Mother Jones Magazine has uncovered a new twist in the fight against the Keystone XL pipeline. As it turns out the authors who drafted the environmental review of the Keystone XL pipeline worked for TransCanada, Koch Industries, Shell Oil, and other oil corporations that stand to benefit from building the Keystone XL. Not only did the State Department know about these conflicts of interest, they redacted this information from public filings in attempt to conceal the truth.
For background, the Keystone XL is a proposed oil pipeline that would ship sour crude oil from the Canadian tar sands to the Gulf coast of Texas. The oil would then be refined and shipped abroad.
In order to build the pipeline, Transcanada, the company who proposed Keystone XL, must get the OK from the State Department. The State Department bases its decision on whether or not to approve the pipeline on an environmental review, conducted by a third party group overseen by the State Department and paid for by Transcanada.
This review, called the "draft supplemental environmental impact statement" was released earlier this month. It has been widely criticized as downplaying the impact that building Keystone XL will have on the climate, and all but paving the way for approval for the project.
The review was conducted by a company called Environmental Resources Management (ERM). When ERM released its review of Keystone, it also released a 55 page filing claiming that there was no conflicts of interest in writing the report. However, the State Department redacted information from this filing, including the biographies of key experts involved in writing the report.
According to Mother Jones, those redactions were meant to keep ties between the report authors and Transanada a secret from the public. Here is what the State Department was covering up:
- ERM's second-in-command on the Keystone report, Andrew Bielakowski, had worked on three previous pipeline projects for TransCanada over seven years as an outside consultant. He also consulted on projects for ExxonMobil, BP, and ConocoPhillips, three of the Big Five oil companies that could benefit from the Keystone XL project and increased extraction of heavy crude oil taken from the Canadian tar sands.
- Another ERM employee who contributed to State's Keystone report—and whose prior work history was also redacted—previously worked for Shell Oil;
- A third worked as a consultant for Koch Gateway Pipeline Company, a subsidiary of Koch Industries. Shell and Koch* have a significant financial interest in the construction of the Keystone XL pipeline. ERM itself has worked for Chevron, which has invested in Canadian tar sands extraction, according to its website.
However, this is not the first time that the State Department has been criticized for conflicts of interests involving TransCanada and Keystone XL.
From Mother Jones:
In October 2011, Obama's reelection campaign hired Broderick Johnson, who had previously lobbied in favor of Keystone, as a senior adviser. Emails obtained by Friends of the Earth, an environmental group that opposes the Keystone pipeline, revealed a cozy relationship between TransCanada lobbyist Paul Elliott and Marja Verloop, an official at the US Embassy in Canada whose portfolio covers the Keystone project. Before he lobbied for TransCanada, Elliott worked as deputy campaign manager on Hillary Clinton's 2008 presidential bid. Clinton served as secretary of state until recently.
The question is, how can the State Department get away with routinely ignoring or burying connections between the oil industry and regulators responsible for Keystone XL?
New Documents show Exxon knew of contamination from the Maryflower oil spill, still claimed lake was "oil-free"
On March 29 ExxonMobil, the most profitable company in the world, spilled at least 210,000 gallons of tar sands crude oil from an underground pipeline in Mayflower, Arkansas. The pipeline was carrying tar sands oil from Canada, which flooded family residences in Mayflower in thick tarry crude. Exxon’s tar sands crude also ran into Lake Conway, which sits about an eighth of a mile from where Exxon’s pipeline ruptured.
A new batch of documents received by Greenpeace in response to a Freedom of Information Act (FOIA) request to the Arkansas Department of Environmental Quality (DEQ) has revealed that Exxon downplayed the extent of the contamination caused by the ruptured pipeline. Records of emails between Arkansas’ DEQ and Exxon depict attempts by Exxon to pass off press releases with factually false information. In a draft press release dated April 8, Exxon claims "Tests on water samples show Lake Conway and the cove are oil-free." However, internal emails from April 6 show Exxon knew of significant contamination across Lake Conway and the cove resulting from the oil spill.
When the chief of Arkansas Hazardous Waste division called Exxon out on this falsehood, Exxon amended the press release. However, they did not amend it to say that oil was in Lake Conway and contaminant levels in the lake were rising to dangerous levels, as they knew to be the case. Instead, they continue to claim that Lake Conway is "oil-free." For the record, Exxon maintains that the "cove," a section of Lake Conway that experienced heavy oiling from the spill, is not part of the actual lake. Exxon maintains this distinction in spite of Arkansas Attorney General Dustin McDaniel saying unequivocally "The cove is part of Lake Conway…The water is all part of one body of water." Furthermore, Exxon water tests confirmed that levels of Benzene and other contaminants rose throughout the lake, not just in the cove area.
