BP Oil Spill in Gulf of Mexico

A key government report issued on September 14, 2011 put the primary blame for the Deep Water Horizon oil rig accident that killed 11 workers and spilled more than 200 million gallons of oil into the Gulf on the BP. The panel has been constituted by the professionals from two government agencies: the Coast Guard and the Bureau of Ocean Energy Management Regulation and Enforcement. The key difference between this finding and the ones by a presidential commission, congressional committees and the companies themselves is that others laid the blame more evenly across the various companies. Although in the government report, rig owner Transocean was accused of being deficient in preventing or limiting the disaster and Halliburton was accused of faulty mixing and testing of the cement, BP was identified as the primary party with responsibility for "conducting operations at Macondo in a way that ensured the safety and protection of personnel, equipment, natural resources and the environment". The report issued on September 14, 2011 found the failure of the cement seal in the well as the primary cause of the disaster. Although it was Haliburton's job to mix and test the cement mix, according to the report, it was eventually the BP who had the final word.
The panel recommended further changes to the off-shore drilling, including requiring at least two barriers in the well--one mechanical, one cement. The last line of defense, the blowout preventer, failed because a kink in the well pipe prevented the device from pinching the well shut.

History of Gulf Oil Spill
April 20, 2010: The explosion occurred on the Deepwater Horizon, killing 11 workers.

July 15, 2010: The Macondo well was capped (the oil stopped spewing)

September 19, 2010: The Macondo Well was declared dead.

Oil Spilled: More than 200 millions of gallons.

Damages: Fouled beaches from the upper TX coast to Florida, wreaking havoc in between from Louisiana, Mississippi and Alabama.


The Interior Department's Bureau of Safety and Environmental Enforcement on October 12, 2011 issued citations against BP, Transocean and Halliburton for Deepwater Horizon accident. The companies have 60-day timeline to appeal the two citations:

(I) Failing to operate in a "safe and workmanlike manner".

(II) Failing to take "necessary precautions to keep the well under control at all times".

The citations are the product of federal investigation that issued a scathing report on September 14, 2011. The citations may force the companies to pay a fine as hefty as $45.7 million.

On October 26, 2011, BP won permission from the Interior Department's Bureau of Safety and Environmental Enforcement to explore oil in the Gulf of Mexico, first such exploration right the oil company won since the worst oil spill that had begun in April 2010 and lasted for several weeks. The well is at a depth of 6,000 feet, deeper than the Macondo Well where accident had taken place. The well is part of the company's Kaskida prospect in an area called the Keathley Canyon, about 250 miles south of Lafayette, LA. In the prior week (October 16-22, 2011), the company won the approval for the broader exploration region of Kaskida. The company had filed for permission in January 2011 for a much more rigorous review with strict compliance with rules related to "thorough well design, blowout prebenter and containment capability" in the words bureau director Michael Bromwich.

On February 26, 2012 (Sunday), the US District Judge Carl Barbier of New Orleans delayed the trial of BP in the worst off-shore oil spill by a week as progress had been made in negotiation between the company and a group overseeing various litigants, Plaintiffs' Steering Committee. The spill spewed about 206 million gallons of oil. BP already created a $20 billion compensation fund, called the Gulf Coast Claims Facility, headed by attorney Kenneth Feinberg. The fund has already paid about $6 billion to settle claims. The current negotiation may lead to closure of the fund and disbursement of remaining $14 billion among various litigants.

In late hours on March 2, 2012, parties announced that Plaintiffs' Steering Committee and BP had arrived at a $7.8 billion deal. The deal has to be approved by the US District Judge Carl Barbier. The deal's price tag is $7.8 billion, which would be available from the existing $20 billion GCCF. The deal has been crafted to settle the civil suit. The GCCF is likely to be closed down. The settlement will pay for spill-related illnesses, a new gain which was not under the coverage of GCCF. The new settlement, just like the GCCF, will pay for lost wages, property damage and business destruction, but the addition of illnesses is noteworthy.

On November 15, 2012, BP pleaded guilty to a raft of charges and settled with the US government for $4.5 billion. Breakdown of the settlement, to be paid over the next five years:

* 0.35 billion--National Academy of Sciences

* 0.50 billion--Securities and Exchange Commission

* 2.40 billion--National Fish and Wildlife Foundation

* 1.30 billion--Fine

On November 28, 2012, Environmental Protection Agency barred BP from participating in any new US government contracts over its "lack of business integrity" related to Deep Water Horizon accident.

