Developer Reroutes Keystone XL Approval Process Through State

[eridani]

http://www.manufacturing.net/news/2015/10/developer-reroutes-keystone-xl-approval-process-through-state

The Canadian company that wants to build the Keystone XL pipeline is taking steps to circumvent one of the major roadblocks in Nebraska.

But in seeking approval Monday for the same contentious route through the state, TransCanada could create another round of lengthy delays in an already drawn-out process.

It also indicates a new push for the $8 billion Canada-to-Texas oil pipeline in a state where opponents have repeatedly thwarted efforts to build the project. President Barack Obama has indicated that he may reject a federal permit for the project, as he did in 2012 when he accused congressional Republicans of setting an arbitrary deadline.

Former Gov. Dave Heineman approved the Nebraska route in 2013 under a state law that allowed TransCanada to use eminent domain against holdout landowners, but opponents sued and the project has been mired in state courts ever since.

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The case, which is set to go to trial Oct. 19, is widely expected to return to the state's highest court, and if it sides with the landowners, TransCanada would have to apply to the PSC anyway.

"The writing's kind of on the wall," University of Nebraska law professor Anthony Schutz said. "The prospect of losing was significant enough that they probably looked at the tea leaves and said, 'Why don't we just go forward with that process now?' "

Landowners who sued to block the project are pleased with TransCanada's PSC application, but landowners attorney Dave Domina said they want the pipeline-siting law to be invalidated to eliminate any chance that company officials try to use it again.