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After Oregon Rejects Coal Export Plan, Long Beach Votes to Export Coal and PetKoch

1:33 pm in Uncategorized by Steve Horn

Flag against a blue sky: Green Port Long Beach

The “Green” Port of Long Beach will now export millions of tons of pollutants per year.

Just a day after the Oregon Department of State Lands shot down a proposal to export 8.8 million tons per year of coal to Asia from the Port of Morrow in Boardman, Oregon, the Long Beach City Council achieved the opposite.

In a 9-0 vote, the Council voted “yay” to export both coal and petroleum coke (petcoke, a tar sands by-product) to the global market — namely Asia — out of Pier G to the tune of 1.7 million tons per year. Some have decried petcoke as “dirtier than the dirtiest fuel.“

More specifically, the Council determined that doing an environmental impact statement before shipping the coal and petcoke abroad was not even necessary.

decision originally made in June and then appealed by Earthjustice on behalf of the Sierra Club, Natural Resources Defense Council (NRDC) and Communities for a Better Environment, the Council shot down the appeal at an August 19 hearing.

“We are very disappointed about the decision, but that does not diminish the amazing victory in Oregon,” Earthjustice attorney Adrian Martinez said in a statement provided to DeSmogBlog via email. “The decision in Long Beach just highlights the grasp that the fossil fuel industry has on the City’s leaders.”

The Earthjustice legal challenge and the the subsequent August 19 hearing was not about banning coal or petcoke exports. Rather, Earthjustice and its clients requested that the City of Long Beach do an environmental impact statement for two companies given contracts to export the commodities for 15-20 years.

One of those companies, Oxbow Carbon, is owned by the “Other Koch Brother,” William “Bill” Koch. Like his brothers David and Charles Koch, he has made a fortune on the U.S. petcoke storage and export boom. Also like his brothers, he is a major donor to the Republican Party.

But the Long Beach City Council voted “nay” in unanimous fashion to do the environmental impact study. Earthjustice had argued it was required to do an environmental review under the legal dictates of the California Environmental Quality Act (CEQA).

“It’s disappointing that the City would turn a blind eye to even doing some basic analysis of the impacts of this decision to lock into 15 years of exporting dirty fuels abroad,” said Martinez.

“More than 100 residents showed up at the August 19 hearing to support pausing this deal and are deeply concerned about how climate change and pollution from exporting dirty fuels impacts them and future generations.”

Adding insult to injury, Sierra Club endorsed Vice Mayor and City Council member Suja Lowenthal in her Democratic Party primary race for State Assembly, which she recently lost.

The floodgates have been opened, then, to export massive amounts of coal and petcoke from the self-styled “Green Port.”

It comes at a time when numerous California refineries are retooling themselves to blend more tar sands diluted bitumen (“dilbit”), which gets to the Golden State mainly via rail.

Further, it happens at the same time critics say the Obama Administration is exporting climate change by exporting coal abroad — often to countries without any meaningful regulations — even as his administration regulates U.S.-based coal-fired power plants.

Union, Oxbow Representatives Oppose Enviro Review

While the majority of those who testified at the August 19 hearing before the Long Beach City Council voted spoke in favor of doing an environmental impact statement, several industry executives and union workers spoke out against it.

“First and foremost, you should know the facilities on Pier G are world-class operations that set the bar for environmental excellence in our industries. We are very proud of what we do here with the port,” Clayton Headley, Oxbow’s vice president of supply for the Pacific region stated at the hearing.

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Court: Key Environmental Law Doesn’t Apply to Part of Enbridge Keystone XL “Clone”

6:06 pm in Uncategorized by Steve Horn

A judge's gavel

A judge just ruled federal law doesn’t apply to this pipeline firm.

U.S. District Court for the District of Columbia has ruled that Enbridge’s 600-mile-long Flanagan South Pipeline, a Keystone XL “clone,” is legally cleared to proceed opening for business in October.

