Tag Archives: Sierra Club

How the State Department secretly approved a major tar sands expansion

Repost from DeSmogBlog
[Editor:  Sign the CREDO petition opposing the Enbridge expansion scheme.  – RS]

Emails: How State Department Secretly Approved Expanding Piece of Enbridge’s “Keystone XL Clone”

By Steve Horn, April 20, 2015 – 03:58

DeSmogBlog has obtained dozens of emails that lend an inside view of how the U.S. State Department secretly handed Enbridge a permit to expand the capacity of its U.S.-Canada border-crossing Alberta Clipper pipeline, which carries tar sands diluted bitumen (“dilbit”) from Alberta to midwest markets.

The State Department submitted the emails into the record in the ongoing case filed against the Department by the Sierra Club and other environmental groups in the U.S. District Court for the District of Minnesota. Collectively, the emails show that upper-level State Department officials hastened the review process on behalf of Enbridge for its proposed Alberta Clipper expansion plan, now rebranded Line 67, and did not inform the public about it until it published its final approval decision in the Federal Register in August 2014.

According to a March 17, 2014 memo initially marked “confidential,” Enbridge’s legal counsel at Steptoe & Johnson, David Coburn, began regular communications with the State Department on what the environmental groups have dubbed an “illegal scheme” beginning in at least January 2014.

Enbridge State Department Emails
Enbridge State Department Emails | Image Credit: U.S. District Court for the District of Minnesota

Environmental groups have coined the approval process an “illegal scheme” because the State Department allowed Enbridge to usurp the conventional presidential permit process for cross-border pipelines, as well as the standard National Environmental Policy Act (NEPA) process, which allows for public comments and public hearings of the sort seen for TransCanada’s Keystone XL pipeline.

Further, the scheme is a complex one involving Enbridge’s choice to add pressure pump stations on both sides of the border to two pipelines, Enbridge Line 3 and Enbridge Line 67, to avoid fitting under the legal umbrella of a “cross-border” pipeline.

Hastening the approval process — and thus dodging both the conventional presidential permit and NEPA process — came up in a June 6, 2014 memo written by Coburn and his Steptoe co-counsel Josh Runyan. Enbridge’s legal argument centered around ensuring profits for its customers “consistent with its obligations as a common carrier.”

State Department Enbridge Emails
Image Credit: U.S. District Court for the District of Minnesota

“Wrap This Up…Running Out of Time”

On March 18, 2014, Ona Hahs, Attorney-Advisor for the State Department’s Office of the Legal Advisor, informed her Department colleagues in an email that “we have to wrap this up” because she was informed by Coburn that Enbridge was moving forward with the project and about to break ground on it.

State Department Enbridge Emails
Image Credit: U.S. District Court for the District of Minnesota 

Just over a week later on March 27, 2014, Hahs emailed her colleagues again, informing them that Coburn had just called her again and they were “running out of time” to offer Enbridge what it requested.

State Department Enbridge Emails
Image Credit: U.S. District Court for the District of Minnesota

A month later, Robert Cekuta — then Deputy Assistant Secretary of State for the State Department’s powerful and industry-friendly Bureau of Energy Resources (BER) and now U.S. Ambassador to oil-soaked Azerbaijan — wrote a memo on April 24, 2014 to former BER head Carlos Pascual recommending approval of the “illegal scheme.” 

Pascual now serves as a non-resident Fellow at the Columbia University Center on Global Energy Policy, which many suspect is funded by the oil and gas industry, but the Center does not disclose its funding sources. Pascual signed his “CP” initials on the “approve” line, meaning Enbridge’s project had the State Department seal of approval.

State Department Enbridge Emails
Image Credit: U.S. District Court for the District of Minnesota

Though officially written by Cekuta, the bottom of the memo indicates it was drafted by both Hahs and Michael Brennan. Before serving in various capacities for the State Department beginning in 2003, Brennan worked for Shell Oil as its Manager for Export Sales Business Development in Asia and Latin America, according to his LinkedIn profile.

Later that same day, Brennan fired an email off to Coburn informing him of the State Department approval decision.

“Keystone XL Clone” Precedent Cited

In the June 6 memo penned by Enbridge’s counsel, its attorneys explained why “interconnections on Line 67 can take place in advance of the U.S. Department of State’s issuance of the Supplemental Environmental Impact Statement (‘SEIS‘) and the requested Presidential Permit to authorize Enbridge to operate the border segment of Line 67 at its design capacity of 880,000 barrels per day.”

