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Montana federal judge orders halt to Keystone XL

A federal judge in Montana has put the brakes on the Keystone XL pipeline. U.S. Federal Court Brian Morris quashed the presidential permit for the Keystone XL pipeline project on Nov.
Donald Trump
In 2016, seen here, Donald Trump said he would approve Keystone XL. He did. Now a Montana federal judge has thrown out that approval, in part because the decision didn't jive with the reasons former president Barack Obama decided against it. File photo

A federal judge in Montana has put the brakes on the Keystone XL pipeline. U.S. Federal Court Brian Morris quashed the presidential permit for the Keystone XL pipeline project on Nov. 8, throwing the massive on-again, off-again project into a quandary, yet again.

The lawsuit was brought on by the Indigenous Environmental Network, North Coast Rivers Alliance and Northern Plains Resource Council. They take issue with the State Department, alleging TransCanada violated National Environmental Policy Act (NEPA).

The ruling puts the kybosh on further work until the government more fully reviews the pipeline’s environmental impact, and gives reason to why it changed its mind with regards to climate change.

This comes as TransCanada had been gearing up for full-on construction of the pipeline in the second half of 2019 after a decade of delay. In July the corporation started inspecting and, as needed, refurbishing its massive stockpiles of pipe that have been sitting since 2011, in preparation for usage in the project.

This decision comes after TransCanada had spent the better part of a year sorting out its right-of-way in Nebraska, which had to be altered from its original route before being approved.

TransCanada said in an emailed statement, “We have received the judge’s ruling and continue to review it. We remain committed to building this important energy infrastructure project.”

Keystone XL had been all but dead when then-president Barrack Obama denied a presidential permit in 2015. That changed with the election of President Donald Trump in November 2016. In one of his first acts after being sworn in, Trump invited TransCanada to resubmit its application, which he then approved a few months later in the spring of 2017 (referred to in the case as a record of decision, or ROD). His reversal of the 2015 decision by Obama on the pipeline, in particular with regards to the consideration of climate change as a reason to kill the project, factored into the judgement, without directly referring to either president.

President Trump told reporters on Nov. 9, “It was a political decision made by a judge. I think it’s a disgrace — 48,000 jobs. I approved it. It’s ready to start.”

Saskatchewan Minister of Energy and Resources Bronwyn Eyre said in an emailed statement, “We are very disappointed in the ruling today that delays, once again, this much-needed pipeline.

“Without new pipeline capacity, demand for rail transportation will continue to increase, which will inflate transportation and other costs for Western Canadian oil producers, as well as other rail-dependent industries such as mining and agriculture. Additional pipeline capacity is also necessary to address the additional supply expected following the completion of several oil sands projects in Alberta over the next few years.

“We are pleased that TransCanada Corporation remains committed to the Keystone XL project, and we continue to advocate for pipeline access to Canadian tidewater, so that producers aren’t forced to export into an increasingly glutted US market, which discounts the price of Canadian oil.”

Premier Scott Moe posted on Facebook, “Today's news around the Keystone XL Pipeline being blocked is disappointing for Western Canadian producers who need market access for energy.

“And for Saskatchewan, as the oil differential stays near record highs, it impacts everyone in this province.

“We need to get these pipelines built.”

The 36-inch pipeline is to run from Hardisty, Alta., Canada’s principal crude oil hub, to Steele City, Neb. The southern phase of the project, which runs from Nebraska to the Gulf Coast, has been competed and in operation for several years.

The project’s website notes, “Keystone XL still requires federal Bureau of Land Management permits and authorizations in Montana.”