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Recent Federal Court Decision Could Muddy Waters for Keystone XL South, Flanagan South

2:20 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

The case depicts a collision between long-standing principles of environmental law and President Barack Obama’s March 2012 Executive Order expediting pipeline reviews — an order issued six days after delivering a speech in front of the pipe segments that would two years later be pieced together as Keystone XL South, now open for business.

On June 6, the U.S. Court of Appeals for the District of Columbia Circuit handed down a ruling that will serve as important precedent for the ongoing federal legal battles over the Keystone XL and Flanagan South tar sands pipelines.

In the Delaware Riverkeeper v. Federal Energy Regulatory Commission (FERC) case, judges ruled that a continuous pipeline project cannot be segmented into multiple parts to avoid a comprehensive National Environmental Policy Act (NEPA) review. This is what Kinder Morgan proposed and did for its Northeast Upgrade Project.

As reported on DeSmogBlog, the U.S. Army Corps of Engineers did the same thing to streamline permitting for both the southern leg of TransCanada’s Keystone XL and Enbridge’s Flanagan South. Sierra Club and co-plaintiffs were denied injunctions for both pipelines in October and November 2013, respectively.

Delaware Riverkeeper v. FERC dealt with breaking up a new 40-mile long pipeline upgrade into four segments. For the other two cases, the Army Corps of Engineers shape-shifted the two projects — both hundreds of miles long each — into thousands of “single and complete” projects for permitting purposes.

On the day of the Delaware Riverkeeper v. FERC decision, Sierra Club attorney Doug Hayes submitted the case as supplemental authority for the ongoing Flanagan South case.

On May 5, Hayes also submitted paperwork to appeal the Keystone XL Southdecision in front of the U.S. Court of Appeals for the Tenth Circuit, which was docketed by the clerk of Ccurt the next day.

Hayes told DeSmogBlog his side will file an opening brief for the appeal on July 30. It seems likely Delaware Riverkeeper v. FERC will be a key part of that appeal.

In a sign of the importance of the outcome for the oil and gas industry, theAmerican Petroleum Institute (API) entered the Sierra Club v. Army Corps of Engineers case on Keystone XL as an intervenor on May 16, represented by corporate law firm Hunton & Williams.

At the federal level, Hunton & Williams lobbies on behalf of Koch Industries, a company with a major stake in tar sands leases and refining.

“No Uncertain Terms”

Hayes told DeSmogBlog that Delaware Riverkeeper v. FERC could prove a game-changer for the Keystone XL southern leg (now dubbed the Gulf Coast Pipeline Project) appeal, the Flanagan South decision and far beyond.

“Delaware Riverkeeper is important in many respects,” Hayes said. “In general, the D.C. Circuit is considered the second most powerful court in the country and here it held, in no uncertain terms, that agencies must analyze all parts of these interrelated projects under NEPA to get the full picture of the environmental impacts.”

The case depicts a collision between long-standing principles of environmental law and President Barack Obama’s March 2012 Executive Order expediting pipeline reviews — an order issued six days after delivering a speech in front of the pipe segments that would two years later be pieced together as Keystone XL South, now open for business.

Executive Order 13604

Executive Order 13604, signed on March 28, 2012, said “agencies shall…coordinate and expedite their reviews…as necessary to expedite decisions related to domestic pipeline infrastructure projects that would contribute to a more efficient domestic pipeline system for the transportation of crude oil.”

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Silent Coup: How Enbridge is Quietly Cloning the Keystone XL Tar Sands Pipeline

10:48 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog 

A Canadian flag dripping with oil

Despite activist opposition, “pipeline giant Enbridge has quietly cloned its own Keystone XL in the U.S and Canada.”

While the debate over the TransCanada Keystone XL tar sands pipeline has raged on for over half a decade, pipeline giant Enbridge has quietly cloned its own Keystone XL in the U.S and Canada.

It comes in the form of the combination of Enbridge’s Alberta Clipper (Line 67), Flanagan South and Seaway Twin pipelines.

