Category Archives: Keystone XL

Rolling Stone Magazine: Obama and Climate Change: The Real Story by Bill McKibben

http://www.rollingstone.com/politics/news/obama-and-climate-change-the-real-story-20131217

The president has said the right things about climate change – and has taken some positive steps. But we’re drilling for more oil and digging up more carbon than ever

stone
Illustration by Victor Juhasz
By Bill McKibben
December 17, 2013 9:00 AM ET

Two years ago, on a gorgeous November day, 12,000 activists surrounded the White House to protest the proposed Keystone XL pipeline. Signs we carried featured quotes from Barack Obama in 2008: “Time to end the tyranny of oil”; “In my administration, the rise of the oceans will begin to slow.”

Global Warming’s Terrifying New Math

Our hope was that we could inspire him to keep those promises. Even then, there were plenty of cynics who said Obama and his insiders were too closely tied to the fossil-fuel industry to take climate change seriously. But in the two years since, it’s looked more and more like they were right – that in our hope for action we were willing ourselves to overlook the black-and-white proof of how he really feels.

If you want to understand how people will remember the Obama climate legacy, a few facts tell the tale: By the time Obama leaves office, the U.S. will pass Saudi Arabia as the planet’s biggest oil producer and Russia as the world’s biggest producer of oil and gas combined. In the same years, even as we’ve begun to burn less coal at home, our coal exports have climbed to record highs. We are, despite slight declines in our domestic emissions, a global-warming machine: At the moment when physics tell us we should be jamming on the carbon brakes, America is revving the engine.

Greenland Melting: Climate Change’s Disasterous Effects

You could argue that private industry, not the White House, has driven that boom, and in part you’d be right. But that’s not what Obama himself would say. Here’s Obama speaking in Cushing, Oklahoma, last year, in a speech that historians will quote many generations hence. It is to energy what Mitt Romney’s secretly taped talk about the 47 percent was to inequality. Except that Obama was out in public, boasting for all the world to hear:

“Over the last three years, I’ve directed my administration to open up millions of acres for gas and oil exploration across 23 different states. We’re opening up more than 75 percent of our potential oil resources offshore. We’ve quad­rupled the number of operating rigs to a record high. We’ve added enough new oil and gas pipeline to encircle the Earth, and then some. . . . In fact, the problem . . . is that we’re actually producing so much oil and gas . . . that we don’t have enough pipeline capacity to transport all of it where it needs to go.”

Actually, of course, “the problem” is that climate change is spiraling out of control. Under Obama we’ve had the warmest year in American history – 2012 – featuring a summer so hot that corn couldn’t grow across much of the richest farmland on the planet. We’ve seen the lowest barometric pressure ever recorded north of Cape Hatteras, North Carolina, and the largest wind field ever measured, both from Hurricane Sandy. We’ve watched the Arctic melt, losing three quarters of its summer sea ice. We’ve seen some of the largest fires ever recorded in the mountains of California, Colorado and New Mexico. And not just here, of course – his term has seen unprecedented drought and flood around the world. The typhoon that just hit the Philippines, according to some meteorologists, had higher wind speeds at landfall than any we’ve ever seen. When the world looks back at the Obama years half a century from now, one doubts they’ll remember the health care website; one imagines they’ll study how the most powerful government on Earth reacted to the sudden, clear onset of climate change.

The Fossil Fuel Resistance

And what they’ll see is a president who got some stuff done, emphasis on “some.” In his first term, Obama used the stimulus money to promote green technology, and he won agreement from Detroit for higher automobile mileage standards; in his second term, he’s fighting for EPA regulations on new coal-fired power plants. These steps are important – and they also illustrate the kind of fights the Obama administration has been willing to take on: ones where the other side is weak. The increased mileage standards came at a moment when D.C. owned Detroit – they were essentially a condition of the auto bailouts. And the battle against new coal-fired power plants was really fought and won by environmentalists. Over the past few years, the Sierra Club and a passel of local groups managed to beat back plans for more than 100 new power plants. The new EPA rules – an architecture designed in part by the Natural Resources Defense Council – will ratify the rout and drive a stake through the heart of new coal. But it’s also a mopping-up action.

Obama loyalists argue that these are as much as you could expect from a president saddled with the worst Congress in living memory. But that didn’t mean that the president had to make the problem worse, which he’s done with stunning regularity. Consider:

• Just days before the BP explosion, the White House opened much of the offshore U.S. to new oil drilling. (“Oil rigs today generally don’t cause spills,” he said by way of explanation. “They are technologically very advanced.”)

• In 2012, with the greatest Arctic melt on record under way, his administration gave Shell Oil the green light to drill in Alaska’s Beaufort Sea. (“Our pioneering spirit is naturally drawn to this region, for the economic opportunities it presents,” the president said.)

