“Warrior Against Women”: Romney Plays With Fire In Effort To Recapture Women
Last week, Romney campaign press secretary, Andrea Saul, set off a firestorm when she tweeted, “FACT: Women account for 92.3 percent of jobs loss under @BarackObama.”
Before you knew it, the Romney campaign had locked onto the statistic and made it the centerpiece of their effort to turn the corner on the mass defection of female voters to Obama—a stampede that, should it hold up, will make it very difficult for the Governor to defeat the President in November.
The strategy is a tricky one—although it certainly doesn’t hurt the Romney meme that Ms. Saul’s statement is factually true.
However, there is a great deal more to the story and—should women become acquainted with the facts rather than the bumper sticker—Governor Romney may find that he has dug the hole deeper by trying to pull a fast one on female voters. Unlike we male troglodytes, women tend to pay closer attention to the facts because…well…because they are smarter then men.
To get to the truth behind the numbers, we begin with Gary Burtless, a labor market expert with the non-partisan Brookings Institute, who highlights what took place during the recessionary period that began in December 2007.
I think males were disproportionately hurt by employment losses in manufacturing and especially construction, which is particularly male-dominated. A lot of job losses in those two industries had already occurred before Obama took office. Industries where women are more likely to be employed – education, health, the government – fared better in terms of job loss. In fact, health and education employment continued to grow in the recession and in the subsequent recovery. Government employment only began to fall after the private economy (and private employment) began growing again.
Burtless’ perspective is borne out by data that reveals that men lost 5,355,000 jobs during the recessionary period that began in December 2007 and ended in June 2009 when things began turning around, albeit unconvincingly. During that same period, women lost 2,124,000 jobs. Thus, during the recession, roughly 72 percent of all the jobs lost were taken from the men.
Oddly, it was not until things started moving in a better direction that women began experiencing the lion’s share of the pain.
There is a reason for this. What followed the recession were the deep cuts in state and local government jobs—jobs that tend to be filled by women in far greater numbers then men.
According to Joan Entmacher, vice president and director of family economic security at the National Women’s Law Center in Washington, D.C., while the private sector has added more than 2.5 million jobs since March 2010, state and local government jobs have been cut by 500,000—the majority of these jobs once belonging to women.
What’s more, it turns out that this pattern of men getting fired first followed by women losing their gigs just when men are beginning to return to work is a pattern that has held in previous recessions.
So, can you rationally blame this female job loss problem on President Obama?
Some could argue that had the President’s policies brought about a more emphatic recovery, states and localities would be racking up greater tax receipts, giving them more money to spend and, as a result, would not have found it necessary to cut so many of the jobs that have put women out of work disproportionately.
But to make that argument, you would necessarily have to support keeping or returning women to their state and local government jobs.
This is a problem when one acknowledges that it is the Romney side of the political ledger that makes ‘small government’ a hallmark of their reason for being. Thus, even if there were more dollars available to fund government at all levels, it seems fair to point out that conservatives would strenuously argue that the money should remain in the pockets of the taxpayers and not be shuttled off to government coffers to be spent on more public workers.
This is where it gets a bit sticky for the Romney camp.
It’s awfully hard to pursue a position that conflicts with your central reason for being—let alone making it a major campaign plank. If you support smaller government, you necessarily support fewer government employees. If those employees happen to be women— because women make up the majority of people who hold these jobs—you can’t really grouse about their job loss when the very act of their losing the job is a fulfillment of a critically important piece in your political platform.
And if you do decide to grouse, you run the risk of being exposed for a measure of hypocrisy.
It is no secret that a great many of the government job losses have come in education where states have cut back spending dramatically in response to budgetary problems. It is also no secret,as the following chart reveals, that the teaching profession—overwhelmingly dominated by women—has taken a major hit during the recent, post-recession years.
So, do we blame Obama for the firing of so many teachers?
Education budgets are controlled by the states. Of the top ten states that have made the deepest cuts into education, eight of them are under the firm control of Republicans.
Oops.
