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State: 'Serious' questions on GOP pipeline bill

Thu Jan 19, 2012 2:03 AM EST
world-news, business, politics, us, barack-obama, oil, state-department, pipeline, oil-pipeline
Matthew Daly, Associated Press
White House Press Secretary Jay Carney blames Congressional Republicans for problems with the Keystone pipeline decision because they inserted a 60-day decision deadline into the bill that extended the tax cut.
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showing 1 of 3 photos
<p>White House Press Secretary Jay Carney speaks during the daily briefing at the White House in Washington, Wednesday, Jan. 18, 2012. (AP Photo/Susan Walsh)</p>

White House Press Secretary Jay Carney speaks during the daily briefing at the White House in Washington, Wednesday, Jan. 18, 2012. (AP Photo/Susan Walsh)

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WASHINGTON — A Republican bill that would strip President Barack Obama of his authority to decide on a Canada-to-Texas oil pipeline raises "serious" legal questions, the State Department said Wednesday in objecting to the bill.

Assistant Secretary of State Kerri-Ann Jones told Congress that the bill "imposes narrow time constraints and creates automatic mandates that prevent an informed decision" on the $7 billion Keystone XL pipeline.

The bill, sponsored by Rep. Lee Terry, R-Neb., would transfer authority over the 1,700-mile pipeline to the Federal Energy Regulatory Commission.

Obama blocked the $7 billion pipeline last week, saying officials did not have enough time to review an alternate route that avoided environmentally sensitive areas of Nebraska.

The plan by Calgary-based TransCanada Corp. would carry tar sands oil from western Canada across Montana, South Dakota, Nebraska, Kansas and Oklahoma en route to refineries on the Texas Gulf Coast.

Jones said Obama's Jan. 18 decision to reject the pipeline was not based on the merits of the project, but on the fact that officials did not have enough time to review the project before a deadline imposed by Congress.

"We fought in World War II in less time than it has taken to decide on this project," shot back Rep. Joe Barton, R-Texas. "In all due respect, it is an insult to the American people to say you need more time."

TransCanada first applied to build the pipeline in 2008, under the Bush administration.

Obama had delayed a decision on the pipeline in November, saying his administration needed time to review an alternate route that avoided environmentally sensitive areas of Nebraska — a route that still has not been proposed. But in an unrelated tax deal he cut with congressional Republicans, Obama had been boxed into making a decision by Feb. 21.

The deal required that the project would go forward unless Obama declared by that date that it was not in the national interest. The president did just that last week.

Republicans said after the president's Jan. 18 announcement that the battle over Keystone was not over.

Terry, the bill's sponsor, said transferring authority for the project to FERC was "simply moving authority to an agency that understands pipelines. This legislation means that Keystone will progress in a timely manner and that our country gets the much-needed jobs and energy security that it will bring."

Jeffrey Wright, director of FERC's Office of Energy Projects, said the agency has no authority or experience in determining where oil pipelines are located. FERC regulates interstate transmission of electricity, natural gas and oil. It also reviews proposals to build liquefied natural gas terminals and interstate natural gas pipelines.

Wright said the GOP bill does not give FERC enough time to adequately assess the Keystone XL project and does not provide clear direction for how the agency would modify the yet-to-be-determined route through Nebraska.

Rep. Henry Waxman of California, the senior Democrat on the House energy panel, called the legislation "an earmark that benefits just one project" and would exempt the pipeline "from every federal and state permitting requirement."

Obama "was right to reject this project until he has all of the necessary information in front of him to make an informed decision," Waxman said. "We should reject this bill and allow the agencies enough time to do their jobs."

Project supporters say U.S. rejection of the pipeline will not stop one from being built. Canadian Prime Minister Stephen Harper has said Canada is serious about building a pipeline to its West Coast, where oil could be shipped to China and other Asian markets.

TransCanada has said it will submit a new application once an alternative route for the pipeline is established. Company chief Russ Girling said a proposed route could be made public in a few weeks.

TransCanada says the pipeline could create as many as 20,000 jobs, a figure opponents say is inflated. A State Department report last summer said the pipeline would create up to 6,000 jobs during construction

The pipeline is a dicey proposition for Obama, who enjoyed strong support from both organized labor and environmentalists in his 2008 campaign for the White House.

