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Showing posts with label Climate change litigation. Show all posts
Showing posts with label Climate change litigation. Show all posts

Friday, February 15, 2019

L. A. Times: As lawsuits over climate change heat up, oil industry steps up spurious attacks on its critics

As lawsuits over climate change heat up, oil industry steps up attacks on its critics

The Deepwater Horizon oil rig, aflame in the Gulf of Mexico in 2010. The rig's owner, BP, is one of more than 20 oil companies being sued over their alleged role in climate change. (Gerald Herbert / AP)



by Michael Hiltzik, The Los Angeles Times, February 12, 2019
The oil industry has been depicting itself lately as the target of a conspiracy by scientists, local government officials and climate change activists to make it look bad.
It would be odd to think that a conspiracy is necessary to punch holes in the fossil fuel companies’ public reputation, but here’s the argument presented by the Independent Petroleum Association of America (IPAA), one of the industry’s leading lobby organizations.

“In a highly-coordinated move,” the IPAA declares on its website, “nearly 30 scientists, government officials and third-party organizations recently joined the fledgling climate litigation campaign.” The IPAA labeled this a “free-for-all” and quoted an industry newsletter calling the campaign “a carefully orchestrated effort by local governments in California and elsewhere to use state law to collect damages from companies producing and marketing fossil fuels.”

If you think this sounds like a Goliath pretending to be a David, you are right. The litigation campaign IPAA refers to is a cluster of lawsuits pioneered in 2017 by the California counties of San Mateo, Imperial Beach, Marin, and Santa Cruz, and the cities of Richmond, Oakland, and San Francisco, among other jurisdictions, against more than 20 oil and gas companies.

The plaintiffs assert that the companies freely promoted the use of their products even though they were aware of the products’ effect on global warming — information the industry allegedly suppressed for years. The municipalities are asking that the companies be forced to help pay for the damage wreaked by climate change, including drought, wildfires, sea level rise, and extremes of heat and precipitation. Since the filing of the California cases, similar lawsuits have been filed by Rhode Island, Washington’s King County (that is, Seattle), Baltimore, and New York City.

The oil companies succeeded in transferring the state lawsuits to federal court, where they expect to face less liability under the law. The plaintiffs’ argument that the cases belong back in state court is being heard by the U.S. 9th Circuit Court of Appeals in San Francisco.

What has the industry vibrating at the moment is a sheaf of eight friend-of-the-court, or amicus, briefs all filed on January 29, 2019, with the appellate court supporting the transfer back to state court. Among other parties, the briefs were filed by the California Assn. of Counties, the Natural Resources Defense Council, a group of six prominent oil company critics, and the National League of Cities.

To the industry, this looks like a cabal. In a blog post, the IPAA found something sinister in “the fact that all eight of the briefs were filed within hours of one another on a random January afternoon (i.e. there wasn’t a court-designated deadline).” Not only was that “reason enough to suspect some level of coordination took place,” the blog post observes, but “signing onto the amicus briefs were many of the activists and politicians who have played key roles in the broader campaign to take down the oil and natural gas industry for years.”

A couple of points are pertinent here. First of all, there was indeed a court-designated deadline for filing the briefs — January 29, the day they were filed. The court’s procedural calendar specifies that amicus briefs must be filed no later than seven days after the main brief of the party they’re supporting. The California plaintiffs filed their brief on January 22, seven days earlier. So much for the “coordination.”

Second, why should it be so odd that the supporters of the cities and counties are drawn from the community of fossil fuel critics? Who else?

Let’s examine some of the industry’s other points. Among the chief targets of its pushback are Naomi Oreskes and Geoffrey Supran of the Department of the History of Science at Harvard University, who filed one of the amicus briefs, in conjunction with four other scholars with interest in climate change science.

