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U.S. Supreme Court Greenlights Utah Oil Train, Narrows Environmental Review Powers
U.S. Supreme Court Greenlights Utah Oil Train, Narrows Environmental Review Powers

U.S. Supreme Court Greenlights Utah Oil Train, Narrows Environmental Review Powers

  • 02-Jun-2025 10:30 AM
  • Journalist: Emilia Jackson

In a unanimous 8-0 decision, the U.S. Supreme Court today delivered a significant victory to the controversial Uinta Basin Railway project, overturning a lower court ruling that had halted its progress. The high court's decision affirms the 2021 review by the Surface Transportation Board (STB) as adequate under the National Environmental Policy Act (NEPA), potentially paving the way for a substantial increase in crude oil shipments through Colorado and along the Colorado River.

The ruling reverses a 2023 decision by the U.S. Court of Appeals in Washington, D.C., which had found the STB's approval insufficient, arguing it failed to adequately consider the broader environmental impacts beyond the immediate construction of the 88-mile rail line in Utah. Environmental groups, including the Center for Biological Diversity and Earthjustice, along with Eagle County, Colorado, had championed this broader interpretation, citing concerns about increased oil drilling, downstream refining pollution, and the risk of catastrophic oil spills along the Colorado River.

However, Justice Brett Kavanaugh, writing for the majority, asserted that NEPA is a "procedural cross-check, not a substantive roadblock," and that agencies are only required to address the environmental effects of the "project at issue." The ruling emphasizes that the STB was not obligated to analyze the impacts of upstream oil drilling or downstream oil refining, but rather only the direct effects of the 88-mile railway line itself. This decision aligns with the view that NEPA lawsuits have often pushed agencies to go beyond the original scope of the act, leading to delays and increased litigation.

The Uinta Basin Railway is designed to connect Utah's rural Uinta Basin oilfields with the national rail network, providing a more efficient transportation method for the region's viscous, waxy crude. Currently, much of this crude is transported by truck, a method supporters argue is less efficient and more costly. Proponents, including the Seven County Infrastructure Coalition and the Ute Indian Tribe, contend that the railway will bring significant economic benefits and stability to the region by facilitating increased oil production and access to larger markets, primarily Gulf Coast refineries. Utah's oil production saw a record high in 2024, exporting 33 million barrels, largely from the Uinta Basin.

Opponents, however, quickly expressed their dismay. Colorado Attorney General Phil Weiser called the railway "a risky scheme" posing "major risks to Colorado's Western Slope communities." Environmental groups warned that the decision severely limits the scope of NEPA at a time when the current administration has expressed intentions to accelerate oil and gas development. They argue that the ruling will enable federal agencies to disregard foreseeable environmental harms and weaken the power of communities to challenge inadequate environmental analyses.

The Supreme Court's ruling sends the case back to the U.S. Court of Appeals for further review, but the clear stance on NEPA's scope is expected to significantly influence future infrastructure projects across the nation.

Tags:

Crude Oil

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