Meanwhile, reviewing the only three states that have increased funding for education during the past year—Maryland, South Carolina and Massachusetts—we find that two are led by Democrats. Governor Nikki Haley of South Carolina is the only Republican governor in the nation to increase spending on education.
Now, one can again suggest that a more robust recovery would have allowed these GOP governors and legislators to hold onto more of the teaching workforce. However, when it comes to cutting state and local jobs, blaming the President is somewhat akin to blaming him for the state proposals we’ve seen over the past few months attempting to subject women to vaginal ultrasound testing before an abortion is permitted.
At the end of the day, there is simply no rational basis to pin the loss of women’s jobs following the recession on the President. When taking in all the information, the argument just does not hold up.
In some respects, I have sympathy for Governor Romney in having to wear the mantle of a ‘warrior against women’. He didn’t start this. Indeed, there is ample evidence that he has not discriminated against women throughout his career and campaign.While right to life supporters might take issue with my cutting the governor such a break, given Romney’s flip-flop on the subject of abortion, I remain convinced that Romney is, in reality, no more opposed to abortion rights than he was when he was the Governor of Massachusetts.
Of course, the governor didn’t help himself with his milquetoast response to Rush Limbaugh’s attack on Sandra Fluke just as his campaign did him no favors yesterday when it appeared they had never heard of or, at the least, yet to form an opinion when asked about the Lilly Ledbetter Act—the first piece of legislation signed into law by President Obama and one aimed at improving women’s access to the courts to redress pay discrimination.
Fair or not, as the party standard bearer, Governor Romney takes on the troubles caused by Limbaugh and the many GOP state and federal legislators who have come up with some pretty bizarre, old century ideas that are the stuff of the “war against women.” If he’s going to overcome the handicap, I suspect he’s going to have to do much better than attempting a little misdirection in the effort to fool female voters.
Why?
Because if the women of America are anything like my own wife—and I strongly suspect that they are—the Governor’s ploy is a non-starter that will easily be found out.
If Romney wants the women to come back, he’s going to have to do much better.
By: Rick Ungar, The Policy Page, Forbes, April 12, 2012
“Disclosure For Thee But Not For Me”: Romney Using Ethics Exception To Limit Disclosure Of Bain Holdings
Republican presidential front-runner Mitt Romney, whose wealth has become a central issue in the 2012 campaign, has taken advantage of an obscure exception in federal ethics laws to avoid disclosing the nature and extent of his holdings.
By offering a limited description of his assets, Romney has made it difficult to know precisely where his money is invested, whether it is offshore or in controversial companies, or whether those holdings could affect his policies or present any conflicts of interest.
In 48 accounts from Bain Capital, the private equity firm he founded in Boston, Romney declined on his financial disclosure forms to identify the underlying assets, including his holdings in a company that moved U.S. jobs to China and a California firm once owned by Bain that filed for bankruptcy years ago and laid off more than 1,000 workers.
Those are known only because Bain publicly disclosed them in government filings and on the Internet. But most of the underlying assets — the specific investments of Bain funds— are not known because Romney is covered by a confidentiality agreement with the company.
Several of Romney’s assets — including a large family trust valued at roughly $100 million, nine overseas holdings and 12 partnership interests— were not named initially on his disclosure forms, emerging months later when he agreed to release his tax returns.
There is no indication that Romney is violating any rules, and his advisers note that his reports have been certified by the Office of Government Ethics, which reviews the disclosures required of presidential candidates.
Romney spokeswoman Andrea Saul said the disclosure “completely and accurately describes Governor Romney’s assets as required by the law.” She said Romney does not know the details of his investments since he turned them over to a trustee to manage, and that ethics officials confirmed that “everything … was reported correctly” and completely.
Several outside experts across the political spectrum, however, say Romney’s disclosure is the most opaque they have encountered, with some suggesting the filing effectively defeats the spirit of disclosure requirements.
“His approach turns the whole purpose of the ethics statute on its ear,” said Cleta Mitchell, a Republican lawyer who has represented dozens of candidates and officials in the disclosure process, including Romney’s leading challenger for the GOP nomination, Rick Santorum.
