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Authorizing NuStar Logistics, L.P., To Construct, Connect, Operate, and Maintain Pipeline Facilities at the International Boundary Between the United States and Mexico

This July 29, 2020 Presidential Permit authorizes NuStar Logistics, L.P. to construct, connect, operate, and maintain a 10-inch pipeline at the U.S.-Mexico border in Hidalgo County, Texas, for transporting hydrocarbons and petroleum products (excluding natural gas) across the international boundary. The permit supersedes and revokes a 2017 permit for the same project and includes conditions for construction, inspection, national security provisions, and a 10-year expiration if construction has not commenced.

Federal Register Open PDF 85 FR 46997

Impact dates

  1. Permit expires if construction of Border facilities has not commenced

Key directives

  • Grant permission to construct, connect, operate, and maintain pipeline border facilities at U.S.-Mexico border in Hidalgo County, Texas
  • Supersede and revoke prior permit dated June 28, 2017
  • Require compliance with all applicable laws including PHMSA pipeline safety regulations
  • Require written notice when construction begins, is completed, interrupted, or discontinued
  • Require immediate written notification of any ownership/control transfers or name changes
  • Require permittee to acquire necessary rights-of-way, easements, and permits
  • Require permittee to indemnify United States for liability including environmental contamination
  • Require maintenance of facilities in good repair and compliance with applicable law
  • Permit expires if construction not commenced within 10 years of issuance

Timeline

Immediate

  • Permit takes effect upon issuance
  • Prior 2017 permit revoked

Near term (90d)

  • Permittee may begin filing required statements/reports with agencies

Long term

  • Construction must commence within 10 years (by July 29, 2030) or permit expires
  • Ongoing operation subject to presidential discretion to amend, revoke, or terminate

Risks & tensions

  • Permit explicitly revokes prior 2017 permit for same project, suggesting project modification or regulatory restart
  • Broad presidential discretion to terminate, revoke, or amend without agency advice creates regulatory uncertainty for permittee
  • National security takings provision (Article 4) allows presidential seizure with 'just and fair compensation' but vague standard
  • Indemnification clause (Article 6(2)) exposes permittee to unlimited environmental liability including 'threatened release'
  • 10-year construction commencement deadline is unusually long for infrastructure permits, potentially reflecting project financing or permitting challenges
Other: Authorizing NuStar Logistics, L.P., To Construct, Connect, Operate, and Maintain Pipeline Facilities at the International Boundary Between the United States and Mexico · Executive Orders