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Obama’s Former PR Flack’s Firm Does PR For Keystone XL Pipeline, Tar Sands Rail Transport

6:31 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Double-Dipper Dunn

Double-dipping is a “no go” in the real world of eating chips and salsa with a circle of friends but an everyday reality in the world of lobbyists and PR professionals.

Enter double-dipper Anita Dunn, former White House Communications Director for President Barack Obama who now runs the firm SKDKnickerbocker (Squier Knapp Dunn), a firm that ”brings unparalleled strategic communications experience to Fortune 500 companies, political groups and candidates, non-profits, and labor organizations.”

Dip one: TransCanada Corporation, which SKDK does public relations work for, as revealed in an Oct. 2012 New York Times investigation. TransCanada is the multinational corporation currently building the contentious southern half of theKeystone XL (KXL) tar sands pipeline, following the dictates of a March 2012 Obama Administration Executive Order. Within months, the fate of the border-crossing Alberta to Port Arthur, TX KXL export pipeline will also likely be decided by the U.S. State Department.

Dip two: Another SKDKnickerbocker client is the Association of American Railroads (AAR), the American Petroleum Institute trade association equivalent for the freight rail industry. Even without KXL – as covered previously on DeSmogBlog -tar sands crude can be moved to targeted markets via freight rail (coupled with pipeline capacity increases of other tubes and potential barging along Lake Superior).

Beneficiaries of tar sands transport via rail include AAR dues-paying member Burlington Northern Santa Fe (BNSF), owned by major Obama donor Warren Buffett via his holding company, Berkshire Hathaway. Shell Oil – a major Alberta tar sands extractor - also pays AAR member dues, which indicates Big Oil understands the strategic importance of rail transport.

Dunn’s firm, in short, stands to gain from tar sands extraction with or without a KXL northern half, a classic case of double-dipping.

Keystone XL: Dunn’s Obama/Kerry Connections Portend a Dunn and Done Scenario

Dunn has maximized her White House insider access status since leaving the Administration in 2009 and starting SKDK.

“Dunn regularly attends closed-door political strategy briefings with top Obama aides; White House records show she has visited more than 100 times since leaving her communications job,” the Oct. 2012 New York Times piece explained. “She is now serving as a paid adviser to the Democratic National Committee.”

Dunn’s husband Robert “Bob” Bauer also maintains extremely close ties to the Obama Administration, serving as Obama’s personal and political attorney.

“Bauer also will play that role for Obama’s new political network, Organizing for America, and the Democratic National Committee, which is administering the network,” explained a Feb. 2009 article in Politico, “Bauer’s new, unmatched legal power.”

In Nov. 2009, Obama named Bauer White House Counsel, a job he left in June 2011 to return to his private practice at Perkins Coie, “focusing on serving as general counsel to the President’s reelection campaign, general counsel to the Democratic National Committee and personal lawyer to President Obama,” according to the Perkins Coie website.

SKDK’s Bill Knapp, described by the New York Observer‘s Ben Smith (now Editor-in-Chief of BuzzFeed) as “one of the Democratic Party’s most sought-after operatives” helped develop the media strategy and advertising” for Kerry for President 2004 that culminated with a defeat to George W. Bush, while Bauer worked as legal Counsel for Kerry’s campaign. Furthermore, Dunn served as Communications Director from 1987-1990 for then-U.S. Sen. Kerry. The Kerry-lead State Department has the final say on whether the KXL north proposal becomes a reality.

As icing on the cake, numerous TransCanada lobbyists have passed through the government-industry revolving door, entering both executive-level agencies and President Obama’s inner-circle.

Brandon Pollak, served as Deputy National Director of Grassroots Fundraising for the Kerry for President 2004 campaign. Broderick Johnson went from lobbying for TransCanada to becoming Obama’s senior campaign advisor for his 2012 race against Republican Mitt Romney.

With all of these lobbyists using their ties to the White House and State Department, it looks as if the KXL decision is already a checkmate, Dunn and done scenario.

If KXL Fails, There’s Always Rail, Barge, Increased Pipeline Capacity Supplements

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Keystone Kops: TransCanada Spent $280,000 Lobbying For Keystone XL Tar Sands Pipeline In First Quarter

9:23 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

TransCanada, the multinational corporation hoping to build the controversial northern half of the Keystone XL pipeline, spent over $280,000 on lobbying the U.S. government in the first quarter (Q1) of 2013, according to lobbying disclosure records.