Among the myriad legal cases cited in the memo, Coburn and Runyan pointed to the Sierra Club, et al v. U.S. Army Corps of Engineers case reported on by DeSmogBlog, which Enbridge argued and won as a defendant.

Coburn and Runyan wrote that the Sierra Club v. Army Corps of Engineers case rejects the legal “argument that construction of pipeline outside the area of federal permitting jurisdiction could be [prohibited] pending NEPA review.”

Because construction of the pump stations and interconnections are not occurring within the border segment of Line 67, and are independent from the Line 67 border capacity expansion…this activity is not required to await the completion of the SEIS,” they wrote.

That case, like the current one, centered around NEPA.

In that one, the U.S. Army Corps of Engineers handed Enbridge a controversial Nationwide Permit 12 permit to build its now-operational Flanagan South pipeline, which Sierra Club argued circumvented the NEPA process. It appears that case set an important legal precedent.

Flanagan South connects to Alberta Clipper in Flanagan, Illinois and ends in Cushing, Oklahoma via a connection to the Seaway Twin pipeline, which Enbridge co-owns with Enterprise Products Partners. From there, the heavy tar sands dilbit is taken to Gulf coast refineries, the same ones TransCanada’s Keystone pipeline system currently feeds into.

Together, all three pipeline pieces make up what DeSmogBlog has called the “Keystone XL Clone” pipeline system.

“Stand Down”

Asked about the emails, Doug Hayes, the Sierra Club attorney working on the U.S. District Court of Minnesota case, wrote in an email to DeSmogBlog that he thinks the State Department is essentially partaking in a dereliction of duty.

“There is absolutely no question that the State Department has the authority to tell Enbridge to stand down and follow the process that was always intended,” wrote Hayes. “The State Department is just not taking its presidential permitting responsibilities seriously and letting Enbridge call the shots.”

Neither representatives from Enbridge, the Steptoe & Johnson attorneys nor the State Department officials involved in the behind-the-scenes permitting of the “illegal scheme” responded to requests for comment sent by DeSmogBlog.

A hearing is scheduled for September 10 at the U.S. Courthouse in Minneapolis, Minnesota for the environmental groups’ Motion for Partial Summary Judgment, which was submitted on April 6.

 

Why more pipelines won’t solve the problem of oil-train explosions

Repost from Grist

Why more pipelines won’t solve the problem of oil-train explosions

By Ben Adler on 6 Apr 2015
Shutterstock | Shutterstock
In the last few years, the grassroots environmental movement has energetically opposed constructing big new oil pipelines in North America. Their opposition is understandable, since, on a global level, fossil fuel infrastructure encourages fossil fuel consumption, contributing to climate change, and, on a local level, oil pipelines leak and explode. But conservatives have been delighted to argue that greens are endangering the public and being short-sighted. Oil that comes out of the ground has to get to market somehow, and currently a huge amount of it is being shipped on freight trains. The result? An epidemic of oil train derailments, causing spills and even deadly explosions.

Is it fair to blame activists for this? Should climate hawks throw in the towel and accept Keystone XL as the lesser evil?

No and no — and I’ll explain two key reasons why.

First: Much of the oil criss-crossing the U.S. on trains is coming from North Dakota and traveling out along east/west routes where there aren’t even any proposals for big new pipelines. You can’t blame activists for that. Keystone would connect the Alberta tar sands to refineries on the Gulf Coast, but wouldn’t do anything to help move North Dakota’s fracked bounty. Right now rail is the main option for that. “Keystone XL would enable tar-sands expansion projects, but is unlikely to reduce crude-by-rail,” says Anthony Swift, an attorney at the Natural Resources Defense Council. But don’t just take his word for it. Oil-loving, Keystone-supporting North Dakota Sen. Heidi Heitkamp (D) makes the same point: “I am not someone who has ever said that the Keystone pipeline will take crude off the rails. It won’t,” Heitkamp said in November. “Our markets are east and west and it would be extraordinarily difficult to build pipelines east and west.”

Second: Climate activists are supporting something that actually would go a long way toward solving the problem of dangerous oil trains: strict regulation of those trains.

In the long term, of course, climate hawks want to keep the oil in the soil, and they are pushing for structural changes — like an end to federal leases for oil drilling offshore and on federal land — that would reduce the amount of oil we produce in the U.S. But in the short term, they’re not just being unrealistic and saying “no” to all oil transport — they’re pushing to make that transport safer.

