Obama Punts On Keystone Pipeline

A decision to give executive agencies more time to review plans for the controversial pipeline could push a final decision to after the midterm elections

President Barack Obama gestures as he speaks at Rev. Al Sharpton’s National Action Network’s conference in New York, April 11, 2014 (Carolyn Kaster—AP)

The Obama Administration is extending its review of the controversial Keystone XL pipeline that has become an election-year minefield.

The State Department said Friday that while the public comment period will not be extended, executive agencies need more time to review the submitted comments as well as consider a Nebraska court case surrounding the pipeline. The indefinite extension could put off a decision on the pipeline, which would carry crude oil from Canadian tar sands to American refineries, until after November’s midterm elections.

“On April 18, 2014, the Department of State notified the eight federal agencies specified in Executive Order 13337 we will provide more time for the submission of their views on the proposed Keystone Pipeline Project,” the department said in a statement. “Agencies need additional time based on the uncertainty created by the on-going litigation in the Nebraska Supreme Court which could ultimately affect the pipeline route in that state. In addition, during this time we will review and appropriately consider the unprecedented number of new public comments, approximately 2.5 million, received during the public comment period that closed on March 7, 2014.

“The Permit process will conclude once factors that have a significant impact on determining the national interest of the proposed project have been evaluated and appropriately reflected in the decision documents,” the State Department statement continued. “The Department will give the agencies sufficient time to submit their views.”

The pipeline has become a focus of Republican critics of the Obama Administration’s regulatory process. Senate Minority Leader Mitch McConnell blasted the White House Friday after news of the decision broke.

Read more at TIME

Koch Brothers Are Principal Stakeholders in Canadian Tar Sands

“The biggest lease holder in Canada’s oil sands isn’t Exxon Mobil or Chevron. It’s the Koch brothers.” via the Washington Post.

David Koch, executive vice president of Koch Industries (AP Photo/Mark Lennihan)

You might expect the biggest lease owner in Canada’s oil sands, or tar sands, to be one of the international oil giants, like Exxon Mobil or Royal Dutch Shell. But that isn’t the case. The biggest lease holder in the northern Alberta oil sands is a subsidiary of Koch Industries, the privately-owned cornerstone of the fortune of conservative Koch brothers Charles and David.

The Koch Industries subsidiary holds leases on 1.1 million acres — an area nearly the size of Delaware — in the oil sands region of Alberta, Canada, according to an activist group that studied Alberta provincial records. The Post confirmed the group’s findings with Alberta Energy, the provincial government’s ministry of energy. Separately, industry sources familiar with oil sands leases said Koch’s lease holdings could be closer to two million acres. The companies with the next biggest net acreage positions in oil sands leases are Conoco Phillips and Shell, both close behind.

What is Koch Industries doing there? The company wouldn’t comment on its holdings or strategy, but it appears to be a long-term investment that could produce tens of thousands of barrels of the region’s thick brand of crude oil in the next three years and perhaps hundreds of thousands of barrels a few years after that.

The finding about the Koch acreage is likely to inflame the already contentious debate about the Keystone XL Pipeline and spur activists and environmentalists seeking to slow or stop planned expansions of production from the northern Alberta oil sands, or tar sands. Environmental groups have already made opposing the pipeline their leading cause this spring and Senate Majority Leader Harry Reid has called the Koch brothers Charles and David “un-American” and “shadowy billionaires.”

The link between Koch and Keystone XL is, however, indirect at best. Koch’s oil production in northern Alberta is “negligible,” according to industry sources and quarterly publications of the provincial government. Moreover, Koch has not reserved any space in the Keystone XL pipeline, a process that usually takes place before a pipeline is built. The pipeline also does not run anywhere near Koch’s refining facilities. And TransCanada, owner of the Keystone routes, says Koch is not expected to be one of the pipeline’s customers.

Read more at the Washington Post

Support quality journalism. Subscribe to the Washington Post.

Alberta Government Quietly Funded Researchers Behind ‘Independent’ Report Boosting Keystone XL

An aerial view of crude oil production in Alberta, Canada. (Flickr, Howl Arts Collective)

Before the State Department released its controversial Environmental Impact Study last week, a consulting firm called IHS CERA primed the news media by releasing its own study last year claiming that the Keystone XL wouldn’t make a substantial difference in emissions. The report was released as an “independent” study. TheNation.com filed a Freedom of Information and Protection of Privacy Act request to the Alberta government, and found that taxpayers in Canada paid IHS CERA hundreds of thousands of dollars.

The heavily redacted contract, a version of which can be found here, provides $325,000 from the government of Alberta to IHS CERA. In addition, public budget documents from Alberta reveal that taxpayers in Canada have provided IHS with more than $545,426 in payments over the last year for energy-related work.

The Alberta government has been one of the most aggressive proponents of the pipeline. Last year, Alberta retained two DC lobbying firms with strong ties to Secretary of State John Kerry, Mehlman Vogel Castagnetti and Rasky Baerlein Strategic Communications, to push for speedy approval of the Keystone XL.

Echoing the State Department EIS released last week, the IHS CERA claimed that even without the Keystone XL, Canadian oil sands would be developed by other means. “Even if the Keystone XL pipeline does not move forward, we do not expect a material change to oil sands production growth,” claims the authors.

However, assessments of the market by Toronto-Dominion Bank, Royal Bank of Canada, Deloitte, Goldman Sachs and other leading financial analysts have found that the Keystone XL is critical for the development of the high-carbon oil sands market.

Read more at The Nation

Support quality journalism. Subscribe to The Nation.