Another Keystone XL setback: environmental review ordered

WASHINGTON — In a setback for the Trump administration, a federal judge has blocked a permit for construction of the Keystone XL oil pipeline from Canada and ordered officials to conduct a new environmental review.

Environmentalists and tribal groups cheered the ruling by a U.S. district judge in Montana, while President Donald Trump called it “a political decision” and “a disgrace.”

The 1,184-mile pipeline would begin in Alberta and shuttle as much as 830,000 barrels a day of crude through a half dozen states to terminals on the Gulf Coast.

Trump has touted the $8 billion pipeline as part of his pledge to achieve North American “energy dominance” and has contrasted his administration’s quick approval of the project with years of delay under President Barack Obama.

The Trump administration has not said whether it would appeal the new ruling. The State Department said it was reviewing the decision, but declined further comment, citing ongoing litigation.

The pipeline was first proposed by Calgary-based TransCanada in 2008. It has become the focal point of a decadelong dispute that pits Democrats, environmental groups and Native American tribes who warn of pollution and increased greenhouse gas emissions against business groups and Republicans who cheer the project’s jobs and potential energy production.

U.S. District Judge Brian Morris put a hold on the project late Thursday, ruling that the State Department had not fully considered potential oil spills and other impacts as required by federal law. He ordered the department to complete a new review that addresses issues that have emerged since the last environmental review was completed in 2014.

The review could take up to a year to complete.