Romney’s fortune and his association with Bain are frequent topics in the presidential campaign, with opponents charging that the way he accumulated much of his wealth — through leveraged buyouts that in some cases ended in bankruptcy and layoffs — is at odds with the interests of working-class Americans.
The ties to Bain, a private firm known for its reticence, put Romney in a rare category exempting him from the transparency rules that apply to most candidates.
Like all nominees for federal office, Romney is covered by the statute that mandates disclosure of assets. But since the 2004 campaign — when Democratic presidential candidate John Kerry declined to disclose some of his wife’s holdings — the Office of Government Ethics has permitted nominees and presidential candidates to postpone revealing underlying assets in investment accounts that have a legally binding confidentiality agreement.
Bain routinely asks its investors to sign such agreements.
But after a nominee is in office, the ethics agency requires that any undisclosed assets be sold as a way to meet conflict-of-interest requirements.
The implications for Romney, if elected, are uncertain because sitting presidents are not subject to the conflict-of-interest sections of the ethics law. Although still subject to the disclosure requirements, a president cannot be compelled by OGE to sell undisclosed assets, according to an OGE official. Romney’s would be the first presidency to face this circumstance, according to the official, who spoke on condition of anonymity because of the sensitivity of the topic in an election year.
Romney does disclose underlying assets in his accounts held by financial firms other than Bain, such as Goldman Sachs. But his advisers say Bain holdings, the source of most of his wealth, are kept confidential at the request of Bain management for proprietary business reasons. Romney’s attorneys asked Bain officials to release information about the funds, but the request was denied, according to Saul.
When he talks about Bain, Romney promotes the image of a jobs generator spawning megastores such as Staples and Sports Authority , which serve as emblems of Bain’s extraordinary financial success.
But some other Bain-affiliated companies have a history of controversy. Romney is invested, for example, in DDI, a company in California once owned by Bain that filed for bankruptcy in 2003 and laid off more than 1,000 workers.
Company chief executive Mikel Williams said the firm has returned to profitability and is expanding, in part because of recent support from Bain and others.
Romney also has holdings in Sensata Technologies, a high-tech sensor control firm that has moved U.S. manufacturing jobs to China. A Sensata spokesman declined to comment.
Most of Romney’s holdings in Bain accounts are impossible to identify because of the confidentiality rules imposed by Bain, but his investments in Sensata and DDI were revealed through Securities and Exchange Commission filings.
Saul said it is unfair to link the candidate to such firms because “Governor Romney has not had any role at Bain Capital since he left over a decade ago,” and has turned over “control and overall management” of his investments to a trustee.
Ethics office’s ‘double standard’
Under pressure, Romney recently released hundreds of pages of tax returns for 2010 and estimated returns for 2011. A comparison of those returns with his federal and state “personal financial disclosure” reports and corporate filings at the SEC revealed dozens of discrepancies – and provided a window into what might emerge if Romney revealed the assets he holds in Bain accounts.
“I don’t know what legal authority exists for the federal ethics office to allow Mitt Romney not to disclose these assets,” said Mitchell, the Republican campaign lawyer. “The statute intends for presidential candidates to publicly disclose underlying assets.”
She said she views the OGE’s exception as a “double standard” that allows very wealthy candidates to avoid disclosure because they are more likely to have their assets in accounts covered by a confidentiality agreement.
By comparison, she said, her congressional clients are required to report every asset unless they qualify for one of the few exceptions described in the law.
One indication of the lack of specificity in Romney’s disclosures is the size of his report. In 2011, it ran 27 pages, compared with 123 pages filed by Ross Perot before he announced his presidential bid in 1992 and 51 pages filed by Henry Paulson, former chief executive of Goldman Sachs, when he was nominated as Treasury secretary in 2006.
Steve Pagliuca, a current Bain managing director who sought election to the U.S. Senate in 2009, and filed a 94-page disclosure. He too was denied permission to release underlying assets in Bain accounts, according to a source familiar with the matter, who spoke on condition of anonymity because he was not authorized to speak on the topic.
Romney is not the first presidential candidate to say he is unable to list underlying holdings in a private equity account. But he is the first to do so for such a large portion of his overall assets.
