REP. GUTIERREZ ASKS SECRETARY OF THE ARMY'S "IMMEDIATE AND PERSONAL ATTENTION" TO IRREGULARITIES IN PUERTO RICO GAS PIPELINE PERMITTING PROCESS

May 17, 2011

Media Contact: Douglas Rivlin (202) 225-8203

FOR IMMEDIATE RELEASE

(Washington, DC) – Rep. Luis V. Gutierrez (D-IL) called on the Secretary of the Army John McHugh to look into the permitting process for a natural gas pipeline construction project across sensitive eco-systems in Puerto Rico.  In an effort to bring transparency and public participation into this process, the Congressman is elevating his concerns surrounding the massive project to the highest levels of government.  The U.S. Army Corps of Engineers (USACE) is the agency that will issue the permit for the project if it is approved.  The Congressman renewed his demand for a Federal Environmental Impact Statement (EIS) and for public hearings.  He also announced he is adding thousands of new documents related to the project to those already available on his web site, the latest of which come from the Environmental Protection Agency (EPA) and were obtained through the Freedom of Information Act.

As the Associated Press reported recently, the 92-mile gas pipeline project, also known in Spanish as the 'Gasoducto,' raises serious environmental and safety concerns.  Close ties between the Puerto Rican Governor and construction interests who will profit from the project, raise serious ethical concerns for the Congressman as well.  The unusual steps being taken by USACE in the permitting process and the appearance of certain conflicts of interest are specific issues the Congressman called to the Secretary's attention.  The letter was a follow-up to an April 6, 2011 letter to the Secretary and is part of a series of inquiries launched by the Congressman into the controversial construction project.  The May 16, 2011 letter reads, in part:

Since I last wrote you, events involving the USACE Jacksonville District, key current and former personnel, and hired consultants for those hoping to construct the pipeline have come to light in the press that demand your immediate and personal attention.

In an unusual move, all of the decision-making related to the permit process, was removed by the USACE from the Caribbean office in Puerto Rico to the Jacksonville District office in Florida.  "This is an unwelcome development because it gives the people of Puerto Rico even less direct ability to have input on the permit process of the project," the Congressman wrote.

Ties between the USACE's Jacksonville District office and one of the main contractors on the project, BCPeabody, of Tampa, Florida, raises concerns about a potential conflict of interest or 'revolving door' between private sector companies and the regulators who oversee them.  In light of the Gulf of Mexico BP oil disaster, and calls by President Obama to look into the "cozy relationship" between regulators and those they regulate, the Congressman writes,

Mr. Secretary, we need to make sure that if an accident or explosion occurs involving the proposed pipeline in Puerto Rico, it will be shown that USACE used all of the powers at its disposal to guarantee the public's and the environment's safety.

The Congressman asks the Secretary to provide records of all communications between permit evaluators at USACE and the companies, contractors, and subcontractors on the project.  These include phone logs, e-mail traffic, and records of in-person meetings.

Finally, the Congressman wants the Secretary to look into the conduct of the head of the USACE's Jacksonville office, who told reporters in Puerto Rico that the project would have "minimal" environmental impact and that a decision on the permits would be rendered shortly.  These statements seem to contradict claims by the USACE and other federal agencies that additional information is still needed and come without an Environmental Impact Statement (EIS), which is the norm for projects of this size and potential risk.  The Congressman renewed his call for an EIS before the permit is granted, writing in his letter, "To say that the environmental impact will be minimal before first having conducted a comprehensive, thorough and complete federal Environmental Impact Statement (EIS) is irresponsible."

The Congressman, through his inquiries with federal agencies, has received thousands of pages of documents, which he is making available through his website.  The latest documents loaded on the site this week -- an additional 1,000 pages -- come from a Freedom of Information Act inquiry by the Congressman with the EPA. 

The Congressman's letter to the Secretary concludes,

The safety of four million U.S. citizens who reside in Puerto Rico is at stake.  I call on you to ensure all laws, rules and regulations are followed -- in addition to common sense -- and to ensure public safety and the integrity of their environment.

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