President Issues New KXL Pipeline Permit

President Trump signed a new order March 29, issuing a new permit for the Keystone XL Pipeline. The permit would allow construction work in northeastern Montana even while the case on whether or not construction will continue is pending in the 9th Circuit Court of Appeals. The new permit replaces the previous permit issued March 2017 to TransCanada Corp., the developer of the Keystone XL Project, and grants permission to “construct, connect, operate and maintain” the pipeline in U.S. territory, specifically providing permission to build a pipeline facility in Phillips County.

On Nov. 8, 2018, Federal Court Judge Morris in Great Falls blocked the March 2017 order and the construction of the pipeline in U.S. District Court. He ruled the Trump administration had not fully considered the environmental effects of the pipeline, which is required under the National Environmental Policy Act, and ordered a new review. At that time, all construction related activities to the pipeline were halted. Earlier this year, TransCanada Corp. attorneys again argued in front of Judge Morris in Great Falls, requesting the injunction he placed be lifted in order to keep the time table associated with the completion of the project on track. On Feb. 15, Judge Morris denied the request to begin construction of worker camps, however he did state TransCanada could perform limited activities such as the construction and use of pipe storage and container yards, in addition to preliminary work such as purchase of materials, land surveys and finalizing contracts. The Trump administration proceeded to appeal the decision to the 9th Circuit Court of Appeals, where a decision is expected later this year.

The legal basis for the new permit is unclear, and it’s also unclear where the project will go from here. Opponents call this permit a “last-ditch effort to save the decade-old proposed project” while supporters provided praise from TransCanada officials and Senator Steve Daines. In a statement Daines said “President Trump’s announcement today is a big win for Montana and our nation. After over 10 years of review, this pipeline that will create roughly 800 construction jobs and spur millions in revenue for Montana’s rural communities and schools, will finally become a reality. I applaud President Trump for his leadership and commitment in getting this done.”

The Northern Plains Resource Council, the lead plaintiff in the lawsuit who sued TransCanada late last year said in a statement, “This new effort appears blatantly illegal on its face and is an unprecedented effort by a United States President to supersede the judicial branch of the United States government. The Keystone XL Project is a dangerous project that would threaten the drinking water for tens of thousands of Montanans downstream from its Missouri River Crossing.”