WASHINGTON — The Obama administration said Thursday that it is delaying approval of a massive oil pipeline until it can study new potential routes that avoid environmentally sensitive areas of Nebraska, an action that likely puts off a decision until after the 2012 election.
The announcement by the State Department means Calgary-based Trans Canada Corp. will have to figure out a way to move the proposed Keystone XL pipeline around the Nebraska Sand hills region and Ogallala aquifer, which supplies water to eight states.
The State Department said it will require an environmental review of the new section, which is expected to take at least a year.
President Barack Obama said the 1,700-mile pipeline is likely to affect the health and safety of the American people as well as the environment.
“We should take the time to ensure that all questions are properly addressed and all the potential impacts are properly understood,” Obama said in a statement.
The decision on whether to approve the $7 billion pipeline “should be guided by an open, transparent process that is informed by the best available science and the voices of the American people,” Obama said.
TransCanada Corp. wants to build a 36-inch pipeline to carry oil derived from tar sands in Alberta, Canada, to refineries on the Texas Gulf Coast. The pipeline would travel through Montana, South Dakota, Nebraska, Kansas and Oklahoma.