The pipeline system does what Keystone XL and the Keystone Pipeline System at large is designed to do: ship hundreds of thousands of barrels per day of Alberta’s tar sands diluted bitumen (“dilbit”) to both Gulf Coast refineries in Port Arthur, Texas, and the global export market.

Alberta Clipper and Line 67 expansion

Alberta Clipper was approved by President Barack Obama and the U.S. State Department (legally required because it is a border-crossing pipeline like KeystoneXL) in August 2009 during congressional recess. Clipper runs from Alberta to Superior, Wis.

Initially slated to carry 450,000 barrels per day of dilbit to market, Enbridge now seeks an expansion permit from the State Department to carry up to 570,000 barrels per day, with a designed capacity of 800,000 barrels per day. It has dubbed the expansion Line 67.

As reported on previously by DeSmogBlog, Line 67 is the key connecter pipeline to Line 6A, which feeds into the BP Whiting refinery located near Chicago, Ill., in Whiting, Ind. BP Whiting — the largest in-land refinery in the U.S. — was recently retooled to refine larger amounts of tar sands under the Whiting Refinery Modernization Project. 

Line 67 also connects to Line 61 via a fork in the road of sorts in Wisconsin. From there, it heads to Flanagan, Ill., the namesake of the start of Enbridge’s Flanagan South pipeline.

Like Keystone XL, Enbridge’s Line 67 expansion project has faced unexpected delays in its State Department and Obama Administration review process.

Flanagan South also shares a key legal commonality with TransCanada’s Keystone pipeline system.

That is, like Phase II and Phase III of that system — best known to the general public as Keystone XL’s southern leg and to TransCanada as the Gulf Coast Pipeline Project — it was permitted by the U.S. Army Corps of Engineers using the controversial Nationwide Permit 12 (NWP 12) process.

As documented here on DeSmogBlog, the southern leg of Keystone XL and Flanagan South both played a central role in separate but related precedent-setting federal-level court cases.

In reviewing the legality of approval via NWP 12 through the lens of “harms,” the courts ruled in both cases that the harms of losing corporate profits for both Enbridge and TransCanada trump the potential harms of ecological damage the pipelines could cause in the future. Climate change went undiscussed in both rulings.

According to a May 2014 company newsletter, Enbridge is “on schedule to put [Flanagan South] in operation later this year.”

“After eight months of construction, we are now in the home stretch for the nearly 600-mile pipeline project,” touts the newsletter. “At the peak of construction, between October 2013 and January 2014, there were on average 3,650 construction workers over the entire route — about 1,600 of those workers from communities located along the pipeline route.”

Seaway Pipeline

In a June 16 article titled, “Blame Canada,” Reuters pointed to two new “pipes set to hit U.S. Gulf with heavy crude,” which — as it pertains to Canada — is industry vernacular for tar sands.

Flanagan South was one of the pipelines pointed to in the Reuters piece.

The other is Enbridge’s Seaway Twin pipeline, co-owned on a 50/50 joint venture basis with Enterprise Products Partners. Seaway Twin, like Keystone XL’s southern leg, runs from Cushing, Okla., to Port Arthur, Texas.

Enbridge scheduled Line 67 to go on-line in mid-2014 and reach full-capacity by mid-2015.

But, because of backlash against the proposal from environmentalists and citizens who live along the pipeline expansion’s route, the company does not expect to receive a State Department expansion permit until mid-2015.

Flanagan South Pipeline

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Commander Behind Bin Laden Killing: FBI/DHS Wasting Time Tracking Environmentalists

12:45 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Dave Cooper, Command Master Chief SEAL (Retired) for the Naval Special Warfare Development Group (DEVGRU), has authored a threat assessment concluding TransCanada‘s Keystone XL tar sands pipeline is potentially at-risk of a terrorism attack.

No Tar Sands banner

A new report on terrorism concludes Feds need to stop wasting their time on activists.