Environmental advocates have made it clear that approval of the pipeline would dampen their enthusiasm for Obama in November. Some liberal donors even threatened to cut off funds to Obama's re-election campaign to protest the project, which opponents say would transport "dirty oil" that requires huge amounts of energy to extract and contributes to greenhouse gas emissions blamed for global warming.

By rejecting the pipeline, Obama also risks losing support from organized labor, a key part of the Democratic base, for thwarting thousands of jobs.

__

Matthew Daly can be followed on Twitter: (at)MatthewDalyWDC

© 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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  • Public Discussion (34)
Davy-755715

Plain english translation of the GOPese: "We've got to make as big a stink and get as many miles as possible about this, to divert attention from Romney's 15% Cayman Island/investment tax rate."

  • 9 votes
Reply#1 - Thu Jan 19, 2012 2:26 AM EST
Robert Blevins - AB of Seattle

Obama is RIGHT. We don't need a 1,500 mile pipeline with the potential for disaster. We need to move on to alternative energy sources so we won't HAVE to build expensive pipelines.

Besides, pipelines are soooo five minutes ago. They went out in the 70's. (*laughs*)

Get green and move into the 21st century. It will cost you less, improve the economy, and if the United States ends up becoming the leader in alternative energy sources, then your children and your grandchildrens' future will be assured. Couple that with the US becoming the leader in info tech and entertainment...well, you can see where this is going.

  • 5 votes
#1.1 - Thu Jan 19, 2012 3:10 AM EST
Davy-755715

Maybe so, but to get green, takes a heluva lot of green, especially since none of the alternatives is viable. Meanwhile, the issue is quite handy to keep people from bringing up the hypocrisy of some candidates' tax rates...

  • 1 vote
#1.2 - Thu Jan 19, 2012 3:22 AM EST
my-2-cents

the ones that want to rush this through are the first to start pointing fingers when a disaster occurs.

  • 4 votes
#1.3 - Thu Jan 19, 2012 6:16 AM EST
BostonMan-3128434

Rush it through? It was proposed in 2008 here in the US - 2005 in Canada- That is rushing it through?

Woud you all prefer more Solyndra type green energy projects? Those worked out great didn't they ?

  • 3 votes
#1.4 - Thu Jan 19, 2012 7:42 AM EST
my-2-cents

Yes rushing through, when all the EPA reports have not been completed and giving a deadline to pass it without having all the results back, just because they are money hungry. Of course if there is a disaster, I guess in their eyes it would create even more jobs to clean the mess up, and who would end up flipping the bill? US!

  • 5 votes
#1.5 - Thu Jan 19, 2012 7:49 AM EST
BostonMan-3128434

2008 it was first presented here in the United States - It is now 2012 - How long does it take for these "reports" to be completed exactly?

There have already been two studies dfone about the pipeline - How manyt more millions of dollars do we have to spend on studies?

The EPA said that despite two lengthy reports, the State Department still has not done sufficient analysis of the project's impact on the environment. The letter urged State to conduct a more thorough analysis of oil spill risks and alternative pipeline routes.

http://www.huffingtonpost.com/2011/06/07/epa-keystone-xl-transcanada-state-department_n_872689.html

    #1.6 - Thu Jan 19, 2012 8:22 AM EST
    luckydog

    the ones that want to rush this through are the first to start pointing fingers when a disaster occurs.

    Yeah, just like they now blame the Democrats for the Iraq war because they didn't fight against it hard enough.

    There have already been two studies dfone about the pipeline - How manyt more millions of dollars do we have to spend on studies?

    However many studies it takes is how many it takes. That's why we have an EPA. Since undoubtedly this will involve the taking of peoples land I would think a little caution is in order in spite of the incredible need for expanding outragious oil company profits even further.

    In my view, 6000 temporary jobs is not worth sacrificing the environment for a quick oil fix for China.

    • 5 votes
    #1.7 - Thu Jan 19, 2012 7:50 PM EST
    Robert Blevins - AB of Seattle

    Fact: Eight of the ten largest oilfields on Earth reached peak oil many years ago. Drilling for new oil must be viewed as a temporary assistance to transition. The future is alternative.

