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CCST Report: Fracking pollution poses major risks

[Editor:  Contrasting reports on a recent California Council on Science and Technology report.  – RS]

Repost from The Center for Biological Diversity

New Study: Fracking Pollution Poses Major Threat to California’s Air, Water

Scientists’ Warnings Come Too Late to Shape State’s Weak Fracking Regulations

July 15, 2015

SACRAMENTO, Calif.— A study released today by the California Council on Science and Technology warns that fracking and other oil extraction techniques emit dangerous air pollution and threaten to contaminate California’s drinking water supplies. Millions of Californians live near active oil and gas wells, which exposes them to the air pollutants indentified in the report.

The troubling findings come a week after Gov. Jerry Brown’s oil officials finalized new fracking regulations that do little to address such public health and water pollution risks.

“This disturbing study exposes fatal flaws in Gov. Brown’s weak fracking rules,” said Hollin Kretzmann of the Center for Biological Diversity. “Oil companies are fouling the air we breathe and using toxic chemicals that endanger our dwindling drinking water. The millions of people near these polluting wells need an immediate halt to fracking and other dangerous oil company practices.”

Last week the state’s Department of Conservation began implementing new fracking regulations and finalized an assessment of fracking’s health and environmental risks, even though the science council had not finished evaluating fracking’s dangers. The science council is an independent, nonprofit organization that advises California officials on policy issues.

Today’s report concludes that fracking in California happens at unusually shallow depths, dangerously close to underground drinking water supplies, with unusually high chemical concentrations. That poses a serious threat to aquifers during the worst drought in California history.

Air pollution is also a major concern. In the Los Angeles area, the report identifies 1.7 million people — and hundreds of daycare facilities, schools and retirement homes — within one mile of an active oil or gas well. Atmospheric concentrations of pollutants near these oil production sites “can present risks to human health,” the study says.

But Gov. Brown’s new fracking regulations do not address deadly air pollutants like particulate matter and air toxic chemicals. A recent Center analysis found that oil companies engaged in extreme oil production methods have used millions of pounds of air toxics in the Los Angeles Basin.

Among the science council’s other disturbing findings:

  • California places no limits on how close oil and gas wells can be to homes, schools or daycare facilities, which can expose people to dangerous air pollution from fracking and other oil extraction procedures.
  • Serious concerns are raised over the oil industry’s disposal of fracking waste fluid and produced water into open pits and the use of oil waste fluid to irrigate crops.
  • The health and water pollution impacts of fracking chemicals that could be present in oil waste that’s dumped into open pits “would be extremely difficult to predict, because there are so many possible chemicals, and the environmental profiles of many of them are unmeasured.”
  • Wildlife habitat can be fragmented or lost because of fracking and other oil development – and fracking-related oil development in California “coincides with ecologically sensitive areas” in Kern and Ventura Counties.
  • Confirmation that many oil industry wastewater injection wells are close to active faults — a practice has triggered earthquakes in other states. The science council identified more than 1,000 active injection wells within 1.5 miles of a mapped active fault — and more than 150 are within 656 feet.

“These troubling findings send a clear message to Gov. Brown that it’s time to ban fracking and rein in our state’s out-of-control oil industry,” Kretzmann said. “California should follow the example set by New York, which wisely banned fracking after health experts there concluded this toxic technique was just too dangerous.”

Contact: Clare Lakewood, (510) 844-7121, clakewood@biologicaldiversity.org
The Center for Biological Diversity is a national, nonprofit conservation organization with more than 900,000 members and online activists dedicated to the protection of endangered species and wild places.

Repost from Public News Service

Report: Fracking Risk to CA is Aquifer Contamination, Not Quakes

By Suzanne Potter, July 10, 2015
PHOTO: A hydraulic fracturing well in Kern County. The safety of fracking is the subject of a new report. Photo credit: California Council on Science and Technology.
PHOTO: A hydraulic fracturing well in Kern County. The safety of fracking is the subject of a new report. Photo credit: California Council on Science and Technology.

