Tag Archives: Oil

Delegation seeks settlement of Dakota Access protest costs


BISMARCK, N.D. (AP) — North Dakota’s congressional delegation is calling on President Donald Trump’s administration to address the state’s year-old request for $38 million to cover the cost of policing protests against the Dakota Access oil pipeline.

U.S. Sens. John Hoeven and Kevin Cramer and U.S. Rep. Kelly Armstrong sent a letter Thursday urging Attorney General William Barr and Acting Defense Secretary Patrick Shanahan to settle the state’s claim, the Bismarck Tribune reported.

North Dakota’s attorney general filed an administrative claim against the Army Corps of Engineers last year, accusing the agency of letting protesters illegally camp on federal land in North Dakota in 2016 and 2017. It also argued the Corps didn’t maintain law and order when thousands gathered to protest the $3.8 billion pipeline built by Texas-based Energy Transfer Partners.

The pipeline was designed to move North Dakota oil through South Dakota and Iowa to a shipping point in Illinois.

The Corps inaction “required North Dakota to provide a sustained, large-scale public safety response to prevent deaths, and protect property and public safety, including that of the protesters,” Attorney General Wayne Stenehjem wrote in the funding request at the time.

The state delegation is now asking Barr and Shanahan to recognize the state’s public safety response during the prolonged and sometimes violent protests.

Justice Department spokesman Wyn Hornbuckle declined to comment on the delegation’s letter. The Defense Department also didn’t immediately provide comment.

The delegates’ request came on the same day that a federal appeals court ordered the dismissal of a lawsuit filed by environmental and Native American groups who sought to block construction of the Keystone XL oil pipeline. Opponents of the $8 billion pipeline from Canada to the U.S. have threatened similar protests to those against the Dakota Access pipeline.

By Associated Press, June 12, 2019

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U.S. judge halts construction of Keystone XL oil pipeline

A federal judge in Montana halted construction of the Keystone XL oil pipeline on Thursday on the grounds that the U.S. government did not complete a full analysis of the environmental impact of the TransCanada Corp project.

The ruling deals a major setback for TransCanada Corp and could possibly delay the construction of the $8 billion, 1,180 mile (1,900 km) pipeline.

The ruling is a victory for environmentalists, tribal groups and ranchers who have spent more than a decade fighting against construction of the pipeline that will carry heavy crude to Steele City, Nebraska, from Canada’s oilsands in Alberta.

U.S. District Court Judge Brian Morris’ ruling late on Thursday came in a lawsuit that several environmental groups filed against the U.S. government in 2017, soon after President Donald Trump announced a presidential permit for the project.

Morris wrote in his ruling that a U.S. State Department environmental analysis “fell short of a ‘hard look’” at the cumulative effects of greenhouse gas emissions and the impact on Native American land resources.

He also ruled the analysis failed to fully review the effects of the current oil price on the pipeline’s viability and did not fully model potential oil spills and offer mitigations measures.

In Thursday’s ruling, Morris ordered the government to issue a more thorough environmental analysis before the project can move forward.

“The Trump administration tried to force this dirty pipeline project on the American people, but they can’t ignore the threats it would pose to our clean water, our climate, and our communities,” said the Sierra Club, one of the environmental groups involved in the lawsuit.

Trump supported building the pipeline, which was rejected by former President Barack Obama in 2015 on environmental concerns relating to emissions that cause climate change.

Trump, a Republican, said the project would lower consumer fuel prices, create jobs and reduce U.S. dependence on foreign oil.

Reuters

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TransCanada to move materials, prep sites for Keystone XL

TransCanada stockpiling pipe south of Shaunavon for the Keystone XL pipeline, July 8, 2011. Photo By BRIAN ZINCHUK

PIERRE (AP) — The Keystone XL oil pipeline developer said in a letter this week to a Native American tribal chairman that the company will start moving materials and preparing construction sites for the project in Montana and South Dakota.

TransCanada Corp. said in the letter to Cheyenne River Sioux Chairman Harold Frazier, of South Dakota, that the work would start in July and go through the fall. The chairman on Thursday tweeted copies of TransCanada’s message and his response on the tribe’s letterhead: “We will be waiting.”

Frazier wasn’t immediately available on Friday to comment to The Associated Press. Keystone XL faces intense resistance from environmental groups, Native American tribes and some landowners along the route.

The project would cost an estimated $8 billion. The 1,179-mile pipeline would transport up to 830,000 barrels a day of Canadian crude through Montana and South Dakota to Nebraska, where it would connect with lines to carry oil to Gulf Coast refineries.

