February 1

Keystone XL oil pipeline clears major hurdle

A State Department report gives Obama political cover if he chooses to endorse the pipeline in spite of opposition from some Democrats and environmental groups.

By Matthew Daly
The Associated Press

WASHINGTON — The long-delayed Keystone XL oil pipeline cleared a major hurdle toward approval Friday, a serious blow to environmentalists' hopes that President Barack Obama will block the controversial project running more than 1,000 miles from Canada through the heart of the U.S.

click image to enlarge

In this May 24, 2012, photo, about 500 miles worth of coated steel pipe manufactured by Welspun Pipes Inc. for the Keystone oil pipeline is stored in Little Rock, Ark.

The Associated Press

click image to enlarge

In this Dec. 3, 2012, photo, crews work on construction of the TransCanada Keystone XL Pipeline east of Winona, Texas.

The Associated Press

The State Department reported no major environmental objections to the proposed $7 billion pipeline, which has become a symbol of the political debate over climate change. Republicans and some oil- and gas-producing states in the U.S. — as well as Canada's minister of natural resources — cheered the report, but it further rankled environmentalists already at odds with Obama and his energy policy.

The report stops short of recommending approval of the pipeline, but the review gives Obama new support if he chooses to endorse it in spite of opposition from many Democrats and environmental groups. Foes say the pipeline would carry "dirty oil" that contributes to global warming, and they also express concern about possible spills.

Republicans and business and labor groups have urged Obama to approve the pipeline to create thousands of jobs and move toward North American energy independence. The pipeline is also strongly supported by Democrats in oil and gas-producing states, including Sens. Mary Landrieu of Louisiana, Mark Begich of Alaska and Mark Pryor of Arkansas. All face re-election this year and could be politically damaged by rejection of the pipeline. Republican Mitt Romney carried all three states in the 2012 presidential election.

The 1,179-mile pipeline would travel through the heart of the United States, carrying oil derived from tar sands in western Canada to a hub in Nebraska, where it would connect with existing pipelines to carry more than 800,000 barrels of crude oil a day to refineries in Texas. It would cross Montana and South Dakota before reaching Nebraska. An existing spur runs through Kansas and Oklahoma to Texas.

Canadian tar sands are likely to be developed regardless of U.S. action on the pipeline, the report said, and other options to get the oil from Canada to Gulf Coast refineries — including rail, trucks and barges — would be worse for climate change.

State Department approval is needed because the pipeline crosses a U.S. border. The Environmental Protection Agency and other departments will have 90 days to comment before State makes a recommendation to Obama on whether the project is in the national interest. A final decision by the government is not expected before summer.

Senate Minority Leader Mitch McConnell, R-Ky., said the report "once again confirms that there is no reason for the White House to continue stalling construction of the Keystone XL pipeline." Addressing Obama, McConnell said: "Mr. President, no more stalling, no more excuses. Please pick up that pen you've been talking so much about and make this happen. Americans need these jobs. "

However, a top official at the Natural Resources Defense Council, an environmental group, said the report gives Obama all the information he needs to reject the pipeline.

"Piping the dirtiest oil on the planet through the heart of America would endanger our farms, our communities, our fresh water and our climate. That is absolutely not in our national interest," said Susan Casey-Lefkowitz, the NRDC's international program director.

In Canada, Natural Resources Minister Joe Oliver welcomed the report and said of the pipeline: "The benefits to the U.S. and Canada are clear. We await a timely decision."

(Continued on page 2)

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