Oreskes and Supran were the authors of a 2017 study detailing the industry’s determined, decades-long effort to suppress scientific evidence of global warming caused by the burning of fossil fuels, despite warnings by its own scientific researchers that the phenomenon was genuine, dangerous, and accelerating. 

We reported here on their study, which focused on Exxon Mobil. They compared hundreds of Exxon Mobil's internal reports and peer-reviewed research papers with its advertising — especially paid "advertorials" the company placed in the op-ed section of the New York Times from 1972 through 2001. The authors concluded that Exxon Mobil had systematically "misled non-scientific audiences about climate science."

The IPAA blog post claims that the Oreskes-Supran study has been debunked, but that’s not so. Their statistical method was questioned by another researcher, who was paid by Exxon Mobil. But the core of their findings wasn’t statistical but empirical. They compared internal company documents with the ad campaign and found them wildly divergent.

Oreskes, in an email, labeled the so-called debunking “the sort of expert-for-hire doubt-mongering” engaged in by the tobacco industry when it was fighting medical science over the dangers of smoking. That’s a topic she’s familiar with, having covered it in the 2010 book “Merchants of Doubt,” co-written with Erik M. Conway.

It’s hardly surprising that the oil industry would be uneasy about the “fledgling climate litigation campaign.” The plaintiffs aim to use state laws to fix blame on the fossil fuel companies in ways that can’t be accomplished under federal environmental laws such as the Clean Air Act.

Indeed, federal law vests the states with primary responsibility for addressing air pollution, according to Victor Sher, the San Francisco attorney representing the counties and cities. “Cases involving false and deceptive marketing, over-promotion of products, campaigns to deceive the public — those are traditional state police power matters that the Clean Air Act doesn’t address at all.”

Federal Judge Vince Chhabria of San Francisco largely agreed last March, when he ordered the lawsuits returned to state court. The oil companies appealed his order, which is why it’s now before the 9th Circuit bench.

The municipalities also are hoping to take advantage of California’s “public nuisance” doctrine, which holds that business can be held responsible for damage done by its products even if their usage was standard practice at the time.

The public nuisance argument was central to a lawsuit brought by California municipalities against lead paint manufacturers that concluded in 2017 with an order that the companies pay to clean up residual lead in dwellings that could pose a health hazard to children in those homes.

There’s no question that the cities and counties face a long and arduous road to saddling the oil industry with the responsibility for climate change and the expense of addressing its impacts. The lead paint lawsuit lasted 17 years before the verdict was made final.

But there’s also no question that the industry did its best to hide what it knew about the prospects of global warming and its products’ role in it. The latest misleading attack on its critics shows, if nothing else, that it still hasn’t learned to tell the truth, the whole truth and nothing but the truth.

Saturday, August 26, 2017

Exxon misled the public about climate change, Harvard study shows



FOR IMMEDIATE RELEASE
AUGUST 23, 2017
CONTACT:
Kyle Moler

Exxon misled the public about climate change, Harvard study shows

Cambridge, MA In the first comprehensive, academically peer-reviewed analysis of ExxonMobil’s 40-year history of climate-change communications, researchers at Harvard University have concluded that the company has misled the public about climate change.

A review of 187 public and internal Exxon documents found that, accounting for reasonable doubt, 83% of peer-reviewed papers authored by Exxon scientists and 80% of the company’s internal communications acknowledge that climate change is real and human-caused. In contrast, only 12% of Exxon’s advertorials directed at the public do so, with 81% instead expressing doubt.

“On the question of whether ExxonMobil misled non-scientific audiences about climate science, our analysis supports the conclusion that it did,” says the academic study published today by Drs. Geoffrey Supran and Naomi Oreskes in the journal Environmental Research Letters. [Link to paper: http://iopscience.iop.org/article/10.1088/1748-9326/aa815f or bit.ly/ExxonPaper. Paper published online at this address at 02:00 a.m. ET, August 23, 2017.]

