Quantcast
Environmental News for a Healthier Planet and Life

Help Support EcoWatch

Rick Perry Rejoins Pipeline Company After He Steps Down From Trump Admin Energy Department

Energy
Former U.S. Sec. of Energy Rick Perry speaks at the 2018 Conservative Political Action Conference in National Harbor, Maryland. Gage Skidmore / CC BY-SA 2.0

By Sharon Kelly

Former Trump administration Energy Sec. Rick Perry, who resigned from his cabinet-level post effective last month, has joined the board of directors of the general partner of Energy Transfer LP, according to a filing made today with the Securities and Exchange Commission by Energy Transfer.


Before joining the Trump administration, Perry had served on the board of Energy Transfer, the pipeline company behind controversial projects including Dakota Access, Bayou Bridge, and Mariner East, but resigned to become Secretary of the Department of Energy. On January 1, 2020, Perry was appointed as a director of LE GP, LLC, the general partner of Energy Transfer LP, according to today's SEC filing, made after the market closed. ("Energy Transfer is structured as a master limited partnership," Bloomberg reports.)

The news comes on the same day that Pennsylvania regulators announced a record $30.6 million fine for Energy Transfer over an explosion of the company's Revolution pipeline. State regulators said they would resume permitting for the firm's Mariner East project.

Energy Transfer is currently seeking to roughly double the flow of fossil fuels along its Dakota Access project, raising the pipeline's capacity to 1.1 million barrels a day, up from the 560,000 barrels of oil currently flowing through the Dakota Access system.

Perry first joined the board of the company, then known as Energy Transfer Partners, in February 2015, as he was facing state-level felony charges, dismissed a year later, for abuse of power during his term as Governor of Texas.

In 2017, after being chosen by President-elect Donald Trump to lead the Department of Energy, Perry said that he regretted his previous statements about eliminating the very department he would go on to lead. During his tenure in the Trump administration, Perry sent a proposed rule to the Federal Energy Regulatory Commission (FERC) to speed the approval of a proposal which would ensure that nuclear and coal plants received compensation for the "resilience" they give to the power grid, The Washington Examiner reported.

Speaking at CERAWeek, an annual energy conference in Texas, in March 2018, Perry said "clean" fossil fuels are the future, and a focus on renewables isn't the answer. "Listen, we support renewables," he told the audience, but suggested that the focus under the Paris Agreement was not the right approach. "What are we supposed to do in the meantime?" he asked, pointing to projections that fossil fuels aren't going anywhere soon.

The Revolving Door Spins

The Trump administration has come under fire over revolving door concerns before — often involving the hiring of former corporate lobbyists for government roles. "At the halfway mark of President Donald Trump's first term, his administration has hired a lobbyist for every 14 political appointments made, welcoming a total of 281 lobbyists on board, a ProPublica and Columbia Journalism Investigations analysis shows," ProPublica reported in October.

Other former high-level Trump officials have also come under fire for accepting roles in industries previously under their purview, including former Interior Secretary Ryan Zinke. In July last year, Bloomberg reported that Zinke began working as a consultant for oil and mining firms after leaving the Interior Department, drawing criticism from good governance watchdogs. Former White House Chief of Staff John Kelly similarly drew condemnation when he joined the board of Caliburn International, operator of the largest U.S. center for housing migrant children, after playing a role in policy debates over the separation of migrant children from their families. And former Environmental Protection Agency chief Scott Pruitt was reportedly in talks in September 2019 to work as a consultant for a Kentucky coal mining executive, according to The New York Times.

A January 28, 2017 executive order issued by President Trump requires executive branch appointees to pledge that they will not lobby agencies where they previously worked for five years.

'Historic' Fine for Energy Transfer Announced in Pennsylvania, Permitting Bar Lifted

Perry joins a company with a troubled track record when it comes to the law.

On the same day as the SEC filing announcing Perry's new role, Pennsylvania announced that it had reached an agreement with ETC Northeast Pipeline, LLC, an Energy Transfer subsidiary, over the 2018 explosion of the Revolution pipeline, part of the state's expanding network connecting the shale gas industry and the plastics and petrochemical industry.

The agreement includes a $30.6 million fine, one of the largest in commonwealth history — dwarfing the $13 million in prior fines issued as of September last year by state regulators for environmental violations during Mariner East pipeline construction. It also lifts a permit bar that blocked Energy Transfer from obtaining new permits for its pipeline construction projects, including an ongoing expansion of its Mariner East pipeline system.

"The settlement announced Friday means the company can also begin the process of repairing the Revolution pipeline, which links shale wells in Beaver and Butler counties to an Energy Transfer gas processing plant in Washington County," the Pittsburgh Post Gazette reports.

