A federal appeals court has refused to lift the ruling of a Montana federal judge that blocks construction on the Keystone XL oil pipeline.
That ruling could add a new delay for the $8 billion pipeline project from western Canada to the U.S. Midwest, Kallanish Energy reports.
TC Energy, the Canadian company behind the pipeline, had been gearing up for full construction in 2020.
The order also impacts other new pipeline projects being developed under a streamlined federal water permit from the U.S. Army Corps of Engineers
The U.S. Court of Appeals for the Ninth Circuit said the ruling by U.S. District Judge Brian Morris will stand, at least for now, while the full appeal proceeds.
The California-based court denied a request for a stay by the Trump administration, TC Energy and other energy groups to lift Morris’ order, pending the appeal.
As a result, TC Energy is not permitted to cross 688 streams in Montana, South Dakota and Nebraska until the appeal is completed.
The appeals court said the appellants failed to demonstrate that they would likely succeed on the merits of their case, if they go to trial.
The court also said the appellants have not shown they would suffer irreparable harm if Morris’ ruling stays in place.
The appeals court said its previously issued schedule still stands. That calls for filing of briefs in late September.
On April 15, Morris in Great Falls, Montana. had ruled that the Corps of Engineers had violated the federal Endangered Species Act in approving a Nationwide Permit 12 for the Keystone pipeline.
Morris had ruled that the water permit system could be used for other infrastructure projects such as power lines but not for new oil and gas pipelines.
The industry says such blanket approvals are essential in cases where pipelines cross hundreds of streams and analyzing each crossing is costly and not necessary. Critics say a more thorough review of stream crossings is necessary.
The Keystone XL pipeline will be 1,209 miles in length: 327 miles in Canada and 882 miles in the U.S.
It would run from Hardisty, Alberta, to Steele City, Nebraska, where it would connect to pipelines to Illinois and to the Gulf Coast. It would transport 830,000 barrels per day.
It has been held up by legal challenges in the courts for years.
It is seen as major way for Canada to get its crude oil to markets in the U.S. by easing pipeline bottlenecks. It was first proposed in 2008.
It was killed in 2015 by former President Barack Obama because of its climate change impacts and later revived in 2017 by President Donald Trump.
This post appeared first on Kallanish Energy News.