oil industry

The Keystone XL Coverup: The State Department's Attempt to Hide Oil Industry Connections

  • Posted on: 21 March 2013
  • By: JesseColeman

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?

 

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Four Oil Spills in One Week: Exxon's Arkansas Tar Sands spill one of many

  • Posted on: 9 April 2013
  • By: JesseColeman

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.

Smoke pours from an Exxon Oil Refinery after an explosion in Baton Rouge, Louisiana in 1989

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.

Exxon's tar sands spill 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.

aerial view of the Alberta Tar Sands

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"

Mcdaniels said.

Arkansas Pipeline Spill
Exxon's tar sands oil spills into a cove of Lake Conway, Arkansas

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.

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After Valero and Koch donate millions, NPRA president begs for more money to fight Prop 23

  • Posted on: 17 September 2010
  • By: Connor Gibson

Despite obtaining over $4 million from Valero, $1.5 million from Tesoro and $1 million from Koch Industries subsidiary Flint Hills Resources, the president of the National Petrochemical and Refiners Association sent out a plea, literally, for more money to undermine California's legislative effort to curb greenhouse gas emissions and implement more clean energy.

In an email to members of the NPRA, president Charles Drevna wrote, "I am pleading with each of you—for our nation's best interest and for your company's own self-interest."

More can be found at the Wall Street Journal online.

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