China Eyes Alberta's Oil Sands As State Department Delays Keystone XL Pipeline Decision

While interests in both the USA and Canada are awaiting a State Department decision on a proposed pipeline linking northern Alberta's oil sands with Texas, Chinese companies are proposing a pipeline of their own linking the vast reserves with the Pacific Ocean.

The oil sands of this Canadian province are so big that they will be able to serve both of the world's largest economies as production expands in the coming years. But that will mean building at least two pipelines, one south to the Texas Gulf Coast and another west toward the Pacific, and that in turn means fresh environmental battles on top of those already raging over the costly and energy-intensive method of extracting oil from sand.

Most believe that both will eventually be built. But if the U.S. doesn't approve its pipeline promptly, Canada might increasingly look to China, thinking America doesn't want a big stake share in what environmentalists call "dirty oil," which they say increases greenhouse gas emissions.

Alberta has the world's third largest oil reserves, more than 170 billion barrels. Daily production of 1.5 million barrels from the oil sands is expected to nearly triple to 3.7 million in 2025. Overall, Alberta has more oil than Russia or Iran. Only Saudi Arabia and Venezuela have more.

Alberta is one of the few places where oil companies can invest, as the majority of the world's oil reserves are controlled by national governments. Only 22 percent of the total world reserves are accessible to private sector investment, 52 percent of which is in Alberta's oil sands, according to the Canadian Association of Petroleum Producers.

At issue are environmental concerns over two proposed pipeline projects. The Northern Gateway Pipeline would pump oil from Edmonton, AB over the Rockies to a new maritime terminal in Kitimat, BC for export to China. China's state oil company, Sinopec [NYSE: SHI] reportedly has a stake in excess of US$ 5 billion in the plans drawn up by Alberta-based Enbridge [NYSE: ENB/TSX: ENB].

Map detailing already existing pipelines and proposed expansion

Meanwhile, running to the south is the Keystone XL project, much of which is already in place, but Phase 1 takes a circuitous zig-zag route through Manitoba before stretching south across the border to Steele City, NE. From there, the pipelines diverge with one heading east to Patoka, IL and the other heading south to Cushing, OK (See map above). The proposed extension (Phase 4) by pipeline owner TransCanada [NYSE: TRP/TSX: TRP] would bypass Phase 1 and take a more direct route from Alberta by cutting through eastern Montana, then western South Dakota and Nebraska. Phase three of the project would involve expanding the pipeline south from Oklahoma to the Houston area.

Natural oil sands seepage into Alberta's Athabaca River

So right off the bat, this KeystoneXL pipeline expansion would be providing Americans with jobs and an important energy source from a politically stable ally in the region. Sounds like a win-win- doesn't it?

Well- not to the usual suspects. Interesting how last year, Cap & Trade co-author Rep Henry Waxman (D- CA30) was concerned about the possible environmental impact of the Keystone XL project but now the House Democrat is worried that the eeeeeeevil Koch Brothers- the de-facto progressive boogeyman since late 2010- might financially benefit from the pipeline's construction- because apparently we cannot have abundant oil from Canada if a single Republican donor stands to benefit from it [curious how they aren't quite as dilligent on legislative or policy decisions that would affect....say...Jeffery Immelt- NANESB!].

'Green' energy advocates often (and rightly) cite our growing dependence on an energy source that primarily originates from a decreasingly stable parts of the world. Yet whether it's hydrofracking in the Marcellus Shale, offshore oil drilling in the Gulf of Mexico or ANWAR, the same 'Green' energy advocates suddenly deem those energy sources off-limits.

Since the proposed KeystoneXL pipeline expansion crosses the US/Canada border, the final say in the matter is ultimately left up to the State Department, which is expected to make its final decision after a multi-agency review later on this year [A word of caution- leaving the matter up to the State Department could be a means for the White House to avoid making an unpopular political decision ahead of 2012- NANESB!]

Here's the thing that really bothers me- should they successfully derail the KeystoneXL project, it's not as though the oil sands will continue to sit there untapped. There is still the matter of growing demand from China. From the American perspective, one of the few things we have in our favor at the moment is that there's perhaps even more local opposition to the Northern Gateway pipeline project then there is the KeystoneXL. There is also concerns about tankers navigating the 55-mile inlet known as the Douglas Channel in order to get between Kitimat and the Pacific Ocean.