• This past August, as the largest forest fire in the history of the Sierra Nevadas was burning in Yosemite National Park, where John Muir invented modern environmentalism, the Bureau of Land Management decided to auction 316 million tons of taxpayer-owned coal in Wyoming’s Powder River basin. According to the Center for American Progress, the emissions from that sale will equal the carbon produced from 109 million cars.

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Even on questions you’d think would be open-and-shut, the administration has waffled. In November, for instance, the EPA allowed Kentucky to weaken a crucial regulation, making it easier for mountaintop-removal coal mining to continue. As the Sierra Club’s Bruce Nilles said, “It’s dismaying that the Obama administration approved something even worse than what the Bush administration proposed.”

All these steps are particularly toxic because we’ve learned something else about global warming during the Obama years: Most of the coal and gas and oil that’s underground has to stay there if we’re going to slow climate change.

Though the Copenhagen climate conference in 2009 was unquestionably the great foreign-policy failure of Obama’s first term, producing no targets or timetables or deals, the world’s leaders all signed a letter pledging that they would keep the earth’s temperature from rising more than two degrees Celsius. This is not an ambitious goal (the one degree we’ve raised the temperature already has melted the Arctic, so we’re fools to find out what two will do), but at least it is something solid to which Obama and others are committed. To reach that two-degree goal, say organizations such as the Carbon Tracker Initiative, the World Bank, the International Energy Agency, the Intergovernmental Panel on Climate Change, HSBC and just about everyone else who’s looked at the question, we’d need to leave undisturbed between two-thirds and four-fifths of the planet’s reserves of coal, gas and oil.

The Powder River Basin would have been a great place to start, especially since activists, long before the administration did anything, have driven down domestic demand for coal by preventing new power plants. But as the “Truth Team” on barack obama.com puts it, “building a clean future for coal is an integral part of President Obama’s plan to develop every available source of American energy.”

And where will the coal we don’t need ourselves end up? Overseas, at record levels: the Netherlands, the U.K., China, South Korea. And when it gets there, it slows the move to cleaner forms of energy. All told, in 2012, U.S. coal exports were the equivalent of putting 55 million new cars on the road. If we don’t burn our coal and instead sell it to someone else, the planet doesn’t care; the atmosphere has no borders.

As the administration’s backers consistently point out, America has cut its own carbon emissions by 12 percent in the past five years, and we may meet our announced national goal of a 17 percent reduction by decade’s end. We’ve built lots of new solar panels and wind towers in the past five years (though way below the pace set by nations like Germany). In any event, building more renewable energy is not a useful task if you’re also digging more carbon energy – it’s like eating a pan of Weight Watchers brownies after you’ve already gobbled a quart of Ben and Jerry’s.

Let’s lay aside the fact that climate scientists have long since decided these targets are too timid and that we’d have to cut much more deeply to get ahead of global warming. All this new carbon drilling, digging and burning the White House has approved will add up to enough to negate the administration’s actual achievements: The coal from the Powder River Basin alone, as the commentator Dave Roberts pointed out in Grist, would “undo all of Obama’s other climate work.”

The perfect example of this folly is the Keystone XL pipeline stretching south from the tar sands of Canada – the one we were protesting that November day. The tar sands are absurdly dirty: To even get oil to flow out of the muck you need to heat it up with huge quantities of natural gas, making it a double-dip climate dis­aster. More important, these millions of untouched acres just beneath the Arctic Circle make up one of the biggest pools of carbon on Earth. If those fields get fully developed, as NASA’s recently retired senior climate scientist James Hansen pointed out, it will be “game over” for the climate.

Obama has all the authority he needs to block any pipelines that cross the border to the U.S. And were he to shut down Keystone XL, say analysts, it would dramatically slow tar-sands expansion plans in the region. But soon after taking office, he approved the first, small Keystone pipeline, apparently without any qualms. And no one doubts that if a major campaign hadn’t appeared, he would have approved the much larger Keystone XL without a peep – even though the oil that will flow through that one pipe will produce almost as much carbon as he was theoretically saving with his new auto-mileage law.

But the fight to shut down the pipeline sparked a grassroots movement that has changed the culture of environmentalism – but not, so far, the culture of the White House. For me, the most telling moment came a month or two ago when it emerged that the president’s former communications director, Anita Dunn, had taken a contract to flack for the pipeline.

The reason for fighting Keystone all along was not just to block further expansion of the tar sands – though that’s required, given the amount of carbon contained in that expanse of Alberta. We also hoped that doing the right thing would jump-start Washington in the direction of real climate action. Instead, the effort necessary to hold off this one pipeline has kept environmentalists distracted as Obama has opened the Arctic and sold off the Powder River Basin, as he’s fracked and drilled. It kept us quiet as both he and Mitt Romney spent the whole 2012 campaign studiously ignoring climate change.

