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Probe clears State Department in Keystone XL Pipeline review

Thursday, February 27, 2014

For the second time in two years, the State Department has been cleared of conflict of interest for its handling of the controversial Keystone XL Pipeline.

In May 2012, the department selected Environmental Resources Management to compile the supplemental environmental impact statement for the project. Some members of Congress and environmental groups questioned the choice because ERM did some work for TransCanada, the company behind the pipeline, in the past.

The Inspector General, however, found that the department followed proper guidance in selecting ERM. The employees who performed work for TransCanada were not involved in Keystone XL, the report said, and the work occurred prior to the firm's review of the project.

A similar complaint arose with the selection of a different firm for a prior version of the environmental impact statement for Keystone. In 2012, the OIG cleared the State Department of conflict of interest in that case as well.

Get the Story:
Report: Keystone contractor followed federal rules (AP 2/26)
IG: State Department did not break rules when hiring consultant for Keystone report (The Washington Post 2/27)
No Conflict of Interest Found in Favorable Review of Keystone Pipeline (The New York Times 2/27)

An Opinion:
Rep. Raul M. Grijalva: Obama’s Pipeline (The New York Times 2/27)

Inspector General Report:
Keystone XL Pipeline Project Compliance Follow-up Review: The Department of State’s Choice of Environmental Resources Management, Inc., To Assist in Preparing the Supplemental Environmental Impact Statement (February 2014)

Prior Inspector General Report:
Special Review of the Keystone XL Pipeline Permit Process (February 2012)