In the report, Cooper concluded operational security vulnerabilities for the pipeline have been overlooked by the U.S. government. Cooper —  most famous for overseeing the Abbottabad, Pakistan Osama Bin Laden raid as the commander of Navy Seal Team Six — wrote the report as a consultant for billionaire Tom Steyer‘s advocacy group NextGen Climate Action.

“The very nature of Keystone XL’s newsworthiness, should it ever be built, increases its attractiveness as a target to terrorists: Keystone XL, aside from being a ‘soft’ target just like any other pipeline, has a built-in emotional impact that can’t be denied or wished away,” he wrote in the report’s introduction.

“That simple fact, a newsworthy proposal that engenders strong passions, should clue in pipeline owners and government officials to the very real possibility of intentional attack.”

For the report, Cooper utilized a “red cell” methodology, parlance for U.S. special operations forces performing pre-mission reconnaissance, using open source data readily available to terrorists on the internet. In so doing, the special operations forces snuff out operational security (“OpSec” in military lingo) weaknesses, which they use as actionable intelligence in defense missions.

In the report, Cooper explained he “designed [the methodology this way] to showcase weaknesses in the current reality by exploiting the same information to which an outside terrorist group would have access.”

Cooper’s probe included a due diligence trip out to three redacted Great Plains locations*, where Phase I of the Keystone Pipeline System is currently operational (the northern leg of Keystone XL is Phase IV). Going out into the field, Cooper came away shocked by his discoveries.

His findings raise a troubling question: have real Keystone XL terrorism threats been ignored, while non-violent activists have been labeled potential eco-terrorists? Cooper offered his take on this question to DeSmogBlog.

“No Sight” of Active Security Program

Cooper said he mapped out his entire Nebraska trip by using a maps of the Keystone Pipeline System he found online.

“In military parlance, the site visit at [redacted] was a ‘cold shot,’ done with no advance preparation or planning, using only information and intelligence gathered from publicly available sources,” wrote Cooper.

“[redacted] was selected because it has both a valve and pumping station for the operational Keystone 1, it is somewhat near Keystone XL’s route, and it is roughly similar to the proposed Keystone XL – with presumably the same level of security as the proposed pipeline.”

Once on the ground, Cooper found absolutely nothing indicating an active security program.

“I was able to freely approach, then stand at a Keystone 1 pump station for over 15 minutes snapping photos,” he wrote. “I was not approached, questioned or even noticed at any point.”

Cooper concluded that in a worst case scenario, a dozen terrorists could cause a seven million gallon spill by attacking the pipeline at three points. And that’s if TransCanada were to have perfect execution of shut-down protocol.

KXL and FBI/DHS Fusion Centers

In concluding his report, Cooper pays homage to domestic intelligence agencies for practicing predictive policing.

“This assessment also cannot speak for the innumerable and valiant efforts of our intelligence agencies, those who strive daily to defeat terrorists ‘upstream’ before they can actually act on their designs,” wrote Cooper. “Their persistent actions in our defense could very well thwart any such pipeline attack during the terrorists’ observation, orientation and decision phases.”

DeSmogBlog has reported on these predictive policing efforts as it pertains to Keystone XL. And the results, put mildly, haven’t been pretty.

Documents obtained by Bold Nebraska and reported on here in June 2013 revealed TransCanada and the Nebraska-based Department of Homeland Security (DHS)/U.S. Federal Bureau of Investigations (FBI) Fusion Center labeled non-violent activists as possible candidates for terrorism charges and other serious criminal charges.

This tension existing between protecting national security and protecting civil liberties brings ire to Shahid Buttar, executive director for the Bill of Rights Defense Committee.

“Throughout the 1990s, the principal targets of US counter-terror investigations were environmental activists who planned non-violent acts,” he told DeSmogBlog.

“If the northern leg of Keystone XL pipeline becomes operational, the security concerns of fossil fuel companies could be used once again, like they were in Pennsylvania only a few years ago, to justify government intelligence agencies undermining the constitutional rights of environmentalists to peacefully organize and dissent.”

