Nebraska Ruling Throws Keystone XL Decision Back to State Department
The court case that the Obama administration cited last April in putting off a decision on the Keystone XL pipeline has concluded, lifting a key obstacle for a project that’s been in limbo for more than six years.
The Nebraska Supreme Court, overturning a lower court’s ruling, allowed the pipeline’s route through that state to stand. Landowners in Nebraska challenged Gov. Dave Heineman’s 2012 approval of the project. Four of the court’s seven judges sided with the landowners, agreeing that the state’s Keystone legislation was unconstitutional. (See an interactive map of the Keystone XL route.)
That number wasn’t enough: The state requires a supermajority of five judges to concur in order to strike down legislation. That means the State Department should now be clear to either approve or reject the controversial $8 billion project, which would carry crude from Canada’s oil sands in Alberta, along with some from North Dakota’s Bakken shale, down to refineries on the Gulf Coast.
While the southern leg of the project has already been built, the northern side awaits U.S. approval because it crosses the boundary with Canada. Proponents say the project will create jobs and boost North American energy security; detractors say it furthers dependence on fossil fuels and hinders progress in addressing climate change.
“The decision is now in Pres. Obama’s hands,” said a statement from Bold Nebraska, and activist group that opposes the pipeline. “This is a bad day for property rights in Nebraska.”
The American Petroleum Institute welcomed the decision. “President Obama has no more excuses left to delay or deny the Keystone XL pipeline,” said API President and CEO Jack Gerard.
The development comes in the midst of another Congressional attempt to secure approval of the 1,179-mile (1,897-kilometer) pipeline. The House votes Friday on a bill that would greenlight Keystone’s northern leg, and the Senate will begin debate on its version of the bill next week.
Passage of a bill in the now GOP-controlled Congress seems assured, but then so is a presidential veto that the White House promised this week, criticizing lawmakers’ attempt to circumvent the existing process. (See related post: “Keystone XL Veto Threat: Does ‘No’ Really Mean No?“)
The State Department said last year it would resume the permit process for Keystone “once factors that have a significant impact on determining the national interest of the proposed project have been evaluated.”
Energy analysts Clearview Partners said in a research note that the Nebraska decision could open the way for the State Department to act “rather quickly.”
“Although the President has recently made comments that appear more skeptical of the pipeline’s economic benefits, we still do not believe he has closed the door to an affirmative [National Interest Determination],” Clearview said. “He has consistently said that advocates have overstated the benefits, not that the project is wholly devoid of them.”
The recent plunge in oil prices offers a double-edged sword when it comes to evaluating those benefits. On one hand, low prices would seem to undercut the benefits of a project meant to boost supply for Gulf Coast refineries that are built to handle the heavier crude that comes from Alberta. However, the expanded capacity from Keystone could help oil companies ramp up production even at lower prices, because it would offer a lower delivery cost than rail or trucks. (See related story: “Do Plummeting Oil Prices Weaken Case for Keystone XL Pipeline?“)
Then, too, Clearview noted that the State Department “quietly signed off” last year on another southbound pipeline project, Enbridge’s Alberta Clipper expansion.
“Right now this is not a debate between Canada and the US, it’s a debate between the President and the American people, who are overwhelmingly supportive of the project,” the Government of Canada, which supports Keystone XL, said in a statement Friday. “We will not comment on the American political process.”
On Twitter: Follow Christina Nunez and get more environment and energy coverage at NatGeoGreen.
You May Also Like
Go Further
Animals
- Octopuses have a lot of secrets. Can you guess 8 of them?
- Animals
- Feature
Octopuses have a lot of secrets. Can you guess 8 of them? - This biologist and her rescue dog help protect bears in the AndesThis biologist and her rescue dog help protect bears in the Andes
- An octopus invited this writer into her tank—and her secret worldAn octopus invited this writer into her tank—and her secret world
- Peace-loving bonobos are more aggressive than we thoughtPeace-loving bonobos are more aggressive than we thought
Environment
- This ancient society tried to stop El Niño—with child sacrificeThis ancient society tried to stop El Niño—with child sacrifice
- U.S. plans to clean its drinking water. What does that mean?U.S. plans to clean its drinking water. What does that mean?
- Food systems: supporting the triangle of food security, Video Story
- Paid Content
Food systems: supporting the triangle of food security - Will we ever solve the mystery of the Mima mounds?Will we ever solve the mystery of the Mima mounds?
- Are synthetic diamonds really better for the planet?Are synthetic diamonds really better for the planet?
- This year's cherry blossom peak bloom was a warning signThis year's cherry blossom peak bloom was a warning sign
History & Culture
- Strange clues in a Maya temple reveal a fiery political dramaStrange clues in a Maya temple reveal a fiery political drama
- How technology is revealing secrets in these ancient scrollsHow technology is revealing secrets in these ancient scrolls
- Pilgrimages aren’t just spiritual anymore. They’re a workout.Pilgrimages aren’t just spiritual anymore. They’re a workout.
- This ancient society tried to stop El Niño—with child sacrificeThis ancient society tried to stop El Niño—with child sacrifice
- This ancient cure was just revived in a lab. Does it work?This ancient cure was just revived in a lab. Does it work?
- See how ancient Indigenous artists left their markSee how ancient Indigenous artists left their mark
Science
- This 80-foot-long sea monster was the killer whale of its timeThis 80-foot-long sea monster was the killer whale of its time
- Every 80 years, this star appears in the sky—and it’s almost timeEvery 80 years, this star appears in the sky—and it’s almost time
- How do you create your own ‘Blue Zone’? Here are 6 tipsHow do you create your own ‘Blue Zone’? Here are 6 tips
- Why outdoor adventure is important for women as they ageWhy outdoor adventure is important for women as they age
Travel
- Slow-roasted meats and fluffy dumplings in the Czech capitalSlow-roasted meats and fluffy dumplings in the Czech capital
- Want to travel like a local? Sleep in a Mongolian yurt or an Amish farmhouseWant to travel like a local? Sleep in a Mongolian yurt or an Amish farmhouse
- Sharing culinary traditions in the orchard-filled highlands of JordanSharing culinary traditions in the orchard-filled highlands of Jordan