Blog Archives
Will Utah give $20 million in public money to prop up bankrupt Oakland Coal Terminal?
The company behind the part of the Oakland Export Terminal that would deal with coal, Insight Terminal Solutions, is in bankruptcy court. They postponed their last hearing, claiming that Utah counties were going to bail them out with $20 million dollars.
This money could potentially come from the Utah legislature (looks like it won’t be discussed in the August special session) or through an application to the Community Impact Board (CIB) for use of Throughput Infrastructure Funds.
Articles and press releases:
Will Throwing John Siegel a $20 Million Lifeline Buy Utah a California Coal Terminal? – No Coal in Oakland. August 13, 2020.
Utah advocates call for block of $20 million bailout for bankrupt coal port company – Alliance for a Better Utah. August 13, 2020.
Utah coal counties pledge $20M in state money to help get Oakland port back on track – Brian Mafly, Salt Lake Tribune. July 5th 2020, updated July 17th, 2020.
Will Utah lawmakers bail out beleaguered coal-export terminal? – Brian Mafly, Salt Lake Tribune. August 11, 2020, updated August 12, 2020.
The Book Cliffs Highway is moving forward
The SCIC’s preferred route down East Canyon
The Book Cliffs Highway, a massive proposed public subsidy to the fossil fuel industry, connecting the Seep Ridge Road (at P.R. Spring Tar Sands Mine) to I-70, has come up again. We’ve fought it off before, once in ’92 when Grand County restructured it’s governance structure, and again in 2015 when the Grand County Council pulled out of the Seven County Infrastructure Coalition (SCIC) in order to avoid being outvoted over support for this project in our county. Now the SCIC is pursuing this project in Grand Country regardless of public opposition.
NOW:
- The SCIC is in the process of submitting a Right-of-Way Application to the BLM for construction through BLM administered lands.
- The Grand County Council has been asked to abandon County rights-of-way along the route by the SCIC. If Grand County does not abandon these rights of way, the SCIC will have to re-engineer the route.
It is very important to stop this project, which I think we can do through loud and sustained public pressure. Industry in the Book Cliffs area includes fracking for oil and gas, tar sands mining and oil shale mining. For these forms of extreme energy production to expand, they need a transportation connection to a refineries and markets. Truck traffic in the Uintah Basin to the North is at it’s maximum, refineries in Salt Lake City are at capacity, and plans for a heated pipeline out of the region have been thwarted. Meanwhile, plans for a publicly funded rail line out of the Uintah Basin are also in the works. It is our job, as folks who care about this area, to get involved to stop this Tar Sands Highway from ever being completed.
Book Cliffs Highway Fact Sheet [2019] w/ talking points, history of opposition, and facts highlighted from the 1992 EIS done on the project.
Estimated Project Cost:*
Construction for East Canyon Route: $157 Million
Maintenance Estimate (20 years): $27 Million
Yearly Maintenance: $1.35 million
* These estimates are from the Book Cliffs Transportation Corridor Study, others have ranged as high as $418 million in construction costs with annual maintenance and operating costs as high as $3.89 million.
The Seven County Infrastructure Coalition (SCIC):
The SCIC is the state entity pushing the Book Cliffs Highway (Eastern Regional Connection) and the Uinta Rail Line forward. It is a coalition of eastern Utah counties including: Carbon, Daggett, Duchesne, Emery, San Juan, Sevier, and Uintah.
The SCIC and their projects are financed almost entirely through Community Impact Board (CIB) Grants, which would otherwise be available to rural communities to help alleviate the impacts of oil and gas production. This demonstrates a shift in how CIB money is being used in the State of Utah. Rather than being available to support rural communities with fire stations, road work, water projects, and healthcare facilities, this public money is now being granted in much larger sums to build infrastructure that benefits private corporations and promotes the development of oil, gas, tar sands, and oil shale in the state. For example, in December 2018, the SCIC agreed to grant $27.9 million to the SCIC Uinta Rail Line in three phases. The previous maximum grant/loan combination to rural entities for public services was capped at $5 million and rarely totaled that.
The executive director of the SCIC is Mike McKee, you may remember him as a Uintah County Commissioner. He now makes an annual salary of $160,000 that comes directly from CIB funds.
“The coalition is unlike any other entity that comes before this board. That can’t be ignored Mr. McKee. We pay your salary, we pay your administrative expenses entirely. You have no other significant sources of income. We pay your counsel, we pay everything. You’re a child of the CIB board, you’re a child of the state.” CIB Board Member November 2018
SCIC Website: lists current projects
Upcoming Meetings: (every second Friday of the Month)
Meeting Archives: Notes, packets
The Utah Permanent Community Impact Board (CIB):
CIB Website
Meeting Archives: Upcoming meetings (usually the first Thursday of the month), Agenda, notes, packets
Unconventional Oil – A Bad Investment
Try as they might, tar sands and oil shale will never be profitable without using massive amounts of public money to prop up their business models. With low oil prices and a very risky political climate, these upstart companies are having an impossible time securing investors to move forward with their projects.
