In a significant move concerning the energy sector, President Donald Trump has granted a Presidential permit to Steel Reef US Pipelines LLC. This authorization allows the company to operate and maintain existing pipeline border facilities at the international border between the United States and Canada, specifically located in Burke County, North Dakota.
The permit enables the permittee, Steel Reef US Pipelines LLC, to export natural gas liquids from the United States into Canada. However, the permit explicitly excludes natural gas exports that fall under section 3 of the Natural Gas Act, as amended.
This permit highlights the continuing emphasis on the energy infrastructure between the neighboring countries, reaffirming the strategic importance of natural gas liquids in the North American energy landscape.
Despite the grant of this permit, it is crucial to note that all activities related to the Border facilities remain subject to existing laws and regulations. Article 2 of the permit emphasizes that these facilities must comply with all pertinent Federal, State, and local laws, including pipeline safety standards set forth by the Pipeline and Hazardous Materials Safety Administration of the U.S. Department of Transportation.
The term ‘Facilities,’ as defined in the permit, pertains specifically to the portion of the international pipeline project associated with Steel Reef’s pipeline system and includes various land, structures, installations, or equipment linked to the pipeline.
Similarly, the ‘Border facilities’ refer to an 8.625-inch diameter pipeline that is already in existence. This pipeline extends from the U.S.-Canada border and includes the initial mainline shut-off valve or pumping station in the United States.
The Presidential permit comes with several conditions detailed in a series of articles designed to ensure safety, compliance, and operational integrity. Article 1 stipulates that no significant changes can be made to the Border facilities unless approved by the President through a permit amendment. This provision allows for modifications in daily throughput capacity and directional flow of products without requiring a new permit.
Article 2 highlights the need for inspections by authorized representatives from pertinent government agencies, ensuring that the facilities maintain compliance with operational safety standards.
In the event that the permit is terminated, revoked, or surrendered, Article 3 outlines the responsibility of the permittee to remove the Border facilities at their own expense. Failure to comply may result in the President directing an official agency to execute the removal at the permittee’s cost, with no claims for damages allowed.
In terms of national security, Article 4 provides the President with the authority to take control of the Border facilities if deemed necessary. This includes the right to manage, operate, or maintain the facilities temporarily but mandates fair compensation to the permittee for their usage of the infrastructure.
Moreover, Article 5 addresses ownership transfers, stipulating that any changes must be communicated immediately to the President, including essential details about any transferee. Regardless of ownership changes, the permit will still remain in effect under all original conditions.
Article 6 places the onus of responsibility on the permittee to secure necessary right-of-way grants or easements, as well as required permits for operations of the facilities. Furthermore, it mandates the permittee to indemnify the United States against any liabilities arising from their operations, thus protecting federal interests.
The permittee is also charged with ensuring that the Border facilities operate safely and remain in good condition, compliant with all applicable laws. Regular maintenance and safe operation are underscored as priorities.
Conditions for reporting and communication are outlined in Articles 7 and 8, where the permittee must provide sworn statements or reports regarding their activities connected to the Border facilities as required by relevant federal regulations.
Additionally, the permittee is tasked with providing information upon request to the President or designee, which may concern various operational or maintenance aspects.
Finally, it is notable that the permit does not create enforceable rights or benefits against the United States or any of its departments, agencies, or entities. This reiterates the unilateral nature of the permit, affirming its directive status issued by the President alone.
The Presidential permit was officially granted on June 30, 2025, formalizing Steel Reef US Pipelines LLC’s role in operating cross-border pipeline facilities that are pivotal for the transfer of natural gas liquids between the United States and Canada.
This decision plays a vital role in bolstering energy exports, ensuring that the infrastructure necessary for such operations is clearly defined and regulated, thus providing a structured approach to energy distribution in North America.
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