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Wed, 2014-07-23 14:16Steve Horn
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Not Just the Atlantic: Obama Leasing Millions of Gulf Acres for Offshore Drilling

Deploying the age-old “Friday news dump,” President Barack Obama's Interior Department gave the green light on Friday, July 18 to companies to deploy seismic air guns to examine the scope of Atlantic Coast offshore oil-and-gas reserves.

It is the first time in over 30 years that the oil and gas industry is permitted to do geophysical data collection along the Atlantic coast. Though decried by environmentalists, another offshore oil and gas announcement made the same week has flown under the radar: over 21 million acres of Gulf of Mexico offshore oil and gas reserves will be up for lease on August 20 in New Orleans, Louisiana at the Superdome. 

On July 17, the U.S. Department of Interior's Bureau of Ocean Energy Management (BOEM)  announced the lease in the name of President Obama's “all of the above” energy policy

“As part of President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production, BOEM…today announced that the bureau will offer more than 21 million acres offshore Texas for oil and gas exploration and development in a lease sale that will include all available unleased areas in the Western Gulf of Mexico Planning Area,” proclaimed a July 17 BOEM press release.

The release says this equates to upwards of 116-200 million barrels of oil and 538-938 billion cubic feet of natural gas and falls under the banner of the U.S.-Mexico Transboundary Hydrocarbon Agreement

That Agreement was signed into law on December 26, 2013. It served as a precursor to the recently-passed Mexican oil and gas industry privatization reforms, which have opened the floodgates to international oil and gas companies to come into Mexico for onshore and offshore oil and gas exploration and production.  

Fri, 2014-06-27 07:00Steve Horn
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Exclusive: North Dakota Oil-By-Rail Routes Published for First Time

For the first time, DeSmogBlog has published dozens of documents obtained from the North Dakota government revealing routes and chemical composition data for oil-by-rail trains in the state carrying oil obtained via hydraulic fracturing (“fracking”) in the Bakken Shale.

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

North Dakota's Department of Emergency Services, working in consultation with the North Dakota Office of the Attorney General, made the documents public a couple weeks after DeSmogBlog filed a June 13 North Dakota Public Records Statute request.

“There is no legal basis to protect what they have provided us at this point,” North Dakota assistant attorney general Mary Kae Kelsch said during the June 25 Department of Emergency Service's quarterly meeting, which DeSmogBlog attended via phone. “It doesn't meet any criteria for our state law to protect this.” 

Initially, oil-by-rail giant Burlington Northern Santa Fe (BNSF) and other rail companies sent boilerplate letters — one copy of which has been obtained by DeSmogBlog from the Idaho Bureau of Homeland Security through the state's Public Records Act — to several State Emergency Response Commissions (SERCs), arguing train routes should be kept confidential.

BNSF also sent several SERCs a boilerplate contract proposal, requesting that they exempt the information rail companies were compelled to submit to the SERCs under the DOT Emergency Order from release under Freedom of Information Act. A snippet of the proposed contract can be seen below: 

Dan Wilz, homeland security division director and state security advisor of the Department of Emergency Services, said the claims did not hold legal water. 

“Joe can stand on a street corner and figure that out within a week's period,” Wilz said at the quarterly meeting. “They watch the trains go through their community each and every day.”

BNSF, Canadian Pacific Railway (CP Rail) and Northern Plains Railroad all submitted information to the Department of Emergency Services.

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

Thu, 2014-06-26 14:22Farron Cousins
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Obama Administration Secretly Weakening EPA Rules

One of highest hopes that environmentally-minded Americans had for President Obama when he first entered office was that he would finally put an end to the secrecy that marred the former Bush administration when it came to environmental policy. 

The image of then-Vice President Dick Cheney meeting in secret with dirty energy industry leaders was still fresh in our heads as we went to the polls in 2008, and we were all but certain that the country chose a leader that would leave those dark days in the past.

Sadly, those hopes for a policy change were dashed before the end of Obama’s first year.  He talked a big game on the campaign trail, but when it came to acting on those promises, that rhetoric proved to be just as hollow as his predecessor’s. 

Obama doubled down on coal, oil, and fracking, while allowing renewable energy investments to fall.  But the most disturbing part of the story is that Obama and his officials have been working in secret to weaken environmental standards that his administration has been patting themselves on the back for in public.

