Published: Sat, November 10, 2018
Research | By Dana Schwartz

Montana Judge Puts Brakes On Keystone XL

Montana Judge Puts Brakes On Keystone XL

But on Friday McCuaig Boyd said Notley's New Democratic Party government had always supported the Keystone XL plan.

The project has met sustained opposition from environmental advocacy groups, who argue the pipeline would be especially damaging to the climate because it would mean extracting thick, low-quality oil from Canada's oil sands, with tree-cutting and energy consumption in the process.

The judge added that the Trump administration had not adequately accounted for potential declines in oil prices, which have been depressed since the crash of 2014, and which would have a major effect on the long-term viability of such a project.

The company building the pipeline, TransCanada, said in a statement they are reviewing the ruling but they "remain committed to building this important energy infrastructure project". "I think it's a disgrace", he told reporters at the White House.

The massive project remains one of the most controversial infrastructure proposals in modern American history.

U.S. President Donald Trump approved a permit for the pipeline in January 2017, reversing a 2015 decision by predecessor Barack Obama.

The pipeline would have added 830,000 barrels of daily shipping capacity - about 4.2 per cent of US oil demand - when it came into service, which was expected to happen in 2021.

"We have received the judge's ruling and continue to review it". There's simply no excuse for approving this awful project.

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TransCanada, which had been planning the pipeline for much of this decade, had planned to begin construction next year.

He said it could take several months before the State Department is able to issue a new environmental impact statement, putting a timeline for a decision "well into 2019".

Becky Mitchell, chairwoman of the Northern Plains Resource Council, a plaintiff in the Montana legal action against Keystone XL, said her environmental organization is thrilled with the ruling.

On another pipeline battlefront, the Nebraska Supreme Court heard oral arguments last week from the attorneys from the pipeline's landowners there - the Ponca Tribe of Nebraska, the Yankton Sioux Tribe and the Sierra Club.

Though the court ruled the Trump administration did not violate the Endangered Species Act as the environmental and indigenous organizations behind the lawsuit had claimed, the court did call on the administration to update reports on potential impacts to endangered species in light of the updated information on oil spills and leaks.

"It's emblematic of what we're seeing with the Trump administration, which is a very fast and sloppy reversal of prior a way that doesn't adhere to the rule of law", Prange said. "It's not over for us, we're just going to keep on going ahead".

The judge barred both TransCanada and the U.S. from "from engaging in any activity in furtherance of the construction or operation of Keystone and associated facilities" until the U.S. State Department completes a supplemental review.

A Montana federal judge's ruling that threatens to further delay TransCanada Corp.'s (TRP.TO) Keystone XL pipeline comes at one of the worst possible times for the Canadian oil industry.

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