Developments this week from north of the border should cheer backers of the Hyperion Energy Center proposed for Union County, S.D.

According to a new study, crude production from oil sands in western Canada may more than double to 3.2 million barrels a day by 2020, Bloomberg reports.

For the projection, the London-based Centre for Global Energy Studies and Calgary-based Geopolitics Central assumed average annual global economic growth of 3.6 percent over the next 10 years. Slower economic growth would mean extraction of the crude would rise to 2.4 million barrels a day from about 1.21 million barrels last year.

Hyperion’s proposed refinery would process 400,000 barrels per day from Alberta’s vast oil sands fields. The Texas-based company has not yet secured a supplier or a pipeline to carry the crude to southeast South Dakota.

Canada’s heavy oil sands are more expensive to extract than conventional crude deposits, making them more sensitive to a downturn in the economy. Environmental groups are fighting to slow or stop production of the dirtier crude, which they claim fouls and air and land on both sides of the border.

The Canadian government has mounted its biggest campaign yet to sell key U.S. policy makers on the energy security benefits of the tar sands oil, the Calgary Herald reports, “Canada steps up oil sands push in United States.”

“Canadian Natural Resources Minister Lisa Raitt said she and her staff are lobbying interests in the United States at all levels, trying to send the message that the huge heavy-oil resource in Alberta is being developed responsibly and that U.S. input on environmental fixes is welcome,” the Herald reports.

Is the Obama administration trying to marginalize America’s largest business group?

“The uneasy relationship between the Obama White House and the U.S. Chamber of Commerce has steadily eroded over the past several months, with the business group’s opposition to health care and climate change legislation triggering an all-fronts backlash from the administration,” Fox News reports, “White House targets Chamber.” “The administration is now trying to neutralize the Chamber by doing an end-run around the group and dealing directly with its members.”

“Obama and top aides quietly have met with 50 to 60 big-time corporate CEOs over the past few months in an effort to cultivate their support on key issues — the White House denies that it has encouraged any companies to sever ties with the Chamber.”

Liberal groups have highlighted such firms as Apple cancelling their Chamber membership over climate change legislation. Another influential firm, Nike, resigned its seat on the board of directors.

(It’s somewhat hypocritical of Apple and Nike to support the proposed cap-and-trade legislation pending in Congress. Both companies manufacture their products in third-world countries exempt from limits on carbon emissions. The Chamber’s membership also includes many companies with U.S. factories that would face steep costs to stay in business if cap-and-trade would become law.

Obama’s allies are turning up the heat on the U.S. Chamber as well. A group of small businesses in Iowa, called 1Sky, recently issued a news release in which they criticized the Chamber for not supporting climate change legislation.

As I leave the South Dakota capitol in Pierre, some final thoughts on Thursday’s all-important vote, in which the state Board of Minerals and Environment unanimously voted to grant Hyperion Refining a state air quality permit. Read my full story online, ”Hyperion receives air permit.”

Opponents, which include the Sierra Club and two local groups, quickly promised to appeal the nine-member board’s decision in Circuit Court. The opponents are well funded, says Ed Cable, a leader of Save Union County. And, by all accounts, they have one of the best attorneys in this field on their side.

After the meeting, lead attorney Robert Graham walked out into the hallway, where he received a round of applause from about two dozen opponents who traveled more than five hours on bus from their homes to attend the meeting. (Imagine the reception he would have received if the board had actually denied the permit.)

Graham, an attorney with the powerful Chicago law firm Jenner & Block LLP, promised a spirited appeal saying, “We’ve only just begun to fight.”

According to his bio on the Jenner & Black’s Web site, Graham is founder and chair of of the firm’s Environmental, Energy and Natural Resources Law Practice and the co-author of the nationally recognized environmental law textbook, Environmental Law and Policy: Nature, Law, and Society, Third Edition (Aspen Publishers, 2004), which is currently in use in many of the nation’s law schools.” (more…)

Drove more than five hours today for first-ever visit to South Dakota capital in Pierre. Stopped by capitol building, above, for visit but it was closed for the day.

Night of rest prior to Thursday morning’s meeting of the state Board of Minerals and Environment. After hearing closing arguments from attorneys for and against the proposed Hyperion Energy Center, the nine-member board is expected to vote on Texas company’s application for an air quality permit. An affirmative vote would allow Hyperion to proceed with construction of the $10 billion oil refinery and power plant in Union County.

The board can issue the permit as recommended by Department of Environment and Natural Resources staff, deny it as urged by three groups opposing the project or approve the permit with modifications. The losing side would have the right to appeal the decision within 30 days in state Superior Court.

I’ll be live blogging the proceedings from today’s meeting, which begins at 10 a.m. Please submit any questions you have. I’ll try my best to answer as time permits.

Meanwhile, the Argus-Leader in a lengthy story today speculates on whether controversy a proposed pipeline that would carry crude from Canada , crossing into the U.S. in Wisconsin near Lake Superior would have any bearing on Hyperion’s own future, yet-to-be-announced plans for a pipeline from Alberta’s oil sands fields, “Wisconsin ruling might provide sign for Hyperion.”

Preparing for the five-hour-plus drive to state capitol in Pierre today in advance of Thursday morning’s meeting of the S.D. Board of Minerals and Environment.

After hearing closing arguments from attorneys both for and against the proposed Hyperion Energy Center, the board is expected to vote on the Texas firm’s application for an air quality permit.

From what I can gather, board members have not publicly commented on which way, if any, they may be leaning. But the smart money is on the panel granting the permit.

Even opponents doubt the board would rule against the state Department of Environment and Natural Resources staff, which has recommended approval of the permit. Some of those against also point out the board is appointed by the governor. The current governor, Republican Mike Rounds, is one of the biggest proponents of the $10 billion oil refinery and power plant in Union County.

“I think unfortunately it is a preordained vote because of the pressure from the governor,” said Hyperion opponent Liz Merrigan, who lives just miles from the site of the energy center. Merrigan, a retired teacher, has attended all the air permit hearings, which totaled more than 50 hours over eight days and parts of three months.

Just a reminder, I will be live blogging from the meeting, which begins at 10 a.m. Central Time. Feel free to log on to siouxcityjournal.com and ask questions. I will try to address them as best I can during the proceedings.

A contested hearing over an air quality permit hearing for a proposed oil refinery in Union County, S.D. resumes this morning at the state capitol in Pierre.

The state Department of Environment and Natural Resources has recommended a permit be issued for the $10 billion Hyperion Energy Center, which would be built on 3,800 acres of farm land near Elk Point. The board will decide whether to approve a permit after considering whether the project meets federal air quality standards and uses the best available technology.
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