Gulf Stream: Williams Suspends Bluegrass Gas Export Pipeline, Announces New Export Line

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Right before the champagne bottles began popping for activists engaged in a grassroots struggle to halt the constructionย of Williams Companies‘ prospective Bluegrass Pipeline project โ€” whichย the company suspended indefinitely in an April 28 press releaseย โ€” Williams had already begun raining on theย parade.

The pipeline industry giant took out the trashย on Friday, April 25,ย announcing its intentions to open a new Louisiana pipeline named Gulf Trace.

Akin toย TransCanada’s ANR Pipeline recently reported on by DeSmogBlog, Gulf Trace is not entirely โ€œnew,โ€ per se.ย Rather, it’s the retooling of a pipeline system already in place, in this caseย Williams’ Transco Pipeline system.ย 

The retooling has taken place inย the aftermath of Cheniere’s Sabine Pass LNG export facility receiving the first ever final gas export permit from the U.S. Federal Energy Regulatory Commission (FERC) during the frackingย era.

Williams’ Transco Pipeline System; Photo Credit: Williamย Huston

Both ANR and Gulf Trace will feed into Sabine Pass, the Louisiana-based LNG export terminal set to open for business in late 2015.ย Also like ANR, Transco will transform into a gas pipeline flowing in both directions, โ€œbidirectionalโ€ in industryย lingo.

Bluegrass, if ever built, also would transport fracked gas to the Gulf Coast export markets. But instead of LNG, Bluegrass is a natural gas liquids pipeline (NGL).ย 

โ€œThe projectโ€ฆis designed to connect [NGLs] produced in the Marcellus-Utica areas in the U.S. Northeast with domestic and export markets in the U.S. Gulf Coast,โ€ it explained in an April 28 press release announcing the project’sย suspension.ย 

With Bluegrass tossed to the side for now, Williams already announced in a press release that the company has launched an open season to examine industry interest in Gulf Trace. Itย closes on May 8, 2014.

โ€œAlthough we recognized the suspension of the Bluegrass could impact non-conventional drilling here in Western Pennsylvania, we should all know better than to get too excited about this announcement,โ€ Carrie Hahn, a Pennsylvania-based activist told DeSmogBlog. โ€œThere is too much at stake here for them to give up thatย easily.โ€

The announcement follows in the aftermath of the flurry of federal-level lobbying activity by Williams during the first quarter ofย 2014.ย 

Williams Spends Big Lobbying forย Exports

First-quarter lobbying disclosure forms indicate Williams spent $450,000 lobbying at the federal level for both shale gas exports and pipeline permitting issues. It has done so utilizing both its in-house lobbyists and outside lobbyingย firms.

In-Houseย Lobbyistsย 

In-house, Williams spent $410,000 on its own to advocate for gas exports and pipeline permitting issuesย during the first quarter. Williams’ lobbying efforts were headed by its vice president for governmental affairs, Deborah Lawrence and director of governmental affairs, Glenn Jackson.

Outside Lobbyingย Firms

No smart corporation makes a big announcement of this sort without first greasing the skids and Williams is no different in that regard, utilizing the age-oldย government-industry revolving doorย to curryย favor.

In that vein, meetย Ryan, MacKinnon, Vasapoli and Berzok, LLP, which Williams paidย $40,000 to lobby on its behalf during the first quarter.

Lobbyist Thomas Ryanย formerly served as chief counsel for theย U.S. House Energy & Commerce Committee. That committee hasย pushed forward shale gas exports in a big way so far in 2014.ย Ryan is one of the lobbyists listed on the firm’s first-quarter disclosure form on the Williamsย file.

Jeffrey MacKinnon, another lobbyist listed on the firm’s lobbying disclosure form,ย also has close ties to the Energy & Commerce Committee. MacKinnon formerly served as legislative director for U.S. Rep. Joe Barton (R-TX), the climate change denierย and former chairmanย of theย Energy & Commerceย Committee.


U.S. Rep. Joe Barton: Photo Credit: Wikimediaย Commons

Add Joseph Vasapoli to the list, asย well.ย 

Vasapoli, who helped write the Energy Policy Act of 2005 that transformed fracking into a widespread practice in the U.S., formerly served asย Republican Counsel for the Energy & Commerce Committee. He also has spent time working at both FERC and the U.S. Department of Energy (DOE), the two federal agencies responsible for overseeing the LNG export permitย process.

The other three lobbyists listed onย Ryan, MacKinnon, Vasapoli and Berzok, LLP‘s disclosure form for the work it did on behalf of Williams โ€” Matthewย Berzok, Nickย Kolovosย and Jeffrey Mortierย โ€” also passed through the revolving door as former staffers for congressional members who were on the Energy & Commerceย Committee.

โ€œEmpire State of Mind:โ€ New Yorkย Connection

Burgos and Associates, also registered to lobby on behalf of Williams at the federal level, is a New York City-based firm at the center of a February 2013 investigation published on DeSmogBlog on the New York Fracking Scandal.

The episode earned the unflattering name because New York Governor Andrew Cuomo,ย who has the final say over whether the floodgates will be opened for fracking the Marcellus Shale in his state, has a powerful aide named Larryย Schwartz.

Schwartz, DeSmog revealed, has thousands of dollars worth of investments in Williams Companies and other companies standing to gain if fracking goes forward in Newย York.

And in New York, like at the federal level, Burgos and Associates lobbies on behalf of Williams.

Not coincidentally, the powerful Tonio Burgos owns Burgos and Associates and is theย former aide to Andrew Cuomo’s father, Gov. Mario Cuomo.

Burgos was described by the Chicago Tribune in a 1993 article as Mario Cuomo’s โ€œpatronage chief.โ€ He was also identified in 2012 by The Wall Street Journal as โ€œone of [Andrew] Cuomo’s closest outside advisers and top fund-raisers.โ€

A reminder: Williams’ Transco runs from New York and the northeast down to theย Gulf.

Transco is connected to fracked gas produced in Marcellus Shale via the company’sย Springville Pipeline and its proposed Constitutionย Pipeline, which isย set to connect to Springville when if and when it opens for business in 2015 orย 2016.

Williams’ Constiution Pipeline and Springville Pipeline; Photo Credit: Williamย Huston

In short, New Yorkย โ€” a state geographically distant from Louisiana, Gulf Trace and Sabine Pass LNG โ€”is directly connected to Williams’ latest export pipeline announcement both via its lobbyists and Williams’ gas pipelineย empire.

And so while fracking has yet to commence in the Empire State, that doesn’t mean the shale gas industry doesn’t have an increasingly heavy footprint there, as it proceeds with business as usual by using an โ€œempire state of mind.โ€ย 

Photo Credit: Shutterstock |ย Oleksandrย Kalinichenko

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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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