TransCanada spokesman Terry Cunha said in an email that the preparatory work will ramp up over the year to position TransCanada for construction in 2019. He said it would include moving pipe and equipment to start clearing activities to prepare for getting final permits and approvals for construction.

But the project faces legal hurdles. Nebraska landowners have filed a lawsuit challenging the Nebraska Public Service Commission’s decision to approve a route through the state.

A separate federal lawsuit brought by Montana landowners and environmental groups seeks to overturn President Donald Trump’s decision to grant a presidential permit for the project, which was necessary because it would cross the U.S.-Canadian border.

South Dakota’s Supreme Court in June dismissed an appeal from pipeline opponents — including the Cheyenne River Sioux — of a judge’s decision last year upholding regulators’ approval for the pipeline to cross the state.

By Associated Press

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Liberal government to buy Kinder Morgan’s Trans Mountain pipeline for $4.5 billion

Finance Minister Bill Morneau arrives at the National Press Theatre in Ottawa on Tuesday, May 29, 2018.

The Federal Liberal government is spending $4.5 billion to buy the Trans Mountain pipeline from Kinder Morgan.

The deal includes all of Kinder Morgan Canada’s core assets. The purchase ensures that the Trans Mountain pipeline, which carries oil from Alberta to the west coast of British Columbia will begin a planned expansion this summer.

According to CBC News, Finance Minister Bill Morneau announced details of the agreement reached with Kinder Morgan at a news conference with Natural Resources Minister Jim Carr this morning.

Morneau said the project is in the national interest, and proceeding with it will preserve jobs, reassure investors and get resources to world markets. He could not say exactly what additional costs will be incurred by the Canadian public to build the expansion, but suggested a toll paid by oil companies could offset some costs and that there would be a financial return on the investment.

The purchase price does not include the construction costs of the Trans Mountain expansion so the final bill to Canadian taxpayers will be significantly higher once labour and materials are included.

Kinder Morgan had estimated the cost of building the expansion would be $7.4 billion, but Morneau insisted that the project will not have a fiscal impact, or “hit.”

Alberta will also provide emergency funding to cover unforeseen costs.

The government does not intend to be a long-term owner, and at the appropriate time, the government will work with investors to transfer the project and related assets to a new owner or owners.

However, Kinder Morgan will be paid regardless of whether a new suitor is found.

Until then, the pipeline project will proceed under the ownership of a Crown corporation.

The agreement, which must still be approved by Kinder Morgan’s shareholders, is expected to close in August.

Kinder Morgan suspends work on Trans Mountain pipeline amid B.C. opposition

A man holds a sign while listening as other protesters opposed to the Kinder Morgan Trans Mountain pipeline extension defy a court order and block an entrance to the company’s property, in Burnaby, B.C., on Saturday April 7, 2018. CP/Darryl Dyck

Kinder Morgan says it is suspending all non-essential activities and related spending on the Trans Mountain pipeline expansion project.

The company says its decision is based on the British Columbia government’s opposition to the project, which has been the focus of sustained protests at its marine terminal in Burnaby, B.C.

Kinder Morgan says it will consult with “various stakeholders” to try and reach an agreement by May 31 that might allow the project to proceed.

The company’s decision will be seen as a blow Prime Minister Justin Trudeau, who has insisted that the pipeline would be built, despite the angry protests and the B.C. government’s continued battle against the project in the courts.

The expansion, which would triple the amount of oil flowing from Alberta to Burnaby, was approved by the federal government in 2016.

Kinder Morgan says it will make a decision about the project’s future based on whether it can get “clarity” on its ability to do construction in B.C. and protect its shareholders.

“As KML has repeatedly stated, we will be judicious in our use of shareholder funds. In keeping with that commitment, we have determined that in the current environment, we will not put KML shareholders at risk on the remaining project spend,” Steve Kean, the company’s chairman and chief executive officer, said in a statement.

“A company cannot resolve differences between governments. While we have succeeded in all legal challenges to date, a company cannot litigate its way to an in-service pipeline amidst jurisdictional differences between governments.”

Kean said the uncertainty around the company’s ability to finish the project “leads us to the conclusion that we should protect the value that KML has, rather than risking billions of dollars on an outcome that is outside of our control.”

About 200 people have been arrested near Kinder Morgan’s marine terminal in Burnaby, B.C., during recent protests.

By: The Canadian Press

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