U.S. Government Rejects Keystone XL

Environmental, Energy and Resources Law

January 18, 2012

According to reports from CBC and The Globe and Mail, the U.S. State Department will issue its decision regarding TransCanada's Keystone XL pipeline project later today.

Both sources are reporting that the State Department will turn down the project.

Should the pipeline be rejected, it is widely expected that TransCanada will reapply for the required permits once a new route through Nebraska is identified.


Late in the afternoon, President Obama turned down the pipeline as predicted.  In a statement, he stated that his action was not a judgment on the merits of the pipeline but rather was the result of the tight timeframe imposed by Congress to approve or reject the pipeline.   He also noted that TransCanada is free to reapply.

For its part, TransCanada stated late this afternoon that it was continuing to make plans to maintain the construction schedule and that it would reapply for the presidential permit, and expected that consideration of that application would be expedited to allow for a late 2014 in-service date.