Branstad: “Laughable” to Suggest Bakken Pipeline Approval Was Sure Thing

Iowa's governor says Big Oil probably hates him but he's received thousands from the industry

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Gage Skidmore/Flickr

Gov. Terry Branstad on Tuesday dismissed accusations that he stacked the Iowa Utilities Board with Bakken pipeline sympathizers so the Texas-based Dakota Access LLC project’s approval would be assured, telling reporters, “It is kind of laughable. There is probably no guy that Big Oil hates more than me.”

Branstad appointed all three of the IUB’s current members, including Nick Wagner, who in February dismissed the idea that concerns over the impact the crude oil pipeline might have on climate change should play a role in the approval process. Although Branstad maintained his ostensible neutrality about the project throughout the process, he also said he wouldn’t oppose the use of eminent domain for it should it be greenlit and last year Lt. Gov. Kim Reynolds received $2,500 from the the political action committee of Dakota Access’ parent company, Energy Transfer Partners.

The governor is also a close political ally – or, in his words to reporters Tuesday, “friend” – of former Texas Gov. Rick Perry, who sits on Energy Transfer’s corporate board of directors. In December 2013, the Des Moines Register noted in its coverage of Branstad’s remarks yesterday, the Iowa governor traveled to a Houston restaurant at Perry’s invitation for a re-election fundraiser attended by wealthy Texas political donors. (The following May, Perry helped out Branstad again, at a fundraiser hosted in Ames; the Bakken pipeline project wasn’t announced by Energy Transfer until that June.)

Campaign finance records show that Branstad received $102,786 from Texas donors during the month of the Texas fundraiser, according to the Register. “But Branstad insisted his strong stance in favor of renewable energy has put him at odds with the petroleum industry, which has been critical of the federal government’s Renewable Fuel Standard,” reporter William Petroski added.

“Oh, come on. I raised a lot more money from Iowa farmers and ethanol producers and people who are interested in wind energy and other things,” Branstad reportedly said. “Yes, I did get some support from my friend Rick Perry, who was a great governor and did a wonderful job of attracting business and jobs to Texas. There are things we can learn from each other, and I appreciate the support that he gave me, but it had nothing to do with oil.”

However, a closer look at those Lone Star State contributions may suggest otherwise. They included:

$10,000 from Austin oilman Alex Cranberg, CEO of Aspect Management Corp., which owns Aspect Energy International, a company that’s invested in energy production domestically and in places as far-reaching as the Kurdish region of Iraq.

$10,000 from James Dannenbaum, CEO of Houston-based Dannenbaum Engineering Corp., whose work includes pipelines.

$5,000 from Brad Tucker, president of Houston-based Mustang CAT, a company that sells Caterpillar bulldozers and excavators for pipeline construction and is part owner of Pipeline Machinery International.

$5,000 from Nick Stefanakis, president of Houston-based Womble Company Inc., which coats pipelines to protect against corrosion with the sort of epoxy responsible for the Bakken pipeline’s green color.

$2,500 from Spencer Armour, president of Plano-based PT Petroleum LLC.

Branstad did also receive $10,000 from Anthoney Buzbee, a high-profile attorney who in 2009 won a $100 million settlement for clients exposed to toxic chemicals at a Texas City oil refinery owned by BP. (The amount was later reduced by $99 million.)

In its report, the Register also mentioned the heat Branstad’s taken over the apparent politically motivated nature of many of his appointments, including members of the IUB (as well as Board of Regents president and Branstad donor Bruce Rastetter). Similarly, Perry faced criticism during his tenure as Texas’ governor for appointing political donors to state government positions. They included billionaire Gulf States Toyota CEO Dan Friedkin and Houston investor James H. Lee, who gave Branstad $10,000 and $6,881.61 (including $1,881.61 in in-kind contributions), respectively.