SACRAMENTO, Calif – A new report says hydraulic fracturing can contaminate groundwater when the excess water is not properly disposed of, but is not linked to earthquakes in California.

In January, a study by the Seismological Society of America linked a series of earthquakes in Ohio to fracking, and there have been similar claims in other states as well.

The new study released Thursday comes from the California Council on Science and Technology and the Lawrence Berkeley National Laboratory. Jane Long, the lead scientific researcher, says hydraulic fracturing poses some safety concerns but they’re manageable.

“A lot of things people were concerned about are things that are not as big a problem as they think they are,” says Long. “And some of the practices are things that need to change and need more attention.”

The report says the oil companies should phase out percolation ponds used to dispose of excess water because toxic fracking chemicals can get into the aquifer. And it recommends companies put aside about a third of the chemicals currently in use because there’s not enough data about them.

The Center for Biological Diversity points to the finding that oil operations can pollute the air in their immediate vicinity. Long is optimistic that the report will spur further reforms.

“Some of them are going to be recommendations that will be very easy to act on right away and I think they will be acted on and some of them are going to require some process,” she says.

The report was required by the 2013 passage of State Senate Bill 4, which established new safety measures for fracking, rules that went into effect on July 1.

 

With fracking boom and oil trains, big cities fear explosive safety risks

Repost from The Blade, Toledo, Ohio
[Editor:  Significant quote by Josh Mogerman, spokesman for the Natural Resources Defense Council’s Great Lakes regional office in Chicago: “Welcome to the Bomb Train Capital of America…. Of all the suite of issues I work on for the NRDC, this is the scariest…. These are moving targets going through very, very densely populated areas.

RISKY CARGO ON MIDWEST OIL TRAINS

Amid fracking boom, cities fear explosive safety risk it can carry

BY TOM HENRY , BLADE STAFF WRITER, June 1, 2015

CHICAGO — While the global fracking boom has stabilized North America’s energy prices, Chicago — America’s third largest city and the busiest crossroads of the nation’s railroad network — has become ground zero for the debate over heavy crude moved by oil trains.

With the Windy City experiencing a 4,000 percent increase in oil-train traffic since 2008, Chicago and its many densely populated suburbs have become a focal point as Congress considers a number of safety reforms this year.

Many oil trains are 100 or more cars long, carrying hydraulically fracked crude and its highly explosive, associated vapors from the Bakken region of Montana, North Dakota, Saskatchewan, and Manitoba.

A majority of those trains also cross northwest Ohio on their way to refineries and barge terminals along the East Coast.

Derailments can lead to massive explosions, such as the one on July 6, 2013, when a runaway train derailed in Lac-Megantic, Que., just across the U.S.-Canada border from Maine. The resulting explosions and fire killed 47 people and leveled the town’s business district.

“For me to assure my community there’s no risk, I would be lying,” Aurora, Ill., Mayor Tom Weisner told reporters on the Halsted Station’s elevated platform near downtown Chicago last week. The discussion was arranged by the Institutes for Journalism & Natural Resources, a group that promotes better environmental reporting.

Authorities are concerned a rail accident would be catastrophic, as trains are carrying more heavy crude since fracking became popular.
Authorities are concerned a rail accident would be catastrophic, as trains are carrying more heavy crude since fracking became popular. THE BLADE/BRIAN BUCKEY

“A derailment in or around our downtown would be absolutely disastrous,” he said.

One of Chicago’s distant western suburbs, Aurora, with 200,000 people, is the second-largest city in Illinois. Though it has fewer than one resident for every 10 in Chicago (population: 2.7 million), Aurora is somewhat smaller than Toledo, which has 281,000 residents.

Mr. Weisner, whose mayoral office overlooks tracks where many of the oil trains pass going toward Chicago, shrugged when asked about emergency planning.

“That always helps, of course. But you could have a major catastrophe before they could arrive on the scene, and that’s the truth,” Mr. Weisner said, noting the Lac-Megantic explosion on at least three occasions.