Though Exxon was eventually forced to redact their claim that the cove specifically was "oil-free," the oil and gas giant has yet to publicly address the dangerous levels of Benzene and other contaminants their own tests have found in the body of Lake Conway. The Environmental Protection Agency and the American Petroleum Institute don’t agree on everything, but they do agree that the only safe level of Benzene, a cancer causing chemical found in oil, is zero. Benzene is added to tar sands oil to make it less viscous and flow more easily through pipelines. Local people have reported fish kills, chemical smells, nausea and headaches. Independent water tests have found a host of contaminants present in the lake.
According to Exxon’s data, 126,000 gallons of tar sands crude oil from the pipeline spill is still unaccounted for.
Exxon's spill emanated from the Pegasus Pipeline, which like the proposed Keystone XL pipeline, connects the Canadian Tar Sands with refineries in the Gulf of Mexico.
As many people who watch the oil industry know, oil spills are not avoidable, preventable, or unlikely. From extraction to combustion, oil is a destructive and dirty business, based on sacrificing the health of environments and peoples for corporate profits.
This fact was especially evident last week, when Exxon’s Pegasus pipeline spilled over 150,000 gallons of toxic tar sands crude oil into Lake Conway and adjoining neighborhoods in Mayflower, Arkansas.
However, Exxon’s Mayflower spill is not an isolated incident. In fact, there were three other significant oil spills that occurred last week.
The spills, which were the result of both train derailments and pipeline ruptures, spilled many hundreds of thousands of gallons of toxic crude oil in and around neighborhoods, marshes, and rivers.
March 26 - Train Derailment in Minnesota - 30,000 gallons of crude oil spilled
Last week's cacophony of oil industry irresponsibility began with a train derailment in Minnesota, which spilled 30,000 gallons of crude oil. The oil was from Canada which has become a top exporter of crude to the United States because of their exploitation of the tar sands in Alberta.
In a fit of ill-timed opportunism, supporters of the Keystone XL pipeline, which would pump tar sands oil from Canada to the gulf coast, used this this spill as a justification for building the tar sands pipeline. A spokesman for North Dakota Senator John Hoeven, who has been one of the chief political proponents of the Keystone XL pipeline, had this to say:
"It should be clear that we need to move more oil by pipeline rather than by rail or truck...This is why we need the Keystone XL. Pipelines are both safe and efficient."
March, 29 - Lake Conoway, Arkansas - 156,000 gallons of tar sands crude oil spilled
In an incident that should make anyone question the "safety and efficiency" of oil pipelines, Exxon’s Pegasus Pipeline spilled 157,000 gallons of tar sands crude into Lake Conway and surrounding neighborhoods in Arkansas. Since the spill, Exxon has limited press access to the spill site, oiled animals, and even the skies above the spill area. Exxon has even claimed that Lake Conway has been unaffected by the oil spill, though Arkansas Attorney General Dustin Mcdaniel has set that particular record straight.
"Of course there's oil in Lake Conway"
April, 3 - Houston, Texas - 30,000 gallons of crude oil spilled
Four days after Exxon's Pegasus pipeline ruptured and seven days after Keystone XL pipeline proponents claimed "pipelines are both safe and efficient," a Shell pipeline running through a bayou outside of Houston spilled 30,000 gallons of oil into the Texas marsh. The actual amount of oil spilled by Shell's West Columbia Pipeline is still unknown, as the cause of the leak has not been released by Shell.
April, 3 - White River, Ontario - 16,642 gallons of crude oil spilled
At the same time that Shell was spewing oil into the wetlands of Texas, a train derailment in White River, Ontario was leaking oil in Canada. Most people know White River as the original home of Winnie the Pooh, but it is also a major train depot for shipping crude oil. The company responsible claimed that 4 barrels of oil were spilled, though the actual number turned out to be 10 times larger, at 400 barrels. That's 16,642 gallons of toxic crude oil. Sorry Winnie.
As the oil industry proved this week, they are incapable of protecting people and the environment from their product. As Micheal Brune of Sierra Club said:
"In Ontario, the company said it spilled four barrels when it had actually spilled 400. In Arkansas, Exxon learned about the spill from a homeowner but kept pumping tar sands crude into the neighborhood for 45 minutes, and is bullying reporters who want to tell the public what's going on. In Texas, a major oil spill came to light that Shell had been denying for days. Transporting toxic crude oil -- and tar sands in particular -- is inherently dangerous, more so because oil companies care about profit, not public safety. This is why Keystone XL, at nine times the size of the Arkansas Pegasus pipeline, must never be built.”