In addition to the $250,000 paid to Paul Elliott - TransCanada’s infamous in-house lobbyist and former Secretary of State Hillary Clinton’s national deputy campaign manager during her 2008 run for president – three outside firms lobbied on TransCanada’s behalf to promote KXL.

The outside firms: Bryan Cave LLP, which reported $20,000 in earnings from TransCanda in Q1; McKenna, Long & Aldridge, which was paid $10,000 by TransCanada during Q1; and Van Ness Feldman, which TransCanada paid an amount under $5,000, falling under the mandatory reporting ceiling.

$280,000 is a tiny drop in the bucket compared to TransCanada’s $446 million first quarter profits.

The southern half of Keystone XL is currently under construction due to a March 2012 Obama Adminstration Executive Order. The northern half is still in the proposal phase. It would carry Alberta tar sands dilbit to the Gulf Coast refineries in Port Arthur, Texas, where much of it would be exported to the global market.

As seen in an earlier investigation conducted by DeSmogBlogmany of TransCanada’s lobbyists for KXL have direct ties to the Obama administration. The U.S. State Department has been tasked with the final decision on the pipeline’s cross-border northern section, a risky conduit between the carbon intensive Alberta tar sands and further global climate disruption.

Bryan Cave

The two Bryan Cave lobbyists on the KXL file are Brandon Pollak and David Russell. Pollak formerly served as Deputy National Director of Grassroots Fundraising for John Kerry’s 2004 run for President. Kerry now serves as the head of the U.S. Department of State, the body assigned to make the final call on KXL.

Bryan Cave signed termination papers with TransCanada on April 26 and will no longer be lobbying on behalf of KXL beyond the recently-ended quarter.

“Professionals from Bryan Cave were engaged for a period of time, but we recently determined that we did not need the same level of support from them,” TransCanada Shawn Howard said of the termination decision. “As a result, they updated their disclosure of clients and activities, in keeping with U.S. rules and regulations.”

McKenna, Long & Aldridge

The two hired guns tasked to lobby on behalf of KXL and CAPP at McKenna are Alex McGee and Andrew Shaw.

Alex McGee formerly served as Principal Deputy Assistant Secretary for Congressional and Intergovernmental Affairs for the U.S. Department of Energy (DOE) and liaison to Congress on behalf of Secretary of Energy under President George W. Bush, Spencer Abraham. His biography on the McKenna website explains that “McGee was also a strategic player in the passage of the Energy Policy Act of 2005,” a bill that made the chemicals found within hydraulic fracturing (“fracking”) fluid a “trade secret” and made exemptions to the Clean Water Act and the Safe Drinking Water Act for fracking via the “Halliburton Loophole.” He also worked on the Bush-Cheney 2000 Presidential Campaign and staffed Bush’s Presidential Inauguration Committee.

Andrew Shaw also passed through the revolving door as a paralegal at the U.S. Environmental Protection Agency (EPA) under both President Obama and former President George W. Bush.

McKenna, Long & Aldridge also lobbies for the Canadian Association of Petroleum Producers (CAPP), describing its duty on the disclosure form as lobbyists on “U.S. energy or environmental legislation or policies with implications in regard to oil sands production and development in Canada.”

Van Ness Feldman

Van Ness Feldman KXL lobbyists include J. Curtis MoffattTom Roberts,Jonathan Simon and Lisa Epifani.

In Q3 and Q4 of 2012, Moffatt also lobbied on behalf of pipeline giant Kinder MorganRoberts served as Legislative Director of the EPA under former Presidents George H.W. Bush and Bill Clinton from 1990-1995, getting his gig at Van Ness in 1998. He joined Moffatt in lobbying on behalf of Kinder Morgan in Q3 and Q4 of 2012.

Epifani formerly worked alongside McKenna’s McGee as a Deputy Assistant Secretary for Congressional and Intergovernmental Affairs for the DOE under President George W. Bush, also serving as his Special Assistant to the President for Economic Policy for the White House Economic Council before that. She joined Moffatt and Roberts in lobbying for Kinder Morgan in Q3 and Q4.

“Keystone Kops”

The revolving door between the agencies designated to make a good-faith science-based policy decision on the merits of the northern half of the KXL and the firms lobbying on behalf of TransCanada spins with rapidity.