    Ford Motor Company, in their 2010 business report, stated that they will no longer fund R and D for any new gas-only models. This should be telling you something.

    Getting OFF the Big Oil Junkie Habit is the only way the US economy will eventually move forward. And as we make this transition from burning fossils to green energy (it will take a while) the price of oil may actually come down temporarily as usage decreases.

    Oil can be utilized for a lot better things than moving cars around. And now the supply is limited. The world is in transition. Whether it survives this transition depends more than you think on energy. Are we to fight to the death over the last scraps of crude that can be pumped from the ground, or do we move on?

    As Hamlet once said, that is the question.

    • 4 votes
    #1.8 - Sat Jan 21, 2012 1:39 AM EST
    Reply
    Monkey99

    Republicans want to press the KXL issue? It's all political. Boehner himself owns stock in the companies the KXL will use to build the damn thing, so he's heavily invested in seeing it built. Think there's any other reason??

    The "jobs" it creates is nowhere near what is claimed. The impact statements have not been done. The argument about the oil being for domestic use is another lie. The whole thing is a boondoggle.

    The test here is the president's resolve to kill the thing. The republican's only interest is political, and for Boehner, to fill his pockets a little more, before he's booted from congress.

    • 7 votes
    Reply#2 - Thu Jan 19, 2012 2:49 AM EST
    John Franklin Mason

    What tussel? What part of "No" Republicans don't understand? The "N" or the "O?" If they want to whine and cry all the way up to the elections I'm sure Boenher can lead the way and show them how it's done eh?

    • 6 votes
    Reply#3 - Thu Jan 19, 2012 2:49 AM EST
    evilgenius

    What tussel? What part of "No" Republicans don't understand? The "N" or the "O?"

    He didn't even say no. He said refile the plans with an alternate route and we'll look at it again.

    • 5 votes
    #3.1 - Thu Jan 19, 2012 8:57 AM EST
    John Franklin Mason

    He didn't even say no. He said refile the plans with an alternate route and we'll look at it again.

    evilgenius

    If you take that for a "yes" what's the issue eh?

      #3.2 - Thu Jan 19, 2012 1:44 PM EST
      Reply
      Samoore4

      Here is some very good information about the Keystone pipeline: http://www.tarsandsaction.org/spread-the-word/key-facts-keystone-xl/

      • 1 vote
      Reply#4 - Thu Jan 19, 2012 3:11 AM EST
      mountainmike-1199289

      Environmentalists note that in December 2010, according to Boehner’s financial disclosure forms, he invested $10,000 to $50,000 each in seven firms that had a stake in Canada’s oil sands, the region that produces the oil the pipeline would transport. The firms include six oil companies — BP, Canadian Natural Resources, Chevron, Conoco Phillips, Devon Energy and Exxon — along with Emerson Electric, which has a contract to provide the digital automation for the first phase of a $9.4 billion Horizon Oil Sands Project in Canada.

      Bill McKibben, a climate activist and co-founder of the group 350.org, wrote in an e-mail that Boehner has received more than $1 million from fossil-fuel companies, “and now we find out that he’s got extensive personal investments in companies dependent on tarsands oil.”

      “He was willing to shut down the government in part to prevent enough time for serious environmental review,” McKibben added. “In any other facet of our public life . . . this whole list taken together would be seen for the gross conflict of interest that it is.”

      As deadline nears, friends and foes of Keystone XL pipeline step up campaigns

      http://www.washingtonpost.com/national/health-science/as-deadline-nears-friends-and-foes-of-keystone-xl-pipeline-step-up-campaigns/2012/01/13/gIQAyd7IzP_print.html

      More than $1 million from big oil? Invested in the companies that would profit from Keystone? That's called pimping yourself out to lobbyists for lots of money and a huge conflict of interest. Boehner is a disgusting SOB. He should be working for the American people but he is working for big oil and his own profits.

      Please note the the Keystone Pipeline is being re routed and they can apply again once again after their environmental impact reports are filed on the new route. It is being re routed due to proximity to water supply to Nebraska and other environmental issues.

      Once again we are hearing Republican misinformation, such as the pipeline would help large numbers of jobs and help America's oil independence. The realistic estimate is 6,000 temporary jobs, most of which would go to Canadians. They already have a pipeline to Midwest refineries. This pipeline is entirely dedicated to transporting oil to Gulf coast refineries to EXPORT to other countries, primarily China.