On January 29, 2013, U.S. District Judge Sarah Vance of New Orleans gave seal of approval to $4 billion BP's criminal claims settlement with U.S. government, which the British oil giant had agreed on November 15, 2012. The Civil charges settlement is yet to be approved.

A lawyer, Lionel H. Sutton III , who worked for the GCCF administrator's office resigned on June 21, 2013 over the charges that Lionel H. Sutton III prior to coming to work for the Administrator Patrick Juneau referred many clients to the law firms who gave him cuts from individual settlements. Now, Sutton is the target of an investigation led by the former FBI Director Louis Freeh, who had been appointed on July 2, 2013 by the Judge Carl Barbier to investigate into any corruption in the settlement fund. However, the judge for the case, US District Judge Carl Barbier, took strong exception on July 19, 2013 to the statements issued by BP officials alleging fraud in the settlement program. Instead, Barbier said that there was no evidence of any widespread fraud in the settlement program.

Meanwhile, US District Judge Carl Barbier on August 7, 2013 upheld the US Magistrate Sally Shushan's ruling earlier in the day asking the oil giant to disburse more than $130 million in fees for continuing administrative costs for Patrick Juneau's settlement office. Barbier summoned the parties after BP made defiant posture over Shushan's ruling issued on August 7.

On August 30, 2013, BP filed a legal briefing, a second one in as many months, before a federal appellate court asking it to throw out the settlement as interpreted by the US Judge Carl Barbier. The British petroleum giant contended that Judge Barbier had misinterpreted the settlement terms and conditions, leading to higher payout to litigants. Last year BP joined the settlement with the plaintiffs' attorneys in a joint court filing. In July 2013, it filed a lawsuit before a three-judge panel of the 5th US Circuit Court of Appeals disputing the interpretations of Judge Barbier of the settlement terms.

On September 19, 2013, Halliburton, BP's cement contractor for the Macondo well, pleaded guilty to destroying the records just after the April 2010 Deep Water Horizon accident that had killed 11 people. Also during the day, former Halliburton cementing technology director Anthony Badalamenti was charged for directing two of his employees to destroy the records. US District Judge Jane Triche Milazzo accepted the Halliburton's guilty plea and a fine of $200,000 for a misdemeanor stemming from Badalamenti's misconduct.

Following a split verdict from a three-judge panel of the 5th US Circuit Court of Appeals a day earlier, Judge Carl Barbier on October 3, 2013 suspended the claims settlement process by Patrick Juneau, the administrator of the claims fund. BP claimed that the process being followed by Administrator Juneau was leading to misuse of the claims fund, and filed a request in the 5th US Circuit in July to order Judge Barbier to issue suspension order.

As part of the fines slapped on BP and Transocean, National Fish and Wildlife Foundation on November 14, 2013 announced $113 million grants for the five states that border the Gulf of Mexico. BP and Transocean paid $158 million earlier in the year to the foundation, and the companies will pay an additional $353 million by February 2014. The largest installments of total payment of $2.5 billion will come in latter years. The breakdown of $113 million in disbursement is as follows:

(1) Louisiana          $67.9 million
(2) Alabama           $12.6 million
(3) Florida              $15.7 million
(4) Mississippi       $ 8.2 million
(5) Texas                $ 8.8 million

Over the next five years, NFWF's Gulf Environmental Benefit Fund will receive about $1.3 billion for barrier islands and river diversion projects in Louisiana; $356 million each for natural resources projects in Alabama, Mississippi and Florida; and $203 million for similar projects in Texas, according to GEBF head Thomas Kelsch.

