(Fox News) A Nebraska judge on Wednesday struck down a law that allowed the Keystone XL pipeline to proceed through the state, a setback for the project that would carry oil from Canada to Texas refineries.

Lancaster County Judge Stephanie Stacy issued a ruling that invalidated Nebraska Gov. Dave Heineman’s approval of the route. Stacy agreed with opponents’ arguments that a law passed in 2011 improperly allowed Heineman to give TransCanada eminent domain powers within the state. Stacy said the decision should have been made by the Nebraska Public Service Commission, which regulates pipelines and other utilities.

Heineman said Wednesday that state Attorney General Jon Bruning is appealing the ruling.

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