      When Republicans bring up the energy independence for America talking point IT IS A BOLDFACE LIE. The jobs rationale is a weak argument.

      The corporation that is building the pipeline has a history of poor work. There is an ex government inspector whistle blower in Canada exposing this issue. Then when they were proposing a pipeline in Canada recently, Canadians turned them down primarily due to this issue and the toxicity of shale oil.

      • 5 votes
      Reply#5 - Thu Jan 19, 2012 3:31 AM EST
      luckydog

      Project supporters say U.S. rejection of the pipeline would not stop one from being built. Canadian Prime Minister Stephen Harper has said Canada is serious about building a pipeline to its West Coast, where oil could be shipped to China and other Asian markets.

      So tell us again Mr. Boehner how this will guarantee U.S. energy independence? Looks to me like the big winners will be Canada and China and the loser will be the U.S. environment.

      • 8 votes
      #5.1 - Thu Jan 19, 2012 3:52 AM EST
      Reply
      fronco

      This is just an excuse to exploit the EPA and to build this pipe line without the safety approval of the EPA. these tea party republicans will again use the American people as hostages to make a deal. these republican terrorist won't be happy until they destroy the environment.

      • 6 votes
      Reply#6 - Thu Jan 19, 2012 5:42 AM EST
      McSpocky

      This proposed Keystone XL pipeline does nothing beneficial for our country, and DOES DO HARM to our country. The only reason the GOP is pushing for it is because there are those in the oil industry (including the Koch brothers) who would make money from the deal, and the oil and gas industry support primarily republicans.

      This proposed Keystone XL pipeline would be an environmental disaster waiting to happen. (Another Keystone pipeline has had 12 leaks in one year!)

      In addition, oil from the pipeline would not be for use by the United States. All of the oil from the pipeline would be refined and then shipped to OTHER countries.

      Also, the oil that is now going to the mid-west from Canada would no longer go there. That would cause prices for gasoline in the mid-west to go up an estimated 20 cents per gallon. Diesel fuel for farmers would also go up in price, resulting in higher grocery prices.

      This proposed pipeline is bad for everyone except the pockets of big oil.

      • 12 votes
      Reply#7 - Thu Jan 19, 2012 6:06 AM EST
      fronco

      MCSpocky; great comment and i support every word, because its the truth. but i wish you good luck with these republicans on the Vine, they will take you apart as soon as they wake up.

      • 5 votes
      #7.1 - Thu Jan 19, 2012 9:56 AM EST
      Monkey99

      fronco,

      Wake up? they have to stop watching Fox "news" first, for that to happen.

      • 3 votes
      #7.2 - Thu Jan 19, 2012 2:03 PM EST
      Castor Bridge

      Sorry, but that is seriously goofy. I guess that you would prefer us to continue to buy oil from the middle east.

        #7.3 - Fri Jan 20, 2012 5:23 PM EST
        luckydog

        Sorry, but that is seriously goofy. I guess that you would prefer us to continue to buy oil from the middle east.

        Castor, do you realize that the oil that would run through this pipeline is for export to China and Asia? It doesn't sound like you do.

        • 3 votes
        #7.4 - Fri Jan 20, 2012 5:44 PM EST
        bestquest

        truth is that the mid-west alone can burn up ALL the tar sands production. Appears the Chinese have dibs through their dollar investment. We are building a new refinery just east of the east side of Chicago, about half completed and 2 billion more dollars to go. This is for the tar sands poor quality crude oil.

        We still have big SUV's, dually p.u. trucks, class 8 diesel semi's, the most railroad locomotives found antwhere in the world. And, as mentioned above, the farm tractors, etc. that feeds the world.

        So, I propose ALL the canadian oil comes to chicago. the surplus will be piped to detroit - toronto and to toledo-cleveland-pittsburg.

        We can re-allocate our share of mideast oil to china, japan, korea. The alaska oil presently goes 98% to japan. It would be a diplomatic earthquake if we yanked their oil and their north american car production.

        If we are off middle east oil, who will be the navy over there?