Former BP employee Kurt Mix will go to trial on December 2, 2013 as the first of four former or current BP employees facing charges on obstruction of justices. Mix is accused of deleting text and voice records, and indicted on two counts of obstruction of justices. His former employer already pleaded guilty and agreed to pay $4 billion in penalties, including $1.3 billion in fines, as part of a settlement approved by the U.S. District Judge Sarah Vance of New Orleans on January 29, 2013. U.S. District Judge Stanwood Duval Jr. has decided to put the case in jury trial system. (Based on report by Michael Kunzelman of The Associated Press and carried by The Dallas Morning News in December 2, 2013, publication)

BP Files against Settlement Terms to US Supreme Court
On August 3, 2014, British Petroleum filed papers at the U.S. Supreme Court, contesting its settlement with the Claims Administrator Patrick Juneau by citing the apex court's own "same injury" clause. The apex court canceled a class-action lawsuit filed against the Wal-Mart Stores Inc. in 2011, ruling that not all the employees suffered the "same injury". BP's rationale was that "all" businesses who could show that they had lost money after the Deepwater Horizon's oil spill irrespective of whether they had suffered due to oil spill or not were entitled to receive compensation under the settlement terms, thus violating the "same injury" clause as claimants with no harm were treated as in the same class with the claimants with direct harm. However, the chance for BP to succeed, according to many legal experts, is low as, first of all, it was a signatory to the settlement terms, and on the top of it, the 5th U.S. Circuit Court of Appeals upheld the settlement terms twice: first, a three-panel verdict of 2-to-1, and second, the full bench rendering a 8-5 verdict. BP claims that it has spent so far $27 billion in clean-up, response, restoration and claims payments, of which about $14 billion was used in response and cleanup.

BP at "Gross Negligence", Judge Rules
In a tell-tale sign of additional billions of dollar in damages due to its role in Deepwater Horizon's explosion, US District Judge Carl Barbier on September 4, 2014 ruled that British Petroleum was "grossly negligent" in the April 2010 accident. BP already paid $28 billion in clean-up cost and claims payment. The "grossly negligent" ruling will expose the oil giant to an additional $18 billion in civil penalties, nearly quadruple of the maximum penalty for the "simple negligence" charge under the Clean Water Act and almost five times high as $3.5 billion the company had set aside. Also, Judge Barbier had given a breakdown of responsibility in the tragic explosion that took place on April 20, 2010. He held BP 67 percent responsible, Transocean 30 percent responsible and Halliburton 3 percent responsible.  BP had already pleaded guilty to manslaughter and other charges and agreed to pay $4 billion in federal criminal penalties. However, company's fate in civil penalties is far from over. In 2012, BP reached a settlement with many of the businesses and individuals, but last month filed a brief in the U.S. Supreme Court on interpretation of that settlement. The September 4, 2014 ruling was related to the first phase of the trial, concerning the blowout of the rig itself. The second phase relates to how much oil has spilled in the aftermath of explosion, and has gone to trial in the fall of last year. The third phase of the trial that has gone to trial in January will lead to a final determination of penalties under the Clean Water Act.
Halliburton reached a settlement of $1.1 billion earlier this week, while Transocean reached a settlement last year for some of the government claims in lieu of $1.4 billion.

Judge Rejects BP's Call to Amend the Ruling
US District Judge Carl Barbier on November 13, 2014 stood by his September 4, 2014, ruling that BP was "grossly negligent" in April 20, 2010, Deepwater Horizon explosion in the Gulf of Mexico. BP asked the judge to amend his September ruling or hold a new trial, none of which are accepted by the judge. Under the Clean Water Act, a fine of $1,100 per barrel can be imposed on the polluters, but the amount may rise to as high as $4,300 per barrel if found "grossly negligent". Scientists believe that Deepwater Horizon accident spewed 4.2 million barrels of crude in the Gulf of Mexico. However, the oil giant asked the judge to consider the spilled amount to be 2.45 million barrels.

Supreme Court Refuses to Hear BP Case
The U.S. Supreme Court on December 8, 2014 refused to hear the petition filed by the oil giant British Petroleum on August 3, 2014.

BP Asks Appellate Court to Ax the Administrator
Repudiated by the US District Judge Carl Barbier in November 2014, the oil giant BP filed a 75-page brief on December 24, 2014 asking the 5th U.S. Circuit Court of Appeals to dismiss the claims fund administrator Patrick Juneau on charges of showing undue favor to the claimants.

Transocean Reaches Settlement
The so-called Plaintiffs Steering Committee on May 20, 2015 reached a $211.8 million settlement with the rig owner Transocean.

