Morris said the government must provide "new and relevant information regarding the risk of spills".
A federal judge says the Trump administration did not consider environmental consequences of the controversial Keystone XL pipeline, dealing a setback for the Trump administration and a win for environmental groups.
Native tribes protest US President Donald Trump's decision to revive the Dakota Access project, and the Keystone XL pipeline.
Judge Morris is the latest jurist to block Mr. Trump's initiatives under administrative-law rule, claiming that his officials have cut corners in administrative processes to make political decisions.
The Trump administration has regularly run afoul of the courts in its attempts to repeal environmental rules and approve fossil fuel projects.
U.S. President Donald Trump approved a permit for the pipeline in January 2017, reversing a 2015 decision by predecessor Barack Obama.
"The Trump administration tried to force this dirty pipeline project on the American people, but they can't ignore the threats it would pose to our clean water, our climate, and our communities", Hayes said.
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The administration is appealing numerous rulings and may appeal Thursday's decision as well. TransCanada, the Calgary-based group behind the project, did not respond to request for comment early Friday morning.
Trump claimed there would be "great construction jobs" stemming from Keystone XL, which involves the building of a 1,200 mile pipeline across six U.S. states in order to bring crude oil from Alberta in Canada to refineries on the Gulf Coast.
In his ruling, the judge noted that the Department's analysis fell short of a "hard look" and requires a supplement to the 2014 supplemental environmental impact statement (SEIS) in order to comply with its obligations under National Environmental Policy Act.
Opposition to the Keystone XL pipeline has centered on climate change concerns, as well as potential damage to endangered species and to local landowners, including native Americans, whose property would be dug up for the pipeline. In the US, the pipeline would stretch 875 miles through Montana, South Dakota and Nebraska, with the rest continuing into Canada. Native American groups in Montana and elsewhere fought the Keystone project as well, saying its route failed to adhere to historical treaty boundaries and would impinge on their water systems and sacred lands.
US benchmark WTI little changed after the decision, trading down 0.1 percent.
The analysis of a cross-border project like this is done by the State Department.
"An agency can not simply disregard contrary or inconvenient factual determinations that it made in the past", Morris wrote Thursday. "That's why we keep winning in the court".