Tuesday, October 18, 2011

(Part 2) Koch company declared 'substantial interest' in Keystone XL pipeline

(Part 2) Koch company declared 'substantial interest' in Keystone XL pipeline

Koch company declared 'substantial interest' in Keystone XL pipeline

Document filed with Canada's Energy Board appears to cast doubt on claims by Koch Industries that it has no interest in the controversial pipeline

In recent months Koch Industries Inc., the business conglomerate run by billionaire brothers Charles and David Koch, has repeatedly told a U.S. Congressional committee and the news media that the proposed Keystone XL oil sands pipeline has "nothing to do with any of our businesses."
But the company has told Canadian energy regulators a different story.

In 2009, Flint Hills Resources Canada LP, an Alberta-based subsidiary of Koch Industries, applied for—and won—"intervenor status" in the National Energy Board hearings that led to Canada's 2010 approval of its 327-mile portion of the pipeline. The controversial project would carry heavy crude 1,700 miles from Alberta to the Texas Gulf Coast.

In the form it submitted to the Energy Board, Flint Hills wrote that it "is among Canada's largest crude oil purchasers, shippers and exporters. Consequently, Flint Hills has a direct and substantial interest in the application" for the pipeline under consideration.

To be approved as an intervenor, Flint Hills had to have some degree of "business interest" in Keystone XL, Carole L├ęger-Kubeczek, a National Energy Board spokeswoman, told InsideClimate News. Intervenors are granted the highest level of access in hearings, with the option to ask questions. The Energy Board approved Canada's segment of the pipeline with little opposition, and Flint Hills did not exercise its right to speak. ...

Deep Involvement in Oil Sands Trade

The controversy over the Kochs and the pipeline was sparked by an InsideClimate News report from February. That analysis, also published on Reuters.com and later cited by various news organizations, found that Flint Hills is deeply involved in the Canada-Alberta oil sands trade and is well positioned to benefit if more heavy crude is exported to the United States.

The Koch brothers own nearly all of Wichita, Kan.-based Koch Industries, the second-largest private company in the United States. The energy and manufacturing conglomerate earns an estimated $100 billion in annual revenue from its network of subsidiaries—a mix of oil, gas, pipeline, chemical, fertilizer and paper and pulp companies. In addition to its Canadian operation, Koch's Flint Hills subsidiary operates oil refineries in Alaska, Texas and Minnesota as well as a dozen fuel terminals in the Midwest and Texas. ...


In June 2003, the US Commerce Department fined Koch Industries subsidiary Flint Hill Resources a $200,000 civil penalty. The fine settled charges that the company exported crude petroleum from the US to Canada without proper US government authorization. The Commerce Department’s Bureau of Industry and Security said from July 1997 to March 1999, Koch Petroleum (later called Flint Hill Resources) committed 40 violations of Export Administration Regulations.[41]
In 2006, Koch Industries’ subsidiary Flint Hill Resources was fined nearly $16,000 by the EPA for 10 separate violations of the Clean Air Act at its Alaska oil refinery facilities, and required to spend another $60,000 on safety equipment needed to help prevent future violations.[42]


- Enforcement Case Report        
For Public Release - Unrestricted Dissemination.   Report Generated on 10/18/11
US Environmental Protection Agency - Office of Enforcement and Compliance Assurance
- Case Number:     HQ-2008-0001        
Total Federal Penalty* Assessed or Agreed To (not necessarily an admission of liability)  Total Compliance Action Cost  $2,000,000     


KOCH INDUSTRIES has paid over $288,000,000.00 fines and penalties for pollution poisoning. This does not count the $293,000,000.00 jury award (or whatever the final secret settlement was) for the negligent homicide of Danielle Dawn Smalley and Jason Stone.


Killer Koch Brothers -- Koch Industries Organized Crime Killed Danielle Dawn Smalley and Jason Stone. http://koch-industries-organized-crime.blogspot.com/2011/10/killer-koch-brothers-koch-industries.html

Koch Industries Pollution Poison http://koch-industries-organized-crime.blogspot.com/2011/10/koch-industries-pollution-poison.html