Asked about these concerns by DeSmogBlog, Cooper agreed with Buttar.

“The focus on protesters and activists is somewhat shortsighted,” he said. “It’s not like activism is a gateway drug to terrorism and it amounts to profiling (like racial profiling). Just following around protesters or activists isn’t the answer. What you see is all there is.”

“An activist’s intentions typically revolve around disobedience in all its forms. While most might get arrested, it’s typically for stuff like trespassing. A real mean bunch!”

A recent historical case study and parallel is also instructive and sobering.

The Boston-based FBI/DHS Fusion Center poured massive amounts of resources into monitoring Occupy Boston activists rather than the would-be Boston Marathon bombers, as revealed in a May 2013 investigative report published by NBC News.

Mr. Cooper Goes to Washington

According to an article appearing in National Journal, Cooper has already presented his findings to both U.S. Sen. Barbara Boxer (D-CA) U.S. Sen. Martin Heinrich (D-NM).

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For First Time, TransCanada Says Tar Sands Flowing to Gulf in Keystone XL South

11:56 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog 

TransCanada admitted for the first time that tar sands oil is now flowing through Keystone XL‘s southern leg, now rebranded the Gulf Coast Pipeline Project. The company confirmed the pipeline activity in its 2014 quarter one earnings call.

Asked by Argus Media reporter Iris Kuo how much of the current 300,000-400,000 barrels per day of oil flowing from the Cushing, Oklahoma to Port Arthur, Texas pipeline is tar sands (“heavy crude,” in industry lingo), TransCanada CEO Russ Girling confirmed what many had already suspected.

“I don’t have that exact mix, but it does have the ability to take the domestic lights as well as any heavies that find a way down to the Cushing market, so it is a combination of the heavies and the lights,” said Girling. “I just don’t know what the percentage is.”

The Keystone Pipeline System — of which Keystone XL’s northern leg is phase four of four phases — is and always has been slated to carry Alberta’s tar sands to targeted markets. So the announcement is far from a shocker.

More perplexing is why it took so long for the company to tell the public that tar sands oil now flows through the half of the pipeline approved via a March 2012 Executive Order by President Barack Obama.

“Oil is Oil”

When DeSmogBlog reported TransCanada had begun injecting oil into the pipeline’s southern leg in December, the company would not reveal what type of oil it was.

“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,” TransCanada spokesman Shawn Howard told DeSmogblog at the time.

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.

Now, though, it appears the company has let the proverbial cat out of the bag.

“Texas Bound and Flyin’”

In the first quarter of 2014, Keystone XL’s southern half has opened up the floodgates for what was once a glut of oil in Cushing to reach Gulf Coast refineries at record levels.

To borrow the title of Jerry Reed’s 1980 country song classic, it’s “Texas Bound and Flyin.’” An April 17 Energy Information Agency communiqué lays out the dirty details.

“The main driver of the recent crude oil inventory builds on the [Gulf Coast] is start-up of TransCanada’s [Gulf Coast Pipeline] which runs from the Cushing, Oklahoma storage hub to the Houston area,” explained the EIA. “In late January, TransCanada completed the first delivery of crude oil via [Gulf Coast Pipeline] to [Gulf Coast] refineries.”

In short, the glut of oil has teleported from Cushing to Texas in the aftermath ofKeystone XL’s southern leg opening for business in January, as explained in another EIA March 27 update.

“Crude oil inventories at Cushing, Oklahoma, the primary crude oil storage location in the United States, decreased 13 million barrels (32%) over the past two months,” the EIA wrote. “On March 21, Cushing inventories were less than 29 million barrels, more than 20 million barrels lower than a year ago.”

Northern Leg and Rail

Keystone XL’s northern leg, or what many know simply as Keystone XL, also came up on the earnings call.

Girling voiced frustration with how long the process has taken and with President Obama’s April 18 announcement to delay a decision on the northern leg until after the 2014 mid-term elections.

