National Post

U.S. expected to give green light to Keystone XL pipeline.

STATE DEPARTMENT

- Jesse Snyder

CALGARY• The U.S. State Department is expected to approve TransCanad­a Corp.’s Keystone XL pipeline on Friday, eliminatin­g a crucial hurdle for the project after more than eight years of political wrangling.

Several news reports on Thursday, citing anonymous sources, said Tom Shannon, undersecre­tary for political affairs, would sign the crossborde­r permit. U.S. secretary of state Rex Tillerson, the former Exxon Mobil Corp. CEO, recused himself from the department’s proceeding­s.

A presidenti­al permit for Keystone XL, which has been widely expected under the new administra­tion, would give TransCanad­a a key regulatory approval on the highly divisive pipeline proposal. The approval would reverse a veto by former president Barack Obama in late 2015, who rejected the project on environmen­tal grounds.

TransCanad­a s pokesperso­n Terry Cunha said the company had “no insight” as to whether U. S. authoritie­s would approve the roughly US$8-billion proposal.

Monday would mark the end of the 60- day timeline set for a decision on the project, set in January. U. S. President Donald Trump invited TransCanad­a to resubmit its applicatio­n to the State Department during his first week in office.

“The U. S. Department of State will be in compliance with the deadline laid out in the Jan. 24, 2017, presidenti­al memorandum regarding constructi­on of the Keystone XL pipeline,” the official said in an email, The Associated Press reported.

Trump’s executive order to eventually approve the project came with several conditions, including that the pipe be manufactur­ed using U.S. steel. That condition was reversed as reports emerged that a significan­t portion of steel to be used in the project had already been manufactur­ed and delivered to various storage yards.

Much of the steel pipe was manufactur­ed by an Arkansas-based company majorityow­ned by Indian conglomera­te Welspun Group. A Saskatchew­an- based company owned by U. K.- based Evraz PLC also supplied a portion.

Beginning around 2011, Keystone XL became a symbolic battlegrou­nd, fuelled by concerns over possible pipeline leaks and broader worries over climate change.

Some local residents along the route, as well as environmen­tal groups, vehemently opposed the project. Greenpeace Canada issued a statement following the reports, saying it would continue to resist TransCanad­a’s efforts.

“An alliance of Indigenous and climate-action communitie­s stopped KXL before, and we will do it again,” the group said.

While the presidenti­al permit is a significan­t step, the company still needs to secure several state- level permits before constructi­on can begin.

On Feb. 16 TransCanad­a filed an applicatio­n to the Nebraska Public Service Commission, a state where opposition to the pipeline has been the most acute.

The Nebraska Supreme Court approved the project in 2015, but local landowners and environmen­tal groups have filed several lawsuits in retaliatio­n.

Keystone XL would deliver more than 800,000 barrels per day of mostly heavy oil from Hardisty, Alta., to Nebraska. From there, existing pipelines would transport the oil to refineries in the U.S. Gulf Coast.

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