Approved by the U.S. Army Corps of Engineers via a controversial regulatory mechanism called Nationwide Permit 12 (NWP 12), Judge Kentanji Brown Jackson, an Obama-appointed judge, ruled NWP 12 was not a federal government “action.” Thus, Brown posited that Enbridge did not need to use the National Environmental Policy Act (NEPA) regulatory process and NWP12 was up to snuff.

The case pitted the Sierra Club and the National Wildlife Federation (NWF) against the Army Corps of Engineers and Enbridge and has lasted for just over a year, with the initial complaint filed on August 13, 2013 (Case #: 1:13-cv-01239-KBJ).

Sierra Club and NWF submitted the recent precedent-setting Delaware Riverkeeper v. Federal Energy Regulatory Commission (FERC) case as supplemental authority for Sierra Club v. U.S. Army Corps of Engineers on the day that decision was handed down.

But Jackson brushed it aside, saying it doesn’t apply to Flanagan South, despite the fact that the Delaware Riverkeeper v. FERC decision said that a continuous pipeline project cannot be segmented into multiple parts to avoid a comprehensive NEPA review.

Although Enbridge will operate this project as a single pipeline, Flanagan South was broken up into thousands of “single and complete” projects by the Army Corps of Engineers. This helped Enbridge skirt the requirement of a more comprehensive and public-facing NEPA review, which involves public hearings and a public comment period.

“Here, not only was there no NEPA analysis of this massive project, there was never any public notice or opportunity for involvement before it was constructed across four states,” Sierra Club attorney for the case, Doug Hayes, told DeSmogBlog. “The entire thing was permitted behind closed doors.”

For all intents and purposes, then, Flanagan South is a fait accompli and tar sands diluted bitumen (“dilbit”) will begin pumping through it as summer turns to fall.

Private Company, Hands-Off Approach

At 48-pages, Jackson’s ruling centers around a key central argument: Enbridge is a private company and Congress has never given executive agencies the green light to regulate domestic oil pipelines.

“Congress has not authorized the federal government to oversee the construction of private domestic oil pipelines; consequently, Enbridge has undertaken to build the planned [Flanagan South] Pipeline largely on its own, primarily by securing easements from the landowners who own the property over which the pipeline will operate,” wrote Jackson.

Judge Jackson said that a laissez-faire governmental approach to authorizing pipelines is appropriate, according to her reading of the law on the books.

“[T]he gist of the Court’s conclusion is that Plaintiffs are wrong to insist that any federal agency had an obligation under NEPA or any other statute to conduct an environmental review of the impact of the entire [Flanagan South] Pipeline before Enbridge broke ground on the project,” she opined.

“Connected Action” Doctrine

Another key legal precedent discussed in Jackson’s ruling was Delaware Riverkeeper v. FERC, covered by DeSmogBlog in June.

She weighed the merits of the “connected action” doctrine as applied to a lack ofNEPA review for Flanagan South, writing it does not apply to the pipeline because the Army Corps of Engineers has no obligation to do a NEPA review in this case.

“In [Delaware Riverkeeper v. FERC] the connected actions rule applied because the courts were required to assess whether the agencies had improperly limited the scope of the review of actions within their own jurisdiction—a determination that is fundamentally different from the question Plaintiffs present here, i.e., whether [NEPA] must be expanded to include an environmental review of actions completely outside the agencies’ purview,” Jackson wrote.

Army Corps Abusing NWP 12?

Hayes told DeSmogBlog back in November that the Army Corps of Engineers’ intricate involvement in permitting massive tar sands pipeline projects is at the root of the problem.

“The Corps is abusing the nationwide permit program. Nationwide permits were intended to permit categories of projects with truly minimal impacts, not tar sands oil pipelines crossing several states,” said Hayes. “What the Corps is doing is artificially dividing up these massive pipelines, treating them as thousands of individual projects to avoid NEPA compliance.”

