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Thu, 2014-03-13 01:59Steve Horn
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General James Jones Didn't Disclose Industry Ties Before Testimony at Keystone XL Hearing

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 advisor 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.

A 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.

Fri, 2014-03-07 13:51Julie Dermansky
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Whistleblower Evan Voke’s Evidence Against TransCanada Whitewashed By Regulators

Pipeline safety regulators in North America have done nothing but write warning letters to TransCanada in the two years since former employee Evan Vokes revealed evidence indicating the company had been breaking the rules.

A recently released report by the Canadian National Energy Board on TransCanada's integrity management programs stated: “There are areas where the company was found to be out of compliance.” The board gave TransCanada 30 days to come up with a plan to fix things internally.

In response, Vokes released a statement through the advocacy group, Public Citizen stating:

The Canadian government's audit criticizing TransCanada’s failings is a start, but leaves numerous safety concerns unaddressed. An audit based on paper and interviews only cannot catch non-compliance in the field. In my experience, TransCanada’s management failings are systemic and won’t be fixed simply by reviewing what TransCanada says its policies are on paper. These kind of reviews have not fixed the problem in the past and they aren’t sufficient now. Time and again, TransCanada’s internal and third-party audit systems have failed to catch the repeated substandard practice of engineering in the construction and maintenance of its pipelines. Unless regulators in Canada and the United States step up to the plate to ensure compliance in the field, future ruptures and risks to Americans are inevitable.”

The Canadian Senate held hearings in 2013 about the transport of hazardous materials after Vokes went to the media with what he said was proof that TransCanada was breaking the law. During the hearings the National Energy board testified they had verified much of the evidence Vokes provided.

The Senate’s report cites the National Energy Board's conclusion that TransCanada's incidents of non-compliance do not represent immediate threats to the safety of people or the environment. The report notes the board advanced its previously scheduled audit of TransCanada to include the specific concerns raised by Vokes, but recommends no further action.

“The lack of accountability with regulators is appalling,” Vokes told DeSmog Blog. He says he came forward because the oath he took to become an engineer requires him to put public safety first.

Wed, 2014-02-26 15:03Ben Jervey
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WHITEWASH: State Dept Keystone XL Inspector General Report Clears Botched Handling of Environmental Resources Management Conflicts

The State Department's Office of the Inspector General (OIG) has finally weighed in on potential conflicts of interest in the environmental assessments of the proposed Keystone XL pipeline. Sort of.

The office just released its long-anticipated report, capping off an investigation on whether Environmental Resources Management, the contractor hired by TransCanada to conduct the environmental impact study, had too close a relationship with TransCanada, and whether it deliberately hid those ties in filings with the State Department. 

On first look, the inspector general report takes an extremely narrow view of the potential conflicts, but does declare that the department's procedures for dealing with conflicts of interest are weak and need to be improved. 
 

Specifically, from the OIG's findings:

  • OIG did find that the process for documenting the contractor selection process, including the conflict of interest review, can be improved.
  • OIG also found that the Department’s public disclosures concerning its conflict of interest review could be improved.

Finally, the Office of the Inspector General makes these specific recommendations:

  • OIG recommends that the Department’s Bureau of Oceans and International Environmental and Scientific Affairs, in coordination with the Office of the Legal Adviser, enhance its guidance to more fully articulate its selection and conflict of interest review processes.
  • OIG recommends that the Department explain in greater detail the definition of “organizational conflict of interest” relied upon by the Department.
  • OIG recommends that the Department specify in its guidance the documentation required in the contractor selection and conflict of interest processes and establish standard operating procedures to capture and retain this information.
  • OIG recommends that the Department enhance its guidance to integrate a process for public disclosure of

appropriate information.

Attention will now turn to the Government Accountability Office, which will begin an investigation on the State Department's environmental review process. Earlier this week, Representative Raúl Grijalva of Arizona requested a GAO review, suggesting that the Keystone XL environmental assessment has been corrupted by conflicts of interest. “Nothing should be glossed over; nothing should be ignored,” Grijalva said. “The questions that we posed to GAO had to do with the State Department process. And if this is a tainted process, I suggest the president at that point shouldn't trust that information,”

DeSmogBlog will take a closer look at all the details in the report and update this post throughout the evening. 

Wed, 2014-02-26 11:46Ben Jervey
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Keystone PipeLIES Exposed: New Film from Center for Media and Democracy

On Tuesday, the Center for Media and Democracy released a new short film that sets out to debunk the many false claims — the films calls them “pipeLIES” — used by promoters of the Keystone XL pipeline. These industry talking points, many of which are repeated without verification by mainstream media sources, have corrupted any reasonable public discourse on the pipeline, and the film's producers hope that using the video medium to expose the mistruths will lead to better public understanding of the true risks of the pipelines. 

The film, Keystone PipeLIES Exposed, takes a close and critical look at both ends of the proposed pipeline — from the open pit tar sands mines in Alberta to the toxic refineries in Port Arthur, Texas. But the meat of the 23-minute film looks at the pipeline itself — the route, the construction jobs, the spill risks, the communities and ecosystems that would be made vulnerable.

While traveling down the pipeline, so to speak, the film pays special attention to the talking points and falsehoods — the massively inflated job creation claims, promises of lower gas prices, and so on — that are constantly repeated by those who stand to profit from the pipeline's construction, and often by a mainstream media too lazy to verify them. 

