Keystone XL Pipeline Gains 'Official' Approval

Pipelines International, 24 February 2010--The South Dakota Public Utilities Commission (PUC) has granted a permit for the construction of the Keystone XL Pipeline in western South Dakota, United States. The Commission's approval of the construction permit is contingent upon pipeline proponent TransCanada complying with 50 conditions, which include requirements to lodge two $US15.6 million bonds and appoint an independent public liaison officer.

PUC Chairman Dusty Johnson said “I feel the conditions we have placed upon this project ensure that it will be constructed in a manner that is sensitive to South Dakota and her people." The possibility of a pipeline leaking was an issue discussed throughout the 11-month case review. TransCanada filed testimony stating the chance of an oil spill is no more than one in 7,400 years for any given mile of pipe and the size of such a spill would likely be three barrels or less and would be contained within the pipeline trench.

TransCanada is seeking regulatory approvals in Canada and the United States to construct and operate a 3,200 km expansion of its 3,456km Keystone Pipeline, which would make it one of the largest oil delivery systems in North America.