New XL Keystone Pipeline Application Filed

Calgary based Trans Canada Corp has filed a new application for the XL Keystone pipeline with the U.S. State Department.  The pipeline would carry crude oil from Hardesty, Alberta to Cushing Oklahoma.  The new application includes the new 33km route around the environmentally sensitive Nebraska sandhills.

Earlier this year the initial application was put on hold beyond he U.S. election in 2012.  The Obama decision appeared to have been fueled by months of protests, including Hollywood celebrities, by environmentalists.  The project, which had undergone two environmental assessments, was widely believed to have been delayed for political reasons.

Meanwhile, House Republicans had attempted get approval of the pipeline by including in other legislation, when President Obama rejected the application. 

A pipeline crossing the international border between Canada and the U.S. requires a presidential permit, however TransCanada earlier planned to go ahead with the southern portion from Cushing, OK to Port Arthur, TX, which did not require presidential approval.

The State Department released a statement on Friday, stating that it would consider the pipeline on its merits. 

"We will consider this new application on its merits," the State Department said.  "Consistent with the Executive Order, this involves consideration of many factors, including energy security, health, environmental, cultural, economic, and foreign policy concerns."

The pipeline will not only transport oil from the Alberta oilsands, but will also deliver oil from the Bakken Basen, which has oil from Mantioba, Saskatchewan and North Dakota.  The $7.6 Billion pipeline is a job creator, with high paying union jobs, provides energy security, with the volatility in the Middle East.

Trans Canada CEO,  Russ Girling, said in a statement on Friday that the pipeline would boost the U.S. economy, once completed. 

"The multi-billion dollar Keystone XL pipeline project will reduce the United States' dependence on foreign oil and support job growth by putting thousands of Americans to work, Keystone XL will transport U.S. crude oil from the very large Bakken supply basin in Montana and North Dakota, along with Canadian oil, to U.S. refineries," Girling said.

Trans Canada Corp hopes to start constructing the pipeline in early 2013, with the pipeline delivering oil by 2014 or 2015.

With the political atmosphere in the United States prior to the election, it is not expected that approval will be granted prior to the November election.  It is sure to be a hot button issue during the election campaign. 

Keystone XL Pipeline - Transcanada Submits Proposal for New Nebraska Route

After being intially rejected due to the sensitive sandhills area in Nebraska, TransCanada Corp has submitted a new proposal for the Keystone XL pipeline to Nebraska environmental officials.  The pipeline requires a presidential permit since it crosses international borders.  The pipeline would carry crude oil from the Alberta Oilsands to Port Arthur, Texas.

There is presently a bottleneck in Cushing, Oklahoma and Transcanada has decided to go ahead with the southern portion of the  line from Cushing to the Texas refineries.  No presidential permit is required for that portion of the line.  President Obama has said that he supports the southern line.

Details of the new route through Nebraska have not been made available, but apparently TransCanada submitted several alternate routes in addition to the preferred route.

The XL Keystone pipeline has become political football between Republicans and Democrats, especially in view of high pump prices.  Today the House of Representatives passed a transportation funding bill that included an authorization of the XL Keystone pipeline by a vote of  293 - 127.  Prior to the president rejection of the line beyond the 2012 election, environmentalist protested at the White House for weeks.  The President has been accused of making a political decision to appease his left base.  The President claims it was rejected because there was not enough time for a fair review before a looming deadline forced on him by congressional Republicans.

After today's house vote, the Obama Administration vowed to veto the pipeline project, arguing that  such a requirement would bypass long-standing practices on how to approve cross-border pipelines.

The State Department, which is responsible for approving the new route said it had not received the new proposal yet.

Don't expect this project to go anywhere until after the election.