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| Image of Site 5 defect from TransCanada's report, page 22 (photo courtesy of Julie Dermansky) |
what eye thynk: This excellent report begins with the South Dakota Public Utilities Commission catching Keystone trying to hide evidence and discounting the seriousness of problems with the already existing section of the pipeline.
Then they expose a startling discrepancy between the taxes TransCanada said they would pay to communities affected by the pipeline and what they actually paid.
"Holes too big to fix were poked in TransCanada's narrative that its Keystone XL tar sands pipeline will be the safest pipeline ever built. And questions were raised about how the pipeline company's financial dealings are set up during the Public Utilities Commission hearings in Pierre, South Dakota last week where state regulators are tasked to decide if the company is capable of following the rules the state set when the original Keystone pipeline permit was grantedi n 2010...
...TransCanada's promises to build safe pipelines have been called into question with several high-profile incidents involving its existing pipelines, particularly the corrosion problems with the Keystone 1 pipeline.
A TransCanada 'root cause analysis' document...shed troubling light on the external corrosion encountered on the Keystone 1."
'Root Cause Analysis' Document Creates Headaches, Questions for TransCanada
"When (Keystone Pipeline Projects president Corey) Goulet was questioned about the significant corrosion discovered on the Keystone 1 pipeline in Missouri in 2012--when the pipeline's wall had corroded in one spot to the thickness of a dime--he downplayed the incident.
Bruce Ellison, one of the lawyers for the interveners, (presented a document showing another defect) involved a section of pipe where the wall had eroded 96.8 percent, which Ellison noted was close to a rupture incident.
TransCanada lawyers objected to any reference to the report because Goulet claimed he had never seen it and that it was classified."...
"...In the course of discovery, TransCanada provided the report in question as part of the unclassified documents, and therefore could not exclude the report from evidence, the Commission said...
...Goulet admitted he knew the location of sites where the pipeline had been dug up for inspection and repair.
As indicated in the 'root cause' report, Site 5 was only 200 feet from the Mississippi River, a primary drinking water source for 18 million Americans, as well as agricultural water for crop production."
"Goulet testified that the considerably lower amount of taxes TransCanada paid was less than had been estimated before construction--although the tax rate has since increased...
...While TransCanada estimated that Keystone 1 would deliver at least $45 million in tax revenue to communities, Goulet admitted that the company has only paid $18.4 million over the first 5 years. That's roughly a third of what TransCanada had estimated as the benefit it would deliver in tax revenue to affected communities."
However, if the South Dakota Public Utility Commission decides TransCanada isn't up to the job, TransCanada will have to start the entire re-permitting process again."
...TransCanada's promises to build safe pipelines have been called into question with several high-profile incidents involving its existing pipelines, particularly the corrosion problems with the Keystone 1 pipeline.
A TransCanada 'root cause analysis' document...shed troubling light on the external corrosion encountered on the Keystone 1."
'Root Cause Analysis' Document Creates Headaches, Questions for TransCanada
"When (Keystone Pipeline Projects president Corey) Goulet was questioned about the significant corrosion discovered on the Keystone 1 pipeline in Missouri in 2012--when the pipeline's wall had corroded in one spot to the thickness of a dime--he downplayed the incident.
Bruce Ellison, one of the lawyers for the interveners, (presented a document showing another defect) involved a section of pipe where the wall had eroded 96.8 percent, which Ellison noted was close to a rupture incident.
TransCanada lawyers objected to any reference to the report because Goulet claimed he had never seen it and that it was classified."...
Classified? Is that TransCanada-speak for no one is supposed to know the extent of the corrosion while they cross their fingers and hope the pipeline doesn't break?
"...In the course of discovery, TransCanada provided the report in question as part of the unclassified documents, and therefore could not exclude the report from evidence, the Commission said...
...Goulet admitted he knew the location of sites where the pipeline had been dug up for inspection and repair.
As indicated in the 'root cause' report, Site 5 was only 200 feet from the Mississippi River, a primary drinking water source for 18 million Americans, as well as agricultural water for crop production."
There is no such thing as a "safe" oil pipeline. When you have thousands of miles of pipeline, a disastrous leak is inevitable. And when the pipeline's lawyers try to hide evidence of serious problems and a pipeline president lies about it, it just proves that point.
If Canada wants another pipeline, let them build it through Canada.TransCanada's Tax Revenue Calculations Off by a Lot
"Goulet testified that the considerably lower amount of taxes TransCanada paid was less than had been estimated before construction--although the tax rate has since increased...
...While TransCanada estimated that Keystone 1 would deliver at least $45 million in tax revenue to communities, Goulet admitted that the company has only paid $18.4 million over the first 5 years. That's roughly a third of what TransCanada had estimated as the benefit it would deliver in tax revenue to affected communities."
In the afternoon, David Diakow, a TransCanada vice-president was asked if company customers demanding changes to their contracts. Lawyers for TransCanada objected to the questions; however, the commission ruled that they had opened Mr. Diakow to examination by virtue of the fact they had placed his written statement into the record. TransCanada then withdrew Mr. Diakow from their witness list and asked to have his written testimony removed from the record.
One can't help but wonder what else they are trying to hide."Even if President Obama denies the permit for the pipeline to cross international borders, the next administration could reverse that decision.
However, if the South Dakota Public Utility Commission decides TransCanada isn't up to the job, TransCanada will have to start the entire re-permitting process again."
I'm pulling for a "No" decision in South Dakota.
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