Keystone XL: Five Stories Not Told

http://mediamatters.org/blog/201202140001

February 14, 2012 6:00 am ET by Jill Fitzsimmons & Emilee Pierce

In the media storm surrounding TransCanada's proposed Keystone XL pipeline, news outlets have largely focused on the employment impacts of the project, often parroting discredited industry statistics in the process. But jobs are only a part of the story. A review of recent testimonies, tax records and local news reports shows that, on many other important issues at stake, TransCanada has been advertising one thing to its stakeholders and delivering another. What follows is a list of stories that many national news outlets missed:

1. TransCanada Used Aggressive Tactics With Landowners. TransCanada touts a commitment to "treating all landowners who may be affected by our project honestly, fairly and with mutual respect." But while the permit application for the Keystone XL pipeline was still pending, TransCanada sent letters to landowners along the pipeline route threatening to use eminent domain to seize their land if they did not agree to sign easements within 30 days. Landowners reportedly found this approach to be "very intimidating" and felt "bullied" by TransCanada. The Nebraska Farmers Union has repeatedly spoken out against TransCanada's "less than ethical" tactics, and, according to The New York Times, East Texas landowners said "they had never seen a company behave as aggressively as has TransCanada." Additionally a U.S. government official called the use of eminent domain "presumptuous" because the pipeline had not yet been approved. This story has been reported by the local press but largely ignored by the national media.

2. TransCanada Didn't Deliver On Previously Promised Tax Revenue. TransCanada has promised that Keystone XL will generate $5.2 billion in property tax revenue for the U.S. states located along its route. But the company made similar promises about the first leg of the Keystone pipeline, and 2010 tax records show that it failed to deliver. In its first year of operation, Keystone 1 generated less than half ($2.2 million) of the $5.5 million projected for Nebraska, and only a third ($2.9 million) of the estimated $9 million in state property taxes for South Dakota. In Kansas, TransCanada is exempt from property taxes for a decade, which will cost the state $50 million in public revenue, according to local officials.