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We’re supposed to be thrilled when Obama says something, anything, about global warming – he gave a fine speech this past June. “The question,” he told a Georgetown University audience, is “whether we will have the courage to act before it’s too late. And how we answer will have a profound impact on the world that we leave behind not just to you, but to your children and to your grandchildren. As a president, as a father and as an American, I’m here to say we need to act.” Inspiring stuff, but then in October, when activists pressed him about Keystone at a Boston gathering, he said, “We had the climate-change rally back in the summer.” Oh.

In fact, that unwillingness to talk regularly about climate change may be the greatest mistake the president has made. An account in Politico last month described his chief of staff dressing down Nobel laureate and then-Energy Secretary Steven Chu in 2009 for daring to tell an audience in Trinidad that island nations were in severe danger from rising seas. Rahm Emanuel called his deputy Jim Messina to say, “If you don’t kill Chu, I’m going to.” On the plane home, Messina told Chu, “How, exactly, was this fucking on message?” It’s rarely been on message for Obama, despite the rising damage. His government spent about as much last year responding to Sandy and to the Midwest drought as it did on education, but you wouldn’t know it from his actions.

Which doesn’t mean anyone’s given up – the president’s inaction has actually helped to spur a real movement. Some of it is aimed at Washington, and involves backing the few good things the administration has done. At the moment, for instance, most green groups are rallying support for the new EPA coal regulations.

Mostly, though, people are working around the administration, and with increasing success. Obama’s plan to auction Powder River Basin coal has so far failed – there aren’t any bidders, in large part because citizens in Washington state and Oregon have fought the proposed ports that would make it cheap to ship all that coal to Asia. Obama has backed fracking to the hilt – but in state after state, voters have begun to limit and restrict the technology. Environmentalists are also taking the fight directly to Big Oil: In October, an Oxford University study said that the year-old fight for divestment from stock in fos­sil-fuel companies is the fastest-growing corporate campaign in history.

None of that cures the sting of Obama’s policies nor takes away the need to push him hard. Should he do the right thing on Keystone XL, a decision expected sometime in the next six months, he’ll at least be able to tell other world leaders, “See, I’ve stopped a big project on climate grounds.” That could, if he used real diplomatic pressure, help restart the international talks he has let lapse. He’s got a few chances left to show some leadership.

But even on this one highly contested pipeline, he’s already given the oil industry half of what it wanted. That day in Oklahoma when he boasted about encircling the Earth with pipelines, he also announced his support for the southern leg of Keystone, from Oklahoma to the Gulf. Not just his support: He was directing his administration to “cut through the red tape, break through the bureaucratic hurdles and make this project a priority, to go ahead and get it done.”

It has: Despite brave opposition from groups like Tar Sands Blockade, Keystone South is now 95 percent complete, and the administration is in court seeking to beat back the last challenges from landowners along the way. The president went ahead and got it done. If only he’d apply that kind of muscle to stopping climate change.

This story is from the December 19th, 2013 – January 2nd, 2014 issue of Rolling Stone.
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Common Dreams: Neil Young: Tar Sands Fields ‘Look Like Hiroshima’

Published on Tuesday, September 10, 2013 by Common Dreams

neil young
Singer says tar sands development left Fort McMurray a ‘wasteland’ that is ‘truly a disaster’
– Jacob Chamberlain, staff writer

Flickr / Creative Commons License / NRK P3Fresh off a trip to Canada’s tar sands oil fields in Alberta, famed singer Neil Young spoke out at a conference in Washington, DC on Monday against the controversial oil extraction and its export through the proposed Keystone XL pipeline, calling Fort McMurray, the town nearest Alberta’s vast tar sands, a “wasteland.”

“This is truly a disaster,” said Young, painting a dire picture in which the people, land and animals of the region are greatly suffering.

“The fuel’s all over – the fumes everywhere – you can smell it when you get to town,” Young recalled. “The closest place to Fort McMurray that is doing the tar sands work is 25 or 30 miles out of town and you can taste it when you get to Fort McMurray. People are sick. People are dying of cancer because of this. All the First Nations people up there are threatened by this.”

“Yeah it’s going to put a lot of people to work,” Young said of the proposed Keystone XL pipeline, which is slated to transport the excavated tar sands to export terminals in Texas and Louisiana. “I’ve heard that, and I’ve seen a lot of people that would dig a hole that’s so deep that they couldn’t get out of it, and that’s a job too, and I think that’s the jobs that we are talking about there with the Keystone pipeline,” he said.

“The fact is, Fort McMurray looks like Hiroshima,” said Young. “Fort McMurray is a wasteland. … All of the First Nations people up there are threatened by this. Their food supply is wasted. Their treaties are no good. They have a right to live on the land that they always did but there’s no land left that they can live on. All the animals are dying. This is truly a disaster.”

