U.S. to re-route Keystone XL due to environmental concerns

mentalfloss

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State Dept eyes rerouting Keystone XL pipeline

WASHINGTON (Reuters) - The State Department is considering rerouting TransCanada Corp.'s proposed $7 billion Keystone XL pipeline to avoid ecologically sensitive areas of Nebraska, a U.S. official said on Tuesday.

The State Department has been weighing issues raised in public meetings and talks with officials in six states that would be affected "including whether to consider a rerouting of the Keystone XL pipeline away from an environmentally delicate area of Nebraska," the official said.

A decision to consider an alternative route would require an environmental impact study on the new segment of the pipeline, the official said. Such a move could delay a final decision on whether to go forward on the pipeline.

The State Department said last week that it still hoped to make a decision by the end of the year, but did not rule out delaying the decision if necessary.

Nebraska lawmakers are considering legislation to regulate the pipeline and possibly force TransCanada Corp to move its route away from the state's ecologically sensitive Sand Hills region and Ogallala aquifer, a major source of drinking and irrigation water for several states.

The State Department has the power to decide whether the TransCanada Corp's pipeline can go forward because the project crosses the national border.

President Barack Obama said last week that health and economic factors would be taken into account when his administration decides whether to approve the pipeline.

Obama's inclinations about the pipeline are being closely watched by environmentalists, who oppose the project, and proponents, who say it would create jobs.

If Nebraska succeeds in changing the route for the planned pipeline, the could delay the project.
"The State Department is committed to conducting a thorough, rigorous and transparent process that leads to a decision that is in the national interest, including if needed gathering and assessing additional information," a State Department official familiar with the process said.

The $7 billion project would take 700,000 barrels per day or more from Canada's oil sands in the province of Alberta through six states to refineries in Texas.

TransCanada said last month that it was too late in the federal approval process to move the proposed path for the line.

State Dept eyes rerouting Keystone XL pipeline | Business | Reuters
 

jjaycee98

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Jan 27, 2006
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State Dept eyes rerouting Keystone XL pipeline

WASHINGTON (Reuters) - The State Department is considering rerouting TransCanada Corp.'s proposed $7 billion Keystone XL pipeline to avoid ecologically sensitive areas of Nebraska, a U.S. official said on Tuesday.

The State Department has been weighing issues raised in public meetings and talks with officials in six states that would be affected "including whether to consider a rerouting of the Keystone XL pipeline away from an environmentally delicate area of Nebraska," the official said.

A decision to consider an alternative route would require an environmental impact study on the new segment of the pipeline, the official said. Such a move could delay a final decision on whether to go forward on the pipeline.

The State Department said last week that it still hoped to make a decision by the end of the year, but did not rule out delaying the decision if necessary.

Nebraska lawmakers are considering legislation to regulate the pipeline and possibly force TransCanada Corp to move its route away from the state's ecologically sensitive Sand Hills region and Ogallala aquifer, a major source of drinking and irrigation water for several states.

The State Department has the power to decide whether the TransCanada Corp's pipeline can go forward because the project crosses the national border.

President Barack Obama said last week that health and economic factors would be taken into account when his administration decides whether to approve the pipeline.

Obama's inclinations about the pipeline are being closely watched by environmentalists, who oppose the project, and proponents, who say it would create jobs.

If Nebraska succeeds in changing the route for the planned pipeline, the could delay the project. "The State Department is committed to conducting a thorough, rigorous and transparent process that leads to a decision that is in the national interest, including if needed gathering and assessing additional information," a State Department official familiar with the process said.

The $7 billion project would take 700,000 barrels per day or more from Canada's oil sands in the province of Alberta through six states to refineries in Texas.

TransCanada said last month that it was too late in the federal approval process to move the proposed path for the line.

State Dept eyes rerouting Keystone XL pipeline | Business | Reuters

That will stall it beyond 2012 Election day and take it out of the mix as a issue.

Question now is whether the same bunch will stall the pipeline out to Kitimat, BC. or if it will be snooze you loose! The oil may go directly, unrefined, to China by Tankers.
 

mentalfloss

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Keystone may not survive U.S. delay: Flaherty

The U.S. State Department’s decision to delay its review of TransCanada Corp.’s $7-billion Keystone XL pipeline until after next year’s presidential election may doom the project and accelerate Canada’s efforts to ship crude to Asia, Canadian Finance Minister Jim Flaherty said.

