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U.S. delays review of Keystone XL pipeline

WASHINGTON — The Obama administration is extending indefinitely

the amount of time federal agencies have to review the Keystone XL

pipeline, the State Department said Friday, likely punting the

decision over the controversial oil pipeline past the midterm

elections.

The State Department didn't say how much longer agencies will have to

weigh in but cited a recent decision by a Nebraska judge overturning a

state law that allowed the pipeline's path through the state,

prompting uncertainty and an ongoing legal battle. Nebraska's Supreme

Court isn't expected to rule for another several months, and there

could be more legal maneuvering after that. The delay potentially

frees President Barack Obama to avoid making a final call on the

pipeline until after the November election.

"The agency consultation process is not starting over. The process is

ongoing, and the department and relevant agencies are actively

continuing their work in assessing the permit application," the State

Department said in a statement.

Republicans were quick to blast the latest delay in a review process

that has dragged on for more than five years. Senate Minority Leader

Mitch McConnell, R-Ky., accused Obama of kowtowing to "radical

activists" from the environmental community, while House Speaker John

Boehner, R-Ohio, called the decision "shameful" and said there were no

credible reasons for further delay.

"This job-creating project has cleared every environmental hurdle and

overwhelmingly passed the test of public opinion, yet it's been

blocked for more than 2,000 days," Boehner said in a statement.

In an ironic show of bipartisanship, prominent Democrats from

energy-dependent states joined Republicans in blasting the Obama

administration for delaying the decision once again. Democratic Sen.

Mary Landrieu, who faces a difficult re-election this year in

conservative-leaning Louisiana, said Obama was signaling that a small

minority of opponents can tie up the process forever in the courts,

sacrificing 42,000 jobs and billions in economic activity in the

process.

"This decision is irresponsible, unnecessary and unacceptable," Landrieu said.

But environmental groups fighting the pipeline hailed the delay,

arguing that it shows the State Department is taking the arguments

against the pipeline seriously.

"This is definitely great news," said Tiernan Sittenfeld, senior vice

president for the League of Conservation Voters. "We are very

confident as they continue to examine the issues with the lack of

legal route in Nebraska and the terrible climate impacts, at the end

of the day the pipeline will be rejected."

State Department officials said other U.S. agencies will be notified

of the new deadline to weigh in once the legal situation in Nebraska

becomes clearer. At the core of the delay is a concern that the legal

wrangling in Nebraska could lead to a change in the pipeline's route

that would affect agencies' assessments, said the officials, who

weren't authorized to comment by name and demanded anonymity.

Officials declined Friday to say when a final decision would take

place but said the process should proceed "as expeditiously as

possible." They added that the State Department is moving forward with

other aspects of its review that must take place before determining

whether approving the pipeline is in the U.S. national interest.

The White House has insisted that Secretary of State John Kerry is in

charge of the process, since the pipeline crosses the U.S.-Canada

border and falls under the State Department's jurisdiction. But

President Barack Obama is widely expected to make the final call and,

in a nod to environmentalists' concerns, has said the pipeline will be

deemed not in the U.S. interest if it contributes significantly to

increasing carbon dioxide emissions.

The White House declined to comment on the State Department's

announcement, which came on Friday afternoon, when many Americans were

observing Good Friday and preparing for the Easter holiday. Sen. John

Thune, R-S.D., accused the administration of seizing that opportunity

to downplay news of the latest delay.

Obama and environmental groups dispute the notion that the pipeline

would create many permanent jobs or have a substantial economic

impact, but Obama has refused to say whether he will nix it. The

1,179-mile pipeline would travel through Montana and South Dakota to a

hub in Nebraska, where it would connect with existing pipelines to

carry more than 800,000 barrels of crude oil a day to refineries in

Texas.

The pipeline project, proposed by Canadian company TransCanada, has

become a proxy for a larger battle between environmental activists and

energy advocates over climate change and the future of American

energy.

"We are disappointed that politics continue to delay a decision on

Keystone XL," said Jason MacDonald, a spokesman for Canadian Prime

Minister Stephen Harper.

In January, the State Department said that building the pipeline would

not significantly boost carbon emissions because the oil was likely to

find its way to market no matter what. Transporting the oil by rail or

truck would cause greater environmental problems than the pipeline,

the report said.

The State Department has jurisdiction because the pipeline would cross

the border between the U.S. and Canada.