“Neil Young is speaking for all of us fighting to stop the Keystone XL,” Jane Kleeb, Executive Director of Bold Nebraska, a coalition of landowners and others opposed to the $5.3-billion Keystone XL pipeline, told the Globe and Mail. “When you see the pollution already caused by the reckless expansion of tar sands, you only have one choice and that is to act.”

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Mintpressnews.com: The Flip Side Of Obama’s Keystone XL Delay: Even as President Obama cast a veneer of caution over the Keystone pipeline’s northern half, he quietly expedited dozens of similar projects.

INVESTIGATION: The Flip Side Of Obama’s Keystone XL Delay

By Steve Horn | September 7, 2013

The Republican-controlled House is voting today on a measure that would strip the president’s authority on Keystone XL pipeline approval, allowing Congress to push the project through before completion of the environmental impact study. (Photo/Matt Wansley via Flickr)

While President Obama made a big deal out of delaying the northern half of the Keystone pipeline’s construction, he compensated by signing an executive order to expedite similar infrastructure projects everywhere else. (Photo/Matt Wansley via Flickr)

Large segments of the environmental movement declared a win on Jan. 18, 2012, the dawn of an election year in which partisan fervor reigned supreme.

On that day President Barack Obama kicked the can down the road for permitting TransCanada’s Keystone XL pipeline’s northern half until after the then-forthcoming November 2012 presidential election.

“Northern half” is the key caveat: just two months later, on March 22, 2012 – even deeper into the weeds of an election year – President Obama issued Executive Order 13604. Among other key things, the order has an accompanying memorandum calling for an expedited review of the southern half of Keystone XL stretching from Cushing, Okla. to Port Arthur, Texas.

The day before, March 21, Obama flew on Air Force One to a pipe yard in Cushing – the “pipeline crossroads of the world” – for a special stump speech and photo-op announcing the executive order and memorandum.

Dubbed the Gulf Coast Pipeline Project by TransCanada – 95 percent complete and “open for business” in the first quarter of 2014 – the 485-mile tube will ship 700,000 barrels of tar sands crude per day from Cushing to Port Arthur, where it will then reach Gulf Coast refineries and be exported to the global market. It will eventually have the capacity to ship 830,000 barrels per day.

The subject of a large amount of grassroots resistance from groups such as Great Plains Tar Sands Resistance and the Tar Sands Blockade, the Gulf Coast Pipeline Project – when push comes to shove – is only the tip of the iceberg.

That’s because Obama’s order also called for expedited permitting and review of all domestic infrastructure projects – including but not limited to pipelines – as a reaction to the Keystone XL resistance.

A months-long Mint Press News investigation reveals the executive order wasn’t merely a symbolic gesture.

Rather, many key pipeline and oil and gas industry marketing projects are currently up for expedited review, making up for — and by far eclipsing — the capacity of Keystone XL’s northern half. The original TransCanada Keystone pipeline – as is – already directly connects to Cushing from Alberta, making XL (short for “extension line”) essentially obsolete.

Keystone XL’s northern half proposal is key for marketing oil obtained from the controversial hydraulic fracturing (“fracking”) process in North Dakota’s Bakken Shale basin.

Dubbed the Bakken Marketlink Pipeline, the segment has lost its importance with the explosive freight rail boom for moving Bakken fracked oil to market and other pipeline proposals. One of those pipelines, in fact, has received fast-track approval under the March 2012 Obama Executive Order.

Feeling the pressure from protest against the Keystone XL from groups such as the Tar Sands Action, Indigenous Environmental Network and others, Obama pulled a fast one: “wait and see” for XL’s northern half – which many claimed as a victory – and expedited approval of everything else via executive order.

Breaking down the Keystone XL executive order

Obama’s Keystone XL southern half March 2012 memo reads like Big Oil talking points.

“[W]e need an energy infrastructure system that can keep pace with advances in production,” Obama states in the Memo. “To promote American energy sources, we must not only extract oil — we must also be able to transport it to our world-class refineries, and ultimately to consumers.”

A metaphorical slap in the face to environmentalists who spent months working on opposing Keystone XL, Obama argued a more efficient, less bureaucratic means of approval was compulsory.

“[A]s part of my Administration’s broader efforts to improve the performance of Federal permitting and review processes, we must make pipeline infrastructure a priority … supporting projects that can contribute to economic growth and a secure energy future,” the memo reads.

Though the order issued an expedited permitting process for Keystone XL’s southern half, it also foreshadowed that expedited permitting would become the “new normal” going forward for all domestic oil and gas pipeline projects.

“To address the existing bottleneck in Cushing, as well as other current or anticipated bottlenecks, agencies shall … coordinate and expedite their reviews … as necessary to expedite decisions related to domestic pipeline infrastructure projects that would contribute to a more efficient domestic pipeline system for the transportation of crude oil,” the memo states in closing.