We are winning, slowly, determinedly, and with lots of fun, by creating a risky business atmosphere for these foolish ventures. Lawsuits slow the process, direct action slows the progress, oil prices fluctuate, and now–with the recent announcement by US Oil Sands that they are drastically slowing down construction of the PR Springs tar sands mine–we have some room to breathe.
But, while the companies lay off workers and bide their time, leaving vast areas in the process of being strip mined, they are also working in our County Governments, in UDOT, with SITLA, and with the CIB to take millions of dollars of public money and spend it on infrastructure that these failing startup companies need. Right now, we need to challenge all of these institutions. We need our money to go towards locally driven, community controlled alternative energy projects, public transportation, and food security, not wasted on a dying, speculative industry that would change our climate beyond imagination.
Remember this?
Tar Sands and Oil Shale Projects on hold or significantly slowed due to “bust”:
US Oil Sands – PR Springs
MCW Tar Sands- Asphalt Ridge
Red Leaf Resources Oil Shale
American Oil Sands – Sunnyside
Enefit Oil Shale
Ambre Energy Oil Shale – Colorado (sold to Red leaf Resources and now on hold)
Ambre Energy Oil Shale – Colorado (sold to Red leaf Resources and now on hold)
What they’re up to the in the meantime (points of intervention):
Bookcliffs Highway – a proposed $3 million/ mile highway connecting the P.R. Spring Tar Sands Mine and Red Leaf Resources to I-70. They currently have no way to get product to market, thus the projects are not viable. The Six County Infrastructure Coalition is trying to secure public money for this project from the State. The Grand County Transportation Special Service District will host a presentation about this on February 11th at 6 p.m. at the Grand Center, 182 North 500 West.
Six County Infrastructure Coalition – “The Coalition’s mission is to plan infrastructure corridors, procure funding, permit, design, secure rights-of-way and own such facilities. Operation and maintenance of these assets will likely be outsourced to third parties,” taken from the SCIC website. This is an industry-sponsored spin on local government. They function to funnel public money to benefit a few private corporation in the oil, gas, tar sands, fracking, potash, coal, and oil shale industries.
MCW is working to obtain “full production” permits from the state to move into continuous production mode and is in the process of implementing several Utah Government recommendations with regards to trucking activities on and off its lease site at Asphalt Ridge.
Enefit – Must soon give up its federal research lease with the state or prove it is making headway towards commercial production. Enefit is going through a BLM process to build a utility corridor to the site which will deliver water, power and natural gas to the Enefit operation and move crude out through a 16-inch pipe.
Red Leaf Resources – Closed up shop, but says they’ll be in full scale production by 2017 with production by 2018.
Low energy prices lead to turmoil, rumors for Utah oil operations
In Utah, scaled down oil shale dreams still alive
Fueling Climate Chaos: Government Board Pours Millions into Industry Coffers
October 1st, 2015
Salt Lake City, UT: Today, Community Impact Board (CIB) members were greeted by banners and signs from climate justice group Canyon Country Rising Tide (CCRT), who was present at this month’s meeting to protest the flagrant use of public money for private companies that are fueling climate change.
The CIB, who claims its role is to alleviate communities impacted by fossil fuel development, allocated $53 million for the construction of a coal export terminal in Oakland, CA in April, in a brazen move to funnel public money into industry coffers. The Board is set to strike again – this time funnelling another $1.35 million for a power line project from Green River into an extraction zone scarred with drilling rigs and mines. While the Board has hitherto been shrouded in bureaucratic anonymity, these recent misallocations of royalties intended for communities has put a magnifying glass onto the CIB and their dirty-secrets.
Dirty, above all, is the right word for the type of development the CIB has fostered: the export terminal in Oakland stands to revitalize the coal industry that is pushing the world further towards climate chaos, while CIB-funded projects such as Seep Ridge Road ($54 million in CIB loans and grants) have catalysed the expansion of extreme fossil fuels oil shale and tar sands in Utah. CCRT asserts that with the increasing economic instability of coal and the looming realities of climate change, the State of Utah needs a serious overhaul of how public money is allocated.
CCRT campaigner Kate Savage asks: “Why are we continuing to prop up a dying industry causing some of the biggest problems we face, when the state could be using these funds to transition our communities towards a renewable energy future? What rural communities in Utah need are secure, healthy and abundant jobs they can count on, not pie-in-the-sky export-terminals.”
CCRT campaigner Sarah Stock says: “There is a revolving door between the CIB and industry, and present and former board members such as Uintah County Commissioner Mike McKee and Transportation Commissioner Jeff Holt stand to profit greatly while the people they represent lose out. It’s time to put people before profits, and start thinking about what will be beneficial for Utah in the long run.”
Ends
