Oil pipeline delayed for more environmental review

A proposed pipeline designed to carry Canadian tar sands oil to refineries along the Gulf Coast will be delayed further while the U.S. government conducts an additional environmental review. Environmental groups had called on the Obama administration to conduct this additional review.

A presidential permit from the State Department is required because the pipeline would cross the U.S.-Canadian border. Calgary-based TransCanada first submitted its Keystone XL project for State Department review in late 2008.

The project is designed to carry crude oil from tar sands near Hardisty, Alberta, to the Gulf Coast via Montana, South Dakota, Nebraska, Kansas, Oklahoma and Texas. TransCanada officials did not immediately respond to messages Tuesday. The company had predicted earlier that a decision on the project would come by the end of 2010.