Keystone Kops“ were fictional incompetent and corrupt policemen featured in silent film comedies in the early 20th century. As demonstrated over and over again by the Obama Administration’s ”State Department Oil Services” — aka the “police” asssigned to make a decision on the pipeline’s future — the decision over Keystone XL seems merely a 21st Century version of these legendary silent films.

30 Toxic Chemicals at High Levels at Mayflower Exxon Tar Sands Spill

10:12 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

An independent study co-published by the Faulkner County Citizens Advisory Group and Global Community Monitor reveals that, in the aftermath of ExxonMobil’s Pegasus tar sands pipeline spill of over 500,000 gallons of diluted bitumen (dilbit) into Mayflower, AR, air quality in the area surrounding the spill has been affected by high levels of cancer-causing chemicals.

Roughly four weeks after the spill took place, many basic details are still unknown to the public, according to recent reporting by InsideClimate News. Questions include what exactly caused the spill, how big was the spill exactly, and how long did it take for emergency responders to react to the spill, to name a few.

But one thing is certain according to the new study: For the residents of Mayflower, quality of life has been changed forever.

The chemicals found in the samples include benzene, toluene, ethylbenzene, n-hexane, and xylenes. Breathing in both ethylbenzene and benzene can cause cancer and reproductive effects, while breathing in n-hexane can damage the nervous system and usher in numbness in the extremities, muscular weakness, blurred vision, headaches, and fatigue.

All of these chemicals are hazardous air pollutants (HAPs), “regulated under the 1990 Federal Clean Air Act amendments as the most toxic of all known airborne chemicals,” as explained in the press release summarzing the study.

As covered here on DeSmog, the spill clean-up in Mayflower has more closely resembled PR image clean-up than on-the-ground clean-up, both because of the firm the AR Attorney General has hired to do spill clean-up assessment and because of the ongoing Federal Aviation Administration (FAA) no-fly zone being run on behalf of the FAA by Exxon’s “Aviation Advisor,” Tom Suhrhoff.

Given the revalations in this latest study, Exxon has proven it has much to cover up, with this study only scratching the surface of the ecological harms of the pipeline spill.

“The spill and response has been a disservice to the community,” said Global Community Monitor’s Ruth Breech. “People are obviously suffering and experiencing health symptoms from chemical exposure related to the oil spill. State and Federal need to step up immediately to document and prevent any further health issues associated with the Exxon oil spill. Agencies need to share information in a manner to ensure informed decision making and enable access to necessary resources such as medical treatment for chemical exposure.”

With a decision looming on the future of the prospective TransCanada Keystone XL tar sands pipeline by the Obama Administration, Mayflower is yet another sordid case study of the hazards that accompany tar sands pipelines wherever they meander.

Read the rest of this entry →

Oops, Inc.: Firm with History of Cover-Ups Hired to Clean Up Arkansas Tar Sands Spill

5:50 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Arkansas’ Attorney General Dustin McDaniel has contracted out the “independent analysis of the cleanup” of the ExxonMobil Pegasus tar sands pipeline spill to Witt O’Brien’s, a firm with a history of oil spill cover-ups, a DeSmogBlog investigation reveals.

At his April 10 press conference about the Mayflower spill response, AG McDaniel confirmed that Exxon had turned over 12,500 pages of documents to his office resulting from a subpoena related to Exxon’s response to the March 29 Pegasus disaster. A 22-foot gash in the 65-year-old pipeline spewed over 500,000 gallons of tar sands dilbit through the streets of Mayflower, AR.

McDaniel also provided the media with a presser explaining that his office had“retained the assistance of Witt O’Brien’s, a firm whose experts will immediately begin an independent analysis of the cleanup process.”

Witt O’Brien’s describes itself as a “global leader in preparedness, crisis management and disaster response and recovery with the depth of experience and capability to provide services across the crisis and disaster life cycle.”

But the firm’s actual performance record isn’t quite so glowing. O’Brien’s has had its hands in the botched clean-up efforts of almost every high-profile oil spill disaster in recent U.S. history, including the Exxon Valdez spill, the BP Deepwater Horizon spill, the Enbridge tar sands pipeline spill into the Kalamazoo River, and Hurricane Sandy.

Most troubling of all, Witt O’Brien’s won a “$300k+ contract to develop a Canadian-US compliant Oil Spill Emergency Response Plan for TransCanada’s Keystone Oil Pipeline Project” in Aug. 2008.

