Business


Company reapplies for pipeline

Keystone shifts Nebraska route; post-election action likely

WASHINGTON – The Canadian company trying to build the disputed Keystone XL pipeline in the U.S. submitted a new application for the project Friday after changing the route to avoid environmentally sensitive land in Nebraska.

TransCanada said it applied again to the State Department for permission to build the pipeline to carry oil from tar sands in western Canada to a company hub in Steele City, Neb. From there, the project would link up with other pipelines operated by the company to carry oil to refineries on the Texas Gulf Coast.

President Barack Obama blocked the pipeline earlier this year, citing uncertainty over the Nebraska route – a decision that drew fire from Republicans and industry groups.

Calgary-based TransCanada had proposed a new route last month that would veer east around the groundwater-rich Sandhills region before looping back to the original route.

State Department approval is needed because the $7 billion pipeline would cross a U.S. border. The department confirmed Friday the application for the new route had been received.

Obama is under pressure to support the pipeline from Republicans and business and labor leaders who argue it would create jobs; the State Department estimates it could result in up to 6,000 new jobs.

“The multibillion-dollar Keystone XL pipeline project will reduce the United States’ dependence on foreign oil and support job growth by putting thousands of Americans to work,” said Russ Girling, TransCanada’s president and chief executive officer. “Keystone XL will transport U.S. crude oil from the very large Bakken supply basin in Montana and North Dakota, along with Canadian oil, to U.S. refineries.”

The pipeline’s opponents, including many Democrats and environmental groups, say it would transport “dirty oil” from tar sands in Alberta that would require huge amounts of energy to extract. They also worry about a possible spill.

The pipeline would travel through Montana, South Dakota, Kansas and Oklahoma, in addition to Nebraska.

In blocking the pipeline in January, Obama said there was not enough time for a fair review before a looming deadline forced on him by congressional Republicans. The action did not kill the project.

State Department spokesman Mark Toner said U.S. officials would conduct a thorough review of the new application, with a final decision not expected until early next year.


 

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