Final Environmental Impact Statement Re-Affirms Limited Environmental Impact from Keystone XL Pipeline

Fri Aug 26, 2011 1:17pm EDT

* Reuters is not responsible for the content in this press release.

TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) is pleased
that the Final Environmental Impact Statement (FEIS) for the Keystone XL
crude oil pipeline has reaffirmed the environmental integrity of the

    This is the third Environmental Impact Statement that the U.S. Department
of State has issued on Keystone XL since the review process began in
2008. "The Final Environmental Impact Statement reaffirms the findings of
the two previous environmental impact statements that the Keystone XL
pipeline will have no significant impact on the environment," said Russ
Girling, TransCanada's president and chief executive officer. "Today's
Final Environmental Impact Statement continues to demonstrate the focus
on safety and the environment that has gone into the development of this
critical North American pipeline.

    The environmental review process for Keystone XL (culminating in the
FEIS) has been the most exhaustive and detailed review for a cross-border
pipeline that has ever been undertaken by of the Department of State. "We
know how hard the Department of State has worked to make this review
process as transparent and thorough as possible, including consulting
with more than 10 other federal agencies," Girling added. "We appreciate
their continued commitment to completing their review by the end of this

    The nine-volume FEIS is more than 1,000 pages in length. Keystone XL has
gone through an exhaustive 36-month review, including numerous public
meetings, multiple public comment periods, submittal and review of
thousands of pages of information and responses to hundreds of detailed

    In TransCanada's preliminary review of the FEIS' findings, the company
notes that:

--  The analysis of potential impacts associated with the project suggests
    that there would be no significant impacts to most resources along the
    proposed project corridor. 

--  Incorporating the 57 Project-specific Special Conditions developed by
    PHMSA would result in a Project that would have a degree of safety
    greater than any typically constructed domestic oil pipeline under
    current regulation. 

--  The proposed route is the shortest and would disturb the least amount of
    land and water bodies resulting in reduced environmental impacts.
    Alternative routes that were considered to avoid the Ogallala Aquifer
    and the Nebraska Sandhills are not preferable environmentally or

--  Oil sands derived crude oil does not have unique characteristics that
    would suggest the potential for higher corrosion rates during pipeline

    Now that the FEIS has been issued, a 90-day comment period begins to
determine if Keystone XL is in the national interest of the United
States. Girling believes it is.

    "Support for Keystone XL continues to grow because the public, opinion
leaders and elected officials can see the clear benefits that this
pipeline will deliver to Americans," added Girling. "The fundamental
issue is energy security. Through the Keystone system, the U.S. can
secure access to a stable and reliable supply of oil from Canada where we
protect human rights and the environment, or it can import more
higher-priced oil from nations who do not share America's interests or

    In addition to energy security, Keystone XL will create massive and much
needed economic benefits to the states it crosses and the United States
as a whole. The project will be financed entirely through the private
sector without one penny of government subsidy. During operations,
TransCanada will contribute over $5 billion in property taxes to the
communities Keystone XL will pass through. In total, the Keystone XL
project is expected to create $20 billion of economic stimulus to the
U.S. during construction.

    The benefits of Keystone XL are not limited however to the states where
the pipeline will be located. From pipe manufactured in Arkansas to pump
motors made in Ohio, workers in almost every state in the United Sates
benefit from the project and the ongoing development of Canada's oil
sands. Within days of receiving regulatory approval for Keystone XL,
TransCanada will begin to put 20,000 Americans to work to construct the
project. In addition to these direct jobs, independent studies calculate
that the construction of Keystone XL will create an additional 118,000
indirect and spin-off jobs for local businesses.

    If construction of the pipeline begins early in 2012, Keystone XL is
expected be operational in 2013.

    With more than 60 years experience, TransCanada is a leader in the
responsible development and reliable operation of North American energy
infrastructure including natural gas and oil pipelines, power generation
and gas storage facilities. TransCanada's network of wholly owned natural
gas pipelines extends more than 57,000 kilometres (35,500 miles), tapping
into virtually all major gas supply basins in North America. TransCanada
is one of the continent's largest providers of gas storage and related
services with approximately 380 billion cubic feet of storage capacity. A
growing independent power producer, TransCanada owns, or has interests
in, over 10,800 megawatts of power generation in Canada and the United
States. TransCanada is developing one of North America's largest oil
delivery systems. TransCanada's common shares trade on the Toronto and
New York stock exchanges under the symbol TRP. For more information

    Forward-Looking Information

    This news release may contain certain information that is forward looking
and is subject to important risks and uncertainties. The words
"anticipate," "expect," "believe," "may," "should," "estimate,"
"project," "outlook," "forecast" or other similar words are used to
identify such forward-looking information. Forward-looking statements in
this document are intended to provide TransCanada securityholders and
potential investors with information regarding TransCanada and its
subsidiaries, including management's assessment of TransCanada's and its
subsidiaries' future financial and operations plans and outlook.
Forward-looking statements in this document may include, among others,
statements regarding the anticipated business prospects, projects and
financial performance of TransCanada and its subsidiaries, expectations
or projections about the future, and strategies and goals for growth and
expansion. All forward-looking statements reflect TransCanada's beliefs
and assumptions based on information available at the time the statements
were made. Actual results or events may differ from those predicted in
these forward-looking statements. Factors that could cause actual results
or events to differ materially from current expectations include, among
others, the ability of TransCanada to successfully implement its
strategic initiatives and whether such strategic initiatives will yield
the expected benefits, the operating performance of TransCanada's
pipeline and energy assets, the availability and price of energy
commodities, capacity payments, regulatory processes and decisions,
changes in environmental and other laws and regulations, competitive
factors in the pipeline and energy sectors, construction and completion
of capital projects, labour, equipment and material costs, access to
capital markets, interest and currency exchange rates, technological
developments and economic conditions in North America. By its nature,
forward looking information is subject to various risks and
uncertainties, which could cause TransCanada's actual results and
experience to differ materially from the anticipated results or
expectations expressed. Additional information on these and other factors
is available in the reports filed by TransCanada with Canadian securities
regulators and with the U.S. Securities and Exchange Commission (SEC).
Readers are cautioned to not place undue reliance on this forward looking
information, which is given as of the date it is expressed in this news
release or otherwise, and to not use future-oriented information or
financial outlooks for anything other than their intended purpose.
TransCanada undertakes no obligation to update publicly or revise any
forward looking information, whether as a result of new information,
future events or otherwise, except as required by law.

Media Enquiries:
Terry Cunha/Shawn Howard
403.920.7859 or 800.608.7859
Twitter @TransCanadaPR

Investor & Analyst Enquiries:
David Moneta/Terry Hook/Lee Evans
403.920.7911 or 800.361.6522

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