Thus, if the Keystone XL (KXL) pipeline inevitably suffered a major spill, Witt O’Brien’s would presumably handle the cleanup. That should worry everyone along the proposed KXL route.

From OOPS, Inc. to Witt O’Brien’s

In Dec. 2012, Witt Associates merged with O’Brien’s Response Management to form Witt O’Brien’s. The merger at-large is owned by Seacor Holdings.

O’Brien’s was formed in the early 1980s by Jim O’Brien – a former U.S. Coast Guard officer – as O’Brien Oil Pollution Service, otherwise known by OOPS, Inc. That’s not a joke, it was their actual name.

OOPs, Inc. was acquired by Seacor Holdings Inc. under the auspices of Seacor Environmental Services division in 1997, later renamed The O’Brien’s Group (TOG). TOG was later re-named O’Brien’s Response Management Inc. in Oct. 2008.

Importantly, in Dec. 2009, O’Brien’s acquired a powerful public relations spin machine wing, as its former website explains:

In December of 2009, O’Brien’s completed the successful acquisition of PIER (Public Information Emergency Response) Systems Inc., a crisis communications company that has developed the PIER software application, an all-in-one, web-based solution for communications management, public relations, media monitoring, employee notification, and business continuity.

Witt Associates, meanwhile, was founded by James Witt, former head of the Federal Emergency Management Agency (FEMA) under President Bill Clinton who also served Gov. Clinton in Arkansas as head of the state’s Office of Emergency Services. He started Witt Associates upon leaving his Clinton Administration post.

Oil and Gas Industry Ties Run Deep at Witt O’Brien’s

Read the rest of this entry →

Second US Tar Sands Mine, Owned by Former ExxonMobil and Chevron Exec., Approved in Utah

8:37 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

MCW Enterprises Ltd., a Canada-based corporation, announced on Nov. 19 that it has received all necessary permits to streamline tar sands extraction at its Asphalt Ridge plant located in Vernal, Utah starting in December.

Protest Banner: All Markets Peak, All Pipelines Leak

Tar Sands protest in New Orleans

The announcement comes just weeks after U.S. Oil Sands Company received the first ever green light to extract tar sands south in the United States.

Recently changing its name from MCW Energy, MCW Enterprises Ltd. owns MCW Oil Sands Recovery LLC as a wholly owned subsidiary. The company’s CEO, R. Gerald Bailey – often also referred to as Raymond Bailey or Jerry Bailey - is the former President of Exxon Arabian Gulf and also served as an Executive for Texaco (since purchased by Chevron) for 15 years.

MCW’s website explains that its stake in the Asphalt Ridge is a “proven/probable resource of over 50+ million barrels of oil” and that it “is seeking other oil sands leases in Utah, which contains over 32 billion barrels of oil within 8 major deposits.”

Bailey told Flahrety Financial News that he sees this first project as a crucible, or testing grounds, with the potential for more extraction to come down the road.

“This is really going to be a technology play,” he stated. “I don’t plan to build another Exxon out there in the desert.”

The Frac Sand Connection

In June 2012, Temple Mountain Energy (TME) – also based in Vernal, UT – cut a five-year oil sands supply agreement deal with MCW.

“Under this five year Supply Agreement, Temple Mountain will supply MCW with 8,333 tons of oil sands material per month until the year 2016,” MCW’s website explains.

Once the bitumen is extracted, TME plans on selling the fine-grained sand under which it sits to unconventional oil and gas companies forhydraulic fracturing (“fracking”).

“The recent rapid expansion of shale gas and shale oil drilling…has greatly increased the need for fracking sand in this region,” TME wrote on it website. “Asphalt Ridge is well-positioned to serve this high-volume market—both in terms of geographic location and in terms of sand quality.”

To date, frac sand mining companies have targeted five states - WisconsinMinnesotaTexasArkansas, and Iowa - transforming tens of thousands of acres of land into “Sand Land.” Utah is soon to become number six.

Race for What’s Left: End of “Easy Oil,” Heavy Price to Pay

With domestic unconventional oil and gas wells under-producing, setting the stage for the shale gas bubble to burst, the push to extract tar sands in the United States is a depiction of the oil and gas industry’s reckless push to extract every last drop in a “race for what’s left.”

The age of “easy oil,” to borrow the term from scholar Michael Klare, is over. In a May 2012 interview with FutureMoneyTrends.com, Bailey acknowledged this as well, stating that the “cheap, easy oil is pretty much behind us.”