These findings come as the Attorneys General of New York and Massachusetts and the Securities and Exchange Commission continue to investigate the oil and gas company for potentially misleading investors and the public about the risks of climate change. Exxon employees and shareholders have already filed lawsuits against the company on these grounds.

The year-long study is an expansive, quantitative, independent corroboration of the findings of investigative journalists, who ExxonMobil have accused of using “deliberately cherry-picked statements.” This latest work goes further, showing both that ExxonMobil knew about the basic realities of climate change decades ago and that the company simultaneously communicated positions that were at odds with this knowledge to the general public.

The authors explain that their research was prompted by ExxonMobil’s challenge to the public: “Read all of these documents and make up your own mind.”

“This paper takes up that challenge,” the Harvard authors write.

The researchers used an established social science method called content analysis to characterize 187 of ExxonMobil’s public and private publications about climate change, spanning 1977 to 2014. These included ExxonMobil’s peer-reviewed and non-peer-reviewed scientific work, internal company memos, and paid, editorial-style advertisements (“advertorials”) in The New York Times. Content analysis allowed Supran and Oreskes to evaluate the number of documents expressing different viewpoints on climate change and thereby to quantify the consistency of ExxonMobil’s climate communications.

The research looks at ExxonMobil’s positions on climate change as real, human-caused, serious, and solvable, and at the company’s acknowledgment of the risks of fossil-fuel assets becoming ‘stranded’ by climate policy. In each case, the article concludes, “available documents show a systematic discrepancy between what ExxonMobil’s scientists and executives discussed about climate change privately and in academic circles and what it presented to the general public.” The authors found the topic of stranded assets to be “discussed and sometimes quantified in 24 documents of various types, but absent from advertorials.”

In short, the paper finds, “ExxonMobil contributed quietly to the science and loudly to raising doubts about it.” The company’s academic publications had an average readership of tens to hundreds, whereas advertorial readerships were likely in the millions.

The Harvard paper is also explicit about its limitations. “We acknowledge that textual analysis is inherently subjective: words have meaning in context.” Yet, the authors argue, “While one might disagree about the interpretation of specific words, the overall trends between document categories are clear.”

To make these trends fully auditable, the peer-reviewed paper includes 121-pages of “Supplementary Information” [link to be added]. Here, the authors have tabulated all quotations, from all 187 analyzed documents, substantiating their conclusions.

The paper’s acknowledgments state that this research was supported by Harvard University Faculty Development Funds and by the Rockefeller Family Fund.

Other interesting findings of the analysis

  • Most of ExxonMobil’s climate science has been spearheaded by one person.
“In 1986, scientist Haroon Kheshgi joined ER&E [Exxon Research and Engineering], and was henceforth ExxonMobil’s principal (and only consistent) academic author, co-authoring 72% (52/72) of all analyzed peer-reviewed work (79% since his hiring). Indeed, the metadata title of the “Exxon Mobil Contributed Publications” file is Haroon’s CV.(See section 4.1.1 of paper for details.)

  • The Harvard study finds that “ExxonMobil’s advertorials included several instances of explicit factual misrepresentation.”
For example, “...an ExxonMobil advertorial in 2000 directly contradicted the IPCC and presented very misleading data, according to the scientist who produced the data.” (See section 3.1.5 of paper for details.)

  • Advertorials were part of an ExxonMobil climate-change communication plan
“Mobil/ExxonMobil bought AGW advertorials in the NYT specifically to allow the public to know where we stand.Readerships were likely in the millions. The company took out an advertorial every Thursday between 1972 and 2001. They paid a discounted price of roughly $31,000 (2016 USD) per advertorial and bought one-quarter of all advertorials on the Op-Ed page, towering over the other sponsors according to reviews of Mobil’s advertorials by Brown, Waltzer, and Waltzer.” (See section 4 of paper for details.)
  • ExxonMobil’s early estimates of the “carbon budget”  which implies risks of stranded fossil fuel assets, many have argued — “are within a factor of two of contemporary estimates.” (See section 3.4.2 of paper for details.)

