Increasing Canadian Opposition To Big Oil Pipelines

Repost from HuffPost Alberta

What’s Behind The Rising Opposition To Canada’s Big Oil Pipelines

CBC | Posted: 04/29/2014

High-stakes oil pipeline projects have taken a public lashing lately, whether in a plebiscite in British Columbia, more protests in Washington, D.C., or from a former U.S. president and several Nobel laureates coming out strongly against billion-dollar plans to move the diluted  bitumen from Alberta’s oil sands to international markets.

The anti-pipeline pressure has been mounting for a while, but observers say that the ramped-up opposition to the Northern Gateway and Keystone XL proposals is no coincidence.

Rather, the turmoil is a result of a confluence of issues ranging from deep-seated environmentalism and concern about climate change to the aggressive tactics of energy companies and governments that want to see the pipes in the ground sooner than later.

Toss in some politics — midterm elections in the U.S. this fall, and anticipation of the federal decision on Enbridge’s $5.5-billion Northern Gateway project within a few weeks — and conditions have become ripe for ever more public push-back.

“I certainly don’t see any chance of the opposition receding,” says Michael Byers, a political science professor at the University of British Columbia who holds a Canada Research Chair in global politics and international law.

On the West Coast, in particular, he says, the roots of protest run deep.

In the psyche

“People in the rest of Canada need to understand the environmental movement was born in British Columbia, and it has a deep history here and is very wide-reaching,” says Byers.

“It’s almost part of the collective psyche here on the West Coast and that’s something that Enbridge clearly did not understand, and that the Harper government at least for its first four or five years did not understand.

“And when you add that to the unextinguished aboriginal rights, and the lack of appropriate consultation that took place, you have almost a perfect storm for opposition to pipelines.”

In Kitimat, B.C., the coastal community that would serve as the endpoint of Northern Gateway, and the place where supertankers would fill up with Alberta bitumen, residents recently voted “No” to the project.

The plebiscite isn’t binding on anyone, but it sent a signal, and left Enbridge with another reminder it might have done things differently in the early days of the project.

“Something we’ve certainly learned is that we definitely needed an earlier, stronger presence on the ground,” says John Carruthers, president of Northern Gateway Pipelines.

“We have had an office in Kitimat since 2008, but I think the key is you have to be there early and you have to be there often to work with people and build trust and provide information about what we are doing to address the concerns.”

Changing the route

Carruthers says the company has won support in instances where it has sat down, talked with people and come up with solutions for particular issues such as river crossings.

“We made a number of changes to the route based on public input.”

Responding to concerns from aboriginal groups, Enbridge revised 24 crossings, including for the Pembina, Athabasca, Smoky and Murray rivers, according to the joint panel review for the project.

Carruthers says that between 2009 and 2013, there were “tens of thousands of exchanges with stakeholders through face-to-face meetings, coffee chats, presentations, public forums, technical meetings, community meetings, Community Advisory Boards, blogs, social media sites, receptions, community investment events, emails, telephone calls, letters, advertisements and website postings.”

Enbridge’s approach to working with communities is an “evolving process,”  he says. “It doesn’t stop with the plebiscite. It doesn’t stop with the joint review panel recommendation, or even the decision by the federal government.

“It’s ongoing, so there will be continued consultation, discussions, all the way through the process.”

However, Byers says there was a lack of serious consultation by Enbridge with the coastal First Nations in the early going, and that “is a mistake that both Enbridge and the Harper government must rue to this day. Essentially that failure to take aboriginal rights seriously in those early years I think created a situation today where the project cannot proceed.”

He sees “more sensitivity” being shown around discussions of Kinder Morgan’s Trans Mountain project to expand capacity of an existing pipeline running from Alberta through the Fraser Valley to Burnaby, B.C.

“Kinder Morgan has made a significant public outreach effort. The Harper government has not weighed in with the same degree of passion and divisiveness that it did on Northern Gateway.”

Another Exxon Valdez?

As Byers sees it, the big issue of climate change figures prominently in this debate, particularly for environmentalists. “But for the person on the street, the concern is about a repeat of the Exxon Valdez.”

“That oil spell happened just north of Kitimat on the southwestern coast of Alaska and people here look at the fact that oil continues to be found along the Alaskan coastline from that spill more than two decades later.”

