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President turns thumbs down on Keystone XL
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A Lee Enterprises, Incorporated newspaper. Majority shareholder: David Hoffmann, Hoffmann Media Group.
President turns thumbs down on Keystone XL
- By ART HOVEY / Lincoln Journal Star
- Jan 18, 2012
- Jan 18, 2012 Updated Mar 6, 2012
- 0
Demonstrators march with a replica of a pipeline during a protest against the Keystone XL Pipeline outside the White House on Sunday, Nov. 6, 2011, in Washington.
AP file photo
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President Obama has denied TransCanada's application for a permit to build the Keystone XL Pipeline, acting on a Wednesday recommendation from the U.S. State Department.
His decision came well ahead of a Feb. 21 deadline for action that he agreed to in December. But the message from his office and from the State Department's Kerri-Ann Jones in a conference call with reporters was that the 60-day timetable for considering the project was too tight.
That deadline was set when Congress extended a payroll tax deduction.
"We have been analyzing the legislation," said Assistant Secretary Jones, "but at the time it was proposed, we did mention and we did confirm that we thought that any imposition of a deadline would compromise the project."
It was unclear whether Wednesday's decision was a setback for the project or a defeat. Getting approval of a pipeline project requires a number of steps in a specific order.
The president's decision means that the $7 billion, 1,700-mile pipeline will not be built as a direct outcome of an environmental impact statement that goes back more than three years and cost TransCanada tens of millions of dollars.
Although pressed repeatedly by reporters, Jones refused to get into how much of the review process might be salvaged in relation to the new application that pipeline builder TransCanada said later Wednesday it would file.
The Calgary-based company said its management still saw possibilities for operation in 2014 between oil deposits in Alberta and refineries along the U.S. Gulf Coast.
Jones sidestepped related questions during the conference call. "I can't speak to a defined timeline or anything else," she said, "because there is no application and that's much too speculative."
But Jones did say the department could not move forward without a plan in place for going around the Nebraska Sandhills. "This is specifically about alternative routes through Nebraska," she said.
She did not address how Wednesday's decision affects continuing discussions between TransCanada and the Nebraska Department of Environmental Quality on a different route.
Confronted with strong resistance from landowners worried about groundwater contamination and erosion along the proposed route, and with a special session of the Nebraska Legislature, TransCanada voluntarily agreed to move the pipeline away from the Sandhills and from the most vulnerable parts of the Ogallala Aquifer.
Bold Nebraska leader and pipeline critic Jane Kleeb and Nebraska Sen. Mike Johanns, who had agreed earlier on the need to move the pipeline, reacted very differently to the news the entire project is off the table.
Kleeb sounded ecstatic that opposition from farmers and ranchers "who marched shoulder to shoulder" with her and other public interest groups had prevailed. "I think that's what stopped it," she said.
Johanns, meanwhile, said the president's decision was "all about environmentalists being up in arms, unions being up in arms. And he doesn't want to deal with this before election day."
He noted that the State Department had identified the Sandhills route as the preferred route in its final environmental impact statement last year.
"All of a sudden, when Nebraska agreed with TransCanada that it would not go through the Sandhills, that it would not go through this sensitive area, all of a sudden it was not the preferred route."
There was no word from the Nebraska Department of Environmental Quality on how the Obama decision might affect its mission.
In a prepared statement, Gov. Dave Heineman blasted the president for denying "a jobs-creating pipeline, leaving thousands of Americans unnecessarily unemployed."
Heineman said Obama could have issued conditional approval for the project while the state and TransCanada worked toward a route agreement around the Sandhills.
"The President's decision is disruptive," Heineman said, "and we are going to review in detail what this means for Nebraska."
Jones, who had met with Heineman previously to try to work out a state-federal understanding, saw no future in a conditional approval.
"We don't really think that's an approach that deals with the national interest in an appropriate way," she said.
But TransCanada President Russ Girling said the company would continue to work with DEQ on a route alternative.
"Plans are already under way on a number of fronts to largely maintain the construction schedule of the project," he said.
Jones did note any effort by TransCanada to complete the portion of Keystone XL between the Gulf Coast and Cushing, Okla., already connected to Canadian oil deposits by the first Keystone pipeline TransCanada built through Nebraska, would not be subject to scrutiny from her department.
That's because it doesn't cross an international border. That would be "purely a domestic pipeline," and it wouldn't require a presidential permit, she said.
U.S. Sen. Ben Nelson also offered a prepared statement on Wednesday's developments, as did all three Republicans in the state's congressional delegation.
"This is what I and others predicted would happen if Congress intervened for political purposes and tried to rush this project by setting an arbitrary deadline," Democrat Nelson said.
Congressman Lee Terry, who had tried to use his position on the Energy and Commerce Committee to press for pipeline construction, said it was the White House that was acting on the basis of politics.
"Americans want jobs, and Americans want fuel," Terry said. "The president has turned a deaf ear to these needs, choosing to appease only a segment of his base."
Third District Rep. Adrian Smith saw "no reason to start over on a process which has created uncertainty and controversy for so long."
Jeff Fortenberry, Smith and Terry's 1st District counterpart, didn't point fingers as directly.
"We need a strategic energy partnership with Canada that respects Nebraska's natural resources," Fortenberry said. "This fundamentally should be about sound energy and environmental policy and not a proxy political fight."
Pipeline critic Kleeb said the easements that Nebraska property owners signed with TransCanada represents one of many loose ends that will dangle beyond Wednesday.
"A lot of these contracts essentially say they can sell the easement to another pipeline company," she said.
Reach Art Hovey at 402-473-7223 or at ahovey@journalstar.com
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Demonstrators march with a replica of a pipeline during a protest against the Keystone XL Pipeline outside the White House on Sunday, Nov. 6, 2011, in Washington.
- AP file photo
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