Judge Blocks the Disputed Keystone XL Pipeline in a Setback for Trumps Energy Agenda

Judge Blocks the Disputed Keystone XL Pipeline in a Setback for Trump\s Energy Agenda

Federal judge blocks construction of Keystone XL pipeline

A federal judge in Montana has blocked construction of the $8 billion Keystone XL Pipeline to allow more time to study the project's potential environmental impact.

The Great Falls Tribune reports U.S. District Judge Brian Morris' order on Thursday came as Calgary-based TransCanada was preparing to build the first stages of the oil pipeline in northern Montana. Environmental groups had sued TransCanada and The U.S. Department of State in federal court in Great Falls.

Morris says the government's analysis didn't fully study the cumulative effects of greenhouse gas emissions, the effects of current oil prices on the pipeline's viability or include updated modeling of potential oil spills.

The 1,184-mile (1,900-kilometer) pipeline would transport up to 830,000 barrels of crude a day from Alberta, Canada and Montana to facilities in Nebraska.

Quotes delayed at least 15 minutes. Real-time quotes provided by BATS BZX Real-Time Price. Market Data provided by Interactive Data (New Terms & Conditions). Powered and Implemented by Interactive Data Managed Solutions. Company fundamental data provided by Morningstar. Earnings estimates data provided by Zacks. Mutual fund and ETF data provided by Lipper. Economic data provided by Econoday. Dow Jones & Company Terms & Conditions.

WASHINGTON, Nov 9 — A federal judge yesterday halted construction of the Keystone XL oil pipeline, arguing that President Donald Trumps administration had failed to adequately explain why it had lifted a ban on the project.

The ruling by Judge Brian Morris of the US District Court for the District of Montana dealt a stinging setback to Trump and the oil industry and served up a big win for conservationists and indigenous groups.

Trump granted a permit for the US$8 billion (RM33.4 billion) conduit meant to stretch from Canada to Texas just days after taking office last year. He said it would create jobs and spur development of infrastructure.

In doing so the administration overturned a ruling by then president Barack Obama in 2015 that denied a permit for the pipeline, largely on environmental grounds, in particular the US contribution to climate change.

The same environmental analysis that the department carried out before denying the permit in 2015 was ignored when the department turned around last year and approved it, the judge argued.

“An agency cannot simply disregard contrary or inconvenient factual determinations that it made in the past, any more than it can ignore inconvenient facts when it writes on a blank slate,” Morris wrote.

He added: “The department instead simply discarded prior factual findings related to climate change to support its course reversal.”

The judge also argued that the State Department failed to properly account for factors such as low oil prices, the cumulative impacts of greenhouse gases from the pipeline and the risk of oil spills.

Yesterdays ruling is temporary, and requires the government to do a more thorough review of how the project might affect the climate, cultural resources and wildlife. The Trump administration can appeal to a higher court.

The pipeline is designed to run from tar sand oil fields in Canadas Albert province, through Montana, South Dakota and part of Nebraska, to existing facilities in that last state.

The pipeline was being prepared by TransCanada. Construction of the US leg had been scheduled to begin next year.

Environmental and indigenous groups sued TransCanada and the State Department in March to halt the project.

“Todays ruling makes it clear once and for all that its time for TransCanada to give up on their Keystone XL pipe dream,” Sierra Club senior attorney Doug Hayes said in a statement.

“The Trump administration tried to force this dirty pipeline project on the American people, but they cant ignore the threats it would pose to our clean water, our climate, and our communities.” — AFP


Posted in World