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Emails: How State Department Secretly Approved Expanding Piece of Enbridge's "Keystone XL Clone"

State Department Enbridge Emails

DeSmogBlog has obtained dozens of emails that lend an inside view of how the U.S. State Department secretly handed Enbridge a permit to expand the capacity of its U.S.-Canada border-crossing Alberta Clipper pipeline, which carries tar sands diluted bitumen (“dilbit”) from Alberta to midwest markets. 

The State Department submitted the emails into the record in the ongoing case filed against the Department by the Sierra Club and other environmental groups in the U.S. District Court for the District of Minnesota. Collectively, the emails show that upper-level State Department officials hastened the review process on behalf of Enbridge for its proposed Alberta Clipper expansion plan, now rebranded Line 67, and did not inform the public about it until it published its final approval decision in the Federal Register in August 2014.

According to a March 17, 2014 memo initially marked “confidential,” Enbridge's legal counsel at Steptoe & Johnson, David Coburn, began regular communications with the State Department on what the environmental groups have dubbed an “illegal scheme” beginning in at least January 2014. 

Enbridge State Department Emails
Image Credit: U.S. District Court for the District of Minnesota

Environmental groups have coined the approval process an “illegal scheme” because the State Department allowed Enbridge to usurp the conventional presidential permit process for cross-border pipelines, as well as the standard National Environmental Policy Act (NEPA) process, which allows for public comments and public hearings of the sort seen for TransCanada's Keystone XL pipeline.

Further, the scheme is a complex one involving Enbridge's choice to add pressure pump stations on both sides of the border to two pipelines, Enbridge Line 3 and Enbridge Line 67, to avoid fitting under the legal umbrella of a “cross-border” pipeline.

Hastening the approval process — and thus dodging both the conventional presidential permit and NEPA process — came up in a June 6, 2014 memo written by Coburn and his Steptoe co-counsel Josh Runyan. Enbridge's legal argument centered around ensuring profits for its customers “consistent with its obligations as a common carrier.”

State Department Enbridge Emails
Image Credit: U.S. District Court for the District of Minnesota

Four Years After Greenpeace Sting: PR Firm Dumps Oil Lobbyists

Crossposted from PolluterWatch.

Perhaps you heard the good news - the world's largest public relations firm, Edelman, just spun off an advertising subsidiary so that it could show a commitment to not aiding the denial of climate change science. The Guardian explains how API's contracts with Edelman were so massive–tens of millions of dollars–that it was up to 10% of the PR giant's income.

For years, Edelman has managed multi-million dollar contracts with the American Petroleum Institute (API), using its Blue Advertising subsidiary to help API run commercials selling fantasies to people: that oil and gas are our only viable, plentiful, “AMERICAN sources of energy.

In the saga that led Edelman to dump the lobbyists at API, Greenpeace had a small role to play: we infiltrated a commercial shoot, run by Edelman's Blue advertising arm for API. The commercials were to be called “Vote 4 Energy,” casting the illusion of mass popular demand for more oil and gas drilling (and more pollution, more climate change, and more government giveaways to prop it all up).

After being dressed up in a button-down, plaid orange shirt–I'm not sure what look they had in mind for me–I was put in front of the camera and told to repeat lines back. This despite the casting call for “REAL PEOPLE not Actors!” Huh.

Instead of telling them “I Vote” for oil and gas, I ran off script and demanded a prioritization of clean energy, not continued pandering to oil lobbyists at API. As I was ushered off set, the person I appealed to for a clean energy future was Robert McKernan, president of Blue Advertising, the company that Edelman is ditching. He was the last person I saw before being booted out of the studio rooms, and as we locked eyes, I appealed directly to him: “we need clean sources of energy, like wind and solar.” Here's a transcribed recording of that on-set disruption:

DeSmogCAST 11: Corporate Political Influence, UK Fracking and Rick Perry's Dirty Energy Ties

In this episode of DeSmogCAST, Farron Cousins, Carol Linnitt, Kyla Mandel and Brendan DeMelle kick things off with a discussion about corporate spending in Canada and how the oil and gas industry is moving money to influence political decisions and public debate.