The memo also notes all projects placed in the expedited permitting pile can have their statuses tracked on the online Federal Infrastructure Projects Dashboard, with 48 projects currently listed.

Little time was wasted building the XL’s southern half after Obama issued the Order and within a slim two years, TransCanada will have its first direct line from Alberta to Gulf Coast refineries in southern Texas.

Muted opposition: “eco-terrorists,” SLAPP lawsuit threats

It’s not as if the Keystone XL southern half expedited permit has gone unopposed. It’s just that activists who have chosen to resist the pipeline have paid a heavy price for doing so.

A case in point: opposition to Keystone XL’s southern half has earned many activists the label – on multiple occasions – as potential “eco-terrorists,” named as such by TransCanada, the U.S. FBI and Department of Homeland Security’s Nebraska-based “fusion center” and local undercover police.

Other activists were threatened by TransCanada with a strategic lawsuit against public participation (SLAPP), all of whom made an out of court settlement in January 2013.

Activists agreed to “no longer trespass or cause damage to Keystone XL property including the easements within private property boundaries,” explained FireDogLake’s Kevin Gosztola in a January 2013 article.

The agreement was a quintessential “lesser of two evils” choice, given activists could have found themselves bogged down in legal fees from TransCanada and may have eventually owed the corporation big bucks.

“The activists had a choice: either settle or face a lawsuit in court where TransCanada would seek $5 million for alleged financial damages … that could have much worse consequences,” Gosztola further explained.

Beyond SLAPP threats, key lawsuits aiming to fend off TransCanada have also failed.

Texas lawsuit highlights expedited permitting corruption

One of those lawsuits in particular – filed on April 25, 2013 by a Douglass, Texas-based citizen named Michael Bishop representing himself in court – paints a picture of what President Obama meant when he said he would fast-track permitting for infrastructure projects going forward.

Before filing the lawsuit, Bishop penned a four-part series for EcoWatch in February and March of 2013 on his experiences as a landowner living a mere 120-feet from pipeline construction and dealing with TransCanada in Texas.

“I am amazed by the lack of understanding about this project by the general public and even more amazed that people in other parts of the country are so focused on the ‘northern segment’ while the pipeline is actually being laid right here in Texas and will begin transporting diluted bitumen, tar sands crude oil, to Gulf Coast refineries by the end of the year,” Bishop wrote in Part III. “So many seem oblivious to this fact.”

Bishop alleges in his Complaint for Declaratory Relief and Petition for Writ of Mandamus that on-the-books bread-and-butter environmental laws were broken when fast-tracked permitting for Keystone XL’s southern half unfolded.

The permitting mechanism utilized by the U.S. Army Corps of Engineers – following Obama’s March 2012 executive order and memorandum – was a Nationwide Permit 12.

Nationwide Permit 12 has also been chosen for fast-tracked permitting of Enbridge’s Flanagan South Pipeline. That pipeline is set to fill the gap – and then some – for Keystone XL’s northern half, bringing tar sands crude along the 600-mile long, 600,000 barrels per day pipeline from Pontiac, Ill. to Cushing, Okla.

A 2012 document produced by the Army Corps of Engineers explains Nationwide Permit 12 is meant for permitting of utility lines, access roads; foundations for overhead utility line towers, poles, and anchors: pipelines carrying corrosive tar sands crude go unmentioned.

The Corps’ document also explains Nationwide Permit 12 exists to “authorize certain activities that have minimal individual and cumulative adverse effects on the aquatic environment,” further explaining, “Activities that result in more than minimal individual and cumulative adverse effects on the aquatic environment cannot be authorized.”

Bishop cited the National Environmental Protection Act (NEPA), arguing Nationwide Permit 12 as applied to Keystone XL’s southern half violated the spirit of that law because no environmental assessment was conducted and no public hearings were held.

“Given the fact that the Corps was involved in the preparation of the TransCanada Keystone Pipeline XL for the State Department … knowledgeable of the toxic nature of the material to be transported and massive public opposition to the project, public hearings should have been held in accordance with the law,” wrote Bishop.

Further, the pipeline crosses “nearly 1,000 crossings of bodies of water in Texas alone,” according to Bishop’s complaint.

In following the dictates of the March 2012 executive order and memorandum, Bishop argues the U.S. Army Corps of Engineers acted in total disregard for long-established environmental law.

“The use of Nation Wide Permit-12 is not a substitute for following NEPA and the Corps, while having some degree of latitude, failed in its ministerial duty,” Bishop wrote. “There was a blatant disregard for established environmental law…which not only included public input, but also directed the agency to consider human health and safety.”

To date, the lawsuit has not been heard in court.

Hastening Bakken shale development

While the environmental community hones in on Keystone XL’s northern half, the business community has focused on expediting permits in the Bakken Shale and filling in the gap left behind by the lack of a TransCanada “Bakken Marketlink.”

