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Neb. regulator denies TransCanada's bid to reconsider Keystone XL pipeline route

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Neb. regulator denies TransCanada's bid to reconsider Keystone XL pipeline route

The Nebraska Public Service Commission denied a request by TransCanada Corp. to change the route of the Keystone XL oil pipeline through the state.

In a one-sentence order issued Dec. 19, the regulator said it would not reconsider its previously approved route for the 830,000-barrel-per-day pipeline. The PSC issued its final order on the pipeline route Nov. 20 and held oral arguments on TransCanada's request to change the route Dec. 12.

Nebraska's route decision was one of the final regulatory hurdles for the line, which would short-cut the company's existing Keystone system that links the oil sands region in Alberta with a hub in Steele City, Neb. TransCanada, which took a write-down on the project after the Obama administration denied a key permit, revived Keystone XL after that decision was reversed by the Trump administration.

The route approved by the PSC would add five miles to the conduit, proposed almost a decade ago to link Canada's oil sands region with a pipeline hub in the southeastern part of Nebraska. The approved route would require the Calgary, Alberta-based TransCanada to build an additional pumping station and negotiate land-crossing agreements with property owners.

The PUC did not give reasons for denying the request to change the route in its decision. The document lists all five of the commissioners as concurring.

TransCanada said it remains committed to the project. "Following today's decision, we will take the time to review the decision and determine the appropriate next steps for the project in Nebraska," TransCanada spokesman Terry Cunha said in an email. "Keystone XL remains a viable project with strong commercial support."

TransCanada CEO Russ Girling said in November that shipper support for pipeline is encouraging. The company concluded an open season to solicit firm contracts for shipping in October.

"The project continues to have widespread support of the U.S. and Canadian federal governments as well as state and provincial governments in Montana, South Dakota, Nebraska, Saskatchewan and Alberta," Cunha said. "President Trump and his administration continue to actively support Keystone XL and we expect to secure final federal permits in early 2018."