Keystone exports survive ban bid

Senate Democrats’ additions to pipeline legislation rejected

Sen. Al Franken, flanked by fellow Democratic Sens. Charles Schumer (left) and Edward Markey, addresses a news conference about the Keystone XL pipeline bill Tuesday on Capitol Hill in Washington.
Sen. Al Franken, flanked by fellow Democratic Sens. Charles Schumer (left) and Edward Markey, addresses a news conference about the Keystone XL pipeline bill Tuesday on Capitol Hill in Washington.

WASHINGTON -- The Republican-controlled Senate on Tuesday rejected Democrats' bids to ban exports from the Keystone XL oil pipeline and to require building the project with American-made steel.

In largely party-line votes, the Senate sidetracked the first two additions to a bill seeking to approve construction of the 1,179-mile pipeline.

Sens. Edward Markey of Massachusetts and Al Franken of Minnesota argued that their additions would ensure the pipeline, which will carry an estimated 800,000 barrels of oil from the Canadian tar sands to Gulf Coast refineries, will benefit Americans with fuel and jobs.

"Proponents of the Keystone XL pipeline have made promises that it would increase our energy security, but when they are given the chance to support keeping that oil in the United States, they actively oppose my amendment to do so," Markey said.

But Sen. Lisa Murkowski, R-Alaska, said such restrictions on a privately funded energy project amounted to a "slippery slope."

The Senate overwhelmingly endorsed a bipartisan measure to boost energy efficiency.

The Keystone XL oil pipeline is the top priority on the Republican agenda this Congress. Democrats hope to use the legislation to score political points on key issues associated with the project, including its contribution to global warming.

Sen. Sheldon Whitehouse, D-R.I., outlined Tuesday an eight-word measure that says: "Climate change is real and not a hoax."

But none of the measures are likely to sway more Democrats to vote for the bill. At a news conference Tuesday, Sen. Chuck Schumer, D-N.Y., said he also does not expect the amendments to inspire President Barack Obama to withdraw his veto threat and sign the pipeline bill into law.

Murkowski said that as of last week, 50 amendments had been filed.

The pipeline's developer, TransCanada Corp., moved Tuesday to seize access to the Nebraska land it needs to finish the $8 billion project -- the first steps it's taken since the state's high court removed a major legal barrier.

TransCanada employees said the company filed legal papers in nine Nebraska counties to invoke eminent domain for the land that's needed to construct, operate and maintain the pipeline. The filings come just before the company's two-year window closes Thursday.

The pipeline still faces legal challenges in Nebraska, even though the state's Supreme Court allowed the route to stand by default. 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.

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 owners who have not yet reached a deal. Some holdouts have said they won't negotiate no matter how much TransCanada offers.

The company has acquired 100 percent of the private landowner easements in Montana and South Dakota, according to TransCanada's Keystone projects land manager Andrew Craig.

"This is all we have left," Craig said. "We think 88 percent voluntarily agreements in the last two years is a substantial success."

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.

Craig said the company has secured voluntary agreements with as many as 96 percent of the landowners in some of the remaining Nebraska counties. He expects the company will sign agreements with at least half of the remaining landowners without having to use eminent domain.

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.

Environmentalists and other pipeline opponents also argue that any leaks could contaminate water sources and the project would increase air pollution around refineries and harm wildlife.

Supporters, including state and national Republicans and oil industry members, have said those fears are exaggerated and argue that the pipeline would create jobs and ease the country's dependence on foreign oil.

The information for this article was contributed by Anna Gronewold of The Associated Press.

A Section on 01/21/2015

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