EPA objects to proposed oil pipeline from Canada

By MATTHEW DALY | June 7, 2011 | 2:13 PM EDT

WASHINGTON (AP) — The Environmental Protection Agency has raised new concerns about a proposed pipeline that would carry oil from western Canada to the Texas Gulf Coast. In a letter to the State Department, the EPA says it is concerned about the risk of oil spills that could affect drinking water and sensitive ecosystems, as well as the effect of greenhouse gas emissions associated with the proposed Keystone XL pipeline.

The EPA said that despite two lengthy reports, the State Department still has not done sufficient analysis of the project's impact on the environment. The letter urged State to conduct a more thorough analysis of oil spill risks and alternative pipeline routes.

The $7 billion pipeline planned by Calgary-based TransCanada would carry crude oil extracted from tar sands in Alberta, Canada, to refineries in Texas.