In August, state auditors reported that Revolution pipeline's permits were "reviewed and authorized" by a county-level office that lacked authority to review so-called "gathering" pipelines like Revolution.

Pennsylvania environmentalists decried the commonwealth's lifting of the permit ban, which was established in early February 2019 after Energy Transfer struggled to repair the site of the Revolution blast and repeatedly created sinkholes that exposed buried portions of the Mariner East 1 pipeline project.

"There has been a failure by Energy Transfer and its subsidiaries to respect our laws and our communities," Pennsylvania Governor Tom Wolf said in a statement when the bar was announced. "This is not how we strive to do business in Pennsylvania, and it will not be tolerated."

Last month, Energy Transfer and its security contractors were charged with criminal conspiracy, bribery, and other related offenses in the state over allegations centering on alleged intimidation tactics used by the firm's security guards, who also served as Pennsylvania state constables, in what prosecutors referred to as a "buy-a-badge" scheme. "We do not believe these charges have any merit," an Energy Transfer spokesperson told The Intercept when those charges were announced.

"Given the disastrous environmental degradation Energy Transfer caused with its Revolution pipeline, the company has lost its social license to operate," Joseph Otis Minott, attorney for the Clean Air Council, said in a statement today on Pennsylvania's agreement with Energy Transfer.

Reposted with permission from DeSmogBlog.

EcoWatch Daily Newsletter

Refrigerated trucks function as temporary morgues at the South Brooklyn Marine Terminal on May 06, 2020 in New York City. As of July, the states where COVID-19 cases are rising are mostly in the West and South. Justin Heiman / Getty Images

The official number of people in the U.S. who have lost their lives to the new coronavirus has now passed 130,000, according to tallies from The New York Times, Reuters and Johns Hopkins University.

Read More Show Less
A man walks on pink snow at the Presena glacier near Pellizzano, Italy on July 4, 2020. MIGUEL MEDINA / AFP via Getty Images

In a troubling sign for the future of the Italian Alps, the snow and ice in a glacier is turning pink due to the growth of snow-melting algae, according to scientists studying the pink ice phenomenon, as CNN reported.

Read More Show Less
Climate activist Greta Thunberg discusses EU plans to tackle the climate emergency with Parliament's environment committee on March 4, 2020. CC-BY-4.0: © European Union 2020 – Source: EP

By Abdullahi Alim

The 2008 financial crisis spurred a number of youth movements including Occupy Wall Street and the Arab Spring. A decade later, this anger resurfaced in a new wave of global protests, from Hong Kong to Beirut to London, only this time driven by the children of the 2008 financial crisis.

Read More Show Less
A climate activist holds a victory sign in Washington, DC. after President Obama announced that he would reject the Keystone XL Pipeline proposal on November 6, 2015. Mark Wilson / Getty Images

By Jake Johnson

The Supreme Court late Monday upheld a federal judge's rejection of a crucial permit for Keystone XL and blocked the Trump administration's attempt to greenlight construction of the 1,200-mile crude oil project, the third such blow to the fossil fuel industry in a day—coming just hours after the cancellation of the Atlantic Coast Pipeline and the court-ordered shutdown of the Dakota Access Pipeline.

Read More Show Less
A forest fire in Yakutsk in eastern Siberia on June 2, 2020. Yevgeny Sofroneyev / TASS via Getty Images

Once thought too frozen to burn, Siberia is now on fire and spewing carbon after enduring its warmest June ever, according to CNN.

Read More Show Less
The Colima fir tree's distribution has been reduced to the area surrounding the Nevado de Colima volcano. Agustín del Castillo

By Agustín del Castillo

For 20 years, the Colima fir tree (Abies colimensis) has been at the heart of many disputes to conserve the temperate forests of southern Jalisco, a state in central Mexico. Today, the future of this tree rests upon whether the area's avocado crops will advance further and whether neighboring communities will unite to protect it.

Read More Show Less

Trending

Independent environmental certifications offer a better indicator of a product's eco credentials, including labor conditions for workers involved in production. Flickr / CC by 2.0

By Jeanette Cwienk

This summer's high street fashions have more in common than styles and colors. From the pink puff-sleeved dream going for just €19.99 ($22.52) at H&M, to Zara's elegant €12.95 ($14.63) halter-neck dress, clothing stores are alive with cheap organic cotton.

"Sustainable" collections with aspirational own-brand names like C&A's "Wear the change," Zara's "join life" or H&M's "CONSCIOUS" are offering cheap fashion and a clean environmental conscience. Such, at least, is the message. But is it really that simple?

Read More Show Less