U.S. Considers New Route for Keystone XL

Environmental concerns over the threat the pipeline poses to Nebraska could lead to plans being reset.

The U.S. State Department is reviewing whether or not to reroute TransCanada's Keystone XL pipeline so that it minimizes its environmental impact in Nebraska. The current proposed route for the $7-billion pipeline would see crude oil flow from the oil sands in Alberta down through the American heartland to the coast of the Gulf of Mexico. Part of that route would see the pipeline be built atop an aquifer in Nebraska, a proposal that has led to fierce opposition in that state. The state has been lobbying the federal government to have it rerouted. The State Department has said they would make a decision on the pipeline by the end of the year, but the possible route changes could see that decision delayed indefinitely, as a new environmental impact study would have to be undertaken before ground can be broken.