Congress Passed NEPA in 1969

The greatest irony of Jackson’s decision is that Congress passed NEPA — known by legal scholars as the “environmental Magna Carta“ — in 1969, and it was signed into law by President Richard Nixon in 1970.

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Investor Call: Enbridge’s Keystone XL Clone Opens in October, Rail Facility to Follow

6:06 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

In a recent quarter two call for investorsEnbridge Inc executives said the company’s “Keystone XL” clone — the combination of the Flanagan South and Seaway Twin pipelines — will open for business by October.

As previously reported by DeSmogBlog, Enbridge has committed a “silent coup” of sorts, ushering in its own Alberta to Port Arthur, Texas pipeline system “clone” of TransCanada‘s Keystone XL tar sands pipeline. Unlike Keystone XL‘s northern leg, however, Enbridge has done so with little debate.

With the combination of the Alberta Clipper (now called Line 67, currently up for expansion), Flanagan South and Seaway Twin pipelines, Enbridge will soon do what TransCanada has done via its Keystone Pipeline System.

That is, bring Alberta’s tar sands to Gulf of Mexico refineries and send it off to the global export market.

According to Guy Jarvis, president of liquids pipelines for Enbridge, even though the Cushing, Oklahoma to Port Arthur, Texas Seaway Twin is technically operational, it will not become functional until Flanagan South opens in October.

“The base plan had been, and still is, to do the line fill of the Seaway Twin from Flanagan South. So we don’t expect to see too much off the Seaway Twin until Flanagan South does go into service,” Jarvis said on the investor call.

“It does have the capability to be line filled at Cushing if the barrels are available and the market signals would suggest that you would want to do that. But at this point in time, we think it will be the base plan that it is filled on from Flanagan South.”

Beyond piping diluted bitumen (“dilbit”) to market, Enbridge also has plans to market dilbit via rail in a big way.

All Aboard Enbridge’s Tar Sands-By-Rail

Jarvis unpacked his company’s plans to help move tar sands by rail during the call, as well.

“In terms of the rail facility, one of the things we’re looking at is – and the rail facility is really in relation to the situation in western Canada where there is growing crude oil volumes and not enough pipeline capacity to get it out of Alberta for a two or three year period,” he said.

“So, one of the things we’re looking at doing is constructing a rail unloading facility that would allow western Canadian crudes to go by rail to Flanagan, be offloaded, and then flow down the Flanagan South pipeline further into Seaway and to the Gulf.”

The Wall Street Journal explained that Enbridge’s rail loading facility can handle 140,000 barrels of heavy oil per day and will be open for business in early 2016.

“Competitive Advantage”

According to lobbying disclosure forms reviewed by DeSmogBlog, Enbridge spent $230,000 on lobbying the federal government in the first half of 2014. For a company that earned over $410 million (US dollars) in 2013, the amount equals a mere drop in the bucket.

But, the company acknowledged in its earnings call that its quiet and cheap — yet effective — efforts have paid huge dividends.

“So, we think that, while we’re already very competitive into the markets that we serve directly with pipelines, that competitive advantage into those markets is likely only to get stronger,” said Jarvis.

Enbridge’s “competitive advantage,” however, comes with a cost for everyone else: lighting the “fuse” to a “carbon bomb” for one of the filthiest, climate destroying fossil fuels on the planet in Alberta.

Dairyland to Petrostate: Wisconsin Oil-By-Rail Routes Published for First Time

1:51 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog 

A BNSF train engine heading north

BNSF and other rail companies are carrying dangerous oil tankers through Wisconsin.

DeSmogBlog is publishing the first documents ever obtained from the Wisconsin government revealing routes for oil-by-rail trains in the state carrying oil obtained via hydraulic fracturing (“fracking”) in the Bakken Shale basin.

The information was initially submitted to the U.S. Department of Transportation (DOT) under the auspices of a May 7 Emergency Order, which both the federal government and the rail industry initially argued should only be released to those with a “need to know” and not the public at-large.

