LINCOLN, Neb.—Nebraska and TransCanada Corp. agreed on Monday to find a new route for the stalled Keystone XL pipeline that would steer clear of environmentally sensitive lands in the state.
Under pressure from green groups, the U.S. State Department last week ordered the company to find a new route for the line in a decision that set back the $7 billion, Canada-to-Texas pipeline by more than a year.
The pipeline would deliver 700,000 barrels a day of crude from Alberta's oil sands to Texas refineries. But environmentalists strongly oppose the project, because of the route, concerns about spills and carbon emissions from production of oil sands crude.
In the deal with Nebraska, the state would pay for the new studies to find a route that would avoid the Sandhills region and the Ogallala aquifer, which provides water for millions in the area.
"I believe we will put the routing issue completely behind us," said Alex Pourbaix, TransCanada's president of Energy and Oil Pipelines. "We have heard and we have listened to the people of the Sandhills."
The agreement will not change the timeline for a federal review, said a spokesman for the U.S. State Department, which has final approval for the project because it crosses an international border.
"Nothing has changed in the process since last Thursday's announcement as any new proposed routes will be subject to the thorough, rigorous and transparent review process we have undertaken throughout," said Mark Toner, deputy spokesman for the department.
As the country awaits results from a nationwide safety study on the natural gas drilling process of fracking, a separate government investigation into contamination in a place where residents have long complained that drilling fouled their water has turned up alarming levels of underground pollution.
A pair of environmental monitoring wells drilled deep into an aquifer in Pavillion, Wyo., contain high levels of cancer-causing compounds and at least one chemical commonly used in hydraulic fracturing, according to new water test results released yesterday by the Environmental Protection Agency.
The findings are consistent with water samples the EPA has collected from at least 42 homes in the area since 2008, when ProPublica began reporting on foul water and health concerns in Pavillion and the agency started investigating reports of contamination there.
Five Minnesota-made electric vehicles with rooftop solar panels will soon find homes at Naval bases in Texas and Mississippi.
Manufactured by e-Ride Industries in Princeton, the low-speed vehicles can travel between 40 and 45 miles on a single charge and have the same power as a gasoline-powered small pickup.
E-Ride is among the many Midwest firms vying for business from the Department of Defense for good reason. The DOD has become a major federal funder of green projects, with $1.2 billion spent in 2010 alone. It's also funding research through other initiatives, such as a collaboration with the Department of Energy called the Advanced Research Projects Agency, or ARPA-e.
In fact, the military set up a website, DoD Goes Green, just to track all the activity.
Every service branch is participating in green energy procurement and research, according to Phyllis Cuttino of the Pew Project on National Security Energy and Climate.
Released in September, Pew's report "From Barracks to Battlefield: Clean Energy Innovation and America’s Armed Forces" details the armed services push for greener bases, supply chains and more renewable energy and technology for soldiers in battle.
The Pentagon's continued support of greener energy is a potential game-changer because of its enormity. The military spends more than $400 billion on goods and services every year, a good portion of it on new technology.
The State Department's Inspector General has opened a "special review" of the department's environmental assessment of the Canada-to-Texas Keystone XL pipeline, Senator Bernie Sanders said, which could delay the final decision on the line into 2012 or later.
"The State Department inspector general has informed me that it is reviewing the department's handling of an environmental impact study related to the proposed Keystone XL pipeline project," Sanders, a Vermont independent, said in a release.
The State Department has said it hopes to decide by the end of the year whether TransCanada Corp's $7 billion Keystone project to ship oil sands crude to the United States can go forward, but has opened the door to a possible delay citing the need for a thorough review.
Sanders, one of the Senate's most liberal members, Democratic Representative Steve Cohen and 12 other Congressional Democrats late last month asked President Barack Obama in a letter to delay a decision on the oil pipeline until the State Department inspector general investigated alleged conflicts of interest over the project.
"The chances of them making a decision before the end of the year are pretty much impossible at this point," a congressional aide familiar with the matter, told Reuters.
The Canadian crude oil that would flow through the Keystone XL pipeline is either the lynchpin of U.S. energy security or the path to certain environmental destruction, depending on whom you talk to. Advocates say there is no evidence that it is any more harmful than other types of oil; critics say there is insufficient evidence that it is safe. There is little information to support either side.
The oil that would flow through the pipeline is known as diluted bitumen, or dilbit, and it has become a lighting rod for controversy in the debate over the pipeline, which would send as much as 830,000 barrels every day from the tar sands of Alberta, Canada to refineries as far as Texas. The pipeline would cross six states, sometimes passing through environmentally sensitive terrain where spills would be of special concern.