If built, the Keystone XL pipeline will spill. Stop the Keystone XL pipeline.
ExxonMobil, other pipeline operators don't have to pay into oil spill fund when it's tar sands oil?!
As Think Progress has just reported, a bizarre technicality allowed Exxon Mobil to avoid paying into the federal oil spill fund responsible for cleanup after the company's Pegasus pipeline released 12,000 barrels of tar sands oil and water into the town of Mayflower, Arkansas.
According to a thirty-year-old law in the US, diluted bitumen coming from the Alberta tar sands is not classified as oil, meaning pipeline operators planning to transport the corrosive substance across the US - with proposed pipelines like the Keystone XL - are exempt from paying into the federal Oil Spill Liability Trust Fund.
News that Exxon was spared from contributing the 8-cents-per-barrel fee to the clean-up fund added insult to injury this week as cleanup crews discovered oil-soaked ducks covered in "low-quality Wabasca Heavy Crude from Alberta." Yesterday officials said 10 live ducks were found covered in oil, as well as a number of oiled ducks already deceased.
Photographer Eilish Palmer, known as Lady with a Camera, has been working with HAWK (Helping Arkansas Wild Kritters), a wildlife rehabilitation centre, to locate and help ducks and other animals affected by the spill.
We I connected with Eilish on the phone she was in the rain, searching for more oil-covered animals: "I'm actually out in the woods right now looking for animals. We just found two dead ducks and one live one…We actually saw a dead wood duck and we saw its mate, it couldn't fly away, only walk. It was pretty saturated."
Eilish said HAWK was the first responder for affected wildlife in the area but has since seen Exxon establish a local mobile unit to treat animals on site. "As the number of animals increased Exxon brought in their own rehabilitation centre because we were taking that animals to a centre about an hour away. HAWK doesn't have a mobile unit."
In addition to ducks, the team working with HAWK also found this oil-laden male muskrat, suggesting a number of species may be affected.
Faulkner Country Judge Allen Dodson said "I'm an animal lover, a wildlife lover, as probably most of the people here are. We don't like to see that. No one does."
He added, "Crude oil is crude oil. None of it is real good to touch."
The Exxon spill leaked 80,000 gallons of oil into an Arkansas residential area, causing the evacuation of 40 homes. This weekend Exxon Mobil Pipeline Co. president Gary Pruessing told displaced homeowners, "If you have been harmed by this spill then we're going to look at how to make that right."
According to InsideClimate News, Exxon is currently preventing the media from accessing the spill scene. Today the Arkansas Attourney General announced an investigation is being launched into the cause of the 60-year old pipeline's rupture.
The Pegasus pipeline was originally built in the 1940s and was recently dormant for four years before its flow was reversed to carry Alberta diluted bitumen from Illinois to the Gulf Coast. In 2006 Exxon called the line's reversal a win-win for the people of the Gulf Coast and Canada.
The revelation that companies transporting diluted bitumen in the US have some concerned about pre-existing pipelines, as well as the proposed Keystone XL pipeline that will transport the tar sands-derived oil across a number of ecologically sensitive areas.
According to the NRDC, in 2011 a number of pipelines carried Alberta bitumen in the US:
Although the spread of oil refineries across the US receiving bitumen suggests the network of tar sands oil transport is much more widely spread across the States:
The network potentially connecting bitumen-carrying pipelines with other pipelines is quite extensive across the US:
Last week a coalition of environmental groups, communities and inviduals petitioned the US EPA and Pipelines and Hazardous Materials Safety Association (PHMSA) to place a moratorium on pending tar sands pipelines, including the Keystone XL pipeline, until new safety rules are established.
"Simply put, diluted bitumen and conventional crude oil are not the same substance," the petitioners wrote. "There is increasing evidence that the transport of diluted bitumen is putting America's public safety at risk. Current regulations fail to protect the public against those risks. Instead, regulations ... treat diluted bitumen and conventional crude the same."
Tomorrow, the American Legislative Exchange Council--known as ALEC--will host their 2012 Spring Task Force summit in Charlotte, NC. At tomorrow's meeting, the corporate front group will round up its various committees and prepare to peddle new state-level legislation to attack clean energy laws, protect polluting industries, privatize education, and suppress voters, among other big business schemes.
Need a refresher on ALEC? It's the group that brings state legislators to the table with representatives from major corporations in the sectors of energy, healthcare, tobacco, private prisons, and other groups to manipulate state politics to maximize their profits and limit their liabilities. These companies help craft template bills for state legislators to bring home and introduce in their respective statehouses.
