Judge blocks pipe­line per­mit, or­ders re­view

Star-Telegram - - Business - BY MATTHEW DALY

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 half­dozen 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 Cal­gar­y­based 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.

New top­ics in­clude the cu­mu­la­tive ef­fects on green­house gas emis­sions of Key­stone XL and a re­lated pipe­line that brings oil from Canada; the ef­fects of cur­rent oil prices on the pipe­line’s vi­a­bil­ity; up­dated mod­el­ing of po­ten­tial oil spills; and the project’s ef­fect on cul­tural re­sources of na­tive tribes and other groups along the pipe­line’s route.

The re­view could take up to a year to com­plete.

En­vi­ron­men­tal­ists and Na­tive Amer­i­can groups had sued to stop the project, cit­ing prop­erty rights and pos­si­ble spills.

Becky Mitchell, chair­woman of the North­ern Plains Re­source Coun­cil, a plain­tiff in the case, said her or­ga­ni­za­tion is thrilled with the rul­ing.

“This de­ci­sion sends Tran­sCanada back to the draw­ing board,” Mitchell said, call­ing the rul­ing “the re­sults of grass­roots democ­racy in ac­tion, win­ning for wa­ter and peo­ple.”

Tran­sCanada said in a state­ment that it was re­view­ing the judge’s 54page de­ci­sion.

“We re­main com­mit­ted to build­ing this im­por­tant en­ergy in­fra­struc­ture project,” Tran­sCanada spokesman Terry Cunha said.

En­vi­ron­men­tal groups de­clared vic­tory and pre­dicted the long-de­layed project will never be built.

The court rul­ing “makes it clear once and for all that it’s time for Tran­sCanada to give up on their Key­stone XL pipe dream,” said Doug Hayes, a se­nior at­tor­ney with the Sierra Club, the na­tion’s largest en­vi­ron­men­tal group.

The fight over the project has spanned sev­eral pres­i­den­cies and in­volved stand­offs be­tween pro­test­ers and law en­force­ment.

Af­ter years of le­gal wran­gling, Obama re­jected a per­mit for the pipe­line in 2015. The com­pany re­sponded by seek­ing $15 bil­lion in dam­ages.

EVAN VUCCI AP file

Pres­i­dent Don­ald Trump an­nounces the ap­proval of a per­mit to build the Key­stone XL pipe­line last year.

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