Opponents of the Keystone XL pipeline were dealt another blow Wednesday evening with the release of a long-awaited report from the State Department's internal oversight office on a potential conflict of interest in the Department's environmental review of the project. The report found that even though employees of the contractor hired to carry out the review had previously consulted for the company pushing the pipeline, the information they provided to the Department was "not misleading."
Moreover, the report found that State Department officials had followed protocol for objectively selecting a contractor, even taking steps that are above and beyond what is officially called for. For example, a six-person panel conducted in-person interviews with each contractor applying for the job.
Last night's report, issued by the State Department Office of Inspector General (OIG), comes on the heels of the environmental review in question, which found that oil in the Canadian tar sands region would likely be exploited with or without Keystone XL. That was unwelcome news for the project's opponents, since President Obama, in his major climate change speech last summer, said his administration would approve the pipeline only if it wouldn't lead to a significant increase in carbon emissions. If rail, trucks, and other pipelines could transport the oil anyway, it's more likely the Obama administration will give a green light to the project. Last week, the editor of the prestigious journal Science (who previously served as the head of the US Geological Survey under Obama) made that argument in a surprise endorsement of the pipeline. A final decision could come this spring, but that is far from guaranteed.
The conflict-of-interest controversy dates back to November 2011, when the OIG began to investigate claims that TransCanada, the company behind Keystone XL, had improperly influenced the selection of a contractor to write an early environmental impact statement. No impropriety was found, but OIG made recommendations to improve the selection process. The next year, for a second environmental review called for by the president, State hired a new contractor: Environmental Resources Management. ERM's review was released in March 2013, and it was roundly criticized for being soft on the pipeline's potential harms, particularly downplaying the climate impact. Another major problem, as Mother Jones first reported, was that the publicly released biographies of the statement's authors, who were employees of ERM, had been redacted, concealing extensive ties to the fossil fuel industry, including work directly with TransCanada. Another OIG investigation was opened up, leading to the report released yesterday.
From the report: