With controversy over the route that TransCanada’s Keystone XL pipeline will take through Nebraska, and fears over the potential threat to the state’s ecologically precious Sand Hills, the U.S. State Department has decided to postpone a presidential permit to the company for construction in the state.
President Barack Obama supports the measure to postpone the permit, saying in a statement, that there is a “need to seek additional information about the Keystone XL Pipeline proposal because this permit could affect the health and safety of the American people as well as the environment.”
The State Department said that it needs to take more time to review potential alternative routes through Nebraska.
The Sand Hills have a unique combination of characteristics, which include a high concentration of wetlands and an extensive area of very shallow groundwater.
The Sand Hills sit atop the massive Ogallala Aquifer, creating both temporary and permanent shallow lakes in low-lying valleys between the prevalent dunes. The eastern and central sections of the region are drained by the tributaries of the Loup River and the Niobrara River, while the western section is largely composed of small interior drainage basins.
The World Wide Fund for Nature designated the Sand Hills as an eco-region, distinct from other grasslands of the Great Plains. According to their assessment, as much as 85% of the Sand Hills eco-region is intact natural habitat, the highest level in the Great Plains. This is chiefly due to the lack of crop production. Most of the Sand Hills land has never been plowed.
“We heard a lot of comments and a lot of concerns about the route through the Nebraska Sand Hills. One of the messages that we heard from the state of Nebraska, including the governor was that there was support for the pipeline, but not in the particular route that was in place through the state,” said Dr. Kerri-Ann Jones, assistant secretary of state for oceans and international environmental and scientific affairs at the State Department, during a conference call.
“So, we decided to really focus on looking at alternative routes that would minimize or avoid the Sand Hills. This area in Nebraska is a resource to the people. We heard loud and clear that it’s a unique area for the state. The governor and the legislators are very concerned to the point where they have gone into a special session to see what can they do to try to put some kind of regulatory framework in place, because they don’t have them,” added Dr. Jones.
State law primarily governs routes for interstate petroleum pipelines, however Nebraska currently has no such law or regulatory framework authorizing state or local authorities to determine where the pipeline goes.
Nebraska Governor Dave Heineman said during a recent media event, “We support the pipeline. However, we’re opposed to a route through the environmentally sensitive Sand Hills. While there have been a number of factor that have brought us to this point, the catalyst for this extraordinary series of events was calling the special session.
“I want to thank the U.S. Department of State for their cooperation and willingness to work with us. The meetings that the legislature and I have had with the State Department were useful and productive. I (also) want to acknowledge TransCanada for agreeing to reroute the pipeline. It was important that TransCanada listened to the voices of Nebraskans.”
Alex Pourbaix, TransCanada’s president of energy and oil pipelines, said in a statement, “I can confirm the route will be changed and Nebraskans will play an important role in determining the final route.”
The State Department said that based on its own experience with pipeline reviews and the time typically required for environmental reviews, a decision on the pipeline permit is expected no earlier than the first quarter of 2013.
After obtaining additional information, the State Department said that it will determine - in consultation with eight other agencies - whether the proposed pipeline is in the national interest, considering all the relevant issues together.
Among the relevant issues that would be considered are environmental concerns, including climate change, energy security, economic impacts, and foreign policy.
The proposed Keystone XL project consists of a 1,700-mile crude oil pipeline and related facilities that would primarily be used to transport the ‘Western Canadian Sedimentary Basin,’ more commonly known as tar sand crude oil from a supply hub in Alberta, Canada to delivery points in Oklahoma and Texas.
The proposed project could transport up to 830,000 barrels per day and is estimated to cost $7 billion. If permitted, it could begin operation in late 2013, with the actual date dependent on the necessary permits, approvals, and authorizations.
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