Inspector general launches investigation after conflict of interest charges from environmental groups and politicians

This article is more than 8 years old

This article is more than 8 years old

The State Department has agreed to an independent investigation of its handling of the Keystone XL pipeline, after charges of influence peddling and conflict of interest from environmental groups and members of Congress.

In a memo, the State Department inspector general's office appointed a senior official to review charges that the oil industry exerted too much weight over decisions about the pipeline project.

Opponents of the pipeline say the State Department rushed through an environmental review, and was too cozy with lobbyists for TransCanada, the company building the pipeline.

The memo from the IG's office said the investigation would look at those decisions.

"The primary objective of the review is to determine to what extent the Department and all other parties involved complied with federal laws and regulations relating to the Keystone XL pipeline permit process," the memo said.

The memo was obtained by Politico, which broke the story.

The announcement of the review appeared on Monday to deepen the chances that Barack Obama will delay a decision on the pipeline – even until after the 2012 elections as some have speculated.

Environmental groups immediately cast the investigation as a victory for their efforts to block the pipeline, which will carry crude oil from the tar sands of Alberta to refineries on the Texas coast.

Bernie Sanders, the independent senator from Vermont who demanded the IG review [pdf], urged Obama to delay his final decision on the pipeline until after the review.

"At a time when all credible scientific evidence and opinion indicate that we are losing the battle against global warming, it is imperative that we have objective environmental assessments of major carbon-dependent energy projects," Sanders said in a statement.

Environmental groups have accused the State Department of bias and conflicts of interest – especially its hiring of the contractor, Cardno Entrix, to conduct an environmental safety review.

The contractor lists TransCanada as a "major client" on its website.

The groups also dug up a friendly email between State Department officials and TransCanada lobbyists, and noted that several key aides to Hillary Clinton and Barack Obama had gone to work for industry lobbyists after the 2008 elections.

The memo from Harold Geisel, who heads the IG's office, said the review would be conducted at several different offices within the State Department, and would include interviews of officials and examination of key documents.

The Obama administration had been expected to render a decision on the pipeline project by the end of the year, but a number of officials have indicated in the last few weeks that that deadline could slip.

At a sizeable demonstration outside the White House on Sunday – which Obama missed because he was away playing golf - protesters carried signs demanding the president make good on his 2008 campaign promises to act on climate change.

Supporters of the pipeline, meanwhile, claim that the TransCanada project will create thousands of jobs.

That poses a trade-off for Obama, setting the economy against the environment in what is shaping up to be a very tough election season.