Closer to home, he said, are memories of a train explosion on June 19, 2009, in Cherry Valley, Ill., just outside Rockford.

Although that derailment involved a train carrying flammable ethanol — not an oil train — its fire killed a motorist stopped at a railroad crossing, injured seven people in cars plus two firefighters, and forced the evacuation of 600 homes.

Aurora, Ill., Mayor Tom Weisner fears what would happen if an oil train derails and explodes in an urban area.
Aurora, Ill., Mayor Tom Weisner fears what would happen if an oil train derails and explodes in an urban area. THE BLADE/TOM HENRY

On March 5, 21 cars of a 105-car BNSF Railway train hauling oil from the Bakken region of North Dakota derailed in a heavily wooded, rural area outside Galena, Ill.

The train erupted into a massive fireball 3 miles from a town of 3,000 people in the northwest corner of Illinois, near the Iowa and Wisconsin borders.

No deaths were reported from that incident and, like several other derailments that have resulted in explosions and fires in recent years, it occurred in a rural area.

Mr. Weisner and others fear it is a matter of time before a much higher-profile incident occurs in Chicago or some other big city where the death toll could be significant.

Shortly after he finished, an oil train moved past Halsted Station, whose tracks are flanked by high-rise apartment buildings.

Oil trains move throughout the Great Lakes region after getting filled with Bakken crude, often ending up on the East Coast.

Chicago and the rest of the Great Lakes region is “the heart of the country,” Mr. Weisner said.

“We’re always going to be at one of the highest levels of exposure,” the Aurora mayor said. “There’s no doubt about it.

This July 7, 2013, photo shows fire fighters watering smoldering rubble in Lac Megantic, Que., after a runaway train derailed causing explosions that killed 47 people and leveled the town’s business district.
This July 7, 2013, photo shows fire fighters watering smoldering rubble in Lac Megantic, Que., after a runaway train derailed causing explosions that killed 47 people and leveled the town’s business district. ASSOCIATED PRESS

Environmental activists such as Josh Mogerman, spokesman for the Natural Resources Defense Council’s Great Lakes regional office in Chicago, put the risk in more graphic terms.

“Welcome to the Bomb Train Capital of America,” he told reporters outside a coffee shop at West Maxwell and Halsted streets, three blocks north of the train station where Mr. Weisner would speak moments later.

“Of all the suite of issues I work on for the NRDC, this is the scariest,” Mr. Mogerman said. “These are moving targets going through very, very densely populated areas.”

Tony Phillips is an artist who lives in a condominium adjacent to Chicago’s Halsted Station.

He said he can hear “the rip of noise” and feel his building shudder as oil trains come by, often in the wee hours of the morning. He said he feels a “slosh effect” in the flooring from the oscillating weight of crude if he gets up in the middle of the night.

“That’s a little spooky,” Mr. Phillips said.

He and others want reforms, tighter rules, and more robust train cars, if nothing else. Some efforts are being made through tighter regulations, but critics claim they’re either not enough or being phased in too slowly.

Fracking boom

Tony Phillips points to the condo in Chicago where he lives on the other side of the tracks at the Halsted Station, where oil trains pass by.
Tony Phillips points to the condo in Chicago where he lives on the other side of the tracks at the Halsted Station, where oil trains pass by. THE BLADE/TOM HENRY

Lora Chamberlain, spokesman for Frack Free Illinois and a new coalition called Chicagoland Oil By Rail, said vapor removal should be on the list of priorities to help mitigate the risk.

In a May 7, 2014, order, the U.S. Department of Transportation called for state emergency responders to receive more information about railroad routes handling 1 million gallons or more of Bakken crude oil per week because the number and type of railroad accidents “is startling.”

In 2013, America moved 8.3 billion barrels (348.6 billion gallons) of crude oil via pipeline — nearly 29 times the 291 million barrels (12.2 billion gallons) moved by rail, according to data from the Association of Oil Pipelines and the Association of American Railroads.

