by Deep Green Resistance News Service | Jun 21, 2012 | Toxification
By EcoWatch
To borrow a popular hockey term, Canada has scored a hat trick of the worst kind: Three major oil spills in just over one month.
The culprit this time around is Enbridge, the Calgary, Alberta-based operator of the world’s longest crude oil and liquids pipeline system, situated in Canada and the U.S. On June 19 the company confirmed that about 1,450 barrels (230,000 litres) of crude oil spilled from a pumping station onto farmland near Elk Point, Alberta, according to The Globe and Mail. Fortunately, this spill managed to occur in an area devoid of waterways.
Others haven’t been so lucky.
On June 7, Albertans living downstream from the Red Deer River suffered a scare when a pipeline owned by Plains Midstream Canada ruptured, spewing around 3,000 barrels of oil and posing a severe risk to the drinking water supply of 100,000 people, according to CBC News—Calgary. This spill began beneath Jackson Creek, a tributary of the Red Deer River, ending in Gleniffer Lake and reservoir where the majority of clean-up efforts and monitoring continue to take place.
According to Canada.com, the “province is still advising people not to draw water directly from the river or lake, and it’s telling people not to swim or fish in the lake, either.”
Topping them all is Pace Oil and Gas Ltd., which spilled an estimated 22,000 barrels of oil mixed with water near Rainbow Lake, in the northwestern corner of Alberta, according to Bloomberg.
Because of its remote location, the Pace Oil and Gas spill managed to stay relatively quiet despite being one of the largest and most calamitous oil spills in North America in recent years. The spill released more oil into the environment than the much higher profile Kalamazoo River spill almost two years ago in Michigan, compliments of—yet again—Enbridge, that pumped around 19,500 barrels into the Kalamazoo and surrounding marshes.
The latest Enbridge oil spill near Elk Point is one more to a tally exceeding 800 spills since 1999, and this is the corporation lobbying to build the massive Northern Gateway Pipeline stretching from Bruderheim, Alberta to Kitimat, British Columbia—crossing the Northern Rocky Mountains and innumerable streams, marshes and vital wildlife habitat.
Will we ever learn from this ongoing train wreck? If history is any indication—and it always is—the answer is probably not. Here in the U.S., we still suffer the relentless indignities of elected officials and company men assuring us that projects such as the Keystone XL pipeline pose no risk to the millions who depend upon the Ogallala aquifer for drinking water.
Perhaps a trip north to Gleniffer Lake might put things in perspective, or a trip to our own southern shores along the Gulf of Mexico. But clearly, this debate isn’t about logic or learning from our mistakes at all.
From EcoWatch
by Deep Green Resistance News Service | Jun 21, 2012 | Mining & Drilling, Toxification
By Agence France-Presse
The US government offered up new areas of the central Gulf of Mexico for drilling for the first time since the 2010 BP oil spill and received $1.7 billion in winning bids, officials said Wednesday.
Environmental groups tried to block the long-awaited sale by filing a lawsuit Tuesday arguing that it will endanger the already damaged ecosystem.
“The government is gambling with the Gulf by encouraging even more offshore drilling in the same exceedingly deep waters that have already proven to be treacherous, rather than investing in safer clean energy that creates jobs without risking lives and livelihoods,” said Jacqueline Savitz, vice president for North America at Oceana, one of five groups filing suit.
“This move sets us up for another disastrous oil spill, threatening more human lives, livelihoods, industries and marine life, including endangered species, in the greedy rush to expand offshore drilling.”
The Obama administration said it conducted a “rigorous analysis” of the impact of the 2010 spill prior to opening up new areas to leasing as part of a plan to expand “safe and responsible” domestic production.
“This sale, part of the president’s all-of-the-above energy strategy, is good news for American jobs, good news for the Gulf economy, and will bring additional domestic resources to market,” Secretary of the Interior Ken Salazar said in a statement.
Officials estimate that energy companies will be able to recover between 800 million and 1.6 billion barrels of oil and 3.3 to 6.6 trillion cubic feet of natural gas if the tracts are fully developed.
The Interior Department had offered more than 39 million acres of new tracts ranging from three to more than 230 miles (give to 370 kilometers off the coasts of Louisiana, Alabama and Mississippi in depths ranging from 10 to more than 11,200 feet (3 to 3,400 meters).
It received winning bids on 2.4 million acres.
The sale comes six months after the government opened up 21 million acres — an area about the size of South Carolina — in the western Gulf of Mexico and received $337 million in winning bids for over a million acres off the coast of Texas.
The April 20, 2010 explosion on the BP-leased Deepwater Horizon drilling rig killed 11 workers, blackened beaches in five US states and devastated the Gulf Coast’s tourism and fishing industries.
