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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

This Presidential Permit authorizes South Bow (USA) LP to operate and maintain existing pipeline border facilities at Cavalier County, North Dakota, for transporting hydrocarbons and petroleum products across the U.S.-Canada international boundary. The permit supersedes and revokes the previous permit issued on July 29, 2020, and includes standard conditions regarding inspection access, regulatory compliance, national security takings, and liability indemnification.

Federal Register Open PDF 90 FR 29405

Impact dates

  1. Permit takes effect upon issuance June 30, 2025

  2. Previous July 29, 2020 permit superseded and revoked

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

Oil & gasShipping & logistics

Mechanisms

Licensing

Role pressure

  • MixedProject developer — South Bow gains operational certainty for existing facilities but assumes broad indemnification liability and national security takings risk
  • ProtectiveTrading-partner exporter — Canadian-affiliated entity (South Bow Corporation) retains access to U.S. market via permitted cross-border infrastructure
  • UncertainDownstream manufacturer — Flexibility to change throughput capacity and directional flow may affect refined product availability and pricing in region

Geographies

USCA

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

LNGCheniere EnergyDACDanaosFDXFedExSHELShellTSLATeslaUPSUPSZTOZTO Express

Confidence: high · Policy alerts

Key directives

  • Operate and maintain existing 30-inch pipeline border facilities at Cavalier County, ND
  • Comply with PHMSA pipeline safety laws and regulations
  • Obtain requisite state and local permits
  • Allow free access to federal, state, and local inspectors
  • Report ownership/control transfers immediately to President or designee
  • Maintain facilities in good repair and compliance with applicable law
  • File required sworn statements and reports with agencies
  • Indemnify United States from liability including environmental contamination
  • Remove facilities upon permit termination at President-specified time if ordered

Timeline

Immediate

  • Permit takes effect upon issuance June 30, 2025
  • Previous July 29, 2020 permit superseded and revoked

Near term (90d)

  • Permittee must maintain compliance with PHMSA pipeline safety regulations
  • State and local permits to be obtained as needed

Long term

  • Ongoing operation and maintenance subject to presidential amendment for substantial changes
  • Potential national security takings under Article 4 if deemed necessary by President

Risks & tensions

  • Revocation of 2020 permit may reflect policy shift from prior administration, though specific motivation unstated
  • Article 4 national security takings provision creates latent expropriation risk for permittee
  • Indemnification clause in Article 6(2) places broad liability on permittee including environmental releases
  • Permittee may change throughput capacity and directional flow without presidential approval, creating operational flexibility but potential market uncertainty
  • Cross-border hydrocarbon transport remains politically sensitive regarding climate and energy security priorities
Other: 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 · Executive Orders