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US Court of Appeals refuses to resume work on TransCanada's Keystone XL pipeline



TransCanada lost bids to release the ban on the Keystone XL pipeline. This was a development that could delay the construction of an $ 8 billion US project over a year.

Calgary-based companies and the US Department of State have made "urgent" moves to lift a ban on pre-construction work.

But on Friday, the US Court of Appeals for the Ninth Circuit denied the motion.

In a court document, TransCanada was able to return the project for one year from the planned completion date of 2021 due to postponement after March 15th, resulting in a loss income of hundreds of millions of dollars.

According to the decision, TransCanada said in a statement, "We are currently evaluating the decision and reviewing options."

& # 39; Most Important Decisions & # 39;

Stephan Volker, an attorney representing the project's opposition to the Indigenous Environment Network and the North Coast Reverse Alliance, called the appellate court's decision "a central role".

"I think this is the most important verdict in this case," Volker told CBC News.

"I think this decision is critical because we do not believe that Secretary of State Donald Trump will be re-elected. Another administration said it was unwilling to sign such an ecologically disastrous project.

"It is unlikely that the Supreme Court will overturn this ruling," he added.

The Keystone XL pipeline carries 830,000 barrels of crude oil per day. Hardisty, Alta., To Nebraska. This pipeline is connected to the original keystone running at a Texas refinery.

The opposition of the Keystone XL pipeline will be demonstrated at the Dodge Street pedestrian bridge during the rush hour in Omaha, Neb., In 2017. (Nati Harnik / Canadian Press)

This project, first announced in 2005, was in limbo after experiencing considerable political, environmental and indigenous opposition.

that much Obama The administration rejected Keystone. XL I gave permission. Trump, however, grabbed his presidential thumb and then breathed life into the project.

In August, the project faced another difficulty when US District Court Judge Brian Morris ordered the US Department of State to conduct a complete environmental review of the revised route to the Keystone XL crude oil pipeline.

Morris paused the pre-construction work in November until the State Department completed a supplemental review, including side effects that could affect climate change and wildlife.

Next month, Montana courts have given the firm permission to continue pre-construction work, such as engineering, awarding contracts and holding meetings.

However, according to a document filed in court in January, TransCanada had to lay off about 650 contract workers with pre-construction activities, such as the preparation of pipe yards and labor camps.

In February, the company requested an appeal before the court on March 15, requesting relief from the order.

& # 39; Very substantial damage & # 39;

In the legal complaint filed earlier this year Transcanada Officials said the March date is the key to starting construction by August. Failure to meet deadlines will result in no work being done in 2019.

"A one-year delay in the construction schedule will have very significant consequences, Transcanada, " NoriRamsey, Transcanada The technology vice president and senior vice president of the liquid project wrote in the affidavit in January.

Ramsay said that due to a one-year delay "there will be a loss of profit before taxes, depreciation and amortization (EBITDA) of approximately $ 999 million from March 2021 to March 2022 .

"The one-year delay in the pipeline construction will be very damaging to third parties, including US workers and TransCanada customers who depend on the project's current running date," Ramsay said.


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