Documents obtained and published by Common Cause now give us a roster of specific attendees at ALEC's environmental meetings, a consortium of state legislators and a who's who of the most offensive polluting political heavyweights including: Koch Industries, ExxonMobil, Duke Energy and Peabody. Participating legislators know well they're walking into a dirty party, sometimes using state taxpayer money to foot the bill.
The corporations that fund ALEC are well known for their political spending on both sides of the aisle. ALEC funders include Koch Industries, known for its coordinated political spending against President Obama, and Duke Energy, which is laying down a ten million dollar line of credit to host the Democratic National Convention in their hometown of Charlotte, NC. But these polluting companies are co-conspirators under the banner of ALEC, where partisan politics are set aside to focus on the mission of destroying environmental protections, clean energy competition and liability for crimes against both people and the ecosystems sustaining us.
So what exactly are ALEC and these oil, coal, chemical and public relations companies focusing on tomorrow?
According to their newest meeting memorandum, ALEC's Energy, Environment and Agriculture task force is going to discuss some pending model laws that ALEC will likely be approved for state distribution:
- The "Electricity Freedom Act" (really? Electricity Freedom?!) is a new attack on states with plans requiring companies to get a certain percentage of their electricity from renewable sources. This new bill is similar to other legislation ALEC has already peddled in several states and compliments an "email and telephone campaign" against state renewable energy standards, according to the Guardian.
- The "Coal Intrastate and Use Act" serves to prevent EPA from overruling state permits for coal mining and producing dirty coal products (like liquid coal for fuel) if all the coal operations are conducted within the borders of a single state.
- The "Resolution on U.S. Conference of Mayors Climate Protection Agreement Accountability" mandates a report be filed on cities and states that have fallen short of their goals to reduce greenhouse gases through the Mayors Climate Protection Agreement, which has over 1,000 signatories. ALEC's new resolution then demands that any program that hasn't met its goal be canceled out right, voiding the Climate Protection Agreement altogether. Keeping in mind that ALEC's members like Koch and Exxon have fought greenhouse gas programs at every turn for years, it is obvious that this ALEC bill is meant for one thing, attacking programs that address carbon emissions.
- A resolution demanding the passage of the notorious federal REINS Act, which would give Congress the power to block the enforcement of just about any federal protection--clean air and water laws, safeguards for mine workers, prohibiting tobacco sales to kids, protection from discrimination, you name it. It's the ultimate gift from Congress to their corporate fundraisers who would like to avoid responsibility for...everything.
- The exhaustively-titled "Resolution Supporting a Reasonable Compliance Timeline and Economy-wide impact study of EPA’s Mercury and Air Toxics Rule" has a simple purpose: delay when coal-burning utilities have to reduce mercury pollution and other severely hazardous emissions. For major mercury polluters like Energy Future Holdings, American Electric Power, and Duke Energy, this is likely to be a popular item tomorrow.
Documents obtained and published by Common Cause also show us what ALEC's focal points have been for other meetings in the last two years. Here are a few examples:
- A resolution urging Congress and the State Department to push through TransCanada's Keystone XL tar sands pipeline. ALEC recycles a lofty jobs lie in their reasoning for this resolution, ignoring State Department KXL job estimates under 2,000 and a Cornell study warning that "There is evidence to suggest that the effects of KXL construction could very well lead to more jobs being lost than are created." How many jobs does ALEC assume? 120,000 -- see Greenpeace's letter to the SEC to understand how they were calculated by politics rather than reality. Go figure--the American Petroleum Institute and its largest members were in the room when this resolution was forged.
- A deceptive ALEC bill pushed by ExxonMobil that "discloses" chemicals used by the oil industry in fracking operations, but actually inserts loopholes to avoid disclosure of certain fracking chemicals. This bate-and-switch comes at a time when doctors are concerned about signing confidentiality agreements if they ask for disclosure of fracking chemicals when treating people who are exposed to chemicals from gas drilling.
- A resolution that would prevent EPA from recognizing coal ash as a hazardous substance (it contains neurotoxins, carcinogens and radioactive elements). This may well have served as the model for the coal ash amendment that is currently being tacked on to the federal transportation bill by Rep. David McKinley (R-WV). Coal ash was a repeated topic of discussion at ALEC's energy task force meetings over the last two years, according to their meeting documents.
Who exactly attends these events? Beyond ALEC staff and dozens of corporate representatives, industry front groups are also represented. Tomorrow will feature John Felmy of the American Petroleum Institute in a presentation on gas prices (spoiler alert: this crowd will probably blame the President). Next up: presentations from representatives of the Edison Electric Institute (utility trade group) and the Nuclear Energy Institute (nuclear industry lobby).