Safety experts see North America at a turning point because of the oil and gas industry’s rapid increase in hydraulic fracturing of shale bedrock, a process commonly known as “fracking” that the U.S. Energy Information Administration predicts will remain strong for at least the next 30 years.

Fracking has occurred commercially since the 1950s. The game-changer occurred less than a decade ago, when a technique developed to combine horizontal drilling with fracking made it economical to go after vast reserves of previously trapped oil and natural gas worldwide — including in eastern Ohio and western Pennsylvania, where the Utica and Marcellus shale regions meet.

Rail traffic

Railroads moved 493,126 tank-car loads of oil in 2014, a nearly 5,200 percent increase over the 9,500 tank cars that hauled oil before the fracking boom began to hit its stride in many parts of North America in 2008, according to the U.S. Department of State. Before the fracking boom, rail shipment of crude was rare and generally confined to a few isolated corridors where pipelines hadn’t been built.

Overall domestic crude production has risen 70 percent during that same period. U.S. Energy Information Administration figures show domestic oil produced at a rate of 8.5 million barrels a day in 2014, up from 5 million barrels a day in 2008.

Mogerman
Mogerman | THE BLADE/ BRIAN BUCKEY

This year, crude is expected to be produced at a rate of 9 million barrels a day, just shy of its peak rate of 9.6 million barrels a day in 1970, according to the Energy Information Administration.

“While pipelines transport the majority of oil and gas in the United States, recent development of crude oil in parts of the country under-served by pipeline has led shippers to use other modes, with rail seeing the largest percentage increase,” a Government Accountability Office report said. “Although pipeline operators and railroads have generally good safety records, the increased transportation of these flammable hazardous materials creates the potential for serious accidents.”

The agency cited a need for better U.S. Department of Transportation rules on flammability of products shipped by rail and a greater emphasis on emergency preparedness, “especially in rural areas where there might be fewer resources to respond to a serious incident.”

In its 2015 forecast, the Association of American Railroads contends railroads “are making Herculean efforts” to improve “an already safe nationwide rail network” now crisscrossing some 140,000 miles of the country.

The trade association said freight railroads plan to spend a record $29 billion in 2015 — a staggering $3 million an hour or about $79 million a day — to rebuild, maintain, and expand America’s rail network. Much of the money will go toward new equipment and locomotives, new track and bridges, higher tunnels, and newer technology.

Freight railroads are expected to hire 15,000 more people this year, continuing its upward hiring trend for an industry that employs 180,000 people, the association said.

While considering safety reforms, Congress must ensure that “any changes to public policy still allow railroads to continue private infrastructure spending and other network investments needed to meet customer demand,​” the industry group said.

 

 

US taxpayers subsidizing world’s biggest fossil fuel companies

Repost from The Guardian

US taxpayers subsidising world’s biggest fossil fuel companies

Shell, ExxonMobil and Marathon Petroleum got subsidises granted by politicians who received significant campaign contributions from the fossil fuel industry, Guardian investigation reveals
By Damian Carrington and Harry Davies, 12 May 2015 07.00 EDT
Marathon Petroleum refinery in Canton, Ohio, got a job subsidy scheme worth $78m when it started in 2011. Photograph: PR

The world’s biggest and most profitable fossil fuel companies are receiving huge and rising subsidies from US taxpayers, a practice slammed as absurd by a presidential candidate given the threat of climate change.

A Guardian investigation of three specific projects, run by Shell, ExxonMobil and Marathon Petroleum, has revealed that the subsidises were all granted by politicians who received significant campaign contributions from the fossil fuel industry.

The Guardian has found that:

  • A proposed Shell petrochemical refinery in Pennsylvania is in line for $1.6bn (£1bn) in state subsidy, according to a deal struck in 2012 when the company made an annual profit of $26.8bn.
  • ExxonMobil’s upgrades to its Baton Rouge refinery in Louisiana are benefitting from $119m of state subsidy, with the support starting in 2011, when the company made a $41bn profit.
  • A jobs subsidy scheme worth $78m to Marathon Petroleum in Ohio began in 2011, when the company made $2.4bn in profit.

