Presidential Permit Authorizing South Bow (USA) LP to Operate and Maintain Pipeline Facilities at Cavalier County, North Dakota, at the International Boundary Between the United States and Canada
6/30/2025
Action Summary
- Purpose: Grant a Presidential permit to South Bow (USA) LP for operating and maintaining pipeline Border facilities at the U.S.–Canada international border in Cavalier County, North Dakota, for the transport of hydrocarbons and petroleum products (excluding certain natural gas).
- Supersession: Revokes the previously issued permit dated July 29, 2020, replacing it with this updated permit.
- Facility Definition:
- Facilities: The U.S. portion of the international pipeline project, including associated land, structures, and equipment.
- Border facilities: The 30-inch diameter pipeline from the international border to the first U.S. mainline shut-off valve or pumping station.
- Operational Conditions:
- The permittee must operate and maintain the Border facilities per all conditions and any future amendments.
- Substantial changes to the facilities or operations require prior Presidential approval, except for adjustments in throughput capacity or directional flow.
- Compliance and Inspections:
- Operations are subject to inspections by Federal, State, and local agencies, ensuring adherence to pipeline safety and other applicable laws.
- The permittee must obtain all necessary permits and authorizations from relevant governmental entities.
- Termination and Removal:
- Upon termination, revocation, or surrender of the permit, the permittee must remove the Border facilities at its expense within a specified timeframe.
- Failure to remove may result in government intervention at the permittee’s expense.
- National Security Provision: The President reserves the right to take possession of the Border facilities if required for national security, with just compensation provided and eventual restoration of control to the permittee.
- Ownership and Control Changes: Any transfer of ownership or control, or changes to the permittee’s name, must be immediately reported to the President or his designee.
- Right-of-Way and Liability:
- The permittee is responsible for securing necessary right-of-way grants, easements, permits, and authorizations.
- The permittee shall indemnify and hold harmless the United States against liabilities arising from operation or environmental issues.
- Reporting Requirements: The permittee must file sworn statements or reports regarding the Border facilities and associated operations as required by law.
- Information Sharing: Upon request, the permittee must provide detailed information on current conditions or anticipated changes related to the facilities.
- No Enforceable Rights for Third Parties: The permit does not create any enforceable rights or benefits against the United States or its agents.
Risks & Considerations
- The Presidential permit authorizes the operation and maintenance of pipeline facilities at the U.S.-Canada border, which could have implications for environmental policies and energy resource management. Vanderbilt University may need to consider the potential environmental impacts and align its research and advocacy efforts accordingly.
- There is a risk of legal and regulatory challenges associated with the operation of these pipeline facilities, particularly concerning environmental contamination and compliance with safety standards. This could affect Vanderbilt’s research initiatives in environmental law and policy.
- The permit includes provisions for the U.S. government to take control of the facilities for national security reasons, which could lead to geopolitical tensions and impact international relations research at Vanderbilt.
- Changes in ownership or control of the pipeline facilities must be communicated to the President, indicating a need for transparency and accountability. This could influence Vanderbilt’s studies on corporate governance and international business practices.
Impacted Programs
- Vanderbilt Law School may see increased demand for expertise in environmental law and regulatory compliance, providing opportunities for research and policy development.
- The Vanderbilt Institute for Energy and Environment could play a crucial role in assessing the environmental impacts of the pipeline operations and advising on sustainable practices.
- Political Science and International Relations programs may need to address the geopolitical implications of cross-border energy infrastructure and its impact on U.S.-Canada relations.
- The School of Engineering might explore technological innovations to enhance pipeline safety and efficiency, aligning with the permit’s requirements for maintenance and operation.
Financial Impact
- The operation of the pipeline facilities could influence the energy market, potentially affecting research funding opportunities related to energy economics and policy at Vanderbilt.
- Vanderbilt may have opportunities to secure grants for research on environmental impact assessments and mitigation strategies, particularly in collaboration with federal agencies.
- There could be potential partnerships with industry stakeholders involved in the pipeline operations, providing financial support for research and development initiatives at Vanderbilt.
Relevance Score: 3 (The permit presents moderate risks involving compliance and environmental considerations that could impact Vanderbilt’s research and policy initiatives.)
Key Actions
- Vanderbilt’s Office of Federal Relations should monitor developments related to the Presidential permit for pipeline operations at the U.S.-Canada border. Understanding the regulatory environment and potential changes in federal policies can help the university anticipate impacts on research funding and collaborations, particularly in energy and environmental studies.
- The Vanderbilt Law School could explore the legal implications of the permit conditions, such as environmental liability and compliance with federal regulations. This could provide valuable insights for students and faculty interested in energy law and policy.
- Vanderbilt’s School of Engineering might consider research opportunities related to pipeline safety and maintenance technologies. Engaging in projects that align with federal safety standards could enhance the university’s research portfolio and attract funding.
- The Vanderbilt Center for Environmental Management Studies should assess the environmental impact of pipeline operations and explore partnerships for sustainable energy solutions. This aligns with the university’s commitment to sustainability and could lead to collaborative research initiatives.
Opportunities
- The permit provides an opportunity for Vanderbilt’s Earth and Environmental Sciences Department to engage in research on the environmental impacts of cross-border pipeline operations. This could lead to partnerships with governmental and non-governmental organizations focused on environmental protection.
- Vanderbilt’s Owen Graduate School of Management could explore case studies on the economic implications of international energy trade and infrastructure projects. This would be beneficial for students studying international business and trade.
- The focus on compliance and safety standards presents an opportunity for Vanderbilt’s School of Engineering to develop innovative solutions for pipeline monitoring and maintenance, potentially leading to industry partnerships and funding.
Relevance Score: 3 (Some adjustments are needed to processes or procedures to align with potential research and collaboration opportunities in energy and environmental studies.)
Timeline for Implementation
N/A – No specific deadlines or implementation periods are provided within the directive; while conditions are laid out, none mandate a set timeline for action.
Relevance Score: 1
Impacted Government Organizations
- Pipeline and Hazardous Materials Safety Administration (PHMSA) – U.S. Department of Transportation: This agency is explicitly referenced for oversight of pipeline safety laws and regulations governing the border facilities.
- Relevant Federal Agencies: Various Federal agencies, which may include those responsible for environmental safety, permitting, and national security, are implicated by the directive’s requirements for reporting, inspections, and compliance.
- State Government Agencies: State authorities, particularly in North Dakota, are affected due to permitting requirements and regulatory oversight of the pipeline’s operation.
- Local Government Agencies: Local (county or municipal) agencies in Cavalier County are involved in inspections, permitting, and maintaining safety standards at the installation site.
Relevance Score: 2 (Three to five distinct levels of government are impacted by this executive action.)
Responsible Officials
- President or His Designee – Holds ultimate authority to approve major changes, intervene for national security purposes, and receive required reports regarding the Border facilities.
- Representatives of Appropriate Federal, State, and Local Agencies – Tasked with inspecting the Border facilities to ensure compliance with all applicable laws, regulations, and safety standards.
- Pipeline and Hazardous Materials Safety Administration (PHMSA) – Responsible for enforcing pipeline safety regulations administered by the U.S. Department of Transportation as applicable.
Relevance Score: 5 (Directives affect top-level governmental oversight by involving the President or his designee and key regulatory agencies with national security implications.)