Judge halts Keystone XL crude pipeline again: Update

Adds comments from TransCanada, President Trump, other updates

A federal judge has ordered TransCanada to stop work on the 830,000 b/d Keystone XL crude pipeline, another setback in the long-delayed project.

US District Court judge Brian Morris in the district of Montana said that a 2014 environmental review of the project by the State Department and other agencies violated sections of the National Environmental Policy Act (NEPA) and the Administrative Procedure Act (APA). This included a failure to analyze the cumulative climate impacts of Keystone XL in combination with other pipelines and needs to add more review on the impact of oil spills, according to the ruling.

"The Court enjoins federal defendants and TransCanada from engaging in any activity in furtherance of the construction or operation of Keystone and associated facilities" until the state department completes a supplement to its 2014 environmental impact statement that complies with NEPA and the APA, the court order said.

TransCanada has been waiting on several court cases and permit decisions before starting construction on the 1,180-mile pipeline that would move Alberta's oil sands over the US/Canadian border to Steele City, Nebraska, which is already linked to Cushing, Oklahoma, and the southeast Texas coast. The company has been working on pre-construction activities.

The case was brought by the Indigenous Environmental Network, the Northern Plains Resource Council and other groups.

TransCanada said in a statement that it has received the judge's ruling and continues to review it. "We remain committed to building this important energy infrastructure project," the company said.

US President Donald Trump, whose administration revived the project last year, said the ruling was "a disgrace" and a political decision by the judge. Trump suggested the case will be appealed to the US Court of Appeals for the 9th Circuit where his administration is "slowly putting new judges."

The Association of Oil Pipe Lines, an industry group, said every review of Keystone XL, including those by the Obama administration, found that pipelines "are the safest and most environmentally protective way to move the energy we need" and that another review will come to the same conclusion.

Environmental groups praised the court's decision.

"This is a complete repudiation of the Trump administration's attempts to evade environmental laws and prioritize oil company profits over clean water and wildlife," said senior attorney with the Center for Biological Diversity Jared Margolis.

The Sierra Club said that the ruling "makes it clear once and for all that it's time for TransCanada to give up on their Keystone XL pipe dream."

The State Department on 21 September released a new court-mandated environmental review of Keystone XL, saying the project would have minor effects on air quality and greenhouse gases. The draft review was released for a 45-day public comment period and the State Department was planning to publish a final environmental impact statement in December.

TransCanada first proposed Keystone XL in 2008, but the project has been delayed repeatedly. Former 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 President Donald Trump's administration in March 2017.

TransCanada said earlier this month it has secured 75pc of the necessary easements for a new Keystone XL route in Nebraska. The new easements are needed after state regulators there approved an alternate mainline route for the line and not TransCanada's preferred route.

TransCanada also said at the time that it is considering joint venture partners or asset sales to help pay for Keystone XL.

The delays on Keystone XL come as Canadian oil producers are dealing with steep price discounts because of a lack of pipeline takeaway capacity.