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Wednesday, February 27, 2008

Waiting for PUC Ruling on TransCanada

Speaking of eminent domain, let's not forget that the PUC should be coming out with its ruling on the TransCanada pipeline any day now. In case Gary, Steve, and Dusty are still thinking about their ruling, here's some commentary from Sunday's Aberdeen American News, reminding us that TransCanada has demonstrated a pretty rotten sense of corporate neighborliness so far:

At its root level, the TransCanada Keystone Pipeline project has elements that we find attractive. Responsibly done, this pipeline, which could daily transport up to 530,000 barrels of Canadian crude oil from Hardesty, Alberta, to refineries in Illinois, will help wean the United States off the uncertainties of Mideast oil supplies.

Americans, and South Dakotans in particular, have no quarrel with that. However, we do have heartburn with the process that TransCanada -- and to a certain extent South Dakota -- officials have undertaken to make this project a win for all concerned.

The initial easement process implemented by TransCanada to gain approval of affected South Dakota landowners was poorly designed at best and, in some cases, a heavy-handed, threatening exercise that has only been exacerbated by promises of eminent domain and condemnation procedures.

While that is a tough pill for South Dakota landowners to swallow, U.S. law would side with Trans- Canada, regardless of whether it is a foreign registered company or not. TransCanada likes to remind us of this with the subtlety of a sledgehammer.

TransCanada, you failed Corporate Citizenship 101 with this approach... [Editorial, "Pipeline Process Needs Better Accountability,"Aberdeen American News, reposted at RedOrbit.com, 2008.02.24].

The editorial goes on to say that even the best laid pipes can fail, and that we have an excellent opportunity before any digging begins to establish rules of construction, operation, and financial responsibility that will protect everyone's interests. The editorial also expresses the hope that the "PUC will conduct a thorough due-diligence process and exhibit greater leadership than our governor's office has on this project." The AAN writers are spot on when they say Governor Rounds has rolled out the red carpet for TransCanada, a foreign oil company, while treating his fellow South Dakotans like second-class citizens.

But again, "Anything for a Buck." We could have imposed a two-cent-a-barrel pipeline tax to create a fund for cleaning up pipeline messes; instead, our legislators gutted SB 190 and turned it into a toothless measure creating paperwork and a task force. (The House passed it yesterday, 50-19 -- but even that faint whiff of standing in the way of Big Oil apparently induced District 8's Rep. Olson to vote nay.)

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