Crawford, who lives in Direct, Texas, had been trying since 2011 to keep the pipeline company off her property. But she ultimately lost, the portion of her land needed for the pipeline condemned through eminent domain – a process by which government can force citizens to sell their property for “public use,” such as the building of roads, railroads, and power lines. Crawford can’t wrap her head around why TransCanada, a foreign company, was granted the right of eminent domain to build a pipeline that wouldn’t be carrying Texas oil through the state of Texas.
That question – how eminent domain can be used in a case like Keystone – has some anti-Keystone groups stumped too. But the groups that usually are vocal proponents of property rights, including the Institute for Justice, have been silent when it comes to the controversial pipeline.
“I have not seen a single group that would normally rail against eminent domain speak up on behalf of farmers or ranchers on the Keystone XL route,” said Jane Kleeb, founder of the anti-Keystone group Bold Nebraska.
That’s surprising to Kleeb, whose organization is supporting the efforts of a group of Nebraska landowners along the pipeline’s proposed route who have held out against giving TransCanada access to their land. She had thought that at least a few conservative or pro-lands rights groups would have voiced their general support for Keystone XL, but still denounced the use of eminent domain to get it built. That hasn’t happened, Kleeb said – not among property rights groups nor among most pro-Keystone lawmakers.
“If this were a wind mill project or a solar project, Republicans would have been hair-on-fire crazy supporting the property rights of farmers and ranchers,” she observed. “But because it’s an oil pipeline, it’s fine.”
The US government works closely with thousands of corporations to bring you everything from national security to the drivers of climate change. The connections between these entities are diverse and often quite opaque making it difficult for citizens to tell who is really in charge. Is it the corporations with their ultimate responsibility to make a profit for their owners and shareholders, or is it the government with its ultimate responsibility to the electorate? Do the principles of government or business apply to joint decision making processes when government invests in businesses and sits on their boards, or when government agencies have representatives of business sit on task forces and decision making structures?
The economist and moral philosopher Adam Smith wrote, “people of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.”
What happens when the interests of business and government so align, that they are fundamentally, “in the same business?”
Cooperation
Disclosures by whistleblowers have led to a heightened interest by the press in these government-corporate linkages particularly in relation to intelligence gathering. Bloomberg recently posted this article which describes in some detail cooperation between government spies and industry:
Thousands of technology, finance and manufacturing companies are working closely with U.S. national security agencies, providing sensitive information and in return receiving benefits that include access to classified intelligence, four people familiar with the process said. …
Makers of hardware and software, banks, Internet security providers, satellite telecommunications companies and many other companies also participate in the government programs. … Along with the NSA, the Central Intelligence Agency, the Federal Bureau of Investigation and branches of the U.S. military have agreements with such companies to gather data that might seem innocuous but could be highly useful in the hands of U.S. intelligence or cyber warfare units, according to the people, who have either worked for the government or are in companies that have these accords. …
Some U.S. telecommunications companies willingly provide intelligence agencies with access to facilities and data offshore that would require a judge’s order if it were done in the U.S., one of the four people said. [hmmm. think carefully about the ramifications of that statement, could the spy agencies just maybe be evading the law on collecting our information by collecting it from outside of our borders? pfffttt]… The extensive cooperation between commercial companies and intelligence agencies is legal and reaches deeply into many aspects of everyday life, though little of it is scrutinized by more than a small number of lawyers, company leaders and spies.
The article also points out the minimal oversight that these programs receive and quotes Senator Rockefeller’s cybersecurity assistant explaining that most congresspeople and their staffs charged with overseeing these programs lack the technical background and expertise to fully understand what they are responsible for overseeing. Further, the article notes that within the companies that are entering into “arrangements” with the government, knowledge of these agreements is very closely held, suggesting that corporate governance structures are undermined and unable to perform their duty to oversee the activities of their corporation or withhold consent in behalf of the (kept in the dark) shareholders for actions taken by management. The secrecy involved creates a situation where loosely supervised government officials are allowed to compel or conspire with corporate chieftains to hijack corporations and undermine democratic governance structures.
Many of the corporations that have cooperated with the government are now, since being exposed, struggling with the public relations fallout that has come from customers finding out that the corporations have helped the government spy on them. Surely they understood this risk, which is why many of these corporations demanded legal immunity for their cooperation.