Friday, June 2, 2017

Bloomberg: Schneiderman Says Exxon’s Climate Change Proxy Costs May Be a ‘Sham’

by Erik Larson, Bloomberg, June 2, 2017

New York’s top cop told a judge that an investigation into Exxon Mobil Corp.’s public statements about climate change uncovered "significant evidence" the oil giant may have misled investors.
In a court filing Friday, New York Attorney General Eric Schneiderman provided detailed findings from the fraud probe for the first time, saying Exxon may have been using two sets of numbers -- one public and one secret -- to calculate the future impact of the Earth’s warming on its assets.
"That evidence suggests not only that Exxon’s public statements about its risk management practices were false and misleading, but also that Exxon may still be in the midst of perpetrating an ongoing fraudulent scheme on investors and the public," Schneiderman said.
If true, the claims risk inflaming investors who this week backed a non-binding resolution urging the Irving, Texas-based company to consider whether it can prosper under strict greenhouse gas limits. While Exxon opposed the vote, it has accepted climate-change science and doesn’t support President Donald Trump’s decision to pull the U.S. out of the 2015 Paris Climate Accord.
Exxon’s public statements have accurately described its use of proxy costs, company spokesman Scott Silvestri said in an email. He said the documents provided by Exxon to Schneiderman during the litigation "make this fact unmistakably clear."
"This investigation is about politics and publicity, not law enforcement," Silvestri said." He called the claims "inaccurate and irresponsible."
Exxon has a separate lawsuit against Schneiderman pending in federal court in New York in which the company seeks to force an end to the probe on the grounds that it was started in "bad faith." Republicans in Washington have backed the company, with members of the House Committee on Science, Space, and Technology saying Schneiderman may have improperly coordinated with environmentalists and other state attorneys general before starting the investigation. [How do AGs get information on criminal activity if they don't talk to anyone?]
Schneiderman and his Massachusetts counterpart Maura Healey have been investigating since 2015 whether Exxon misled the public and investors by withholding information about how climate change could impact the company’s finances.
Naomi Ages, who leads Greenpeace’s climate liability project, said in an email that Schneiderman’s disclosures bolster the organization's views that Exxon has misled the public. Exxon is “saying one thing to the public and its shareholders about climate risk while basing its internal decisions on entirely different information," she said.
Schneiderman’s filing focused on Exxon’s claim that it applies so-called proxy costs to greenhouse gas emissions, which the company says "reasonably approximates the range of potential future government actions with respect to climate change." He said Exxon regularly cites the proxy costs to "assure investors that none of Exxon’s projects or assets will be materially affected by future climate change-related regulations."
That claim may be vastly exaggerated, Schneiderman said in his filing in New York state court.
"Exxon has identified only a single, anomalous instance in which a proxy cost was actually applied," the attorney general said. "Exxon’s documents reveal a widespread lack of awareness among employees of the proxy cost policy, or how it should be applied."
The use of proxy costs "may be a sham," Schneiderman alleged. 
Exxon also has "secret internal versions of proxy costs," according to the filing. In one instance, the company told an employee from its majority-owned Imperial Oil Ltd. not to apply it to its Canadian oil sands projects, according to the filing.
Exxon has refused to make the employee available to testify, "contending for the first time that it lacks control over its majority-owned subsidiary from which it has been producing documents for months," he said.