“At a time when scientists tell us we need to reduce carbon pollution to prevent catastrophic climate change, it is absurd to provide massive taxpayer subsidies that pad fossil-fuel companies’ already enormous profits,” said senator Bernie Sanders, who announced on 30 April he is running for president.

Sanders, with representative Keith Ellison, recently proposed an End Polluter Welfare Act, which they say would cut $135bn of US subsidies for fossil fuel companies over the next decade. “Between 2010 and 2014, the oil, coal, gas, utility, and natural resource extraction industries spent $1.8bn on lobbying, much of it in defence of these giveaways,” according to Sanders and Ellison.

In April, the president of the World Bank called for the subsidies to be scrapped immediately as poorer nations were feeling “the boot of climate change on their neck”. Globally in 2013, the most recent figures available,the coal, oil and gas industries benefited from subsidies of $550bn, four times those given to renewable energy.

“Subsidies to fossil fuel companies are completely inappropriate in this day and age,” said Stephen Kretzmann, executive director of Oil Change International, an NGO that analyses the costs of fossil fuels. OCI found in 2014 that US taxpayers were subsidising fossil fuel exploration and production alone by $21bn a year. In 2009, President Barack Obama called on the G20 to eliminate fossil fuel subsidies but since then US federal subsidies have risen by 45%.

“Climate science is clear that the vast majority of existing reserves will have to stay in the ground,” Kretzmann said. “Yet our government spends many tens of billions of our tax dollars – every year – making it more profitable for the fossil fuel industry to produce more.”

Tax credits, defined as a subsidy by the World Trade Organisation, are a key route of support for the fossil fuel industry. Using the subsidy tracker tool created by the Good Jobs First group, the Guardian examined some of the biggest subsidies for specific projects.

Shell’s proposed $4bn plant in Pennsylvania is set to benefit from tax credits of $66m a year for 25 years. Shell has bought the site and has 10 supply contracts in place lasting up to 20 years, including from fracking companies extracting shale gas in the Marcellus shale field. The deal was struck by the then Republican governor, Tom Corbett, who received over $1m in campaign donations from the oil and gas industry. According to Guardian analysis of data compiled by Common Cause Pennsylvania, Shell have spent $1.2m on lobbying in Pennsylvania since 2011.

A Shell spokesman said: “Shell supports and endorses incentive programmes provided by state and local authorities that improve the business climate for capital investment, economic expansion and job growth. Shell would not have access to these incentive programmes without the support and approval from the representative state and local jurisdictions.”

ExxonMobil’s Baton Rouge refinery is the second-largest in the US. Since 2011, it has been benefitting from exemptions from industrial taxes, worth $118.9m over 10 years, according to the Good Jobs First database. The Republican governor of Louisiana, Bobby Jindal has expressed his pride in attracting investment from ExxonMobil. In state election campaigns between 2003 and 2013, he received 231 contributions from oil and gas companies and executives totalling $1,019,777, according to a list compiled by environmental groups.

A spokesman for ExxonMobil said: “ExxonMobil will not respond to Guardian inquiries because of its lack of objectivity on climate change reporting demonstrated by its campaign against companies that provide energy necessary for modern life, including newspapers.”

The Guardian is running a campaign asking the world’s biggest health charities, the Bill and Melinda Gates Foundation and the Wellcome Trust, to sell their fossil fuel investments on the basis that it is misguided to invest in companies dedicated to finding more oil, gas and coal when current reserves are already several times greater than can be safely burned. Many philanthropic organisations have already divested from fossil fuels, including the Rockefeller Brothers Fund whose wealth derives from Standard Oil, which went on to become ExxonMobil.

In Ohio, Marathon Petroleum is benefitting from a 15-year tax credit for retaining 1,650 jobs and a 10-year tax credit for creating 100 new jobs. The subsidy is worth $78.5m, according to the Good Jobs First database. “I think Marathon always wanted to be here,” Republican governor John Kasich said in 2011. “All we’re doing is helping them.” In 2011, Kasich was named as the top recipient of oil and gas donations in Ohio, having received $213, 519. The same year Kasich appointed Marathon Petroleum’s CEO to the board of Jobs Ohio, a semi-private group “in charge of the economic growth in the state of Ohio”.

