Latest News

The Canadian Press - ONLINE EDITION

U.S. Senate puts more pressure on Obama over Keystone pipeline

By: The Associated Press

Posted: 12/17/2011 9:40 AM | Comments: 0 | Last Modified: 12/17/2011 2:21 PM

Sen. John McCain, R-Ariz., talks on his cell phone just off the floor of the Senate as the body votes to approve legislation that extends Social Security payroll tax cuts for two months, at the Capitol in Washington. The action also extends long-term unemployment benefits for another two months and forces President Barack Obama to approve construction of a controversial oil pipeline. (AP Photo/J. Scott Applewhite)

WASHINGTON - The U.S. Senate has approved a budget legislation that contains a provision demanded by the Republicans to pressure President Barack Obama into approving construction of a Canada-to-Texas oil pipeline.

The Republicans have cited the 2,735-kilometre Keystone XL pipeline as an example of a project that could put people back to work.

Obama recently announced that he was postponing a decision on the pipeline until after the 2012 elections to allow for more time to study the environmental ramifications of the proposal.

An agreement reached by Senate leaders Friday night and approved during a rare Saturday session would require Obama to decide within 60 days whether to grant a permit for the pipeline.

But the legislation also allows Obama to decide not to do so if he determines that the pipeline is "not in the national interest."

One senior administration official said the president would almost certainly refuse to grant a permit. The official was not authorized to speak publicly.

The pipeline would carry oil from Western Canada to Texas Gulf Coast refineries, passing through Montana, South Dakota, Nebraska, Kansas and Oklahoma. The project is expected to create up to 20,000 jobs.

Also approved Saturday was a two-month extension of a cut in the Social Security payroll tax and jobless benefits for the long-term unemployed.

Democratic and Republican leaders went with just a short extension after failing to agree on big enough spending cuts to pay for a full-year renewal of the payroll tax cut.

The two percentage point tax cut affects 160 million taxpayers. The weekly jobless payments average about $300 for millions of people who have been out of work for six months or more.

In a statement, White House communications director Dan Pfeiffer indicated Obama would sign the two-month extension measure.

The statement made no mention of the pipeline.

Factual inaccuracy? Something missing? Help improve our journalism.

Know about news? Share your story suggestions, photos and video.

Spelling error? Punctuation problem? Send us an email if you’ve found a typo.

More Latest News

Undock

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.