The Flip Side Of Obama’s Keystone XL Delay
Large segments of the environmental movement declared a win on Jan. 18, 2012, the dawn of an election year in which partisan fervor reigned supreme.
On that day President Barack Obama kicked the can down the road for permitting TransCanada’s Keystone XL pipeline’s northern half until after the then-forthcoming November 2012 presidential election.
“Northern half” is the key caveat: just two months later, on March 22, 2013 – even deeper into the weeds of an election year – President Obama issued Executive Order 13604. Among other key things, the order has an accompanying memorandum calling for an expedited review of the southern half of Keystone XL stretching from Cushing, Okla. to Port Arthur, Texas.
The day before, March 21, Obama flew on Air Force One to a pipe yard in Cushing – the “pipeline crossroads of the world” – for a special stump speech and photo-op announcing the executive order and memorandum.
Dubbed the Gulf Coast Pipeline Project by TransCanada – 95 percent complete and “open for business” in the first quarter of 2014 – the 485-mile tube will ship 700,000 barrels of tar sands crude per day from Cushing to Port Arthur, where it will then reach Gulf Coast refineries and be exported to the global market. It will eventually have the capacity to ship 830,000 barrels per day.
The subject of a large amount of grassroots resistance from groups such as Great Plains Tar Sands Resistance and the Tar Sands Blockade, the Gulf Coast Pipeline Project – when push comes to shove – is only the tip of the iceberg.
That’s because Obama’s order also called for expedited permitting and review of all domestic infrastructure projects – including but not limited to pipelines – as a reaction to the Keystone XL resistance.
A months-long Mint Press News investigation reveals the executive order wasn’t merely a symbolic gesture.
Rather, many key pipeline and oil and gas industry marketing projects are currently up for expedited review, making up for — and by far eclipsing — the capacity of Keystone XL’s northern half. The original TransCanada Keystone pipeline – as is – already directly connects to Cushing from Alberta, making XL (short for “extension line”) essentially obsolete.
Keystone XL’s northern half proposal is key for marketing oil obtained from the controversial hydraulic fracturing (“fracking”) process in North Dakota’s Bakken Shale basin.
Dubbed the Bakken Marketlink Pipeline, the segment has lost its importance with the explosive freight rail boom for moving Bakken fracked oil to market and other pipeline proposals. One of those pipelines, in fact, has received fast-track approval under the March 2012 Obama Executive Order.
Feeling the pressure from protest against the Keystone XL from groups such as the Tar Sands Action, Indigenous Environmental Network and others, Obama pulled a fast one: “wait and see” for XL’s northern half – which many claimed as a victory – and expedited approval of everything else via executive order.
Obama’s Keystone XL southern half March 2012 memo reads like Big Oil talking points.
“[W]e need an energy infrastructure system that can keep pace with advances in production,” Obama states in the Memo. “To promote American energy sources, we must not only extract oil — we must also be able to transport it to our world-class refineries, and ultimately to consumers.”
A metaphorical slap in the face to environmentalists who spent months working on opposing Keystone XL, Obama argued a more efficient, less bureaucratic means of approval was compulsory.
“[A]s part of my Administration’s broader efforts to improve the performance of Federal permitting and review processes, we must make pipeline infrastructure a priority … supporting projects that can contribute to economic growth and a secure energy future,” the memo reads.
Though the order issued an expedited permitting process for Keystone XL’s southern half, it also foreshadowed that expedited permitting would become the “new normal” going forward for all domestic oil and gas pipeline projects.
“To address the existing bottleneck in Cushing, as well as other current or anticipated bottlenecks, agencies shall … coordinate and expedite their reviews … as necessary to expedite decisions related to domestic pipeline infrastructure projects that would contribute to a more efficient domestic pipeline system for the transportation of crude oil,” the memo states in closing.
The memo also notes all projects placed in the expedited permitting pile can have their statuses tracked on the online Federal Infrastructure Projects Dashboard, with 48 projects currently listed.
Little time was wasted building the XL’s southern half after Obama issued the Order and within a slim two years, TransCanada will have its first direct line from Alberta to Gulf Coast refineries in southern Texas.
It’s not as if the Keystone XL southern half expedited permit has gone unopposed. It’s just that activists who have chosen to resist the pipeline have paid a heavy price for doing so.
A case in point: opposition to Keystone XL’s southern half has earned many activists the label – on multiple occasions – as potential “eco-terrorists,” named as such by TransCanada, the U.S. FBI and Department of Homeland Security’s Nebraska-based “fusion center” and local undercover police.
Other activists were threatened by TransCanada with a strategic lawsuit against public participation (SLAPP), all of whom made an out of court settlement in January 2013.
Activists agreed to “no longer trespass or cause damage to Keystone XL property including the easements within private property boundaries,” explained FireDogLake’s Kevin Gosztola in a January 2013 article.
The agreement was a quintessential “lesser of two evils” choice, given activists could have found themselves bogged down in legal fees from TransCanada and may have eventually owed the corporation big bucks.
“The activists had a choice: either settle or face a lawsuit in court where TransCanada would seek $5 million for alleged financial damages … that could have much worse consequences,” Gosztola further explained.
Beyond SLAPP threats, key lawsuits aiming to fend off TransCanada have also failed.
One of those lawsuits in particular – filed on April 25, 2013 by a Douglass, Texas-based citizen named Michael Bishop representing himself in court – paints a picture of what President Obama meant when he said he would fast-track permitting for infrastructure projects going forward.
Before filing the lawsuit, Bishop penned a four-part series for EcoWatch in February and March of 2013 on his experiences as a landowner living a mere 120-feet from pipeline construction and dealing with TransCanada in Texas.
“I am amazed by the lack of understanding about this project by the general public and even more amazed that people in other parts of the country are so focused on the ‘northern segment’ while the pipeline is actually being laid right here in Texas and will begin transporting diluted bitumen, tar sands crude oil, to Gulf Coast refineries by the end of the year,” Bishop wrote in Part III. “So many seem oblivious to this fact.”
Bishop alleges in his Complaint for Declaratory Relief and Petition for Writ of Mandamus that on-the-books bread-and-butter environmental laws were broken when fast-tracked permitting for Keystone XL’s southern half unfolded.
The permitting mechanism utilized by the U.S. Army Corps of Engineers – following Obama’s March 2012 executive order and memorandum – was a Nationwide Permit 12.
Nationwide Permit 12 has also been chosen for fast-tracked permitting of Enbridge’s Flanagan South Pipeline. That pipeline is set to fill the gap – and then some – for Keystone XL’s northern half, bringing tar sands crude along the 600-mile long, 600,000 barrels per day pipeline from Pontiac, Ill. to Cushing, Okla.
Bishop cited the National Environmental Protection Act (NEPA), arguing Nationwide Permit 12 as applied to Keystone XL’s southern half violated the spirit of that law because no environmental assessment was conducted and no public hearings were held.
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