Keystone XL Fight Ramps Up In South Dakota
International Business Times
Published Oct 29, 2014 12:52PM ET
Keystone XL Fight Ramps Up In South Dakota
By Maria Gallucci - As the Obama administration delays its decision on the Keystone XL pipeline, the battle over whether to build—or block—the proposed conduit is ramping up in the states. In South Dakota this week, regulators gave opponents an important boost by allowing more than 40 environmental groups, tribal leaders and landowner activists to participate in legal proceedings around a critical construction permit.
The state’s Public Utilities Commission on Tuesday granted the opponents formal “party status,” which enables the groups and individuals to present evidence and question witnesses. TransCanada Corporation (TO:TRP), the Keystone XL’s builder, had previously filed paperwork to block the activists from joining the legal process.
At stake is a certificate that would grant TransCanada permission to build a 313-mile segment through South Dakota. The utilities commission initially issued such a permit in 2010 that placed more than four-dozen conditions on the project. Last June however, without an inch of the segment built, the approval lapsed. Now TransCanada must prove to regulators that it can still meet the original conditions laid out four years ago.
If completed, the $5.4 billion Keystone XL would carry heavy tar sands crude oil over 1,179 miles from Alberta, Canada, through Montana and South Dakota before ending in Steele City, Nebraska. From there, it would link up to an existing segment that runs to refineries on the Texas Gulf Coast.
Proponents say the pipeline is critical for expanding Canadian oil development and enabling more oil to flow to foreign markets—and that’s precisely why environmentalists oppose the project. They argue that ramping up production of heavy Canadian tar sands oil would in turn boost global emissions of carbon dioxide, which cause climate change. For activist groups like Bold Nebraska and the Cowboy and Indian Alliance, the re-approval process in South Dakota is a chance to potentially halt or delay a significant slice of the pipeline.
TransCanada has maintained that little about the project has changed physically since 2010, save for “minor variations designed to accommodate landowner concerns and improve constructability,” according to a filing to South Dakota regulators. But the energy firm said the cost of building that segment had more than doubled to nearly $2 billion over that time frame while TransCanada awaited a federal go-ahead.
Get The News You Want
A hearing date in South Dakota hasn’t yet been set.
In neighboring Nebraska, meanwhile, the state’s highest court is considering a ruling that could cancel the proposed 300-mile segment in that state. The Obama administration, which has the final say on the Keystone XL since it crosses an international boundary, said it will wait until the Nebraska dispute is resolved before rejecting or approving a presidential pipeline permit.
Written By: International Business Times
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.