Next Kyla Mandel explains the significance of a new law in the UK that will expose park lands to the dangers of fracking.

Finally Brendan DeMelle discusses new revelations of Rick Perry's ties to the pipeline industry in Iowa and how these connections may influence his chances of winning the Republican nomination for the 2016 Presidential run.

Enbridge Gets Another Federal Tar Sands Crude Pipeline Permit As Senate Debates Keystone XL

On January 16, the U.S. Army Corps of Engineers gave Enbridge a controversial Nationwide Permit 12 green-light for its proposed Line 78 pipeline, set to bring heavy tar sands diluted bitumen (“dilbit”) from Pontiac, Illinois to its Griffith, Indiana holding terminal.

The permit for the pipeline with the capacity to carry 800,000 barrels-per-day of tar sands dilbit came ten days after the introduction of S.1 — the Keystone XL Pipeline Act — currently up for debate on the U.S. Senate floor, which calls for the permitting of the northern leg of TransCanada's Keystone XL

Enbridge Line 78 Army Corps of Engineers Permit

Griffith is located just south of Whiting, Indiana, home of a massive refinery owned by BP. In November 2013, BP opened its Whiting Modernization Project, which retooled to refine up to 85-percent of its capacity as heavy dilbit from the tar sands, up from its initial 20-percent capacity.

Obama Signals Keystone XL "No" on Colbert Report As Enbridge "KXL Clone" He Permitted Opens

In his December 8 “Colbert Report” appearance, President Barack Obama gave his strongest signal yet that he may reject a presidential permit authorizing the Alberta to Cushing, Oklahoma northern leg of TransCanada's Keystone XL tar sands pipeline. 

Yet just a week earlier, and little noticed by comparison, the pipeline giant Enbridge made an announcement that could take the sails out of some of the excitement displayed by Obama's “Colbert Report” remarks on Keystone XL North. That is, Enbridge's “Keystone XL Clone” is now officially open for business

“Keystone XL Clone,” as first coined here on DeSmogBlog, consists of three parts: the U.S.-Canada border-crossing Alberta Clipper pipeline; the Flanagan, Illinois to Cushing Flanagan South pipeline; and the Cushing to Freeport, Texas Seaway Twin pipeline.

Enbridge announced that Flanagan South and its Seaway Twin connection are now pumping tar sands crude through to the Gulf of Mexico, meaning game on for tar sands to flow from Alberta to the Gulf through Enbridge's pipeline system.

Alberta Clipper, now rebranded Line 67, was authorized by Hillary Clinton on behalf of the Obama State Department in August 2009 and got a quasi-official permit to expand its capacity by the State Department over the summer. That permit is now being contested in federal court by environmental groups.

Flanagan South, meanwhile, exists due to a legally contentious array of close to 2,000 Nationwide Permit 12 permits handed out by the U.S. Army Corps of Engineers, which — as with Alberta Clipper expansion — has helped Enbridge usurp the more democratic and transparent National Environmental Policy Act (NEPA) review process

State Department Keystone XL Contractor ERM Bribed Chinese Agency to Permit Project

Environmental Resources Management (ERM Group), the consultancy selected by TransCanada to conduct the environmental review for Keystone XL's northern leg on behalf of the U.S. State Department, is no stranger to scandal.

Exhibit A: ERM once bribed a Chinese official to ram through major pieces of an industrial development projectERM was tasked to push through the project in Hangzhou Bay, located near Shanghai.

Accepting the bribe landed Yan Shunjun, former deputy head of the Shanghai Municipal Environmental Protection Bureau, an
11-year prison sentence.

Yan “allegedly took bribes of 864,000 yuan (126,501 U.S. dollars), 20,000 U.S. dollars and 4,000 euros from seven contractors,” explained Xiuhuanet. “Yan was also accused of illegally setting up a channel to speed up environmental impact assessment processes, which are essential for companies wanting to build factories.”

