Exposed: State Dept.'s Keystone XL Contractor Blatantly Lied About Ties to Big Oil

Search form

Exposed: State Dept.'s Keystone XL Contractor Blatantly Lied About Ties to Big Oil

Exposed: State Dept.'s Keystone XL Contractor Blatantly Lied About Ties to Big Oil
Fri, 7/12/2013 - by Steve Horn
This article originally appeared on DeSmogBlog

The contractor the Obama U.S. State Department hired for the Supplemental Environmental Impact Statement (SEIS) of the northern half of TransCanada's Keystone XL (KXL) tar sands export pipeline overtly lied on its conflict-of-interest disclosure form that it signed and handed to State in June 2012.

A major research dossier unfurled today by Friends of the Earth-U.S. (FOE-U.S.) and The Checks & Balances Project (CBP) shows that Environmental Resources Management, Inc. (ERM Group) played "Pinocchio" in explaining its ties - or as they say, lack thereof - to Big Oil, tar sands and TransCanada in particular on its conflict-of-interest form.

The two groups dug deep and revealed State's contractor ERM and its subsidiary Oasis Environmental both have ongoing contractual relationships with the Alaska Gas Project - now known as the South Central LNG Project - co-owned by TransCanada, ExxonMobil, ConocoPhillips and BP. Further, ERM's Socioeconomic Advisor Mark Jennings served as a "Consultant to ExxonMobil Development Company for the Alaska Pipeline Project," according to his now-scrubbed LinkedIn profile.

ERM's own documents - FOE-U.S. and CBP further explain - also reveal the multinational firm has business ties with over a dozen companies active in the Alberta tar sands, including Exxon, Shell, Chevron, Conoco Phillips, Total and Syncrude.

On its conflict-of-interest form, ERM said it had no "direct or indirect relationship ... with any business entity that could be affected in any way by the proposed work." Clearly, that's far from the case.

In March, ERM Group - a City of London-based dues-paying member of the American Petroleum Institute (API) with a history of rubber-stamping ecologically hazardous oil and gas infrastructure projects - said KXL's northern half "is unlikely to have a substantial impact on the rate of development" of the tar sands in its SEIS. Thus, it will also have little impact on climate change, according to ERM's SEIS, contracted out by TransCanada on behalf of the State Department.

FOE-U.S. says these most recent developments further call the entire SEIS into question, and that doesn't include the fact that State recently revealed it's clueless as to the exact route of the Keystone XL.

"From the beginning, the State Department's review of Keystone has been plagued by influence peddling and conflicts of interest," said FOE-U.S.'s Ross Hammond in a press statement.

"This is more serious: If ERM lied about its relationship with TransCanada, how can Secretary Kerry, President Obama or the American people believe anything the company says about the pipeline's environmental impact?"

As PLATFORM London explains, ERM Group - also a dues-paying member of fracking industry lobbying force Marcellus Shale Coalition up until Oct. 2011 - is part of the "Carbon Web." That's shorthand for "the network of relationships between oil and gas companies and the government departments, regulators, cultural institutions, banks and other institutions that surround them."

Given the state of play, both FOE-U.S. and CBP have called for State's Office of the Inspector General to conduct a thorough investigation, examining how and why ERM was chosen. They've also called for a complete halt in the KXL review process until that transpires.

“Secretary Kerry must halt this flawed review process and direct the State Department to conduct a full, unbiased review of the Keystone XL pipeline’s impact," Gabe Elsner, director of CBP said in a press statement.

"In addition, the State Department Inspector General should pursue a full investigation into how a contractor with clear conflicts of interest was allowed to write the U.S. government’s assessment of Keystone XL and why the State Department failed to bring those conflicts of interest to light. Finally, the State Department should determine appropriate disciplinary actions for ERM to discourage contractors from lying to the federal government in the future."

Friends of the Earth U.S. has set up an action page where concerned citizens can send letters to State Secretary John Kerry calling for an investigation into the many conflicts of interest scandals within the environmental review process.

 
 
 
 

Article Tabs

On Sunday, hundreds of people milled around a protest site in the gentrifying, densely-populated district Mong Kok, manning aid stations and sitting in small circles on the pavement.

The California city of Rialto saw an 88% drop in claims of police misconduct within one year of officers wearing cameras.

"Peoples' movements will either succeed in transforming our economic and political systems to build a new world, or we will burn with the old one."

Florida has the highest foreclosure rate in the U.S. in the first quarter of 2014, and also has a "foreclosure king" who is now disbarred for his failure to oversee employees accused of carrying out wrongful foreclosures.

More than 110 students were reportedly arrested by the military-backed authorities during the first days of the new academic year.

"What we are doing is taking back this bit of common land for a short amount of time to create a real debate – a real discussion that people want to be having.”

Posted 6 days 10 hours ago

“We wanted to take action to dramatize the betrayal of the American people and show that we will resist and attempt to disrupt or at least expose pro-corruption politicians' ability to raise big money.”

Posted 4 days 14 hours ago

After 13 years of militarized zealotry and fear-mongering in the name of fighting terrorism, Risen's new book, "Pay Any Price: Greed, Power, and Endless War," unveils difficult post-9/11 truths.

Posted 5 days 14 hours ago

The oil giant, with $21.4 billion in 2013 revenue, is trying to buy upcoming municipal elections in Richmond that pit a pro-Chevron bloc of city council members against an anti-Chevron bloc.

Posted 5 days 12 hours ago

The Seattle festival showcases bold visions on the screen, with 50 films challenging societal structures through creative perspectives and a critical eye.

Posted 5 days 12 hours ago
200,000 Greeks March on Parliament to Condemn Austerity

A general strike brought the country to a halt on Wednesday as hundreds of thousands of anti-austerity protesters took to the streets in the first mass confrontation with Athens's three-month-old coalition government.

As an individual or as a public official, if you have money in one of the big banks, you have essentially given your money to that gambler and now you are a creditor to the gambler.

As a way of compensating for loss of bond income due to record-low interest rates, central banks have become some of the world’s largest stock investors – a rather alarming development.

If President Obama doesn't stop the pipeline with his pen, activists will stop it with their bodies.

World food control has nearly been achieved by reducing plant diversity through GMO seeds made by transnational corporations. If the Trans-Pacific Partnership passes, our food, health, environment and financial system will belong fully to the corporations.

Sign Up