WASHINGTON--The Obama administration is extending its review of
the Keystone XL pipeline, citing ongoing litigation in Nebraska
over the project's route through the state, according to people
familiar with the matter.
The State Department is allowing more time for government
agencies to weigh in on the project--a review process that was
expected to end in early May, State Department officials told
congressional staff on Friday.
It is unclear how much more time the State Department will allow
for input, but it is likely to push a final decision on the
pipeline--which has been under review by the Obama administration
for more than five years--until after November's midterm
elections.
TransCanada Corp. wants to send oil through a pipeline from
Canadian oil sands to Gulf Coast refineries in the U.S. The
pipeline project has stirred opposition from environmental groups,
which warn it could lead to oil spills and exacerbate global
warming. Business interests contend it will create jobs and offer a
safer alternative than transporting the oil by rail.
A Nebraska court in February overturned a state law that allowed
the route to bypass the state's Ogallala aquifer, a concern
environmentalists raised a few years ago in the pipeline's
review.
Earlier this month 11 Senate Democrats, including five up for
reelection, sent a letter to President Barack Obama urging him to
make a final decision on the pipeline by May 31. This delay nearly
guarantees that won't happen.
Write to Amy Harder at amy.harder@wsj.com
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