News•November 4, 2015

Obama Likely to Make Keystone Decision By End of Term

The Obama administration intends to make a decision on TransCanada’s controversial Keystone XL pipeline, even though the company has asked the State Department to pause a review of its permit application.

White House spokesman Josh Earnest said Tuesday that Obama plans to determine the fate of the pipeline permit by the end of his term.

If built, the Keystone XL Pipeline will link the tar sands of Alberta with oil refineries in Texas.
Credit: Luc Forsyth/flickr

“The president has said that before, yes — that he would like to have this determination be completed before he leaves office,” Earnest said. He added that there is no reason to stop evaluating the merits of the pipeline proposal over the next year during the election season.

“In fact, there are a lot of things the president wants to do, and there are a lot of things that could be derailed by politics over the course of the next year, but that’s not an excuse to do nothing,” Earnest said, referring to the Keystone XL review process. “It’s, frankly, a reason to try to focus on the merits and to rise above politics, and focus on the best interest of the country.”

The $8 billion Keystone XL pipeline is slated to stretch 1,179 miles from east-central Alberta, Canada, to the Texas Gulf Coast. It would transport 830,000 barrels of crude oil per day from the Canadian tar sands to refineries near Houston. Environmental advocates have rallied against the pipeline and urged the Obama administration to reject it, saying emissions from the conduit could worsen climate change.

TransCanada asked the State Department to suspend its evaluation of the Keystone XL permit to allow the Nebraska Public Service Commission to review the pipeline’s proposed route through the state. The company had proposed to seize property along the pipeline’s route using eminent domain, but landowners sued and TransCanada opted instead for the state review.

The State Department said it would continue to review the pipeline permit application, at least for now.

“TransCanada has not withdrawn their permit application,” State Department spokeswoman Elizabeth Trudeau said during a press briefing Tuesday. “We have received their letter to Secretary Kerry. We’re in the process of sending a response. Our review process is ongoing. So at this stage, we’ve received the letter. We will issue a response, but we’re going to continue our review process.”

Proposed in 2008, parts of the Keystone XL between central Nebraska to Texas have already been built, but the 875-mile section between the Canadian border and Steele City, Neb., awaits final approval.