Recently, a federal judge expanded a Freedom of Information Act lawsuit that was filed against the Small Business Administration (SBA), which claims that officials within the White House Office of Management and Budget (OMB) has been working to weaken the Environmental Protection Agency’s (EPA) power plant pollution standards.  The administration has been dragging its feet in providing the information requested, even after the court ruling, which has led environmental groups to file a complaint against the White House.

At issue is the EPA’s failure to update standards for existing power plants as required by the Clean Air Act — a move that the U.S. Supreme Court had previously said was required of the agency.  The current rules have not been updated since 1982, and environmental groups say that the lack of updating is due to influence from the White House itself.

Fri, 2014-06-20 10:25Steve Horn
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Heather Zichal, Former Obama Energy Aide, Named to Board of Fracked Gas Exports Giant Cheniere

Heather Zichal, former Obama White House Deputy Assistant to the President for Energy and Climate Change, may soon walk out of the government-industry revolving door to become a member of the board of directors for fracked gas exports giant Cheniere, who nominated her to serve on the board. 

The announcement, made through Cheniere's U.S. Securities and Exchange Commission Form 8-K and its Schedule 14A, comes just as a major class-action lawsuit was filed against the board of the company by stockholders.

In reaction to the lawsuit, Cheniere has delayed its annual meeting. At that meeting, the company's stockholders will vote on the Zichal nomination.

The class-action lawsuit was filed by plaintiff and stockholder James B. Jones, who alleges the board gave stock awards to CEO Charif Souki in defiance of both a stockholders' vote and the company's by-laws. 

Souki — a central character in Gregory Zuckerman's book “The Frackers“ — became the highest paid CEO in the U.S. as a result of the maneuver, raking in $142 million in 2013, $133 million of which came from stock awards.

Cheniere CEO Charif Souki; Photo Credit: Getty Images

Zichal was nominated to join Cheniere's audit committee of the board, and will be paid $180,000 per year for the gig if elected.

Among the audit committee duties: “Prepare and review the audit committee report for inclusion in the proxy statement for the company's annual meeting of stockholders,” which is now set for September 11 after the push-back following the filing of the stockholder class-action lawsuit.

“The audit committee’s responsibility is oversight, and it recognizes that the company’s management is responsible for preparing the company’s financial statements and complying with applicable laws and regulations,” Cheniere's audit committee charter further explains.

Thu, 2014-06-19 09:57Steve Horn
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Silent Coup: How Enbridge is Quietly Cloning the Keystone XL Tar Sands Pipeline

While the debate over the TransCanada Keystone XL tar sands pipeline has raged on for over half a decade, pipeline giant Enbridge has quietly cloned its own Keystone XL in the U.S and Canada. 

It comes in the form of the combination of Enbridge's Alberta Clipper (Line 67), Flanagan South and Seaway Twin pipelines.

The pipeline system does what Keystone XL and the Keystone Pipeline System at large is designed to do: ship hundreds of thousands of barrels per day of Alberta's tar sands diluted bitumen (“dilbit”) to both Gulf Coast refineries in Port Arthur, Texas, and the global export market.

Alberta Clipper and Line 67 expansion

Alberta Clipper was approved by President Barack Obama and the U.S. State Department (legally required because it is a border-crossing pipeline like Keystone XL) in August 2009 during congressional recess. Clipper runs from Alberta to Superior, Wis.

Map Credit: U.S. Department of State

Initially slated to carry 450,000 barrels per day of dilbit to market, Enbridge now seeks an expansion permit from the State Department to carry up to 570,000 barrels per day, with a designed capacity of 800,000 barrels per day. It has dubbed the expansion Line 67.

As reported on previously by DeSmogBlog, Line 67 is the key connecter pipeline to Line 6A, which feeds into the BP Whiting refinery located near Chicago, Ill., in Whiting, Ind. BP Whiting — the largest in-land refinery in the U.S. — was recently retooled to refine larger amounts of tar sands under the Whiting Refinery Modernization Project.

Wed, 2014-06-18 07:06Justin Mikulka and Steve Horn
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White House Meeting Logs: Big Rail Lobbying Against "Bomb Train" Regulations It Publicly Touts

Lynchburg, Virginia Oil Train Explosion

The Obama White House Office of Information and Regulatory Affairs (OIRA) has held the majority of its meetings on the proposed federal oil-by-rail safety regulations with oil and gas industry lobbyists and representatives.

