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

2:20 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

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

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

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

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

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

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

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

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

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

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

“No Uncertain Terms”

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

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

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

Executive Order 13604

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

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Gen. James Jones Didn’t Disclose Industry Ties Before Testimony at KXL Hearing

12:40 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

The U.S. Senate Foreign Relations Committee held a hearing today (March 13) on the U.S. State Department’s national interest determination for the northern half of the proposed TransCanada Keystone XL tar sands pipeline.

Four witnesses will testify: Keystone XL proponent Karen Alderman Harbert, the president and CEO of the U.S. Chamber of Commerce’s Institute for 21st Century Energy; retired NASA climatologist James Hansen, an adjunct professor at Columbia University’s Earth Institute and Keystone XL opponent; and Sierra Club Executive Director Michael Brune, another critic of the Keystone XL.

And then there’s James Jones. He’s set to testify on behalf of the pipeline, with his affiliation listed as President of Jones Group International. He won’t be testifying at the request of the committee’s Democrats, but rather its Republicans, even though he formerly served as national security adviser to President Barack Obama.

Described as offering ”high level advisory and consulting services in the areas of international energy policy,” Jones Group — which doesn’t list its clients — is far from Jones’ only career gig.

DeSmogBlog investigation has revealed Jones has several oil and gas industry ties that weren’t disclosed to the Senate Foreign Relations Committee before the hearing.

Among other ties, BuzzFeed recently revealed Jones currently serves as a consultant for the American Petroleum Institute (API), which has spent over $22 million lobbying on behalf of Keystone XL since 2008. Environmental Resources Management, Inc. (ERM Group) — the contractor chosen by the State Department to conduct the environmental review for the pipeline — is an API member.

Friends of the Earth made a public call to Jones to reveal his client list ahead of his Senate testimony.

“Our representatives in Congress have a right to learn all of the pertinent facts about the Keystone XL pipeline unfiltered by corporate special interests,” reads the letter. “Disclosing all relevant payments from interests advocating for or against the pipeline will help our representatives decide how to balance the competing information they are sure to receive.”

Below are some of Jones’ clients, revealed by a DeSmogBlog investigation.

U.S. Chamber of Commerce and Chevron

Prior to joining President Obama’s  team as national security adviser in 2008, Jones served as the President and CEO of the U.S. Chamber of Commerce’s Institute for 21st Century Energy, a position he held since March 2007.

According to a January 2014 U.S. Chamber conference call, Jones met Chamber CEO Tom Donohue at the World Economic Forum in Davos, Switzerland in February 2007. That’s where the two first talked about the idea of creating the institute.

During his time heading the institute, Jones earned $900,000. Jones also simultaneously served on Chevron’s Board of Directors from May - December 2008, earning $290,000.

After serving as President Obama’s national security advisor for just under two years — stepping down in October 2010 from what Democracy Now! host Amy Goodman called “Chevron in the White House“ — Jones picked up where he left off and became a U.S. Chamber of Commerce Fellow, a position he still holds today.

Jones is now intricately involved in the Chamber’s “Energy Works for U.S.” campaign launched in January 2014. The campaign’s policy platform includes endorsement of the Alberta tar sands expansion and Keystone XL as a vehicle through which to bring tar sands to market.

Some of the Chamber Board of Directors‘ members are oil and gas company executives, including representatives of ConocoPhillips and Phillips 66. The New York Times revealed Chevron is a Chamber member in an October 2010 article.

Chevron gave Senate Foreign Relations Committee members $25,000 for the 2012 elections.

Atlantic Council

While sitting as CEO and President of the Institute for 21st Century Energy, Jonesconcurrently served as Chairman of the Atlantic Council from 2007-2009, a position he held until becoming President Obama’s National Security Adviser. He now sits as the Founding Chairman of the Council’s Brent Scowcroft Center on International Security.

The Council has a domestic oil and gas industry corporate membership list that includes Chevron, General Electric, ConocoPhillips, ExxonMobil and a foreign oil and gas industry corporate membership list including BP, Eni, Shell, Setgaz, Trans Adriatic Pipeline, Oil Terminal SA, Nabucco and Transgaz, among others.

Van Scoyoc Associates

Jones also serves an adviser for the powerful lobbying firm Van Scoyoc Associates, a position he was named to in July 2011. National Journal explained Jones will provide Van Scoyoc with “advice relating to client-service improvements, market trends, and strategic planning.”

