Obama press secretary questioned on anti oil sands demonstrations

Energy Environment links

U.S. president Barack Obama’s press secretary, Jay Carney, was asked about the continuing demonstrations  in Washington against the Alberta oil sands and the Keystone XL pipeline proposal during a “gaggle” (an informal news conference) aboard Air Force One en route to Minnesota today.

The White House released this transcript of the brief exchange:

Q Also, anything on these protests outside the White House on this
pipeline? Has the President decided against TransCanada’s permit for the
pipeline? It’s the tar sands pipeline. There have been a lot of arrests
outside the White House about it.

MR. CARNEY: I don’t have anything new on that. I believe the State
Department has — that’s under the purview of the State Department
presently, but I don’t have anything new on that.

Q Is the President aware of the protests?

MR. CARNEY: I haven’t talked to him about it.

Protestors have been demonstrating in a restricted area near the White House and are inviting arrest as part of an ongoing effort to stop the Keystone XL bitumen pipeline from Alberta to Texas. The latest celebrity to take part in the protests was actress Darryl Hannah, who was arrested today, as reported by The Guardian.

The State Department did give its approval to the Keystone XL pipeline on  Aug 26, saying, as reported in The Guardian.

The State Department said the proposed 1,700-mile pipeline would not cause significant damage to the environment.

The State Department in its report said the project – which would pipe more than 700,000 barrels a day of tar sands crude to Texas refineries – would not increase greenhouse gas emissions. It also downplayed the risks of an accident from piping highly corrosive tar sands crude across prime American farmland.

Campaigners accused the State Department of consistently overlooking the potential risks of the pipeline.

The largest anti-pipeline demonstration is expected on Sept. 2, when First Nations leaders are expected to join the protests in front of the White House.

As Keystone decision nears, new interest in pipeline safety, especially Enbridge

Links: Energy Environment

The US State Department will announce its decision on the Keystone XL bitumen pipeline from Alberta to Texas as the Calgary Herald reported on July 22

The U.S. State Department said Friday that it will wrap up its
examination of environmental impacts of a proposed Canadian pipeline
expansion from the oilsands in less than a month in order to ensure a
final decision on the controversial project by the end of the year…

Daniel Clune, the principal deputy assistant secretary from the U.S.
Bureau of Oceans and International Environmental and Scientific Affairs,
said that the department would consider a variety of factors, including
recent developments such as a major pipeline spill on the Yellowstone
River, instability in Libya affecting global oil supplies, as well as
this week’s announcement by Canadian Environment Minister Peter Kent
that Canada would increase its monitoring of the impact of oilsands
activity based on recommendations from scientists.

A couple of weeks before the State Department ruling, the US Pipeline and Hazardous Materials Safety Administration (PHMSA) Technical Pipeline Safety Standards Committee (TPSSC) and the Technical Hazardous Liquid Pipeline Safety Standards Committee (THLPSSC) will meet in Arlington, Virginia  on  August 2, 2011 to consider draft pipeline safety recommendations  for the United States called `The State of the National Pipeline Infrastructure–A Preliminary
Report.”   The public had until July 13, 2011, to make submissions to be considered
by the subcommittee members prior to submission of their draft
recommendations to the overall committees.

There is a web page from the PHMSA on the July, 2010, Marshall, Michigan, Enbridge pipeline break and spill.

The National Post updates the Marshall Enbridge spill with a report Aftermath of a Spill by Sheldon Alberts.

Now, one year later, local residents and U.S. authorities are taking
stock of the toll. A National Transportation Safety Board investigation
into what caused the two metre gash in the pipeline is ongoing, with its
conclusion perhaps months away.

The Kalamazoo, which in normal
summers would be flush with paddlers and recreational fishermen, is
still closed to the public as a massive effort to clean up the remaining
oil – most of it now submerged on the riverbed – continues.

Also
raging is the heated debate that the Enbridge spill ignited in the
United States and Canada over the safety of pipelines – some new, others
decades old – that carry oil sands bitumen to markets in America’s
heartland.

Energy media turns its eyes on Kitimat, LNG and Enbridge

The prospect of Kitimat becoming a major port for export of Liquified Natural Gas was bound eventually to spark interest in the media covering the energy sector.

This week, photos of Kitimat mayor Joanne Monaghan turned up on as the lead on stories in Alberta Oil magazine and The Financial Post.
In Alberta Oil’s Export visions stoke deep divisons in a coastal town, the longest of the two articles,  feature writer Jeff Lewis, puts the history of Kitimat into some perspective for the Alberta oil patch. 

