John Kerry

Wed, 2014-08-27 13:10Steve Horn
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State Dept. Overseers of Contentious Enbridge Tar Sands Pipeline Workaround Have Industry, Torture Ties

The Sierra Club, National Wildlife Federation (NWF) and other green groups recently revealed that pipeline giant Enbridge got U.S. State Department permission in response to its request to construct a U.S.-Canada border-crossing tar sands pipeline without earning an obligatory Presidential Permit.

Enbridge originally applied to the Obama State Department to expand capacity of its Alberta Clipper (now Line 67) pipeline in November 2012, but decided to avoid a “Keystone XL, take two” — or a years-long permitting battle — by creating a complex alternative to move nearly the same amount of diluted bitumen (“dilbit”) across the border.

The move coincides with the upcoming opening for business of Enbridge's “Keystone XL” clone: the combination of the Alberta Clipper expansion (and now its alternative) on-ramp originating in Alberta and heading eventually to Flanagan, Ill., the Flanagan South pipeline running from Flanagan, Ill. to Cushing, Okla. and the Cushing, Okla. to Port Arthur, Texas Seaway Twin pipeline.

Together, the three pieces will do what TransCanada's Keystone XL hopes to do: move dilbit from Alberta's tar sands to Port Arthur's refinery row and, in part, the global export market.

Environmental groups have reacted with indignation to the State Department announcement published in the Federal Register on August 18. The public commenting period remains open until September 17.

Jim Murphy, senior counsel for NWF, referred to it as an “illegal scheme,” while a representative from 350.org says Enbridge has learned from the lessons of its corporate compatriot, TransCanada.

“When we blocked Keystone XL, the fossil fuel industry learned that they have a much stronger hand to play in back rooms than on the streets,” said Jason Kowalski, policy director for 350.org. “They will break the law and wreck our climate if that's what it takes for them to make a buck.”

But as the old adage goes, it takes two to tango. 

That is, influential State Department employees helped Enbridge find a way to smuggle an additional 350,000 barrels of tar sands per day across the border without public hearings or an environmental review. 

Fri, 2014-06-27 01:00Steve Horn
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Revealed: Heather Zichal Met with Cheniere Executives as Obama Energy Aide Before Board Nomination

Heather Zichal, former deputy assistant for energy and climate change to President Barack Obama and nominee to sit on the board of directors of LNG export company Cheniere Energy Inc., held two meetings with Cheniere executives while working for the White House. 

White House meeting logs show Zichal attended the meetings with three executives from Cheniere, owner of the Sabine Pass LNG (liquefied natural gas) export facility, the first terminal to receive a final approval from the U.S. Federal Energy Regulatory Commission (FERC) during the hydraulic fracturing (“fracking”) boom.

The meetings appear to have taken place just over two weeks apart from one another, according to the meeting logs. The first meeting was on January 14, 2013, and the second on January 29, 2013. Just over eight months later, Zichal resigned from her White House job, with Reuters citing “plans to move to a non-government job.”

Cheniere CEO Charif Souki — who is facing a major ongoing class-action lawsuit — sat in on both of those meetings. He was joined by Cheniere executives Patricia Outtrim, vice president of governmental and regulatory affairs, and Ankit Desai, vice president of government relations.

Desai, a Cheniere lobbyist, formerly worked with Zichal on U.S. Secretary of State John Kerry's 2004 presidential campaign, serving as his budget director. Desai also formerly served as political director for then-U.S. Senator and now Vice President Joe Biden.


President Barack Obama (L), Heather Zichal (Center), Sec. of State John Kerry (R); Photo Credit: Facebook

Zichal served as Kerry's energy and environment policy adviser for the 2004 campaign and in 2006, became his legislative director, a job she held until becoming policy director for energy, environment and agriculture for President Barack Obama's 2008 presidential campaign

Tue, 2014-04-29 13:14Steve Horn
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TransCanada Charitable Fund Launches Keystone XL "Good Neighbor" Charm Offensive

TransCanada has taken a page out of former U.S. President Franklin Delano Roosevelt's playbook and deployed a public relations “charm offensive” in Texas, home of the southern leg of its Keystone XL tar sands pipeline now known as the Gulf Coast Pipeline Project.

In the 1930s and 1940s, Roosevelt utilized a “good neighbor policy“ — conceptualized today as “soft power” by U.S. foreign policy practitioners — to curry favor in Latin America and win over its public. Recently, TransCanada announced it would do something similar in Texas with its newly formed TransCanada Charitable Fund.

TransCanada has pledged $125,000 to 18 Texas counties over the next four years, funds it channeled through the East Texas Communities Foundation. In February, the company announced the first non-profit recipients of its initial $50,000 grant cycle.  