A spokesman for Marathon Petroleum said: “The tax credit recognises the enormous contribution we make to the Ohio economy through the taxes we pay and the well-paying jobs we maintain. We have more than doubled the 100 new jobs we committed to create.” The spokesman said the company paid billions of dollars in income and other taxes every year across the US.

“Big oil, gas, and coal have huge influence on politicians and governments and they get that influence the old fashioned way – they buy it,” said Kretzmann. “Through campaign finance, lobbying, advertising and superpac spending, the industry has many ways to influence candidates and government officials seeking re-election.”

He said fossil fuel subsidies were endemic in the US: “Every single well, pipeline, refinery, coal and gas plant in the country is heavily subsidised. Big Fossil’s lobbyists have done their jobs well for the last century.”

Ben Schreiber, at Friends of the Earth US, said. “There is a vibrant discussion about the best way to keep fossil fuels in the ground – from carbon taxation to divestment – but ending state and federal corporate welfare for polluters is one of the easiest places to start.”

Schreiber also defended subsidies for renewable energy: “Fossil fuels are a mature technology while renewable energy is nascent and still developing. It makes sense to subsidise technologies that are going to help solve climate change, but not to do the same for those that are causing the problem.”

Bakken-bearing pipeline meets stiff opposition in the Land of 10,000 Lakes

Repost from E&E Publishing

Bakken-bearing pipeline meets stiff opposition in the Land of 10,000 Lakes

Daniel Cusick, EnergyWire, April 10, 2015

MINNEAPOLIS — A Canadian company proposes a multibillion-dollar oil pipeline through some of the Midwest’s prized lakes and wetlands, igniting a firestorm among environmentalists, tribes and anti-fossil fuel activists who say the proposal is built on hollow promises of economic development and dubious claims of environmental protection.

Sound familiar? It should. But the pipeline isn’t Keystone XL, and its developer is not TransCanada Corp., purveyor of the most polarizing energy project since the Yucca Mountain Nuclear Waste Repository.

It is called Sandpiper, and its developer is Enbridge Corp., another Calgary, Alberta-based conglomerate whose extensive oil and gas pipeline network plunges deep into the U.S. interior.

The $2.6 billion Sandpiper project, which would move 225,000 barrels of crude per day roughly 610 miles from the Bakken oil fields of North Dakota to an Enbridge hub in Superior, Wis., has been approved by North Dakota regulators. But it remains under administrative review in Minnesota, where developers are seeking a certificate of need to ship the oil and a route permit to build the pipeline across 300 miles of the state’s Lakes Belt.

An administrative law judge in St. Paul next week is expected to issue an advisory opinion that the Minnesota Public Utilities Commission will use to resolve some thorny questions around Sandpiper, including whether the line is necessary and what route it should follow to move Bakken crude across Minnesota to Wisconsin, where it would flow to other Enbridge lines serving refineries in Michigan, Illinois and Ohio.

Marathon’s president and CEO, Gary Heminger, has said the Sandpiper investment will give Marathon a 27 percent stake in Enbridge’s North Dakota pipeline system once the line is completed and provide “additional access to growing crude oil production from the Bakken Shale play and Canada, and direct participation in the transportation of these crudes into our markets.”

The opening of a new corridor through Minnesota will also help Enbridge manage aging infrastructure along its existing pipeline route through the Upper Great Lakes, known as the Lakehead System. Currently, six existing pipelines, some built as early as the 1950s, follow the Lakehead System route from a key Enbridge oil terminal in Clearbrook, in northwest Minnesota, to the cities of Bemidji and Grand Rapids before dipping south to Duluth and Superior.

Clearbrook is also the primary U.S. hub on Enbridge’s system for delivering Canadian tar sands oil from Alberta into the United States, and Enbridge has invested heavily in recent years to upgrade those lines, including adding new pump stations in Minnesota that will push up to 800,000 barrels per day of heavy Canadian crude to U.S. refineries.