Alcan came to northern British Columbia in the early 1950s with plans to build the world’s biggest aluminum smelter…. 

Even by today’s standards of engineering, the $500-million “Kitimat Project” was ambitious…. They bored into a mountain to create the Kemano hydro plant. They blasted enough rock to dam and reverse the Nechako River. They strung high-wire transmission towers across a rugged valley. And they built Kitimat – complete with schools, pre-fabricated houses floated in on barges, roads and even a toastmasters club – from scratch. 

It is to this history that Mayor Joanne Monaghan refers when she dismisses fears about development in the region ruining a natural wilderness. “Kitimat is geared to be an industrial town,” she says over lunch at the local Chalet Restaurant. “That’s what it was built as.” Distinct neighborhoods and services were laid out for a population many thought would crest 50,000, with heavy industry built at a remove from the commercial and residential areas of town. 

 The vision never quite materialized…  Monaghan… insists job prospects in the town are poised for recovery. The unemployment rate was 9.5 per cent in 2006. “I think it can only get better from here,” the mayor says. “I really feel like we’re a sleeping giant, and the giant is waking up.” 

It is also true that the town remains partially stuck, very much groping in what is perhaps the darkest hour before the mayor’s dawn. Local divisions aren’t limited to the physical split between the town’s industrial park and its residential streets. While the Apache-sponsored gas terminal has progressed to the point where site preparation is underway, Enbridge’s Northern Gateway faces tremendous opposition – from the Haisla, but also from pockets of local residents. The multibillion-dollar pipeline has underscored deep-seated tensions in the region to such an extent that the local council refuses to talk about it. Some, including Monaghan, favor a referendum on the project. “It’s a contentious issue,” she says.

The Financial Post’s energy reporter Claudia Cattaneo focuses more on the issues on her beat in LNG Trying to Dock    Catteneo notes that the March earthquake in Japan which crippled the country’s nuclear energy raised interest in exports of liquified natural gas from Alberta through the port of Kitimat.

Her article also reflects the hints of skepticism that have arisen about natural gas exports in the past couple of weeks.  She points out that part of the price advantage that Alberta gas may have in Asia is not the “molecules” the term so beloved of  the experts in the energy industry but “arbitrage” the difference between the Asian price of natural gas which is a percentage of the price of oil (which is going up) and the North American price, which is based on supply and demand, North American gas  supply is up due to exploitation of the shale gas reserves and so the price of natural gas has dropped. (Kitimat residents of course haven’t noticed the drop in the price of natural gas due to the high transportation “bill” charged by the local monopoly Pacific Northern Gas).  The companies that want to build a port at Kitimat are basing part of their profit picture on that price difference.
Cattaneo quotes Chris Theal who works for a Calgary hedge fund who says that the Asian demand for natural gas will continue to increase in the coming years, but export could be strangled by limited capacity on the BC coast even if all the projected Kitimat projects go ahead and there is an expansion of the port of Prince Rupert to handle natural gas from pipeline or rail tanker. Theal says (ideas that also recently came out at the NEB hearings in Kitimat) that alternative export ports could exist in the United States at ports like Coos Bay and Clataskanie, Oregon and Astoria,Washington.

Here’s how the Enbridge hearings will proceed

387-Jointreviewbriefing_June_16_2011.jpg

Staff of the Northern Gateway Joint Review panel explain the hearing process to residents of Kitimat at Riverlodge Recreation Centre, June 16, 2011.  (Robin Rowland/Northwest Coast Energy News)


It will take more than year for the Enbridge Northern Gateway Joint Review Panel to complete hearings and taking evidence before it even begins to consider a decision whether or not to approve the controversial pipeline proposal. 

