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State Department Changes Review Of Controversial Keystone Pipe
News Articles | Dow Jones Newswire | Tennille Tracy | July 27, 2010
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WASHINGTON (Dow Jones) The U.S. State Department has changed the review process for a controversial new oil pipeline that would extend from Canada to Texas, thereby delaying decision on a project that’s been in the works for years.
Several environmental groups oppose the pipeline, known as the Keystone XL Project, and say the State Department is acknowledging the controversy surrounding it.
The State Department’s decision “is procedural, but it’s a big deal,” said Susan Casey-Lefkowitz, director of the Natural Resources Defense Council’s international program. “When you’re making a national interest determination, you have to take the environmental impact into account.”
Following the change in the review, the State Department is unlikely to issue a final decision on the project until 2011, Casey-Lefkowitz said.
A spokeswoman for the State Department wasn’t available for comment.
Alberta-based TransCanada Corp. (TRP, TRP.T) proposed the 1,700-mile pipeline in 2008, hoping to use it to transfer oil extracted from tar sands in Canada to terminals in Houston. The pipeline would be able to transfer up to 900,000 barrels of crude oil every day.
Since then, the project has been under review by the State Department, which was directed by the president to determine whether it was in the best interest of the country.
The State Department had initially tried to pursue two review processes simultaneously, seeking input from other federal agencies while also conducting an environmental-impact review.
With this new procedure, the State Department will finish its environmental- impact review before seeking input from other agencies. The change will tack on an additional 90 days to the review process, which means a final decision is unlikely until 2011.
Tagged with: keystone xl, state department
