API Spent $22 Million Lobbying for Keystone XL; State Dept Contractor ERM an API Member

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In President Barack Obama’s Climate Action Plan address, he stated thatย TransCanada’s Keystone XL tar sands pipelineย would only receive State Department approval โ€œif this project does not significantly exacerbate the problem of carbonย pollution.โ€ย 

As it stands, that means Keystone XL – which if built to full capacity would pipeย diluted bitumen, or โ€œdilbitโ€ย from the Alberta tar sands down to Port Arthur, TX refineries for shipment to the global export market – may likely receive Obama’sย approval.

That’s because Obama’s State Dept. – assigned to make a final decision on KXL because it crosses the international border – contracted its Draft Supplemental Environmental Impact Study (SEIS) out to Environmental Resources Management, Inc. (ERM Group).

ERM Group isย a dues-paying member of the American Petroleum Institute (API), asย isย TransCanada.

The SEIS concluded KXL‘s โ€œapproval or denialโ€ – misleading because its southern half is already 75-percent complete via an Obama March 2012 Executive Order – โ€œis unlikely to have a substantial impact on the rate of developmentโ€ of the tar sands. Therefore, it will also have little impact on climate change, according to ERM‘s SEIS.ย 

It’s important to remember that ERM was chosen onย behalf of State by TransCanada itself. Futher, one of the ERM employees tasked to conduct the SEIS, as exposed in aย Mother Jonesย investigation, is aย former TransCanadaย employee.

A DeSmogย investigation also reveals that API hasย spent $22.03 million dollars lobbying at the federal level on Keystone XLย and/or tar sandsย issues since the pipeline wasย initially proposed in June 2008. Further, some of those oil lobbyists have direct ties to both President Barack Obama and U.S. Secretary of State John Kerry, the two men who have the final say on KXL.ย 

API Keystone XL Lobbyists Ties to Obama andย Kerry

One of the lobbyists helping in the API Keystone XL lobbying effort was Marty Durbin, the nephew of U.S. Sen. Dick Durbin (D-IL). Sen. Durbin was President Obama’s former U.S. Senate colleague from Illinois before Obama won the presidency inย 2008.

Initially hired by API to fend off proposed congressional climate change legislation in 2009, Marty Durbin was named President and CEO of America’s Natural Gas Alliance (ANGA)ย inย March 2013, the industry lobbying powerhouse onย hydraulic fracturing (โ€œfrackingโ€)ย matters.ย 

API hired Ogilvy Government Relations to lobby for KXL in 2012, as well.ย One of Ogilvy’s key hired guns lobbying on behalf of API and KXL is Moses Mercado.

Mercado served as a key aide to Obama’s 2008 presidential campaign, as well asย aย super-delegate representing Texasย for the 2008 Democratic National Convention.ย He also served as campaign director in New Mexicoย for U.S. Sec. of State John Kerry’s 2004 presidentialย campaign.ย 

ย 

Photo Credit: Wikimediaย Commons

โ€œThe waves are being generated by Mercado’s other line of work โ€“ as a lobbyist with Ogilvy Government Relations who is registered to represent several dozen big-name clients, including the National Rifle Association, the Carlyle Group, the Blackstone Group, Monsanto, Pfizer Inc., United Health Group, Sempra Energy and Constellation Energy,โ€ a Sept. 2007ย Washington Post article explained about Mercado joining the Obama campaign teamย (emphasisย mine).

Obama’sย national political director for his 2008 presidential campaign, Matthew Nugen, now also works at Ogilvy. He took the job less than a week after Obama’sย Jan. 2009ย inauguration.

Lobbying Coupled with a Dose of PR andย Astroturfย 

Above and beyond lobbying, API has also devoted much time, money and effort on pro-Keystone XL public relations.ย Its most recent ongoing campaign is called Oil Sands Fact Checkย (OSFC).ย 

As explained byย the Houston Chronicle, OSFC was created as a tar sands parallel to Energy in Depth (EID), another industry-created front groupย to promoteย fracking:

[OSFC] is borrowing a page from Energy In Depthโ€™s playbook, with regular โ€œissue alertsโ€ to reporters and others, and plans for touting the message via Facebook, Twitter and other social media. To lure in critics as well as supporters, the group has ads that appear on Google when users search for โ€œtar sandsโ€ โ€“ a synonym often used derisively โ€“ and other relatedย terms.ย 

Before OSFC‘s creation, API ran an astroturf campaign called Vote 4 Energy run by Edelman Public Relations.ย ย 

โ€œTheyโ€™re using deception to talk to Americans about the oil and gas industry,โ€ said Gabe Elsner of the Checks and Balances Project at the time, who auditioned to appear in one of API‘s commercials. โ€œThese multi-million dollar campaigns are clearly being crafted to give the appearance that itโ€™s ordinary people talking. What we experienced was that it was well scripted and totally set up to be the perfectย commercial.โ€

API also created an astroturf group calledย Energy Citizens during the climate change legislative battle inย 2009.

โ€œThe objective of these rallies is to put a human face on the impacts of unsound energy policy and to aim a loud message at those statesโ€™ U.S. Senators to avoid the mistakes embodied in the House climate bill and the Obama Administrationโ€™s tax increases on our industry,โ€ wrote API head Jack Gerard in a memo obtained by Greenpeace USAย explaning the rationale behind the campaign to API members. โ€œWe are asking all API members to assist in theseโ€ฆactivities. The size of the company does not matter, and every participant adds to the strength of our collectiveย voice.โ€

Can State Dept./ERM SEIS Beย Trusted?

With a history of rubber-stamping ecologically-hazardous projects, it should surprise no one that the southern half of KXL already has dents and poorly-welded metal recently replaced by contractor Michels Corporation. An ominous sign for KXL‘s future, to say the least.ย ย 

Photo Courtesy of BOLD Nebraskaย 

โ€œItโ€™s clear that, devoid of factually-based energy and climate arguments, API needs to spend vast sums on lobbyists and campaign contributions to secure the access it needs to political power,โ€ Tyson Slocum, Director ofย Public Citizen‘s Energy Program toldย DeSmogย in anย interview.

Friends of the Earth-USย Senior Campaigner Ross Hammondย echoed Slocum in an interview withย DeSmog.

โ€œIt’s no wonder that API and its members continue to tout the ERM report as ‘proof’ that Keystone will make a minimal contribution to climate change despite the fact that the EPA and top scientists all take the opposite view.ย The fact that ERM is a paid member of API should have disqualified it from writing the Draft SEIS,โ€ said Hammond.ย 

Photo Credit: ShutterStock |ย Jamesย Steidl

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Steve Horn is the owner of the consultancy Horn Communications & Research Services, which provides public relations, content writing, and investigative research work products to a wide range of nonprofit and for-profit clients across the world. He is an investigative reporter on the climate beat for over a decade and former Research Fellow for DeSmog.

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