The Wisconsin documents show the three companies that send Bakken crude trains through the state — Burlington Northern Santa Fe (BNSF), Union Pacific and Canadian Pacific — all initially argued routes are “sensitive security information” only to be seen by those with a “need to know.”

As covered in a previous DeSmogBlog article revealing the routes of oil trains traveling through North Dakota for the first time, the rail industry used this same line of legal argument there and beyond.

Wisconsin Emergency Management did not buy the argument, though, and released the documents to DeSmogBlog through the state’s Public Records Act.

BNSF Hugs the Mississippi

As with North Dakota, BNSF is the chief mover of oil-by-rail in Wisconsin.

BNSF is owned by Warren Buffett, one of the richest men on the planet and a major campaign contributor to President Barack Obama and expected major donor for Hillary Clinton’s 2016 presidential bid.

According to the records it submitted to Wisconsin Emergency Management, BNSF moves the majority of its crude-by-rail trains along the state’s western corridor, which hugs the Mississippi River.

For the week of June 5 through June 11, records show BNSF sent 39 oil-by-rail trains through Buffalo County, La Crosse County, Pepin County, Pierce County and Trempealeau County. All of these counties border the Mississippi.

As covered here on DeSmogBlog in January, the BNSF-owned Bakken oil train that exploded in Casselton, North Dakota on December 30, 2013 was headed to a Mississippi River terminal in Missouri owned by Marquis Energy.

Canadian Pacific Hugs Lake Michigan

While BNSF dominates Wisconsin’s Mississippi River corridor, Canadian Pacific does the same — albeit to a much lesser extent — along another major body of water: Lake Michigan.

According to the data submitted by the company, Canadian Pacific ships three to five train-loads of Bakken oil per week through Milwaukee County, Racine County and Kenosha County. Canadian Pacific slices through the heart of the state in a west-to-east transit route to reach Milwaukee County.

Milwaukee, Racine and Kenosha all border Lake Michigan. And once it crosses into northeastern Illinois, the rail line sits in close proximity to Lake Michgan, particularly in Waukegan (a train line traversed many times by this writer, a Kenosha native).

Canadian Pacific owns a major rail transload facility — Great Lakes Reloading — located on the southeast side of Chicago. It sits close to both Lake Michigan and the Calumet River.

Great Lakes Reloading serves as a key thoroughfare for many of the company’s freight rail transportation routes, including for crude-by-rail.

Union Pacific: Didn’t Meet Threshold

Industry giant Union Pacific did not meet the oil-by-rail carriage threshold that requires companies to submit routes to State Emergency Response Commissions (SERCs), one of which is Wisconsin Emergency Management.

That threshold, as explained by Union Pacific in its letter to Wisconsin Emergency Management, is one million gallons of Bakken crude per week.

Union Pacific is perhaps best known to many in southeast Wisconsin and northeast Illinois for its Metra public transit line running from Kenosha to Chicago (and vice versa) and from Chicago to many Chicago-area suburbs (and vice versa).

From America’s Dairyland to Petrostate?

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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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Stink Tanks: Historical Records Reveal State Policy Network Was Created by ALEC

9:24 am in Uncategorized by Steve Horn

Cross-Posted by DeSmogBlog 

The Madison Hotel, DC

A 1991 report tracked down by DeSmogBlog from the University of California-San Francisco’s Legacy Tobacco Documents reveals that the State Policy Network (SPN) was created by the American Legislative Exchange Council (ALEC), raising additional questions over both organizations’ Internal Revenue Service (IRS) non-profit tax status.

Titled “Special Report: Burgeoning Conservative Think Tanks” and published by the National Committee for Responsive Philanthropy, the report states that State Policy Network’s precursor — the Madison Group — was “launched by the American Legislative Exchange Council and housed in the Chicago-based Heartland Institute.”

