TransCanada’s decision to purchase all of the pipe needed to complete the Keystone XL Pipeline before receiving a presidential permit could prove a costly mistake.
Not only is President Obama expected to reject the permit TransCanada needs in order to cross the U.S.-Canadian border, the company must recertify an expired permit before it can install the pipeline though South Dakota as well.
At a hearing that began on July 29 in Pierre, South Dakota, the state Public Utilities Commission (PUC) is tasked to decide if it should recertify the company’s permit to build the Keystone XL pipeline through the state. Those opposing the Keystone XL, referred to as interveners, are making the case that TransCanada is not up to the job.
During the first week of the hearing, a mix of members of the grassroots group Dakota Rural Action, Native American tribes, individual landowners, and a team of all of the interveners’ lawyers began presenting testimony challenging TransCanada’s narrative that the Keystone XL “will be the safest pipeline ever built.” The interveners claim that is a public relations ploy far from the truth about TransCanada’s performance record.
TransCanada bears the burden to prove it is capable of following the rules that the PUC set when the original Keystone Pipeline permit was granted in 2010, so it is no surprise that the company objected to the interveners’ introduction of evidence that showed the company has had problems with its other recently constructed pipelines, including the Keystone XL’s southern route, renamed the Gulf Coast Pipeline.
Lawyers for the interveners have also questioned the PUC’s impartially. They believe the commissioners’ pre-hearing rulings to exclude testimony relevant to their case was unjustified. But instead of letting the PUC’s move weaken their case, they laid the foundation during their examination of witnesses that enabled them to refer to the excluded documents in their cross-examination.
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