TransCanada withdraws special permit request for expansion pipeline

TransCanada has withdrawn its request to the Pipeline and Hazardous Materials Safety Administration (PHMSA) for a special permit that would have allowed TransCanada to operate the proposed Keystone XL pipeline at a slightly higher pressure than US regulations for oil pipelines.

Aug. 6, 2010

2 min read

By OGJ editors
HOUSTON, Aug. 6 -- TransCanada has withdrawn its request to the Pipeline and Hazardous Materials Safety Administration (PHMSA) for a special permit that would have allowed TransCanada to operate the proposed Keystone XL pipeline at a slightly higher pressure than US regulations for oil pipelines.

After listening to concerns from the public and various political leaders, TransCanada withdrew its special permit application.

“The company recognizes it needs to take more steps to assure the public and stakeholders that the parameters of the special permit would result in a safer pipeline,” TransCanada said.

Keystone XL will implement the additional safety measures that would have been required under the special permit. These measures offer an enhanced level of safety and would allow TransCanada to request a special permit in the future, the company said.

The Keystone project received approval in March 2010 from both the South Dakota Public Utility Commission and the National Energy Board in Canada. Pending receipt of additional permits, construction is planned to begin in 2011.

When completed, the Keystone XL project will increase the commercial capacity of the overall Keystone Pipeline System to 1.1 million b/d from 590,000 b/d.

Keystone XL is a planned 1,959-mile, 36-in crude oil pipeline starting in Hardisty, Alba., and moving southeast through Saskatchewan, Montana, South Dakota, and Nebraska. It will connect with a portion of the Keystone Pipeline that will be built through Kansas to Cushing, Okla. The pipeline will continue on through Oklahoma to a delivery point near existing terminals in Nederland, Tex.