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Gavin Aronsen is an editor and reporter for and founding member of the Iowa Informer. He previously worked as a city reporter for the Ames Tribune, research assistant to investigative journalist Wayne Barrett at the Village Voice, and in various roles at Mother Jones, where his work contributed to a National Magazine Award nomination for the magazine's digital media coverage of the Occupy Wall Street movement. Email: garonsen [at] iowainformer [dot] com.
  • PH54

    Federal law currently protects oil companies by capping their oil spill liability for economic damages at $134 million—an amount that pales in comparison to the more than $90 billion in profits the five largest oil companies enjoyed in 2014, and is easily surpassed by an oil spill as shown by the 2010 Deepwater Horizon disaster. They are using thug tactics against the taxpayers by spilling oil all over the USA instead of taking their bailout monies and extreme profits to create secure oil transport methods. They are the criminals! Here’s 2016’s hit parades: 2016[edit]

    On January 2, 3 people were injured, and numerous homes were damaged in Oklahoma City, Oklahoma, when a leak gas from a gas main entered a home. Preliminary results indicate that a leak occurred at a weld seam on the gas main.[559]

    On January 9, a 30-inch Atmos Energy gas transmission pipeline exploded and burned in Robertson County, Texas. 4 families nearby were evacuated.[560]

    On January 11, butane leaking from a pipeline storage facility, in Conway, Kansas, forced a closure of a nearby highway for a time.[561]

    On February 14, a 6-inch crude oil pipeline broke near Rozet, Wyoming, spilling about 1,500 gallons of crude oil into a creek bed.[562]

    On February 16, an explosion and fire occurred at a gas plant in Frio County, Texas. 2 employees at the plant were injured.[563]

    On February 24, a 10-inch propane pipeline exploded and burned, near Sulphur, Louisiana. There were no injuries. About 208,000 gallons of propane were lost, and, the cause of the failure was not found.[564][565]

    On March 11, about 30,000 gallons of gasoline spilled from a leaking plug on a pipeline, at a tank farm in Sioux City, Iowa.[566]

    On March 22, about 4,000 gallons of gasoline spilled from a 6-inch petroleum products pipeline in Harwood, North Dakota.[567]

    On April 2, the TransCanada Corporation Keystone Pipeline was observed by a local resident to be leaking, near Freeman, South Dakota. The cause was a crack in a girth weld, and amount of tar sands dilbit spill was about 16,800 gallons.[568][569]

    On April 12, a pipeline at a gas plant in Woodsboro, Texas exploded, killing 2 men, and injured another worker.[570]

    On April 17, a 10 petroleum products pipeline failed in Wabash County, Illinois, resulting in a sheen on the Wabash River. About 48,000 gallons of diesel fuel was spilled.[571]

    On April 29, a 30-inch Texas Eastern/Spectra Energy pipeline exploded, injuring one man, destroying his home and damaging several others. The incident was reported at 8:17a.m., near the intersection of Routes 819 and 22 in Salem Township, Westmoreland County, Pennsylvania. Later, Spectra Energy Corp. announced plans to dig up and assess 263 miles of that pipeline, from Pennsylvania to New Jersey.[572][573]

    On May 20, a Shell Oil Company pipeline leaked near Tracy, California, spilling about 21,000 gallons of crude oil.[574]

    On June 23, a Crimson Pipeline crude oil line leaked in Ventura County, California. Initial reports said the spill size was from 25,200 gallons to 29,000 gallons, but, later reports estimate 45,000 gallons of crude were spilled.[575][576]

    On July 6, a Plantation Pipeline line was noticed to be leaking in Goochland County, Virginia. The spill did not reach nearby waterways.[577]

    On August 12, contractors were working on one of the main lines in Sunoco Pipeline LP’s Nederland, Texas terminal when crude oil burst through a plug that was supposed to hold the oil back in the pipeline and ignited. The contractors were knocked off the platform to the ground, suffering injuries from the fall and severe burns. 7 contractors were injured.[578]

    On September 4, a pipeline broke in Kern County, California, spilling reclaimed water & oil.[579]

    On September 5, a pipeline in Bay Long, Louisiana was hit by dredging operations, resulting in a spill of about 5,300 gallons of crude oil into the water.[580]

  • littlegreenfrog

    Once again Gavin and the Iowa Informer pull back the curtain on the story behind this plunder of the public good for a private corporation and our Governor’s gambling our drinking water for a few pieces of silver.