Proxy Costs

The proxy costs match a dollar amount to projected tons of greenhouse gases by a certain future year, according to the filing. In one example outlined in court documents, Exxon told investors it applied proxy costs that reached $60 per ton of greenhouse gases by 2030, and $80 per ton by 2040 for projects in developed countries.
But documents provided by Exxon under a subpoena show that lower dollar amounts were being used internally, according to the filing.
"It appears that this discrepancy was known at Exxon’s highest levels," John Oleske, a senior enforcement lawyer for New York, said in another filing on Friday.
Schneiderman claims an Exxon climate change manager wrote in a 2010 email that publicly disclosed proxy cost figures were "more realistic" than those used internally.
Tillerson wrote in an email in 2011 that he was “happy with the difference” because using a lower proxy cost was “conservative” from the perspective of investing in carbon capture and storage projects, which allows Exxon to claim emissions reduction credits, according to the filing.
Schneiderman’s filing also revealed the existence of an alias email account under the name "J.E. Gray" that was created for Exxon Chief Executive Officer Darren Woods. Schneiderman, who discovered the account through a court-ordered deposition of an Exxon technology employee, has sought thousands of emails from such accounts during the probe.
"The secondary account was never used, and therefore it contains no email responsive to the subpoena," Silvestri said.
The revelation of the J.E. Gray email account comes months after Schneiderman accused Exxon of failing to disclose the "Wayne Tracker" alias account that belonged to former CEO and now Secretary of State Rex Tillerson, who used the account to discuss sensitive topics with the board.

Tuesday, May 23, 2017

Exxon Loses Appeal to Keep PwC Auditor Records Secret in Climate Fraud Investigation

The documents, held by PriceWaterhouseCoopers, could provide a glimpse into the oil giant's calculations of the business risks posed by climate change.

by David Hasemyer, InsideClimate News, May 23, 2017

Exxon is under investigation by the New York attorney general
The New York attorney general is investigating whether oil giant ExxonMobil misled shareholders and the public about the risks of climate change. Credit: Scott Olson/Getty Images
ExxonMobil lost its appeal on Tuesday to keep records held by its auditors away from the New York attorney general's climate fraud probe.
The documents could afford a candid—and perhaps damaging—glimpse into Exxon's private calculations of the business risks posed by climate change. They could contain anything from a smoking gun email to plodding, yet revealing, discussions related to Exxon's posture on global warming, including whether the company was adequately calculating climate change risks for investors. Exxon still has another opportunity to appeal.
Investigators for state Attorney General Eric Schneiderman subpoenaed PricewaterhouseCoopers records pertaining to Exxon's assessment of climate change as part of an investigation into Exxon that was opened in 2015.
Exxon fought to have the subpoena voided, arguing the records were privileged communications with its auditor and should be kept from the eyes of investigators. The oil giant, headquartered in Dallas, based its argument on a Texas law that grants a privilege to auditors and clients much like that between a lawyer and client.
A state court judge agreed with Schneiderman's office that there was no such protection afforded Exxon under New York law and ordered the documents handed over last year. Exxon appealed that decision.
The appeals court, which had been considering the case since a hearing in March, rejected Exxon's argument.
"In light of our conclusion that New York law applies, we need not decide how this issue would be decided under Texas law," the two-page decision said.
Exxon did not respond to a request for comment.
Caroline Nolan, a spokeswoman for PwC, said the company had no comment.
The accounting firm, which has expertise in climate-related risks faced by fossil fuel companies, has remained neutral in the legal fight but has honored Exxon's request not to turn over documents pending the outcome of the litigation.
Exxon has been fighting investigations by Schneiderman and Massachusetts Attorney General Maura Healey both in federal court and state courts.
Schneiderman opened his financial fraud investigation of Exxon in November 2015 by subpoenaing decades of records related to Exxon's history of research into and knowledge of climate change. The investigation revolves around whether the company misled shareholders and the public about the risks of climate change.
The attorney general followed up with a subpoena to PwC nine months later seeking documents related to the auditors' work for the oil giant. Records sought under the subpoena include documents about accounting and reporting of oil and gas reserves, evaluation of assets for potential impairment charges or write-downs, energy price projections, and projected cost estimates of complying with carbon regulations.
Attorneys for Exxon argued that the judge's ruling in October to force PwC to surrender documents "eviscerates" the accountant-client privilege afforded by the laws of Texas, where Exxon is headquartered.  
New York investigators disagreed and argued that PwC should feel a moral obligation to cooperate. "As a certified public accountant, PwC 'owes ultimate allegiance to [a] corporation's creditors and stockholders, as well as to the investing public,' " the attorney general's office responded.
Exxon could file additional appeals up to the New York Supreme Court or allow PwC to comply with the subpoena.
While it is unclear what Exxon's next move may be related to the PwC documents, the company is also asking a judge to seal five subpoenas issued by Schneiderman's office in connection with its investigation, which has grown to include missing emails from former Exxon CEO Rex Tillerson, now U.S. secretary of state.
The attorney general's office disclosed last week that it has expanded its probe to determine whether Exxon may have destroyed emails from Tillerson's "Wayne Tracker" email alias. Investigators are trying to determine why several weeks of emails from that account are now missing. As part of that widening investigation, the attorney general's office revealed that it has subpoenaed a number of Exxon officials.
Exxon offered few clues in its request to the New York judge overseeing the case as to why the documents and the arguments by company lawyers justifying the sealing must remain secret.