“I have never seen anything like this,” said Joe Sandler, a Democratic Party lawyer who has shepherded candidates and nominees through the disclosure process for 26 years. “Romney’s approach frustrates the very purpose of the ethics and disclosure laws,” he said. Sandler served as general counsel to the Democratic National Committee when Kerry ran for president.
As a senator, Kerry continues to say he cannot list assets in a Bain account held by his wife, Teresa Heinz Kerry, which his staff says is in compliance with Senate rules.
When he was running for president, Kerry did not list assets in Bain and half a dozen other private equity and hedge fund accounts — some valued over $1 million. A Kerry aide, who spoke on condition of anonymity because she was not part of the presidential campaign, said, “In this case, Senator Kerry wasn’t a beneficiary of Heinz family trusts, had no role in their management, and preexisting confidentiality agreements governing proprietary information were a unique issue.”
New Jersey Sen. Frank Lautenberg (D) does not list underlying investments in several private equity accounts his wife owns — and he provided no explanation with his disclosure report. His chief of staff, Dan Katz, said information on accounts owned by trusts connected to Lautenberg’s wife have proved unobtainable so far, but the senator has been told he is in compliance with Senate rules.
Senate Ethics Committee officials said they could not comment on individual members.
When he ran for the Senate from New Jersey in 2000, Jon Corzine, a former chief executive at Goldman, initially declined to release tax returns, citing confidentiality obligations to his firm. William Canfield III, a former Republican counsel to the Senate Ethics Committee, said at the time that the New Jersey millionaire had a special obligation to disclose, in part because of his extraordinary wealth.
“Mr. Corzine has to understand, while he retains some privacy rights, he has given up a substantial number of them in holding himself out for public office,” Canfield said at the time. Canfield has gone on to private practice and advised federal candidates, including Texas Gov. Rick Perry.
A spokesman for Corzine, who ultimately released his tax returns, declined to comment.
The purpose of disclosure
The 1978 Ethics in Government Act requires candidates to publicly disclose their wealth in broad ranges and to list the assets in most partnerships, trusts and pooled investment funds.
The purpose is to allow the public to identify potential conflicts of interest and the personal economic priorities of candidates and elected officials, said Fred Wertheimer, the longtime advocate who worked to enact the measure in the aftermath of the Watergate scandal.
Mitchell and several other Washington campaign lawyers say they advise candidates to reveal underlying assets, divest them if they cannot be disclosed or choose not to seek public office.
“My clients have had fund managers squawk about their ‘proprietary information’ and I’ve always been told, ‘There is no choice — the law requires disclosure,’ ” Mitchell said.
Canfield, the former Senate ethics lawyer, will not comment on Romney’s assets. But, he said, “I always counsel my clients to err on the side of disclosure” and to note on ethics forms “the same description of assets they would disclose to the IRS.” Doing so, he said, is in keeping with the spirit of the law and prevents embarrassing questions about discrepancies.
Romney’s tax forms showed holdings in a Swiss bank account, a real estate trust and nine offshore accounts not named on the public disclosure reports. In addition, 12 Bain accounts described as “fund” investments on the disclosure were identified as “partner” investments to the IRS.
Romney’s attorneys subsequently amended the disclosure to acknowledge the Swiss bank and the real estate accounts. The other assets, Romney aides said, were too small to report or had been listed, under other names, on the public disclosure. The general explanations were accepted by government ethics reviewers as were the amendments.
“Any document with this level of complexity and detail is bound to have a few trivial inadvertent issues,” Saul said at the time.
In his disclosure reports, Romney’s lawyers noted that he retired from Bain in 1999, is now a “passive investor” and “has not had any active role with any Bain entity.”
Romney’s tax returns indicate that he and his wife received “carried interest,” a controversial form of compensation that provides a share of profits to Bain managers and is taxed at the lower capital gains rate.
Romney’s compensation from ongoing Bain deals results from a retirement agreement when he left the company in 1999 allowing him a stake in Bain’s new investment funds for a decade after.
