RUTHFULLY YOURS

As one of his first acts as president, Donald Trump signed presidential memoranda to revive both the KeystoneXL and Dakota Access pipelines by expediting the environmental review process. The Dakota Access pipeline is now in full operation. TransCanada’s annual report gives us an update on the Keystone XL pipeline.

“Keystone XL In February 2017, we filed an application with the Nebraska Public Service Commission (PSC) seeking approval for the Keystone XL pipeline route through that state and received approval for an alternate route on November 20, 2017. On November 24, 2017, we filed a motion with the Nebraska PSC to reconsider its ruling and permit us to file an amended application that would support their decision and would address certain issues related to their selection of the alternative route. On December 19, 2017, the Nebraska PSC denied this motion. On December 27, 2017, opponents of the Keystone XL project, and intervenors in the Keystone XL Nebraska regulatory proceeding, filed an appeal of the November 20, 2017 PSC decision seeking to have that decision overturned. TransCanada supports the decision of the Nebraska PSC and will actively participate in the appeal process to defend that decision. In March 2017, the U.S. Department of State issued a U.S. Presidential Permit authorizing construction of the U.S./Canada border crossing facilities of the Keystone XL project. We discontinued our claim under Chapter 11 of the North American Free Trade Agreement and withdrew the U.S. Constitutional challenge. Later in March 2017, two lawsuits were filed in Montana District Court challenging the validity of the Presidential Permit. Along with the U.S. Government, we filed motions for dismissal of these law suits which were denied on November 22, 2017. The cases will now proceed to the consideration of summary judgment motions. In July 2017, we launched an open season to solicit additional binding commitments from interested parties for transportation of crude oil on the Keystone pipeline and for the Keystone XL project from Hardisty, Alberta to Cushing, Oklahoma and the U.S. Gulf Coast. The successful open season concluded on October 26, 2017. In January 2018, we secured sufficient commercial support to commence construction preparation for the Keystone XL project. We expect to commence primary construction in 2019 and construction will take approximately two years to complete.”

After seven years of delays under the Obama Administration and the then-secretary of State Hillary Clinton, the Keystone XL pipeline has an approved route and a 20-year commitment for the oil it will carry from Canada to Cushing, Oklahoma, from whence it can be distributed wherever needed throughout the United States. TransCanada is negotiating with landowners along the route for the necessary easements. Those easements will put money into American landowner’s pockets.

Currently, construction is expected to begin in 2019 and full operations are expected to commence in 2021. Another 500,000 barrels per day of secure oil supply to add to our expanding domestic production. Energy independence is in our future! And President Trump’s deregulation efforts are bearing fruit.

The author has a small equity position in TransCanada.