US to review Keystone XL Nebraska route

The US State Department is planning to conduct a new environmental review of TransCanada's 830,000 b/d Keystone XL crude pipeline's route through Nebraska.

The additional review could add further delay to the controversial project which would transport crude from Alberta's oil sands to Steele City, Nebraska.

Notice of the review is scheduled to be printed in the Federal Register tomorrow, according to a pre-publication notification today.

The Nebraska Public Service Commission (PSC) in November approved a Keystone XL route through the state, but not TransCanada's preferred 275-mile (443km) path. The state instead approved a different "mainline alternative route" which threw an unexpected twist into the proceedings and has now triggered more federal review.

The Keystone XL "mainline alternative route" would start at the Nebraska-South Dakota border and follow the same path as TransCanada's preferred route for 110 miles (118km). It then separates from the preferred route towards the southeast and then parallels the existing Keystone mainline in two stretches.

The State Department plans to issue a "notice of intent" to evaluate the potential environmental impacts of the mainline alternative route in Nebraska which "is consistent with the National Environmental Policy Act of 1969," according to the State Department notice.

The new review will support of the Bureau of Land Management's review of TransCanada's application for a right-of-way, the notice said.

The State Department is requesting comments and participation from interested federal, tribal, state, and local governments, as well as members of the public, to help inform the environmental assessment scope and content.

TransCanada referred questions to the US agency. "We will look to the State Department to outline the process and what additional information they may require of us," a company spokesman said.

The company first proposed Keystone XL in 2008 but it was delayed repeatedly. The administration of former US president Barack Obama in 2015 blocked Keystone XL after years of review and high-profile opposition from environmentalists and Nebraska landowners, citing environmental concerns. The project was revived last year, receiving a cross-border permit from the administration of President Donald Trump in March 2017.

TransCanada said last month that it has started preparing for construction and is still negotiating easements in Nebraska as it waits for clarity on legal and regulatory issues.