The Department of Transportation has the authority to impose rules on oil trains’ design and speed, which would reduce the risk of them leaking and exploding when they derail or crash. DOT made an initial proposal in July of last year and is expected to finalize it in May. Green groups have been disappointed by the proposal, though — both the weakness of the rules and the slowness of the timetable. If all goes according to plan, the rules would be implemented later this year, but their requirements would still take years to phase in.

Fortunately there’s now a stronger proposal that climate hawks can get behind: a new Senate bill that would impose stiffer requirements than those being proposed by the Obama administration. Sen. Maria Cantwell (D-Wash.) introduced the Crude-By-Rail Safety Act late last month, along with three Democratic cosponsors: Tammy Baldwin (Wis.), Patty Murray (Wash.), and Dianne Feinstein (Calif.). It got immediate backing from big green groups.

Here are four critical things that need to be done to make oil trains safer, three of which are included in Cantwell’s bill:

  1. Stop the transport of oil in an old model of rail car, called the DOT-111, that was designed back in the ‘60s. DOT-111s “have a number of manufacturing defects that make them much more likely to rupture in a derailment,” says Swift. So environmentalists want to get 111s off the rails immediately. That’s exactly what Cantwell’s Senate bill would do. DOT, in contrast, proposes to delay that transition. “DOT only slowly phases out 111s by 2017 and the rest of fleet by 2020, and we think the industry is pushing to move the phaseout to 2025,” says Devorah Ancel, an attorney at the Sierra Club. “It’s very concerning.”
  2. Require steel jackets around vulnerable rail cars that carry oil. DOT would require freight companies to transition to a newer, sturdier model of car called the CPC-1232, but even those cars aren’t sturdy enough — they have already been involved some fiery accidents, including one in West Virginia in February and one in Illinois in March. Cantwell’s bill would go further, requiring CPC-1232s to be jacketed, and then calling for “new tank car design standards that include 9/16th inch shells, thermal protection, pressure relief valves and electronically-controlled pneumatic brakes.”
  3. Clamp down on the amount of flammable gases permitted in the oil on train cars. Oil fracked in North Dakota’s Bakken shale carries more volatile gases with it than your average crude, making explosions more common. DOT’s proposed rules do nothing to curb that. Cantwell et al would limit the volatility of the oil being transported and increase fines for violations.
  4. Reduce train speeds. Currently, the speed limit for crude-by-rail is 50 mph, and that’s voluntary. DOT would make a speed limit mandatory, but would only lower it to 40 mph, and even that may only apply in “high threat urban areas” with more than 100,000 people. “The question of speed limits is crucial,” says Swift. “You need to dramatically reduce the speed at which these trains are moving.” Swift notes that CPC-1232s may puncture when going above 18 mph, but environmental groups stop short of explicitly calling for that speed limit. NRDC says, “Crude oil unit trains must adhere to speed limits that significantly reduce the possibility of an explosion in the event of a derailment.” That would presumably fall somewhere between 18 mph and 40 mph. Stricter speed limits is the one major needed reform that the Senate bill doesn’t address.

Cantwell’s bill also doesn’t compensate communities when accidents happen (the DOT proposal doesn’t either). But the bill’s sponsors intend to introduce future legislation to establish an oil spill liability trust fund paid for by fees from the companies moving crude oil. “Taxpayers should not be on the hook to bail out communities after a disaster caused by private companies,” said Cantwell.

It’s hard to imagine this bill passing both houses of an intensely pro-business, pro–fossil fuel Republican Congress. But Senate Democrats hope that by raising the issue they can build public awareness and support for stronger rules.

The bill could put pressure on the Obama administration to adopt the strongest possible version of its proposal. During the public comment period on DOT’s draft rules, the oil and rail industries argued for the weakest rules under consideration. Now the plans are being reviewed by the White House Office of Management and Budget, which tends to scale rules back in order to reduce their cost to business. Representatives from the oil and rail industries have been meeting with OMB to lobby for weaker rules.

Late last month, Chuck Schumer (N.Y.), who will take over as Senate Democratic leader after Harry Reid (Nev.) retires next year, announced that he and six colleagues — including Baldwin and Democratic Whip Dick Durbin (Ill.) — had sent a letter to OMB Director Shaun Donovan asking him to ensure “the rule is strong and comprehensive and that it is finalized as quickly as possible.” If nothing else, Schumer’s push and Cantwell’s bill will set up a countervailing force to the industry voices that the Obama administration is listening to.

