Friday, March 3, 2017

Keystone Exempt from Buy American Requirements

When President Trump approved the continuation of the XL Pipeline he stated it would be built with American Steel. But I understood that option failed in a Congressional Vote and was never in the original contract. The other attempt was to create a "First Refusal" option on the refined oil, and that also failed. Now the refined oil can be sold to other Countries, and because it will leave from a Tax Free zone, the U.S. will not receive any revenue from their sale.

Today we find out, the Keystone XL Pipeline will not be subject to President Trump's Executive Order requiring Infrastructure projects to be built with American Steel, a White House spokeswoman said.

Trump signed the Order calling for the Commerce Department to develop a plan for U.S. Steel to be used in “all new pipelines, as well as retrofitted, repaired or expanded pipelines” inside the U.S. Projects “to the maximum extent possible.”

By the White House’s judgment, that description would not include Keystone XL, which developer TransCanada first proposed in 2008.

“The Keystone XL Pipeline is currently in the process of being constructed, so it does not count as a new, retrofitted, repaired or expanded pipeline,” the White House spokeswoman said.

That interpretation removes one potential hurdle for Keystone, and it clarifies shifting rhetoric from Trump on the order.

“We put you heavy into the pipeline business because we approved, as you know, the Keystone Pipeline, but they have to buy ... steel made in this country and pipelines made in this country,” Trump told U.S. Steel Chief Executive Mario Longhi at a Feb. 23rd meeting.

However, in his address to Congress earlier this week, Trump spoke of the order in the same sentence as Keystone but carefully described it as directing "that new American pipelines be made with American steel."

Removing the Steel condition could help persuade TransCanada to fully drop the $15 billion NAFTA complaint against the U.S., which it suspended earlier this week.

A TransCanada spokesman declined today to comment on the NAFTA lawsuit.

The other interesting problem with building the Pipeline was, why wasn't the U.S. portion of the Pipeline not built from the beginning, as it did not need the U.S. State's Department approval.

Then there is the open Court Case in Nebraska for the "Right of Way" and "Eminent Domain" of the Pipeline through the State, that was Suspended when President Obama didn't Approve the project.

NYC Wins When Everyone Can Vote! Michael H. Drucker
Digg! StumbleUpon

No comments: