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

Plains All American, Surfrider Foundation, oil spill, Santa Barbara,

New details have emerged about Plains All American's long history of generating similar disasters.

The U.S. ranks among the most unequal countries, surpassed only by Turkey, Mexico and Chile.

$15 minimum wage, low wage workers, fast-food worker strikes, Fight for 15, minimum wage hikes

Some of the biggest cities in America are now defying decades of economic orthodoxy and challenging social norms that regarded low-wage jobs as unavoidable and acceptable.

Joseph Stiglitz, Bernie Sanders, new populism, democratic populism, wealth inequality, income inequality, Next System Project

It's time to begin the careful work of knitting together broad, pluralistic conceptions of what a transformed system might look like.

The tide of public resistance against a proposed free trade agreement between the U.S. and the European Union is rising in Germany, as opponents say the plan would harm democracy and rule of law.

Posted 5 days 22 hours ago

Britain’s election shows it's no longer a united kingdom, that Scottish independence is increasingly likely – and that the new Conservative government will only further fracture an already deeply unequal society.

Posted 6 days 22 hours ago
fracking ban, Denton fracking, anti-fracking legislation, Greg Abbott

Texas Governor Greg Abbott signed a bill into law that prohibits cities and towns from banning an oil drilling practice known as hydraulic fracking, giving the state sole authority over oil and gas regulation.

Posted 5 days 22 hours ago

The Balkan country has been thrown into political crisis with the government implicated in a massive wire-tapping scandal and rigged elections, the opposition leader accused of plotting a coup, and 18 shot dead last week in a bloody gun battle.

Posted 6 days 22 hours ago
worker-owned cooperatives, worker-owned businesses

New York City is home to the country’s largest worker-owned co-op, Co-operative Home Care Associates, which employs some 2,300 workers, mainly immigrant and minority women in the South Bronx.

Posted 3 days 17 hours ago
kayaktivists, sHellNo.org, Shell drilling rig

Hundreds of protesters assembled early Monday to prevent workers from reaching the rig that the company plans to bring to Alaska's Chukchi Sea this summer.

Plains All American, Surfrider Foundation, oil spill, Santa Barbara,

New details have emerged about Plains All American's long history of generating similar disasters.

The U.S. ranks among the most unequal countries, surpassed only by Turkey, Mexico and Chile.

$15 minimum wage, low wage workers, fast-food worker strikes, Fight for 15, minimum wage hikes

Some of the biggest cities in America are now defying decades of economic orthodoxy and challenging social norms that regarded low-wage jobs as unavoidable and acceptable.

Retail Workers Bill of Rights, rising inequality, income inequality, wealth gap, Jobs with Justice

Getting the minimum wage raised was the easy part. The bigger challenge is ensuring the legislation has teeth.

Sign Up