Texas and other red states sued the Biden administration for canceling the $8 billion Keystone XL pipeline, stepping up a legal fight over the controversial pipeline that is extending into a third presidential administration.
“The executive’s unilateral decision to revoke the Keystone XL permit is contrary to the constitutional structure to which the states agreed at the time of ratification,” the states said. “The executive’s decision also encroaches upon the states’ abilities to steward and control the lands within their borders.”
The states said in the complaint they will lose out on “tens of millions of dollars” in tax revenue from the construction and operation of the Keystone XL, In Montana, South Dakota, and Nebraska, the total estimated property tax from the Keystone XL project in the first full year of operations is approximately $55.6 million, according to the complaint.
The pipeline permit, which would connect oil sands in Canada to U.S. refiners, was approved by the Trump administration in 2019 after previously being rejected by President
Attorneys general from 19 states, including Alabama, Missouri, Nebraska, North Dakota, Oklahoma, Ohio, Utah and Wyoming, joined in the Texas and Montana lawsuit.
“The argument that transporting crude oil via pipeline is worse for the environment than by rail or shipment is preposterous and has been disproven numerous times, even by the Obama-Biden State Department,” said Oklahoma Attorney General
Canadian pipeline giant
Alberta also threw its weight behind Keystone XL last year, committing $5.3 billion in investment and loans for the project.
“Currently we are examining all options following the executive order, including looking at all avenues – including trade agreements – to recoup our investment if the project,” the Premier of Alberta’s office said in an emailed statement.
If built, the pipeline would stretch some 1,200 miles (1,900 kilometers) from Alberta oil sands to Steele City, Nebraska, to connect with existing infrastructure to move oil to Gulf Coast refineries.
(Updates with background, details from complaint)
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