Monday, January 28, 2013

Keystone XL pipeline: Nebraska’s approval puts Obama in a bind

On Tuesday, Nebraska Gov. Dave Heineman (R), who previously hesitated at approving the project, sent Obama and Secretary of State Hillary Rodham Clinton a letter saying he is now satisfied with the pipeline’s new routing. The potential environmental risks, he says, are lessened. TransCanada is set to carry $200 million in third-party liability insurance to cover any cleanup costs, Governor Heineman says in the letter. He also writes that the proposed reroute “avoids many areas of fragile soils in Northern Nebraska” and “avoids a shallow groundwater area ... where the aquifer is thin, wells are shallow, and bedrock is close to the surface.” The pipeline construction would generate $418 million in economic benefits to the state and about $13 million in property-tax revenues in its first year of operation, Heineman adds. The backing of Nebraska’s governor is seen as putting Obama in a tougher bind over a decision expected to receive heavy criticism either way. Environmental opponents view the pipeline as dangerous because it would carry oil extracted from Canada’s region of oil sands, which produce up to 30 percent more greenhouse gases than conventional crude oil. There are also worries about potential spills in the nation’s most sensitive agricultural terrain...more

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