Further, Constance “Connie” Campanella — former ALEC executive director and the first president of the Madison Group — left ALEC in 1988 to create a lobbying firm called Stateside Associates. Stateside uses ALEC meetings (and the meetings of other groups) as lobbying opportunities for its corporate clients.

“Stateside Associates is the largest state and local government affairs firm,” according to its website. “Since 1988, the Stateside team has worked across the 50 states and in many local governments on behalf of dozens of companies, trade associations and government and non-profit clients.”

Named Constance Heckman while heading ALEC, Campenella also formerly served on the Board of Directors of Washington Area State Relations Group, a state-level lobbyist networking group. 

“The Washington Area State Relations Group (WASRG) is one of the nation’s largest organizations dedicated exclusively to serving state government relations professionals,” explains its website. “Since the mid-1970s, WASRG has been providing its corporate, trade association and public sector members with a unique and valuable opportunity to interact with their peers, key state officials and public policy experts.”

Shadow Lobbying All Along

ALEC is currently under fire for potentially abusing its 501(c)(3) non-profit IRS charity tax status, acting as a shadow lobbying apparatus and “corporate bill mill” throughout its 40 years of existence.

In response to criticism, internal documents recently revealed by The Guardian show that ALEC created a 501(c)(4) group called the Jeffersonian Project, a move activists said was a tacit admission ALEC has illegally served as a lobbying apparatus from the beginning.

What Campanella understood and cashed in on by creating Stateside Associates was how the “shadow lobbying” process works. Her career move from serving as ALEC’s executive director to setting up Stateside is another indicator ALEC and related groups facilitate lobbying.

“Stink Tanks” Ideas Factory

While ALEC facilitates passage of “model bills” — what the Center for Media and Democracy (CMD) has coined a “corporate bill mill” — State Policy Network proliferates the ideas legitimizing the myriad models that become legislation in statehouses nationwide.

These ideas come in the form of what CMD and Progress Now call “Stink Tanks,” modeled to be “mini-Heritage Foundations” by one of its original funders, Thomas Roe. State Policy Network has 64 state affiliates.

Roe, who passed away in 2000, served as vice chairman and finance chairman of the Republican Party in South Carolina and as a member of the Republican National Finance Committee. The Heritage Foundation, where Roe served on the Board of Trustees, now houses the Thomas Roe Institute for Economic Policy Studies.

Though current State Policy Network president Tracie Sharp claimed SPN member groups don’t coordinate with one another in a November Politico article, Roe explicitly funded the organization to do just that.

“Starting in 1987, these organizations began meeting regularly as the Madison Group…to trade information and discuss strategies,” a history of SPN published in 2007 explains. “Roe believed that these get-togethers were so helpful that they should be formalized through a professional association that would host annual conferences, provide services, and improve communications among its members.”

To this day, State Policy Network hands out an annual Roe Award.

“The annual Roe Award pays tribute to those in the state public policy movement whose achievements have greatly advanced the free market philosophy. It recognizes leadership, innovation and accomplishment in public policy,” explains the SPN website. “The award is an eagle, a symbol of liberty and the courage and conviction necessary for its preservation.”

“Winning is the Operative Word”

In introducing the “Burgeoning Conservative Think Tanks” report in a July 1991 letter to Kurt Malmgren — then the Senior Vice President of State Activities for the Tobacco Institute — former ALEC Executive Director Sam Brunelli wrote “winning is what ALEC is all about.”

“Winning is the operative word. It is an experience you can appreciate because winning the public policy debate will continue to have a tremendous positive effect on the ‘bottom line’ of your company,” Brunelli wrote.

“At ALEC, we bring together, in an intellectually and challenging environment, state legislators and corporate and business executives, wherein we provide the mixture of determination, dedication, preparation, and teamwork — those elements so necessary to winning!”

