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Nebraska’s governor has ordered a special session of the state legislature to examine potential new oil pipeline rules, a reversal of course that opens the possibility of substantial delays to the controversial Keystone XL project.
Republican Governor Dave Heineman made a surprise announcement on Monday, calling the Nov. 1 sitting, which he said in a statement will “determine if siting legislation can be crafted and passed for pipeline routing in Nebraska.”
Such a rule would give the state the power to approve or deny the pipeline’s intended path. Draft siting legislation has been underway for many months, but needed a special legislative session to be enacted before construction begins on the pipeline.
There are questions about whether such a rule can withstand legal scrutiny. If passed, it will present the most formidable obstacle to the Keystone XL project to date. It could take several years for Keystone backer TransCanada Corp. (TRP-T43.65-0.30-0.68%) to gain approval for an amendment of the current route.