For his part, Byers sees some distinction between the kind of opposition that these pipeline projects in B.C. have garnered with that exerted on TransCanada’s $7.6-billion US Keystone XL project, which would pipe Alberta bitumen to the Texan Gulf Coast. “With Keystone XL, the debate is mostly about climate.”

A presidential decision on Keystone XL has been delayed again, and won’t likely come until after the Nov. 4 midterm elections, which some are seeing as a win for its opponents.

For environmental groups that want fossil fuel production to stop, “slowing down crude infrastructure is actually one of the politically easiest targets,” says James Coleman, an assistant professor in the University of Calgary’s faculty of law and Haskayne School of Business.

Coleman sees a “dramatic” increase in the push-back against pipelines, something he attributes to several factors, including increased pressure for climate regulation, along with a desire for increased to “takeaway capacity” from Alberta because of the increased production there.

Times change

“People sometimes forget Keystone XL is just the second part. There was an original Keystone pipeline that was approved in the U.S. in 2008 and was defended by President [Barack] Obama’s administration,” says Coleman.

“But the dramatic thing is that pipeline was approved with no consideration at all of the climate effects of increased oil production.”

Now, a few years later, he notes, there’s a section of the U.S. environmental impact statement on Keystone XL devoted to the greenhouse gas output of increased oilsands production, and President Barack Obama says the key factor determining the project’s fate is whether it’s going to increase greenhouse gas emissions because of increased oilsands production.

“It’s all about climate change. It’s not the pipe itself,” says Richard Dixon, executive director of  the centre for applied business research in energy and the environment at the University of Alberta in Edmonton.

“The issue is what’s going through the pipe,” he says, and how that has become a symbol of dealing with climate change.

“It’s not about the amount of emissions. I mean, we’re one-10th of one per cent of world emissions. It’s negligible.”

Finding the weak link

Dixon says the opposition to pipelines has become more organized, and that more environmental groups are involved. Environmentalists have also identified the “weak link” energy companies have in their efforts to be sustainable: access to markets.

“So they’ve focused on that and as they’ve gained more and more strength, they’re able to then focus on the issue of climate change.”

That was the focus of a letter signed by former U.S. president Jimmy Carter and a group of Nobel laureates who urged Obama to reject Keystone XL.

The letter sent earlier this month says the president’s decision will either signal a “dangerous commitment” to the status quo, or “bold leadership” that will inspire millions counting on him to do the right thing for the climate.

Dixon argues, though, that “if the goal of the environmentalists is to get us off oil, in fact, it’s doing the opposite,” as the public opposition is prompting energy companies to improve pipeline technology.

“It will make sure that our pipelines are safe so that you can’t really complain about them. So that’s the irony of it — that it will improve pipeline technology. Quite an irony actually.”

Latest derailment: Bainville, Montana

Repost from The Missoulian

Amtrak’s Empire Builder partially derails in NE Montana; 1 passenger injured

April 29, 2014

BAINVILLE — An Amtrak train carrying 117 passengers has resumed its journey after it partially derailed in northeastern Montana, causing minor injuries to one passenger.

Amtrak spokesman Marc Magliari says two cars on the 13-car Empire Builder slipped off the tracks at a switch Monday afternoon near Bainville.

The passenger train was headed west from Chicago to Portland and Seattle. Magliari says the injured passenger was treated at the scene, then taken to a nearby hospital and later released.

The train remained upright and was moving again Monday evening after the damaged cars were uncoupled.

A spokesman for BNSF Railway Co., which maintains the tracks, says seven trains have been delayed while repairs are made. BNSF spokesman Matt Jones says the repairs are expected to be completed overnight.

Debate: thickness of the steel walls of tank cars

Repost from International Business Times
[Editor: Important report, please read.  – RS]

Oil Industry And Railroads Shipping Shale Boom Riches Are Separated By Just An Eighth Of An Inch

By Meagan Clark  |  April 29 2014
Coal railcars Wyoming by Shutterstock Coal railcars in Wyoming  |  Shutterstock.com

Energy companies and the firms that make the rail cars carrying the flow of crude oil and other products from America’s shale boom are separated by a mere 1/8 of an inch.

