State Dept. inspector general to probe Keystone oil sands pipeline review

The State Department’s inspector general has agreed to probe the agency’s review of the proposed Keystone XL oil sands pipeline, a process that project critics allege is biased in favor of developer TransCanada Corp.

The inspector general’s office disclosed the “special review” in a Friday memo to Deputy Secretary of State Bill Burns that was released by Sen. Bernie Sanders (I-Vt.). Sanders is one of more than a dozen lawmakers who called for the review.

{mosads}“The primary objective of the review is to determine to what extent the Department and all other parties involved complied with federal laws and regulations relating to the Keystone XL pipeline permit process,” the memo states.

Sanders, in a statement, urged President Obama to defer any decision on whether to permit the Alberta-to-Texas pipeline until the inspector general’s review is completed.

“I appreciate the inspector general’s responsiveness to our request and the willingness to treat this important matter, and the allegations of conflicts of interest, with the seriousness it deserves. This is a critically important issue for our environment and the energy future of our country,” Sanders said in a statement Monday.

The department hopes to make a final decision on TransCanada’s permit
request by the end of the year but acknowledged last week that the
timeline might slip. While State is running the process, President Obama
recently made clear that the final call rests with the White House.

The State Department has defended its review of the proposed pipeline against allegations of bias and conflict of interest. In particular, it has defended use of the firm Cardno Entrix to conduct a key environmental review despite the firm’s ties to TransCanada.

But Sanders, in his statement, said, “At a time when all credible scientific evidence and opinion indicate that we are losing the battle against global warming, it is imperative that we have objective environmental assessments of major carbon-dependent energy projects.”

Environmental groups opposing the pipeline have also highlighted friendly emails between a State Department official and TransCanada lobbyist Paul Elliott, who was an aide to Secretary of State Hillary Clinton’s 2008 presidential campaign.

The memo from Harold Geisel, the top official in the IG’s office, says the review will be conducted at “appropriate bureaus and offices,” including the Bureau of Economic, Energy and Business Affairs, the Bureau of Oceans, Environment and Science, the Bureau of Western Hemisphere Affairs, and the Office of the Legal Adviser.

The review will include “interviews of appropriate officials and an assessment of pertinent documents,” the Nov. 4 memo states.

White House Press Secretary Jay Carney declined to comment on the inspector general probe during a briefing Monday, referring a reporter to the State Department. The department did not respond to a request for comment.

TransCanada, in a statement, welcomed the review and predicted it would give the process a clean bill of health.

“At TransCanada, we conduct ourselves with integrity and in an open and transparent manner. We are certain that the conclusion of this review will reflect that,” spokesman James Millar said.

“We welcome an independent review by the inspector general’s office so that these latest claims by professional activists and lawmakers who are adamantly opposed to our pipeline project can be addressed,” he said.

Climate activist Bill McKibben, a key organizer of the anti-Keystone movement, said it’s “good to see the administration beginning to listen to responsible lawmakers, and we look forward to the results of this inquiry about the warped environmental review process.”

But McKibben, in a statement, made clear that green groups’ fight is against the pipeline itself, not just the review process that they allege has been unfair.

“While we’ve been dismayed by the corrupt conduct of the State Department, our real problem has from the start been the fact that these tar sands are the second largest pool of carbon on earth,” said McKibben, founder of the group 350.org.

This post was last updated at 3:24 p.m.