It took 87 days to cap BP’s runaway well 5,000 feet (1,500 meters) below the surface that spewed some 4.9 million barrels (206 million gallons) of oil into the Gulf of Mexico.
From PhysOrg: http://phys.org/news/2012-06-areas-gulf-mexico-drilling.html
by Deep Green Resistance News Service | May 18, 2012 | Lobbying, Toxification
By Amazon Defense Coalition
A new financial analysis has found that Chevron’s $18 billion Ecuador environmental liability poses a threat of “irreparable damage” to the oil major’s global operations if the plaintiffs make good on their promise to launch legal actions to enforce the judgment in countries where Chevron has billions of dollars in assets.
The report, by social investment analyst Simon Billenness, notes that the long-running case (Aguinda v. ChevronTexaco) “is reaching its most risky phase” for Chevron after an appeals court in Ecuador upheld the judgment in January and rendered it immediately enforceable. The report notes that Chevron’s defenses have been “severely compromised” because of a separate ruling by a New York federal appellate court that vacated a preliminary injunction purporting to bar worldwide enforcement of the judgment.
The Billenness Report also notes that Chevron has yet to disclose in its public filings that its own comptroller, Rex Mitchell, quietly submitted a sworn affidavit to U.S. federal court that concluded any enforcement of the judgment will cause “irreparable damage” to the company. Chevron has been trying to downplay the risk posed by the judgment in its public filings and press releases, concluded Billenness in the report, titled An Analysis of the Financial and Operational Risks to the Chevron Corporation from Aguinda v. ChevronTexaco.
“In sworn legal statements, Chevron has admitted that the company faces ‘irreparable injury’ to [its] business relationships’ [from any enforcement of the Ecuador case] yet has consistently refused to fully characterize these risks to its shareholders,” he wrote in the report. “Shareholders are rightly questioning whether the board and management are fulfilling their fiduciary duties to properly manage the significant risks to the company’s business and value.”
The report also concluded “the enormous breadth of Chevron’s global business operations makes the company particularly vulnerable to enforcement. There are many jurisdictions around the world in which the plaintiffs could seek court recognition and enforcement of the judgment, including many where Chevron has substantial reserves and that are of strategic importance.”
Key findings of the Billenness report include:
- The Ecuador judgment poses serious risks to Chevron’s worldwide operations, with the possibility of asset attachments and loss of social license to operate in new areas and markets;
- Chevron’s principal legal defenses against enforcement have either been severely compromised or have failed. These include the reversal of a preliminary injunction barring enforcement and the rejection by Ecuador’s government of a private investment arbitration that tried to halt the litigation;
- Chevron’s shareholders are stepping up calls for more transparent disclosure of the Ecuador liability, leading to increased pressure on management; and
- Chevron risks violating securities laws for withholding material information from shareholders.
Shareholders have been speaking out against Chevron management on the Ecuador issue for some time.
Last year, New York Comptroller Thomas DiNapoli blasted the company for “doing grave reputational damage” to itself by pursuing more legal proceedings “that only delay the inevitable…it’s time to face reality…[t]he entire case is looming like a hammer over shareholders’ heads.” And in a letter last May, several prominent institutional investors called on Chevron “to fully disclose … the risks to its operations and business from the potential enforcement” of the Ecuador judgment.
Chevron refused to even acknowledge or answer either the investor letter, according to the shareholders.
The plaintiffs have said they plan to enforce the judgment in various countries, but they have not announced any specifics other than to say Venezuela and Panama are being considered. Chevron has billions of dollars of assets in Australia, Kazakhstan, Singapore, Brazil, and Venezuela and operates in dozens of countries around the world, said Karen Hinton, the spokesperson for the Ecuadorians.
Billenness specializes in analyzing how environmental, social, and governance factors pose risks to shareholders. He has worked as an analyst and advisor to Trillium Asset Management and the Office of Investment of the AFL-CIO. He is a member of the U.S. Social Investment Forum and consults with entities that focus on social investing.
From Chevron Toxico: http://chevrontoxico.com/news-and-multimedia/2012/0517-chevron-faces-irreparable-damage-from-18-billion-judgment.html
by Deep Green Resistance News Service | May 14, 2012 | Mining & Drilling
By Terry Macalister and Lionel Badal / The Guardian
The International Monetary Fund (IMF) has been warned by its internal research team that there could be a permanent doubling of oil prices in the coming decade with profound implications for global trade.
“This is uncharted territory for the world economy, which has never experienced such prices for more than a few months,” the report warns.
The new IMF “working paper” come as the value of crude on world markets remains at the historically high level of $113 a barrel and just after the International Energy Agency reported that consumption would accelerate for the rest of this year in line with a wider economic recovery.
