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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

Read the rest of this entry →

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).

Read the rest of this entry →

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.

Read the rest of this entry →

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.

Read the rest of this entry →

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?

Read the rest of this entry →

Dollarocracy: U.S. Congressmen Refuse to Address Keystone XL Southern Half Spill Concerns

2:00 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog  

What’s the U.S. congressional response to the safety issues with the 485-mile southern half of TransCanada‘s Keystone XL pipeline raised by Public Citizen‘s Texas office? Mostly what Simon & Garfunkel called “The Sound of Silence” in their famous song.

DeSmogBlog contacted more than three dozen members of the U.S. Congress representing both political parties to get their take on Public Citizen’s alarming findings in its November investigation (including dents, metal that had to be patched up and pipeline segments labeled “junk”), but got little in the way of substantive responses.

Set to open for business on January 22approved via an Executive Order by President Barack Obama in March 2012 and rebranded the “Gulf Coast Pipeline Project” by TransCanada, the southern half of the pipeline has garnered far less media coverage than its U.S.-Canada border-crossing brother to the north, Keystone XL‘s northern half.

Over two dozen members of the U.S. House of Representatives wrote a letter to President Obama on December 12 expressing concern over the conflicts-of-interest in the U.S. State Department’s environmental review process for the northern half of the line.

But none of them would comment on concerns with the southern half of the line raised in the Public Citizen report after multiple queries via e-mail from DeSmogBlog.

Two to Tango

Only two out the dozens contacted offered somewhat substantive comments.

And one of them, U.S. Rep. Ralph Hall (R-TX) (Left), did not respond to the meat and bones of the question at hand. He did offer some oft-used industry talking points, though.

“The Keystone pipeline will create jobs and help reduce dependence on oil supplies from unfriendly nations,” Hall told DeSmogBlog. ”The State of Texas has a proven track record of successful oversight of the oil and gas industry, including pipelines, and I am confident that they will be diligent in ensuring the pipeline’s safety.”

Hall — who took $59,500 from the oil and gas industry before the 2012 elections and has already taken $12,500 for the upcoming 2014 elections — is far from a neutral stakeholder in the debate over anything pertaining to the petroleum industry.

“Since 2010, Hall has earned as much as $1 million from a company that holds mineral rights along the Barnett Shale,” explained a March 2013 Sunlight Foundation article. “The money was disclosed as dividends from a company called North & East Trading Co. (N&E).”

On the other side of the aisle, U.S. Rep. Gene Green (D-TX) (Right) also responded toDeSmogBlog‘s request for comment, offering more cautious words of support for the southern half of the pipeline’s commencement.

“Over the past decades, our interstate and intrastate pipeline systems have had remarkable safety records, unmatched by rail or highway modes of transportation,” Green stated. Read the rest of this entry →

Keystone XL Fork in the Road: TransCanada’s Houston Lateral Pipeline

1:49 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Houston Refinery at night

The southern leg of the Keystone XL pipeline is scheduled to bring oil & tarsands to Houston’s refineries starting in January.

Only Barack Obama knows the fate of the northern half of TransCanada’s Keystone XL tar sands pipeline.  But in the meantime, TransCanada is preparing the southern half of the line to open forcommercial operations on January 22.

And there’s a fork in that half of the pipeline that’s largely flown under the radar: TransCanada’s Houston Lateral Pipeline, which serves as a literal fork in the road of the southern half of Keystone XL’s route to Gulf Coast refineries.

Rebranded the “Gulf Coast Pipeline” by TransCanada, the 485-mile southern halfof Keystone XL brings a blend of Alberta’s tar sands crude, along with oil obtained via hydraulic fracturing (“fracking”) from North Dakota’s Bakken Shale basin, to refineries in Port Arthur, Texas. This area has been coined a “sacrifice zone” by investigative journalist Ted Genoways, describing the impacts on local communities as the tar sands crude is refined mainly for export markets.

But not all tar sands and fracked oil roads lead to Port Arthur. That’s where the Houston Lateral comes into play. A pipeline oriented westward from Liberty County, TX rather than eastward to Port Arthur, Houston Lateral ushers crude oil to Houston’s refinery row.

“The 48-mile (77-kilometre) Houston Lateral Project is an additional project under development to transport oil to refineries in the Houston, TX marketplace,” TransCanada’s website explains. “Upon completion, the Gulf Coast Project and the Houston Lateral Project will become an integrated component of the Keystone Pipeline System.”

Boon for Houston’s Refinery Row

Houston’s LyondellBasell refinery is retooling itself for the looming feast of tar sands crude and fracked oil bounty that awaits from the Houston Lateral’s completion.

“The company is spending $50 million to nearly triple its capacity to run heavy Canadian crude at the Houston refinery, to 175,000 bpd from 60,000 bpd,”explained a March article in Reuters.

LyondellBasell admits TransCanada’s Houston Lateral project is a lifeline ensuring its Houston refinery remains a profitable asset.