BP to Settle all Federal and State Government Suits for $18.7 billion
In the largest environmental fine ever, British Petroleum on July 2, 2015 reached a settlement with the U.S. Department of Justice for $18.7 billion. Under the settlement terms, all federal and state government lawsuits against the London-based oil giant will be dropped. The company said that it would allocate an additional $10 billion to its reserve related to Deepwater Horizon's April 20, 2010, explosion that had killed 11 people, bringing the potential compensation fund to $53.8 billion.

Nearly $20 billion Claims Settlement Finalized and Filed
The US Department of Justice on October 5, 2015 outlined details of the largest ever settlement in nation's history announced on July 2, 2015. Under the final terms:
* $5.5 billion to be paid by BP under the Clean Water Act
* $5 billion to be paid to five states: Alabama, Florida, Texas, Louisiana and Mississippi
* $8.1 billion to repair and compensate for natural resources damage, with funds going to Gulf restoration projects such as coastal wetlands
* $600 million for federal and state natural resources damage
* Up to $1 billion to local governments to settle claims for economic damage

The oil giant settled with individuals and businesses in 2012 for economic damages that had so far cost the company $5.84 billion

Trump Administration to Ease Off-shore Oil Drilling Regulations
Trump administration on May 2, 2019 took another stab at loosening the restrictions and oversight put in place by Obama administration in the aftermath of explosion of BP Deepwater Horizon oil platform in the Gulf of Mexico that had killed 11 workers and spilled more than 3 million barrels of crude in the water. The rules issued on May 2, 2019 by the Interior Department's Bureau of Safety and Environmental Enforcement will eliminate a requirement that the pollution prevention and safety equipment be inspected by third-party investigators. A post-2010 BP disaster panel appointed by President Barack Obama recommended such independent audit. Interior Secretary David Bernhardt lauded the final rule issued on May 2, 2019, saying that "today's final rule" enhanced the safety in a "commonsense way".

Deepwater Horizon Accident Might Have Worse Impact than Known so far, Research Finds
A research by the University of Miami professors that is published in Science on February 12, 2020 points to a broader reach of oil spill than known so far. Until now, the 2010 accident was blamed for spewing 210 million gallons of oil reported to have contaminated around 92,500 miles. According to the latest study, the spill's coverage may be as much as 30% larger and potent enough to kill about 50% of marine life it encountered.

A Decade Later, Drillers are Drilling Deeper, Risking Lives
What a decade means after one of the worst industrial and environmental disasters that had killed 11 people, spewed 135 million gallons of oil into seawater, killed hundreds of thousands of marine lives and battered the tourism industry from Louisiana to Florida in years to come. You have to ask to beholders and stakeholders, and the answers you will get can't be starker. To energy companies, the arrival of Trump administration and subsequent undermining of Obama-era strict safety rules allowed the energy companies to drill deeper and deeper to reap profits, even at the expense of safety. A recent Associated Press analysis found that the on-site visits by inspectors from the Bureau of Safety and Environmental Enforcement had dropped almost by 20% in the past six years, according to April 19, 2020, The Dallas Morning News.

Obama's Jobs Plan

In a special televised address to the joint session of Congress on September 8, 2011, President Barack Obama unveiled his $447 billion jobs plan and asked Congress to approve it. The measure includes $253 billion in tax cuts and $194 billion in federal spending. The measure includes:

* Social Security tax cuts for both employees and employers. At present, employee portion of SS tax is 4.2%, down from 6.2%, but is expected to go up to 6.2% without Congressional action. Under the Obama jobs plan, the Social Security tax cuts for employees will be deepened to 3.1%. For employers, under his plan, the tax rate will go down by 50% to 3.1% for the first $5 million in payroll.

* Establishment of a new National Infrastructure Bank to modernize roads, rails and other public facilities.

The jobs plan calls for investing $140 billion in upgrading roads, bridges and schools, and $35 billion in keeping teachers, firefighters and police.

On September 12, 2011, President Obama unveiled another plan on how to finance his $447 billion jobs plan--formally known as American Jobs Act--made public on September 8, 2011. The finance components include:

* $405 billion by limiting the itemized deductions for charitable contributions and other deductions that can be taken by individuals making over $200,000 a year and families making over $250,000.

* $41 billion from closing loopholes for oil and gas companies.

* $18 billion from requiring fund managers to pay higher taxes on certain income.

* $3 billion from changing the tax treatment of corporate jets.

Obama has asked the congress to quickly pass the American Jobs Act.