Big Business has done so – in the main – by using pipelines to ship Bakken crude to key rail hubs.

One of the pipelines listed in the Federal Infrastructure Projects Dashboard is the Bakkenlink pipeline – not to be confused with the “Bakken Marketlink” – a 144-mile-long tube set to carry fracked oil from the Bakken to rail facilities that would then carry the product to strategic markets.

“Currently, crude oil from this region of the Bakken field is transported to rail facilities via truck,” explains the Dashboard. “The proposed BakkenLink pipeline provides an opportunity to eliminate a vast amount of overland truck traffic.”

Petroleum News Bakken, an industry news publication, explains Bakkenlink was proposed when the northern half of Keystone XL was put on hold by the Obama Administration.

“Originally the BakkenLink was intended to run all the way to Baker, Mont., where it was to connect to the Keystone XL pipeline, but when the Keystone XL project was put on hold in 2011, BakkenLink LLC modified its plan and opted to terminate the pipeline at the Fryburg rail facility,” Petroleum News Bakken explained.

The Bismarck Tribune explained Great Northern Midstream LLC – which wholly owns BakkenLink LLC as a subsidiary – has built capacity to load fracked Bakken oil onto 110-car unit trains via the Fryburg rail facility.

For sake of comparison, TransCanada’s Bakken Marketlink Pipeline – aka Keystone XL – was slated to bring 100,000 barrels per day of crude to market.

The freight trains scheduled to carry this oil are owned by Burlington Northern Sante Fe (BNSF). BNSF itself is owned by Warren Buffett, the fourth richest man on the planet and major campaign contributor to President Barack Obama in 2008 and 2012.

With plans to “spend $4.1 billion on capital improvements in 2013, a single-year record for an American railroad…BNSF says it is transporting more than half of the oil produced in the North Dakota and Montana regions of the Bakken,” according to a June 2013 Dallas Morning News article. “The boom would not be as big, nor would it have happened as fast, without BNSF.”

Recent investigative pieces on Buffett’s ties to the tar sands also shows he owns over $2.7 billion worth of stock in tar sands producers such as ExxonMobil, ConocoPhillips, General Electric and Suncor as of September 7, 2013.

Another key data point: a 70-unit train carrying 51,428 barrels of fracked Bakken Oil to a Canadian east coast export terminal owned by Irving Oil derailed and exploded in a fireball on July 2013, killing 47 people in Lac-Mégantic, located in Québec province.

Coming full circle, Irving Oil and TransCanada announced a joint venture to develop and construct an export facility in St. John, Canada on August 1, less than a month after the lethal Lac-Mégantic derailment. That facility would take tar sands crude shipped from the 1.1 million barrels per day proposed TransCanada Energy East pipeline and export it to the global market.

Bakken Federal Executives Group

Bakkenlink isn’t the only game in town for the March 2012 executive order’s impact on expedited permitting in the Bakken Shale.

Enter the Bakken Federal Executives Group – helped along by Obama’s Assistant for Energy and Climate Change Heather Zichal – the Obama White House’s industry-friendly liaison to Big Oil.

“Among Zichal’s tasks is wooing Jack Gerard,” explained a May 2012 article in Bloomberg. Gerard was thought to be one of the candidates for Chief-of-Staff for Republican Party candidate Mitt Romney if he became president.

“[I]dentified by the President as one of five priority regional initiatives under Executive Order 13604 … [the] [g]roup represents a dozen federal bureaus with review and permitting responsibilities that are working collaboratively to address common development obstacles associated with the Bakken boom…,” explains an August 7 U.S. Department of Interior press release.

Newly-minted U.S. Secretary of Interior Sally Jewell – a former petroleum engineer for Mobil Oil Company – recently took a trip to the Bakken Shale oil fields to advocate for the dictates of the March 2012 Executive Order.

“The group’s Aug. 6 itinerary began with a tour of a rig operated by Continental Resources Inc., followed in the afternoon by a tour of facilities operated by Statoil, which has invested more than $4 billion in the Bakken,” explained the Oil and Gas Journal.

Continental Resources’ CEO is Harold Hamm, who served as energy advisor to Mitt Romney, the Republican Party presidential nominee for the 2012 election.

“Interior continues to be a leader in implementing President Obama’s vision for a federal permitting process that is smarter [and] more efficient,” David Hayes, Department of Interior Deputy Secretary said in a June press release. “By coordinating across the many federal agencies involved in the Bakken region … we are able to offer a better process for industry.”

Obama May 2013 memo: Cut it in half

On May 17, 2013, President Obama issued an updated memorandum titled, “Modernizing Federal Infrastructure Review and Permitting Regulations, Policies, and Procedures.”

Citing his March 2012 executive order as precedent, this memo called for cutting the time it takes to approve major infrastructure projects – pipelines included – in half.