          #7.5 - Fri Jan 20, 2012 8:11 PM EST
          Reply
          kelldon

          Environmentalists are so uninformed, close minded and boring- Same old rethoric, unfounded statement of facts operating on hypothetical situations all the time. This all boiled down to politics and whether BO can get elected again. Everyone acts like a pipeline is something new in the US- There are thousands of pipelines all over the country send gasoline, oil, natural gas to all parts of the country everyday. Gasoline is piped from the gulf coast refineries all the way north to many distribution points. Stop acting like this is the only pipe that was ever built. BO wholes decision is based on his carrier. And what is safer, transporting oil in a controlled pie line or millions of gallons of oil in 30 year old rusty single hulled boats who's spillage record is far higher than any pipe line.

          • 3 votes
          Reply#8 - Thu Jan 19, 2012 6:58 AM EST
          Rick_VT

          There are thousands of pipelines all over the country send gasoline, oil, natural gas to all parts of the country everyday. Gasoline is piped from the gulf coast refineries all the way north to many distribution points.

          Unlike all the other pipelines you cited, this one carries a very toxic sludge containing the oil. Once the oil is processed out, you still have to contend with millions upon millions of gallons of still very toxic sludge in Texas - there is NO plan to return it to Canada. There will be more waste sludge than oil produced. Were you not informed of that aspect?

          • 3 votes
          #8.1 - Thu Jan 19, 2012 10:24 AM EST
          Reply
          Texasguy01

          Where in the Constitution does the President have authority over pipelines?

          • 2 votes
          Reply#9 - Thu Jan 19, 2012 10:12 AM EST
          fronco

          And tell me where does it say in the constitution that Canada and the oil companies have authority to build this pipeline and put all these states in danger.

          • 3 votes
          #9.1 - Thu Jan 19, 2012 10:39 AM EST
          my-2-cents

          There should be something written in stating that if anyone having a financial interest/investment in it should NOT be allowd to vote on it, Hmmmm that would probably knock everyone one pushing for it right out of there.

          • 4 votes
          #9.2 - Thu Jan 19, 2012 10:58 AM EST
          Reply
          AC-4267907

          well heck, look at how much $ the wealthy would make....the usual schemes. Congress sucks!!!

          • 4 votes
          Reply#10 - Thu Jan 19, 2012 12:27 PM EST
          Frisco Kid

          Across the United States, there are about 55,000 miles of crude oil trunk lines that connect to regional markets

          http://teeic.anl.gov/er/transmission/restech/dist/index.cfm

          So adding another 1,100 miles increases our risk of "bad things that happen when you run crude oil pipelines" by 2%

          I am OK with it.

          • 2 votes
          Reply#11 - Thu Jan 19, 2012 5:04 PM EST
          Castor Bridge

          You're trying to use logic and facts. The arguments against the pipeline are based on emotions, not facts. It's a religious belief for them.

          • 1 vote
          #11.1 - Fri Jan 20, 2012 5:26 PM EST
          Reply
          luckydog

          Environmentalists are so uninformed, close minded and boring- Same old rethoric, unfounded statement of facts operating on hypothetical situations all the time. This all boiled down to politics and whether BO can get elected again.

          And of course it has nothing to do with the companies that Boehner has invested in that will benefit from this pipeline. Just pure coincidence I guess.

          • 5 votes
          Reply#12 - Thu Jan 19, 2012 7:59 PM EST
          Sprink71

          Everyone is concerned about the pipeline running across the Ogallala Aquifer. Which is a major concern. It could possibly leach into the ground water. But take into consideration that the route proposed travels across numerous tributaries of the 9th largest inland waterway in the country (Missouri river). Which in turn empties into the largest waterway in the country (Mississippi river). Any leakage in or near one of these would be devistating. They talk about how safe it is and the measures they have in place to respond to any breaks and spills. BP said the same thing.

          • 4 votes
          Reply#13 - Fri Jan 20, 2012 7:17 AM EST
          luckydog

          I can support pipelines if they meet certain conditions such as safety, necessity, minimal harm to the environment, and are they for the greater good of our country or just to meet the need of others without respect to our own citizens who after all have to live with it. When these concerns have been met then I can support a pipeline. So far I see no evidence that this is the case.

          • 2 votes
          Reply#14 - Sat Jan 21, 2012 3:46 AM EST
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