Keystone Application Resubmitted
Keystone Pipeline Project Tries Again, But Still May Face Hurdles in Nebraska
OMAHA (DTN) -- One day after the Trump administration signed an executive order clearing the way for the Keystone XL pipeline, TransCanada Thursday filed a new application for a presidential permit with the U.S. Department of State, according to a news release from the company.
Environmental groups, farmers and ranchers fought TransCanada for years to stop the building of a 2,000-mile pipeline that would carry 830,000 barrels of bitumen oil per day from Alberta, Canada, to the Gulf of Mexico.
Their concern was the pipeline would pass through sensitive habitats across the Nebraska Sandhills, and they feared any pipeline breaches could harm the environment. Also, TransCanada planned to use eminent domain with about 2% of landowners to acquire the land needed to build the pipeline, upsetting those who were potentially affected.
"This privately funded infrastructure project will help meet America's growing energy needs as well as create tens of thousands of well-paying jobs and generate substantial economic benefit throughout the U.S. and Canada," said Russ Girling, TransCanada's president and chief executive officer.
"KXL will strengthen the United States' energy security and remains in the national interest. The project is an important new piece of modern U.S. infrastructure that secures access to an abundant energy resource produced by a neighbor that shares a commitment to a clean and healthy environment. Numerous studies have shown that pipelines are a safer and more environmentally sound way to transport oil to market than trains and KXL raises the bar on both fronts."
TransCanada points to "enhanced standards and the utilization of the most advanced technology" as a reason why the pipeline would "help ensure KXL will be built and operated to uphold our fundamental commitment to safety and the communities we serve."
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
The U.S. Department of State estimates the pipeline would support tens of thousands of direct and indirect jobs during construction and contribute approximately $3.4 billion to U.S. gross domestic product.
The National Association of Manufacturers said in a statement Thursday it was pleased TransCanada wasted little time in filing a new application.
"We are one step closer to creating tens of thousands of American jobs and improving our energy security in this country," NAM President and Chief Executive Officer Jay Timmons said in a statement.
"It's a great day for manufacturers and all Americans. President Donald Trump recognizes that energy infrastructure means jobs and paychecks, and now we can finally get the Keystone XL pipeline built. Thanks to the rigorous analysis already completed during the Obama administration, we know that construction can be done in a safe and environmentally sensitive way. Manufacturers and business leaders join with many labor groups and working Americans in celebrating this development today."
American Petroleum Institute President and Chief Executive Officer Jack Gerard said the application is "an important step forward to building a 21st century energy infrastructure system across our nation.
"We applaud President Trump's commitment to promoting our nation's energy infrastructure and creating jobs and look forward to working with this administration on policies to continue our nation's energy renaissance that's providing benefits for American consumers and workers, and the environment."
On its website Tuesday, BOLD Nebraska, an environmental group that has fought the pipeline for years, said the project still faces hurdles in Nebraska.
Some of those hurdles, however, could be made less significant with Republican Nebraska Gov. Pete Ricketts' support for the project.
BOLD Nebraska says TransCanada has to apply for a permit from the Nebraska Public Service Commission, and as a result of state law is unable to apply for using eminent domain until September 2017.
Although the U.S. Department of State concluded in a study the pipeline would be safe for the environment, the Obama administration rejected a previous application for a presidential permit. That rejection led TransCanada to file a complaint using the North American Free Trade Agreement, or NAFTA.
Todd Neeley can be reached at todd.neeley@dtn.com
Follow him on Twitter @toddneeleyDTN
(ES/AG)
Copyright 2017 DTN/The Progressive Farmer. All rights reserved.