“Over time, heavy Canadian oil is going to be extremely important to this refinery,” the company’s spokesman David Harpole said in a February interview with Bloomberg. “It’s not all getting down there today but as time goes on, that will become more and more powerful to an asset like we have.”

But LyondellBasell’s not the only company with skin in the game. Valero — whose refining capacity is currently overflowing with fracked Eagle Ford shale oil — is also considering expanding its capacity to refine more tar sands crude.

Not “What If,” But “Right Now”

A financially lucrative asset to refining companies like LyondellBasell and Valero, Houston’s refineries are an issue of life or death for those living within the vicinity.

“In a December 2010 report, the Sierra Club linked tar sands refinery emissions to prenatal brain damage, asthma and emphysema,” a March Huffington Post article explained. “A recent Houston-area study found a 56 percent increased risk of acute lymphocytic leukemia among children living within two miles of the Houston Ship Channel, compared with children living more than 10 miles from the channel.”

Like Port Arthur, Houston — the headquarters for some of the biggest oil and gas companies in the world — is a major “sacrifice zone” for front-line communities, with many people suffering health impacts from the city’s four petrochemical refineries.

“Much of the debate around the Keystone XL pipeline has focused on the dangers of extracting and transporting the tar sands,” DeSmogBlog contributor Caroline Selle wrote in a May 2013 article. “Left out, however, are those in the United States who are guaranteed to feel the impacts of increased tar sands usage. Spill or no spill, anyone living near a tar sands refinery will bear the burden of the refining process.”

With Keystone XL’s southern half currently being injected with oil and with TransCanada counting down the weeks until it opens for commercial operations, those living in front-line refinery neighborhoods face a daunting “survival of the fittest” task ahead.

“With toxic chemical exposure nearly certain, it is unclear what the next step will be for residents [living in refinery neighborhoods],” Selle wrote in her May article. “[T]his is a life or death struggle more immediate than the ‘what-if’ of a pipeline spill. And it’s not a ‘what-if, [but rather] the fight is ‘right now.’”

Read the rest of this entry →

Pipeline Safety Agency Approves Startup of Keystone XL South

6:53 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

No Tar Sands banner

Despite serious safety concerns and months of protests, Keystone XL South is approved for tarsands.

DeSmogBlog has learned that TransCanada cleared the final hurdle for the southern half of its Keystone XL tar sands pipeline, receiving a green light last week from the Pipeline and Hazardous Materials Safety Administration (PHMSA) following a review of several safety concerns.

TransCanada announced this week that it has begun injecting oil into the southern half of its Keystone XL pipeline in preparation for commercial operations.

Leading up to PHMSA giving Keystone XL south the go-ahead to start up, Public Citizen raised several questions about the safety of the pipeline.

Will TransCanada respond to greivances raised about dents, faulty welding, pipeline material designated “junk” and other issues raised in the consumer advocacy group’s November investigation? And what about September 10 and September 26 warning letters obtained by Public Citizen raising similar concerns from PHMSA to TransCanada?

Both TransCanada and PHMSA have provided DeSmogBlog answers to these questions.

Rebranded the “Gulf Coast Pipeline Project” by TransCanada, the 485-mile Cushing, Oklahoma to Port Arthur, Texas Keystone XL southern half — approved via a March 2012 Executive Order from President Barack Obama — is set to open for business by mid- to late-January.

PHMSA’s Initial Concerns

In September, PHMSA drafted two letters to TransCanada expressing concerns over the integrity of the pipeline during its construction phase.

“During the months of June and July 2013, a representative [from PHMSA]…inspected the construction of the Keystone Gulf Coast Project,” reads a September 10 warning letter from R.M. Seeley, Director of PHMSA’s Southwest Region Office to TransCanada’s Vice President Pipeline Safety and Compliance, Vern Meier. “As a result of the inspection, it appears you have probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations.”

PHMSA’s September 10 warning letter said TransCanada had done a suboptimal job installing Keystone XL’s southern half, also writing that the coating utilized for Keystone XL’s southern half could easily degrade over time in the September 10 letter.

Two weeks later, PHMSA sent another warning letter to TransCanada on September 26, calling out TransCanada on its poor welding procedures. PHMSA could fine TransCanada up to $2 million, along with additional enforcement actions, if the company had failed to comply with PHMSA’s dictates outlined in both warning letters.

PHMSA Delays FOIA Response

After playing the “bad cop” role in its two September letters to TransCanada, PHMSA’s Southwest Office has backed off a bit.

In response to a FOIA request submitted by Public Citizen upon learning of the two September letters, PHMSA responded that, due to commercial reasons and the possibility of an ongoing investigation, Public Citizen will likely not be eligible for many of the records requested.

PHMSA Gives KXL South Green Light

TransCanada spokesman Shawn Howard told DeSmogBlog he believes all is safe and sound with Keystone XL’s southern half.

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 →

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.