Monday, October 10, 2011

Keystone XL Pipeline: Stripped from the Land, Shipped Overseas

More: The State Department has admitted that its favorable environmental impact assessment was produced by a consultant with economic ties to TransCanada, the proposed pipeline builder. Cardno Entrix the hired contractor describes TransCanada as a major client in its marketing materials. The study released in August found that the pipeline would have "limited adverse effects" on the environment if operated in accordance with regulations. It is common practice for companies wanting to build projects to be involved in assigning and paying for impact analysis, but legal experts say Cardno Entrix, which also provides spill response services, has a conflict of interest because of its financial interest in the decision outcome. TransCanada chief Washington lobbyist is Paul Elliot, a top official in Secretary Clinton's failed presidential bid. Environmentalists say the study understated the impact of a spill of corrosive, hot bitumen. A bitumen spill into the Kalamazoo River has posed an extremely difficult cleanup problem, running beyond budget and schedule. A thirty five mile stretch of river has been closed since July, and cleanup costs have run over $500 million. There are more than 100 significant spills per year from pipeline facilities, a record going back more than 20 years.

{6/10/11}A lot of the justification for building the XL pipeline across America's heartland to the Gulf Coast is faux patriot raving about making American "energy independent" by sourcing our oil from a dedicated ally, Canada. Turns out that big oil wants to build it to make mo' money from oil exports. The pipeline will not lessen American dependence on foreign oil. Oil Change International has published a report based on information gathered from the US Energy Department and Canada's National Energy Board. Corporate disclosures and analysis of the demands in the international oil market show Keystone XL is an export pipeline. Higher fuel economy standards and economic recession have slowed US domestic demand for fuels as domestic oil and gas production increases. The US has its own large oil shale and bitumen deposits. Recently a huge bitumen deposit has been located in North Dakota. Valero Energy, the major customer for dirty tar sand crude, has detailed its export strategy to investors. Valero's Port Arthur refinery is in a Foreign Trade Zone, so naturally the company is anxious to refine and export oil tax free to Europe and Latin America. Valero has contracted to take at least 100,000 barrels of crude from the pipeline a day until 2030, the only US customer of the six who have jointly committed to purchase 76% of the pipeline's initial capacity. The others, Royal Dutch Shell, France's Total, Canadian producers, an international oil trading firm, and the Saudi government all intend to ship their share of dirty crude overseas. Oil is a fungible product and in this age it circulates globally. The only way to reduce America's dependence on oil and reduce greenhouse gas emissions is to reduce consumption of all fossil fuels, regardless of the ultimate source. That fact makes any argument that the sacrifice of the boreal forest and risking contamination of the Ogallala Aquifer is necessary for national security a red herring.
Nebraska's Sand Hills: bury me here!
Environmental groups sued the U.S. government yesterday to stop the construction of the pipeline. The Center for Biological Diversity, Friends of the Earth and the Western Nebraska Resources Council are asking the U.S. District Court for Nebraska to stop TransCanada from mowing the proposed right of way before it even has federal permission to begin construction. The company has responded that it was "implementing conservation measures" to protect the "American burying beetle" and that mowing does not constitute construction.  In reality it is attempting to put the Obamatron in a corner with political momentum.