TransCanada Welcomes Approval of Keystone XL Pipeline Route Through
OMAHA, NEBRASKA -- (Marketwire) -- 01/22/13 -- TransCanada
Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) welcomed news today
that Nebraska Governor Dave Heineman has approved the re-route of the
proposed Keystone XL Pipeline through the state. The Governor's
approval comes after his review of the final evaluation report from
the Nebraska Department of Environmental Quality (NDEQ) and is the
last step in the re-route review process established by the Nebraska
State legislature. The approved reroute now becomes part of the
project's Presidential Permit application with the U.S. Department of
State, which was filed on May 4, 2012.
"Over the past year, we have been listening to Nebraskans as we
worked to identify a new route for the Keystone XL Pipeline that
avoided the Sandhills, protected sensitive areas and addressed as
many concerns as possible," said Russ Girling, TransCanada's
president and chief executive officer. "The NDEQ process has clearly
taken into account the input from Nebraskans and today's approval of
the Nebraska re-route by Governor Heineman moves us one step closer
to Americans receiving the benefits of Keystone XL - the enhanced
energy security it will provide and the thousands of jobs it will
"The need for Keystone XL continues to grow stronger as North
American oil production increases and having the right infrastructure
in place is critical to meet the goal of reducing dependence on
foreign oil," concluded Girling. "Keystone XL is the most studied
cross-border pipeline ever proposed, and it remains in America's
national interests to approve a pipeline that will have a minimal
impact on the environment."
The Governor's letter to President Obama points out that the Nebraska
Department of Environmental Quality final evaluation report made a
number of important findings. These findings include:
-- The preferred route avoids the area that is defined as the Nebraska
Sandhills. This area was defined by state and other agencies in 2001 -
long before a pipeline was considered.
-- Construction and operation of the Keystone XL Pipeline is expected to
have "minimal environmental impacts in Nebraska."
-- Construction of Keystone XL will result in $418.1 million in economic
benefits and support up to 4,560 new or existing jobs in Nebraska. The
project will generate $16.5 million in taxes from pipeline construction
materials and is expected to yield up to $13 million in local property
tax revenues in its first full year of valuation.
-- Normal operation of the pipeline is expected to have no effect on ground
or surface water quality or use along the pipeline route in Nebraska. In
the unlikely event of a spill from the pipeline, impacts on water
resources would be localized and would not impact the Ogallala Aquifer
as a whole.
-- TransCanada will implement a detailed Emergency Response Plan for
Keystone XL and is responsible for cleanup, remediation and compensation
related to oil released from the pipeline.
-- The 57 special conditions TransCanada has agreed to adopt for the
construction, operation and maintenance of Keystone XL will make it
safer than typical pipelines built in the U.S. and will result in "more
rigorous adherence to industry standards." The special conditions
include burying the pipeline deeper underground, installing a higher
number of data sensors and remote controlled shut-off valves and
increased inspections and maintenance. TransCanada will also use special
techniques to reduce disturbance and enhance pipeline safety near
wetlands, rivers, residential and commercial areas, steep terrain and
-- The physical and chemical properties of crude oil transported in
Keystone XL will be similar to the light and heavy crude oils already
being transported safely in pipelines across the United States.
TransCanada will provide local emergency responders with Material Safety
Data Sheets for products contained in the pipeline immediately in the
event of a spill.
This proposed oil pipeline will transport oil from Hardisty, Alberta
and Baker, Montana before reaching delivery terminals in Steele City,
Nebraska. Keystone XL is estimated to cost about $5.3 billion (U.S.
funds) to build and will support the creation of 9,000 jobs on the
American portion of the pipeline and about 2,200 on the Canadian
side. The projected in-service date for Keystone XL is late 2014 or
early 2015, subject to approval of the company's Presidential Permit
In addition to the company's work on Keystone XL, TransCanada began
construction on the Gulf Coast Pipeline Project in August 2012. Since
work on this project began, TransCanada has employed about 4,000
skilled labourers, trades people, inspectors and project management
specialists to build the pipeline from Cushing, Oklahoma to delivery
points in the Houston and Nederland, Texas areas. The initial
capacity of the Gulf Coast Pipeline will be 700,000 barrels of oil
per day, with the ability to increase to 830,000 barrels per day. The
company expects that the Gulf Coast Pipeline will go into commercial
service in late 2013.
Since the original Keystone Pipeline began operating in 2010, it has
safely delivered more than 350 million barrels of oil to refineries
in the U.S. Midwest. Long-term commercial contracts remain in place
for Keystone XL, which is designed to carry about 830,000 barrels of
oil per day from Alberta, Montana, North Dakota and South Dakota to
Steele City, Nebraska.
Nebraska Department of Environmental Quality report
Nebraska Governor's Route Approval
TransCanada's Presidential Permit application
With more than 60 years' experience, TransCanada is a leader in the
responsible development and reliable operation of North American
energy infrastructure including natural gas and oil pipelines, power
generation and gas storage facilities. TransCanada operates a network
of natural gas pipelines that extends more than 68,500 kilometres
(42,500 miles), tapping into virtually all major gas supply basins in
North America. TransCanada is one of the continent's largest
providers of gas storage and related services with more than 400
billion cubic feet of storage capacity. A growing independent power
producer, TransCanada owns or has interests in over 11,800 megawatts
of power generation in Canada and the United States. TransCanada is
developing one of North America's largest oil delivery systems.
TransCanada's common shares trade on the Toronto and New York stock
exchanges under the symbol TRP. For more information visit:
http://www.transcanada.com or check us out on Twitter @TransCanada or
FORWARD LOOKING INFORMATION
This publication contains certain information that is forward-looking
and is subject to important risks and uncertainties (such statements
are usually accompanied by words such as "anticipate", "expect",
"would" or other similar words). Forward-looking statements in this
document are intended to provide TransCanada security holders and
potential investors with information regarding TransCanada and its
subsidiaries, including management's assessment of TransCanada's and
its subsidiaries' future financial and operation plans and outlook.
All forward-looking statements reflect TransCanada's beliefs and
assumptions based on information available at the time the statements
Readers are cautioned not to place undue reliance on this
forward-looking information. TransCanada undertakes no obligation to
update or revise any forward-looking information except as required
by law. For additional information on the assumptions made, and the
risks and uncertainties which could cause actual results to differ
from the anticipated results, refer to TransCanada's Management's
Discussion and Analysis filed February 15, 2012 under TransCanada's
profile on SEDAR at http://www.sedar.com/ and other reports filed by
TransCanada with Canadian securities regulators and with the U.S.
Securities and Exchange Commission.
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