Category Archives: fossil fuels

Common Dreams: New England on ‘High Alert’ After Canadian Pipeline Reversal Approved

http://www.commondreams.org/headline/2014/03/07-4

Published on Friday, March 7, 2014
Environmental groups raise alarm over potential transport of tar sands oil from western regions to New England coast
– Jacob Chamberlain, staff writer

Enbridge buried pipeline marker (Adam Scott/Environmental Defense)The tar sands oil industry scored a regulatory victory on Thursday when the Canadian National Energy Board approved a plan by energy giant Enbridge to reverse the flow of Canada’s ‘Line 9’ oil pipeline eastward from Ontario to Montreal.

The decision has regional environmental groups sounding the alarm, warning the industry is now one step closer to being able to transport tar sands and other corrosive crude oil from the west, through Ontario and Quebec, over the border into Vermont, and then to the Maine coast for export.

The ruling, which comes four months after the government held public hearings on the proposal, will bring oil from western regions of Canada and the U.S., including tar sands from Alberta and heavy Bakken crude from North Dakota.

Groups such as The Natural Resources Council of Maine, Sierra Club, 350 Maine, 350 Vermont and Environment Maine say the reversal of Line 9 is “the final link” before the Maine-based Portland Pipe Line Corp. reverses its own pipeline that runs through New England, completing “energy giant Enbridge’s path from the oil sands of Alberta to tankers in the Atlantic port of South Portland,” the Bangor Daily News reports.

Fears that the New England pipeline would soon be reversed to transport Canadian tar sands to the Maine coast were sparked last year when oil companies poured hundreds of thousands of dollars into a campaign that ultimately defeated an anti-tar sands referendum in the coastal town of South Portland, Maine. The referendum would have barred a proposal to construct a tar sands pipeline terminal on the city’s waterfront.

So now, as the Canadian National Energy Board has taken the next step towards bringing tar sands to the New England border, many are alarmed.

“Thursday’s decision brings toxic tar sands oil right to New England’s doorstep, and one step away from flowing south through Vermont, New Hampshire and Maine,” said Dylan Voorhees, clean energy director for the Natural Resources Council of Maine. “This decision should put Maine on high alert for the threat of tar sands transportation through our state. That would be unacceptable. Now is the time for the U.S. State Department to commit to an environmental review of any tar sands project in our state.”

While the pipeline reversal and expansion will only be officially allowed when Enbridge fulfills 30 conditions laid out by the Energy Board, including an emergency response plan, many say a spill within the fragile habitats the pipeline runs through will be inevitable. One dissenting board member raised concern over the possibility of a spill, saying Enbridge should first be required to demonstrate that it has “legally enforceable access to financial resources which are and will continue to be adequate to fund any reasonably foreseeable NEB-regulated obligations which arise as a result of a spill.”

“People have serious concerns about the safety of this pipeline because it’s old and leaky,” said Gillian McEachern, a spokeswoman for Canada’s Environmental Defense. “Our process for reviewing major pipeline projects is seriously broken. This decision puts people across Ontario and Quebec at serious risk of oil spills. If there is a spill, tar sands oil is much harder to clean up and more expensive to clean up than conventional oil that’s going through it now.”

And as the Bangor Daily News reports, should Enbridge attempt to bring oil through New England, several Maine towns have already passed resolutions “declaring opposition to the transportation of oil sands bitumen across their borders, including Casco, where the pipeline passes near Sebago Lake, the source of drinking water for 15 percent of all Mainers.”

“Tar sands pose the most significant threat to Sebago Lake that I’ve seen in my 34 years of fishing on the lake,” said Eliot Stanley, a board member of the Sebago Lake Anglers Association. “The fact is that a tar sands pipeline spill into the Sebago-Crooked River watershed would devastate the lake, its fisheries and southern Maine’s clean drinking water supply.”

“We cannot permit another Kalamazoo River catastrophe,” said Stanley in reference to Enbridge’s massive 2010 pipeline spill into the Michigan river. “This irresponsible action by the Canadian Energy Board poses a threat to all Maine citizens and public officials.”

Vermonters in more than a dozen towns took similar action this year on “Town Meeting Day,” voting to oppose the reversal of the pipeline.

“Vermonters have already loudly signaled opposition to transporting tar sands across our rivers and farms, alongside lakes, and through communities of the Northeast Kingdom,” said Jim Murphy, National Wildlife Federation Senior Counsel. “A spill would have a devastating impact on our water supplies, wildlife habitat and tourism industry. And any transport of tar sands through Vermont would encourage growth of an industry that contradicts all of our state’s leadership and hard work on moving toward cleaner sources of energy.”

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Broomberg.com: BP Is Biggest Loser Among U.S. Government Contractors

http://www.bloomberg.com/news/2014-03-10/bp-is-biggest-loser-among-u-s-government-contractors.html

By Jonathan D. Salant and Kathleen Miller – Mar 10, 2014

BP Plc (BP/), once the Pentagon’s top fuel supplier, is now the biggest loser among U.S. government vendors. A combination of no big contracts awarded and promised military work withdrawn left BP with a net loss of $654 million in federal contracts in the year that ended Sept. 30, according to data compiled by Bloomberg. That compared with $2.51 billion in awards in fiscal 2012.

