Arab Press

بالشعب و للشعب
Friday, Jun 05, 2026

Trump's fast-tracking of oil pipelines hits legal roadblocks

Trump's fast-tracking of oil pipelines hits legal roadblocks

The Trump administration's effort to cut red tape and speed up major energy projects has backfired in the case of the three biggest U.S. pipelines now planned or under construction.
All three have been stalled by successful legal challenges by environmental groups alleging the administration failed to apply the regulatory scrutiny required under the law.

The Republican administration tried to accelerate permits for two multi-billion-dollar natural gas lines and jumpstart the long-stalled Keystone XL crude oil pipeline that would start in Canada. Judges halted construction on all three over the past two years, ruling that the administration granted permits without conducting adequate studies or providing enough alternatives to protect endangered species or national forests.

The delays have caused the two giant gas pipelines - Dominion Energy Inc's Atlantic Coast and EQM Midstream Partners LP's Mountain Valley - to increase their cost estimates by hundreds of millions of dollars, according to the companies. The Atlantic Coast pipeline may never be completed unless the U.S. Supreme Court overturns a lower-court decision blocking its planned route, analysts said.

Lawsuits alleging regulatory lapses are not new, but they were unsuccessful during the administration of Trump's predecessor, Democrat Barack Obama. Plaintiffs lost five separate lawsuits alleging regulatory failures during Obama's administration, according to a Reuters review of court filings for major interstate gas pipes built since 2010.

"Environmental groups definitely have been going after these pipelines more aggressively," said Amy Vazquez, Houston-based partner at the law firm of Jones Walker, who specializes in energy litigation. "It's probably because they're having a fair bit of success."

The White House declined to comment. An Energy Department spokeswoman did not comment on the litigation but said the administration remains committed to streamlining energy infrastructure development.

D.J. Gerken, senior attorney with the Southern Environmental Law Center in Asheville, North Carolina, represented the Sierra Club and other environmental groups in cases challenging the Atlantic Coast pipeline. He said the administration's rush to help industry move faster invited the legal challenges.

"Pressure from the utilities that stand to benefit from this project and the Trump administration produced flawed permits," he said.

'MYSTERIOUS' REGULATORY REVERSAL

In the case of Dominion's 600-mile (966-km) Atlantic Coast gas pipeline, from West Virginia to North Carolina, the U.S. Forest Service originally expressed skepticism about the project in 2016 when Obama was president, requesting alternative designs. But after Trump took office, the Forest Service changed course, and issued permits and a waiver for the line to cross the Appalachian Trail on national forestland in Virginia.

Petitioners including the Sierra Club, an environmental advocacy organization, sued the Forest Service, alleging the agency violated three federal acts in issuing a construction permit.

In December 2018, the U.S. Fourth Circuit Court of Appeals vacated the Forest Service decisions, with Judge Stephanie Thacker noting in her ruling that "the Forest Service's serious environmental concerns that were suddenly, and mysteriously, assuaged in time to meet a private pipeline company's deadlines."

The court said the Forest Service lacked authority to allow Dominion to build across the Appalachian Trail, which is administered by the Department of Interior. The Forest Service declined to comment.

In July, in another Atlantic Coast case brought by groups including the Sierra Club and Defenders of Wildlife, the Fourth Circuit vacated a U.S. Fish and Wildlife Service permit. Chief Judge Roger Gregory ruled that the agency, in "fast-tracking" decisions, lost sight of its mandate to protect threatened species.

The U.S. Fish and Wildlife Service declined to comment.

Atlantic Coast's original cost estimate of $6 billion to $6.5 billion has risen to $7 billion to $7.5 billion, the company said. The projected completion has shifted from late 2019 to late 2021.

The U.S. Supreme Court in October agreed to hear the Appalachian Trail case and could overrule the decision halting construction across that route.

Dominion has stopped construction on the pipe since December 2018. Spokesman Aaron Ruby said the company is confident the high court will rule in its favor and "uphold the longstanding precedent allowing pipeline crossings of the Appalachian Trail.”

RISING COSTS, LEGAL RISKS

The Fourth Circuit appeals court also stopped work on EQM’s 303-mile (488-km) Mountain Valley gas pipe from West Virginia to Virginia in June 2018, agreeing with the Sierra Club and other plaintiffs that permits issued by the Army Corps violated West Virginia rules related to stream crossings.

The state has since altered its rules, and the U.S. Army Corps of Engineers is in the process of issuing new permits for this pipeline and Atlantic Coast. But the Sierra Club is still challenging a Fish and Wildlife Service permit in a case that also is being heard by the Fourth Circuit.

