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PLEASE DON'T LET IT BE A TREND

El Paso Partnership: Bribery, Extortion No Way to be Green

The ramifications of the El Paso deal with green groups are far reaching to say the least. Does anybody care?

By Bill Schneider, 8-04-10

Ruby Pipeline route.

Ruby Pipeline route.

I haven’t seen much of an uproar over the rather startling news of two green groups essentially extorting $20 million (later revised to “at least $22 million") from Big Oil. So, I’m wondering if I’m the only greenie choking on it.

On July 18, El Paso Corporation, one of America’s largest natural gas pipeline builders, and two fairly small green groups, the Western Watersheds Project and the Oregon Natural Desert Foundation, announced a “partnership.” (Click here)

These groups were among those fighting El Paso’s 680-mile Ruby Pipeline project, which would carry natural gas through a 42-inch pipe from Malin, Oregon to Opal, Wyoming. The pipeline would cut across some of the most pristine and remote lands in Nevada, Oregon, Utah and Wyoming, cross more than a 1,000 rivers and streams, disrupt the critical habitat of several endangered species, and suck more than 400 million gallons of water out of the semi-arid environment it passes through.

When the deal was struck, the company was on the verge of getting its coveted permit from the Federal Energy Regulatory Commission (FERC), but that approval was in doubt because these two environmental groups were threatening to petition FERC for a re-hearing and perhaps initiate other legal action to stop or delay the massive construction project. Even if the company prevailed in all administrative and legal battles, the $3 billion project would’ve been likely delayed for several years. During the delay, the cost might jump up a billion or two.

So, a meager $22 million “partnership” to make sure the company gets the permit sure sounds like a real deal, eh?

Well, that’s what happened. The two groups agreed to drop their opposition to the pipeline if the company set up multi-million “conservation funds,” which would eventually be used to retire public land grazing leases from willing sellers.

And it worked. FERC issued El Paso the permit on July 30 and construction of the Ruby Pipeline began hours later on July 31.

Wow! What a deal. I have several thoughts on it.

First, from the company’s standpoint, no matter how you sugarcoat it, it’s little more than the age-old business strategy called bribery.

Second, from the environmental group’s standpoint, no maTter how you sugarcoat it, it’s little more than an unacceptable strategy called extortion.

Third, this officially announced partnership is a few steps below the common but less visible practice of green groups, usually the big ones, soliciting large contributions from corporations involved in natural resource extraction and then quietly going soft on them when a future opportunity to oppose their projects comes along. Witness the $10 million BP donated to The Nature Conservancy through the years.

Fourth, it shows the power David has over Goliath. It’s called The Delay. Waiting for court battles to play out costs companies untold millions and has become the primary weapon of many green groups, especially smaller, more aggressive organizations.

Fifth, what was El Paso thinking? Dozens of other green groups had the same concerns over the Ruby Pipeline and can make the same moves to delay the project. El Paso can’t buy them all off. So, no surprise, on July 30, the same day FERC issued the permit, the Center for Biological Diversity filed a lawsuit directly with the 9th Circuit Court of Appeals in San Francisco to stop the project.

Sixth, I bet the greens never get the money.

Seventh and most important, I understand how cash-strapped small green groups can be. Most can’t even pay their dedicated workers, let alone fund a tiny fraction of what they need to do. But is this the way to do it?

We don’t want this to become a trend, and I fear this could happen. El Paso claims this partnership illustrates the company’s “commitment to environmental stewardship.” I dearly hope that’s true, but I suspect it’s just business. A significant delay would cost the company far more than $22 million, so could this be little more than a good investment?

Interestingly, there is an alternative, less environmentally destructive route along I-80 for the pipeline, but the company opposes it because it increases costs, so as usual, cost-cutting trumps environmental safety. There have been at least four ruptures in natural gas pipelines already this year (Michigan, New Mexico and two in Texas) causing significant damage to nearby watersheds.

We have a current example of what happens when cost cutting outweighs environmental safeguards, right? After four months of fumbling, millions of gallons of oil has finally stopped pouting into the Gulf of Mexico because a big energy company cut corners. Oh, incidentally, guess who is signed up to use the Ruby Pipeline? You guessed it, BP.

I know it isn’t easy being green, but let’s re-think the El Paso “partnership” and definitely don’t let it become a trend.

Footnote: Fortunately, the game isn’t over. The 9th Circuit Court could stop the project, of course, and El Paso also needs permission from the Bureau of Land Management to cut through federal lands along the route. That decision is expected in May, so we’ll have to wait to see if El Paso’s momentum carries it over the finish line.



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