“I have never heard of a contractor falling in anything remotely like the distance from plus $2 billion to minus $600 million,” said Charles Tiefer, a University of Baltimore law professor and former member of the U.S. Commission on Wartime Contracting. “The government has come down on BP because it needs to see that BP does not merely talk the talk of behaving responsibly but actually walks the walk.”

The London-based company was temporarily barred from new federal contracts and other work after the 2010 Gulf of Mexico oil spill. While BP has sued to get the suspension lifted, the U.S. has said it wants to continue the ban, which also affects oil and gas leases coveted by the supplier. The suspension cost BP the ability to win new federal work that might be worth billions of dollars. The Defense Department, by far the government’s biggest buyer of petroleum products, also withdrew obligations, or promised funding, of more than $400 million last year after one of its offices didn’t buy a minimum amount of fuel required under the contracts.

No Extensions
Government agencies that don’t make such minimum purchases usually extend contracts rather than cancel them, said Rob Burton, a partner at the law firm Venable LLP and deputy administrator of the Office of Federal Procurement Policy under President George W. Bush. “They feel it’s a high risk to terminate and find alternative sources,” Burton said in an interview.
Instead, the Defense Logistics Agency, part of the Pentagon, chose to let the agreements expire.

“Suspended contractors cannot have the duration of their contracts extended without a compelling reason to do so,” Mimi Schirmacher, a spokeswoman for the agency, said in an e-mail. Three of the defense agency’s contracts, originally valued at a total of $2.15 billion, were awarded between May and September 2012 before BP’s temporary ban in November 2012, according to data compiled by Bloomberg. The three contracts weren’t extended “as a result of the suspension, which we are challenging in court,” Geoff Morrell, a BP spokesman, said in an e-mailed statement.

BP Sues
The company in August sued the Environmental Protection Agency in federal court in Houston to try to get the suspension lifted. “We believe that the EPA’s disqualification and suspension decisions should be invalidated because they are arbitrary and capricious,” Morrell said.

The government in January asked the court to continue the ban, saying BP hasn’t yet demonstrated it would act responsibly.
The EPA imposed the suspension after determining that the company hadn’t fully corrected problems that led to the fatal explosion aboard the Deepwater Horizon drilling rig. “Given this history, it was wholly reasonable” for the agency to “conclude that BP’s latest round of plans and promises is insufficient to demonstrate that BP is a responsible federal contractor,” the Justice Department said in the court filing. With BP temporarily blacklisted, the government is turning to other companies.

Largest Sellers
In fiscal 2011, BP was the largest seller of fuel to the military, with $1.37 billion in prime, or direct, contracts. A year later, it ranked just below No. 1 Royal Dutch Shell Plc (RDSA), based in the Hague, Netherlands — which had $2.86 billion.
Closely held Refinery Associates of Texas, based in New Braunfels, Texas, was the No. 1 supplier last year, with $1.34 billion. It was followed by Miami-based World Fuel Services Corp. (INT), with $1.19 billion, and National Fuel Inc., based in Kabul, Afghanistan, with $912.7 million.

The federal data measure contract obligations, or funding that is set aside for later spending. The data is published by the U.S. government and compiled by Bloomberg. BP, in the meantime, received just $31 million in contracts from federal agencies, while $685 million in planned orders disappeared, most of it from the withdrawn military work. The company’s reversal of fortune is unusual, said Brian Friel, a Bloomberg Industries analyst. Its fall in the rankings shows “the extraordinary circumstance of the Gulf oil spill that led to BP’s fall from grace with the U.S. government,” he said.

Natural Gas
Among federal agencies, the U.S. Justice Department had the most contract obligations with BP in fiscal 2013 — $341,225 for natural gas at the Bureau of Prisons. Brian Fallon, a Justice Department spokesman, didn’t return e-mails seeking comment.
Suspended companies are allowed to continue to sell to the government under existing contracts or when no alternatives exist.
The suspension may cost BP opportunities to expand its foothold in the Gulf of Mexico. The Bureau of Ocean Energy Management, part of the Interior Department, has scheduled an auction March 19 for more than 40 million acres for oil and gas exploration.
BP is the second-biggest oil producer in the Gulf with 63.6 million barrels in 2013, second only to Shell, according to Interior Department figures. Chevron Corp. (CVX) is No. 3. “It’s been a core strength for them,” Brian Youngberg, an energy analyst with Edward Jones & Co. in St. Louis, said in a telephone interview. “They’re anxious to get back into the Gulf.”

More Oil
BP produced more than 200,000 barrels of oil a day in the fourth quarter from its 10 rigs in the Gulf, Chief Executive Officer Robert Dudley said on Feb. 4 during the company’s fourth-quarter earnings conference call. It expects to eventually produce more than 300,000 barrels of oil a day in the area, he told investors.