Two Senate Republicans on October 13, 2011 unveiled their own jobs plan two days after the chamber rejected Obama's $447 billion jobs plan on October 11, 2011. Under the plan unveiled by Sen. John McCain, R-Ariz. and Sen. Rand Paul, R-KY, the Obamacare will be repealed, curbs will be imposed on EPA's rule-making authority, Dodd-Frank financial rule will be abrogated, and domestic oil and gas production will be encouraged. The plan, according to authors, will create about 5 million new jobs.

After Senate rejected Obama's $447 billion jobs plan on October 11, 2011, Senate Democrats decided to put individual components of the jobs plan to vote. On November 3, 2011, the $60 billion infrastructure building and repair component was defeated on the Senate floor, third such successive defeat of individual piece-by-piece approach, as Sen. Harry Reid was unable to garner procedural 60 votes needed to forward the proposal.

On November 7, 2011, Senate voted 94-1 to begin debating another piece of Obama's jobs plan, repeal of a requirement of federal, state and local governments withholding 3 percent of their payments to contractors. This component has wide-spread support among lawmakers from both political parties and overwhelmingly backed by small businesses. Once this piece is approved by the Senate, Democrats are planning to tag another incentive for veterans: up to $9,600 tax credits for companies that hire disabled veterans who have been jobless for the past six months, and strengthen employment counseling and training programs for vets and troops about to leave the military. On the eve of Veterans' Day on November 11, 2011, Senate passed the bill by 95-0 vote.

Banks Sued for Billions

The parent of Freddie Mac and Fannie Mae, the Federal Housing Finance Agency, on September 2, 2011, sued against a number of banks for packaging and selling mortgage-backed securities with misleading and deceptive information that had eventually led to the financial meltdown in 2008. The financial meltdown eventually caused a massive government bailout, including a $153 billion rescue of Fannie and Freddie and would eventually climb to $363 billion through 2013. The suit has not claimed a specific dollar amount, but going by a similar July 2011 lawsuit filed by the agency against the UBS, government tried to recoup 20% ($900 million) of the $4.5 billion in losses in mortgage securities. The following banks have been sued: Bank of America (sold $50 billion mortgage securities), JP Morgan Chase ($33 billion), Morgan Stanley (more than $10 billion), Deutsche Bank ($14.2 billion), Royal Bank of Scotland ($30.4 billion), Credit Suisse ($14.1 billion), Citigroup and Barclays.

In a separate case, Citigroup on October 19, 2011 settled with Securities and Exchange Commission for $285 million to set aside the charges that the bank had misled investors in a $1 billion derivatives deal tied to the US housing market, and then bet against the investors. The SEC also brought a civil action suit against a Citigroup employee, Brian Stoker, 40, who had structured the transaction, and it had brought and settled against the asset management unit of Credit Suisse and an employee of Credit Suisse, Samir H. Bhatt, 37. The Citigroup didn't say to the investors whom it had sold the so-called Collateralized Debt Obligation that it had selected the assets or it was betting against them. Credit Suisse worked as a collateral manager for the CDO transaction. The CDO sold by Citigroup was known as Class V Funding III. The penalty slapped on Citigroup--$285 million--is the largest penalty since Goldman Sachs & Co. settled similar charges with the SEC by agreeing to pay $550 million last year (2010). In June 2011, JPMorgan Chase & Co. agreed to pay $153.6 million to settle similar charges. The Goldman case had spawned from the misleading information given to investors regarding who was choosing the assets. Goldman Sachs told investors that an independent manager was choosing the assets while John Paulson, a hedge fund manager, chose the assets which he had thought would go down in value.

Exxon's New Exploration Deal in Russia

On August 30, 2011, Irving-based Exxon signed a $3.2 billion exploration deal with state-owned Rosneft in the Kara Sea on the Arctic Ocean. As part of the deal, Rosneft has options to invest in Exxon drilling projects in the Gulf of Mexico and shale oil fields in Texas where hydraulic fracturing is used. The companies will also research into possibilities of finding new shale oil resources in Siberia. The deal is similar to the one Rosneft signed with BP PLC earlier this year, but that deal unraveled in May after BP could not come to the terms with its existing Russian partner, TNK-BP. Exxon and Rosneft, as part of the $3.2 billion deal, will build Arctic Research and Design Center for Offshore Development in St. Petersburg, Russia to (I) develop safety and environmental protection systems; and (II) Organize employee exchange. In 2003, Exxon was trying to make a much bigger bet in Russia with OAO Yukos, then the largest oil company in Russia, but days after the then-CEO of Exxon met with Russian President Vladimir Putin, Yukos founder and CEO Mikhail Khodorkovsky was jailed on charges of tax evasion and fraud. Yukos later filed bankruptcy and most of the assets were transferred to Rosneft.