Moreover, if Sandpiper is approved, Enbridge has said it will pursue another set of state permits to relocate one of its key Lakehead pipelines, known as Line 3, that was built in 1968 and is in need of retirement. Rather than rebuild Line 3 in its existing corridor, Enbridge has said it would prefer to relocate the line along the Sandpiper route at a cost of roughly $2.3 billion.

But environmental opposition, combined with lengthy regulatory proceedings, sagging oil prices and a troubling history of spills, including an 840,000-gallon contamination of Michigan’s Kalamazoo River in 2010, have created considerable hurdles for Enbridge as it tries to push through one of its most ambitious U.S. pipeline expansions in recent memory.

The stakes — for Enbridge, for its U.S. customers, and for residents and tribes in North Dakota and Minnesota — are high. If the Sandpiper line is built, the company says, millions of barrels of Bakken crude will be moved more safely and cheaply across northern Minnesota, while at the same time alleviating rail corridor congestion and reducing the risk of rail accidents like the Dec. 30, 2013, fiery collision between a derailed grain train and 108-car oil train near Casselton, N.D., resulting in 400,000 gallons of spilled crude and the evacuation of 1,400 residents.

Dealing with the ‘Keystone effect’

Currently, more than two-thirds of the North Dakota’s oil exports are shipped by rail using tanker cars, according to federal estimates, many of which lack the kind of safety features that have been proposed by the U.S. Department of Transportation and could become law later this year. More recent rail accidents, including oil train derailments in West Virginia and Illinois, have further pressured the oil and gas industry, railroads and government officials to find alternatives to shipping oil across long distances by rail and truck.

But if shipping crude by rail has come under tough scrutiny from the public and regulators, pipelines have fared little better, as evidenced by the industry’s track record of spills — estimated at 1,400 “significant incidents” since 1986 — and the deep political fissure over Keystone XL, which after years of languishing under a State Department review succumbed to a presidential veto in February after Republicans in Congress sought to approve the line legislatively.

The “Keystone effect,” as some have called it, goes beyond concerns about pipeline safety and routing to incorporate a broad suite of environmental issues, among them fossil fuel dependency and oil consumption’s contribution to greenhouse gases that drive climate change.

Al Monaco, Enbridge’s president and CEO, addressed some of those challenges in a speech to business executives in Minneapolis late last month.

“Solving infrastructure problems at its base is not rocket science,” he told the Minnesota-Canada Business Council, stressing the advanced technologies and materials deployed by industry to site new oil pipelines, inspect existing lines, and detect problems early and respond quickly.

The bigger challenge, Monaco said, stems from organized opposition to traditional energy resources and even some renewable resources such as wind turbines, and “the elevation of regional energy projects to a national policy debate.”

“This isn’t just short-term noise,” Monaco said. “Today, our regulators, our political leaders, our employees and the public, they expect more of energy companies. They want to know what we’re doing to continually improve, to get better.”

Working around the ‘Lakes Belt’

For critics like Kathryn Hoffman, an attorney with the Minnesota Center for Environmental Advocacy, “getting better” means several things, including acknowledging mistakes and correcting operational problems that cast doubt on Enbridge’s safety track record, including the record 2010 spill in Michigan, where cleanup remains a work in progress after $1 billion spent.

Hoffman and her client, the nonprofit group Friends of the Headwaters, also want Enbridge to explore alternatives to its preferred Sandpiper route, which crosses northern Minnesota’s “Lakes Belt,” a region dense in lakes, streams, wetlands and forest. To date, the company has refused to look at alternatives, saying its chosen Sandpiper route offers the best conditions, both environmentally and economically, for the line to make its way from an existing oil terminal in Clearbrook to its terminus at Duluth-Superior.

