Keystone pipeline

A decision by the US District Court in Montana deals a blow to the TransCanada project, which is designed to transport heavy crude from Alberta to Nebraska.

A federal judge in Montana ordered the US State Department to do a full environmental review of a revised route for the Keystone XL crude oil pipeline, a move that could delay the project and prove a setback for the Trump administration.

Weights used in the original construction of TransCanada’s Keystone Pipeline in South Dakota were identified as a preliminary cause of the failure that resulted in a 210,000-gal spill in November.

TransCanada’s Keystone pipeline leaked an estimated 210,000 gallons of oil onto agricultural land in northeastern South Dakota, but state officials say they don’t believe the leak polluted any surface water bodies or drinking water systems.

Opponents of the Keystone XL pipeline vowed on 10 August to block construction of the controversial project if Nebraska regulators approve the proposed route later this year.

In February, President Obama vetoed legislation that would approve the construction of TransCanada’s Keystone XL Pipeline. The 7-year regulatory saga is emblematic of the regulatory and public relations burdens on US energy projects. With the rejection of the bill, the burden will grow.