Thursday, October 13, 2016

NC WARN Sues State of North Carolina and Regulators for Blocking Court Access in Long-running Climate Fight

NEWS RELEASE                                                                                          Contact: Jim Warren
October 12, 2016                                                                                                           919-416-5077
                                                  
NC WARN Sues State of North Carolina and Regulators for
Blocking Court Access in Long-running Climate Fight

Duke Environmental Law & Policy Clinic attorneys challenge constitutionality of two laws – from 2015 and 1965 – in a case that could derail Duke Energy plans to build $30 billion in fracked-gas power plants and pipelines

Durham, NC – In a case that goes to the heart of Duke Energy’s corporate business plan, climate protection nonprofit NC WARN today filed a lawsuit against the State of North Carolina and its utility regulators over two state laws passed 50 years apart.  The group, represented by attorneys for the Duke Environmental Law & Policy Clinic, say a 2015 law passed specifically to allow Duke Energy to shortcut the approval process for a large, fracked-gas power plant in Asheville violates both the state and federal constitutions.

NC WARN also contends that the NC Utilities Commission shielded itself from an appeals court review of the $1 billion Duke Energy project by invoking a never before used law from 1965 to require a $98 million bond that unconstitutionally locked the courthouse doors.  The lawsuit says no other state allows its regulators to invoke a bond to block a power plant appeal.

The lawsuit seeks to have a NC Superior Court panel deem both laws unconstitutional so that Duke Energy cannot rely on similar shortcut approvals and court-blocking bonds for the 15-20 fracked-gas plants it plans to build in the Carolinas by 2030. 

The suit itself would not stop Duke Energy’s controversial Asheville project, which is just getting underway.  A separate case by NC WARN and The Climate Times contesting both the shortcut approval and a $98 million bond order by the NC Utilities Commission is still being fought at the NC Court of Appeals.  The groups insist that a full hearing must finally be conducted, and that case could well go to the State Supreme Court.  

Jim Warren, executive director of NC WARN said today, “The General Assembly gave special favors to a powerful special interest.  But it is plainly unconstitutional for politicians and regulators to allow the giant Duke Energy monopoly to keep building power plants without careful, open review.”

He said the 2015 law led the Commission to approve Duke Energy’s Asheville plant without adequate scrutiny and information, thus creating a financial burden for customers that is wholly unnecessary due to a regional glut of power supply.  Also, a climate expert for NC WARN – who was not allowed to testify – said the plant would be disastrous for the fight to slow the accelerating climate crisis.

The largest US electricity provider, Duke Energy is greatly expanding its burning of fracked gas despite burgeoning evidence that the natural gas industry has become the leading driver of US greenhouse emissions.  Cornell researchers and others say a large amount of unburned gas – which is mostly methane, a super-potent heat trapper – is spewing into the air throughout the US natural gas system, making gas burned to generate electricity even worse for the climate than coal.  