Hoffman, who has petitioned the Minnesota Court of Appeals to force a more detailed environmental review of Sandpiper than what is required by the PUC, said her client is not seeking to simply block the Sandpiper line from being constructed. Rather, she wants Enbridge to more fully examine the preferred route’s impacts to natural areas and weigh those findings against alternative routes that run along more developed corridors.

“Our position is that the proposed route is probably one of the worst locations in the state of Minnesota to run a pipeline,” she said.

Similar concerns were raised by Minnesota’s two environmental agencies — the Department of Natural Resources and the Minnesota Pollution Control Agency — prompting the PUC last September to take an unprecedented step of asking for more information on alternative routes.

The Minnesota Department of Commerce provided a detailed report on six alternatives last December, but Enbridge maintains that none is viable because all are longer, are more expensive to build and do not pass through its terminal at Clearbrook, a critical element of the project.

“The fundamentals behind the project call for leveraging the existing infrastructure that’s already in place,” Paul Eberth, Enbridge’s Wisconsin-based Sandpiper project manager, said in a telephone interview. “By going to Clearbrook and then to Superior, we can make connections to customers without having to build a new line all the way down to the southern part of the state,” as most of the alternatives propose.

‘Oil companies are asking too much of our state’

But opponents of Sandpiper in its current configuration say southern Minnesota, where farming and urbanization have already altered much of the natural landscape, is exactly where new oil pipelines belong.

Among those pushing for a re-route are members of the state’s 40,000-person Ojibwe tribe, also known as the Chippewa or Anishinaabe, whose leaders maintain that the Sandpiper project threatens to foul northern Minnesota’s pristine waters with oil and disrupt traditional activities such as wild rice harvesting that are central to Native American life in the Great Lakes region.

Frank Bibeau, an attorney and member of the White Earth Nation of Ojibwe, whose reservation extends across three northern Minnesota counties, said in an interview that Enbridge has failed to examine such impacts in its Sandpiper routing decision. Moreover, the company continues to maintain that the pipeline does not physically cross tribal lands and therefore does not violate the tribe’s rights.

“We beg to differ with them on that point, and strongly,” said Bibeau, who maintains that the tribe’s treaty rights extend beyond reservation boundaries when dealing with traditional activities like wild rice harvesting.

Honor the Earth, a national activist group led by White Earth member Winona LaDuke, the former Green Party vice presidential candidate, has also pressed state officials, including Gov. Mark Dayton (D), to force a reconsideration of Sandpiper’s current route and issue a moratorium on any new pipeline development in the state’s lakes region.

“Oil companies are asking too much of our state,” LaDuke wrote in a letter to the governor. “While we remain a fossil fuel economy at present, sending one new pipeline … across the beautiful North Country is wrong and is not a good move for Minnesota.”

The group has taken its message public, too, with colorful roadside billboards and horseback rallies in hamlets like Backus, Minn., where the pipeline is proposed to cross an arterial highway just south of the Corner Store Restaurant & Gun Shop, a local gathering spot.

On a recent afternoon, Dave Sheley, the Corner Store’s owner and proprietor for 18 years, said the Sandpiper project has been a regular topic of conversation, both pro and con, among patrons of his cafe.

He described Backus and surrounding Pine County as “a poor community in general with a rich sub-community of cabin owners,” many of whom trek north on weekends from the Twin Cities to fish, swim, boat, bicycle or hunt in the region that otherwise has little happening economically.

While some are encouraged by Enbridge’s promise of 1,500 construction jobs and an estimated $25 million in new annual tax revenue, others say such benefits are countered by the intrusion of a major oil pipeline and the long-term risk of an accident or spill.

Sheley said he has seen a smattering of new business from surveyors and consultants working along the corridor route, which parallels an electricity transmission line. But he also knows that any surge in business during the line’s construction would be temporary, and the greatest economic benefit will go to landowners who have cut deals with Enbridge to route the pipeline across their property.

“I don’t own any land where they want to build, so I don’t have skin in the game,” he said. “For the most part, I’d say those people tend to be the most positive about it. But I can also see why the cabin owners and naturalist groups are concerned. A spill would be a big bummer if it happened.”