BP, one of the companies standing to gain if Keystone XL North receives a presidential permit from the Obama administration as a major Alberta tar sands producer, was also mired in the Chinese ERM Group scandal. 

“Two firms on ERM's bluechip client list, BP and Sinopec, are big investors in a petrochemical complex on the site, but the Chinese authorities apparently saw no conflict of interest in awarding the environmental evaluation to ERM,” explained London's Sunday Times.

In a sense, history has repeated itself.

Edelman and TransCanada Part Ways After Leaked Documents Expose Aggressive PR Attack on Energy East Pipeline Opponents

Russ Girling TransCanada

Last week internal documents from Edelman, the world’s largest PR firm, were leaked to Greenpeace, exposing an aggressive strategy to target opponents of TransCanada’s Energy East pipeline.

The release of the documents brought TransCanada under fire for using dirty public relations tricks to manipulate public opinion and divide communities on the issue of the company’s 4,600 km Energy East pipeline that will carry 1.1 million barrels a day of Alberta oilsands crude to one small refinery and to export facilities on the east coast.

Today a press release from Edelman confirms the firm is parting ways with TransCanada after “attention…moved away from the merits of TransCanada’s Energy East Pipeline project.”

According to the release, “Edelman and TransCanada have mutually agreed not to extend Edelman’s contract beyond its current term,” which completes at the end of December.

The release also states the communications strategy Edelman devised was meant to “drive an active public discussion that gives Canadians reason to affirmatively support the project.”

DeSmogCAST 4: TransCanada's PR Scandal, Gas Industry Revolving Door Report, and B.C.'s Election

This week's episode of DeSmogCAST covers the Edelman TransCanada dirty PR campaign, DeSmogBlog's new report on the gas industry revolving door lobbying push for LNG exports, and the outcome of the BC elections.

Hosted by DeSmogBlog contributor Farron Cousins, the DeSmogCAST guests this week are Emma Gilchrist, Brendan DeMelle and Steve Horn. 

Former NDP Comms Director Key Strategist on Edelman Energy East Astroturf Strategy

TransCanada

TransCanada has bought some unlikely support for the company’s public relations astroturf offensive aimed at winning support for the Energy East pipeline.

As first reported by Ricochet, Erin Jacobson, the recent director of communications for the NDP, Canada’s official opposition party, will be helping advise TransCanada on developing the astroturf campaign, bringing her expertise in Canadian public affairs and developing digital political campaigns.

As revealed in documents obtained by Greenpeace (reported Monday on DeSmogBlog), TransCanada hired Edelman, the world’s largest PR company, to create a “grassroots advocacy” campaign to help push the oilsands crude pipeline through the eastern provinces to New Brunswick.

A document prepared by Edelman for TransCanada, titled “Grassroots Advocacy Vision Document,” dated May 15, 2014, lists Jacobson as “Canadian program lead,” and explains that she “will join the Energy East team to provide Canadian-specific advocacy counsel.”

Industry-Funded Vivian Krause Uses Classic Dirty PR Tactics to Distract from Canada's Real Energy Debate

Vivian Krause

Vivian Krause has spent years scrutinizing how Canadian environmental groups are funded, claiming she's just asking “fair questions.”

But as the blogger-turned-newspaper-columnist has run rampant with her conspiracy theory that American charitable foundations' support of Canadian environmental groups is nefarious, she has continually avoided seeking a fair answer.

If Krause were seeking a fair answer, she'd quickly learn that both investment dollars and philanthropic dollars cross borders all the time. There isn’t anything special or surprising about environmental groups receiving funding from U.S. foundations that share their goals — especially when the increasingly global nature of environmental challenges, particularly climate change, is taken into consideration.

Despite this common-sense answer, Krause’s strategy has effectively diverted attention away from genuine debate of environmental issues, while simultaneously undermining the important role environmental groups play in Canadian society.

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