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

Despite propaganda from Big Ag, biotech and the Grocery Manufacturers Association, surveys show vast majority of residents in Washington, Oregon and Idaho want to know what's in their food.

When a journalist in a news article refers to a woman as “strident,” you know what you’re reading is a hit piece – and that's what the New York Times produced about Occupy Wall Street activist McMillan.

A new kind of tracking tool, canvas fingerprinting, is being used to follow visitors to thousands of top websites, from WhiteHouse.gov to YouPorn.

Reporting that CEOs in the U.K. earn 162 times more than the average worker, the High Pay Centre calls on government to put immediate caps on executive salaries.

On Monday, 80 protesters with Utah Tar Sands Resistance halted access to equipment where the company seeks to begin work on the first fuel-producing tar sands mine in the state.

In the 80s and 90s they called them "IMF Riots" – but what the biggest international investment organizations and consultants now see happening looks a whole lot bigger.

Posted 6 days 8 hours ago

Part 3: Chris Hedges interviewed Harvard professor and MayDay SuperPAC founder Lawrence Lessig about his plans to break the hold of big money on American elections.

Posted 6 days 8 hours ago

Patient details were shared with organizations including private health insurance companies, many based in the United States.

Posted 6 days 8 hours ago

The aggressive foreclosures and water shut-offs are a deliberate scheme to shock the population, drive long-time residents out of the city center, seize property and gentrify downtown Detroit and the waterfront.

Posted 6 days 8 hours ago

All over the world, publics are beginning to reject the privatization mantra – because the privatizers, it turns out, have a serious problem with their pitch.

Posted 6 days 8 hours ago

The terror charges facing two environmental protesters who unfurled a banner and dropped glitter at an oil and gas company's office in Oklahoma are outrageous and egregious, their lawyer says.

Candidate Obama criticized policies allowing phone calls to be monitored; in office, he has continued and even extended them.

A federal civil rights lawsuit has been filed on behalf of the family of Andy Lopez, contending that a sheriff deputy's killing of the 13-year-old was unconstitutional in that it violated the Fourth Amendment limiting police authority. Huge demonstrations are planned for Saturday.

The Reverend Bill Wylie-Kellerman sat down with nine others blocking the entrance of the facility where Homrich Wrecking’s water shutoff trucks were set to leave for the day.

Sign Up