In an investor call last year, Dudley called the Gulf drilling “central to the portfolio for decades to come.”
The suspension won’t prevent BP from bidding March 19, only from winning, Jessica Kershaw, an Interior spokeswoman, said in an e-mail.If the company is the high bidder and the suspension is lifted during an evaluation period after the auction, BP will win the leases. If the suspension remains in place, it won’t.

BP pleaded guilty in January 2013 to 11 counts of felony seaman’s manslaughter, two pollution violations and one count of lying to Congress in connection with the offshore spill, the worst in U.S. history. It agreed to pay $4.25 billion in related criminal and civil penalties and faces additional fines, in addition to thousands of claims by individuals and companies.

Analyst Youngberg said the U.S. may want the ban in place until all the lawsuits are settled. “EPA may be saying as long as there’s litigation, they won’t lift the suspension,” he said. “Is that an incentive for BP to settle? Possibly.”

To contact the reporters on this story: Jonathan D. Salant in Washington at jsalant@bloomberg.net; Kathleen Miller in Washington at kmiller01@bloomberg.net
To contact the editors responsible for this story: Stephanie Stoughton at sstoughton@bloomberg.net Stephanie Stoughton, Mark McQuillan

Special thanks to Richard Charter

EPA notice on rules for confidentiality on GHG emissions from oil and gas operations:

EPA reporting

public-inspection.federalregister.gov/2014-04408.pdf

ACTION: Proposed rule.

SUMMARY: The EPA is proposing revisions and confidentiality determinations for the
petroleum and natural gas systems source category and the general provisions of the Greenhouse
Gas Reporting Rule. In particular, the EPA is proposing to revise certain calculation methods,
amend certain monitoring and data reporting requirements, clarify certain terms and definitions,
and correct certain technical and editorial errors that have been identified during the course of
implementation. This action also proposes confidentiality determinations for new or substantially
revised data elements contained in these proposed amendments, as well as proposes a revised
confidentiality determination for one existing data element.

Special thanks to Richard Charter

WLOX: Florida files suit against BP related to 2010 Gulf oil spill

http://www.wlox.com/

Posted: Mar 06, 2014 12:01 PM EST Updated: Mar 06, 2014 12:01 PM EST

PANAMA CITY, FL (AP) – Florida has joined a multi-state lawsuit stemming from the 2010 Deepwater Horizon oil spill, seeking to hold British oil company BP accountable for damage to the state’s natural resources.

The complaint was filed Wednesday in Panama City federal court by the state’s secretary of environmental protection and the head of the Florida Fish and Wildlife Conservation Commission.

It’s separate from a lawsuit Florida’s attorney general filed against BP last year over economic losses related to the worst offshore oil spill in US history.

Along with BP, the new complaint lists minority partner Anadarko and rig owner Transocean as defendants responsible for harm the spill caused to Florida’s ecosystems and wildlife.

BP spokesman Geoff Morrell said the company is reviewing Florida’s lawsuit and continues to evaluate potential spill-related environmental damage.

Special thanks to Richard Charter

The Advocate: Committee being formed to promote Gulf drilling

http://theadvocate.com/news/business/8549424-123/committee-being-formed-to-promote

Wednesday, March 5, 2014
Advocate staff report

A new offshore committee is being formed by the Louisiana Mid-Continent Oil and Gas Association to promote energy production and responsible development of energy resources in the Gulf of Mexico.

The initiative will be coordinated by consultant Lori LeBlanc, of Lori LeBlanc LLC in Thibodaux, association Chairman Jim Hutchison said. LeBlanc served as deputy secretary of the Louisiana Department of Natural Resources from 2008 to 2010.
She became executive director of the Gulf Economic Survival Team, which was formed in June 2010 to push for a full return to energy production in the Gulf after a drilling moratorium resulted from the BP disaster.

“The Gulf is America’s energy workhorse, and its economic impacts are astounding,” Hutchison said. “Thirty percent of our nation’s domestic oil is produced in the Gulf of Mexico and energy activity in the Gulf contributes $5 (billion) to $8 billion per year to the U.S. Treasury.” The economic impact in Louisiana is $44.3 billion, he said. “To continue this great success story, it’s imperative that we increase our outreach efforts with federal leaders and have a seat at the table when key policy decisions are being made,” Hutchison said.

“Lori LeBlanc has had great success working with federal leaders on regulatory issues and promoting energy production in the Gulf as part of the Gulf Economic Survival Team, and we are very pleased to have her on board to lead this exciting effort for our group,” association President Chris John said.

The offshore committee will focus on policy, partnership, public input and positive communication in support of oil and gas production in the Gulf of Mexico. Activities will include developing and maintaining relationships with federal policymakers and members of Congress. monitoring and commenting on federal rules that affect Gulf development, collaborating with members, other trade associations and other Gulf Coast states on energy policy initiatives and communicating the significance of Gulf energy production to the nation’s economy and energy supply.

Targeted policy issues may include the Rigs to Reef program, national ocean policy, effects of new mitigation requirements, outer-continental-shelf lease sales, revenue sharing, and industry safety and technology. The committee also will maintain LMOGA’s involvement in Louisiana’s coastal restoration and protection efforts.

Special thanks to Richard Charter