Emmy Award-winning journalist Dave Saldana wrote, directed and produced the film. Saldana is also an attorney, and says this background was particularly useful in exploring and debunking many of the oil industry's suspicious claims. Saldana says:

I looked at the claims as a lawyer; what did the evidence show me? The evidence shows that its job creation claims are grossly inflated; that better, greener alternatives would aid America's energy independence and put more Americans to work for a longer time than the pipeline; and that the pumping of tar sands oil across the U.S. primarily for export to foreign countries poses enormous risks to America's water supply, food supply, and air quality. And that’s before you even get to what it does to climate change.”

Here's the film. You can also check out the PipeLIES Exposed site to find references for all the arguments debunking the lies. 

Keystone PipeLIES Exposed from Center for Media and Democracy on Vimeo.

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.

Wed, 2014-01-22 14:43Julie Dermansky
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TransCanada's Keystone XL South Pipeline Set To Begin Operations Today

Today, January 22, the southern portion of TransCanada's Keystone XL pipeline is set to become operational, although environmentalists and Texas homeowners are continuing to fight against it.

TransCanada is surely celebrating now that it has a pipeline system in place connecting the tar sands in Alberta, Canada to the Gulf Coast refineries and export terminals — via the combination of the original Keystone pipeline running from Alberta to Cushing, Oklahoma and the pipeline it connects to, Keystone XL's southern half (now rebranded the Gulf Coast Pipeline Project) which President Obama fast-tracked via executive order nearly two years ago.

But nobody except the pipeline's owners knows exactly what will be transported through the Gulf Coast pipeline. TransCanada declined to reveal this important information, citing the confidentiality of their commercial contracts. Jeannie Shiffer, a spokesperson for the U.S. Pipeline and Hazardous Materials Safety Administration's (PHMSA), part of the Department of Transportation, confirmed that, “PHMSA doesn't require pipeline operators to report crude oil types.” 

This leaves landowners and first responders in a precarious situation in the inevitable case of a spill. As tar sands pipeline spills in Kalamazoo, Michigan and Mayflower, Arkansas have made clear, tar sands dilbit is more toxic than conventional oil and requires a different spill response effort.

Wed, 2014-01-22 11:53Steve Horn
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State Dept's Keystone XL Contractor, ERM Group, Also OK'd Controversial Pebble Mine in Alaska

A DeSmogBlog investigation has revealed Environmental Resources Management Inc. (ERM Group) — the contractor performing the U.S. State Department's environmental review for the northern half of TransCanada's Keystone XL tar sands pipeline — gave the greenlight to Alaska's controversial Pebble Mine proposal in June 2013.

The proposed Pebble Mine, located in Bristol Bay in southwest Alaska, contains mineable gold and copper. It's also a major hub for fishing and the seafood industry, leading the Center for American Progress to call the battle over Pebble Mine a “resource war.”

“Bristol Bay…is home to the world’s largest commercial sockeye salmon fishery,” explains a November 2013 EarthWorks blog post. “The devastation caused by a massive open pit mine would linger in perpetuity affecting not just Bristol Bay, but the commercial fishing industry everywhere in the Pacific Northwest.”

Tue, 2014-01-07 14:11Steve Horn
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Days Before Casselton Oil Train Explosion, Obama Signed Bill Hastening Fracking Permits on ND Public Lands

On December 20, both chambers of the U.S. Congress passed a little-noticed bill to expedite permitting for hydraulic fracturing (“fracking”) on public lands in the Bakken Shale basin, located predominantly in North Dakota. And on December 26, President Obama signed the bill into law. 

Days later, on December 30, a Burlington Northern Santa Fe (BNSF) freight train owned by Warren Buffett carrying Bakken fracked oil exploded in Casselton, North Dakota. Locals breathed a smoky sigh of relief that the disaster happened outside the town center. In July 2013, a “bomb train” carrying Bakken oil exploded in Lac-Mégantic, Quebec, killing 47 people

Dubbed the “Bureau of Land Management (BLM) Streamlining Act,” the bill passed unanimously in the Senate as S.244 and 415-1 in the House as H.R. 767, with Rep. Justin Amash (R-MI) serving as the sole “nay” vote and 16 representatives abstaining. Among the abstentions were representatives Peter Defazio (D-OR), Henry Waxman (D-CA) and John Campbell (R-CA).

H.R. 767's sponsor is North Dakota Republican Rep. Kevin Cramer, who received $213,150 from the oil and gas industry prior to the 2012 election, and an additional $29,000 for the forthcoming 2014 elections.

Cosponsors include Wyoming Republican Rep. Cynthia Lummis ($109,050 from the oil and gas industry pre-2012 election, $28,500 in the 2014 election cycle), South Dakota Republican Rep. Kristi Noem ($95,501 from the industry pre-2012 election, $20,400 pre-2014) and Montana Republican Rep. Steve Daines ($124,620 pre-2012 election and $87,412 pre-2014).

S.244 is sponsored by Sen. John Hoeven (R-ND), who has taken $291,237 from the oil and gas industry since his 2010 election to Congress. Cosponsor Sen. Heidi Heitkamp (D-NDreceived $111,050 from the oil and gas industry since her 2012 electoral victory.

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