Key­stone XL set­back seen as ex­pen­sive

Penticton Herald - - CANADA - By The Cana­dian Press

CAL­GARY — The Cana­dian oil in­dus­try re­acted with frus­tra­tion and bit­ter­ness Fri­day af­ter a U.S. judge or­dered a halt to the Key­stone XL pipe­line project un­til it passes fur­ther en­vi­ron­men­tal re­view.

The de­ci­sion on Thurs­day means longer de­lays in find­ing a way to drain a glut of oil in West­ern Canada that has driven price dis­counts to mul­ti­year highs and stalled in­vest­ment, said Tim McMil­lan, CEO of the Cana­dian As­so­ci­a­tion of Pe­tro­leum Pro­duc­ers.

“It’s a vul­ner­a­bil­ity that we can’t con­trol and will cost us hun­dreds of mil­lions if not bil­lions of dol­lars as a na­tion and thou­sands of jobs,” he said Fri­day.

“And the only rea­son it does have such a mas­sive im­pact on us is self-in­flicted wounds here at home on projects that could have given us re­silience against this sort of rul­ing.”

U.S. Dis­trict Judge Brian Mor­ris found Thurs­day that the po­ten­tial im­pact of Tran­sCanada Corp.’s $10-bil­lion pipe­line had not been con­sid­ered as re­quired by fed­eral law. En­vi­ron­men­tal­ists and Na­tive Amer­i­can groups had sued to stop the project, cit­ing prop­erty rights and po­ten­tial oil spills.

The judge, who was ap­pointed by for­mer pres­i­dent Barack Obama, is­sued a fed­eral court or­der block­ing a Trump ad­min­is­tra­tion per­mit for con­struc­tion of the pipe­line.

Tran­sCanada re­mains com­mit­ted to the project, spokesman Terry Cunha wrote in a brief email on Fri­day, adding the com­pany has re­ceived the judge’s rul­ing and is re­view­ing it.

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