EQM originally expected to complete Mountain Valley by the end of 2018 at a cost of $3.5 billion. The company said publicly that it expected the pipeline, which is mostly complete, will cost up to $5 billion and enter service in mid-2020.

Diana Charletta, chief operating officer at EQM, said that recent court decisions "have brought uncertainty and a high-level of scrutiny to the agencies’ decisions."

Officials at both Dominion and EQM dispute that approvals were fast-tracked. Dominion pointed out that it filed its application to build Atlantic Coast in 2014.

"I don't think any person can look at the regulatory review process for Atlantic Coast pipeline and say that it was fast-tracked," said Ruby, the Dominion spokesman.

EFFORT TO REVIVE KEYSTONE STALLS

TC Energy Corp's $8 billion Keystone XL pipeline, originally blocked by Obama in 2015, was revived by Trump in 2017 with the issuance of a presidential permit for the line, which would ship crude from Canada to the U.S. Gulf Coast.

Federal Judge Brian Morris in Montana blocked work on the pipe in November 2018, citing a lack of due diligence by federal regulators regarding greenhouse gas emissions and Native American land rights.

The Trump administration tried to circumvent that ruling by rescinding its original presidential permit and issuing a new one in March. That second permit now faces legal challenges from Native American groups.

TC Energy said it continues to monitor U.S. legal and regulatory issues while it plans construction. “We are committed to Keystone XL as it remains an important project for our company and for North America,” said Terry Cunha, spokesman for TC Energy.

Canadian producer Suncor Energy said in early September that the uncertain U.S. political landscape makes it unclear that the pipeline will be built. "That's one a lot of people are doing soul-searching about right now," said Suncor CEO Mark Little.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
Global Critical Mineral Alliances Expand as Western Nations Move to Counter Chinese Supply Dominance
United States Imposes Fifty Percent Tariffs on Mexican Steel and Aluminum Ahead of Trade Pact Review
European Union and China Head Toward Major Trade Conflict Over Clean Technology Exports
United States Economic Growth Severely Downgraded to One Point Six Percent as Stagflation Fears Mount
World Health Organization Warns Central African Ebola Epidemic is Outpacing Containment Efforts
United States Treasury Department Conditions Sanctions Relief on Reopening of the Strait of Hormuz
Iranian Air Defenses Intercept and Destroy United States Military Drone Over Bushehr Province
Iranian Armed Forces Launch Ballistic Missiles Toward Unspecified Targets Prompting Regional Condemnation
United Nations Secretary-General Warns Global Order Facing Highest Level of Conflict Since 1945
Israel Issues Sweeping Evacuation Orders in Southern Lebanon Amid Intensified Hezbollah Conflict
Russia Announces Systemic Military Strikes Targeting Ukrainian Defense and Energy Infrastructure
United States and Iranian Negotiators Reach Draft Agreement to Extend Ceasefire and Resume Nuclear Talks
United Nations Security Council Deeply Divided Over United States Capture of Venezuelan President
US and Iran Exchange Direct Military Strikes Amid Fragile Gulf Ceasefire
World Health Organization Warns of Catastrophic Ebola Outbreak in DR Congo
Russia Threatens New Wave of Strikes on Ukrainian Infrastructure and Embassies
Scientists Warn Atlantic Ocean Currents Could Collapse Faster Than Projected
Anthropic Reaches $900 Billion Valuation in Historic AI Funding Round
Washington Imposes Crippling Sanctions on Iranian Maritime Authority
Japan and the Philippines Initiate Strategic Intelligence-Sharing Pact
Microsoft Deploys Autonomous Computer-Using AI Agents to Global Markets
Anthropic Secures $45 Billion Compute Infrastructure Agreement With SpaceX
U.S. Director of National Intelligence Resigns Amid Administration Shakeup
Micron Technology Crosses Trillion-Dollar Valuation Amid Unprecedented Hardware Demand
Canada and Germany Finalize Historic Long-Term LNG Export Agreement
China Expands International Travel Restrictions on Domestic AI Researchers
Japan Approves Sweeping Overhaul of National Intelligence Apparatus
Global Airlines Scramble Logistics as Middle East Airspace Remains Fractured
Japan's Naphtha Imports Plunge 47 Percent Amid Strait of Hormuz Closure
Global Crude Prices Retreat Below $96 as Gulf Tensions Momentarily Ease
Generative AI Outperforms Human Baselines in Landmark Global Creativity Study
NASA Partners With Private Aerospace to Unveil Permanent Lunar Base Architecture
South Korean Equity Markets Surge on Next-Generation Memory Chip Frenzy
×