But OIRA meeting logs reviewed by DeSmogBlog reveal that on June 10, the American Association of Railroads (AAR) and many of its dues-paying members also had a chance to convene with OIRA

Big Rail has talked a big game to the public about its desire for increased safety measures for its trains carrying oil obtained via hydraulic fracturing (“fracking”) in the Bakken Shale. What happens behind closed doors, the meeting logs show, tells another story. 

At the June 12-13 Railway Age Oil-by-Rail Conference, just two days after rail industry representatives met with OIRA, American Association of Railroads President Edward Hamberg, former assistant secretary for governmental affairs at the U.S. Department of Transportation (DOT), made the case for safety. 

“Railroads believe that federal tank car standards should be raised to ensure crude oil and other flammable liquids are moving in the safest car possible based on the product they are moving,” said Hamberg.

The industry also wants the existing crude oil fleet upgraded through retrofits or older cars to be phased out as quickly as possible.”

Yet despite public declarations along these lines, proactive safety measures were off the table for all four of Big Rail's presentations to OIRA.  

Though private discussions, the documents made public from the meeting show one consistent message from the rail industry: safety costs big bucks. And these are bucks industry is going to fight against having to spend.

Thu, 2014-06-05 10:16Chris Rose
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Obama’s New Climate Regulations Could Bring More U.S. Coal to B.C. for Export

coal train, coal export, surrey fraser docks, BNSF

A new U.S. proposal to dramatically reduce carbon dioxide emissions from coal-fired power plants could result in more thermal coal being shipped to Asia through existing and planned port facilities in Metro Vancouver, people attending Port Metro Vancouver’s annual general meeting were told Tuesday.

[President Barack] Obama’s administration is changing the game,” Steven Faraher-Amidon said during a question period.

Faraher-Amidon also told the meeting that five schools in Delta and Surrey are within 700 metres of the contentious Fraser Surrey Docks coal handling proposal while medical studies in the U.S. have found that living within five kilometres of coal dust and diesel particulates presents significant health risks. A former Port Metro Vancouver environmental impact assessment that looked at the Fraser Surrey Docks terminal was criticized for being limited in scope and failing to adequately address public health concerns.

The 64-year-old retired Surrey teacher added a proper health impact assessment needs to be done before the Fraser Surrey Docks coal facility — which could eventually handle eight million tonnes annually — can be approved.

Tue, 2014-06-03 18:00Steve Horn
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Days Before Obama Announced CO2 Rule, Exxon Awarded Gulf of Mexico Oil Leases

On Friday May 30, just a few days before the U.S. Environmental Protection Agency announced details of its carbon rule proposal, the Obama Administration awarded offshore oil leases to ExxonMobil in an area of the Gulf of Mexico potentially containing over 172 million barrels of oil.

The U.S. Department of Interior's (DOI) Bureau of Ocean Energy Management (BOEM) proclaimed in a May 30 press release that the ExxonMobil offshore oil lease is part of “President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production.” 

Secretary of Interior Sally Jewell formerly worked as a petroleum engineer for Mobil, purchased as a wholly-owned subsidiary by Exxon in 1998.

Dubbed a “Private Empire” by investigative reporter Steve Coll, ExxonMobil will now have access to oil and gas in the Alaminos Canyon Area, located 170 miles east of Port Isabel, Texas. Port Isabel borders spring break and tourist hot spot South Padre Island.


Map Credit: U.S. Bureau of Ocean Energy Management

ExxonMobil originally won the three leases at the Western Planning Area Sale 233, held on March 19. BOEM records show ExxonMobil was the only company to participate in the bid and paid over $21.3 million.

Tue, 2014-06-03 14:39Carol Linnitt
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Obama’s New Climate Plan Leaves Canada in the Dust

In the ongoing battle to win approval of the Keystone XL pipeline, Canada has repeatedly justified its climate inaction by pointing to the fact that it shares similar emission reductions targets to the U.S. In August of last year, Prime Minister Stephen Harper even wrote a letter to President Barack Obama inviting “joint action to reduce greenhouse gas emissions in the oil and gas sector” if such efforts would help green-light the Keystone XL.

But this week’s announcement that Obama will use his executive authority to introduce a nationwide emissions reduction plan that targets more than 1,000 of the country’s most highly polluting power plants might leave Canada squarely in the dust.

Obama’s new plan — already being called the “most ambitious anti-global warming initiative of any U.S. president” — will introduce new standards by 2015 to decrease the greenhouse gas (GHG) emissions of power plants (responsible for 40 per cent of the country’s carbon pollution) by 30 per cent from their 2005 levels by 2030.

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