alberta down to Port Arthur, TX. After it reaches Port Arthur, the crude will be sold to the highest bidder on the global export market. “XL” is shorthand for “expansion line,” named such because it would expand the marketability of tar sands crude to foreign buyers.

Because the Obama State Dept. has the final say on the project due to its crossing the Canada-U.S. border, clearing State’s EIS hurdle was crucial for TransCanada. Just days later, though, watchdogs revealed that State had outsourced the EIS out to oil and gas industry-tied consulting firms hand-picked by TransCanada itself.

One of those firms – Environmental Resources Management (ERM) Group - has historical ties to Big Tobacco; published a study declaring “safe” a Caspian Sea pipeline that ended up spilling 70,000 barrels of oil; and has a client list that includes Koch Industries, ConocoPhilips and ExxonMobil – corporations all with skin in the tar sands game. ExxonMobil’s Pegasus Pipeline recently spilled 189,000 gallons of tar sands crude into a Mayflower, Arkansas neighborhood.

An examination into the historical annals shows that ERM Group also green-lighted a major pipeline and liquefied natural gas (LNG) expansion project akin to KXL in Peru. The project in a nutshell: a 253-mile-long, 34-inch pipeline carries gas obtained from Peru’s Camisea field - located partly in the Amazon rainforest with the pipeline snaking through the Andes Mountains - to Peru’s west coast. From there, it’s exported primarily to the U.S. and Mexico.Camisea – described by Amazon Watch as the “most damaging project in the Amazon Basin“ - has created a whole host of problems. These include displacing indigenous people, clear-cutting forests that serve as a key global carbon sink to make way for the project, and major pipeline spills, to name a few.

Environmentally Sound…Except for Faulty Pipelines, Explosions

ERM performed the Environmental and Social Review Summary for Peru LNG on behalf of the International Finance Corporation (IFC), one of the tentacles of the World Bank Group. The Review lasted between Sept. 2006 and Jan. 2008.

Peru LNG, which went online in June 2010, is co-owned by an international consortium of corporations including the U.S.-based, Hunt Oil. LNG is a bit of a misnomer: the project is not only the LNG export terminal itself, but also an accompanying 253-mile pipeline carrying Camisea’s gas to Peru’s west coast and is sometimes referred to as “Camisea II.” In so doing, it traverses some of the country’s most pristine areas in the Andes and Amazon.

According to the IFC Corporation, ERM Group reviewed every aspect of the proposed project:

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

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Keystone XL Scandal: Obama State Dept. Hid Contractor’s TransCanada Ties

3:15 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

No KXL sign in front of cops

Protester at Valero HQ in DC. Activists committed acts of civil disobedience at the White House and other Tar Sands-related sites on March 21, 2013.

Mother Jones has a breaking investigation out on another scandal pertaining to the Obama State Department’s Environmental Impact Statement (EIS) for the TransCanada Keystone XL pipeline.

The skinny: the firm that DeSmogBlog revealed has historical ties to Big Tobacco and currently has a client list that includes Koch Industries, ConocoPhillips and BP, Environmental Resources Management (ERM) Group, also has a direct connection to TransCanada itself. ERM Group -DeSmog revealed - also rubber-stamped the controversial and environmentally hazardous Baku–Tbilisi–Ceyhan (BTC) Pipeline in 2003, which carries oil and gas produced in the Caspian Sea in Baku, Azerbaijan to Tbilisi, Georgia and eventually makes its way to Ceyhan, Turkey.

Andy Kroll summed it up, writing,

ERM’s second-in-command on the Keystone report, Andrew Bielakowski, had worked on three previous pipeline projects for TransCanada over seven years as an outside consultant. He also consulted on projects for ExxonMobil, BP, and ConocoPhillips, three of the Big Five oil companies that could benefit from the Keystone XL project and increased extraction of heavy crude oil taken from the Canadian tar sands.

Embarassed by this act of blatant corruption, the State Department redacted the “biographies” portion of its EIS, an overt attempted cover-up. Mother Jones  tracked down a non-redacted version, revealing the ties that bind the study to the corporation the EIS is technically supposed to stand independent of.

Bielakowski’s ties, coming full circle, are a logical next step in the story.

Brad Johnson, writing for Grist, revealed that the State Department actually allowed TransCanada to hire a contractor on its behalf. TransCanda, of course, went to a go-to-guy who can “deliver the goods.”

“Delivering the goods,” of course, has little to do with delivering good science and is yet another act of deploying the Tobacco Playbook: make a one-sided scientific debate a farcical two-sided one.

Last time around the block, the State Department pulled the same trick, contracting the EIS out to Cardno Entrix, a contractor which lists TransCanada as one of its clients. Flying in the face of reality, a State Department Inspector General report concluded there was no evidence of conflict of interest or bias in the State Department’s review.

The Keystone XL will carry tar sands crude – also known as diluted bitumen or “dilbit” – from the Alberta tar sands project down to refineries in Port Arthur, TX. From there, it will be shipped to the global market. The export pipeline facts on the ground fly in the face of Big Oil’s often-deployed “gaining energy independence” charm offensive.

A final decision by President Obama and Sec. of State John Kerry is expected on the Keystone XL Pipeline in the next few months.

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