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ALEC’s Fracking Chemical Disclosure Bill Moving Through Florida Legislature

2:16 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog 

A sticker of the Monopoly game's mascot, Uncle Moneybags, labelled ALEC

ALEC is polluting environmental law in Florida.

The American Legislative Exchange Council’s (ALEC) model bill for disclosure of chemicals injected into the ground during the controversial hydraulic fracturing (“fracking”) process is back for a sequel in the Sunshine State legislature.

ALEC’s model bill was proposed by ExxonMobil at its December 2011 meeting and is modeled after a bill that passed in Texas’ legislature in spring 2011, as revealed in anApril 2012 New York Times investigative piece. ALEC critics refer to the pro-business organization as a “corporate bill mill” lending corporate lobbyists a “voice and a vote” on model legislation often becoming state law.

The bill currently up for debate at the subcommittee level in the Florida House of Representatives was originally proposed a year ago (as HB 743) in February 2013 and passed in a 92-19 vote, but never received a Senate vote. This time around the block (like last time except for the bill number), Florida’s proposed legislation is titled the Fracturing Chemical Usage Disclosure Act (HB 71), introduced by Republican Rep. Ray Rodrigues. It is attached to a key companion bill: Public Records/Fracturing Chemical Usage Disclosure Act (HB 157).

HB 71 passed on a party-line 8-4 vote in the Florida House’s Agriculture and Environment Subcommittee on January 14, as did HB 157. The next hurdle the bills have to clear: HB 71 awaits a hearing in the Agriculture and Environment Appropriations Subcommittee and HB 157 awaits one in the Government Operations Subcommittee.

Taken together, the two bills are clones of ALEC’s ExxonMobil-endorsed Disclosure of Hydraulic Fracturing Fluid Composition Act. That model — like HB 71 — creates a centralized database for fracking chemical fluid disclosure. There’s a kicker, though. Actually, two.

First kicker: the industry-created and industry-owned disclosure database itself —FracFocus — has been deemed a failure by multiple legislators and by an April 2013 Harvard University Law School study. Second kicker: ALEC’s model bill, like HB 157, has a trade secrets exemption for chemicals deemed proprietary.

First “Halliburton Loophole,” then “ExxonMobil Loophole”

Back when the ALEC model bill was debated in the Texas legislature in spring 2011 (and before it was endorsed by ExxonMobil and eventually adopted as a model by ALEC), the bill was touted as an antidote to the lack of transparency provided at the federal level on fracking chemicals by both industry and environmental groups, such as the Environmental Defense Fund and the Texas League of Conservation Voters (LCV).

“[T]his is proof positive that the public, environmental groups, and the state’s energy industry can work together to ensure the health and safety of Texans,” the Texas LCV said in May 2011.

Rep. Rodrigues said he was impressed by these dynamics when researching the bill online in comments provided by email to DeSmogBlog.

“I was pleased to see the Environmental community and the Energy community jointly draft this legislation,” he said.

The lack of federal level transparency is mandated by law via the Energy Policy Act of 2005, as outlined in a sub-section of the bill best known as the “Halliburton Loophole.”

The “Halliburton Loophole” — named such because Halliburton is an oil services company that provides fracking services and because when it was written, the company’s former CEO, Dick Cheney, was vice president of the United States and oversaw the industry-friendly Energy Task Force — gives the oil and gas industry a free pass on fracking chemical disclosure, deeming the chemicals injected into the ground during the process a trade secret.

Yet, far from an antidote to the “Halliburton Loophole,” a new loophole has been created in its stead at the state level — the “ExxonMobil Loophole” — which now has the backing of ALEC. The results haven’t been pretty.

An August 2012 Bloomberg News investigation revealed FracFocus merely offers the façade of disclosure, or a “fig leaf” of it, as U.S. Rep. Diane DiGette (D-CO) put it in the piece.

“Energy companies failed to list more than two out of every five fracked wells in eight U.S. states from April 11, 2011, when FracFocus began operating, through the end of last year,” wrote Bloomberg. “The gaps reveal shortcomings in the voluntary approach to transparency on the site.”

As we reported on DeSmogBlog in December 2012, FracFocus is a public relations front for the oil and gas industry:

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 →

US Court Denies Halt on Pipeline Set to Replace Keystone XL Northern Half

2:31 pm in Uncategorized by Steve Horn

It’s like deja-vu, all over again.

Cross-Posted from DeSmogBlog

The ever-wise Yogi Berra once quipped “It’s like déjà vu all over again,” a truism applicable to a recent huge decision handed down by the United States District Court for the District of Columbia.

