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Authorizing Front Range Pipeline, LLC, To Operate and Maintain Existing Pipeline Facilities at the International Boundary Between the United States and Canada

This October 3, 2020 Presidential Permit authorizes Front Range Pipeline, LLC—a subsidiary of agricultural cooperative CHS Inc.—to operate and maintain two existing pipelines (10-inch and 12-inch diameter) at the U.S.-Canada border in Toole County, Montana, for transporting refined and unrefined hydrocarbon products. The permit imposes standard conditions including regulatory compliance, inspection access, national security provisions, indemnification requirements, and presidential authority to terminate or take possession of the facilities.

Federal Register Open PDF 85 FR 63985

Key directives

  • Authorize operation and maintenance of existing 10-inch and 12-inch pipelines at U.S.-Canada border in Toole County, Montana
  • Permit transport of hydrocarbons and petroleum products (excluding natural gas under Natural Gas Act)
  • Require compliance with all applicable laws including PHMSA pipeline safety regulations
  • Grant federal/state/local inspectors free and unrestricted access
  • Require permittee to hold harmless and indemnify U.S. for environmental liabilities
  • Require maintenance in good repair and legal compliance
  • Mandate written notification of ownership/control transfers or name changes
  • Require filing of sworn statements/reports with President/designee and agencies
  • Provide information upon request concerning ownership, construction, operation, maintenance

Who is ordered

Timeline

Immediate

  • Permit takes effect upon issuance; Front Range Pipeline authorized to operate and maintain existing border facilities

Near term (90d)

  • Ongoing compliance with PHMSA pipeline safety regulations
  • Potential filing of required statements/reports with agencies

Long term

  • Continued operation subject to presidential discretion to amend, revoke, or terminate
  • Potential future ownership transfers must be reported
  • Facility removal obligations if permit terminated

Risks & tensions

  • Permit explicitly preserves presidential unilateral authority to terminate, revoke, or amend without agency advice—creating regulatory uncertainty for permittee
  • National security takings provision (Article 4) allows presidential seizure with 'due notice' but no specified timeline or process
  • Indemnification clause (Article 6(2)) exposes permittee to unlimited liability for environmental contamination without cap
  • Vague 'just and fair compensation' standard for national security takings lacks concrete valuation methodology
  • Permit applies only to 'existing' facilities—substantial changes require presidential approval, but throughput and directional flow changes are exempted from this requirement
Other: Authorizing Front Range Pipeline, LLC, To Operate and Maintain Existing Pipeline Facilities at the International Boundary Between the United States and Canada · Executive Orders