January 19, 2012

Obama administration rejects TransCanada Pipelines Keystone XL pipeline project

On January 18, the Obama administration announced it is denying a presidential permit for Transcanada's proposed Keystone XL pipeline, and that at this time the pipeline does not serve the national interest.

In a statement from the U.S. Department of State, President Obama concurred with the Department’s recommendation, made because it was determined the Department will not have the time necessary to assess whether the project, in its current state, is in fact in the national interest.

The administration has previously stated they would have no choice but to reject the proposed pipeline after congressional Republicans forced an early decision on the project by adding it as a rider to an important payroll cut bill in late December 2011.

Transcanada is able to re-apply once the pipeline has been re-routed around ecologically sensitive land in Nebraska, and the Department of State said this denial does not stop applications for similar projects.

Transcanada is working with officials in Nebraska to reroute the pipeline, but while the new route could be identified within weeks, the state of Nebraska will have to conduct a new environmental assessment, adding months of wait time.

In its statement, the Department of State estimated that “based on prior projects of similar length and scope, that it could complete the necessary review to make a decision by the first quarter of 2013. In consultations with the State of Nebraska and TransCanada, they agreed with the estimated timeline.”

Canadian Prime Minister Stephen Harper has recently increased rhetoric recently regarding opening up oil exports via pipeline to Asia in response to the Keystone XL resistance in the United States.

JOC DIGITAL MEDIA

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