Full Coverage: Keystone XL pipeline
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The Obama administration’s move pleases environmentalists but opens the president to criticism that he failed to pursue a chance to create thousands of jobs.
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The State Department said Thursday that it will delay consideration of the controversial Keystone XL pipeline to study alternative routes, addressing what it termed were environmental concerns about a posssible path through Nebraska’s Sand Hills region.
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The project has left Obama trapped between environmentalists who oppose it and unions who back it because it would create jobs.
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In a sign of hardening skepticism toward the controversial Keystone XL pipeline, a top Senate Democrat has sent a letter to the Obama administration asking about a possible conflict of interest between the pipeline operator and a company handling the environmental impact study of the project.
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At hearings along the pipeline’s route from Montana to Texas, traditional political bases are at each other’s throats.
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The State Department has concluded that the highly controversial proposal for the Keystone XL pipeline would not have “significant impacts” on the environment, removing a major barrier to the construction of a $7-billion project that would ship oil sands crude oil from Canada to the Texas Gulf Coast.