By: Tom Hamburger, The Washington Post, April 5, 2012
“Corporations Are People”: How Everyone Else Pays for Big Business’s Tax Breaks
Some politicians might believe that “corporations are people,” as former Gov. Mitt Romney declared last year.
At tax time, however, corporations enjoy better treatment than ordinary folks. While millions of individual Americans file last-minute income tax returns this month, some major corporations won’t pay a dime despite reaping record profits.
From 2008 to 2010, the 280 most profitable U.S. corporations sheltered half of their profits from taxes, thanks to tax subsidies totaling nearly $224 billion, according to a 2011 analysis by Citizens for Tax Justice. A dozen large companies, including Exxon-Mobil, Boeing, and General Electric, reaped $175 billion in profits, but their combined tax rate was negative 1.4 percent, thanks to $64 billion in subsidies from oil depletion allowances, write-offs from overseas profits, and other loopholes, according to the study.
These subsidies didn’t just come about by accident—at least 30 Fortune 500 firms pay their lobbyists more than they pay in taxes. Most small businesses can’t afford lobbyists, so it’s no surprise that the benefits of tax loopholes flow mainly to Wall Street, not Main Street.
Thanks to these loopholes, probably no major company pays the full federal corporate tax rate of 35 percent. The highest three-year average effective rate paid by any of the 12 large corporations in the Citizens for Tax Justice study was 14.2 percent—less than many middle class families.
That’s the kind of sweetheart deal most taxpayers—and most small businesses—can only dream about. We do, however, get to pick up the tab for these costly tax breaks. For starters, when corporations shirk billions of dollars in federal taxes, middle class taxpayers must bear more of the cost of national defense, healthcare, and other necessary programs.
Then there is the effect on state and local services, most notably education.
Most states mirror federal tax loopholes, and many states also provide tax subsidies for companies just to locate within their borders. Total state and local tax subsidies to business add up to about $70 billion a year. That windfall for big business comes at the expense of students. Over the past three years local school districts have cut 238,000 education jobs, which means more students crammed into larger classes and fewer opportunities for extra tutoring or after-school programs. Middle class families have also had to foot a larger share of the bill for higher education, as total state funding has declined 3.8 percent over the last five years.
Small businesses also pay a price for corporate handouts. Not only is the tax burden shifted to companies that can’t afford to game the system, but small businesses rely on public education to train skilled workers and teach them how to think critically. When Spencer Organ Company, Inc. was founded in 1995, many of the people who applied for jobs not only had basic reading and math skills—they also had been exposed to music education and had learned to use tools in shop classes, knowledge that is useful in the organ restoration business. Today, after years of curriculum cutbacks, most students have not had those opportunities, a shift that translates to higher training costs for this small business.
Our nation built the most prosperous economy in history during the 20th century, and public education was a foundation of that success. We all have a responsibility to provide similar opportunities for future generations to succeed, and our biggest corporations must do their fair share. After all, the same people who own stock in these companies also have a stake in America’s future.
By: Joseph Rotella and Dennis Van Roekel, U. S. News and World Report, April 5, 2012
“The Conservative Doctrinaire” And The Sheer Inhumanity Of Mitt Romney
“Now later he decided to run for governor of Michigan, and so you can imagine that having closed the factory and moved all the production to Wisconsin was a very sensitive issue to him, for his campaign,” explained Romney, who described a subsequent campaign parade in which the school band marching with his father knew how to play Wisconsin’s fight song, but not Michigan’s.“Every time they would start playing ‘On Wisconsin, On Wisconsin,’ my dad’s political people would jump up and down and try to get them to stop, because they didn’t want people in Michigan to be reminded that my dad had moved production to Wisconsin,” said Romney, laughing.
Thus ended an anecdote Mitt Romney shared with supporters in Wisconsin via a campaign conference call in an attempt to demonstrate that he had some sort of connection with their state. Now, this was far from the first time that the former governor of Massachusetts has said things that reinforce the idea that he is an absurdly wealthy hedge fund tycoon who has no compassion whatsoever for any social set lower than his NASCAR- and major league franchise-owning friends. He has previously let us know, for instance, that corporations are people, that he likes to fire people who provide services to him, and that his passion for sports seems to depend entirely on how the owners he knows will be affected. Romney’s other gaffes show a certain level of cluelessness about the average voter, or at the very least a total inability to relate to them in a way that they can understand. But this quote, as well as the values that underlie it, are far more dangerous, and emblematic of the conservative movement as a whole.
