Tag Archives: Pegasus Pipeline

More options for crude export in Canada may help Keystone XL’s case in U.S., consultant says

12 Apr

By Dave Cooper, Edmonton Journal April 9, 2013

EDMONTON – The push for tougher greenhouse-gas rules in Canada and plans for a new crude pipeline to Atlantic Canada may help make the case for the Keystone XL pipeline, says a Washington-based energy consultant.

In a research note, Robert Johnston of the Eurasia Group, said he expects approval of the northern leg of the Keystone XL between Alberta and Nebraska by late summer, despite the recent spill of Alberta heavy crude in Arkansas, which has been highlighted by critics of the proposed Keystone line.

Johnston said the bitumen spill on the ExxonMobil Pegasus pipeline “created significant headline risk and could generate further delays” for U.S. federal approval. But this is balanced by recent proposals for stricter greenhouse-gas emission rules in Canada which are being pushed by the Alberta government, and further progress on TransCanada’s proposed “Energy East” pipeline which will deliver oilsands output to Atlantic Canada.

Johnston noted the Arkansas spill “has driven a strong response by the environmental community in Washington, which is virtually united in opposing Keystone XL.” He adds the spill “is being used to re-engage the administration following public comments by President (Barack) Obama in San Francisco last week that were interpreted as more favourable for Keystone XL approval.”

Johnston notes the Keystone will have a number of new “smart” systems to detect and respond to leaks, and will be built with better materials than those used in the 60-year-old Pegasus pipeline.

And the push for an eastern outlet, with TransCanada’s plans to convert one of its underused natural gas pipelines to carry crude and extend the line from Montreal to Saint John, N.B., with its large Irving refinery, has shown there is another option to Keystone XL.

That, in combination with Enbridge’s plans to reverse its existing line to Montreal so western light crude can reach the Suncor refinery there, will weaken the environmentalists’ argument that stopping Keystone will halt oilsands development.

“The Keystone XL alternatives are crucial as they underpin the argument that the GHG (greenhouse gas) impact of KXL itself will be neutral, as the oilsands will be produced and brought to market with or without the KXL project,” said Johnston.

However, using rail or the TransCanada line to the east are still not the best choices for many producers, since those options will be more expensive than using the Keystone line.

Eurasia notes the 45-day comment period on the draft of the U.S. environmental impact statement is set to expire on April 22 unless it is extended. If it expires, it will take an additional one to two months to prepare the final statement, which would then have to undergo an inter-agency review of up to 90 days.

“Sources contacted by Eurasia Group are divided over whether the White House would use most or all of that time. On balance, while approval remains highly likely, timing now looks more likely to be late summer versus late spring,” said the report.

Republished from the Edmonton Journal: http://www.edmontonjournal.com/business/energy-resources/More+options+crude+export+Canada+help/8218564/story.html

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Did the Exxon Spill in Mayflower Just Sink Keystone XL?

6 Apr

Jamie Henn – April 4, 2013

If President Obama rejects the permit for the Keystone XL pipeline, Big Oil executives are likely to look back at last weekend’s tar sands spill in Mayflower, Arkansas as a key reason for their defeat.

In a rational world, President Obama would have rejected the Keystone XL pipeline long ago. The nation’s top climate scientists have declared it an environmental disaster, over 800,000 Americans have written the Senate and State Department opposing the project, more than 40,000 recently descended on Washington, DC to push for a rejection. Time Magazine has called Keystone XL the “Selma and Stonewall” of the environmental movement for good reason: more people have gone to jail and rallied in the streets over the pipeline than any other environmental issue in the last decade.

But it’s the images of tar sands oil submerging backyards, flowing down driveways, and contaminating entire streets of the Mayflower subdivision that may finally dramatize all the risks that come with Keystone XL. The ExxonMobil Pegasus pipeline that ruptured in Mayflower carried about 90,000 barrels of tar sands a day, about 1/10th of tar sands that would flow through Keystone XL. Take the Mayflower spill, times it by ten, and superimpose it over one of our largest sources of fresh drinking water, the Ogallala Aquifer, and you’ll begin to get an idea of what a spill from Keystone XL would look like: a BP style disaster on land.

