TransCanada’s lawsuit against the U.S. government over its Keystone XL pipeline has been put on hold after the company resubmitted an application for the project.
According to the Calgary Herald, Judge Kenneth Hoyt of the Southern District of Texas has put the lawsuit on hold and given TransCanada three months to secure a permit for the project.
Hoyt wrote in his order that the potential for TransCanada to be awarded a presidential permit for the project could “render the matters” tied to the case “moot.”
According to the order, TransCanada submitted its Keystone XL application on January 26.
The State Department is expected to issue a decision on the matter on or near March 27.
Hoyt added that the case will be abated until May 1 to give TransCanada time obtain the State Department’s decision.
TransCanada told the Calgary Herald that it’s reviewing to the decision “to understand its impact on our constitutional challenge and the KXL project.”
President Donald Trump signed an executive order last week inviting the Calgary-based company to resubmit its application for the $8 billion pipeline.
The order also directs federal officials with the Department of the Army, Department of the Interior and Department of the State to undertake all necessary reviews in an “expedited manner.”
The Obama administration killed the Keystone XL project in November 2015 following a years-long review after the State Department concluded the project would not “serve the national interest.”
TransCanada said last January that it intended initiate a claim under Chapter 11 of the North American Free Trade Agreement (NAFTA) in response to the Obama administration’s decision.
The Keystone XL project is a proposed 36-inch-diameter crude oil pipeline, beginning in Hardisty, Alberta, and extending south to Steele City, Nebraska.