“By the authority vested in me as President by the Constitution and the laws of the United States of America, and to advance the goal of cutting aggregate timelines for major infrastructure projects in half,” he states in the memo, with a final goal to “institutionalize or expand best practices or process improvements that agencies are already implementing to improve the efficiency of reviews.”

Scary math

Adding insult to injury, a recent story appearing in The Wall Street Journal explains Keystone XL’s northern half is no longer a priority for refiners, investors or the industry at large.

With a further delay in the cards due to conflicts of interest in the State Department’s environmental review process, it may start to matter less and less for Big Oil as it plans out its other options for getting its product to market going forward.

“U.S. companies that refine oil increasingly doubt that the controversial Keystone XL pipeline [northern half] will ever be built, and now they don’t particularly care,” explained the Journal.

Enbridge recently proposed an expansion for its Alberta Clipper pipeline (approved by Obama’s State Department in August 2009, now known as “Line 67”) from 450,000 barrels per day to 570,000 barrels per day to theState Department in a November 2012 application.

It upped the ante since the original Clipper expansion application — a move met with activist opposition — requested 800,000 barrels of tar sands run through it per day.

That’s on top of Enbridge’s recently proposed Nationwide Permit 12 – paralleling what TransCanada did for Keystone XL’s southern half – set to bring 600,000 barrels per day of tar sands to Cushing, Okla from Pontiac, Ill.

The reaction to pressure against building Keystone XL’s northern half has been – put simply – “build more and faster.” Simple math and geography shows – as The Wall Street Journal boasted – project permitting parameters have tilted more and more in Big Oil’s favor under President Obama’s watch.

With full-throttle expansion of the tar sands described as “game over for the climate” by now-retired NASA scientist James Hansen — and with fracked oil and gas found to be dirtier than coal when examined in its entire lifecycle according to a May 2011 Cornell University study — it makes for scary math indeed.

Sierra Club: FAIL: How Keystone XL’s tar sands flunk the climate test

tar sands

The Sierra Club

Sierra Club and Oil Change International just released an extensive report, titled “FAIL: How Keystone XL’s tar sands flunk the climate test,” to directly answer President Obama’s pledge to reject KXL if it significantly exacerbates #climate pollution.

Read more about the report: http://sc.org/kxl-fail-climate-test
— with Thomas Edward Pearce.

August 29, 2013
Why Keystone Flunks the Climate Test

In June President Obama set a climate test for his decision on the Keystone XL tar sands pipeline. He said he will not approve the pipeline if it would significantly exacerbate the problem of carbon pollution. Today the Sierra Club, Oil Change International, and 13 partner groups have released a report that settles the issue unequivocally: Keystone XL would be a climate disaster.

Our report, “FAIL: How the Keystone XL Tar Sands Pipeline Flunks the Climate Test,” spells out the full consequences of building the pipeline.

Start with the one fact that the State Department, the U.S. EPA, climate scientists, and even Wall Street and industry analysts all agree on: The Keystone XL tar sands pipeline will create massive amounts of carbon pollution. Tar sands, after all, are the world’s dirtiest and most carbon-intensive source of oil. Oil Change International estimates that the pipeline would carry and emit more than 181-million metric tons of carbon pollution each year. That’s the pollution equivalent of adding 37.7 million cars to U.S. roads, or 51 new coal-fired power plants.

The State Department, though, tried to ignore this 181-million metric ton elephant. It argued in its environmental review of Keystone XL that tar sands development was inevitable, regardless of whether the pipeline is built. That’s not true for several reasons.

Tar sands can be processed only at specialized refineries. The accessible U.S. and Canadian refineries capable of handling it are already at or near capacity. In order to expand production, tar sands producers must reach the U.S. Gulf Coast, where the heavy crude can be refined or, more likely, exported.

Although other pipeline projects have been proposed to export tar sands east, west, and south from western Canada, all of them face legal, technical, economic, and political obstacles that make them unlikely. Using rail is too expensive because tar sands transport requires special heated rail cars and loading terminals. Industry experts and financial firms like Goldman Sachs have already said this will be cost-prohibitive.

Keystone XL is critical for the Canadian oil industry to meet its goal of massive expansion in the tar sands. You don’t need to take our word for it, though. Just this week, Canada’s independent Pembina Institute uncovered documents from the industry itself that make that case. Briefing notes prepared for Canadian natural resources minister (and pipeline proponent) Joe Oliver state: “in order for crude oil production to grow, the North American pipeline network must be expanded through initiatives, such as the Keystone XL Pipeline project.”

The U.S. Interior Department has already joined the Environmental Protection Agency in criticizing the State Department’s environmental review for disregarding how the Keystone XL pipeline would affect wildlife and waterways. Given that we now know the State Department’s review was conducted by a consultant with strong ties to Keystone XL’s backer, TransCanada, and to the tar sands industry, perhaps we shouldn’t be surprised.

In fact, earlier this month, the State Department’s own office of inspector general confirmed that it has opened an into inquiry how its Keystone XL review was conducted. Perhaps the most serious charge is that State Department officials tried to cover up evidence of conflicts of interest.

For an administration that’s actually done many good things on climate, the State Department’s environmental review of Keystone XL is both a failure and an embarrassment. It’s time to kick the oil industry lobbyists out of the room, listen to the scientists, weigh the facts, and reject this pipeline once and for all.

Add your voice to the growing chorus: By President Obama’s own standard, Keystone XL should not be approved.

Bloomberg Policy & Politics: Calling All Keystone (XL) Cops! The Pipeline Hits More Snags

http://www.businessweek.com/articles/2013-08-02/calling-all-keystone-xl-cops-the-pipeline-hits-more-snags

opposes kx

Photograph by Julia Schmalz/Bloomberg

Steyer discusses his opposition to the Keystone XL pipeline during an interview in Washington
(Updates with response from U.S. Department of State’s Office of the Inspector General in the seventh paragraph.)

Three weeks back, when we last checked in on the lively, sometimes absurd fight over the Keystone XL pipeline, opponents of the project had just raised alarm about undisclosed conflicts of interest between ERM (ERM:LN), a U.K.-based company the U.S. State Department has relied on to assess the potential environmental impact of the proposed line, and TransCanada (TRP), the company that wants to build it. Previous conflict of interest allegations about the Keystone XL had led to congressional complaints and an investigation by the Office of the Inspector General. The new disclosures raised the prospect that the project might be further delayed by a new ethics inquiry.

Since then the saga has featured still more twists, including:

• President Obama chuckling (per the New York Times) as he low-balled the number of construction jobs the pipeline might create;

• revelations that a dozen or more state and federal Republican lawmakers apparently sent letters endorsing the pipeline that had been written by fossil fuel lobbyists;

• TransCanada’s announcement of a longer, 1,864-mile, $12 billion pipeline that, if completed, would certainly make good on the company’s name, and make the Keystone XL look more like the Keystone XS; and,

• Claims by the Washington-based Checks and Balances Project that a new U.S. government special investigation is underway over ERM.

As you’d expect, proponents of the pipeline were quick to dismiss the conflict-of-interest charges as a transparent ploy to derail the pipeline’s approval process. Guilty as charged, says Friends of the Earth’s Ross Hammond. His nonprofit engaged in opposition research, as it is called during election campaigns, to turn up the evidence that ERM had worked with TransCanada on projects that it had failed to disclose to the U.S. State Department.

Calling the conflict-of-interest charges tactical, however, doesn’t mean they lack merit. Here, (PDF), for example, is a 2010 document, cached online, in which ERM lists TransCanada as a client. Does this prove that ERM has been biased toward TransCanada in its Keystone assessment? No. But unless this document is a forgery, ERM appears not to have disclosed all it should have to the U.S. government. (ERM declined to comment.)

“The Keystone XL environmental review lost all credibility when ERM lied to taxpayers about what it was up to,” says Tom Steyer, president of NextGen Climate Action. “ERM’s hubris deprives the State Department and the public of the unbiased information they need. A large group of Americans will support Secretary Kerry if he insists on doing the review in a clean, straightforward way—this time, with an honest contractor.”

The State Department maintains that it has the situation well under control. “The selected contractor works directly with and under the sole direction of the Department of State while the applicant pays for the work,” says State official Jennifer Psaki.

Steyer, a semi-retired hedge fund billionaire, is a financial supporter of President Obama, and it’s not hard to imagine that Steyer encouraged Obama to nix Keystone’s development during the president’s most recent visit to Steyer’s home. (Could Steyer be where Obama got his low jobs-created number? Hard to say. Obama’s Keystone remarks have become political sport—”Kremlinology,” even; the Washington Post’s WonkBlog did terrific work fact-checking his figures).

The Office of the Inspector General confirms that it has “initiated an inquiry” into the ERM conflict of interest complaints, and whether or not that goes anywhere, the Keystone faces a second, straight-talking judge in Gina McCarthy, the new Environmental Protection Agency chief. Whether the pipeline proceeds is ultimately up to the President. But the EPA has a role to play: It is reviewing the environmental impact studies that contractors such as ERM have conducted.

When asked about Keystone XL recently, McCarthy first jokingly got up to leave, rather than be put on the spot. Then she replied that the EPA would strive to be “an honest commenter” on the XL plans. Up to now, that honesty (PDF) has been bracing, as the EPA has called the Keystone environmental impact statements insufficient and inadequate not once, but three times.
Wieners (@bradwieners) is an executive editor for Bloomberg Businessweek.