Yet, it’s fair to say after a week of hard-hitting investigative journalism by The Guardian and many other outlets, both ALEC and the State Policy Network have doubled down on defense and are not “winning” for now. Read the rest of this entry →

Stink Tanks: State Policy Network Internal Budget Documents Revealed by The Guardian

10:00 pm in Uncategorized by Steve Horn

The Madison Hotel, DC

Cross-Posted from DeSmogBlog

It’s been a rough week for the American Legislative Exchange Council (ALEC). The “corporate bill mill” group’s annual States & Nation meeting was overshadowed by damaging evidence of misconduct revealed by The Guardian.

And it just got a whole lot rougher with yet another investigative installment in The Guardian series.

This time, instead of focusing on ALEC alone, Guardian reporters Suzanne Goldenberg and Ed Pilkington took a big swing at what Center for Media and Democracy and Progress Now have called the “stink tanks” network run by the right-wing State Policy Network (SPN). Leaked a copy of SPN’s tax and budget proposal published in July 2013, the documents offer a rare glimpse inside the SPN machine.

One of the biggest revelations in the energy and environment sphere: SPN Associate Member, the Beacon Hill Institute “requested $38,825…to weaken or roll back a five-year effort by states in the region to reduce greenhouse gas emissions,” explained The Guardian. ”The institute said it would carry out research into the economic impact of the cap-and-trade system operating in nine states known as the Regional Greenhouse Gas Initiative.”

“BHI appeared to have already arrived at its conclusions in advance, admitting from the outset that the aim of the research was to arm opponents of cap-and-trade with data for their arguments, and to weaken or destroy the initiative.”

Another huge related development came in a piece published concurrently by The Guardian. That piece pointed out that Beacon Hill Institute is in trouble with its host institution Suffolk University for pushing research explicitly funded by SPN to oppose the Regional Greenhouse Gas Initiative, with research results already determined before the inquiry began.

“The stated research goals, as written, were inconsistent with Suffolk University’s mission,” Greg Gatlin, the university’s vice-president for marketing and communications, wrote in an email to The Guardian.The Beacon Hill Institute’s grant proposal did not go through the university’s approval process. The university would not have authorized this grant proposal as written.”

Searle, Monsanto, “The Don”: Oh My

The Guardian‘s piece is based on funding proposals from SPN member organizations handed to the Searle Freedom Trust, “a private foundation that in 2011 donated almost $15m to largely rightwing causes,” the paper explains.

“The trust, founded in 1998, draws on the family fortune of the late Dan Searle of the GD Searle & Company empire – now part of Pfizer – which created NutraSweet,” wrote The Guardian. “The trust is a major donor to such mainstays of the American right and the Tea Parties as Americans for Prosperity, the American Legislative Exchange Council (Alec), the Heartland Institute and the State Policy Network itself.”

Prior to Pfizer buying it out, Searle was a wholly owned subsidiary of transnational agribusiness giant, Monsanto. Donald Rumsfeld, former Secretary of Defense under President George W. Bush, served as CEO of Searle & Company from 1977-1985. Rumsfeld left the firm after it was purchased by Monsanto, personally earning $12 million on the deal.

Donors Trust/Donors Capital, Chicago Ties

The Chicago-based Searle Freedom Trust also gives big money to Donors Trust/Donors Capital, donating $1,880,000 between 2009 and 2011 according to SourceWatch and millions more to ALEC, according to the Bridge Project. Donors is referred to by Mother Jones reporter Andy Kroll as the ”the dark-money ATM of the conservative movement.”

The Windy City ties that bind are key. Among them, the Chicago-based Heartland Institute and the ”anonymous donor” behind its anti-science climate denial campaign (mentioned in the “Heartland Institute Exposed” documents), Chicago billionaire Barre Seid.

The Guardian‘s piece notes that Chicago Mayor Rahm Emanuel — the former chief of staff to President Barack Obama who has been dubbed “Mayor 1%” by Chicago activists and in a recent book by Kari Lyderson — was selected by SPN member the Illinois Policy Institute as the ideal spokesman for slashing pensions of public sector workers in Illinois.