Perhaps most intriguing will be a chat about "The Dirty Truth Behind Reusable Bags" led by Charles Gerba, who will warn attendees that reusable bags will give them "projectile vomiting and diarrhea." Gerba may not mention this dramatic and messy sickness can be avoided by simply washing one's reusable bags, since Mark Daniels of Hilex Poly (a plastic bag company) regularly attends these meetings, and Gerba serves as an advisor to Hilex Poly.
ALEC always gets some of industry's most interesting mouthpieces to set the rhetorical tone for those attending ALEC's anti-environmental jamborees. Looking back to last August at ALEC's Energy, Environment, and Agriculture task force meeting in New Orleans, presenters included:
- Robert Bradley of the Institute for Energy Research, which made press recently when its sister group the American Energy Alliance spend $3.6 million on ads blaming the President for high gas prices. IER has a former Koch lobbyist on staff and has received $175,000 from Koch foundations in recent years as part of the climate denial network.
- Gerry Angevene of the Fraser Institute, another longtime player in the Koch- and Exxon-funded climate denial machine
- James Taylor of the Heartland Institute, which has helped champion ALEC efforts to confuse K-12 students about climate science. Heartland is currently in the middle of a crisis as corporate funders are distancing themselves from its comparison of terrorists and serial killers to those who recognize the reality of global warming. Seriously, they put the Unabomber on a billboard saying, "Do you still believe in global warming? I do. www.heartland.org"
- Craig Idso, whose nutjob Center for the Study of Carbon Dioxide and Global Change has been paid by the coal industry and the Heartland Institute to tell people that global warming is good for the planet. Craig Idso explained this nonsense to state legislators in August. As is the pattern here, see the Center's history of Koch- and Exxon-funding, as well as Idso's former employment at Peabody and work for the Western Fuels Association.
- Stephen Miller of the American Coalition for Clean Coal Electricity, which spends big on national advertisements promoting the idea that perhaps coal isn't inherently dirty, dangerous and deadly (it is). Miller, who is resigning from ACCCE this year after serving as a dilligent coal apologist for the last decade, came under Congressional fire in 2009 when it was revealed that ACCCE contractors forged letters on behalf of groups "representing senior citizens, minorities and veterans," including the NAACP.
Likely due to the publicity of ALEC Exposed and the recent mass migration of 16 companies and 34 state politicians away from ALEC (in response to controversial bills on voter suppression and Stand Your Ground laws that protected Trayvon Martin's killer), ALEC no longer includes the specific members of its task forces in the documents it mails to participants beforehand. ALEC's Energy task force as of June, 2011 shows the nefarious people who run this dirty operation, by name. People representing the following groups have been consistently present at recent ALEC meetings over the last couple years:
Oil and gas industry:
- Shell Oil
- American Petroleum Institute
- Occidental Petroleum
- Marathon Oil
- Continental Resources
- American Gas Association (trade association)
- Peabody Energy
- Cloud Peak Energy
- Duke Energy & Progress Energy (which are merging into the nation's largest utility company)
- Energy Future Holdings
- American Electric Power
- PacifiCorp (a MidAmerican subsidiary, owned by Warren Buffet's Berkshire Hathaway)
- Alliant Energy
- Pinnacle West
- MDU Resources
- NV Energy
- Edison Electric Institute (trade association, membership includes all utilities above)
- American Coalition for Clean Coal Electricity (membership includes AEP, Peabody, and Energy Future Holdings subsidiary Luminant)
- Salt River Project
- National Rural Electric Cooperative Association (an aggressive lobbying group for electrical utility cooperatives and top political donor in the energy sector)
- Nuclear Energy Institute (trade association)
- Duke, Progress, AEP, and Pinnacle West all have notable nuclear generation capacity
Other major polluters:
- Dow Agrosciences
- International Paper
- American Chemistry Council (top trade association for chemical companies)
- Bayer Healthcare (Bayer is the country's top air polluter according the Political Economy Research Institute at U-Mass, Amherst)
- Honeywell (#31 on PERI's toxic air polluters list)
- General Motors (GM has a history of climate denial, although GM Foundation just dumped the Heartland Institute)
- LyondellBasell Industries (third largest chemical company in the world)
Front groups, all involved in climate science denial (Koch funding since 2005):
- Americans for Prosperity ($5,760,781)
- Atlas Economic Research Foundation ($152,600)
- Commonwealth Foundation ($84,532)
- Goldwater Institute ($70,427)
- John Locke Foundation ($47,472)
- Heartland Institute ($25,000)
Public Relations Firms
Dezenhall Resources, which Businessweek calls the "Pit Bull of Public Relations." Dezenhall Resources is currently included in a Greenpeace lawsuit due to its role in hiring spies on behalf of chemical companies to track Greenpeace's internal campaign plans.