Bailey defines “cheap” here with regards to the price of extracting the “tough oil” from a production point-of-view.

But as the Alberta tar sands north of the border have shown, it’s the ecosystem and climate that really pays the heaviest price of all. Read the rest of this entry →

Former Clinton and Bush Cabinet Members, Now Oil and Gas Lobbyists, Expect Keystone XL Green Light

12:18 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

The Tar Sands Blockade of TransCanada Corporation’s “Keystone XL South” continues in Texas, but former members of the Clinton and George W. Bush cabinets believe the northern half will soon be green-lighted by President Barack Obama.

In a Nov. 13 conference call led by the Consumer Energy Alliance (CEA), an oil and gas industry front group, CEA Counsel John Northington said he believes a “Keystone XL North” rubber stamp is in the works by the Obama Administration.

“I think the Keystone will be approved in fairly short order by the administration,” Northington said on the call.

Northington has worn many hats during his long career:

[He] served in the Clinton Administration at the Department of the Interior as Senior Advisor to the Director of the Bureau of Land Management. Mr. Northington also served as Special Assistant to the Assistant Secretary for Land and Minerals Management with energy policy responsibility for the former Minerals Management Service and the Bureau of Land Management. Mr. Northington began his government service at the Department of Energy, where he served as White House Liaison, Chief of Staff for the Office of Fossil Energy and Senior Advisor for Oil and Natural Gas Policy.

After his tenure working for the Clinton Administration, he walked through the revolving door and became a lobbyist, representing many clients over the past decade, including the oil and gas industry. Northington has represented ExxonMobilDevon EnergyCONSOL Energy, and StatoilExxonMobilDevon and Statoil all have a major stake in the tar sands.

Northington was joined on the call by Michael Whatley, CEA’s Executive Vice President. Whatley seved as senior policy advisor for the Bush-Cheney 2000 campaign, Principal Deputy Assistant Secretary of the Department of Energy under George W. Bush and as Chief of Staff of former Sen. Elizabeth Dole (R-NC).

CEA fronts for HBW Resources, a lobbying firm run by David Holt, Andrew Browning and Whatley (hence the “HBW”), with a developed speciality of lobbying on behalf of the tar sands industry.

Whatley, above and beyond working for the Bush Administration, Sen. Dole and CEA, has also lobbied on behalf ofExxonMobil and General Electric (GE). GE, like ExxonMobil, also has a fiscal present and future interest in tar sands production.

Win, Win for Some; Lose, Lose for Most: Tar Sands With Or Without Keystone XL

Though outfits like CEA are working overtime to ensure “Keystone XL North” is built soon, there are other ways to skin the cat and bring tar sands crude to market. The most important one, covered here on DeSmogBlog and in a recent story published by the Calgary Herald, is freight rail.

Warren Buffett, the “Oracle of Obama,” has a major financial stake both in tar sands production, as well as in moving tar sands to market via the Burlington Northern Sante Fe (BNSF) freight trains he owns under the auspices of his holding company, Berkshire Hathaway.

Buffett gave over $60,000 to the Democratic National Committee during the 2012 election cycle, as well as another $70,000 to President-elect Barack Obama, according to Federal Election Commission (FEC) filings.

“Railroads too present environmental issues. Moving crude on trains produces more global warming gases than a pipeline,” explained Bloomberg in January 2012.

BNSF isn’t the only rail company eager to move tar sands crude to market. Southern Pacific also envisions a major market opening for freight rail transport. A recent Calgary Herald story explains,

While Canadian and U.S. railways are scrambling to meet demand, opening small terminals close to production in locations such as the Bakken area of southern Saskatchewan and North Dakota, the Athabasca oilsands have not been part of the rush. Until now….Unlike pipelines, that means no public hearings and no environmental protests.

The verdict is in.

Chock it up to yet another win-win for the oil and gas industry and a lose-lose for all who have to suffer the consequences of the ecological damage in Alberta, as well as the climate change amplified disasters it’s engendering around the world.

Tar Sands South: First US Tar Sands Mine Approved in Utah

9:46 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

We are more than oil protest sign

Photo: Claytonn Conn / Tarsandsaction / Flickr

The race is on for the up-and-coming U.S. tar sands industry. To date, the tar sands industry is most well-known for the havoc it continues to wreak in Alberta, Canada - but its neighbor and fellow petrostate to the south may soon join in on the fun.