Without a doubt, not even Mitt Romney could be considered gauche enough to have shared this anecdote were he still competing for the primary votes of Republicans in Michigan, but with that win and those delegates safely in the bag, he had absolutely no trouble laughing about how his family eliminated the jobs of perhaps those same voters he was courting not too long ago. But not only does Romney have no shame about sharing this story in public, he did so gleefully in an attempt to show some sort of relationship to the state he is currently campaigning for. In Romney’s mind, after all, the voters of Wisconsin should be happy because they got a factory and jobs, regardless of whether it came at the expense of destroyed hopes and dreams on the other side of Lake Michigan.
Unlike his other gaffes, it’s not just that Romney was too tone-deaf to understand how his comments could sound off-putting to voters. Instead, he actively expected this anecdote to appeal positively to Republican primary voters in Wisconsin. The unfortunate part is, he may be right.
In the same way that Wisconsin’s gain was Michigan’s loss regarding the American Motors factory owned by George Romney, the conservative mentality regarding most aspects of politics, economics and civil rights is by default antagonistic and competitive, and uses the logic of a zero-sum game whereby any party’s gain must necessarily be another party’s loss. If the government provides economic support such as jobless benefits or stimulus, it must necessarily have hurt the economic prospects of those who were still on their feet, irrespective of the benefits of reintroducing that money back into the economy. If the LGBT community gains the fundamental civil right of marriage, it must, by necessity and definition, have impinged on the civil rights of heterosexuals, even if nobody can precisely articulate exactly why. If women are granted access to the medications they need to lead a happy and healthy existence, it can only have come at the expense of the the right of religious freedom, which has now been deemed by conservatives to include the right to impose one’s religious values on one’s employees. If millions of people are successfully added to the insurance rolls, then that must, by logical default, have resulted in death panels or denial of care to other, more deserving people. In the conservative mind, after all, there is only so much of any one thing to go around: consequently, someone must win, and someone must lose.
Mitt Romney is inhumane, and cannot be allowed to assume the presidency. He is not inhumane because he sees no problem with strapping his dog to the roof of his car, or because he is comically inept at small talk. He is not inhumane because he likes to talk about his friendships with sports team owners, or even because he hired a lobbyist in an effort to secure the permitting process for a car elevator in his dream mansion in San Diego. He isn’t even inhumane because he used his position at Bain Capital to destroy jobs, hopes and dreams for his own economic benefit. Most of all, Mitt Romney is inhumane because he, like the conservative movement that surrounds him, does not believe that all Americans can enjoy increased freedoms and economic prosperity, to say nothing of understanding the conditions and policies that would achieve this end.
Ultimately, this is why Barack Obama will be re-elected, and conservatism will fail. Conservative Teen Magazine notwithstanding, younger generations tend to take a more cooperative, collaborative view of the world, and will turn out to the candidates and political parties that embrace this vision. As the conservative movement continues to embrace the doctrinaire plutocracy embodied by Mitt Romney, it will ultimately wither away in all but the reddest areas—right alongside the elderly white Fox News demographic to which it appeals.
By:Dante Atkins, Daily Kos, April 1, 2012
“It’s A Question Of When”: Study Predicts Keystone Pipeline Will Spill
Republicans have sought to frame the Keystone XL pipeline as a job-creating project being thwarted by “radical environmentalists.” Is it? A new Cornell University study claims that the pipeline could actually have a negative impact on the economies of the states it would pass through.
“In the national debate, job creation has been set alongside environmental concerns in a rigid either-or fashion,” says Sean Sweeney, one of the study’s authors, “But oil spills also kill jobs, they consume resources, they have an impact on health, and can also lead to a lower quality of life.”
