Judge dismisses lawsuit filed by environmental group over Canadian-US oil pipeline

Judge dismisses lawsuit over oil pipeline

WASHINGTON — A judge has dismissed a lawsuit brought by an environmental group that claimed a permit that allows the construction of an oil pipeline between the U.S. and Canada violated federal law.

U.S. District Court Judge Richard Leon ruled Tuesday that the Natural Resources Defense Council did not have the authority to challenge the permit issued for the TransCanada Keystone Pipeline by the State Department.

The council claimed the State Department violated the National Environmental Policy Act because it issued the presidential permit based on a deficient environmental impact statement. NRDC sought a court order requiring the permit to be revoked.

Calgary, Alberta-based energy company TransCanada Corp. is building the pipeline that will run 2,148 miles from Alberta to Illinois. The company wants to expand the pipeline to Cushing, Okla., and then to the U.S. Gulf Coast by 2012. The total investment could be up to $12 billion.

It will be able to deliver 1.1 million barrels of oil a day and could be expanded to 1.5 million barrels a day.

TransCanada shares rose 41 cents to $31.03 in trading Wednesday afternoon. The shares have traded between $20.01 and $36.33 over the past year.