Keystone Pipeline Project Chugging Along

by: Anthony F. Della Pelle
19 Oct 2011

Controversy Continues to Surround Canadian Oil Company Seeking Eminent Domain Authority in United States

A recent article on ProPublica.org examined the issues and controversy surrounding the 4,000- mile long TransCanada Keystone Pipeline.  We first discussed this project a year ago on Fox News Channel, where McKirdy & Riskin’s Anthony Della Pelle provided commentary – watch the video here.

Keystone Pipeline discussion on Fox News Channel

The United States State Department will decide by the end of this year if it will permit the pipeline, which will begin in Northern Canada, and moves southward into the United States, through North Dakota, South Dakota, Nebraska, Kansas, Missouri and Illinois to reach refineries in Texas, to be constructed.  Opponents of the project argue that the project will cause irreparable environmental damage similar to other locations where TransCanada’s other pipelines are located.  Additionally, they point to potential conflicts of interest because a TransCanada employee worked for then Presidential candidate Hillary Clinton, who has since become the United States Secretary of State and head of the State Department.

Advocates for the project argue that it would promote American energy independence, while creating construction jobs and provide a boost to the American economy.  However, opponents counter that it is unclear that the oil would actually be sold to Americans, but may instead be exported to other foreign countries.  They further counter that any jobs created by the project would be temporary and limited to a two-year span.

Although public utility companies like this one are often granted a limited right to use eminent domain because the proliferation of utilities is deemed a “public use,” this power must normally be approved by separate government agencies to protect the public.  One potential issue here is whether granting a foreign company this power would actually serve a public purpose if the final product is exported elsewhere.

We’ll be watching the progress of this project, so expect to hear more in the future.

For more on this story, please see the following blog posts and new articles:

Eminent Domain Fight Has a Canadian Twist – New York Times

What Is the Keystone XL Pipeline — and Why Is It So Controversial? – ProPublica.org

Keystone XL pipeline is the wrong target for protesters – Washington Post

Pipeline Review Is Faced With Question of Conflict – New York Times

The author wishes to acknowledge the assistance of Cory K. Kestner, Esq., of McKirdy & Riskin, PA, in the preparation of this article.

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