Posted on behalf of Phil Radford, Greenpeace's Executive Director in the U.S.
TransCanada has some explaining to do.
Greenpeace just sent a letter to TransCanada's CEO, Russ Girling, as well as the company's board of directors asking for complete documentation of how it came to its inflated conclusions on Keystone XL pipeline jobs here in the U.S. That letter is posted in full below (click here to see it).
We are following up on a letter Greenpeace sent to the Securities and Exchange Commission last week noting that TransCanada's job claims per mile of U.S. pipeline are 67 times higher than the estimates they provided to the Canadian government for its portion of Keystone XL. SEC notified us that our complaint was sent to their enforcement division.
TransCanada has already bit back at our complaint, insinuating that Greenpeace doesn't know anything about pipelines. Perhaps TransCanada can explain why its existing Keystone pipeline leaked 14 times in less than 18 months when it anticipated a rate of 1.4 leaks per decade -- check out this infographic for descriptions of the first twelve leaks. Nebraska's ecologically sensitive Sandhills region and the Ogallala aquifer cannot be subject to TransCanada's insufficient pipeline safety standards, especially when that pipeline carries corrosive tar sands for almost 2,000 miles. And with well over 1,000 miles of pipeline proposed in our country, it's alarming that as little as 50 people may be employed to monitor and maintain it, as Cornell's Global Labor Institute suggests. Read the independent Cornell report yourself.
TransCanada has also boosted its employment statistics by equating one job to one full year of employment for one person. This is part of how TransCanada and its allies inflated State Department estimates of less than 7,000 jobs, while the Cornell assessment concludes that Keystone XL could kill more jobs than it would create. Meanwhile, the American Petroleum Institute, the U.S. Chamber of Commerce and others are paying big for advertising campaigns that re-hash TransCanada's flawed 20,000 jobs claim, and from there claim hundreds of thousands of jobs from indirect employment. By indirect employment I mean services the oil industry isn't actually providing, which would would dry up after pipeline construction ends.
Unfortunately, the media is buying TransCanada's lies despite some reporting from the Washington Post and others that have already called the jobs numbers into serious question. According to Media Matters, 0% of broadcasters covering Keystone XL were critical of the jobs claims. Things weren't much better in coverage on cable news (11%) or print news (5%) either. Excluding USA Today and the Los Angeles Times, all major media outlets quoted more Keystone XL pipeline supporters than opponents. That's pretty bogus--Jack Gerard must have been popping the champagne over at the American Petroleum Institute headquarters as he put millions of dirty dollars to work through advertising campaigns like "Vote 4 Energy."
It's ridiculous although unsurprising that TransCanada and Big Oil act as if pipeline jobs are the only ones that exist. Why mention that any dollar invested in a polluting, outdated, climate-destroying industry is better invested in creating jobs in the clean energy sector? Big Oil would never be that forthcoming. They'd rather keep Americans fenced within the Kingdom of Crude, where not only are they the most profitable industry on earth, but taxpayers still pay handouts for their multi-billion dollar operations.
Dear Mr. Girling:
I read with considerable interest your company’s response to our request to the Securities and Exchange Commission (SEC) that it investigate the possible illegal use of misleading and deceptive job claims to win approval for the Keystone XL pipeline, which would boost your company’s bottom line considerably:
“These groups have never built or operated a pipeline,” said company spokesman, Terry Cunha, to Politico.
Mr. Cunha is correct; Greenpeace has never built a pipeline funneling corrosive tar sands crude oil across the heartland of the United States, endangering America’s groundwater, and then selling the oil overseas. What we do have experience in, however, is examining facts. Your claims just don’t add up. How will your pipeline create 67 times more jobs in the U.S. than your company told Canadian officials it would in Canada?
Greenpeace calls for an end to destructive tar sands mining, which you must be aware is fueling global climate disruption and poisoning indigenous people in northern Alberta. Our opposition extends to projects like Keystone XL that aim to solidify continued decades of carbon pollution. I must admit that we probably won’t ever try to build something that will spill oil, threaten aquifers and create a several thousand mile-long terrorist target.
However, you clearly do have such expertise, both in building pipelines and watching them spill, as demonstrated by 12 reported leaks in the first year of your existing Keystone pipeline’s operation. That’s why I’m inviting you to (possibly) head off SEC action and significant public embarrassment by explaining how TransCanada created such contradictory job creation claims.
I invite you to provide a detailed, plain-language explanation of this remarkable difference in job creation rates. Several groups of people await this important explanation, including investors, dozens of politicians and pundits who have recycled your company’s fictitious job creation numbers, and SEC enforcement officials eyeing SEC Rule 10b(5) – Employment of Manipulative and Deceptive Practices.