Critics also say the gas industry and regulators have grossly overstated supplies of shale gas, perpetuating a Ponzi-scheme of drilling even as production quickly declines.  

Among the lawsuit’s key constitutional challenges:

Ø   Violation of the fundamental principles of due process, separation of powers and open access to the courts.  The complaint alleges that the NC Utilities Commission cannot constitutionally prevent the courts from reviewing Commission orders by setting excessive bonds that prevent parties from challenging those orders before the State’s appeals courts.

Ø  By granting Duke Energy a shortcut approval process, the General Assembly violated the State’s requirement that monopolies be strictly regulated and provide an ascertainable public benefit, satisfying an actual public need; the State Constitution otherwise prohibits monopolies, saying they are “contrary to the genius of a free state.”
The lawsuit seeks a declaratory ruling from the Wake County Superior Court that would prevent the State from allowing Duke Energy to use the shortcut approval process for large shale-gas power plants it plans to build.  It also seeks to prevent the Commission from blocking court review of its own decisions by imposing multi-million dollar bond requirements as a condition of a court appeal.

Warren added today: “Duke Energy clearly cannot win an open debate over the need for new fracked gas plants and their disastrous climate impacts.  The regulators have protected Duke from that vitally needed debate – a protection not allowed in any other state – and we’re calling on the courts to correct that massive injustice.”

Friday, September 9, 2016

Who's Banking on the Dakota Access Pipeline?

The Standing Rock Sioux are inspiring the world with their resistance against the pipeline. But it’s not just Big Oil and Gas that they’re opposing.

Camp at Standing Rock
by Jo Miles and Hugh MacMillan, Food & Water Watch, September 6, 2016

When the Army Corps of Engineers issued a permit for the 1,100-mile Dakota Access Pipeline in July, executives at the corporations behind the plan probably thought their path forward was clear. They’d moved easily through the permit process, seemingly dodging the concerns of people affected by the pipeline, and were ready to go ahead with construction.
But the communities in the pipeline’s path, especially local tribes, had other ideas.Thousands of people, mostly Native Americans, have converged at the Standing Rock Sioux Reservation in North Dakota in an effort to stop the pipeline from being built. The Standing Rock Sioux call the pipeline a black snake, and they know that if it were to rupture and spill — a serious risk, given the well-documented history of pipeline leaks in the U.S. — it could poison their drinking water and pollute their sacred land.
As we will detail, the Standing Rock Sioux are not just up against the oil and gas industry and the federal government, as daunting a challenge that alone would be. They are up against the many of the most powerful financial and corporate interests on Wall Street, the profit-driven institutions that are bankrolling this pipeline plan and so many others like it throughout the country.
The pipeline company disrupted the peaceful demonstration this weekend when its security firm unleashed violence on the activists, attacking them with dogs and pepper spray. The tribes are standing strong in their unity, and won’t give up despite these frightening and horrifying developments.

Corporate Interests Bankrolling the Pipeline

Powerful oil and gas companies are taking appalling steps to override the Sioux’s objections, using their immense financial resources to push for building this pipeline, which will further line their pockets. But behind the companies building the pipeline is a set of even more powerful Wall Street corporations that might give you flashbacks to the 2007 financial crisis.
Here are the financial institutions banking on the Dakota Access pipeline:
Financial Companies Behind the Bakken Dakota Access Pipeline
Seventeen financial institutions have loaned Dakota Access LLC $2.5 billion to construct the pipeline. Banks have also committed substantial resources to the Energy Transfer Family of companies so it can build out more oil and gas infrastructure:
All told, that’s $10.25 billion in loans and credit facilities from 38 banks directly supporting the companies building the pipeline.
These banks expect to be paid back over the coming decades. By locking in widespread drilling and fracking in the false name of U.S. energy independence and security, the banks are increasing our disastrous dependence on fossil fuels.