That’s the added thickness in the walls of the steel rail cars that the manufacturers say is needed to achieve safe standards. The oil and gas industry argues that the current 7/16 of an inch thickness is adequate.

The debate is important because the U.S. is currently hammering out guidelines that will eventually set the new national standards for transporting hazardous cargo by rail.

The standards for tank cars have made national headlines after several fiery derailments of trains carrying crude in the past year, some near homes.

After several congressional hearings,  the Department of Transportation (DOT) is expected to propose a new set of rules this week for White House review, including “options for enhancing tank car standards,” Anthony Foxx, transportation secretary, blogged for DOT on Thursday. Foxx was visiting Casselton, North Dakota, the site of an explosive train derailment and 400,000-gallon crude spill late last year that managed to not injure anyone.

The White House’s Office of Information and Regulatory Affairs (OIRA) will review the DOT’s proposal. The turnaround usually takes about three months, but could take longer since the regulation in dispute is controversial and costly. The public will have a chance to submit comments before the final rules are set.

“We look forward to working collaboratively with OIRA on the Administration’s proposal and initiating the formal comment process as soon as possible,” Foxx said in the blog post.

The current regulation DOT-111 has been the federal standard for oil-by-rail shipping for more than a decade, and nearly all parties involved in the trade agree it needs updating.  Some officials claim the crude from the Bakken Shale formation in Wyoming and North Dakota is more volatile and dangerous than other domestic crude oil.

Rail operators, oil producers and tank car manufacturers have argued without resolve for months on what the best dimensions would be to transport crude.

The American Petroleum Institute claims that the current a 7/16th inch-thick steel frame is adequate for crude shipments, while the Association of American Railroads, the rail industry’s lead representative, proposes a thicker 9/16th inch frame.

The thicker tank not only would cost the companies more to buy; it also holds less crude, which adds to shipping costs.

A 7/16th inch model called the CPC-1232 has been a voluntary industry standard since 2011, and factories have sold many of the tank cars in recent years to transport crude. AAR introduced the standard after several DOT-111 derailments, but now recommends phasing out or retrofitting the older models for a minimum 9/16th inch-thick tank.

AAR estimates its proposal would phase out or retrofit about 92,000 cars built since 2011 that meet the current standard. Retrofitting the whole existing fleet of current-standard cars carrying flammable liquids would be more than $3 billion, according to the rail group.

Once the rules are final, rail companies will have to decide whether to upgrade their existing fleet or wait for tanks to be built to the new standard.

North America’s oil boom has increased rail transport of crude from 9,500 carloads a year in 2008 to 400,000 carloads last year, according to the U.S. Energy Information Association. The more oil riding the rails, the more likely spills and accidents are to occur. Only 0.0023 percent of hazardous material carloads spill or crash, according to the Association of American Railroads and the American Shortline and Regional Railroad Association. But that small percentage of accidents gets a lot of attention.

Cozy relationship between North Dakota’s oil industry and a chief federal inspector

Repost from In These Times

Official Tipped Off Hess Rail Yard About Oil-Carrier Inspection

Emails cast doubt on the integrity of a federal crackdown on unsafe shipping practices.
BY Cole Stangler  /  Web Only / Features » April 29, 2014
Oil containers wait at a train yard near Williston, North Dakota before transporting crude oil across North America. Shippers and carriers often mislabel their cargo, which leads to improper handling and potentially dangerous accidents. (Andrew Burton / Getty Images)

Emails obtained by In These Times show a cozy relationship between North Dakota’s oil industry and a chief federal inspector charged with monitoring the safety of shipping crude oil by rail. The emails cast serious doubts on the integrity of the federal government’s supposed crackdown on the industry’s shoddy shipping practices—a subject of growing concern in the midst of a largely unregulated, and in some cases, deadly, transport boom.

Last August, the Pipeline and Hazardous Materials Safety Agency (PHMSA) and Federal Railroad Administration announced they were rolling out the “Bakken Blitz”—a crackdown on shippers and carriers that mislabel their cargo. Federal hazmat regulations require trains carrying oil to properly classify and identify their shipments with placards. These practices are supposed to ensure that oil is safely packaged before being shipped. They’re also aimed at informing railroad personnel and, in the event of a mishap, any emergency responders. Regulators introduced the Blitz just one month after the Lac Mégantic disaster, when a runaway freight train carrying oil exploded in the small Quebec town, killing 47 people. In that case, Canadian safety investigators found American shippers in North Dakota’s Bakken region had understated the volatility of the oil that ignited and destroyed much of Lac Mégantic’s downtown area. Improper classification caused the shipment to be transported in an improper package. Emergency responders, too, were caught by surprise at how quickly the fire spread and how long it burned.

