In a closely watched case related to the construction of the Keystone XL pipeline, a judge in Texas has ruled against a landowner and in favor of TransCanada Corp. (NYSE: TRP) in a decision upholding the company's right of eminent domain. TransCanada already has received regulatory approval to build a 485-mile-long portion of the Keystone XL pipeline that will transport crude oil from Cushing, Ok., to Port Arthur, Tex., and plans to begin construction as soon as possible.
Those trying to block construction of the pipeline argued that eminent domain did not apply in this case because the proposed pipeline was not a common carrier, but rather a private project that must negotiate right-of-way with each landowner along the route. The judge sided with TransCanada and the Texas Railroad Commission, the state regulatory agency for the oil industry.
Shares of TransCanada closed at $45.71 yesterday in a 52-week range of $37.58 to $46.76. The 52-week high was set on Tuesday, and the stock is up about 13% in the past 12 months.
Filed under: 24/7 Wall St. Wire, Law, Oil & Gas Tagged: TRP