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Keystone XL Pipeline Halted by Nebraska Ruling

February 20, 2014

A Nebraska court ruled Wednesday that a law passed in 2011 improperly allowed Gov. Dave Heineman to give TransCanada eminent domain power to advance the Keystone XL pipeline project in Nebraska. The decision regarding eminent domain should have been made by the Nebraska Public Service Commission, ruled Lancaster Judge Stephanie Stacy.

The 2011 law was challenged by three landowners who say the pipeline would harm ground and water supply for ranchland in the area. The judge’s decision halts the progress of the project that has been approved by other states along the pipeline route but was applauded by Keystone opponents. The ruling is being appealed by state Attorney General Jon Bruning.

The Nebraska decision comes at a critical time when approval of a federal permit for the pipeline is under consideration by President Obama and Secretary of State John Kerry.

The decision is a disappointment to TransCanada officials who says the proposed route through Nebraska is the most efficient and direct pathway to transport oil south to the Gulf.

“TransCanada continues to believe strongly in Keystone XL and the benefits it would provide to Americans – thousands of jobs and a secure supply of crude oil from a trusted neighbor in Canada,” said spokesman Shawn Howard.

An analysis in a State Department report says construction of the 1,179 mile pipeline would create jobs and add $3.4 billion (0.02 percent) to the US gross domestic product. The magnitude of the project is expected to benefit industrial construction as well as the steel industry.

Gibraltar Industries weighed in on the Keystone project saying it could have “meaningful improvement in our industrial product sales.”

“I think there’s going to be some regulatory wrangling until the final approval of that pipeline occurs. But I would imagine if it were to occur today, if approved, by the time it’s constructed, it could benefit some of our grating products in 6 to 9 months, 10 months out of approval,” said Gibraltar CFO Kenneth Smith.