State Department mulls new route for Canada oil pipeline - USA Today

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WASHINGTON – The State Department is considering a plan that would reroute the proposed Keystone XL oil pipeline from Canada away from environmentally sensitive areas of Nebraska, an action that could delay a final decision on the politically charged project until after the 2012 election.

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Calgary-based TransCanada (TRP) wants to build a $7 billion pipeline, doubling the capacity of an existing pipleine, to carry tar sands-derived oil derived from Alberta, Canada, to refineries on the Texas Gulf Coast . A portion of the 1,700-mile pipeline would pass through Nebraska's Sandhills region and the massive Ogallala aquifer, which supplies water to eight states. The State Department has authority over the project because it crosses a U.S. border, although the U.S. official discussing the possibility of rerouting the pipeline requested anonymity because no decision has been reached.

State Department mulls new route for Canada oil pipeline - USA Today

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