Greenpeace also would appreciate it if you could direct your contractor, Ray Perryman, to give a detailed accounting of the assumptions and methodology of the calculations he performed for your company on the pipeline’s supposed benefits.
We’ll gladly post any detailed, credible explanation of this wide discrepancy in job creation numbers on our website.
Cc: TransCanada Corporation Board of Directors
Sent by email, fax and direct mail.
Today Greenpeace sent a letter to the Securities and Exchange Commission (SEC) asking them to stop TransCanada Corporation from continuing to illegally mislead investors and the American public with wildly inflated job creation claims for its Keystone XL tar sands pipeline.
TransCanada and its allies in Congress (TransCanada has spent $1.3 million dollars on lobbying for Keystone XL) have routinely used deceitful jobs numbers in their support of the Keystone pipeline, claiming that it would create 20,000 jobs in America. In reality the pipeline will create less than 1/3rd that number, possibly far less according to studies by the EPA and Cornell University.
Furthermore, TransCanada knows its jobs claims are exaggerated. According to the company, the U.S. pipeline would create jobs at a rate 67 times higher per mile of pipeline than the rate given to Canadian officials for the miles of pipeline it would build in that country.
SEC rules forbid the use of "manipulative and deceptive practices" to directly affect the value of the company's stock. TransCanada CEO Russ Girling directly connected the pipeline’s approval with his company’s profits in an April 2011 earnings conference call, making his company’s manipulative and deceptive jobs data illegal according the SEC rules.
As Phil Radford, Executive Director of Greenpeace said in a recent speech, "It’s wrong for politicians and pundits to use these false numbers, but it’s illegal for TransCanada to lie to investors. The SEC needs to take immediate action to hold TransCanada accountable for misleading investors to boost its valuation,” "TransCanada needs to knock off the propaganda and level with people that they'd create a few temporary jobs just to move dirty oil through our country so it can be shipped to Europe for maximum Big Oil profits."
How great would it be if our elected officials had to follow a set of rules that created a fair playing field in politics? Mistruths and false promises would be seriously penalized by watchful referees and policy ideas could succeed or fail on their merit, rather than the checkbook of their supporters. Instead we have a system where industry and government collude to pass projects that are bad for people and bad for the environment, but increase corporate bottom lines and campaign coffers. Politicians repeat dishonest and twisted information, violating the trust between the electorate and the elected. A low blow to the American people, yet usually no one is there to blow the whistle.
This kind of poor sportsmanship was on full display at yesterday’s meeting of the House subcommittee on energy. The committee met in response to the rejection of the Keystone XL tar sands pipeline, a Canadian project that would pump the dirtiest and most carbon intensive crude oil in the world from Alberta, Canada to the Gulf Coast.
(Picture of the tar sands)
Promoters of the pipeline were attempting a Hail Mary to save Keystone XL by stripping the ability to regulate it from the Obama administration and giving it to the Federal Energy Regulatory Commission (FERC). To make their case, Keystone XL’s congressional supporters (who have taken a whopping $41 million in campaign contributions from Big Oil) were willing to toss around all the falsehoods and industry talking points that have been polluting the debate from the beginning.
Fans of the Tar Sands pipeline, like Joe Barton, John Shimkus, and Fred Upton, claim the pipeline would provide 20,000 jobs, lower gas prices for Americans, and decrease our dependence on foreign oil. These claims are all false - in reality the pipeline would create less than 1/3rd of the jobs pipeline enthusiasts claim, there would be no cost savings on gas for Americans, and the oil will be exported from Port Arthur, Texas, so it would not even be used in America. To top it all off, Port Arthur is registered as a foriegn trade port, meaning the U.S government would not even recieve taxes from the tar sands oil shipped abroad.
(Activist referees calling a foul)
The deceptive claims made by fans of the tar sands are a violation of the American people’s trust in their elected representatives. That’s why a group of activist referees attended the committee hearing, and threw a penalty flag every time Big Oil’s congressmen tried to pull a fast one. Not used to playing by the rules, Congressional advocates racked up a ton of red flags as they repeated their inaccurate data and manipulative talking points over and over. Check out a video of the committee hearing for a taste of what these refs had to deal with.
The annual State of the Union address is political theater at its best--millions of Americans tune in to watch the big wigs schmooze, applaud the President in partisan waves and reveal the administration's platform for the rest of the year. Entertaining as it can be, the State of the Union also gives frustrating examples of who is successfully framing the national debates in our country. This year it was obvious that Big Oil, particularly the American Petroleum Institute (API), is forcing the U.S. to adopt it's narrow idea of America's "energy future."