“The decision to delay it that long is actually quite a crucial decision. I’m not sure this project would survive that kind of delay,” Flaherty said yesterday in an interview at the Asia-Pacific Economic Cooperation summit in Honolulu. “It may mean that we may have to move quickly to ensure that we can export our oil to Asia through British Columbia.”


The deferral on Keystone XL is a blow to the government of Prime Minister Stephen Harper, who called U.S. approval of the pipeline a “no brainer.”
Canadian officials underestimated the strength of resistance to the project by Nebraska farmers and environmentalists, political and foreign-policy experts said.

The State Department said yesterday it will study an alternative route to avoid environmentally sensitive areas in Nebraska. Nebraskan farmers, officials in the state and some members of Congress argue the proposed route across the Sandhills area risks contaminating the Ogallala aquifer that supplies water to 1.5 million people.

Harper has promoted his country as an “energy superpower,” pointing to its political stability compared with other suppliers. Canada is already the biggest foreign supplier of oil to the U.S. and provides the country with almost a quarter of its crude imports, twice what Saudi Arabia does.

Canada had dispatched senior officials and diplomats to lobby on behalf of the pipeline. In an interview at Bloomberg headquarters in New York on Sept. 21, Harper said approval of the project was a “no brainer” because it would create jobs in the U.S. and help the country secure its energy supply.

Keystone may not survive U.S. delay: Flaherty | Economy | News | Financial Post
 

captain morgan

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That will stall it beyond 2012 Election day and take it out of the mix as a issue.

Question now is whether the same bunch will stall the pipeline out to Kitimat, BC. or if it will be snooze you loose! The oil may go directly, unrefined, to China by Tankers.


That style of action is what will get the US State Dept moving on this. Obama is simply deferring the issue until after the upcoming Presidential elections.

If I were to guess, Harper et al will throw their support behind the West Coast line and (hopefully) also push for refining of the Canadian product in Canada prior to shipping it to Asia/Pacific Rim.
 

mentalfloss

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Jun 28, 2010
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That style of action is what will get the US State Dept moving on this. Obama is simply deferring the issue until after the upcoming Presidential elections.

Well he's going to have to deal with some pesky Nebraskan lawyers in the meantime. His best option is to get the pipeline re-routed as quickly as possible and then bang out a deal with us for the revised route even quicker.

Either way, the original project is definitely not a 'no brainer', lol
 

captain morgan

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Well he's going to have to deal with some pesky Nebraskan lawyers in the meantime. His best option is to get the pipeline re-routed as quickly as possible and then bang out a deal with us for the revised route even quicker.

No doubt, Neb will be making Obama's job much more difficult, but what he won't have to deal with is the political fall out from the eco-lobbies just prior to an election.

Either way, the original project is definitely not a 'no brainer', lol

I understand the the US consumes 50MM bbls/day, of which 20% comes from Canada.

In teh event that Harper fast tracks the West Coast line, the US Dept of Energy will be pinning for the days when XL could have been facilitated by Obama.
 

earth_as_one

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That style of action is what will get the US State Dept moving on this. Obama is simply deferring the issue until after the upcoming Presidential elections.

If I were to guess, Harper et al will throw their support behind the West Coast line and (hopefully) also push for refining of the Canadian product in Canada prior to shipping it to Asia/Pacific Rim.

I'm not all that keen on increasing our reliance on the US.

Strategically, a 100% Canadian pipeline from Alberta to BC makes more sense. While a pipeline though the Rockies will present engineering and environmental challenges, its also historic opportunity to increase Canada's wealth and prosperity.

If Canada goes into recession, Canada could stimulate the economy with this project.
 

captain morgan

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Strategically, a pipeline from Alberta to BC makes more sense. I'm not all that keen on increasing our reliance on the US. While a pipeline though the Rockies will present engineering and environmental challenges, its also a historic opportunity and a great stimulus project...


It will be very interesting to see the political maneuvering on this issue. The enviro risk on traversing the Rockies will be a far greater challenge than the Southern route, so it will be even more interesting to observe the federal and provincial regulations applied to any efforts to the West Coast.

Although I'm not a big fan of Obama, I do have sympathy.. He's stuck between a rock and a hard place on this one in terms that the eco lobby would roast him come election time had he approved the project, but now he's in the position where Americans will be asking about energy security and the associated jobs that may be delayed because of political posturing.
 

mentalfloss

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Although I'm not a big fan of Obama, I do have sympathy.. He's stuck between a rock and a hard place on this one in terms that the eco lobby would roast him come election time had he approved the project, but now he's in the position where Americans will be asking about energy security and the associated jobs that may be delayed because of political posturing.

