TC Energy terminates Keystone XL Pipeline project

FILE - In this Nov. 3, 2015 file photo, the Keystone Steele City pumping station, into which...
FILE - In this Nov. 3, 2015 file photo, the Keystone Steele City pumping station, into which the planned Keystone XL pipeline is to connect to, is seen in Steele City, Neb. A federal judge on Wednesday, Aug. 15, 2018, ordered the U.S. State Department to conduct a more thorough review of the Keystone XL pipeline's proposed pathway after Nebraska state regulators changed the route, raising the possibility of further delays to a project first proposed in 2008. (AP Photo/Nati Harnik, File)(AP)
Updated: Jun. 9, 2021 at 4:25 PM CDT
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SIOUX FALLS, S.D. (Dakota News Now) - The parent company behind the long-disputed Keystone XL Pipeline announced Wednesday that it has terminated the project.

The end of the pipeline project comes following the suspension of construction by President Biden on his first day in office. TC Energy says it reviewed its options and consulted with partners but is terminating the project.

In January, President Biden revoked TC Energy’s Presidential Permit, which was issued by former President Trump in 2017, halting construction. Biden’s executive order said, “Leaving the Keystone XL pipeline permit in place would not be consistent with my Administration’s economic and climate imperatives.”

The pipeline drew criticism over a number of years from a variety of activists, namely environmental and Native American activists.

In March, South Dakota and 21 other states sued the Biden administration over the cancellation. Governor Noem supported the lawsuit and the Keystone XL pipeline project.

“The Keystone XL Pipeline would’ve benefitted South Dakota towns for decades. It would’ve brought jobs, growth to small businesses, and funding for local schools,” Gov. Noem wrote in March.

On Wednesday, TC Energy says it will continue to work with regulators, stakeholders, and Indigenous groups to meet environmental and regulatory commitments during the termination of the project.

South Dakota Congressional delegation responded to the news Wednesday.

Representative Dusty Johnson called the decision a “shame.”

“Pipeline is the safest way to transport oil. Decades and millions of dollars were invested into this project and more jobs will certainly be lost. What a shame.”

Senator John Thune said President Biden is ignoring the “reality of our nation’s energy demands.”

“I have no illusions about how some people feel about pipelines, but in cancelling this project, President Biden ignored the reality of our nation’s energy demands and denied a timely conversation about infrastructure modernization. Keystone XL went through multiple exhaustive environmental reviews, and its emissions were to be offset with investments in renewable energy. Really, it was a model for environmentally responsible oil transport. Still, the extreme environmental wing of the Democrat Party has chosen to again put its agenda blindly ahead of American jobs and American energy security. I’m disappointed that President Biden went along with their demands and that it has come to this. I’m afraid this will send a chilling signal to companies looking to make significant investments in modernizing our energy infrastructure.”

Senator Mike Rounds said the pipeline cancellation won’t stop product from traveling, “Nonetheless that petroleum product that’s in Canada will still be utilized. The question is will it be shipped to Canada or will it be shipped by rail to locations in the United States? Most certainly not as efficient, not as environmentally friendly.”

Governor Kristi Noem tweeted Wednesday, echoing former President Trump’s campaign slogan. “President Biden is killing American energy. We will continue to fight for a secure, affordable, America-first energy supply.”

The 1,210-mile pipeline extension was planned to carry roughly 830,000 barrels of oil a day from Alberta to Nebraska, where it would’ve connected to existing pipelines reaching the Gulf Coast.

The pipeline project was originally rejected by the Obama administration in 2015 over environmental concerns.

This is a developing story. Check back for updates.

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