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TransCanada takes steps to acquire Keystone pipeline land

January 20, 2015

LINCOLN, Nebraska (AP) — The developer of the long-debated Keystone XL pipeline to Canada’s oil sands took its first steps in Nebraska on Tuesday since the state’s high court removed a major legal barrier for the planned route.

Officials with TransCanada said they’ve filed paperwork in nine counties to acquire access to the remaining land that’s needed to construct, operate and maintain the pipeline. The two-year window for TransCanada to invoke eminent domain in Nebraska closes Thursday.

Pipeline opponents argue that many of the landowners in Montana and South Dakota were “bullied” early in the process and told they had no other option.

President Barack Obama has downplayed the project’s benefits, and the White House has publicly threatened to veto legislation in Congress that would fast-track the project.

Environmentalists and other pipeline opponents argue that any leaks could contaminate water sources and the project would increase air pollution around refineries and harm wildlife. Supporters, including Republicans and oil industry members, say those fears are exaggerated and argue that the pipeline would create jobs and ease the country’s dependence on foreign oil.

The pathway could still face legal challenges in Nebraska. Opponents have sued to try to prevent the Calgary, Alberta-based company from using eminent domain and to overturn the state pipeline-siting law that allowed ex-Gov. Dave Heineman to approve the route in 2013.

The pipeline would carry an estimated 800,000 barrels of crude oil a day to Nebraska, where it would connect with existing pipelines headed for Gulf Coast refineries.

By law, TransCanada can use the courts to force Nebraska landowners to sell access to their land. Company officials say they still need to acquire 12 percent of the total land easements from Nebraska landowners who have not yet reached a deal with the company. Some holdouts have said they won’t negotiate no matter how much TransCanada offers.

TransCanada’s Keystone projects land manager, Andrew Craig, said the company will continue to work to acquire easements voluntarily. Craig said eminent domain proceedings traditionally take about six months.

At least 70 percent of the Nebraska landowners have signed agreements, Craig said, and he expects the company will sign agreements with at least half of the remaining landowners without having to use eminent domain.

In the two lawsuits filed last week — which could delay the entire 1,179-mile Canada-to-Nebraska project — seven landowners in Holt and York counties said they’ve received written warning that pipeline developer intends to initiate eminent domain proceedings.

Those still willing to negotiate mostly have concerns about compensation and restoration of native grasslands that could take three to five years to regrow, Craig said.

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