If he negotiates a re-route, he can use it to his political advantage on both the economy and the environment.
 

mikemac

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Oct 13, 2008
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Keystone pipeline delayed until 2013

Keystone pipeline delayed until 2013
Keystone XL pipeline delay disappoints TransCanada - World - CBC News

The Harper administration and the Alberta Premier are crying the blues.

And they are suggesting that Canada can sell the un-refined oil to China.

Are they braindead. Canada has it's own refineries. Why would they want to pipe it to Texas to have it refined there.

It seems to me that the Harper administration and the Alberta Premier are more concerned with temporary jobs in the US building the pipeline than they are concerned about permanent jobs for Canadians. If it was refined in Canada it would supply permanent Canadian jobs in the refinery as well as permanent Canadian jobs to truck it to Texas after it was refined.

Take the vote on the side of the web site above. It's already showing 54.21% in favour of Alberta processing the bitumen here in Canada.
 

taxslave

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Re: Keystone pipeline delayed until 2013

Yea everyone wants more manufacturing etc in Canada until the time comes to actually build something then all the NIMBYs, NOPEs and BANANAs are out in full force to protest it.
A pipeline to Kitimat or Prince Rupert so we can ship oil offshore is a good idea to help keep us from being so dependent on the US market.
 

earth_as_one

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Re: Keystone pipeline delayed until 2013

Taking into account how a project affects people, long term consequences and risks is also known as proper planning.

Proper planning in advance can save time and effort later on...
 

earth_as_one

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Taking into account how a project affects people, long term consequences and risks is also known as proper planning.

Proper planning in advance can save time and effort later on...
 

mikemac

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Re: Keystone pipeline delayed until 2013

taxslave it doesn't need to be piped to Texas, Kitimat or Prince Rupert when we already have refineries here in place in Canada. Truck it or train it, don't pipe it.
 

Mowich

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Where once I had respect for President Obama, this latest and obviously political decision to forgo the prospect of so many jobs in a country much in need of them, I now think he is fast fading in relevance.

It would be in Canada's best interests to turn all efforts away from the US and seek markets for our oil elsewhere.
 

BruSan

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I'm actually somewhat relieved this is playing out the way it is. For some time now I've been concerned at the traction "protectionism" is being given by American politicians and the MSM below the border.

The current delays to the border agreements to streamline international commerce, the calls by the President to "buy american" are all indicators of the U.S.'s tendancy to be a friend and ally in name only. They give Mexico more leeway than us and to my recollection no Mexicans died (serving under a Mexican flag) in Korea, a bunch of crappy places in Africa, Iraq, Afghanistan or any of the other places needing peace keeping forces, yet we are constantly referred to as that socialist nation to the north who hasn't carried their share of the defense burden.

I predict the U.S. demanding to re-visit the NAFTA deals made in good faith in the interests of furthering a protectionist agenda. We were essentially bullied into NAFTA by them, now the worm has turned and our reliance on that huge market is going to bite us in the hiney.

If there is one thing I applaud the current conservative government for it's seeking broader markets offshore with other countries so that our reliance on a fair weather friend doesn't catch us napping.

I'm sorry to say but perhaps refining in-house and seeking broader markets overseas for our oil will garner us better friends for the future as the one to the south is never going to be appreciative or considerate of our loyalty to them as ever being enough.

Cancel the XL pipeline as just another example of the U.S. reneging on a deal and pipe the stuff to the coast instead. If it must be shipped somewhere, sell it to the highest bidder; after all isn't that the American way?
 

Retired_Can_Soldier

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Mar 19, 2006
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Re: Keystone pipeline delayed until 2013

Guess the US of A will have to bring it in the Old Fashion Way.



Brilliant environmental move if you ask me.

taxslave it doesn't need to be piped to Texas, Kitimat or Prince Rupert when we already have refineries here in place in Canada. Truck it or train it, don't pipe it.

That's definitely safer.
 

Durry

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May 18, 2010
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It looks like Trans Canada has a lot, if not most, of this pipe stored at a staging site in North Dakota. This pipe that is stored there looks like it has the yellow jacket pipe protection already on this pipe. This would be normal as they would apply this yellow jacket after the pipe is formed as part of the pipe manufacturing process.

However, this yellow jacketted pipe can only be exposed to the sunlight for about six months (+/-) before the yellow jacket begins to break down under the sunlight. It will be interesting to see what TC decides to do with this pipe stock piled in ND ..