Nebraska's governor OKs Keystone XL pipeline route through his state

Official says Keystone XL project now avoids region of sand dunes known as the Sandhills.
BY GRANT SCHULTE Published: January 23, 2013
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The pipeline's most vocal critics remain firmly opposed to the project.

“Gov. Heineman just performed one of the biggest flip-flops that we've seen in Nebraska political history,” said Jane Kleeb, executive director of the group Bold Nebraska.

Heineman has previously said he would oppose any pipeline route that endangered the aquifer. In his letter to federal officials, Heineman said any spills along the new route would be localized, and any cleanup responsibilities would fall to TransCanada. He also said the project would result in $418.1 million in economic benefits for the state, plus $16.5 million in state tax revenue from the pipeline construction materials.

Kleeb said those estimates came from a study commissioned by TransCanada that included job-creation numbers which have since been debunked.

Those favoring the Keystone XL project, including such organizations as Americans for Prosperity, the Consumer Energy Alliance and Nebraskans for Jobs and Energy Independence, have cited the nation's need for more oil and praised its potential economic impact.

Heineman said TransCanada has assured state environmental officials that the company would create an emergency response plan in case of a spill and would test water wells at landowners' request.

TransCanada executives have said the company will build a pipeline with rigorous safeguards and carry $200 million in third-party liability insurance to cover cleanup costs in Nebraska.

TransCanada CEO and President Russ Girling said Tuesday that the project had passed a strict review and would help national security.

Canada exports most of its oil to the U.S. and needs a way to move its growing oil sands production from northern Alberta, which has more than 170 billion barrels of proven reserves. Daily production of 1.5 million barrels from the oil sands is expected to increase to 3.7 million in 2025. Only Saudi Arabia and Venezuela have more reserves.

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In Oklahoma

Existing line ends in state

TransCanada's existing Keystone pipeline ends in Cushing.

The proposed Keystone XL line would bring additional crude oil from Canada and North Dakota to the storage hub there, while continuing on to refineries in the Houston area.

The 485-mile section between Cushing and the Gulf Coast is under construction, a move the Canadian company announced last spring after the Obama administration rejected its original permit application for the full transcontinental pipeline.

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