Presidential Permit Authorizing Steel Reef US Pipelines LLC To Operate and Maintain Pipeline Facilities at Burke County, North Dakota, at the International Boundary Between the United States and Canada
President Donald J. Trump issued a permit to Steel Reef US Pipelines LLC, allowing the operation and maintenance of existing pipeline facilities at the US-Canada border in Burke County, North Dakota for the export of natural gas liquids to Canada.
The permit outlines specific conditions, including adherence to all applicable laws and regulations, mandatory inspections by federal, state, and local agencies, and provisions for the removal of facilities upon permit termination.
It clarifies that the permit does not create any legally enforceable rights against the United States.
Arguments For
Facilitating Energy Trade: The permit enables the export of natural gas liquids to Canada, potentially boosting US energy exports and economic activity.
Supporting Private Sector Investment: The action supports private investment in energy infrastructure, creating jobs and stimulating economic growth in North Dakota and potentially elsewhere.
Streamlining Regulatory Process: Issuing a presidential permit streamlines the approval process compared to relying solely on state and federal agency permits, potentially saving time and resources.
Established Presidential Authority: The President's authority to issue such permits is enshrined in relevant laws and precedents, providing a legal basis for the decision.
Arguments Against
Environmental Concerns: The operation of the pipeline could pose environmental risks, including potential spills or leaks affecting soil and water quality in North Dakota.
Potential Impact on Local Communities: Concerns might exist about potential impacts on local communities near the pipeline, such as safety hazards or disruption of local resources.
Limited Public Input: The process of issuing the permit might involve limited opportunities for public comment and input, raising concerns regarding democratic participation.
National Security Concerns: While the permit mentions national security, opponents may argue that its granting poses a potential risk to national security and energy self-sufficiency by prioritizing energy export over domestic energy reliability and security.
By virtue of the authority vested in me as President of the United States of America (the “President”), I hereby grant this Presidential permit, subject to the conditions herein set forth, to Steel Reef US Pipelines LLC (the “permittee”). The permittee is a limited liability company organized under the laws of the State of Delaware and owned by affiliates of Steel Reef Infrastructure Corp., a Canadian privately held corporation organized under the laws of Canada. Permission is hereby granted to the permittee to operate and maintain existing pipeline Border facilities, as described herein, at the international border of the United States and Canada at Burke County, North Dakota, for the export from the United States into Canada of natural gas liquids, but not including natural gas subject to section 3 of the Natural Gas Act, as amended (15 U.S.C. 717b).
The President grants a permit to Steel Reef US Pipelines LLC, a Delaware-based company with Canadian ownership, to operate and maintain existing pipeline facilities at the US-Canada border in Burke County, North Dakota.
The permitted activity is the export of natural gas liquids to Canada, excluding natural gas subject to section 3 of the Natural Gas Act.
This action is predicated on the President's constitutional authority.
This permit does not affect the applicability of any otherwise-relevant laws and regulations. As confirmed in Article 2 of this permit, the Border facilities shall remain subject to all such laws and regulations.
The permit doesn't supersede existing laws and regulations.
All applicable laws and regulations will continue to govern the operation and maintenance of the pipeline facilities.
The term “Facilities” as used in this permit means the portion in the United States of the international pipeline project associated with the permittee’s February 23, 2022, application for an amendment to its existing permit, and any land, structures, installations, or equipment appurtenant thereto.
The term "Facilities" refers to the US portion of the international pipeline project, as described in the permittee's February 23, 2022, application and includes related land, structures, and equipment.
The term “Border facilities” as used in this permit means those parts of the Facilities consisting of an 8.625-inch diameter pipeline in existence at the time of this permit’s issuance extending from the international border between the United States and Canada at Burke County, North Dakota, to and including the first mainline shut-off valve or pumping station in the United States, and any land, structures, installations, or equipment appurtenant thereto.
The term "Border facilities" specifies the parts of the Facilities that consist of an existing 8.625-inch pipeline extending from the US-Canada border in Burke County, North Dakota to the first US mainline shut-off valve or pumping station, plus any related assets.
This permit is subject to the following conditions:
Article 1. The Border facilities herein described, and all aspects of their operation, shall be subject to all the conditions, provisions, and requirements of this permit and any subsequent Presidential amendment to it. The permittee shall make no substantial change in the Border facilities, in the location of the Border facilities, or in the operation authorized by this permit unless the President has approved the change in an amendment to this permit or in a new permit. Such substantial changes do not include, and the permittee may make, changes to the average daily throughput capacity of the Border facilities to any volume of products that is achievable through the Border facilities, and to the directional flow of any such products.
Article 1 details that the Border facilities' operation must comply with the permit's conditions.
No substantial changes to the facilities, their location, or operations are permitted without Presidential approval, although changes to daily throughput capacity and product flow direction are exceptions.
