US court removes roadblock to Keystone pipeline


(MENAFN- AFP) A US state court on Friday dismissed a suit challenging a proposed route of the Keystone XL oil pipeline through Nebraska, giving a dramatic victory to supporters of the controversial project.

The decision by Nebraska's Supreme Court reversed a 2012 ruling that determined that the governor had violated the state's constitution by bypassing regulators and approving the route of the Canada-to-US pipeline.

"On appeal, the state contends that the landowners lacked standing to sue and that L.B. 1161 is constitutional," the court said in a statement, referring to law which allows major oil carriers to bypass regulatory procedures.

The verdict comes on the day the House of Representatives votes on a measure authorizing construction of the pipeline.

The high-court ruling removes one of the biggest legal roadblocks to constructing the mega-project, originally proposed in 2008 by builder TransCanada to allow crude oil from Alberta to be transported south to refineries on the US Gulf Coast.

President Barack Obama has declined to sign off on the project, expressing environmental concerns, and the White House re-stated Friday he would veto the measure if it reaches his desk.

"Regardless of the Nebraska ruling today, the House bill still conflicts with longstanding Executive branch procedures regarding the authority of the President and prevents the thorough consideration of complex issues that could bear on US national interests," deputy White House spokesman Eric Schultz said, adding that the State Department was examining the ruling.

Republicans see Keystone as a top priority and have been pushing to authorize construction of the project without need for Obama's approval.

Republicans now control both chambers of Congress. While passage of Keystone legislation is expected, overcoming a presidential veto requires a two-thirds majority, which would be a heavy lift.

In the Senate, at least six Democrats support Keystone's construction, joining all 54 Republicans, but 67 Senate votes are needed to override a veto.

Republicans applauded the court ruling, seeing it as a move that should ease the logjam on the project.

"President Obama is now out of excuses for blocking the Keystone pipeline and the thousands of American jobs it would create. Finally, it's time to start building," House Speaker John Boehner said.

Senator Heidi Heitkamp, a Democrat from North Dakota where part of the pipeline is routed, agreed.

"Six years is beyond long enough," she said. "The right decision for our country is to approve the project."

- 'Dirtiest oil' on earth -

But Senate Democrat Maria Cantwell demanded comprehensive "due process" be given to the project by regulators, and urged lawmakers not to intervene to score political points.

She said it was "unusual that the US Senate has been asked to vote on (a) bill siting a pipeline thru US simply because Canadian company wants us to do so."

Republicans argue the 1,179-mile (1,900-kilometer) project is good for national energy security and would generate more than 40,000 construction jobs.

Democrats point to a State Department assessment that says just 35 permanent jobs would be created.

Keystone would funnel crude from Alberta's oil sands, which environmentalists and other critics deride as "tar sands" that take more energy and water to process.

House Democrat Frank Pallone took to the House floor Friday to slam the Keystone project as "enabling production of the dirtiest oil on the planet."

Republicans counter that moving oil by pipeline releases far fewer emissions than transporting it by rail or road.


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