Undertaken amid mounting concerns about “peak oil”, the IMF study does not presume that there is a constraint on how much oil can be taken out of the ground. It prefers to believe that extraction rates will depend on the price that will be able to be charged for the final product.
“While our model is not as pessimistic as the pure geological view that typically holds that binding resource constraints will lead world oil production on to an inexorable downward trend in the very near future, our prediction of small further increases in world oil production comes at the expense of a near doubling, permanently, of real oil prices over the coming decade,” argues the report, entitled The Future of Oil: Geology v Technology.
The paper, which contains a warning that it should not be reported as representing the views of the IMF itself was nevertheless prepared by several authors including Jaromir Benes, a former head of macroeconomic modelling in the Czech National Bank but now employed by the IMF in Washington.
It says that its oil market “models” have been significantly more accurate than others in a world where predictability has been historically low. But it adds: “Our empirical results also indicate that if the model’s predictions continue to be accurate as they have been over the last decade… the future will not be easy.”
Meanwhile, the Paris-based International Energy Agency, which advises industrialised nations, including the UK on energy policy, said crude prices would remain high in 2012, due to tensions between Iran and the west. “The path of market fundamentals for the rest of the year remains highly uncertain and geopolitical risks will likely continue to keep prices high,” the agency said.
The agency believes that a period of declining demand – triggered by the slowdown in the global economy – is now over and the upward trajectory resumed.
The Opec oil cartel made similar statements a week ago, saying that oil demand growth had “stopped its declining trend”.
From The Guardian: http://www.guardian.co.uk/business/2012/may/13/oil-price-doubling-decade-imf
by Deep Green Resistance News Service | May 11, 2012 | Colonialism & Conquest, Indigenous Autonomy, Lobbying, Mining & Drilling, Toxification
By Fawzia Sheikh / Inter Press Service
An indigenous group in the Amazon rain forest took its anti-oil message to Canada in a case rife with accusations of social and environmental damage that highlights the issue of securing consent prior to commencing exploration operations.
Peas Peas Ayui, president of the National Achuar Federation of Peru (FENAP), told IPS through an interpreter that Calgary-based Talisman Energy Inc. is operating within its ancestral territory, covering one million hectares, without first seeking approval. The Achuar people live on both sides of the Peru- Ecuador border in the rain forest.
“The communities affiliated with FENAP reject the presence of the company” and have no interest in the “additional help or benefits” that Talisman can offer at the risk of environmental contamination, Ayui said.
During three previous visits to Canada, the indigenous leader has issued this message, in some cases meeting directly with Talisman management. The most recent trip featured discussions with government opposition leaders and members who expressed “solidarity” with FENAP’s aim to shut down the Calgary firm’s venture into its homeland, noted Ayui, buoyed by legislators’ resistance to the activities in the Amazon.
The delegation was accompanied by Amazon Watch, a San Francisco-based non-profit organisation that supports indigenous people and aims to protect the rain forest. Discussions with key stakeholders and interested parties in Canada took place from April 21 to May 8.
Talisman, however, shot back at Ayui’s trespassing claim and pointed to the Peruvian government’s permission to engage in oil exploration in certain regions.
Moreover, FENAP lands are based 25 kilometres east of the oil company’s activity area known as Block 64, said media relations adviser Berta Gomez, adding that her employer has used about 115 hectares for exploration activities representing .015 percent of the total area. The oil giant started working in the block in 2004.
“We respect that some communities are opposed to oil development and we will not work there,” Gomez emphasised.
Obtaining consent
While Amazon Watch purports to represent the voice of the Achuar in Peru, it actually speaks only for the FENAP, an Achuar federation comprised of a number of communities opposed to Talisman’s activities, she argued.
Within Block 64, the energy interest has won the support and approval of the FASAM and OSHAM Achuar federations, added Gomez, referring to two new offshoot organisations. Overall, she said, Talisman has agreements with eleven organisations representing 66 directly and indirectly affected communities, more than 1,800 families and five different ethnic groups.
“We are committed to early and ongoing engagement with all stakeholders to share plans and address concerns,” including key authorities, the ombudsman and third-party representatives who act as observers, she said.
Ayui, the FENAP leader, said he has asked that Talisman President and CEO John Manzoni attend a meeting in the Amazon where his company is exploring, but the company has requested discussions be held in a nearby town, requiring the indigenous group to travel for three days.
Gomez confirmed that a March 30 meeting took place for the first time among Talisman’s country manager and corporate affairs manager and indigenous leaders against oil and gas development in San Lorenzo, Peru, with a promise to attend a local indigenous assembly, probably in May, to establish a final agreement regarding land boundaries.