Article 2. The standards for, and the manner of, operation and maintenance of the Border facilities shall be subject to inspection by the representatives of appropriate Federal, State, and local agencies. Officers and employees of such agencies who are duly authorized and performing their official duties shall be granted free and unrestricted access to the Border facilities by the permittee. The Border facilities, including the operation and maintenance of the Border facilities, shall be subject to all applicable laws and regulations, including pipeline safety laws and regulations issued or administered by the Pipeline and Hazardous Materials Safety Administration of the U.S. Department of Transportation. The permittee shall obtain requisite permits from relevant State and local governmental entities, and relevant Federal agencies.
Article 2 mandates inspections by federal, state, and local agencies to ensure compliance with operational and maintenance standards.
Authorized agency personnel will have unrestricted access to the facilities.
All applicable laws and regulations, including pipeline safety regulations, must be followed, along with securing necessary state, local, and federal permits.
Article 3. Upon the termination, revocation, or surrender of this permit, unless otherwise decided by the President, the permittee, at its own expense, shall remove the Border facilities within such time as the President may specify. If the permittee fails to comply with an order to remove, or to take such other appropriate action with respect to, the Border facilities, the President may direct an appropriate official or agency to take possession of the Border facilities — or to remove the Border facilities or take other action — at the expense of the permittee. The permittee shall have no claim for damages caused by any such possession, removal, or other action.
Article 3 outlines that upon permit termination, revocation, or surrender, the permittee is responsible for removing the Border facilities at their own expense, by a Presidentspecified deadline. Failure to comply leads to Presidential authority to order removal, with the permittee bearing all associated costs and forfeiting any claim for damages.
Article 4. When, in the judgment of the President, ensuring the national security of the United States requires entering upon and taking possession of any of the Border facilities or parts thereof, and retaining possession, management, or control thereof for such a length of time as the President may deem necessary, the United States shall have the right to do so, provided that the President or his designee has given due notice to the permittee. The United States shall also have the right thereafter to restore possession and control to the permittee. In the event that the United States exercises the rights described in this article, it shall pay to the permittee just and fair compensation for the use of such Border facilities, upon the basis of a reasonable profit in normal conditions, and shall bear the cost of restoring the Border facilities to their previous condition, less the reasonable value of any improvements that may have been made by the United States.
Article 4 grants the United States the right to take possession of the Border facilities for national security reasons, after providing notice to the permittee.
Just and fair compensation will be provided for use, and the US will bear the cost of restoring the facilities to their prior condition, less the value of any US improvements.
Article 5. Any transfer of ownership or control of the Border facilities, or any part thereof, or any changes to the name of the permittee, shall be immediately communicated in writing to the President or his designee, and shall include information identifying any transferee. Notwithstanding any such transfers or changes, this permit shall remain in force subject to all of its conditions, permissions, and requirements, and any amendments thereto.
Article 5 requires immediate written notification to the President of any ownership or control transfers or permittee name changes, including transferee information.
The permit remains in effect, subject to its conditions, regardless of such transfers or changes.
Article 6. (1) The permittee is responsible for acquiring any right-of-way grants or easements, permits, and other authorizations as may become necessary or appropriate.
(2) The permittee shall hold harmless and indemnify the United States from any claimed or adjudged liability arising out of construction, connection, operation, or maintenance of the Border facilities, including environmental contamination from the release, threatened release, or discharge of hazardous substances or hazardous waste.
(3) To ensure the safe operation of the Border facilities, the permittee shall maintain them and every part of them in a condition of good repair and in compliance with applicable law.
Article 6 assigns responsibility to the permittee for acquiring necessary right-of-way grants, easements, and permits.
The permittee must indemnify the US against liability related to the facilities, including environmental contamination.
The permittee is also required to maintain the facilities in good repair and compliance with applicable laws.
Article 7. The permittee shall file with the President or his designee, and with appropriate agencies, such sworn statements or reports with respect to the Border facilities, or the permittee’s activities and operations in connection therewith, as are now, or may hereafter, be required under any law or regulation of the United States Government or its agencies. These reporting obligations do not alter the intent that this permit be operative as a directive issued by the President alone.
Article 7 requires the permittee to file sworn statements and reports as legally mandated, with both the President and relevant agencies.
This reporting obligation doesn't change the Presidential directive nature of the permit.
Article 8. Upon request, the permittee shall provide appropriate information to the President or his designee with regard to the Border facilities. Such requests could include information concerning current conditions or anticipated changes in ownership or control, construction, connection, operation, or maintenance of the Border facilities.
Article 8 requires the permittee to supply information on the Border facilities to the President upon request, covering current conditions or anticipated changes in ownership, construction, operation, or maintenance.
Article 9. This permit is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
Article 9 clarifies that the permit does not create any legally enforceable rights against the United States or its entities.
This is the concluding statement of the Presidential Permit, signed by President Donald J. Trump.
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