While bitumen has long been refined into oil, regulation of diluted bitumen has been slow to follow. Federal safety officials, for example, don't know precisely which chemicals shippers mix with bitumen to create dilbit. And even industry groups can't say exactly how corrosive dilbit is. Research is spotty and outdated; there have been no independent scientific studies exploring the relationship between dilbit and pipeline corrosion.
Here's a primer on what is—and isn't—known about dilbit.
The State Department may miss a year-end target to approve TransCanada Corp's Canada-to-Texas Keystone oil sands pipeline, a U.S. official told Reuters on Tuesday, risking a further delay to the most important new crude oil conduit in decades.
The official, who spoke on condition of anonymity, said the State Department still hoped to make a decision by the end of this year, which has been its target, but that its highest priority was to carry out a thorough, rigorous review. The decision has already been pushed back once.
A further delay would not only be a blow to TransCanada, it could also prolong a massive gap between U.S. and global oil prices because oil traders are counting on Keystone's 700,000 barrel-per-day capacity to relieve a build-up of crude in the Midwest, which doesn't have enough pipelines to ship growing Canadian output to Gulf Coast refineries for use around the United States.
The ruling, which falls to the State Department because the line crosses national borders, is forcing President Barack Obama into a decision that effectively pits environmental safety against job creation and energy security.
"While we still hope to make a decision by the end of the year, we are first and foremost committed to a thorough, transparent and rigorous review process," said the U.S. official, who spoke on condition of anonymity.
"So we're carefully reviewing all of the information we've received, including the many comments from the public, and will make a decision only after we have weighed all of the facts," the official added.
Nebraska's governor will call a special session of the state's legislature over TransCanada Corp's proposed oil sands pipeline that would cross ecologically sensitive areas in his state, an aide said.
Governor Dave Heineman does not oppose the Canada-to-Texas pipeline outright but wants TransCanada to change the route away from Nebraska's Sand Hills region, which sits atop the Ogallala Aquifer, one of the largest sources of water for farms in the central United States.
If Nebraska succeeds in changing the route for the Alberta-to-Texas pipeline, it could add delays for the project. The pipeline would take oil sands crude from Alberta to Gulf Coast refineries, and potentially to its ports for export.
Climate skeptics' criticisms of the evidence for global warming make no difference to the emerging picture of a warming world, according to the most comprehensive, independent review of historical temperature records to date.
Scientists at the University of California, Berkeley, investigated several key issues that skeptics claim can skew global warming figures and found they had no meaningful effect on world temperature trends.
Researchers at the Berkeley Earth project compiled more than a billion temperature records dating back to the 1800s from 15 sources around the world and found that the average global land temperature has risen by around 1 degree Celsius (1.8 degrees Fahrenheit) since the mid-1950s.
This figure agrees with the estimate of global warming arrived at by major groups that maintain official records on the world's climate, including NASA's Goddard Institute for Space Studies in New York, the US National Oceanic and Atmospheric Administration (NOAA), and the Met Office's Hadley Centre, with the University of East Anglia, in the UK.
"My hope is that this will win over those people who are properly skeptical," Richard Muller, a physicist and head of the Berkeley Earth project, told the Guardian.
OMAHA, Nebraska—TransCanada Corp has offered a $100 million performance bond and other oil spill protection measures to Nebraska legislators in an attempt to reduce opposition to the company's proposed $7 billion Keystone XL oil pipeline.
State lawmakers want TransCanada to move the pipeline route from Nebraska's Sandhills region, which sits atop a massive aquifer from which a large portion of the agriculture-heavy central United States gets its water.
In a letter to the speaker of the legislature on Tuesday, TransCanada executive Alex Pourbaix said the company cannot make changes to the right-of-way so late in the review process, but is prepared to offer a host of other protections for the environmentally sensitive area.
TransCanada would put up a $100 million performance bond it would make available to the state if the company does not clean up a spill in the Sandhills area.
Among other measures, it would build a concrete containment structure at a pump station to stop any oil from mixing with surface water in the event of a spill, as well as install a pipe coating made of concrete or other materials in areas where the water table is close to the surface.
The controversial proposed path of the TransCanada Keystone XL oil pipeline across Nebraska is unlikely to change, company officials said Tuesday.
Alex Pourbaix, TransCanada's president of energy and oil pipelines, and Robert Jones, a TransCanada vice president who would be in charge of constructing the pipeline, met in Norfolk, Nebraska with four Nebraska state senators.
"We understand that the best solution from your perspective is to move the route. We don't believe that is an option for us," Pourbaix said.
"But there are things we can do together to improve the situation and add to your comfort level."
The project would cut across a corner of Nebraska's environmentally fragile Sandhills and the water-rich Ogallala Aquifer. Opposition to the route has swelled in recent months. Nebraska Governor Dave Heineman asked the U.S. State Department last week whether the state can pass and enforce its own pipeline siting law.