A story covered only by McClatchy News‘ Michael Doyle, Judge Ketanji Brown Jackson shot down Sierra Club and National Wildlife Federation’s (NWF) request for an immediate injunction in constructing Enbridge’s Flanagan South tar sands pipeline in a 60-page ruling.

That 600-mile long, 600,000 barrels per day proposed line runs from Flanagan, Illinois – located in the north central part of the state – down to Cushing, Oklahoma, dubbed the “pipeline crossroads of the world.” The proposed 694-mile, 700,000 barrels per day proposed Transcanada Keystone XL northern half also runs to Cushing from Alberta, Canada and requires U.S. State Department approval, along with President Barack Obama’s approval.

Because Flanagan South is not a border-crossing line, it doesn’t require the State Department or Obama’s approval. If Keystone XL’s northern half’s permit is denied, Flanagan South – along with Enbridge’s proposal to expand itsAlberta Clipper pipeline, approved by Obama’s State Department during Congress’ recess in August 2009 - would make up that half of the pipeline’s capacity and then some.

At issue in the District Court was the legality of the U.S. Army Corps of Engineers issuing a Nationwide Permit 12 to shove through the Flanagan South (much like the Appeals Court case covered here on DeSmogBlog just weeks ago with Transcanada’s Keystone XL’s southern half, rebranded the “Gulf Coast Pipeline Project” by Transcanada).

Sierra Club and NWF argued for an injunction – or halt – in constructing and pumping tar sands through Flanagan South until the legality of issuing a Nationwide Permit 12 is decided, an issue still awaiting the decision of Judge Jackson. Like the Keystone XL southern half case, Nationwide Permit 12 was used instead of going through the National Environmental Policy Act (NEPA).

NEPA – unlike the fast-track Nationwide Permit 12 - requires the EPA to issue a full draft Environmental Impact Statement and final Environmental Impact Statement, with 1-2 month public commenting periods following each Statement. EPA must take public comments into account when making its final judgments on pipeline projects.

Use of Nationwide Permit 12 has quickly become a “new normal” for fast-track approval of tar sands pipelines and other controversial domestic energy infrastructure projects.

Corporate Profits vs. Environmental Harms

Judge Jackson - an Obama appointee with a legal background predominantly in corporate law - boiled down the competing parties’ arguments into a “harms” balancing test: Enbridge’s corporate profits vs. irreparable environmental and ecological harms Enbridge’s Flanagan South may cause.

She wasted little time getting to the point, issuing her judgment denying Sierra Club’s and NWF’s injunction request by the second paragraph on the second page of the ruling. She then spent the next 58 pages giving in-depth legal justifications as to why.

“Plaintiffs have significantly overstated the breadth of federal involvement in the pipeline project and have failed to establish sufficiently that applicable federal statutes and regulations would require the extensive environmental review process that Plaintiffs seek,” Jackson wrote. “Moreover, Plaintiffs have fallen short of demonstrating that irreparable harm will result if the current construction proceeds during the pendency of this litigation, and the Court is not convinced that the balance of harms and public interest factors weigh in Plaintiffs’ favor.”

Flanagan Shrouded in Secrecy

One of the major grievances of Sierra Club and NWF had – like Sierra Club had with the Army Corps of Engineers permitting for Keystone XL’s southern half – is that Nationwide Permit 12 generally deals with small projects deemed “single and complete,” usually half an acre in size or less. Read the rest of this entry →

US Court: Transcanada’s Keystone XL Profits More Important than Environment

3:58 am in Uncategorized by Steve Horn

pipeline

The financial needs of the Transcanada outweigh the needs of the environment, says US court

In a major ruling that’s flown under the radar, the U.S. Court of Appeals for the Tenth Circuit – based in Denver, Colorado — decided not to grant the Sierra Club and Clean Energy Future Oklahoma a temporary injunction on the construction of the southern half of Transcanada’s Keystone XL tar sands export pipeline.

The Court’s decision hinged on an “injury” balancing test: Would Transcanada be hurt more financially from receiving an injunction? Had it lost, it would be stuck with one until Sierra Club, et al receive a U.S. District Court decision on the legality of the U.S. Army Corps of Engineers’ decision to grant Transcanada a Nationwide Permit 12 (NWP 12) for construction of what’s now called the Gulf Coast Pipeline in February 2012.

Or would ecosystems suffer even greater and potentially incalculable damage from the 485-mile, 700,000 barrels per day pipeline crossing 2,227 streams?

