TransCanada, Nebraska to work on new Keystone route

Mon Nov 14, 2011 6:28pm EST

Related Topics

(Reuters) - Nebraska and TransCanada Corp reached a deal on Monday on finding a new route for the stalled Keystone XL pipeline that would steer clear of environmentally sensitive lands in the state.

Under pressure from green groups, the U.S. State Department ordered the company last week to find a new route for the line in a decision that set back the $7 billion, Canada-to-Texas pipeline by more than a year.

The pipeline would deliver 700,000 barrels a day of crude from Alberta's oil sands to Texas refineries. But environmentalists strongly oppose the project, because of the route, concerns about spills and carbon emissions from production of oil sands crude.

In the deal with Nebraska, the state would pay for the new studies to find a route that would avoid the Sand Hills region and the Ogallala aquifer, which provides water for millions in the area.

Nebraska State legislators will vote on the deal on Tuesday, Mike Flood, the legislature's speaker said.

"TransCanada is willing to consider a route that sites the pipeline out of the Sand Hills," said Flood.

"This is our land. These are our people. We will pay for this. It's the right thing to do."

Terry Cunha, a spokesman for TransCanada declined to comment on the specifics of the deal, saying the company planned to issue a news release. However he said in an email that the agreement does not specify a new route for the controversial pipeline.

(Reporting by Michael Avok, writing by Scott Haggett; editing by Rob Wilson and David Gregorio)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

A tourist takes a plunge as she swims at Ngapali Beach, a popular tourist site, in the Thandwe township of the Rakhine state, October 6, 2013. Picture taken October 6, 2013. REUTERS/Soe Zeya Tun (MYANMAR - Tags: SOCIETY) - RTR3FOI0

Where do you want to go?

We look at when to take trips, budget considerations and the popularity of multigenerational family travel.   Video 

Photo

California's historic drought

With reservoirs at record lows, California is in the midst of the worst drought in decades.  Slideshow