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The Telegram
  • Business update: US delays review of contentious Keystone pipeline

  • The Obama administration is extending indefinitely its review of the Keystone XL pipeline, the State Department said Friday, likely punting the decision over the controversial oil pipeline past the midterm elections.
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  • The Associated Press
    WASHINGTON — The Obama administration is extending indefinitely its review of the Keystone XL pipeline, the State Department said Friday, likely punting the decision over the controversial oil pipeline past the midterm elections.
    In a surprise announcement as Washington was winding down for Easter, the State Department said federal agencies will have more time to weigh in on the politically fraught decision — but declined to say how much longer. Officials said the decision will have to wait for the dust to settle in Nebraska, where a judge in February overturned a state law that allowed the pipeline's path through the state.
    Nebraska's Supreme Court isn't expected to hear an appeal to that ruling until September or October, and there could be more legal maneuvering after the high court rules. So President Barack Obama will almost surely have until after the November election to make the final call about whether Keystone XL should be built.
    Approving the pipeline before the election would rankle Obama's allies and donors in the environmental community, but nixing it could be politically damaging to vulnerable Democrats running this year in conservative-leaning areas.
    "This decision is irresponsible, unnecessary and unacceptable," said Democratic Sen. Mary Landrieu, who faces a difficult re-election in oil-rich Louisiana. Landrieu said Obama was signaling that a small minority can tie up the process in the courts, sacrificing 42,000 jobs and billions in economic activity.
    In an ironic show of bipartisanship, Republicans joined Landrieu and other Democrats like Sen. Mark Begich of Alaska in immediately condemning the announcement — the latest in a string of delays in a review process that has dragged on for more than five years.
    Senate Minority Leader Mitch McConnell, R-Ky., accused Obama of kowtowing to "radical activists" from the environmental community, while House Speaker John Boehner, R-Ohio, called the decision "shameful" and said there were no credible reasons for further delay.
    "This job-creating project has cleared every environmental hurdle and overwhelmingly passed the test of public opinion, yet it's been blocked for more than 2,000 days," Boehner said in a statement.
    But environmental groups fighting the pipeline hailed the delay, arguing that it shows the State Department is taking the arguments against the pipeline seriously.
    "This is definitely great news," said Tiernan Sittenfeld, senior vice president for the League of Conservation Voters. "We are very confident as they continue to examine the issues with the lack of legal route in Nebraska and the terrible climate impacts, at the end of the day the pipeline will be rejected."
    Keystone XL would carry oil from western Canada's tar sands to refineries on the Texas Gulf Coast. The project requires State Department approval because it crosses an international border. The State Department vowed to move forward with other aspects of its review even while the situation in Nebraska remains in limbo.
    Page 2 of 2 - "The agency consultation process is not starting over," the State Department said in a statement.
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