Today, Illinois Democratic Party Governor Pat Quinn signed legislation doing just that.

“Mini-Heritage Foundations”

Holding its first meeting at the Madison Hotel in Washington DC, and coining itself the Madison Group, the right-wing Powell Memo-inspired founders of the group envisioned the organization to consist of a nationwide network of “mini-Heritage Foundations,” according to The National Review.

Decades later, the vision has come to fruition, with the State Policy Network’s $83 million worth of “stink tanks” polluting the public square with the ideas necessary to push forward ALEC’s corporate agenda. 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.

Fracking “Shock Doctrine” Unveiled as 2013 Illinois Legislative Session Nears End

1:48 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Fracking

The shale gas industry has performed the “shock doctrine” at the 11th hour of the 2013 Illinois State Legislature’s debateover hydraulic fracturing (“fracking”), the toxic horizontal drllling process through which oil and gas is obtained from shale rock basins nationwide.

This year, both the Illinois House and Senate are set to adjourn for the year on May 31 and HB 2615 – the Hydraulic Fracturing Regulation Act - will likely receive a full floor vote by adjournment. The regulatory bill has 59 House co-sponsors and eight Senate co-sponsorsDemocratic Party Gov. Pat Quinn said he will sign the bill when it arrives on his desk.

With the deadline looming rapidly, anti-fracking activists – or “fracktivists” – have been protestingsitting intestifying in committee hearings and committing acts of non-violent civil disobedience daily at the Illinois State Capitol in Springfield.

Two days before that deadline, the Associated Press (AP) reported that records from the state Department of Natural Resources (DNR) indicate fracking already has begun in Illinois’ New Albany Shale Basin.

“Carmi, Ill.-based Campbell Energy LLC submitted a well-completion report last year to the [DNR] voluntarily disclosing that it used 640,000 gallons of water [fracking] a well in White County,” AP reports. AP also explained the report was first obtained by the Natural Resources Defense Council (NRDC).

The last-minute announcement paves the way for a “buzzer beater” public relations effort by the industry to ram through a regulatory bill deemed the “most comprehensive fracking legislation in the nation” by its proponents and a “worst case scenario” by its detractors. The bill was predominatly written by Illinois Oil and Gas Association (IOGA), working alongside two major environmental groups: the Illinois Sierra Club and NRDC.

NRDC told DeSmogBlog it caught wind of the Campbell Energy well-completion report not from the industry itself at the negotiating table, but through a Freedom of Information Act (FOIA) request. The FOIA request also showed another company has fracked a well: Strata-X Energy Ltd.

Among other things, the bill allows fracking to take place within 1,500 feet of groundwater sources and 500 feet of schools, houses, hospitals, nursing homes, and places of worship; and within 300 feet of rivers, lakes, ponds and reservoirs. Necessary context: the horizontal drilling portion of the fracking process extends between 5,000-7,500 feet.

“We need to acknowledge that fracking is legal today in Illinois, and for all we know, may already be occurring as you read this,Sierra Club Illinois‘ Director Jack Darin wrote ambiguously in a Feb. 2013 Huffington Post piece.

Darin’s ominous hypothetical scenario proved true, begging the question: did the industry hide this from those it was at the negotiating table with until the last minute? Darin could not be reached for comment at the time this article went to press.

Fracking Well Owned by IOGA Board Member, Connected to Lake Michigan Oil Drilling

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“Gasland 2″ Grassroots Premiere in Illinois Highlights Industry PSYOPS and Ongoing Fracking Fights

11:10 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

 

Gasland Promo image

Gasland Part 2 continues documenting energy industry spin and climate change.

Gasland 2 screened yesterday in Normal, IL and DeSmogBlog was there to gain a sneak peak of the documentary set for a July 8 HBO national premiere.

