Millions spent on Keystone lobbying
Almost 50 groups have stepped up their Washington spending as the proposed Keystone XL oil pipeline proves to be a bonanza for lobbyists.
The American Petroleum Institute, a Washington-based oil industry trade group, increased its lobbying spending on all issues, including Keystone, to $2.1 million in the first three months of the year, from $1.8 million during the same period a year earlier, Senate records show.
It is among 48 groups that disclosed in filings last week that they were lobbying on Calgary-based TransCanada Corp.’s proposed $5.3 billion pipeline, which would bring oilsands bitumen to the U.S. Gulf Coast. Others include the governments of Alberta and Canada, construction equipment manufacturers such as Deere & Co., labour unions such as the Laborers International Union of North America, and environmental groups such as the League of Conservation Voters.
“Because it’s such a highprofile issue and it has such symbolism, it’s become a fullemployment program for K Street,” said Bill Allison, editorial director at the Sunlight Foundation, a Washingtonbased watchdog. Many lobbyists have offices on K Street in the District of Columbia.
The Alberta government hired two firms in March, Mehlman Vogel Castagnetti Inc. and Rasky Baerlein Strategic Communications Inc., to promote Keystone, according to Justice Department filings. Bruce Mehlman is a veteran of President George W. Bush’s administration; Alex Vogel formerly worked for then-Senate Majority Leader Bill Frist, a Tennessee Republican; and David Castagnetti was the congressional liaison for current Secretary of State John Kerry’s 2004 presidential campaign.
Rasky Baerlein’s chairman is Larry Rasky, who served as a spokesman for Vice-president Joe Biden’s two presidential campaigns. An associate vice-president, Ron Eckstein, formerly wrote speeches for Nevada Democratic Senator Harry Reid, the current majority leader.
Alberta Premier Alison Redford has made four trips to Washington to lobby on Keystone. Saskatchewan Premier Brad Wall has also visited. The Canadian government is also lobbying, though its efforts have been hindered by a labour dispute involving its diplomats.
All but two of the groups — the League of Conservation Voters and Greenpeace — appear to be in support of the pipeline. That includes ExxonMobil Corp., Royal Dutch Shell PLC and Valero Energy Corp., which all registered as lobbying on the issue, according to the disclosure reports. They all own refineries on the Gulf Coast that could benefit from Keystone, according to Oil Change International, a Washington-based advocacy group that opposes the pipeline.
Some of the top lobbying firms in the U.S. are involved. Akin Gump Strauss Hauer & Feld LLP counts Shell among its clients. Podesta Group Inc. lobbies for BP PLC. The BGR Group lobbies for Chevron Corp.
“The vast array of lobbyists engaged on Keystone owes partly to the immense geographic and policy-topic spread of the pipeline,” said Rogan Kersh, a lobbying expert and provost of Wake Forest University. “Many interest groups can’t afford to let a major issue like this go by without putting their oar in.”
The pipeline “runs across a large swath of the U.S., and it engages constituents from both private and public-advocacy sectors: engineering, construction, environmental, wildlife, energy, transportation, and many others,” Kersh said.
In addition, the president’s inaugural committee received millions of dollars in contributions from corporations and unions lobbying on Keystone, Federal Election Commission filings show. Chevron gave $1 million while ExxonMobil contributed $250,000. Four unions donated a total of $1.1 million: the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry, the International Brotherhood of Teamsters, the International Brotherhood of Electrical Workers and the labourers. Other advocates that have registered to lobby for the pipeline include the American Jewish Committee.
Obama sided with Nebraska’s Republican governor, David Heineman, and initially rejected the pipeline because its original route took it through the state’s Sand Hills region, a national natural landmark. TransCanada shifted the route and filed a new application for approval. A decision is expected by year’s end.