Highway of Heroes- A Canada Day Tale From Not Another New England Sports Blog

Photo- Military Mom At Home

In honor of Canada Day today, I thought it would be appropriate to look into the Highway of Heroes phenomenon in the province of Ontario.

For the Canadian military, it is standard practice to have an autopsy performed on any serviceman or woman killed in the line of duty. The bodies of Canadian soldiers killed in Afghanistan are flown to the CFB Trenton Air Force Base and then driven about 100 miles to the west where the autopsy is performed at the Centre for Forensic Sciences in Toronto.

The procession has been taking place since 2002 and is always given a police escort the entire way. Much of this journey includes Ontario Highway 401, a freeway sometimes known as the Kingsway.

With the very first of the casualties being repatriated one final time, Pete Fischer- a photographer for Northumberland Today- noticed a crowd of about 30 onlookers, including a pair of policemen, gathered on an overpass and saluting as the hearses made their way down the 401. From there, the crowds from the townships and counties the procession passed through would steadily grow. Canadian flags, handmade signs and ribbons would adorn some overpasses while police officers or firefighters in uniform would park their vehicles alongside the 401 or an overpass and salute the procession.

In his bid to have the province officially recognize the Trenton-Toronto stretch of the 401 as the Highway of Heroes, Fischer recounted:

Every person who stands on a bridge will tell you it’s a feeling like no other. As you wait, you talk with people who have been there before, who you’ve come to know. People smile, share feelings, talk about how many times they’ve stood on various bridges. It’s a mix of pride and sadness.

When the convoy of vehicles is seen approaching, murmurs in the crowd can be heard: “Here they come.” There’s silence as people get ready. Then, there’s a sudden sea of arms waving Canadian flags, wanting to let family members in the procession know we are there for them, that we share their pain and are proud to be Canadian.

It’s not unusual to see a soldier’s hand waving a beret from a hearse, or a family member waving from a limousine, to acknowledge the people on the bridge. Those waves are simple gestures, but more than enough for everyone on a bridge to know in that split second that everyone has made a connection to the people in those vehicles.

Rain or shine, an impromptu, grassroots honor guard is present along ramps and overpasses of the 401 to pay their respects for the fallen one final time.

In August 2007, those advocating for official recognition got their wish as the province unveiled new signs along the 401 designating the 100-mile stretch the Highway of Heroes.

More recently, a stretch of the Trans-Canada highway through British Columbia was also re-named the Highway of Heroes at the urging of the Royal Canadian Legion, veterans and family members of the more than dozen BC natives killed in Afghanistan.

Keep in mind that aside from the Winter Olympics or Don Cherry, Canadians by and large tend to shy away from wearing their patriotism on their sleeves. I have nothing else to add other than I thought that was a very moving and sincere gesture by the folks living in some of these towns along the 401 to pay their last respects to Canada's fallen soldiers.

Borderline Psychosis- The Often Overlooked Northern Border Edition: GAO- Only 32 miles of Canadian Border 'Secure'; Smugglers Pipeline in Northern NY

Looking north from the Whitetail, MT border crossing- Mike Stebelton/ Daniels County Leader

A study released in February indicates that just over 32 miles of the nearly 4,000 mile US/Canadian border is considered 'secure' according to the Government Accountability Office (GAO).

The Department of Homeland Security (DHS) states the threat of terrorism from the northern border is higher than from the southern Mexico border, given the large expanse of area with limited law enforcement coverage. DHS reports networks of illicit criminal activity and smuggling of drugs, currency, people, and weapons across the northern border.

The report focuses on whether federal agencies are working together to secure the vast stretches of the border owned by the federal government.

The study points out critical gaps in security along the U.S.-Canadian border that limit the ability of Customs and Border Protection to fully secure the border—gaps including a lack of interoperable communications systems and limited sharing of intelligence and information between local and federal officials.

U.S. Customs head Alan Bersin told a US Senate Subcommittee earlier this month that even though the Canadian border sees far fewer arrests than the US/Mexican border, the Canadian border is considered a 'more significant threat' by Customs and DHS.