“In our view this delay is inexplicable. The first leg of our Keystone system took just over 600 days to review and approve,” said Girling. “Now after more than 2,000 days, five exhaustive environmental reviews and over 17,000 cases of scientific data, the review process continues to be delayed.”

The prospect of moving tar sands oil by rail to Cushing was also discussed on the call.

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Explosive Virginia Train Carried Fracked Bakken Oil, Headed to Potential Export Facility

10:34 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Platts confirmed CSX Corporation’s train that exploded in Lynchburg, Virginia was carrying sweet crude obtained via hydraulic fracturing (“fracking”) in North Dakota’s Bakken Shale basin. CSXCEO Michael Ward has also confirmed this to Bloomberg.

“Trade sources said the train was carrying Bakken crude from North Dakota and was headed to Plains All American’s terminal in Yorktown,”Platts explained. “The Yorktown facility can unload 130,000 b/d of crude and is located on the site of Plains oil product terminal.”

In January, the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration issued a Safety Alert concluding Bakken crude is more flammable than heavier oils. Hence the term “bomb trains.”

At least 50,000 gallons of the oil headed to Yorktown is now missing, according to ABC 13 in Lynchburg. Some of it has spilled into the James River, as previously reported on DeSmogBlog.

map available on CSX’s website displaying the routes for its crude-by-rail trains offers a clear indication of where the train was headed.

Formerly a refinery owned by Standard Oil and then BP/Amoco, Plains All American has turned the Yorktown refinery into a mega holding facility.

Yorktown may become a key future site for crude oil exports if the ban on exports of oil produced domestically in the U.S. is lifted.

Yorktown: Future Oil Export Mecca?

In February, Plains CEO Greg Armstrong said on the company’s quarter four earnings call that Yorktown is ideally situated geographically to become an oil export mecca if the ban is lifted.

When asked by an analyst from Bank of America about the ongoing debate over lifting the crude oil export ban, Armstrong discussed how Plains could stand to profit from exports.

“Ultimately we’re positioned, we think well for either answer if they allow blanket exports we have assets in the right places that can help build that market niche,” said Anderson.

Harry Pefanis, President and COO for Plains, sang a similar tune to Anderson.

“I guess if I also just add to that if there was export…we’ve got couple of locations that we could load ocean-going vessels. Yorktown is a location where we can rail-in and load out an ocean-going vessel,” Pefanis explained.

The industry lobbying effort to lift the U.S.-produced oil export ban has picked up major steam in 2014, with the geopolitical crisis in Ukraine and Russia serving as the hook.

Keystone XL Connection

It’s only a matter of time until the familiar oil industry overture begins. That is, pointing to the Lynchburg disaster as the reason why the northern leg of TransCanada’s Keystone XL tar sands pipeline must be built.

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TransCanada Charitable Fund: Keystone XL South “Good Neighbor” Charm Offensive

1:40 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

No KXL sign in front of cops

TransCanada is trying to bribe its way to success, but is anyone buying?

TransCanada has taken a page out of former U.S. President Franklin Delano Roosevelt’s playbook and deployed a public relations “charm offensive” in Texas, home of the southern leg of its Keystone XL tar sands pipeline now known as the Gulf Coast Pipeline Project.

In the 1930s and 1940s, Roosevelt utilized a “good neighbor policy“ — conceptualized today as “soft power” by U.S. foreign policy practitioners — to curry favor in Latin America and win over its public. Recently, TransCanada announced it would do something similar in Texas with its newly formed TransCanada Charitable Fund.

TransCanada has pledged $125,000 to 18 Texas counties over the next four years, funds it channeled through the East Texas Communities Foundation. In February, the company announced the first non-profit recipients of its initial $50,000 grant cycle.

“The fund is designed to help improve East Texas communities and the lives of their residents through grants to qualifying non-profit organizations in the counties where TransCanada pipeline operations and projects exist,” explained a press release. “All funded projects and programs fall within three charitable categories: community, safety, and the environment.”