Josh Fox’s documentary played at the Normal Theater, the second-ever screening since the film officially premiered on April 21 at the Tribeca Film Festival in New York City

The movie builds on Fox’s Academy Award-nominated Gasland, further making the case of how the shale industry’s hydraulic fracturing (“fracking”) boom is busting up peoples’ livelihoods, contaminating air and water, polluting democracy and serving as a “bridge fuel” only to propel us off the climate disruption cliff. 

A central theme and question of the film is, “Who gets to tell the story?” That is, industry PR pros and bought-off politicians utilizing the “tobacco playbook” and saying “the sky is pink,” or families directly injured by the industry? Fox explains how the industry has gamed the system, ensuring the communities have their voices drowned out. The Gasland films seek to tell some of the victims’ stories. 

Another theme is the bread and butter of following any big industry’s influence: following the money. In depicting the financial clout of Big Oil, Gasland 2 shows that the oil and gas industry has gone to the lengths of deploying warfare tactics – literally – on U.S. citizens to ram through its agenda. 

PSYOPs Use by Gas Industry PR Flacks Featured

Much of the content in Gasland 2 has also been covered on DeSmogBlog over the past few years.

Robert Howarth’s and Anthony Ingraffea’s prominent “Cornell Study” receives some good play in the film. Howarth and Ingraffea demonstrated that from cradle to grave, fracked gas has a more dangerous global warming effect than coal, a death knell to the “natural gas as a bridge fuel” meme. President Obama’s deployment of American Petroleum Institute “jobs” talking points for fracking is in there too.

Former head of the Dept. of Homeland Security under President George W. Bush and Republican Gov. of Pennsylvania, Tom Ridge, also takes a beating in the film. His appearance on “The Colbert Report” is righteously roasted, the same appearance in which he lied to U.S. citizens and declared he was “not a lobbyist” even though he was registered to lobby at that time for the U.S. Chamber of Commerce.

Tailsman Terry the Fracosaurus,” which demonstrates the industy’s willingness to utilize propaganda on young children, receives a similar round of ridicule in Gasland 2. Fox also explains the oil industry’s use of Big Tobacco’s Playbook through interviews with Naomi Oreskes, author of Merchants of Doubt, a major theme of our coverage of both the shale gas industry and the Tea Party

Steve Lipsky, who was left in the dust by Range Resouces and the Environmental Protection Agency (EPA), is one of the central characters of the film. The major villain of that tale is former PA Democratic Gov. Ed Rendell, who helped derail and censor the EPA’s fracking groundwater contamination study motivated by Lipsky’s water contamination in Weatherford, TX.

While the prospective shale gas export boom is covered in some depth in the film, so too is the concept of the government-industry revolving door, particularly as it pertains to Pennsylvania. The Public Accountability Initiative’s study “Fracking and the Revolving Door in Pennsylvania” is featured in the film, a study we also covered.

Last but certainly not least, Gasland 2 devotes an entire section to the industry’s admitted use of psychological warfare tactics (PSYOPs) on U.S. citizens, as we first revealed in Nov. 2011.

The Houston PR conference referred to in the film is one I attended and covered in some depth. It was a gathering of industry public relations executives talking among friends about how to best manipulate mainstream media journalists, divide and conquer anti-fracking activists, and intimidate local communities to go along with fracking operations that endanger their health and drinking water.

Gasland 2 presents the audio of Range Resouces Director of Corporate Communications and Public Affairs Matt Pitzarella revealing that Range hires PSYOPs Iraq War veterans to use their skills to pressure local communities. The film also features Anadarko Petroleum External Affairs Manager Matt Carmichael advising gas industry PR pros to read the Army “Counterinsurgency Field Manual” and “Rumsfeld’s Rules,” because “we are dealing with an insurgency.”

Both audio clips were obtained by Earthworks’ Sharon Wilson at the conference and provided to media by Earthworks and DeSmogBlog. CNBC first broke the story on Nov. 8, 2011.

Illinois Fracking Fight Wages On

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