Keystone XL Pipeline

The Obama administration on August 26, 2011 issued a report clearing the environmental hurdles for 1,700-mile Keystone XL pipeline that will bring oil from tar sands in Alberta to refineries in TX through Montana, South Dakota, Nebraska, Kansas and Oklahoma. Calgary-based TransCanada will build the massive pipeline to ship 700,000 barrels of oil a day, doubling the capacity of an existing pipeline. Environmentalists and activists, including actress Margot Kidder, are demonstrating this week with a sit-in near the White House to express their displeasure, especially over the possibility of contamination of Ogallala Aquifer that provides groundwater to eight states. According to the critics of the prposed pipeline, the Keystone XL will cross over the Carrizo-Wilcox Acquifer in Texas, state's thrid-largest acquifer that supplies water to 60 counties and up to 12 million Texans. Critics often cite the danger that may arise out of a spill such as June 2010 Enbridge Energy oil spill that had dropped 840,000 gallons of hazardous oilsands crude into Kalamazoo River in Michigan. However, the supporters of the project claim that it will create 20,000 high-paying jobs during construction and thousands more in the following years. Also to buttress the security of the pipeline, they claim that the proposed project will comply 57 additional dafety conditions beyond what was developed by the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety office.

The anti-Keystone XL pipeline fervor reached a new peak on November 6, 2011 as thousands of environmentalists and other activists rallied at the Lafayette Square across the White House, and later formed a human chain around the White House. Speakers, including actor Mark Ruffalo, Presidential Medal of Freedom winner John Adams and NASA scientist James Hansen, addressed the crowd criticizing the 1,700-mile proposed pipeline that would bring oil from Western Canada's tar sands in Alberta to refineries in Houston and Port Arthur. On November 7, 2011, the US State Department's Deputy Inspector General Harold W. Geisel announced that IG of the department would look into Obama administration's handling of Calgary-based TransCanada Corp's $7 billion project. The announcement followed after the complaints of the Democratic lawmakers on how the administration was handling the permission process and a large demonstration of environmentalists at the capital's Lafayette Square.

On November 10, 2011, the US State Department announced that it would delay any decision to study the environmental impact the pipeline through an alternative route in order to bypass Nebraska Sandhills region and the state's huge Ogallala Aquifer.

On March 1, 2013, State Department issued a report which made clear that alternatives to building a pipeline such as using freight rail, barge and by road are worse. However, State Department didn't pass any judgment on the merit of building the pipeline.

On June 25, 2013, during a major climate change speech at the Georgetown University, President Obama said that he would order EPA to reject the $7 billion pipeline Keystone Pipeline Project if it increased the carbon dioxide emissions. The proposed pipeline aims to bring 800,000 barrels a day oil from Alberta's tar sand to Cushing, Oklahoma, where the second leg of the pipeline, which has been already approved and the construction has been proceeding, will carry the oil to the Gulf Coast in Texas.

A study released by a prestigious energy research firm, IHS CERA, predicted that the carbon dioxide emission from the Gulf refineries would not be higher for the oils to be transported by the proposed Keystone XL pipeline from the Alberta tar sands relative to that of other sources such as Venezuela. The report issued on August 11, 2013 came as a relief to the Keystone backers as President Obama had said in a major climate-related speech on June 25 that he would oppose Keystone if the project increased emission.

On January 22, 2014, the southern portion of Keystone XL pipeline became operational.

On January 31, 2014, the U.S. State Department issued an "environment impact" report that cleared the way for Obama administration to okay the northern part of Keystone XL pipeline that would bring 830,000 barrels of oil a day from Alberta's tar sand to Gulf Coast refineries. The environment impact report that stated no potential exacerbation of greenhouse gas emissions from the planned pipeline now goes to Secretary of State John Kerry for final recommendation.

