Is the Keystone XL Pipeline Cancellation Headed for Court Again

The Keystone XL pipeline, a highly controversial project intended to transport crude oil from Canada’s Alberta oil sands to U.S. refineries, has been a subject of intense political, environmental, and legal debate for over a decade. After years of back-and-forth decisions, the project was officially canceled by TC Energy in June 2021, following President Joe Biden’s revocation of its permit on his first day in office as part of a broader climate-focused agenda. This cancellation marked a significant shift from the previous administration under Donald Trump, who had approved the pipeline in 2017 and expressed strong support for its construction.

Despite the official cancellation and TC Energy’s decision to abandon the project, discussions about reviving the Keystone XL pipeline have resurfaced, especially in the political arena. In late 2024, during his presidential campaign, Donald Trump indicated his intention to work toward restarting the pipeline if re-elected. This political stance has reignited debates about the pipeline’s future and whether it might face new legal battles.

The possibility of the Keystone XL pipeline heading back to court stems from several factors. First, the pipeline’s cancellation was heavily influenced by executive actions and regulatory decisions, which opponents and supporters alike have challenged through legal means over the years. The regulatory environment remains complex, with new legislation introduced in 2025 aiming to streamline and modernize the permitting process for cross-border energy infrastructure. For example, the Promoting Cross-border Energy Infrastructure Act, passed by the House with bipartisan support, seeks to reduce regulatory uncertainty and protect energy projects like Keystone XL from political interference. This legislation could potentially pave the way for renewed legal and administrative efforts to revive the pipeline or similar projects.

However, even if political will exists to restart Keystone XL, significant hurdles remain. TC Energy, which spun off its oil pipeline business into a new company called South Bow Energy in late 2024, has publicly stated that it has moved on from the Keystone XL project. For the pipeline to be revived, the company would need to reconsider its position and possibly reinvest substantial resources. Additionally, any attempt to restart construction would require navigating a complex web of permits, environmental reviews, and potential lawsuits from landowners, environmental groups, and other stakeholders who have long opposed the pipeline.

Legal challenges could focus on several issues, including environmental impact assessments, indigenous land rights, and compliance with federal and state regulations. The pipeline’s route crosses sensitive ecological areas and private lands, which have been points of contention in previous court cases. Moreover