South Dakota court dismisses Keystone XL challenge

The South Dakota Supreme Court dismissed an appeal by Native American tribes and a non-profit group seeking to challenge a state permit for TransCanada's 830,000 b/d Keystone XL oil pipeline.

The court did not rule on the merits of the case, but said that a lower court lacked jurisdiction to hear the appeal.

"Even though the Keystone XL pipeline may pose significant risks, we must in every case first conclude that subject-matter jurisdiction exists," the court said.

The non-profit Dakota Rural Action, the Yankton Sioux Tribe, and the Cheyenne River Sioux Tribe had challenged a recertification of the Keystone XL state permit. The South Dakota Public Utilities Commission issued a permit for the project in June 2010 and recertified it in January 2016.

An appeal of the recertification was denied in June 2017 and the case was further appealed to the South Dakota Supreme Court.

TransCanada said it was pleased with the Supreme Court decision but declined to comment further.

Dakota Rural Action did not immediately respond to a request for comment.

The $8bn Keystone XL would transport crude from Alberta's oil sands to Steele City, Nebraska, which already links to the oil hubs at Cushing, Oklahoma, and the southeast Texas coast.

TransCanada has started preparing for construction and is still negotiating easements in Nebraska as it waits for clarity on the legal and regulatory issues.

Other major cases against the pipeline are pending. Dozens of Nebraska landowners are challenging that state's decision to approve an alternate route for Keystone XL and the case has been fast tracked to the Nebraska Supreme Court.

Meanwhile, two federal court cases are pending in Montana which challenge the US presidential permit issued to the pipeline.

TransCanada first proposed Keystone XL in 2008 but it was delayed repeatedly. The administration of US President Barack Obama in 2015 blocked Keystone XL after years of review, citing environmental concerns.

The project was revived last year, receiving a cross-border permit from the current administration in March 2017.