As part of the Department of Transportation’s new enforcement effort, PHMSA officials show up unannounced at rail facilities to conduct classification inspections—at least that’s what an agency spokesperson told In These Times at first. An email obtained through a Freedom of Information Act request strongly suggests that Kipton Wills, Central Region Director of PHMSA’s Office of Hazardous Materials Enforcement, pre-arranged at least one of his agency’s visits to a Hess Corp. rail yard in Tioga, North Dakota, last October.

“We will accommodate your request to inspect trucks at the Tioga Rail Terminal,” Jody Schroeder, the rail terminal supervisor, wrote in an email to Wills dated October 3, 2013—five days before the inspection took place. “At your convenience please let me know your schedule for this event.”

Schroeder later confirmed that Wills reached out to him about the visit.

Earlier this month, PHMSA spokesperson Gordon Delcambre told In These Times that such inspections are impromptu. “They’re unannounced,” he said. “[Inspectors] figure out who they’re going to visit ahead of time, make plans, go to the area and then start knocking on doors.”

Indeed, this is normal procedure. The agency’s handbook notes “the policy of the PHMSA hazardous materials enforcement program is to conduct unannounced inspections.” Exceptions can include cases of “apparent imminent danger to enable the company to correct the danger,” instances where special preparations, records and equipment are necessary, and cases where “giving advance notice would enhance the probability of an effective and thorough inspection.”

Delcambre said he would follow up with PHMSA’s Central Region director Wills to confirm the crude-by-rail inspections were unannounced. “Our field hazmat inspector procedures have not changed with our Bakken region effort,” Delcambre wrote later that day in an email. “PHMSA inspectors still do ‘unannounced’ visits to hazmat shippers and offerors and have been taking crude oil samples as needed at the facilities they call on.”

But when asked to respond for this story, Delcambre qualified that answer.

“Because we were conducting inspections on Hess Property of other entities (highway carriers) and in order to do that safely, in some cases such as this one, prior open coordination for facility orientation and confirmation of appropriate personal protective equipment was needed,” he wrote in an email.

The inspection of the Hess facility, which also services other oil and gas companies like Marathon, did turn up “probable violations.” Out of 18 oil samples that PHMSA collected and tested at the Tioga plant, the labeling on 10 of them understated how flammable the cargo was. In each of those cases, Hess and Marathon misclassified Packing Group I oil as belonging to Packing Group II. Packing Group I is the highest risk designation, reserved for crude oil with an initial boiling point lower than 95 degrees Fahrenheit. It’s the most explosive kind of crude.

Months after the inspection took place, on February 3 of this year, PHMSA slapped Hess with a proposed $51,350 fine and Marathon Oil with a proposed $30,000 fine for the improper classification. Whiting Oil & Gas was hit with a proposed $12,000 fine for misclassifying Packing Group II oil as Packing Group III.

But Martin MacKerel, an environmental activist with the Bay Area-based Sunflower Alliance, says that these fines could have been much higher. “It’s clear that announcing the inspections gave the oil company the opportunity to reduce their fines,” says MacKerel. “These kinds of inspections need to be unannounced to have any real value.”

As he announced the slew of fines, the only federal enforcement thus far to stem from the “Bakken Blitz,” Transportation Secretary Anthony Foxx sounded a stern warning:

The fines we are proposing today should send a message to everyone involved in the shipment of crude oil. You must test and classify this material properly if you want to use our transportation system to ship it.

But emails from the top PHMSA official on the ground to Hess strike a much friendlier tone.

On February 4, the day that the fines were publicly announced, Schroeder reached out to PHMSA’s Wills asking if he knew anything about the violations that the inspector’s higher-ups had just announced. Wills replied to Schroeder that he had just learned about the fines, but said that he hoped PHMSA and industry leaders could “get it all on one page working together as a coordinated effort not an enforcement effort.”