In a 2-1 decision, the Court sided with Transcanada, and by extension, the U.S. Army Corps of Engineers. The Court ruled, “the threatened environmental injuries were outweighed by the financial harm that the injunction would cause Transcanada.”

Commenting on the case brought by Sierra Club, et al, Judge Jerome A. Holmes and Judge Paul J. Kelly, Jr. — appointees of President George W. Bush and President George H.W. Bush, respectively – shot down the arguments sharply.

Holmes and Kelly ruled that Sierra Club, et al failed to show how the pipeline will have a significant environmental impact despite the fact it’s been deemed a “fuse to the biggest carbon bomb on the planet” by retired NASA climate scientist James Hansen.

Construction of Keystone XL’s southern half — subject of significant grassroots activism by the Tar Sands Blockade and others — is now nearly complete. Tar sands dilbit is slated to begin to flow through it in early 2014.

NWP 12: “New Normal” for Tar Sands Pipeline Approval

After protestors succeeded initially in delaying Keystone XL, Big Oil has chosen a “new normal” stealth approval method: the non-transparent NWP 12.

This avoids the more strenuous National Environmental Protection Act permitting process overseen by the Environmental Protection Agency (EPA), which requires public hearings and public comments for major federal pipeline projects. NEPA compels the EPA to take comments into account in response throughout the Environmental Impact Statement phase, allowing robust public participation in the process.

Sierra Club Staff Attorney Doug Hayes explained in an interview with DeSmogBlog that NWP 12 is for utility projects with up to a half an acre of stream or wetland impacts, and has never been used for tar sands pipelines before Keystone XL’s southern half.

The southern half of the pipeline was approved via Executive Order by President Barack Obama in March 2012, directly after Obama gave a speech in front of a Cushing, OK pipeyard.

“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.

Utilizing tricky legal loopholes, Transcanada used NWP 12 to push through Keystone XL’s southern half in February 2012, calling each half acre segment of Keystone XL’s southern half a “single and complete project.” The Army Corps of Engineers agreed despite the fact that Transcanada refers to the pipeline at-large as the “Gulf Coast Pipeline project.”

“What the Corps is doing is artificially dividing up these massive pipelines, treating them as thousands of individual projects to avoid environmental review,” Hayes explained. ” In this case, there were 2,227 crossings of federal waterways, so the Corps has treated the Gulf Coast Pipeline as 2,227 ‘single and complete projects,’ each of which qualifies under NWP 12.”

Why, I asked Hayes?

“The Corps artificially treats these massive pipelines as thousands of individual projects so as to qualify under NWP 12 and avoid NEPA compliance.”

NWP 12 has also been utilized by Enbridge for the Flanagan South Pipeline, a 600-mile, 600,000 barrels per day pipeline set to shuttle tar sands crude from Flanagan, IL to Cushing, OK, crossing over 2,000 streams. That pipeline is scheduled to begin operations in mid-2014, demonstrating how NWP 12 is the “new normal” way to fast-track domestic tar sands pipelines.

Dissent: Laws Violated, Economic Harm Transcanada’s Fault

Perhaps the biggest irony of the Appeals Court decision is that Judges Holmes and Kelly barely grappled with the central issue of the legal challenge to begin with: using NWP 12 rather than going through the NEPA process.

Read the rest of this entry →

Obama DOE Issues 1st Marcellus Shale Fracked Gas Export Permit

3:59 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

LNG carrier ship

Fracking gas from Marcellus Shale may soon be headed overseas.

The U.S. Department of Energy (DOE) has granted the first ever LNG export permit license to Dominion Resources, Inc. to export gas obtained from the controversial hydraulic fracturing (“fracking”) process in the Marcellus Shale basin.

It’s the fourth ever export terminal approved by the DOE, with the three others along the Gulf Coast: Cheniere’s Sabine Pass LNG, Freeport LNG (50-percent owned by ConocoPhillips) and Lake Charles Exports, LLC.

Located in Lusby, Maryland, the Dominion Cove Point LNG terminal will be a key regional hub to take gas fracked from one of the most prolific shale basins in the world — the Marcellus — and ship it to global markets, with shale gas exports a key geopolitical bargaining chip with Russia, the biggest producer of conventional gas in the world.

Dominion owns not only Cove Point, but also the pipeline infrastructure set to feed the terminal.

