President Greenlights New Oil Pipeline Over U.S.-Canada Border
Published Date: 7/3/2025
Presidential Document
Summary
Junction Pipeline Company, LLC got the green light to build and run a new pipeline crossing the U.S.-Canada border in Toole County, Montana. This pipeline will carry crude oil and other petroleum products into the U.S., starting soon under strict rules to keep everything safe and legal. This move affects energy transport and supports cross-border oil trade without changing existing laws.
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Analyzed Economic Effects
7 provisions identified: 2 benefits, 4 costs, 1 mixed.
Indemnity for Environmental and Other Liability
The permit requires the permittee to hold harmless and indemnify the United States from any claimed or adjudged liability arising from construction, connection, operation, or maintenance of the Border facilities, including environmental contamination from release or threatened release of hazardous substances or hazardous waste. The permittee must maintain the facilities in good repair and in compliance with applicable law.
Removal and Decommissioning Expense Requirement
If the permit is terminated, revoked, or surrendered, the permittee must, at its own expense, remove the Border facilities within the time the President specifies. If the permittee fails to comply, the President may direct an official or agency to remove or take other action at the permittee's expense, and the permittee will have no claim for damages caused by such action.
Permit Allows Cross‑Border Oil Imports
The Presidential permit signed June 30, 2025 authorizes Junction Pipeline Company, LLC to construct, connect, operate, and maintain Border pipeline facilities in Toole County, Montana to import crude oil and petroleum products from Canada. The authorized Border facilities include a 30‑inch diameter pipeline extending from the international border to the first mainline shut‑off valve or pumping station approximately one quarter of a mile into the United States. The permit explicitly excludes natural gas subject to section 3 of the Natural Gas Act (15 U.S.C. 717b).
Flexible Throughput and Flow Rules
The permit lets the permittee change the average daily throughput capacity of the Border facilities to any volume achievable through those facilities, and it allows changes to the directional flow of products, without needing a Presidential amendment. In other words, the company may increase or reduce daily volumes and reverse flow direction within the physical limits of the pipeline without a new permit.
Subject to Inspections and Safety Laws
The Border facilities and their construction, connection, operation, and maintenance are subject to inspection by representatives of appropriate Federal, State, and local agencies and must comply with all applicable laws and regulations, including pipeline safety laws administered by the Pipeline and Hazardous Materials Safety Administration. Officers and employees of such agencies will be granted free and unrestricted access to the Border facilities when performing official duties.
Permittee Must Obtain Rights‑of‑Way and Permits
The permittee is responsible for acquiring any required right‑of‑way grants or easements, permits, and other authorizations that become necessary or appropriate for the Border facilities. The company must secure requisite permits from relevant State and local governmental entities and relevant Federal agencies.
U.S. Possession for National Security; Compensation
The permit allows the United States, when necessary for national security, to enter, take possession of, and retain possession, management, or control of any portion of the Border facilities for as long as the President deems necessary after giving due notice. If the United States exercises this right, it will pay the permittee just and fair compensation based on reasonable profit in normal conditions and bear the cost of restoring the facilities to their previous condition, less the reasonable value of any improvements made by the United States.
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