TransCanada asks U.S. to suspend Keystone pipeline application
The company sponsoring the controversial Keystone XL oil pipeline Monday asked the State Department to suspend the review of its federal permit application, a request that could push a final decision on the pipeline beyond President Obama’s tenure in office.
The administration is preparing to reject a cross-border permit for the project aimed at transporting hundreds of thousands of barrels of heavy crude oil from Canada’s oil sands region to Gulf Coast refineries, according to several individuals who have been briefed but spoke on the condition of anonymity because the White House’s decision has not been announced. In asking for a delay, TransCanada could hand the issue, which has come to symbolize the broader battle over how the United States should address climate change, to the next U.S. president.
The Nebraska Public Service Commission is reviewing the pipeline’s route in the state after residents there challenged the state’s approval process for the project, and TransCanada argued in a letter to Secretary of State John F. Kerry that it would be “appropriate” to delay any federal decision until the Nebraska route is settled. The company first applied for a presidential permit seven years ago.
TransCanada’s president and chief executive, Russ Girling, noted Monday that when residents challenged the approval process for the pipeline in Nebraska’s courts, “the State Department found it appropriate to suspend its review until that dispute was resolved. We feel under the current circumstances a similar suspension would be appropriate.” The Nebraska review, the company said, could take between seven and 12 months.
A State Department official said officials were reviewing the letter.
Earlier Monday, White House press secretary Josh Earnest said that “our expectation at this point . . . is that the president will make a decision before the end of his administration on the Keystone pipeline, but when exactly that will be I don’t know at this point.”
At issue is the northern leg of the pipeline, which would stretch 1,179 miles between Hardisty, Alberta, and Steele City, Neb. The administration has approved the project’s southern leg.
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