On Oct. 24, the Utah Water Quality Board (UWQB) approved the first ever tar sands mine on U.S. soil, handing a permit to U.S. Oil Sands, a company whose headquarters are based in Alberta, despite it’s name.

In a 9-2 vote, the UWQB gave U.S. Oil Sands the green light to begin extracting bitumen from its PR Spring Oil Sands Project, located in the Uinta Basin in eastern Utah. The UWQB concluded that there’s no risk of groundwater pollution from tar sands extraction for the prospective mining project.

Members of the public were allowed to attend the hearing but “were not permitted to provide input,” according to The Salt Lake Tribune.

“The PR Spring project remains on track for commercial startup late in 2013, and the decision ultimately illustrates the merits that our responsible approach to oil sands development has for the environment and local communities,” Cameron Todd, CEO of U.S. Oil Sands stated in a press release in response to the decision.

Living Rivers, the Moab, Utah-based offshoot of Colorado Riverkeeper says it will likely appeal the decision to the state’s court system, ”arguing that tar sands mining will contaminate groundwater in a largely undeveloped area of Utah’s Book Cliffs region that drains into the Colorado River,” explained the Associated Press.

In an Oct. 9 interview on Democracy Now!, John Weisheit, Conservation Director of Living Rivers said the harms associated with looming tar sands extraction in the Uinta Basin aren’t merely limited to groundwater contimination. Rather, the entire surrounding ecosystem would be endangered. He told Amy Goodman:

Well, we’re concerned because this particular locality is in a high-elevation place called the Tavaputs Plateau, and it’s one of the last wild places in Utah. It’s a huge refuge for elk and deer. It’s also a beautiful watershed. It not only would affect the Colorado River, but it also—at this particular site, it’s at the top of the drainage, so it would also affect the White River and the Green River.

The PR Spring mining site is 5,930 contiguous acres with a “land position totalling 32,005 acres of bitumen extraction rights on leases in the State of Utah,” according to U.S. Oil Sands’ financial statement for the first half of 2012. AP explained that U.S. Oil Sands plans to extract 2,000 barrels of tar sands crude in Utah in 2012, “in the start of what could grow into a much larger operation.”

Two main grassroots activist groups are currently battling Utah’s upstart tar sands industry: Utah Tar Sands Resistance and Before It Starts. “The Utah Water Quality Board is an entirely inappropriate authority for determining the safety of both water safety and water availability for the 30 million people who depend on the Colorado RIver, most of which do not live in Utah,” Kate Finneran, Co-Director of Before It Starts told DeSmogBlog in an interview.

Though Living Rivers will appeal the decision, U.S. Oil Sands isn’t wasting any time in forging ahead, and according to the AP is already “looking to take on a partner, ordering equipment, hiring Utah contractors and preparing the site” for extraction.

5,900+ acres is a drop in the bucket for an industry sitting on some 232,065 acres of land open for tar sands extraction in the state of Utah, according to a Sept. 2012 story by Inside Climate News.

The U.S. tar sands are deemed a “strategically important domestic resource that should be developed to reduce the growing dependence of the United States on politically and economically unstable sources of foreign oil imports” in Sec. 369 of the Energy Policy Act of 2005.

Most well-known for the “Halliburton Loophole,” the Energy Policy Act of 2005 exempts oil and gas corporations from complying with the dictates of the Clean Water Act and the Safe Drinking Water Act, making the chemicals injected into the ground (and into groundwater) while hydraulic fractruing (“fracking”) for unconventional gas a “trade secret.” The law was written with the helping hand of oil and gas executives via then Vice President Dick Cheney’s Energy Task Force in 2001.

By legal mandate, it appears, the race to extract bitumen from “Tar Sands South” has just begun. It’s a race that, like the one being run by its Canadian neighbor to the north, can’t possibly end well for the ecosystem, public health, water quality and the global climate.

Keystone XL Contractor and SUNY Buffalo Shale Institute Conduct LA County’s Fracking Study

12:03 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

A huge report was published on Oct. 10 by Los Angeles County that’ll likely open the floodgates for hydraulic fracturing (“fracking”) for unconventional oil and gas in the Monterey Shale basin. The report, as it turns out, was done by LA County in name only.