The administration should protect public safety without being pushed by fellow Democrats — in this case, it has the power to do so without congressional approval. There is definitely a clear alternative to the false choice between pipelines and dangerous oil trains.

Green Groups press New York state for $100 million Oil Spill Fund

Repost from the Press-Republican, Plattsburgh NY

Green Groups press for $100 million state Oil Spill Fund

Claim $40M proposed in state budget won’t cover cost of derailments

By Kim Smith Dedam, March 23, 2015

ELIZABETHTOWN — Environmental groups are pushing state lawmakers to bulk up the state’s Oil Spill Fund.

They see a need for $100 million set aside, not $40 million as is currently proposed in the executive and legislative budgets.

And they have asked Gov. Andrew Cuomo and legislators to leave the money within the purview of the State Comptroller’s Office and not move the fund to State Department of Environmental Conservation coffers.

“This is a backup fund, mainly because in other cases, where a spill has led to significant cleanup costs, some companies go out of business, including the company whose accident resulted in the explosion at Lac-Megantic in Quebec,” Adirondack Council spokesman John Sheehan said in an interview this week.

“At that point, there is little the state can do to get the money from the company other than to go to court.”

‘DOESN’T TAKE MUCH’

Total liabilities for the Lac-Mégantic, Quebec, rail disaster in July 2013 could easily reach $2.7 billion over the next decade, the coalition said in a news release.

The Adirondack Council joined forces with Environmental Advocates, the Sierra Club and Riverkeeper to press the Oil Spill Fund issue.

“Typically, the requirement for (accident) insurance has not been high enough to cover the cost of an accident that could take place as the result of an explosion,” Sheehan told the Press-Republican.

“And it doesn’t take much oil to contaminate thousands of gallons of water, especially when we’re talking about a drinking water supply for 188,000 people, which Lake Champlain is.”

The Canadian Pacific Railroad line runs the entire length of Lake Champlain’s western shore, and oil train trips have increased in recent months.

Many places where oil cars have spilled and exploded sustained permanent environmental damage, Sheehan said.

$60 MILLION MORE

The coalition is not trying to force funding contributions from oil transport companies or the railroads to bolster state Oil Spill Funds.

They do believe lawmakers in Albany are on the right track in looking to increase funding for next year.

“However, the $15 million increase to $40 million proposed by (Cuomo) and Assembly budgets could and should be increased.

“In today’s dollars, the $25 million fund created in 1977 would be a $96.4 million fund today,” the coalition said in a news release.

“Thus, we urge that the fund cap be increased to $100 million to bring it back to parity with the monetary protection it afforded nearly four decades ago.”

They also charge that the Oil Spill Fund should be indexed to keep pace with inflation.

10 WRECKS YEARLY

“Federal regulators have told us to expect at least 10 major derailments of crude oil trains a year. There have already been four in the last three weeks,” Kate Hudson, Riverkeeper’s Special Projects director, said in a news release.

“It’s no longer a matter of if, but when, a catastrophe will happen in a New York community. If we are without a robust spill fund, New York citizens could be left to shoulder the cost of the cleanup and damages, just as the citizens of Canada were a year and a half ago.”

SEPARATE ACCOUNTS

Environmental advocates also asked Albany to fund emergency response separately from oil spill response and environmental cleanup.

“We welcome proposed funding for emergency response equipment, supplies and training for state and local emergency services personnel,” the coalition said in a news release.

“We strongly support the Assembly’s proposed legislation, which would keep that funding separate from the account that pays for remediation costs, as well as the damages associated with loss of life and property damage and economic losses suffered by individuals and businesses in the event of a spill.”

If response and spill monies are kept in a joint account, they contend, emergency cleanup costs could deplete the response fund, leaving the state without resources to remediate a spill.

‘TREMENDOUS RISK’

Roger Downs, conservation director for the Sierra Club’s Atlantic Chapter, said New Yorkers assume “tremendous risk and little economic benefit” from the millions of gallons of explosive crude oil that “rumble through our cities and along our precious waterways every day.”

Inaction on the part of the federal government to adequately address the risks or improve oil-tank-car safety should not prevent state lawmakers from building the most robust spill fund possible, he said.

The joint call for heightened oil-spill resources came within a day of the release of reports from state inspections done at railroad yards in Albany and Buffalo.

State inspectors found 93 defects in tracks and crude oil cars, including seven critical safety defects that had to be fixed before cars could continue operation.

Inspections were done on tankers at a CSX rail yard in Buffalo and at the Canadian Pacific yard in Albany.