Keystone XL Decision Likely to Come After Midterm Elections

By Amy Harder 

WASHINGTON--The Obama administration is extending its review of the Keystone XL pipeline, citing ongoing litigation in Nebraska over the project's route through the state, according to people familiar with the matter.

The State Department is allowing more time for government agencies to weigh in on the project--a review process that was expected to end in early May, State Department officials told congressional staff on Friday.

It is unclear how much more time the State Department will allow for input, but it is likely to push a final decision on the pipeline--which has been under review by the Obama administration for more than five years--until after November's midterm elections.

TransCanada Corp. wants to send oil through a pipeline from Canadian oil sands to Gulf Coast refineries in the U.S. The pipeline project has stirred opposition from environmental groups, which warn it could lead to oil spills and exacerbate global warming. Business interests contend it will create jobs and offer a safer alternative than transporting the oil by rail.

A Nebraska court in February overturned a state law that allowed the route to bypass the state's Ogallala aquifer, a concern environmentalists raised a few years ago in the pipeline's review.

Earlier this month 11 Senate Democrats, including five up for reelection, sent a letter to President Barack Obama urging him to make a final decision on the pipeline by May 31. This delay nearly guarantees that won't happen.

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