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It was pictures like those coming out of Mayflower that helped fuel the last great surge of environmental activism in the late 1960s that led to the first Earth Day and the passage of the Clean Water Act and the Clean Air Act and the creation of the Environmental Protection Agency. Then, it was the Cuyahoga River catching on fire, the massive oil spill off of Santa Barbara, and other local disasters that brought the “pollution crisis” to public consciousness. Now, it’s pictures of climate catastrophes like last summer’s massive wildfires in Colorado or the devastation caused by Hurricane Sandy, and videos of fossil fuel disasters like the Mayflower spill or last year’s tar sands spill in Kalamazoo River, that are causing people to connect the dots between the new extreme energy rush and the ever worsening climate crisis.

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This April 18, the State Department will host its one public comment hearing in Nebraska on the latest supplemental environmental impact statement for the Keystone XL pipeline, a review that was widely criticized by environmental groups and experts as seriously flawed and inadequate. 350.org is working with our allies to submit over 1,000,000 public comments and our friends at BOLD Nebraska are helping organize hundreds of farmers, ranchers, and landowners who will testify in person. Their words (and yours if you submit a comment) will make a difference – the State Department is required by law to count and review every comment submitted. But perhaps it’s the images out of places like Mayflower that will speak louder than all those words.

We’ve been given just a small glimpse of what our fossil fuel addicted future could look like: more spills, more climate disasters, more communities put at risk for industry profits. It’s a future that we, and President Obama, can and should reject. It doesn’t have to be this way. After all, as our friend Van Jones says, “You know what they call a solar spill? A sunny day.”

Republished from the Huffington Post: http://www.huffingtonpost.com/jamie-henn/mayflower-oil-spill_b_3016242.html

Ducks Near Arkansas Oil Spill Found Dead After ExxonMobil Pipeline Rupture

2 Apr

Jeannie Nuss – April 1, 2013

Ducks Arkansas Oil Spill

A worker cleans up oil in Mayflower, Ark., on Monday, April 1, 2013, days after a pipeline ruptured and spewed oil over lawns and roadways. (AP Photo/Jeannie Nuss)

 

MAYFLOWER, Ark. (AP) — The environmental impacts of an oil spill in central Arkansas began to come into focus Monday as officials said a couple of dead ducks and 10 live oily birds were found after an ExxonMobil pipeline ruptured last week.

“I’m an animal lover, a wildlife lover, as probably most of the people here are,” Faulkner County Judge Allen Dodson told reporters. “We don’t like to see that. No one does.”

Officials are urging people in Mayflower, a small city about 20 miles northwest of Little Rock, not to touch any injured or oiled animals as crews clean up Friday’s spill.

About 12,000 barrels of oil and water have been recovered since ExxonMobil’s Pegasus pipeline sprung a leak, spewing oil onto lawns and roadways and nearly fouling a nearby lake.

Dodson said he expects a few more oily birds to turn up in the coming days.

“I don’t expect a great number of them,” he said. “I’ll be thoroughly disappointed if there are.”

Investigators are still working to determine what caused the spill, which led authorities to evacuate nearly two dozen homes in a subdivision.

It’s not clear when residents will be able to return to their homes, but Dodson said it could be within days for some people.

“Our focus is to protect the community,” said Karen Tyrone, vice president of operations for ExxonMobil Pipeline Co. “We have air monitoring going on seven days a week, 24 hours a day … and to date, we have no indication that there’s a health impact on the community.”

Still, the air smells like oil, and area residents say it has for days.

“We live five miles out in the country and we’ve had the smell out there,” Karen Lewis, 54, said outside a local grocery store. Its parking lot, like much of this small city, is teeming with cleanup crews and their trucks.

Meanwhile, in the neighborhood where the pipeline burst, workers in yellow suits waded in an oil-soaked lawn Monday as they tried to clean up part of the area where the spill began.

The pipeline that ruptured dates back to the 1940s, according to ExxonMobil, and is part of the Pegasus pipeline that carries crude oil from the Midwest to refineries in the Gulf of Mexico.

Exxon spokesman Charlie Engelmann said the oil is conventionally produced Canadian heavy crude.

“Crude oil is crude oil,” Dodson said. “None of it is real good to touch.”

Republished from the Huffington Post: http://www.huffingtonpost.com/2013/04/02/ducks-arkansas-oil-spill_n_2994795.html