As the Los Angeles Times explained, the study found “no harm from the method” of fracking as it pertains to extracting shale gas and oil from the Inglewood Oil Field, which the Times explains is “the largest urban oil field in the country.”

In the opening paragraphs of his article, Ruben Vives of the Times wrote,

A long-awaited study released Wednesday says the controversial oil extraction method known as hydraulic fracturing, or fracking, would not harm the environment if used at the Inglewood Oil Field in the Baldwin Hills area.

The yearlong study included several issues raised by residents living around the field, such as the potential risks for groundwater contamination, air pollution and increased seismic activity.

It’s not until the middle of the story that Vives says the study wasn’t done by LA County itself, but rather what he describes as a “consulting firm that conducted the study” by the name of Cardno Entrix.

Cardno Entrix isn’t any ordinary “consulting firm.”

It’s the third party contractor that conducted the Environmental Impact Statement (EIS), ran the public hearings and made the website all on behalf of the Obama State Department’s review process for the controversial Keystone XL tar sands pipeline. Cardno Entrix, in turn, was hired by TransCanada to do the EIS, a conflict-of-interest blatant enough that it’s yielded an ongoing Office of the Inspector General investigation of State’s entire review process.

Study By and For Gas Industry, Connected to SUNY Buffalo Shale Resources and Society Institute

Though published under the auspices of LA County, the study wasn’t even paid for by the County at all. Rather, as Vives explained in his Times article, the oil and gas industry paid for the entire enchilada:

Plains Exploration and Production Co., the owner and operator of the oil field, paid for the review as part of a settlement agreement with Culver City and environmental and community groups. The report was reviewed by two independent firms selected by the company and Los Angeles County.

Vives never identified the “independent firms” serving as the peer reviewers, but the study itself, which contains the five-page peer review paper, reveals two reviewers: JP Martin Energy Strategy LLC and Peter Muller.

JP Martin Energy Strategy is a consulting firm run by John Martin. Martin also serves as Director of the increasingly controversial SUNY Buffalo Shale Resources and Society Institute (SRSI). He is credited with publishing “the initial research on the natural gas potential of New York’s Utica Shale that helped stimulate significant industry investment in this resource,” according to the biographical sketch on his consulting firm’s website.

Muller formerly served as a Senior Geologist for Alpha Geoscience, where from Jan. 2010-March 2012, he researched “shale gas development issues” including “flowback treatment, stray gas, [and] permitting,” according to his LinkedIn page. He now serves in a consulting capacity for various hydraulic fracturing projects for the shale gas industry.

Miller and Muller closed their five-page peer review paper by writing, “Upon review, we both feel, based on information provided us and our own experience, that the report is adequate, complete and accurate and reflected thoughtful consideration for our comments and suggestions.”

This situation parallels what DeSmog wrote about in our first ever article on the SRSI, as the “peer review” panel for its first ever study had four out of five members on the payroll of the oil and gas industry.

Stars Aligning for Shale Gas Industry’s California Dreamin’

Concerned that the Inglewood study was conducted by and for the shale gas industry, Damon Nagami of the Natural Resources Defense Council wrote, “we need additional review from independent experts who have no financial stake in the study’s outcome.” But the recent history of the Keystone XL pipeline review process shows that’s highly unlikely.

The stars, it seems, are aligning quickly in the City of Angels for the oil and gas industry, with “this area…quietly becoming the hottest potential investment in the West,” according to an August 2011 story in San Luis Obispo’s New Times, which reported that the Monterey Shale has upwards of 15 billion barrels of recoverable oil.

It’s “California Dreamin‘” for the oil and gas industry in the Monterey Shale. Will that mean a “California Nightmare” for everyone else?

Update: In an interview with DeSmogBlog, Paul Ferrazzi, Co-Founder of Citizens Coalition for a Safe Community, stated the following:

“Unfortunately, given the Settlement Agreement terms acceptable to all parties involved and the history of the implementation of the agreement by both the County and PXP one could only assume the results would be favorable to the oil operator and industry. We wish we could have some confidence in this study but given the study preparing company’s as well as the peer reviewer’s direct advocacy for the industry we do not feel it was adequately conducted, properly reviewed, or that the public should take comfort in the conclusions of the study.

If anything, this study raises more questions than it answers. The public should be able to ask for clarification and further support for the authors’ contentions. CCSC urges the County to use the study as a starting point for further discussion, and allow public participation and informative responses to test the validity, assumptions and conclusions of the study.”