Keystone decision in danger of being delayed until 2014

The State Department is signalling that they may, again, delay the decision on the Keystone XL pipeline. According to media reports last week, an investigation into allegations made could postpone the decision into 2014.

Allegations suggest that the department hired a contractor with a conflict of interest to assess the oilsands pipeline’s environmental impact. Recently, the State Department’s internal watchdog said it would need until January to complete a conflict of interest review, but added it could not confirm the timing definitively. It is unclear whether the State of Department would need to wait for the release of the report before making a decision upon the Canada-to-Texas pipeline.

At issue is whether the contractor, who was selected by the department to perform an environmental review of Keystone, had ties to pipeline builder TransCanada Corp. Opponents of the pipeline suggest that the firm, Environmental Resources Management, had previously carried out consulting work for the pipeline company and thus their review was flawed.

ERM’s draft review of Keystone XL

ERM’s draft review of Keystone XL said that it would not accelerate growth of oilsands, and thus would not substantially boost greenhouse gas emissions – other pipelines and rail transport would bring the oilsands to market. Backers of Keystone used the State Department’s draft report to say that the pipeline would not significantly exacerbate carbon pollution, urging Obama to approve it.

In contrast, green groups, who contend that ERM had a conflict of interest, have urged for a new review. They maintain that the pipeline would accelerate oilsands growth.

The Natural Resources Defense Council have advised that the State Department should wait for the inspector general report before coming to a decision on Keystone.

Edited from various sources by Hannah Priestley-Eaton

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