So what made it worth the risk, because, as the Bloomberg article reveals, much of the participation by these firms was voluntary? From the same article:
Michael Hayden, who formerly directed the National Security Agency and the CIA, described the attention paid to important company partners: “If I were the director and had a relationship with a company who was doing things that were not just directed by law but were also valuable to the defense of the Republic, I would go out of my way to thank them and give them a sense as to why this is necessary and useful.”
Ah, there was a corporate rewards program…
One is left to speculate about what sort of rewards might be handed out to corporations from a government with trillions of dollars to spend. They probably aren’t just giving out key chains and coffee mugs. Hmmm… Facebook cooperates with the NSA. Was its precipitous rise in the market due to Zuckerberg’s ideas and business acumen or… something else?
Greetings fellow inhabitants of Earth. We, the Committee to End the Future, a purposely shadowy global organization of extremely wealthy and powerful people wish to thank you for your cooperation in completing the final round of our “Great Game.”
For centuries we have played a series of rounds of the “Great Game,” accumulating resources by dominating governmental and economic structures, subjecting citizens of the various countries of Earth to a variety of schemes to divert the products and value of their labors to our use and to pauperize those not of our sort.
To cut to the chase, though, the reason for this communication is to warn our fellow inhabitants away from a very dangerous movement that could potentially disrupt our game and cause something of an annoying reset just as we are getting close to declaring a winner. We have discovered to our dismay that a small but noisy group of citizen activists wish to rein in the emission of carbon and methane which are essential to both our economy and completion of the Game.
If these noisy, misguided activists are successful, we shall have to write off many Trillions of dollars worth of energy assets that are important as game pieces as well as means of game completion.
We hope that we can count on you, our fellow inhabitants to continue your demand for carbon and methane emitting energy sources which are essential, let us not forget, to your personal comfort and ease of living. No matter what these activists say or do, please continue to ignore them. Continue to listen to the politicians that we support and their long-term, incremental plans that will bring down carbon emissions so gradually that you will never notice it.
We are now very close to the end of the Game. No game is complete without an end state. In short, we need to know who the winners are. At the end of this round of the Great Game we shall finally know, and in the tradition of the Egyptian Pharoahs that buried their fellow players alive at the end of their games, so shall we. We believe that our fellow inhabitants will enjoy a final rest from the great toils required of all those who play the Game.
Is anyone surprised that the White House has given its blessing to Transcanada’s Keystone XL pipeline plan to build an portion of the oil pipeline from Oklahoma to Texas despite rejection of the company’s earlier application in January? After all the protests last year to stop the construction and the Republican congressional maneuvering to force the president’s decision, it certainly appears that the Republicans and the oil companies will win but that shouldn’t be a surprise considering this president’s penchant for siding with the ruling class against the best interests of the country’s needs. This project won’t create jobs or reduce the price of gas, not now or in the future:
“As the President made clear in January, we support the company’s interest in proceeding with this project, which will help address the bottleneck of oil in Cushing that has resulted in large part from increased domestic oil production, currently at an eight year high. Moving oil from the Midwest to the world-class, state-of-the-art refineries on the Gulf Coast will modernize our infrastructure, create jobs, and encourage American energy production,” Carney said in a statement. [..]
But if the argument for building Keystone is to generate new oil within the United States and bring down gas prices, TransCanada’s plans don’t deliver. In fact, environmental groups say, TransCanada’s plans for Keystone mean more domestic oil will head overseas and a potential spike in gas prices. [..]
Kim Huynh, speaking for Friends of the Earth, accused the president of trying to have it both ways by touting his commitment to clean energy “while simultaneously shilling for one of the dirtiest industries on Earth” by endorsing the pipeline’s construction.
“What the administration seems to be missing is that the southern segment of this pipeline would exacerbate air pollution in refinery communities along the Gulf Coast and threaten our heartland with costly spills — all for oil that likely won’t make it to Americans’ gas tanks,” Huynh said in a statement.
Susan Casey-Lefkowitz, director of the International Program at the National Resources Defense Council, wrote in blog post:
So what exactly has TransCanada proposed today? TransCanada announced that it has let the State Department know that the company will submit a new application for a presidential permit for the northern portion of the Keystone XL tar sands pipeline from the border crossing in Montana to Steel City, Nebraska on the Kansas border where an already existing part of the pipeline starts. TransCanada would supplement this application with the proposed route through Nebraska after that has been determined in cooperation with Nebraska. But there is some question as to how long this would take since Nebraska does not currently have laws in place to do this assessment. TransCanada will then apply separately to the various federal and state permits for the southern portion of the pipeline from Cushing Oklahoma to the Gulf Coast.