Even then, the worries of the residents of northwest of British Columbia will be only one factor in the panel’s decision. 
The Joint Review panel information town hall reached Kitimat on the afternoon of Thursday, June 16. One of the information sheets handed out at the town hall explained the Joint Review Panel this way: 
 In deciding if the Project is in the public interest, the Panel will consider whether Canadians would be better or worse off if the Project was approved. The public interest includes all Canadians and refers to a balance of economic, environmental and social considerations that change as society’s values and preferences evolve over time. 
(Emphasis in original)
 Here is a summary of how the process will work: 
This summer, those who wish to formally participate in the hearing process must register with the panel.
 For those who wish full intervenor status, the deadline to apply is July 14, 2011.
For those who wish to make oral statements in the community round of hearings, the deadline to apply is October 6, 2011. 
Those formal intervenors who wish to request information from Northern Gateway have two deadlines. August 25, 2011 is the deadline for the first round, after which Northern Gateway must respond by October 6. The intervenors then can ask Northern Gateway a second set of questions, with a deadline of November 3, 2011. Northern Gateway must respond by November 24, 2011. 
The deadline for intervenors to file written evidence with the panel is December 22, 2011.
Community hearings
 On January 10, 2012, the Joint Panel will begin the “community hearings” phase where anyone who met the registration deadline, either as an intervenor or a community participant, can make a presentation to the panel. 
 These community hearings will be held across northern BC and Alberta, along the route of the pipeline and down the coast, with, sources say, a significant session slated for Kitimat.
The community hearings are expected to take several weeks.
 Those who made oral comments to the panel then have until March 13, 2012 to file follow up letters. 
Final hearings
 The community hearings are then followed by another round of filing by the intervenors and government participants.
 On June 16, 2012 the Joint Review Panel will then open the more formal “final hearings” at a location to be determined. 
 Around the same time, the Joint Review Panel must prepare an environmental assessment report that will be submitted to the Minister of the Environment. 
Again, according to the handout material, there is a caveat in the panel’s mandate 
 The significance of any negative environmental and socio-economic effect is only determined after considering the actions that are proposed to prevent or reduce the effects.  (Emphasis in the original)
 In other words, as those who have attended Enbridge’s briefing sessions know, the company has outlined a whole series of safety measures, for example, adding navigation aides to Douglas Channel and parts of the coast.
If the environmental movement wishes to challenge the voluminous reports, likely costing millions of dollars that Enbridge has already filed as part of its application to the Joint Review Panel,  the environmental concerns will have to be backed up with solid and expensive expert evidence.
 Once the Minister of the Environment has the environmental assessment, the government then responds: 
The government response will set out whether the Government of Canada agrees or disagrees with the conclusions and recommendations made the Panel by the panel regarding the potential environmental and socio-economic affects of the Project. The Governor-in-Council [ the federal cabinet] must approve the government response. This approved response will be made available to the public.
The decision
 After it hears the government response on the environment, the panel makes its decision,  whether or not the project can proceed. 
The Panel will issue its Reason for Decision which will include a decision whether or not the Project is in the Canadian public interest.

If the Panel decides the Project can proceed, its Reasons for Decision will include conditions that Northern Gateway must meet before, during and after the construction of the Project.

If the Panel decides that the Project should proceed, the Panel will send its decision to the Governor in Council who can either accept or reject the decision but cannot modify it.

The Governor in Council means the federal cabinet, so the final decision will rest with Prime Minister Stephen Harper.

388-gatewaymap.jpg

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Canadian oil boom may bring many more tankers to Northwest waters: Seattle Times

Seattle Times

Canadian oil boom may bring many more tankers to Northwest waters

[F]ights over Canada’s oil sands could have an impact much closer to home. One company is hoping to boost oil-sands shipments to Asia through Northwest waters — plans that would quadruple tanker traffic through Vancouver, B.C., and dramatically increase the amount of oil traveling through the Strait of Juan de Fuca.

Some of the tankers the company hopes to accommodate could carry four times more crude than the Exxon Valdez, the supertanker that spilled 11 million gallons of crude into Prince William Sound….

“That’s definitely a lot more crude carriers,” said Chip Booth, a manager with the Washington state Department of Ecology’s spills program. “It certainly represents a bit of a higher risk.”

But it’s far too soon to say how much more.

Oil Sands Project in Canada Will Go On if Pipeline Is Blocked: New York Times

New York Times
(Registration required)

Oil Sands Project in Canada Will Go On if Pipeline Is Blocked

One way or another — by rail or ship or a network of pipelines — Canada will export oil from its vast northern oil sands projects to the United States and other markets.

The oil sands have reserves of 171.3 billion barrels, according to estimates by the provincial government of Alberta.

