Watching Government: Obama's signals on Keystone

Nov. 7, 2011
As national environmental organizations increased pressure on the Obama administration to reject the proposed Keystone XL crude oil pipeline's cross-border permit application, the president indicated that he—and not the US Department of State—will make the final decision.

As national environmental organizations increased pressure on the Obama administration to reject the proposed Keystone XL crude oil pipeline's cross-border permit application, the president indicated that he—and not the US Department of State—will make the final decision.

Moreover, Obama said during a Nov. 1 interview with television station KETV in Omaha, Neb., he will be considering the project's potential health and environmental impacts as well as its potential employment, economic, and energy security benefits.

"Folks in Nebraska, like all across the country, aren't going to say we'll take a few thousand jobs if it means kids are potentially going to be drinking water that damages their health," he said. "When somebody gets sick, that's a cost that society has to bear as well."

Obama noted that DOS is in charge of analyzing the proposed project's potential impacts, and will give him a report over the next several months. "My general attitude is what is best for the American people; what's best for our economy, both short-term and long-term; but also what's best for the health of the American people," he said.

'Take the long view'

"We want to make sure we take the long view," Obama said. "We need to encourage domestic natural gas and oil production. We need to make sure that we have energy security and are not just relying on Middle East sources. But there's a way of doing that, and still making sure that the health and safety of the American people, and folks in Nebraska, are protected. That's how I'll be measuring these recommendations when they come to me."

Obama's statements came days after major US environmental organizations notified DOS that they plan to sue if the federal department grants TransCanada Corp.'s application for Keystone XL's cross-border permit. They also asked the department's inspector general to investigate allegations of wrongdoing in DOS's review of the project's potential environmental impacts.

The groups also called on their members to join a Nov. 6 protest against the project in Washington, DC. Their efforts came as the American Petroleum Institute continued to hold energy jobs summits across the US Midwest outlining Keystone XL's potential contributions to state and local economies. The US Chamber of Commerce also has called for approval of the project's cross-border permit application. The Canadian government has made its support for Keystone XL crystal clear.

DOS could meet its goal of submitting its recommendation to the president by yearend, but the US Environmental Protection Agency also might weigh in on the matter. It's increasingly apparent that Obama won't make his final decision until next year.

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