Raw tar sands oil going from the Midwest to the Gulf for refining means serious pipeline safety issues for landowners and environmental justice impacts of tar sands refining. Concerns of Texas landowners over TransCanada’s high-handed attempts to take their land through eminent domain will all remain the same in the case of an Oklahoma to Texas tar sands pipeline.
And the southern route pipeline will still provide the main service to oil companies that Keystone XL would provide: it will divert tar sands from the Midwest to the Gulf, raising American oil prices and likely also gasoline prices. An Oklahoma to Texas tar sands pipeline will mean more tar sands converted to diesel and available for export overseas. It will mean less tar sands remaining in the US, even while Americans bear the risks of the pipeline.
Bill McKibben, who has led protests against Keystone XL, gave the following response to the news:
“Transcanada’s decision to build its pipe from Oklahoma to Texas is a nifty excuse to steal some land by eminent domain. It doesn’t increase tar sands mining because there’s still no pipe across the Canadian border, but it’s the usual ugly power grab and land grab by the fossil fuel industry — we’ll do what we can to stand by our allies in that arid and beautiful land.”
The plight of Texas land owners was highlighted in Brain Buetler’s Talking Points Memo:
Julia Trigg Crawford, 53, of Lamar County, TX faced similar pressure. On Friday, a judge voided a temporary restraining order she’d secured against TransCanada on the grounds that the company is threatening to build the pipeline across a portion of her 600 acre property that archaeological authorities say is teeming with Caddo nation artifacts. It also threatens a creek she uses to irrigate her land and wells her family uses for drinking water.
“I do not want my place to be a guinea pig on this,” she told my by telephone. Those practical concerns lay atop a more fundamental question of whether a for-profit company should be able to seize private land for profit.
“I’m looking out my window every hour,” Crawford said. “While they don’t have a permit to build anything, they have the right to start construction…. A foreign for profit pipeline was allowed to condemn my land without my being allowed to talk to a judge.” [..]
“You could check off 20 different kinds of boxes, politically, professionally, temperamentally,” Crawford said. “We had Occupiers, Tea Partiers. This is about rights as a landowner.”
A Nebraska landowner, Randy Thompson told TPM in the same article how he was harassed by Transcanada after he withdrew his permission to survey his farm land in 2007.
“Once I found out a little bit more about what was going on, I rescinded that permission,” Thompson told TPM by phone on Sunday. “[W]e did meet with them once, maybe a couple times. We told them, you don’t have a permit yet, so we absolutely do not want this thing on our property. So until you actually get a permit we have no reason to have any further discussion about this. They continually called me, like once a month or whenever they felt like it. Kept the pressure on us. Made us an offer, $9000. Whatever the offer was, we just don’t want the damn thing on our property.” [..]
“In July 2010, we got a written letter from TransCanada, they told us if you don’t accept this within 30 days, we’re going to immediately start eminent domain proceedings against you,” Thompson said. “They didn’t say anything about a permit. I tried to contact the Governor’s office. All I got back was a form letter talking about the pipeline.”
If the White House thought for even a nanosecond that this would blunt Republican criticism of Pres. Obama, they are as deluded as the Republicans who say this will reduce the price of gas:
House Speaker Boehner, R-Ohio, said he will continue to stress that the Obama administration is blocking construction of the entire pipeline, which would carry oil from the tar sands of western Canada to the Gulf Coast of Texas.
“The president is so far on the wrong side of the American people that he’s now praising the company’s decision to start going around him,” Boehner said in a statement.
“But he can’t have it both ways,” Boehner said. “If the president thinks this project is good for America, he knows how to make it happen right away. Until he does, he’s just standing in the way of getting it done.”
The only thing that completing the southern portion of the pipeline will do is ease the glut of oil that is being stored in the Midwest. It won’t lower the price of gas because that oil will be exported to the global market where it will be resold at a higher price. That will drive up prices in the Midwest where gas prices have been kept low because of the lack of the pipeline.
The reality is oil prices will continue to be artificially high by the saber rattling over Iran. The best and easiest way for the President to immediately lower gas prices is to stop the phony rhetoric of a war with Iran. Repeat it loud and often, Iran is not developing a nuclear weapon. That’ll work better than any environmentally unsafe pipeline.
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