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

Quote: Originally Posted by mentalfloss

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.

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Quote: Originally Posted by jjaycee98

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.

Quote: Originally Posted by captain morgan

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.

Quote: Originally Posted by mentalfloss

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.

Quote: Originally Posted by mentalfloss

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

Quote: Originally Posted by captain morgan

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.

Quote: Originally Posted by earth_as_one

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...

Quote: Originally Posted by captain morgan

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.

Quote: Originally Posted by mentalfloss

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

Quote: Originally Posted by mikemac

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.

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.

Quote: Originally Posted by mikemac

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.

Quote: Originally Posted by taxslave

Pipelines are safer and more cost effective for moving large volumes. But refining here would be a good idea. Good luck getting all the permits though.

Quote: Originally Posted by Dixie Cup

What I don't understand is why we can't refine the bituman here. No one has explained that as far as I can tell.
I agree we should refine the stuff here and then ship it to wherever thus creating good jobs here. As for Canada having refineries, we don't have enough to handle the capacity which is why we need to build additional ones. Here in Edmonton, when something happens to the refinery here, there's a shortage almost immediately as we don't have another one around to pick up the slack.

JMO

Quote: Originally Posted by Dixie Cup

What I don't understand is why we can't refine the bituman here. No one has explained that as far as I can tell.
I agree we should refine the stuff here and then ship it to wherever thus creating good jobs here. As for Canada having refineries, we don't have enough to handle the capacity which is why we need to build additional ones. Here in Edmonton, when something happens to the refinery here, there's a shortage almost immediately as we don't have another one around to pick up the slack.

JMO