WASHINGTON, January 16 (Sputnik) — Major Canadian oil company TransCanada responsible for Keystone XL Pipeline construction along with other foreign oil companies operating in the United States has to pay taxes into the US Oil Spill Liability Trust Fund, US Senators Maria Cantwell and Edward Markey said on Friday.
“There is a loophole, believe it or not, in the American tax code that allows tar sand oil from Canada like that that would flow through the Keystone pipeline not to pay into the federal trust fund to respond to oil spills in the United States,” Sen. Markey said during the Keystone XL Pipeline debate on the Senate floor.
There are approximately 30 oil companies importing tar sands crude oil into the United State that are getting a “great deal,” Markey continued.
Keystone XL Pipeline bill in its current version is going to cost the United States “hundreds of millions of dollars,” Markey stressed, referring to Congressional Budget Office estimate.
“Tar sands [industry] has a loophole and does not pay into the Oil Spill Liability Trust Fund. Both my colleagues Senator Markey and Senator Wyden are going to be putting forward amendments to close this loophole,” ranking member of the Energy and Natural Resources Committee Sen. Cantwell said during the debate.
Cantwell added that tar sand oil is the dirtiest oil that is produced today, however there are no established mechanisms for effective tar sand oil spill clean up.
“I think that we should slow down this process and make sure that we are getting things like the Oil Spill Liability Trust Fund right, and that we are getting this added to this legislation before it moves out of the Senate,” Cantwell concluded.
Last Friday, the US House of Representatives passed the Keystone XL pipeline bill. Now the bill is open for amendments on the Senate floor, which will be voted for on Tuesday.
The Keystone XL Pipeline, an expansion of currently running Keystone Pipeline System, is planned to carry heavy crude oil through America’s heartland from Canada’s tar sands to the US Gulf Coast for further exportation.