“Dominion … owns both the existing Cove Point LNG Terminal and the 88-mile Cove Point pipeline,” explained industry publication LNG Global. “Dominion Cove Point … stated in their application that natural gas will be delivered to the Cove Point Pipeline from the interstate pipeline grid, thereby allowing gas to be sourced broadly.”

DOE handed Dominion a permit lasting a generation.

“Subject to environmental review and final regulatory approval, the facility is conditionally authorized to export at a rate of up to 0.77 billion cubic feet of natural gas a day (Bcf/d) for a period of 20 years,” LNG Global further explained.

It’s a decision that is set to affect the course of U.S. energy markets, the global climate system and sensitive ecosystems for decades to come.

With the DOE authorizing Dominion to export gas from Cove Point, Maryland, “it is deeply disappointing to see that Secretary [Ernest] Moniz persists in leading the nation and the world into a dirty energy future. It’s a bad deal all around: for public health, the environment, and America’s working people,” the Sierra Club said in a statement.

“Exporting LNG to foreign buyers will lock us into decades-long contracts, which in turn will lead to more drilling — and that means more fracking, more air and water pollution, and more climate-fueled weather disasters like record fires, droughts, and superstorms like last year’s Sandy…As we have shown, once environmental impacts are evaluated, it becomes clear that the additional fracking and gas production exports would induce is unacceptable.”

“Dominion” means “the act or fact of ruling” and today in the Marcellus it equates to the “golden rule”: he who has the gold makes the rules, in which Marcellus fracked gas will soon flow to the highest bidder on the global market.

Read the rest of this entry →

Obama Patron Warren Buffett Buys Over $500 Million of Suncor Tar Sands Stock

1:01 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

President Obama bestowing the Medal of Freedom on Warren Buffett

Warren Buffett — the fourth richest man on the planet and major campaign contributor to President Barack Obama in 2008 and 2012 – may soon get a whole lot richer.

That’s because he just bought over half a billion bucks worth of Suncor Energy stock: $524 million in the second quarter of 2013, to be precise, according to Securities and Exchange Commission filings. Suncor is a major producer and marketer of tar sands via its wholly owned subsidiary Petro-Canada (formerly Sunoco) and this latest development follows a trend of Buffett enriching himself through dirty investments and deal-making.

So far in 2013, Suncor (formerly Sun Oil Company) has produced 328,000 barrels per day of tar sands crude.

Though he receives far less negative press than the Koch Brothers, Buffett’s no deep green ecologist. Not in the slightest.

Referred to as one of 17 “Climate Killers” by Rolling Stone‘s Tim Dickinson in a January 2010 story, Buffett owns the behemoth holding company, Berkshire Hathway. It’s through Berkshire that he’s making a killing – while simultaneously killing the ecosystem – through one of its most profitable wholly-owned assets: Burlington Northern Santa Fe (BNSF).

Buffett purchased BNSF for $26 billion and was “the largest acquisition of Buffett’s storied career,” Dickinson wrote.

BNSF hauls around frac sand for the controversial horizontal oil and gas drilling process known as “fracking.” The rail company also moves fracked oil from North Dakota’s Bakken Shale basin, tar sands logistical equipment and tar sands crude itself and tons of coal. And not only does Buffett’s BNSF haul around ungodly amounts of coal, he actually owns coal-burning utility companies, too.

“BNSF is the nation’s top hauler of coal, shipping some 300 million tons a year. That’s enough to light up 10 percent of the nation’s homes — many of which are powered by another Berkshire subsidiary, MidAmerican Energy,” Dickinson explained.

Beyond MidAmerican Energy, Buffett also owns the coal-burning PacifiCorp and his BNSF freight trains are largely responsible for the coal export boom unfolding in the northwest corridor of the United States.

“PacifiCorp…owns the most coal plants in the West and recently unveiled a long-term energy plan that did not include a single wind project over the next ten years,” explained a recent blog post written by the Sierra Club. “And Warren Buffett is still involved with one of the biggest coal-burning schemes of all — ongoing plans to export coal…to…Asia.”

“Buffett’s BNSF Railway would be the primary transporter of that coal, and the company has tried to get the coal export terminals approved over the objections of thousands of activists across the Pacific Northwest.”

And as his slam dunk, Buffett also has plans to convert BNSF’s freight trains to utilize fracked shale gas. He then plans to use those same shale gas-powered trains to transport fracked shale oil from North Dakota (5-percent of BNSF’s total shipments and 190,000 cars/week), a win-win for Buffett and a lose-lose for the ecosystem and the climate.