“The fund is designed to help improve East Texas communities and the lives of their residents through grants to qualifying non-profit organizations in the counties where TransCanada pipeline operations and projects exist,” explained a press release. “All funded projects and programs fall within three charitable categories: community, safety, and the environment.”

TransCanada utilizes the “good neighbor” language in deploying its own public relations pitch.

“At TransCanada, being a good neighbor and contributing to communities is an integral part of our success,” TransCanada's Corey Goulet said in a press release. “The establishment of the fund is another example of our commitment to long-term community investment and our dedication to the people of East Texas.”

Fri, 2014-04-18 12:05Steve Horn
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Keystone XL Review Extended, Delaying Final Decision Until After 2014 Elections

Reuters and Politico broke a major story today that TransCanada's northern leg of the Keystone XL tar sands pipeline will not be decided on until after the 2014 mid-term elections.

“The U.S. State Department will…extend the government comment period on the Keystone XL pipeline, likely postponing a final decision on the controversial project until after the November 4 midterm elections,” Reuters explained.

Secretary of State John Kerry and President Barack Obama have final say over whether the pipeline will be built because it crosses the U.S.-Canada border.

Reporters learned of the decision after a call between high-level congressional staff and State Department officials. 

“The justification is the need to wait on continued litigation over a Nebraska court decision earlier this year, which threw part of the project’s route in doubt, two sources said today after a call between the State Department and congressional staff,” reported Politico.

In the end, the decision came down to politics, according to Politico, though there are no shortage of climate change and ecological concerns for the prospective pipeline.

“A delay past November would spare Obama a politically difficult decision on whether to approve the pipeline, angering his green base and environmentally minded campaign donors — or reject it, endangering pro-pipeline Democrats,” they reported.

Thu, 2014-02-06 11:00Ben Jervey
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Tom Steyer to Secretary of State Kerry: New Review Necessary of "Defective" Keystone XL Environmental Assessment

With the State Department’s release of the final Keystone XL environmental review, attention is being refocused on apparent conflicts of interest within both the State Department itself and the consultancy hired to conduct the review.

Upon the release of the review – which is formally called the final supplemental environmental impact statement (or FSEIS) – Tom Steyer of NextGen Climate urged Secretary of State John Kerry to begin a formal review of the “defective” environmental analysis. In his February 2 letter to Secretary Kerry, Steyer writes that “It is inappropriate and unfair to provide President Obama … with a report that is not only on its face defective, but which has suffered from a process that raises serious questions about the integrity of the document.”

The review, argues Steyer, “has suffered from a process that raises serious questions about the integrity of the document.”

In his letter, Steyer lays out the following problems, which he argues undermine the entirety of the environmental impact statement:

Wed, 2014-02-05 10:00Steve Horn
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Keystone XL's Northern Leg: A Fracked Oil Pipeline Along with Tar Sands

On January 31, President Barack Obama's U.S. State Department released its Final Environmental Impact Statement (FEIS) for the northern leg of TransCanada's proposed Keystone XL tar sands pipeline.

The State Department's FEIS argues that the northern half of Keystone XL, if built, “remains unlikely to significantly impact the rate of extraction in the oil sands, or the continued demand for heavy crude oil at refineries in the United States.”

But flying under the media's radar so far, the State Department review also highlights the prospect that Keystone XL will not only carry tar sands, but also be tapped to carry up to 100,000 barrels per day of oil extracted via hydraulic fracturing (“fracking”) from North Dakota's Bakken Shale basin.

“[Keystone XL] would have the capacity to deliver up to 830,000 bpd, of which 730,000 bpd of capacity has been set aside for [tar sands] and the remaining 100,000 bpd of capacity set aside for [Bakken] crude oil,” the report details.

“[TransCanada] has represented that it has firm commitments to transport approximately 555,000 bpd of [tar sands], as well as 65,000 bpd of crude oil from the Bakken.”

A smaller proposed project owned by TransCanada called the Bakken MarketLink pipeline and incorporated as Keystone Marketlink LLC in February 2011, would ship the fracked oil to Keystone XL's northern leg as an “on ramp.” 

“This project would include a 5-mile pipeline, pumps, meters, and storage tanks to supply Bakken crude oil to the proposed pipeline,” explains the FEIS.

Fri, 2014-01-31 12:38Steve Horn
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State Department Releases Flawed Keystone XL Final Environmental Review In Super Bowl Friday Trash Dump

The State Department has released the Final Supplemental Environmental Impact Statement (SEIS) for the proposed northern leg of the controversial and long-embattled TransCanada Keystone XL tar sands pipeline.

In a familiar “Friday trash dump” — a move many expected the Obama administration to shun — John Kerry's State Department chose to “carefully stage-manage the report's release” on Super Bowl Friday when most Americans are switching focus to football instead of political scandals. **See bottom of this post for breaking analysis**

Anticipating the report’s release, insiders who had been briefed on the review told Bloomberg News the SEIS – not a formal decision by the State Department on the permitting of the pipeline, but rather another step in the department’s information gathering – “will probably disappoint environmental groups and opponents of the Keystone pipeline.”