TransCanada utilizes the “good neighbor” language in deploying its own public relations pitch.

“At TransCanada, being a good neighbor and contributing to communities is an integral part of our success,” TransCanada’s Corey Goulet said in a press release. “The establishment of the fund is another example of our commitment to long-term community investment and our dedication to the people of East Texas.”

Fund Launched After Safety Issues Revealed

Less than a week after Public Citizen published its November 2013 report addressing safety issues discovered during the construction phase of KeystoneXL’s southern leg, TransCanada announced the launch of its charitable fund.

Public Citizen‘s report, “Construction Problems Raise Questions About the Integrity of the Pipeline,” found 250 miles of the pipelines’ 485-mile route had faulty welding, dents and several parts patched up, among other anomalies.

Julia Trigg Crawford, a Lamar County resident (one of the counties eligible for TransCanada’s grants) best known as the landowner who filed a major eminent domain lawsuit against TransCanada for Keystone XL South, told DeSmogBlog she believes the timing of the fund’s launch is suspect.

“Texans are smart enough to see what’s going on here,” Crawford said.

“Before the heat got turned up with the Public Citizen report, TransCanada’s community involvement consisted of half-page newspaper ads across Northeast Texas saying, ‘We want to be more than just a pipeline company. We want to be a trusted neighbor.’”

Environment and Safety Grants

Despite the concerns about the ecological impacts and safety issues related to Keystone XL’s southern half (or perhaps because of them), environment and safety are two of the categories TransCanada will give grants to out of the fund.

Safety grant “projects will enable emergency personnel to respond quickly and effectively to local needs and focus on emergency preparedness, accident prevention, and education and training,” says TransCanada on its grant application form, while environment grant “programs will conserve important habitat, protect species at risk, and educate individuals about the importance of the environment.”

Non-profits are eligible for grants of up to $5,000.

Not Charming, Rather Offensive

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Mayflower: 1st ExxonMobil Tar Sands Pipeline Spill, Now Deadly Tornado Destroys Arkansas Town

6:53 pm in Uncategorized by Steve Horn

 

Cross-Posted from DeSmogBlog

On March 29, 2013, ExxonMobil‘s Pegasus tar sands pipeline ruptured in Mayflower, Arkansas, sending hundreds of thousands of gallons of diluted bitumen (“dilbit”) pouring down the town’s streets.

Now, just over a year after the massive spill, devastation has come to Mayflower and neighboring towns again, this time in the form of a lethal tornado. On the evening of April 27, the twister destroyed huge pockets of the town of just over 2,300 citizens in a wholesale manner, with 14 confirmed dead and likely many more still not counted.

“Sadly, we don’t expect it to stay at 14,” tweeted Arkansas Governor Mike Beebe. At least 10 died in Faulkner County alone, which houses Mayflower, according to the Arkansas Department of Emergency Management.

The National Weather Service in Little Rock has given the tornado that hit Mayflower an EF-3 rating on a preliminary basis. EF3 (the highest rating is anEF5) equates to 136–165 mile per hour winds and KATV weatherman Todd Yakoubian tweeted that National Weather Service will have its final rating in by April 30.

On the whole, Arkansas Geographic Information Office has reported that 3,200 addresses in Faulkner County have had various levels of impact.

Fate of Pegasus Pipeline Spill Neighborhoods

According to Mayflower resident Genieve Long, the iconic Mayflower Pegasus pipeline spill cul-de-sac where oil flowed through residents’ backyards and into the streets, was spared.

But the RVs located by the cove connected to Lake Conway — where tar sands oil spilled in the aftermath of the ExxonMobil pipeline rupture and became a key part of an ongoing class action lawsuit — were not so lucky.

Just before she was forced to shower at a truck stop because there is currently no water or electricity in Mayflower, Long told DeSmogBlog “the RVs located along the cove were all taken out.”

A picture tracked down on Twitter by DeSmogBlog testifies to this damage.