How Standing Rock Sioux are Fighting Back

The focal point of the resistance is at a camp outside the Standing Rock Sioux Reservation in North Dakota. Thousands of people, most of them Native Americans, have gathered in nonviolent demonstration to stop the pipeline’s construction and protect their land and water. In August, youth from the tribe finished a 2,000-mile relay run to Washington, D.C., to bring their message to the White House in their own show of opposition. The tribe is doing everything in their power to stop this pipeline.
Even before Dakota Access’s security turned violent, the activists faced harsh responses as Governor Dalrymple has declared a state of emergency, removing water and sanitation resources from the reservation, and the police have set up roadblocks around the reservation. Dozens of protesters have already been arrested, and police have spread false rumors of violence from the peaceful protectors.
But it’s the company, not the activists, that’s guilty of violence. This weekend, security sprayed activists with mace and released guard dogs into the crowd – even a pregnant woman was bitten by a dog. Democracy Now! captured disturbing footage of the attack.
In the aftermath of such violence, we can’t lose sight of how remarkable this gathering is: in a historic show of unity, over 188 Canadian First Nations and American Indian tribes have come together to support the Standing Rock Sioux’s effort to stop the pipeline.
Philip J. Deloria, a professor of American Culture and History at the University of Michigan, sees the fight as historic:
“The whole thing is kind of amazing, really. It’s a conjuncture of local organizing, social media activism, tribal-generated intertribal solidarity, semi-traditional ‘march on Washington’ strategies, and alliances with environmental and other political action groups... I think a lot of Indian people are seeing it as a moment of new possibility."
Energy Transfer Partners is pushing ahead with their construction — and in North Dakota’s dirty-energy-oriented economy, these corporations have the backing of the political establishment. In contrast, the activists stand against them with only their bodies, protecting their sacred land and water by physically standing in the way of the construction.
We all owe these activists our support. Communities all along the pipeline route have been carrying out their own protests, and Food & Water Watch has been working with the Bakken Pipeline Resistance Coalition to block the proposal since it was first announced in 2014. Now, as the pipeline is being built, we’re asking everyone to call on President Obama to intervene.
Iowans protest the Dakota Access Pipeline in solidarity with the Standing Rock Sioux

The Problems with Pipelines

Oil pipelines are inherently dangerous, and threaten our communities and environment with spills and explosions. They boost corporate profits and increase our dependence on fossil fuels, while bringing only risks and harms to those who live along the pipelines’ paths.
The Dakota Access pipeline would pump about a half-million barrels of oil each day along 1,100 miles through the Dakotas and Iowa to Southern Illinois. There, the oil would be sent to the East Coast refineries and other markets by train, or down another 750 miles to the Gulf Coast through a second pipeline that Energy Transfer Partners is converting to carry oil. Combined, the two pipelines — together called the Bakken Crude Pipeline and acknowledged here in a presentation ETP made to its stockholders in August — follow a similar path to the Keystone XL pipeline that President Obama rejected:
Overall, the Bakken Crude Pipeline will cost about $4.8 billion, and Energy Transfer Partners is touting it as a key element of its future plans to “capitalize on U.S. energy exports.” In building this infrastructure, Energy Transfer and its financial backers are banking on increased fracking in the United States in the coming decades. Over that time, communities will be left to deal with the spills, explosions, water pollution, air pollution, and climate impacts that ensue.
Protesting the Dakota Access Pipeline
Pipelines are not the answer to our energy needs. We need to keep fossil fuels in the ground, and we need an urgent shift to 100% renewable energy. 
The Dakota Access Bakken Pipeline is a direct threat to our air, water, and clean energy future. This is why we need President Obama to support the Standing Rock Sioux and other activists, and use his authority to revoke the federal permits and deny the Bakken pipeline. Urge President Obama to deny the Bakken pipeline.