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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.

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Obama’s Keystone XL Trade-Off: Executive Order Expediting Everything Else

6:19 pm in Uncategorized by Steve Horn

While President Obama made a big deal out of delaying the northern half of the Keystone pipeline’s construction, he compensated by signing an executive order to expedite similar infrastructure projects everywhere else.

Cross-Posted from Mint Press News

Large segments of the environmental movement declared a win on Jan. 18, 2012, the dawn of an election year in which partisan fervor reigned supreme.

On that day President Barack Obama kicked the can down the road for permitting TransCanada’s Keystone XL pipeline’s northern half until after the then-forthcoming November 2012 presidential election.

“Northern half” is the key caveat: just two months later, on March 22, 2012 – even deeper into the weeds of an election year – President Obama issued Executive Order 13604. Among other key things, the order has an accompanying memorandum calling for an expedited review of the southern half of Keystone XL stretching from Cushing, Okla. to Port Arthur, Texas.

The day before, March 21, Obama flew on Air Force One to a pipe yard in Cushing – the “pipeline crossroads of the world” – for a special stump speech and photo-op announcing the executive order and memorandum.

Dubbed the Gulf Coast Pipeline Project by TransCanada – 95 percent complete and “open for business” in the first quarter of 2014 – the 485-mile tube will ship 700,000 barrels of tar sands crude per day from Cushing to Port Arthur, where it will then reach Gulf Coast refineries and be exported to the global market. It will eventually have the capacity to ship 830,000 barrels per day.

The subject of a large amount of grassroots resistance from groups such as Great Plains Tar Sands Resistance and the Tar Sands Blockade, the Gulf Coast Pipeline Project – when push comes to shove – is only the tip of the iceberg.

That’s because Obama’s order also called for expedited permitting and review of all domestic infrastructure projects – including but not limited to pipelines – as a reaction to the Keystone XL resistance.

A months-long Mint Press News investigation reveals the executive order wasn’t merely a symbolic gesture.

Rather, many key pipeline and oil and gas industry marketing projects are currently up for expedited review, making up for — and by far eclipsing — the capacity of Keystone XL’s northern half. The original TransCanada Keystone pipeline – as is – already directly connects to Cushing from Alberta, making XL (short for “extension line”) essentially obsolete.

Keystone XL’s northern half proposal is key for marketing oil obtained from the controversial hydraulic fracturing (“fracking”) process in North Dakota’s Bakken Shale basin.

Dubbed the Bakken Marketlink Pipeline, the segment has lost its importance with the explosive freight rail boom for moving Bakken fracked oil to market and other pipeline proposals. One of those pipelines, in fact, has received fast-track approval under the March 2012 Obama Executive Order.

Feeling the pressure from protest against the Keystone XL from groups such as the Tar Sands Action, Indigenous Environmental Network and others, Obama pulled a fast one: “wait and see” for XL’s northern half – which many claimed as a victory – and expedited approval of everything else via executive order.

Breaking down the Keystone XL executive order

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