Oil and Gas Infrastructure Damage

Soon after the tornado touched ground, gas utilities giant CenterPoint Energyreported gas leaks out of its infrastructure in the area.

“Our company technicians worked primarily in Mayflower and Vilonia to secure nearly 100 natural gas leaks caused primarily by uprooted trees,” Greg Strickland, CenterPoint’s manager in the area said in a press release. “Today we will continue to perform leak surveys in the area to ensure the safety of our customers and our distribution system.”

Another gas utilities giant, Entergy, also reported major infrastructure damage in the area.

“[The] Mayflower 500kv high voltage yard…no longer [has] any switches or breakers left after tornado’s path of destruction,” Entergy wrote on Facebook.

Entergy also explained that “There are lines and poles scattered everywhere in the path of [the] tornado.”

Climate Change Connection? Sort Of

How about climate change? Was this gargantuan tornado tied to climate change in any way, shape or form?

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Earth Day Greenwash: API Front Group Iowa Energy Forum Sponsors Pro-Keystone XL Event

4:30 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

The political carnival that is the prelude to the Iowa caucuses has started over a year and a half early. At the center of it this time around: a game of political hot potato over the northern leg of TransCanada‘s Keystone XL tar sands pipeline.

Official Portrait of General Jones

General James Jones has become an energy industry shill.

American Petroleum Institute (API) deployed one of its paid consultants — former Obama Administration National Security Advisor General James “Jim” Jones — to deliver an Earth Day address in the home state of the presidential caucuses at Drake University in Des Moines, Iowa.

James Jones used his time on the podium to promote the Keystone XL tar sands pipeline, which another James — retired NASA climatologist James Hansen — once called a “fuse to the biggest carbon bomb on the planet.”

“General James Jones…will discuss the benefits of the pipeline initiative, including more jobs, less dependence on foreign oil, and cheaper energy costs for Americans,” explained an April 15 Drake University press release promoting the event.

Days after the Obama Administration decided to delay making a decision on Keystone XL North until after the 2014 mid-term elections, API went on the offensive, with Jones acting as the group’s surrogate.

API is using one of its numerous front groups that could factor most prominently during election season: the Iowa Energy Forum, chief sponsor and organizer of the event titled, “The Pipeline to National Security Discussion.”

Iowa Energy Forum is part of API’s broader astroturf campaign called “America’s Energy Forum,” the privacy policy on its website reveals. In tiny print at the bottom of the Iowa Energy Forum website, it also says, “Sponsored by American Petroleum Institute.”

API paid the powerful Des Moines-based public relations (PR) firm LS2group to help them promote the Earth Day event.

An April 17 press release published in Des Moines’ Business Record lists Matt Bierl of LS2group as the contact person. And a glance at the guest list for the Facebook event page for Drake University event shows eight of the 22 attendees work at LS2group.

LS2group and the 2012 Elections

Mark Twain once quipped, “History doesn’t repeat itself, but it does rhyme.”

In that vein, rewind back to 2012 and the activities by Iowa Energy Forum before the Iowa caucuses, with PR efforts overseen by LS2group.

Among other things, former Minnesota Republican Governor Tim Pawlenty — who ran for president in the 2012 GOP primaries — had two campaign advisers that wore two hats, Charles Larson Jr. and Karen Slifka. Both of them also worked for LS2group in the run-up to the Iowa caucuses, where they work full-time now.

Both Larson and Slifka denied they were coordinating Iowa Energy Forum’s agenda with the Pawlenty campaign in an interview with The Des Moines Register. But evidence suggests otherwise.

“An air-conditioned ‘igloo’ paid for by the Iowa Energy Forum will rise up from the straw poll campus in Ames next month, an attraction meant to woo Iowans’ affection with free treats, kids’ rides and displays about energy technology,” explained an article in The Des Moines Register. “The Republican Party of Iowa has received $100,000 from the organization.”

Drake Students Protest Event

In response to Jones’ jaunt to campus, Drake University students held a protest outside of his speaking engagement.

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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 →

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 →