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Keystone pipeline dispute goes to the Supreme Court

|About: TC Energy Corporation (TRP)|By: , SA News Editor

The Trump administration asks the U.S. Supreme Court to revive a permit program that would allow the Keystone XL pipeline and other new oil and gas pipelines to be built across streams and wetlands with minimal review if they meet certain criteria.

The government's application to the court says a lower court should not have blocked the program, which has been in effect since the 1970s and has been relied on "for thousands of activities annually" by the Army Corps and private companies, Solicitor General Noel Francisco wrote.

"The district court had no warrant to set aside [the permit] with respect to Keystone XL, let alone for the construction of all new oil and gas pipelines anywhere in the country," Francisco wrote.

TC Energy (TRP +2%) last month built part of the disputed Keystone pipeline across the U.S. border, but with the district court's ruling on the permit program, it would be difficult for the company to complete the $8B project.

The pipeline could still reach its planned 2023 in-service date despite current headwinds, TC Energy CEO Russ Girling said today at the J.P. Morgan energy conference.