“We have a couple locomotives we’re experimenting with this year on it. The railroads are definitely experimenting with converting to natural gas,” he told CNBC’s Jim Cramer in a March 2013 interview. “[Y]ou’ve got to look at converting any kind of an engine to natural gas.”

‘Tis quite the list of “dirty deeds” by the man coined the “Oracle of Omaha.” And relative to his uber-wealth – to cue up the AC/DC – they’re “done dirt cheap.” Read the rest of this entry →

Exposed: Stratfor’s 3-Step Plan To Conquer & Divide Activists

5:51 pm in Uncategorized by Steve Horn

Cross-Posted from Mint Press News

Part 1 of this exclusive Mint Press News investigation examined the strategies employed by Stratfor precursor Pagan International. So named for its founder Rafael Pagan, corporate clients hired the company with the aim of diffusing grassroots movements mobilized against them around the world.

Stratfor logo

A look at Strategic Forecasting, the private intelligence agency.

Part 2 takes a closer look at how Pagan International’s successor, Mongoven, Biscoe & Duchin (MBD), revised and refined these strategies — and how what began as a corporate public-relations firm evolved into the private intelligence agency Stratfor, which wages information warfare against today’s activists and organizers.

Rafael Pagan — who died in 1993 — was not invited to be a part of his former associate’s new firm, Mongoven, Biscoe & Duchin. His tactic of conquering and dividing activist movements and isolating the “fanatic activist leaders” lived on, though, through his former business partner, Jack Mongoven.

Mongoven teamed up with Alvin Biscoe and Ronald Duchin to create MBD in 1988. While “Biscoe appears to have been a largely silent partner at MBD,” according to the Center for Media and Democracy, Mongoven and Duchin played public-facing starring roles for the firm.

Duchin, like Pagan, had a military background. A graduate of the U.S. Army War College and “one of the original members of [Army] DELTA” — part of the broader Joint Special Operations Command that killed Osama Bin Laden — Duchin had jobs as a special assistant to the secretary of defense and as spokesman for Veterans for Foreign Wars prior to coming to Pagan.

Duchin served as head of the Pentagon’s news division during “Operation Eagle Claw,” President Jimmy Carter’s failed 1980 mission to use special forces to capture the hostages held in Iran.

Referred to by The Atlantic as the “Desert One Debacle” in a story Duchin served as a key confidential source for — as revealed in an email in the “Global Intelligence Files” announcing Duchin’s 2010 death — “Eagle Claw” ended with eight U.S. troops dying, four wounded, one helicopter destroyed, and President Carter’s reputation in the tank. The failed and lethal mission served as the impetus for the creation of the U.S. Special Operations.

Largely avoiding the limelight while working as Pagan’s vice president for Issue management and strategy — the brains of the operation — Duchin became a notorious figure among dedicated critical observers of the public relations industry while co-heading MBD. During MBD’s 15 years of existence, its clients included Big Tobaccothe chemical industryBig Agriculture and probably many other industries never identified due to MBD’s secretive nature.

MBD worked on behalf of Big Tobacco to fend off any and all regulatory efforts aimed in its direction. Philip Morris paid Jack Mongoven $85,000 for his intelligence-gathering prowess in 1993.

Get Government Off Our Back,” an RJ Reynolds front group created in 1994 by MBD for the price of $14,000 per month, serves as a case in point of the type of work MBD was hired to do by Big Tobacco.

“The firm has developed initiatives for RJ Reynolds that advocate pro-tobacco goals through outside organizations; among other projects, the firm organized veterans organizations to oppose the workplace smoking regulation proposed by OSHA,” explains a 2007 study appearing in the American Journal of Public Health. “[It] was created to combat increasing numbers of proposed federal and state regulations on the use and sale of tobacco products.”

Paralleling the Koch Family Foundations-funded Americans for Prosperity groups of today, “Get Government Off Our Back” held rallies nationwide in March 1995 as part of “Regulatory Revolt Month.”

“Get Government Off Our Back” dovetailed perfectly with the Republican Party’s 1994 “Contract with America” that froze new federal regulations. The text of the “Contract” matched “Get Government Off Our Back” “nearly verbatim,” according to the American Journal of Public Health study.

‘Radicals, Idealists, Realists, Opportunists’

While its client work was noteworthy, the formula Duchin created to divide and conquer activist movements — a regurgitation of what he learned while working under the mentorship of Rafael Pagan — has stood the test of time. It is still employed to this day by Stratfor.

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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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