And, indeed, the new report reads“Approval or denial of any one crude oil transport project, including the proposed Project, remains unlikely to significantly impact the rate of extraction in the oil sands, or the continued demand for heavy crude oil at refineries in the United States.”

This reiterates one of the earlier draft’s most heavily criticized conclusions that the pipeline is “unlikely to have a substantial impact on the rate of development in the oil sands,” and thus avoids a comprehensive assessment of those climate impacts.

In June 2013, President Obama said in a speech announcing his Climate Action Plan at Georgetown University that he would only approve the permit if it was proven that “this project does not significantly exacerbate the problem of carbon pollution.”  

The final environmental review is being released on the heels of damning revelations about the close ties between the Canadian pipeline builder, TransCanada and Environmental Resources Management (ERM). ERM was hired by the State Department to conduct the environmental review.

Tue, 2013-11-26 15:31Steve Horn
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Obama Approves Major Border-Crossing Fracked Gas Pipeline Used to Dilute Tar Sands

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.”

Tue, 2013-11-12 08:02Steve Horn
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Public Citizen Report Reveals Dents, Holes in Keystone XL Southern Half Weeks Before Planned Startup

The southern half of Transcanada's Keystone XL tar sands pipeline is supposed to begin pumping up to 700,000 barrels of diluted bitumen per day through the Cushing, OK to Port Arthur, TX route within weeks. But is it ready to operate safely?

Public Citizen has released a chilling report revealing that the 485-mile KXL southern line is plagued by dents, faulty welding, exterior damage that was patched up poorly and misshapen bends, among other troubling anomalies.

In conducting its investigative report, “Construction Problems Raise Questions About the Integrity of the Pipeline,” Public Citizen worked on the ground to examine 250 miles of the 485 mile pipeline's route. The group and its citizen sources uncovered over 125 anomalies in that half of the line alone. These findings moved Public Citizen to conclude the southern half of the pipeline shouldn't begin service until the anomalies are taken care of, and ponders if the issues can ever be resolved sufficiently.

After President Barack Obama temporarily denied a permit for Keystone XL's northern half in January 2012, the U.S. Army Corps of Engineers granted Keystone XL's south half a legally dubious Nationwide Permit 12 to expedite construction. Soon after, President Obama issued his own Executive Order in March 2012 calling for the expedited building of the south half in de facto support of the Corps' permit. 

An August report by industry intelligence firm Genscape said the pipeline, rebranded by Transcanada as the “Gulf Coast Project,” will ship tar sands dilbit through the line beginning in the first quarter of 2014. Now, the race to build the south half literally looks like it could come with major costs and consequences.  

Thu, 2013-08-15 14:50Steve Horn
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Mark Fiore Unveils "Keystone Clones" Cartoon on Keystone XL Corruption Ring

mark fiore tar sands timmy keystone xl

Mark Fiore - the Pulitzer Prize-winning political cartoonist satirist - has a new video out that in two-minutes pokes fun at the perverse conflicts of interest that've prevailed throughout debate over the prospective Keystone XL northern half.

It's these conflicts of interest that DeSmogBlog has focused on in the past several months since the March 2013 release of the sham U.S. State Department Keystone XL environmental review. Some of the conflicts of interest covered in Fiore's 2-minute video titled “Keystone Clones” now up on Moyers and Company's website include:

-Anita Dunn/Robert Bauer Scandal: Described as a “Power Couple” by NewsweekAnita Dunn is President Barack Obama's former communications director and was a top-level communications advisor for Obama's 2008 run for president and Secretary of State John Kerry's 2004 run for president. Through her PR firm SKDKnickerbocker, she does communications work for TransCanada, owner of the Keystone XL pipeline.

Her husband Robert “Bob” Bauer is Obama's personal attorney, former White House Counsel under Obama, and served as the election law attorney for Kerry in 2004 and Obama in 2008 and 2012. Infamous in election law reform circles for his attempts to bend election law in such a way as to flood the electoral system with more money, Bauer's law firm Perkins Coie also has an attorney-client relationship with TransCanada.

-ERM Group Scandals: Obama's State Department chose a Big Oil-connected contractor named Environmental Resources Management, Inc. (ERM Group) to do the environmental review for Keystone XL's northern half. ERM - which historically also did contract work for Big Tobacco - has rubber-stamped ecologically hazardous projects in the Caspian Sea-area, Peru, Delaware and now the Keystone XL.

Given this shady track record, it's unsurprising it also said the pipeline's northern half - if built - would have negligible climate change impacts. 

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