US orders alternate routes for proposed pipeline

WASHINGTON?? The Obama administration on Thursday ordered the developer of a proposed Canada-to-Texas oil pipeline to come up with alternative routes through part of Nebraska ? a decision welcomed by liberal voters and environmentalists but criticized by Republicans and oil industry trade unions, not to mention Canada.

Drafting a changed route for TransCanada Corp.'s $7 billion Keystone XL pipeline will trigger a supplemental environmental impact statement and likely delay the final decision on whether to approve or reject the proposal until after the 2012 elections.

"It is reasonable to expect that this process ... could be completed as early as the first quarter of 2013," the State Department said in announcing the move. The State Department has authority over the project because it crosses a U.S. border.

Canada immediately complained about the decision.

"We are disappointed," said Andrew MacDougall, a spokesman for Prime Minister Stephen Harper. "We remain hopeful the project will be decided on its merits and eventually approved."

President Barack Obama said the 1,700-mile pipeline could affect the health and safety of the American people as well as the environment.

"We should take the time to ensure that all questions are properly addressed and all the potential impacts are properly understood," Obama said in a statement.

The portion of the route that might have to be changed to avoid environmentally sensitive areas of Nebraska's Sandhills region ranged from about 75 to 250 miles, officials estimated.

"It's a huge victory, and it would probably be the biggest environmental gift that President Barack Obama has given us," said Tony Iallonardo, a spokesman at the National Wildlife Federation.

"The U.S. administration is feeling the heat and wants to put off a decision until after the election," added John Bennett of the Sierra Club Canada. "It's the first time the environment has trumped oil in U.S. politics."

However, the delay also opens up a line of attack from Republicans, and even labor groups, who argue that it will slow job growth.

1. Only on msnbc.com

   1. NBC News: Paterno contacts criminal defense lawyer
   2. Helping women soar in tough economy
   3. Are there bogus charges on your phone bill?
   4. Good buddies: Truckers transport rescued animals to safety
   5. A flattened hotel, a heart-stopping flashback
   6. Older workers create their own jobs
   7. Investigating Britain's 'sex gangs'

House Speaker John Boehner, R-Ohio, said Obama had sacrificed thousands of jobs "solely to appease his liberal base. It's a failure of leadership."

Story: Panel: Drilling impacts could be 'excessive'

The American Petroleum Institute said the decision put election-year politics above creation of thousands of jobs. "Whether it will help the president retain his job is unclear, but it will cost thousands of shovel-ready opportunities for American workers," said API President Jack Gerard.

TransCanada CEO Russ Girling warned in a statement Thursday that "if Keystone XL dies, Americans will still wake up the next morning and continue to import 10 million barrels of oil from repressive nations, without the benefit of thousands of jobs and long-term energy security."

Mark Routt, an analyst at the KBC consultancy in Houston, said the delay could scuttle the proposal. "To delay the decision on Keystone XL is in effect a decision itself," he said. "I think in all likelihood that a delay would kill the project."

A U.S. official said Wednesday that rerouting the proposed pipeline was a key issue that came up during public meetings in the six states through which the pipeline would run.

Nebraska, in particular, has voiced concern about potential damage to its Sandhills region. The proposed pipeline would also run over part of the massive underground Ogallala aquifer, which supplies water to eight states.

Story: 'Fracking' chemical found in town's aquifer

Calgary-based TransCanada is seeking to build the pipeline to carry oil derived from tar sands in Alberta, Canada, to refineries on the Texas Gulf Coast.

Some liberal donors have threatened to cut off funds to Obama's re-election campaign if he approves the pipeline, which has become a major focal point of environmental groups who say it would bring "dirty oil" that requires huge amounts of energy to extract. They also worry that the pipeline could cause an ecological disaster in case of a spill.

Thousands of protesters gathered across from the White House on Sunday to oppose the pipeline. The crowd linked hands to surround the White House.

The Keystone XL pipeline would double the capacity of an existing pipeline operated by TransCanada, and supporters say it could significantly reduce U.S. dependence on Middle Eastern oil while providing thousands of jobs.

TransCanada has said any delay in the approval process could cost it millions of dollars and keep thousands of people of from getting jobs.

State Department spokesman Mark Toner said deliberation over whether to reroute the pipeline is part of a broad review of issues that include environmental concerns, energy security, jobs, economic impacts and foreign policy.

"So all of these are blended together. It's not just one issue. It's a range of issues that we're looking at," Toner said.

Story: Questions, answers about proposed pipeline

Meanwhile, the department's inspector general has launched a review of the Obama administration's handling of the pipeline request. The review is being conducted in response to complaints from Democratic lawmakers about possible conflicts of interest in the review process.

Deputy Inspector General Harold Geisel said the special review will center on whether the State Department "and all other parties involved" in the project followed federal laws and regulations related to the pipeline.

The executive in charge of the proposed pipeline told Nebraska lawmakers on Wednesday that attempts to block the project with legislation are "fundamentally unfair," given his company's cooperation with state and federal authorities.

Reuters and The Associated Press contributed to this story.

Source: http://www.msnbc.msn.com/id/45242052/ns/us_news-environment/

j. cole j. cole joe namath austin weather sacramento kings lisa vanderpump pef