American Oil and Gas Reporter - April 2017 - 28

sure that scientists advising EPA on regulatory issues are not the same scientists
receiving EPA grants."
The Alliance notes that versions of both
HR 1430 and 1431 passed the 114th
Congress, but died in the Senate after President Obama threatened to veto them.
Trump Budget
Reining in EPA also is a goal of President Trump's first budget proposal, which
was released March 16, according to
published reports.
President Trump's $1.15 trillion budget for fiscal 2018 allocates $5.7 billion to
EPA, a reduction of $2.6 billion, or 31 percent. According to press accounts,
Trump's plan discontinues funding for
EPA's Clean Power Plan, international climate change programs, climate change re-

search and partnership programs, and related efforts. It cuts the budget for EPA's
Office of Enforcement and Compliance
Assurance from $548 million to $419 million, and cuts the Office of Research and
Development from $483 million to $250
million.
Trump's proposed budget also reduces
spending at the Department of Interior
from $13.1 billion to $11.6 billion, and at
the Department of Energy from $29.7 billion to $28.0 billion, reports say.
Secretary Ryan Zinke says DOI's
budget prioritizes energy security "by
increasing funding for programs that support responsible development of oil, natural gas, coal and renewable energy on
public lands and offshore waters," and sustains DOI's royalty collection and disbursement functions.

It also "ensures streamlined operations and greater access to public lands for
multiple uses, including recreation, conservation, and responsible development of
natural resources," Zinke says.
IPAA responds that it "is pleased the Interior budget restores the priority of oil and
natural gas permitting."
"Specific to EPA," the association
continues, "this budget appears to prioritize the necessary federal/state regulatory balance, emphasizing the important role
of states in implementing national environmental goals.
"The budget proposal also reflects
President Trump's priority to ease the burden of unnecessary federal regulations,"
IPAA continues, adding it "is encouraged
by the direction of President Trump's
budget initiatives."
❒

Trump Approves Keystone XL Pipeline
WASHINGTON-The U.S. Department of State on March 24 fulfilled another of President Donald Trump's campaign promises by granting the Keystone
XL Pipeline a presidential permit to "construct, connect, operate, and maintain
pipeline facilities at the U.S.-Canadian border in Phillips County, Mt."
The permit was signed by Undersecretary of State for Political Affairs Thomas
A. Shannon Jr. because Secretary of State
Rex Tillerson recused himself from the
pipeline's review. According to a media
note from the State Department, Shannon
"considered a range of factors, including
but not limited to foreign policy; energy
security; environmental, cultural and economic impacts; and compliance with applicable law and policy."
The agency adds that documents related to its review may be found at
https://keystonepipeline-xl.state.gov/.
"This is a significant milestone for the
Keystone XL project," responded TransCanada Corporation President and Chief
Executive Officer Russ Girling. "We
greatly appreciate President Trump's administration for reviewing and approving
this important initiative, and we look forward to working with it as we continue to
invest in and strengthen North America's
energy infrastructure."
Girling says TransCanada will continue to engage key stakeholders throughout
Nebraska, Montana and South Dakota,
where it still must obtain permits and negotiate rights of way to advance the project. He adds that TransCanada has discontinued its claim under Chapter 11 of the
28 THE AMERICAN OIL & GAS REPORTER

North American Free Trade Agreement, and
will end its U.S. constitutional challenge.
TransCanada filed an application with
the Nebraska Public Service Commission
on Feb. 16 for approval of the pipeline
route through Nebraska (AOGR, March
2017, pg. 18).
TransCanada filed its initial application
for a border-crossing permit in 2008, but was
finally rejected by President Obama in
November 2015 because it "would undermine significantly our ability to continue
leading the world in combatting climate
change," according to a statement from then
Secretary of State John Kerry (AOGR, December 2015, pg. 30). The 1,187-mile
pipeline is intended to carry 800,000 barrels
a day of crude oil from Hardisty, Alberta, on
a route through Montana and South Dakota to a connection in Steele City, Ne., for
eventual shipment to Gulf Coast refineries.
Industry and trade groups praised the
project's approval. "Today's action is
welcome news and is critical to creating
American jobs, growing the economy, and
making our nation more energy secure,"
states American Petroleum Institute President and CEO Jack Gerard. "This critical
infrastructure project has been studied
longer than any pipeline project in U.S. history, with exhaustive reviews by the State
Department concluding that it is safe for
the environment and the best option for
transporting domestic crude and Canadian oil to U.S. refineries.
"Moving forward, we strongly urge the
individual states, which stand to benefit
from Keystone XL, to approve this important project," Gerard adds.

U.S. Chamber of Commerce President
and CEO Thomas J. Donohue says, "Today's action should send a clear message
to investors and important strategic partners such as Canada that things have
changed in Washington. This decision is
another step toward regaining (confidence in U.S. investments), re-establishing the rule of law, and rebuilding trust that
America will act in the best interests of
consumers and our allies."
Others applauding granting the permit
include the Montana Chamber of Commerce, the Heritage Foundation, the International Union of Operating Engineers,
Americans for Prosperity, and Canadian
Natural Resource Minister Jim Carr, according to published reports.
However, the project still faces challenges, according to reports. One quotes
Fred Jauss, a partner at law firm Dorsey
& Whitney LLP as saying, "Other federal agencies such as the U.S. Army Corps
of Engineers, state regulatory commissions,
and even local planning boards may have
requirements that need to be fulfilled prior to construction. In addition, TransCanada may still need to reach deals
with hundreds of potentially affected
landowners on the pipeline's route."
Environmental groups also are vowing
to continue to fight the pipeline. Published
reports quote Greenpeace USA Executive
Director Annie Leonard saying her organization will pressure banks not to provide
financing for Keystone XL, while the
Sierra Club is urging its supporters to voice
their opposition to the Nebraska Public
Service Commission.
❒


https://keystonepipeline-xl.state.gov/

American Oil and Gas Reporter - April 2017

Table of Contents for the Digital Edition of American Oil and Gas Reporter - April 2017

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