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EXCLUSIVE: 16 Republican States Demand Biden Reinstate Keystone XL Pipeline
EXCLUSIVE: 16 Republican States Demand Biden Reinstate Keystone XL Pipeline
Following your revocation of President Donald Trump’s 2019 permit for the Keystone
XL pipeline on the first day of your administration, we have repeatedly asked you to
reconsider this misguided (and we continue to believe unlawful) decision. We warned you
then if your decision was not reversed, Americans would “suffer serious detrimental
consequences,” consumers would pay higher prices, and our allies would become further
dependent on Russian and Middle Eastern oil.1
Just over a year later, new record high gas prices are seemingly set every day,
economy-wide inflation—the highest in 40 years—is straining the budgets of American
families, and European countries are unable to impose oil and gas sanctions on Russia
without risking an economic recession.2,3 Instead, European countries are spending $1 billion
per day on Russian oil and gas and literally funding Vladimir Putin’s invasion of Ukraine in
the process.4
Last summer, during the pendency of your illegal federal oil and gas leasing
moratorium, you begged OPEC+ (Organization of the Petroleum Exporting Countries and
others) to increase its oil output. This included countries like Russia, Iran, and Venezuela—
1Sebastien Malo, Decision to cancel Keystone XL ‘rushed’ and ‘unilateral’ - AGs’ letter, REUTERS (Feb.
9, 2021, 5:20 PM), https://tinyurl.com/32dystw3.
2Scott Horsley & Kelsey Snell, The rate of inflation made its sharpest spike since 1981, NPR: ECON.
(Apr. 12, 2022, 4:17 PM), https://tinyurl.com/4227cpcy.
3The Associated Press, Europe agrees to ban Russian coal, but struggles on oil, gas, AP NEWS (Apr. 7,
2022), https://tinyurl.com/2x9zxpv4.
4Emily Peck, Pressure mounts on Europe for total Russian Energy embargo, AXIOS: ECON. AND BUS.
(Apr. 8, 2022), https://tinyurl.com/yc7veva3.
DEPARTMENT OF JUSTICE
215 North Sanders (406) 444-2026
PO Box 201401 [email protected]
Helena, MT 59620-1401 mtdoj.gov
Attorneys General Letter to President Biden
April 18, 2022
Page 2 of 4
none of which are friends to the United States. Now, a recent report from the Wall Street
Journal indicates that your administration is seeking to import more oil from Canada.5
As that report notes, however, there is little capacity in existing pipelines, leaving you
with few (if any) viable options. The oil you now want to import from Canada is the same oil
that would have flowed through the Keystone XL pipeline, which would have transported
nearly a million barrels per day—not only from Canada but from the Bakken oilfields in
Montana and North Dakota—to American refineries. The hypocrisy would be stunning if it
weren’t so insulting to American energy workers and those in rural communities who
benefited from the pipeline’s many economic opportunities.
But your ill-considered, day-one decision to nix this pipeline has produced far-
reaching consequences. It set a dangerous precedent for future permits and projects that
would enhance our nation’s energy security and independence. Your vitriolic language and
vilification of the American fossil fuel industries while holding out your hand to the despotic
foreign leaders whose interests directly conflict with American values has undoubtedly
depressed American energy development both on- and off-shore.
In pursuit of their $15 billion trade claim against you (a cost that will be borne by
American taxpayers if it succeeds), TC Energy has said it will not build the pipeline.6 The
States took considerable measures to support TC Energy and the project—a project that
would have brought jobs and economic opportunities to many of our underserved
communities. Coddling your radical environmental base has led us to the current crisis.
The time for waffling and double-speak has passed. The time for leadership has come,
and the path forward is clear. End TC Energy’s NAFTA claim charade and reauthorize the
Keystone XL pipeline project. Clear the administrative path for the pipeline’s development,
rescind your revocation of Keystone XL’s 2019 Presidential Permit, and provide regulatory
certainty to companies willing to build this vital, arterial pipeline. Maybe that’s TC Energy,
and maybe it’s a bolder company more committed to enduring partnerships with the States.
We also request you cease federal efforts to impose excessive regulations that will
increase Americans’ energy costs. This includes your attempt to infuse decision-making
across federal agencies with inflated “social costs of carbon” (Section 5 of Executive Order
13990), the Federal Energy Regulatory Commission’s proposed regulation for new natural
gas projects (Docket Number PL21- 3-000, 86 Fed. Reg. 66,293), and your suspension of the
authorization to transport liquified natural gas by rail tank cars (Docket No. PHMSA–2021–
0058 (HM–264A)), to name a few. You should also make clear to congressional Democrats
5 Timothy Puko & Vipal Monga, U.S. Wants More Oil from Canada but Not a New Pipeline to Bring
It, WALL ST. J. (Apr. 5, 2022), https://tinyurl.com/53hzs4pz.
6Zi-Ann Lum, TC Energy initiates NAFTA claim to recoup $15B in Keystone XL damages, POLITICO
(Apr. 7, 2021, 9:49 AM), https://tinyurl.com/mrym5jea.
Attorneys General Letter to President Biden
April 18, 2022
Page 3 of 4
that you will veto their attempts to increase oil and gas taxes and impose costly new methane
rules on energy production should these bills reach your desk.7,8
Recent events have made it strikingly obvious that more domestic energy development
is needed to prevent future economic hardship for Americans. Your decisions, however, have
stripped Americans of the manifold benefits the Keystone XL pipeline would deliver—jobs,
tax revenue, and new and sustained economic opportunities. There is no end in sight to the
painfully high energy costs or inflation that Americans are now enduring because of your
failed policies. Stop the quiet conversations with foreign powers and oligarchs. The solutions
are right here at home. On behalf of the citizens of our states, we demand you immediately
take the actions outlined above to reverse the damage you have done and provide relief for
struggling families and businesses.
Sincerely,
7Rebecca Beitsch, Democrats target Trump methane rule with Congressional Review Act, THE HILL
(Mar. 25, 2021, 11:02 AM), https://tinyurl.com/y99war2s.
8David Blackmon, Democrats File New Tax on Alleged ‘Windfall Profits’ by Big Oil, FORBES: ENERGY
(Mar. 12, 2022, 10:00 AM), https://tinyurl.com/5dyx7vhv.
Attorneys General Letter to President Biden
April 18, 2022
Page 4 of 4