On Friday, March 24, the U.S. Department of State (DOS) and TransCanada Corporation jointly announced that DOS has issued a Presidential Permit, which gives the company federal approval to construct, connect, operate, and maintain the Keystone XL pipeline.
A Presidential Permit is required for certain physical projects that cross the U.S. border. Before DOS issues such a permit it must make a determination that the project and the permit serve the national interest. That determination is based on factors that include foreign policy, energy security, and environmental, cultural, and economic impacts as well as compliance with applicable law and policy. The permit was signed by Under Secretary of State for Political Affairs Thomas A. Shannon.
The planned pipeline is a 1,100-mile-project that would move about 830,000 barrels of bitumen petroleum a day from fields in Alberta, Canada, to U.S. refineries. The line is designed to run through Montana, South Dakota, and Nebraska and connect to an existing pipeline that runs from Cushing, Oklahoma, to Port Arthur, Texas. In a statement, TransCanada says it will continue to engage key stakeholders and neighbors throughout these states “to obtain the necessary permits and approvals to advance this project to construction.”
Denial Preceded Paris Accord
TransCanada first proposed the Keystone XL pipeline in 2008. In November 2015, the Obama administration denied the company’s application for a permit. At that time, the administration said the project would have a negligible impact on U.S. energy security and would have raised the risk of spills contaminating local water supplies along the route. Just as significantly, the administration’s decision preceded by one month President Obama’s deep involvement in completing the Paris Climate Agreement. One argument against Keystone is that development will increase emissions of GHGs to the atmosphere.
Trump Overrules
The current DOS notes that issuance of the permit accords with a January 24, 2017, memorandum from President Trump, which overruled denial of TransCanada’s application by the Obama administration. The memorandum invited TransCanada to “promptly resubmit” its application to the DOS for the Presidential Permit. Two days later, the DOS received the resubmitted application from TransCanada.
“This is a significant milestone for the Keystone XL project,” said Russ Girling, TransCanada’s president and CEO. “We greatly appreciate President Trump’s administration for reviewing and approving this important initiative, and we look forward to working with them as we continue to invest in and strengthen North America’s energy infrastructure.”
The company also announced that it would discontinue legal challenges – under both the North American Free Trade Agreement and the U.S. Constitution – it mounted against the U.S. after the Obama administration denied the permit application.
More information is at https://www.keystonepipeline-xl.state.gov.