The Keystone Oil Pipeline received a Presidential Permit from the United States Department of State on March 14, 2008, following a signing ceremony in Washington, D.C., on March 11. The Presidential Permit is required to proceed with construction of the Keystone Pipeline. Construction will begin in the second quarter of 2008 to achieve an in-service date in the fourth quarter of 2009.

The permit authorizes the construction, maintenance and operation of facilities at the U.S./Canada border to transport crude oil between the two countries. It follows the Department of State's (DOS) issuance of a Final Environmental Impact Statement which concluded that Keystone would not have an adverse impact on the environment.  The DOS also issued in February a Record of Decision which found that the Keystone Pipeline would be in the best interest of the Nation.

Keystone has also received approvals from the South Dakota Public Utilities Commission and the North Dakota Public Service Commission authorized the siting and construction of the pipeline in their respective states. Keystone will continue to file for other state and county permits over the next year.

Keystone received two major regulatory approvals from the National Energy Board in 2007.  The first was approval to transfer and convert a portion of the Mainline Line 1 from gas to oil service.  The second application was approval to construct and operate the Keystone pipeline.  Construction in Canada and the U.S. will begin in the second quarter of 2008.

Affiliates of TransCanada Corporation will be responsible for constructing and operating the 3,456-kilometre (2,148-mile) Keystone Pipeline, which will be capable of delivering 590,000 barrels per day of crude oil from Hardisty, Alberta, to U.S. Midwest markets at Wood River and Patoka, Illinois, and to Cushing, Oklahoma. Initial deliveries to Patoka are expected to begin in late 2009. Keystone has secured firm long-term contracts of 495,000 barrels per day with an average duration of 18 years.

For additional information, see the Keystone Pipeline Project on TransCanada’s website.