Although certainly not marred by the bloody narco-violence like Mexico, there are concerns that radical Islamists would attempt to enter the USA through Canada to carry out attacks. In December 1999, an Algerian national was arrested at Port Angeles, WA after entering the country from Victoria, BC when a search of his vehicle turned up plastic bags filled with explosives and some homemade timing devices.

MICHIGAN: Drug traffickers flying in private aircraft have taken to making their drops at small, rural and sometimes unstaffed airports along some border states.

The bust by federal agents didn't happen on the southwestern border. It was in Michigan's rural Thumb region next to a soybean field. The remote airport here in Sandusky offers a smooth runway at any hour to anyone who needs it, a perfect landing spot for brazen drug smugglers who can cross the Great Lakes from Canada in minutes.

Beefed-up enforcement along the Mexican border has made smuggling more challenging for criminal cartels using the major southern routes, but drugs continue to flow across the porous northern border through airstrips like this one as officials look for new ways to fight back.

Tracking rogue planes at low altitude with their transponders off is “like trying to pick a needle out of a haystack,” said John Beutlich of U.S. Customs and Border Protection, who oversees air and marine operations from Washington state to Maine.

“Shoot, we're just a big cherry to pick and didn't realize it,” said Joe Allen, manager of the Sandusky airport, 145 kilometres northeast of Detroit.

He installed a fence to keep cars from meeting planes at the runway, but the property is not staffed at night. Border agents could offer just two signs asking people to call an 800 number if they see something unusual.

Canada is a significant source of high-quality marijuana and the amphetamine Ecstasy. More than 2 million doses of Ecstasy were seized on the northern border in 2009 compared to just 312,000 in 2004, the Drug Enforcement Administration said, offering a snapshot of what's popular and what gets confiscated.

Most shipments come by road. But the 2009 flight from Ontario to Michigan, the subject of a recent federal trial, provided insight into drug operations that use small planes. Officials don't know how frequent such flights are but consider the vulnerability alarming.

Matthew Moody and nephew Jesse Rusenstrom, both from Amherstburg, Ontario, were the couriers captured that night in Sandusky. Their job was to enter the country through Detroit, meet the Canadian plane and deliver the drugs to others in the U.S. They also put 27 kilograms of cocaine worth more than $500,000 on the return flight to Guelph, Ontario.

Matthew Moody and nephew Jesse Rusenstrom, both from Amherstburg, Ontario, were the couriers captured that night in Sandusky. Their job was to enter the country through Detroit, meet the Canadian plane and deliver the drugs to others in the U.S. [In addition to the 79kg of pot and 400,000 ecstacy pills they had flown in and were apprehended with] they also put 27 kilograms of cocaine worth more than $500,000 on the return flight to Guelph, Ontario.

It was just one in a series of shipments. Mr. Rusenstrom said he met the drug plane at least 10 times at other tiny airports in the Thumb region — Marlette, Ray, Lapeer — as well as in Greenville in western Michigan and an airport in Pennsylvania. The pilot activated runway lights from the cockpit, a standard practice in aviation.

Mr. Rusenstrom, testifying at the trial of an accomplice, Robert “Romeo” D'Leone, said hundreds of airports were studied on Google Maps.

“We would go around looking for airports, seeing if there was fences or cameras,” the 21-year-old told jurors.

Mr. D'Leone, who lives in the Toronto area, stopped his trial and pleaded guilty on April 14. Mr. Rusenstrom and Mr. Moody co-operated, pleaded guilty and were recently sentenced to time served in custody. The U.S. still wants to extradite four others in Ontario who are accused of major roles, including the pilot.

Some jurors were alarmed by the revelations during the D'Leone trial.

“You always hear Homeland Security has an eye on everything. It's surprising that airfields aren't manned 24 hours,” Robert Simpson, 47, told The Associated Press.

The Sandusky airport has spent $2,000 on cameras and hopes to install more.
“We're outside radar,” Mr. Allen, the manager, said, running his finger over a map of Michigan's Thumb. “You can come and go as you please. You don't even have to file a flight plan.”

The minimal help he received from border authorities — warning signs — had to be fixed before he posted them: They referred to suspicious boats, not planes.

[What is it with Homeland Security and thinking signs are the answer!?- NANESB!]

