Keystone XL Pipeline Project: Key Issues [November 5, 2012]   [open pdf - 654KB]

"In May 2012, Canadian pipeline company TransCanada reapplied to the U.S. Department of State for a Presidential Permit to build the Keystone XL pipeline. The pipeline would transport crude oil from the oil sands region of Alberta, Canada, to the existing Keystone Pipeline System in Nebraska. It also could accept U.S. crude from the Bakken oil fields in Montana and North Dakota. A second segment of the Keystone XL pipeline system, the Gulf Coast Project, is proceeding separately to connect existing pipeline facilities in Oklahoma to refineries in Texas. When completed, the entire Keystone XL pipeline system would ultimately have capacity to transport 830,000 barrels of crude oil per day to U.S. market hubs. TransCanada submitted the May 2012 permit application after its 2008 Keystone XL permit application was denied. The State Department has jurisdiction over the Keystone XL pipeline's approval because it would cross the U.S. border. Before it can approve such a permit, the department must determine that the project is in the 'national interest,' accounting for potential effects on the environment, economy, energy security, and foreign policy, among other factors. Environmental impacts are considered under the National Environmental Policy Act, as documented in an Environmental Impact Statement (EIS). For the 2008 permit application, a final EIS was issued in August 2011, followed by a public review period. Largely in response to public comments and efforts by the state of Nebraska, the State Department determined that it needed to examine alternative pipeline routes that would avoid the environmentally sensitive Sand Hills region of Nebraska, a sand dune formation with highly porous soil and shallow groundwater that recharges the Ogallala aquifer."

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CRS Report for Congress, R41668
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