So the regulatory battle over the proposed Keystone XL pipeline, which would link the oil sands to the Gulf Coast of the United States, may be little more than a symbolic clash of ideology, industry experts say. Even if the Obama administration rejects the Keystone plan, the pace of oil sands development in northern Alberta is unlikely to slow

Joint Review hearings on Enbridge Northern Gateway set for Kitimat in mid-January: sources

The full Joint Review Panel hearings on the Enbridge Northern Gateway pipeline are tentatively set to open in Kitimat in mid-January, 2012.

Knowledgable energy industry insider sources confirmed the likely dates and that the bulk of the hearings will take place in Kitimat to Northwest Coast Energy News Friday after a number of the participants in this week’s  National Energy Board hearings on the KM LNG pipeline made inquiries locally about booking meeting rooms and hotel accommodation for several weeks in a stretch,  beginning in early January, 2012.

The Joint Review website says:  “The Panel will start meeting with participants on 10 January 2012 at locations to be determined.”   During last winter’s  National Energy Board pre-briefing  on this week’s  LNG hearings, NEB staff said the location  to  be determined was always chosen to provide the best opportunity for those involved to speak before the board.  While there were fears in Kitimat that the LNG hearings would be held Alberta, those fears proved to be unfounded.

The Joint Review panel is now traveling across BC offering information sessions to the public.
Updated schedule here. It is highly likely that hearings, like the information sessions, will be held in as many locales as possible, but those will likely be mostly about local issues, with the bulk of the concerns before the Joint Review Panel hearings in Kitimat.
 
A NEB source cautioned that dates are always tentative due to other hearings, staff commitments (some of the KM LNG NEB staff are also assigned to the Northern Gateway hearings) and, as sometimes happens, the lawyers agreeing on postponements.
 

According to the official website:

The Joint Review Panel for the Enbridge Northern Gateway Project is an independent body, mandated by the Minister of the Environment and the National Energy Board. The Panel will assess the environmental effects of the proposed project and review the application under both the Canadian Environmental Assessment Act and the National Energy Board Act.

The Joint Review panel has much wider powers to hear issues than the NEB did this week in the KM LNG hearings, where the only issue on the table was the partnership’s application for a natural gas export licence.

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Enbridge still short on pipeline support: Globe and Mail

Globe and Mail

Enbridge Inc. is struggling to win aboriginal support for its Northern Gateway project, despite major financial promises and efforts to curry support through sponsoring golf tournaments, powwows and rodeos, regulatory documents filed by the company show. 

 Enbridge has pledged some $1-billion in financial sweeteners to first nations, including a 10-per-cent equity stake in the project and promises of hiring guarantees and hundreds of millions in spending on aboriginal businesses….

But documents filed with the National Energy Board by Enbridge… show that a surprising number of groups do not appear interested in the offer….

Environmentalists pin hope on Obama opposition to pipeline project: Globe and Mail

Globe and Mail  

TransCanada Corp.’s proposed Keystone XL pipeline has become a litmus test in the U.S. battle over energy policy, as the environmental movement looks for reassurance that President Barack Obama is committed to combatting climate change.

 Prodded by congressional Republicans for a quick decision, the U.S. State Department concludes a comment period on Monday for its draft environmental impact statement on the XL project. 

 The final version – to be issued this summer – will likely conclude that the environmental concerns should not derail the project, despite troublesome leaks from the existing Keystone pipeline, which was shut last week after a small leak in Kansas.

US allows restart of Keystone pipeline: Reports

There are media reports that the United States Pipeline and Hazardous Material Safety Administration is permitting the restart of the Keystone pipeline after earlier saying it could not be restarted following a spill on May 29.

 

The Wall Street Journal reports

The U.S. Department of Transportation on Saturday approved TransCanada Corp.’s plan to restart its Keystone pipeline…. TransCanada on Saturday provided results of its testing along the Keystone and can restart it as soon as the morning of July 5, the PHMSA said in a letter to the company.

“Based on a review of the information submitted, the restart plan is approved,” PHMSA Central Region Director David Barrett said in the letter.

Reuters reports that pipeline could start as early as Sunday:

 

TransCanada Corp (TRP.TO) can restart its Keystone oil pipeline on Sunday, after the company satisfied a series of safety conditions following leaks that idled the key export line twice in less than a month, the U.S. pipeline safety regulator said on Saturday. 

 The U.S. Pipeline and Hazardous Materials Safety Administration said it approved resumption of crude flows from Canada on the pipeline after the agency evaluated the company’s restart plan and was satisfied safety requirements were met.

As of this posting there is no confirming information on the PHMSA or TransCanada websites.