NEW YORK: Another locale popular with smugglers and organized crime on both sides of the border is the Akwesasne Indian Reservation just outside of , which straddles the borders between New York State, Quebec and Ontario along the St Lawrence River.

The area's unique geography and patchwork of jurisdictions on both sides of the border has had the attention of smugglers and bootleggers since Prohibition. In more recent years, local residents will either run contraband across the border themselves- either in snowmobiles during wintertime or motorboats when the St Lawrence is navigable- or charge landing fees to smugglers for using their property.

Illegal immigrants, hydroponic marijuana and Ecstasy are usually smuggled into the USA from the Canadian side while illegal firearms, cocaine and untaxed tobacco or alcohol make their way north. Some estimates say that 20% of Canadian grown marijuana smuggled into the USA moves through the Akwesasne/St Regis reservation.

While there are some cigarette factories on the US side of the reservation, the sale of tax free cigarettes on reservation stores has caught the attention of groups like the 'Ndrangheta, Hells Angels and Bulgarian Mafia who will often purchase cigarettes in bulk then turn around and sell the untaxed cigarettes in high tax municipalities like New York City, Montreal or Toronto.

Terrorist organizations such as Hezbollah and the Real IRA have also raised funds through trafficking untaxed cigarettes in the last decade.

Report: 81 Year Old Fugitive Whitey Bulger Dead, Cremated in Central America

Reports are circulating over the weekend that fugitive octigenarian extortionist, murderer and drug trafficker James J. 'Whitey' Bulger had recently died of a heart attack in Costa Rica and his girlfriend had the remains cremated.

A fugutive since December 1994 and on the FBI's 10 most wanted list since 1999, Bulger is wanted by the Justice Department and prosecutors in Boston for multiple counts of murder, drug trafficking, extortion and RICO viloations.

Throughout the 1980s, Bulger leveraged his relationship with FBI agent John Connolly and Massachusetts State Police Lt. Richard Schneiderhan as well as his own status as an informant to eliminate rivals or informants and consolidate power as his Providence, RI-based rivals in the Patriarca crime family were left reeling after a series of Federal indictments.

A year ago, FBI agents and police in British Columbia, Canada were canvassing bookstores around the city of Victoria on Vancouver Island in search of Bulger. So far, the FBI has remained skeptical regarding the latest rumor about Bulger's death and cremation in Central America.

Here is the official statement from the Boston FBI office, as delivered by Special Agent Gregory Comcowich:

“The FBI has no credible information to indicate that Bulger is deceased. Until the FBI receives credible verified information that he has died, the FBI will continue its fugitive investigation.”

As one of Whitey's victims put it: “If I were Whitey, this is exactly the story I’d want out there. Not only is he dead, but the body is gone.” But then again, considering that it was almost a year ago to the day that the Feds were looking for Bulger in Canada, this latest rumor could be a hoax pulled off by the remnants of the Winter Hill gang or Bulger himself.

[Hat Tip: Howie Carr; Friends of Ours]

RCMP: Anti-Tank Weapon With Live Ammunition Discovered Abandoned Next to BC Highway

Crews contracted by BC Hydro to clear brush from underneath power lines discovered a loaded anti-tank weapon not 20 feet from the Trans Canada Highway on Friday.

The Royal Canadian Mounted Police and a Canadian Forces ordinance disposal unit were called to secure the area about 25km north of Victoria BC and take custody of the device.

The weapon was identified as an M72 Light Anti-tank Weapon (a predecessor to the US Army's AT-4). RCMP Sgt. Rob Webb said that the weapon appeared to be at that location for a few weeks before being discovered.

I'm not sure why a loaded anti-tank weapon would be abandoned by the side of the road in Canada, but it does seem pretty disturbing in light of today's other events. Police elsewhere in British Columbia have said they seized a similar weapon in a raid on a marijuana growing operation in a rural area outside of Kamloops earlier this year. So there may be nothing more to it than that, but it seems extremely foolish to dismiss this report with a mere "Oh come on now, that could be anybody's loaded rocket launcher abandoned by the side of the road."

Also keep in mind that for the failed 1999 Millennium Bombing plot, one of the perpetrators was discovered attempting to enter the USA through Port Angeles, WA with explosives after taking a car ferry from Victoria, BC.