Avoiding “enforcement” would appear to contradict the point of the Bakken Blitz, not to mention the very mission of PHSMA—whose job is to enforce existing regulations. After all, federal hazmat regulations are nothing new. The Department of Transportation’s crackdown is only supposed to make sure that North Dakota oil shippers are following the same practices that other truck drivers and railroad operators across the country have to comply with every day.

The emails may indicate a disconnect between federal priorities and those of local regulators. Just before the fines were issued, safety concerns over crude-by-rail shipments had again taken the national stage. On December 30, 2013, a derailed grain train collided with an oil train in Casselton, North Dakota, sending 400,000 gallons of Bakken crude up in flames, and forcing residents to evacuate. Days after that, PHMSA issued a safety alert warning, noting “the type of crude oil being transported from the Bakken region may be more flammable than traditional heavy crude oil.” And later that month, Secretary Foxx issued a “Call to Action” and met with railroad executives and major players in the oil and gas industry like the American Petroleum Institute.

Referencing this meeting in his email to rail supervisor Schroeder, Wills appeared to suggest the impetus for the fines came from agency superiors in Washington “Once the results came back and the Secretary of Transportation met with the energy companies and railroad CEO’s [sic], it left the control of field staff and became a larger issue,” he wrote. “In my mind, the solution is getting the bosses from both sides around the table and discussing feasible testing schedules, etc. I will be in North Dakota next week and I am hoping to have a lot more information from my own agency by then on what the [Notice of Proposed Violation] means and what we can do as far as working in partnership.”

Those bosses eventually did sit around the table. PHMSA spokesperson Gordon Delcambre tells In These Times that officials from the agency’s Hazmat Safety Office met with representatives from the North Dakota Petroleum Council on April 1 to discuss “joint interest in the safe transportation of crude oil.” The Council does not publicly disclose all of its members, but the board of directors includes Hess, Marathon, Whiting and other major energy companies such as Enbridge Pipelines and ConocoPhillips.

There have been no fines announced since February, although Delcambre says that Bakken Blitz is still ongoing.

Safety advocates say the emails illustrate a business-friendly regulatory approach that runs counter to the core mission of the agency.

“It’s telling that PHMSA has no interest in enforcement,” says Matt Krogh, Tar Sands Free West Coast campaign director at ForestEthics, an environmental group based in the Pacific Northwest. “Their goal appears to be to work together with industrial violators, not to provide the enforcement mechanism provided for in the law, and requested by higher ups in the Department of Transportation. Companies that routinely misclassify hazardous materials destined to transit America’s main streets and urban centers should be prosecuted, not coddled.”

It’s a familiar critique of what’s been referred to as a “sleepy, industry-dominated organization.” PHMSA routinely comes under fire for being too friendly with the energy industry that it regulates and for taking too long to issue much-needed rules. The small-budget agency also has oversight of the nation’s interstate oil and gas pipelines. Its 151 inspectors cover more than 2 million miles of pipeline across the country. And the unexpected shale-drilling boom has left the agency in charge of another daunting task—monitoring crude-by-rail shipments. Grappling with a dearth of pipelines, North Dakota oil producers have found rail to be the easiest, cheapest means of getting their product to market. Railroads carried more than 400,000 carloads of crude oil last year, according to the Association of American Railroads—compared to only 9,500 in 2008.

As shipments have increased, so, too, have accidents. The industry’s safety practices—from the tank-cars and routes it uses to the way it tests and classifies its shipments—garner increasing national and international attention. Last week in Washington, the National Transportation Safety Board convened a “Rail Safety Forum,” bringing together different government agencies and industry officials to discuss growing challenges. And in an unprecedented move, earlier this month, a United Nations panel on hazardous materials agreed to weigh in to the matter. The panel reportedly accepted a request from American and Canadian authorities to examine whether existing shipping rules in North America properly account for how dangerous and volatile Bakken-drilled crude actually is.

Washington may well be making moves to beef up safety practices and enforcement efforts. However, the emails obtained by In These Times raise questions about how successfully that message is being transmitted to inspectors on the ground.

—–


Cole Stangler
is an In These Times staff writer and Schumann Fellow based in Washington D.C., covering labor, trade, foreign policy and environmental issues. His reporting has appeared in The Huffington Post and The American Prospect, and has been cited in The New York Times.