The range of estimates of jobs vary widely. TransCanada claims the pipeline will create 20,000 jobs. A State Department report estimates that only 20 permanent operating jobs would be created in the six states along the pipeline route. By comparison, those same states are home to robust agricultural, ranching and tourist industries that are dependent on water and vulnerable to environmental contamination. Across the six states agriculture employs 571,000 workers and tourism 780,000; the total revenue from those sectors, respectively, is $76.3 billion and $67 billion.
Sludge not crude
Tar sands oil — known in energy circles as diluted bitumen — may be more damaging to environments and communities than regular crude. Said Sweeney, “Diluted bitumen is an irregular substance — it runs thick and thin, hot and cold. It’s basically a sludge, not like regular crude — it behaves differently.” Tar sands also seem more likely to spill than conventional crude: The spill rate for diluted bitumen in the northern Midwest between 2007-2010 was three times the national average for conventional oil. This may be because the heavy, corrosive material puts greater stress on pipelines.
The already existing Keystone I pipeline, which runs 2,100 miles from Alberta to Illinois, began operating in 2010; in the two years since, 35 spills have occurred. In the pipeline’s first year of operation alone, its spill rate was 100 times TransCanada’s projection. All told the amount of tar sands oil being transported through the United States has more than tripled in the past decade to 600,000 barrels in 2010. Keystone XL, if built, would add another 830,000 barrels per day.
John Stansbury, a professor of civil engineering at the University of Nebraska, analyzed spill data from the Keystone I pipeline to estimate that 91 spills would occur over the course of 50 years of Keystone XL’s operation — close to two spills each year. In a worst-case scenario, he says, a spill could contaminate 4.9 billion gallons of groundwater in Nebraska’s Sand Hills with benzene, a known carcinogen.
The threat the pipeline poses to Nebraska’s Ogallala Aquifer, which provides 30 percent of the irrigation water in the U.S., has been much-discussed, but the pipeline would also cross another 1,747 bodies of water, including the Yellowstone and Missouri Rivers and the Carrizo-Wilcox aquifer, the third largest aquifer in Texas.
If Keystone were to leak — or worse, rupture — the consequences could be serious. In July 2010, a pipeline operated by the company Enbridge ruptured — the company has never explained why — spilling 1 million gallons of tar sands oil into Michigan’s Kalamazoo River. The oil drifted 40 miles upstream, causing 145 reported instances of illness and health problems for people living in the riverside community of Marshall, Mich. Marshall residents living within 200 feet of the river were eligible for a buyout program; about 130 people sold their houses to Enbridge, leaving some areas uninhabited.
The Kalamazoo cleanup has cost $725 million so far — twice as much as Enbridge estimated — and the river remains closed to fishing, hunting and other recreational activities over a year and a half after the spill occurred. Officials in the Calhoun County Health Department have said some bitumen will likely remain in the river “indefinitely.” Sweeney points out that the rural areas along pipeline routes are unprepared to cope with spills. “They had to bring someone in from the Gulf to deal with Kalamazoo,” he explained.
While the Kalamazoo spill was the biggest-ever tar sands spill, pipeline spills occur with startling frequency. In 2011 alone, there were 600 reported pipeline incidents. TransCanada’s website argues that “if they do occur, pipeline leaks are small,” yet pipeline spills caused 17 deaths and 68 injuries, and over $335 million in property damage. In 2010, when the Kalamazoo spill occurred, the damages from pipeline spills topped $1 billion. While pipeline spills don’t get the attention of disasters like the Exxon-Valdez and BP, they point to a familiar pattern of underestimating risk and underpreparing for disaster.
TransCanada insists that it will comply with all federal regulations, and construct and operate Keystone XL “to the highest industry standards.” Danielle Droitsch, an attorney with the National Resources Defense Council, argues that we don’t know enough about diluted bitumen to be able to transport it safely. “We’re building these pipelines as if they were conventional oil pipelines,” she said. “We don’t have any special regulations in place to deal with the fact that these are tar sands pipelines and they are very different. Until we have a new regulatory system in place there are no safety measures proposed that would make this pipeline safer.”
And in the meantime? “There’s no question this pipeline will spill — it’s a question of when.”
By: Allyssa Battistoni, Salon, March 19, 2012
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