Nebraska responds to lawsuit calling Keystone XL review law unconstitutional

LINCOLN, Neb. – Nebraska says a law that establishes a review process for TransCanada’s proposed Keystone XL oil pipeline is constitutional.

The state responded Monday to a lawsuit filed by three opponents of the pipeline that will carry bitumen from the Alberta oilsands across several U.S. states to Gulf coast refineries.

The lawsuit claims the state law is unconstitutional because it doesn’t allow for judicial review or spell out what criteria should be considered when evaluating a pipeline project.

Three landowners filed the lawsuit. The state argued unsuccessfully in September for the lawsuit to be dismissed.

The state Attorney General’s Office also contends that the landowners have no rights to assert as taxpayers in this case because no tax money is being spent. TransCanada (TSX:TRP) is required to reimburse the state for the review.