A Nebraska Ruling Goes Against Pipeline
A Nebraska state judge, Lancaster County Judge Stephanie Stacy, on February 19, 2014 struck down Nebraska Governor Dave Heineman's approval of eminent domain to help Calgary-based TransCanada to acquire land in future for pipeline construction related to Keystone XL project. Instead the powers of eminent domain reside with Nebraska Public Service Commission, according to the judge's ruling. The ruling handed out a victory to environmentalists and land owners.

Obama Administration Delays Ruling on Keystone
Citing legal wrangling that was winding its way through Nebraska's legal establishment, Obama administration on April 18, 2014 delayed its own decision on whether to approve the Keystone XL Pipeline. However, it was clear to pundits and politicians alike that the administration might be buying time and trying to make a hard call on an issue that divides vertically his traditional allies--on one side of the debate, there is strong lobby of environmentalists and on the other side, it's the labor--in the run-up to November 2014 midterm elections.

House Approves Keystone Pipeline
Upon returning from a big mid-term victory that would hand over the control of the U.S. Senate to the GOP, Republicans made a concerted push to pass a YES vote on the Keystone XL pipeline. The stake became suddenly higher as the Louisiana Democratic Senator Mary Landrieu is in a tough fight with the House sponsor of the bill, Rep. Bill Cassidy, in the December 6, 2014, run-up elections. The House of Representatives okayed construction of pipeline on November 14, 2014 by 252-161 votes.

Keystone Approval Stumbles in the Senate Procedural Hurdles
Senate on November 18, 2014 blocked Keystone XL from moving forward as a bill brought by Louisiana Democratic Senator Mary Landrieu failed to cross the procedural hurdle of 60 votes. The measure received 59 votes, and 41 Senators, all of them are Democrats, voted against it.

Obama under Pressure on Keystone Pipeline
Obama administration came under pressure on January 9, 2015 on approving the Keystone XL pipeline from two fronts: legal and legislative.
Nebraska Supreme Court on January 9 issued an order giving go-ahead to begin construction of the pipeline through the state, a hurdle often mentioned by the Obama administration for putting on hold on any decision regarding the pipeline.
On the same day, House of Representatives voted 266-153 for the construction of pipeline that would ship 830,000 barrels of oil per day from the tar sands in Canada's Alberta province to Gulf of Mexico refineries in Texas.

Senate Passes Keystone Measure
The U.S. Senate on January 29, 2015 approved the construction of Keystone XL pipeline by 62-36 votes. Nine Democrats joined with 53 Republicans to approve the measure. However, the vote still fell short of presidential veto-proof majority. The measure calls for constructing an 1,179-mile network of pipeline that will bring oil from Canada's tar sands in Alberta through Montana and South Dakota to Nebraska where it will connect with an existing pipeline to carry 800,000 barrels of oil to refineries in Texas. Now, the bill goes to the House for re-conciliation with a House-passed bill, or House may take up the Senate version and approve it.

House Endorses the Senate Changes, Passes the Keystone Bill
Taking up the Senate-approved legislation, the House of Representatives on February 11, 2015 passed the Keystone XL pipeline construction bill with 270-to-152 votes. Now the measure goes to President Obama's desk, and the president is all but certain to veto this controversial measure.

President Vetoes the Keystone XL Pipeline Bill
As expected and without any surprise, President Barack Obama on February 24, 2015 used his veto pen, thus putting a nail in the coffin of the fate of Keystone XL Pipeline bill.


Senate Fails to Override Presidential Veto
As expected, the US Senate failed on March 4, 2015 to override the February 24, 2015, presidential veto of the Keystone XL Pipeline bill Congress had passed. The vote, 62-37, fell five votes short of two-third needed for veto-proof threshold.


President Obama Nixes the Keystone Pipeline
After getting recommendation from the State Department that the proposed Keystone Pipeline would not enhance national security, President Barack Obama on November 6, 2015 killed the pipeline. Although the proposed pipeline's impact on either permanent job creation or permanent damage to the climate would be minimal, President Obama cited American leadership in leading the fight against climate change as the reason to reject the pipeline.

Keystone XL Pipeline Project Shelved

TC Energy on June 9, 2021 announced that it was ending the Keystone XL pipeline construction.