Montreal Gazette

KEYSTONE REPORT UNCRITICAL

A U.S. government study raises no significan­t concerns about the proposed Keystone pipeline. That essentiall­y gives President Obama what he needs to OK the project.

- WILLIAM MARSDEN and JASON FEKETE

WASHINGTON — A critical U.S. government environmen­tal study states that the controvers­ial Keystone XL pipeline will have no significan­t environmen­tal or climate-change impact, essentiall­y giving President Barack Obama the justificat­ion he needs to approve the project.

The only apparent significan­t concern raised in the final environmen­tal impact study (EIS) is the potential for pipeline spills contaminat­ing undergroun­d water resources. It states, however, that spills “are expected to be rare and relatively small.”

The study also states that the greenhouse gas emissions from the pipeline operations “are deemed minimal relative to the proposed project.”

The study confirmed that the oilsands produce more greenhouse gases — about 17 per cent — than the average U.S. oil production.

While extensivel­y analytical, the study does not come to any definitive conclusion­s about the overall effect of the pipeline on climate change or U.S. environmen­tal policy leaving enough leeway for each side of this contentiou­s issue to claim victory.

Nor does it offer any conclusive opinion on the assumption that the pipeline will increase the developmen­t of the oilsands and thereby increase greenhouse gas emissions.

While it compares the pipeline with rail carriers, it makes no determinat­ion on which is safer.

Kerri Ann Jones, the assistant secretary overseeing the Keystone XL applicatio­n, said U.S. Secretary of State John Kerry will assess the report in relation to a wide range of issues, including the state of oil markets, overall U.S. policy on climate change and foreign relations.

“Basically this document has a tremendous amount of analysis,” she said. “But it is only a part of what we have to look at to make this decision.”

Joe Oliver, Canada’s natural resources minister, said the State Department report “confirmed that Keystone XL would not have a significan­t environmen­tal impact … including no appreciabl­e impact on greenhouse gases.”

Oliver told reporters the EIS has made him “more confident” Obama will approve the Keystone XL.

Alberta Premier Alison Redford said the report reflects Alberta’s submission­s to Washington lawmakers and is an “important step toward approval of a pipeline.”

Russ Girling, president and CEO of Keystone owner TransCanad­a, said the report shows that the pipeline will have a “minimal impact” on the environmen­t and won’t impact climate change.

The study shows no increase in GHG emissions from oilsands because “oilsands are going to expand anyway,” he said in a conference call. He added that pipeline’s capacity is already “sold out.”

Environmen­tal groups, however, took an entirely different view of the report’s analysis.

Bill McKibben, founder of the climate-change activist group 350.org, said the Keystone XL project is the first environmen­tal issue that has brought a large number of Americans into the streets in many years, and he believes the report bolsters the argument to reject the project.

“This report gives President Obama everything he needs in order to block this project,” McKibben said. “It makes it clear that it will contribute, under any scenario where we take climate change ser-

“This report gives President Obama everything he needs ... to block this project.”

BILL MCKIBBEN, ENVIRONMEN­TAL ACTIVIST

iously, it will contribute significan­tly to climate change.

“This is the gut-check moment, and the State Department, though it has been biased and corrupt throughout this process, has had to concede a certain amount to reality today.”

Susan Casey-Lefkowitz with the Natural Resources Defense Council in the U.S. said the report “confirms that tarsands crude means a dirtier, more dangerous future for our children. The bottom line is the tarsands pipeline fails the president’s climate test.”

The Environmen­tal Defense Fund, also in the U.S., issued a statement claiming the State Department EIS has concluded the pipeline will lead to “more tarsands developmen­t, more pollution and more dangerous climate change.”

“Since the beginning of the as- sessment, the oil industry has had a direct pipeline into the agency,” Friends of the Earth president Erich Pica said in a statement. “Perhaps most frustratin­g, is the apparent collusion between the State Department, oil industry and the Canadian government.”

Pica added that the release of the report before issues of conflict of interest are settled shows an “eagerness to please the oil industry and Canadian government.”

“The State Department is issuing this report amid an ongoing investigat­ion into conflicts of interest, and lying, by its contractor,” he said.

However, Jones, the assistant secretary of state, said, “We feel confident that there are no issues (of conflict) related to this contractor.”

The Keystone XL’s annual emissions would be equivalent to the emissions produced by 300,000 passenger vehicles, 72,000 homes or 0.4 coal-fired power plants, the study says.

It also says emissions produced by the maximum 830,000 barrels of bitumen from the oilsands plus crude oil from the Bakken fields in South Dakota carried daily by the pipeline will produce emissions equivalent to those produced annually by up to 5.7 million passenger cars or 7.8 coal-fired power plants.

U.S. State Department deputy spokeswoma­n Marie Harf emphasized that the EIS is “not a decision. It is another step in the process.”

She said, however, that it marks the beginning of the involvemen­t of Kerry, who will use the EIS report in making his decision on Keystone XL. Kerry’s recommenda­tion will be taken to Obama, who will make the final decision. There is no deadline for these decisions.

“I stress that this is only one factor in a determinat­ion that will weigh many other factors as well,” she said of the EIS. “And for Secretary Kerry, climate and environmen­tal priorities will of course be part of his decision-making, as will a range of other issues.”

She said eight government agencies have up to 90 days from Feb. 5 to reply to the study. The general public, however, has only 30 days because it already had a chance to reply to the preliminar­y impact study released last year.

The report states that the cost of pipeline constructi­on would total about $3.1 billion US, with another $233 million spent on constructi­on camps. Constructi­on would create about 42,000 jobs across the U.S., of which 16,100 are direct jobs to firms awarded contracts for goods and services. About 3,900 would be direct constructi­on jobs.

 ?? ASSOCIATED PRESS FILES ?? Crews work on TransCanad­a’s Keystone XL pipeline near Winona, Texas, in 2012.
ASSOCIATED PRESS FILES Crews work on TransCanad­a’s Keystone XL pipeline near Winona, Texas, in 2012.

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