Texas judge signs injunction to halt construction of Keystone XL pipeline

by Stibbs & Co., P.C. on December 13, 2012

TransCanada's Keystone XL pipeline has been a lightning rod for controversy since it first entered the public discourse several years ago.

Environmentalists argue that it will pose a significant threat to public health and speed up the development of Canada's "tar sands," which are believed cause more carbon emissions than traditional oil field production.

Meanwhile, the pipeline's supporters say it will capitalize on U.S. refining capabilities to create domestic jobs and reduce the country's dependence on petroleum imports from unstable nations in the Middle East.

President Obama rejected TransCanada's original proposal, citing the risks involved in routing the pipeline over the Ogallala Aquifer, which is a major source of water for both drinking and irrigating farmland. However, the company was encouraged to begin construction on a Southern section of the pipeline that would relieve a bottleneck in Cushing, Oklahoma and facilitate the transportation of crude oil to refineries in Texas.

Now, Michael Bishop, who owns 20 acres in the town of Douglass, about 160 miles north of Houston, is throwing a wrench in TransCanada's plans with a lawsuit seeking to halt the pipeline's construction.

Bishop claims the company lied to Texas landowners when it said the pipeline would transport "crude oil." Although TransCanada holds that tar sands are a form of crude, Judge Jack Sinz signed an injunction barring further work on the pipeline until after a December 19 hearing.

In a press release, the company asserted that the injunction will not affect its construction timeline. However, there is a risk that the case will drag on and begin to cause problems.

There are many opportunities for growth in the Houston oil and gas sector, but businesses constantly face the risk that legal challenges will prevent them from reaching their goals. Experienced Houston attorneys can help firms operating in the area settle disputes and move forward with their ventures.

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