Keystone XL Pipeline Hits Another Snag As Judge Cancels Critical Permit
The political terrain for the Keystone XL pipeline is looking rough again.
On Wednesday, U.S. District Judge Brian Morris revoked a critical water-crossing permit for the $8-billion project, citing the U.S. Army Corps of Engineers’ inadequate assessment of effects on endangered river species.
“Regardless of whether they have the cross border segment ... Keystone XL has basically lost all of its Clean Water Act permits for water crossings,” Anthony Swift of the Natural Resources Defense Council, which challenged the permit, told the Associated Press.
What Happened
The Keystone XL pipeline was set to slice a 1,200-mile route from Canada to Nebraska to transport 830,000 barrels of crude oil a day. After 12 years of setbacks,
TC PIPELINES LP (NYSE: TRP) finally broke ground on the embattled oil project on April 6.
The latest ruling does not halt the work, but TC Energy must make adjustments to secure the permit before crossing rivers. A company spokesman told the AP that TC Energy is “committed to building this important energy infrastructure project” despite the hold-up.
What It Means For Keystone XL
Morris’ ruling may invalidate future dredging projects that, like Keystone XL, advance under a blanket authorization granted by the Army Corps in 2017.
Grow America’s Infrastructure Now told The Hill that the setback exposes investment risks and could heighten the uncertainty for potential investors in national infrastructure projects.
"The pipeline’s decade-long permitting battle has energy developers thinking twice before investing in new energy infrastructure projects,” the organization told The Hill.
“Infrastructure development, like Keystone XL, requires regulatory certainty and a straightforward permitting process that ensures these investments, which cost hundreds of millions of dollars, are able to proceed with construction and safely operate once completed.”
TC Energy Trades Down
Two other challenges to the Keystone project were set to be heard in court Thursday.
TC Energy shares were down 2.21% at $45.10 at the time of publication.
Related Links:
Nebraska High Court Decision Win For Keystone Pipeline
Keystone Pipeline Will Create Thousands Of Jobs, But How Many Will Be Permanent?
Photo by shannonpatrick17 via Wikimedia.
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