Keystone Foes Duck Climate in Red State Oil Pipeline Battle
Opponents, not surprisingly, disagree. They argue that many of the jobs promised by TransCanada are temporary, and in the past have said that clean-energy projects can also carry the promise of added jobs.
‘Not Main Thing’
Jane Kleeb, of activist group Bold Alliance, was a key figure in the first fight against Keystone, which centered around its potential to add to global warming. While Kleeb continues to support investment in clean energy, and voices concern about the tar sands oil that will come from Canada, she hasn’t made it the focal point of the discussion.
"Climate has not been the main thing," she said in an interview.
In an Aug. 2 order, the commission sustained some of TransCanada’s objections, blocking testimony about topics including the terms of potential agreements with the company, the risk of leaks or spills, and "opinion that the preferred pipeline route or any other route is not in the public interest." The commission will allow discussion of the value of landowners’ property and potential restrictions on land use.
Kleeb, alongside groups such as the Sierra Club and 350.org, have been working with landowners, highlighting the issue of eminent domain. They argue the pipeline isn’t economic anymore, citing speculation the company has had trouble securing customers. TransCanada counters that it still expects commercial support for the project, and has had discussions with existing and new shippers.
Unfair Takeaways
Kleeb and others argue this urgency won’t exist by the time the project comes online, roughly two years after the regulatory approvals. The result, they say, is that it’s unnecessary and unfair to take private property for the pipeline using eminent domain, particularly given certain liability provisions the company is putting into landowner easements. TransCanada says 91 percent of landowners in the state have agreed to allow the project on their land, and the terms are consistent with industry standards.
“People do value private property," said David Corbin, vice-chair of the state’s Sierra Club, which is planning to testify against the pipeline. "It’s not a red or blue issue in Nebraska."
Still, activists face an uphill battle, said Katie Bays, an analyst at Height Securities LLC in Washington, D.C. The commission leans conservative and the governor "has significant influence over the process from a political perspective, and he is a major advocate for the project," she said.
Even if the outcome favors TransCanada, opponents have vowed to keep litigating. The next step would be the state’s court of appeals, said Kenneth Winston, an attorney working for Bold and Sierra Club. While the company said it’s taking the process step-by-step, any decision is likely to be appealed, according to Corbin.
"The longer it takes," Corbin said, the more the "economic argument is going to say: Why would we want this thing?"
With assistance from Kevin Orland. To contact the reporter on this story: Meenal Vamburkar in New York at mvamburkar@bloomberg.net. To contact the editors responsible for this story: Reg Gale at rgale5@bloomberg.net ;Carlos Caminada at ccaminada1@bloomberg.net Jim Efstathiou Jr., Tina Davis.
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