In fact, the President of the United States sounded a lot like the self-appointed President of U.S. Energy--API president and CEO Jack Gerard. Compare one of Jack Gerard's key talking points from his recent "State of American Energy" address with a line from Obama's State of the Union speech last night (emphasis added):
GERARD: "We need all of our resources—oil and natural gas, coal, nuclear, wind, solar, biofuels and more."
OBAMA: "This country needs an all-out, all-of-the-above strategy that develops every available source of American energy - a strategy that's cleaner, cheaper, and full of new jobs."
It appears that, after repeated circulation among oil lobbyists and their apologists in Congress, President Obama has bought into this "all of the above" nonsense, an empty rhetorical gesture designed to keep our country dependent upon dirty energy like synthetic tar sands crude oil and gas obtained through controversial hydraulic fracturing. The "all of the above" line has been promoted on the websites of the American Petroleum Institute as well as API's "Energy Tomorrow" blog, the American Fuel & Petrochemical Manufacturers website and among members of Congress.
What Big Oil really means is that they'll continue to wave the carrot of clean energy in our faces as they push aggressively for increased oil and gas projects, subsidies and profits. This agenda infiltrates our government through the millions spent on Congressional campaign contributions and millions more on federal lobbying, and infiltrates the American public through expensive advertising campaigns like API's new "Vote 4 Energy" commercials. See Greenpeace's mock Vote 4 Energy commercial at the bottom of the blog.
While I'm sure Gerard and other oil lobbyists are thrilled with the results of their mass media campaigns and federal influence peddling, you can be their public response to the President's speech will be less appreciative.
Dirty energy lobbyists like Jack Gerard aren't going to stop harassing President Obama even if his administration "opened millions of new acres for oil and gas exploration." It will never be enough for Big Oil, which is why it's alarming that the President just bowed to two of the American Petroleum Institute's three major demands: opening up "75 percent of our potential offshore oil and gas resources," which spells inevitable doom for our coastlines, and pushing dangerous gas fracking forward despite the inability for state regulators and the Environmental Protection Agency to keep up with the industry's voracious appetite. API and it's Big Oil members aren't going to stop griping over the rejected Keystone XL tar sands pipeline because of these concessions--they will continue to demonize Obama's cabinet as a perpetual obstruction to "freedom" and "prosperity" and bombard us all with inflated jobs claims cooked up by their own reports. Congressional Republicans are already demanding more in response to Obama's energy plan despite it's destructive concessions, repeating the "all of the above" line in the process.
These criticisms are not to say that the President got it all wrong on his energy ambitions. His statements on prioritizing clean energy development and investing in widespread energy efficiency are crucial to the reduction of greenhouse gas concentration in our atmosphere as well as securing our energy infrastructure, creating space for newer, safer jobs while reducing unnecessary risks like deadly air pollution from refineries and unstoppable oil spills started by foreign companies like BP.
Without making the connection to the oil industry (and every other large industry meddling in federal policies), President Obama mentioned the "corrosive influence of money in politics." The oil industry has spent over $55.7 million on federal politicians in the last five years and an additional $651 million on federal lobbying in the same timeframe. Activist leader and scholar Bill McKibben notes that the 234 House Representatives who voted last December to fast track the Keystone XL pipeline took $42 million from the fossil fuel industry, while the 193 opposing members took a cumulative $8 million.
If that's not corrosive influence, then I don't know what is.
Vote 4 Energy mock commercial:
Two days ago, President Obama denied the permit for the destructive Keystone XL tar sands pipeline, much to the dismay of Big Oil's top lobbyist and propagandist. Speaking at the National Press Club to an audience dominated by oil, coal and nuclear representatives and lobbyists, American Petroleum Institute (API) president Jack Gerard continued to lash out at President Obama over the pipeline decision. However, activists attending their event fact checked Jack's big oil talking points.
Shortly after asking the president, "what are you thinking?!" a group of activists stood and delivered a call-and-response "fact check" over Gerard's speech -- see the full Fact Check video. After the event, PolluterWatch's Connor Gibson approached Jack Gerard on camera and repeatedly asked him how much the American Petroleum Institute (API) is spending on its new "Vote 4 Energy" advertising campaign (which, as Mr. Gerard has absurdly claimed, is "not an advertising campaign"). Jack refused to answer:
Vote 4 Energy, which was mocked by a parody commercial during its public release, is the American Petroleum Institute's newest money dump to pretend that most Americans support politicians who represent Big Oil more than their own constituents. Wrapping its talking points in patriotic rhetoric, API's real intent is to continue getting billions of taxpayer dollars each year to corporations like ExxonMobil, Shell and Chevron, which rank among the most profitable companies in the world.