The case spurs important questions about the nature of free, prior and informed consent, which is rooted in the United Nations (U.N.) Declaration on the Rights of Indigenous Peoples, according to a 2011 report by Sustainalytics, a sustainability research and analysis company headquartered in Amsterdam.
The report questions what exactly constitutes the consent of affected indigenous communities – a band council resolution, a referendum, the agreement of community leaders or the approval of all constituents?
Complicating matters is the fact that the Peruvian government awarded concessions and blocks to oil companies without consulting or informing the Amazonian communities, which it has traditionally regarded as “second-class citizens”, states a report published last year by the Ottawa-based think tank, the North-South Institute.
Fostering strife among communities
Among the FENAP’s objections, moreover, is a claim that Talisman triggered social problems within the Amazon’s indigenous population.
FENAP leaders raised grievances with the Peruvian courts about Talisman’s creation of “conflicts and divisions” in connection to a May 2009 confrontation among Amazon groups that “almost ended in violence,” Ayui recalled, but there has been no response. Demands that the Peruvian Congress force the company to vacate the rain forest have also been unanswered.
In his view, the energy firm’s exploration operations have torn apart communities, as eight have opted to sign agreements granting permission to work on their land in exchange for development assistance, while 44 have not.
Based on the needs of federation leaders, Talisman offered “social contribution programs” to improve living standards, Gomez, the spokeswoman, said. Last November, she noted, Talisman signed social community agreements with 11 federations, providing $3 million in resources to fund education, health care, access to electricity, capacity building and local job-generation initiatives in 2012.
Despite the oil firm’s investment in communities, Gregor MacLennan, Amazon Watch’s Peru program coordinator, questioned its interpretation of gaining the free, prior and informed consent of indigenous peoples. He accused the company of winning approval in any way it can – even after indigenous groups initially say no – by presenting more money and resources.
For its part, Talisman has always engaged with all stakeholders in a direct and peaceful manner in full adherence to human rights principles, Gomez stated. However, she said, the oil firm also asks that “the rights of the people to choose to work with us, in an open and transparent fashion, also be respected”.
Talisman plans to maintain dialogue efforts with federations and communities opposing its activities.
Damaging the environment
Rounding out indigenous allegations against Talisman is environmental contamination. The Calgary firm touted new technologies with no risk of repeating the damage done by oil industry players operating in the Amazon in the 1970s and 1980s, but Ayui refuted the claim.
The exploratory wells have affected his community’s hunting and fishing grounds by producing waste which leaks into streams during the rainy season, he charged, and poisons birds and other animals. His people’s ancestors also died on the lands Talisman is now exploring, he added.
MacLennan told IPS that he addressed the drilling fluids issue during a February meeting with Talisman, which acknowledged the problem but explained it will take “several months” for the arrival of a subcontractor and the adequate equipment to undertake the clean-up to a specific standard, a task that includes correcting the poor waste-disposal job carried out by another oil company in the past.
Talisman meets, and in many cases surpasses, environmental regulations outlined by the Peruvian government, Gomez insisted. Waste products, or cuttings, are normally generated during drilling activities and have been “properly managed and stored according to environmental regulations and protection measurements” dictated under the oil firm’s environmental impact assessment, she said.
During the drilling of oil wells, the waste is stored in a “cuttings pit” complete with a roof to shield against rain water and a pit bottom protected with a “geomembrane” to prevent the direct contact of soil and waste, she noted, adding that the whole drilling pad is surrounded by an external ditch collecting fluid, mainly rain water, before it is released into the environment.
During Talisman’s drilling activities, known as SC3X and SN4X, there were no environmental incidents or claims from communities in the area of influence of its operations, Gomez said.
Talisman incorporates an indigenous environmental monitor from the local communities during the drilling projects. The monitor performs daily environmental inspections, immediately communicates problems, participates in monthly environmental monitoring and field environmental audits by regulatory agencies, helps to supervise the handling and shipping of waste and takes part in the abandonment activities and reclamation works, she added.
The company’s abandonment plan for the SC3X project, which details techniques for the treatment and final disposal of cuttings and an outline for re-vegetation and reclamation of the area, is awaiting Peruvian government approval, Gomez said.
Still, Amazon Watch and the FENAP are dissatisfied with Talisman’s environmental precautions and explanations. They dismissed oil companies’ tendencies to blame damage on subcontractors or on the challenges of working in the rain forest.
As the Canadian energy firm heads into a production phase within the next year, there are concerns that a potential spill due to human error would render the area “virtually irrecoverable”, MacLennan warned, spawning “an environmental disaster” destroying the livelihoods of thousands of people in the rain forest.
From Inter Press Service: http://ipsnews.net/news.asp?idnews=107718
