transcanada keystone xl pipeline projectinsideclimatenews.org/sites/default/files/transcanada...

16
TransCanada Keystone XL Pipeline Project Supplemental Environmental Report for the Nebraska Reroute Prepared for: TransCanada Keystone Pipeline LP 717 Texas Street, Suite 2400 Houston, Texas 77002 Prepared By: exp Energy Services Inc. 1300 Metropolitan Blvd. Tallahassee, Florida 32303 Document Number KXL-TAL-1005-002 Date Submitted September 5, 2012

Upload: others

Post on 06-Mar-2020

4 views

Category:

Documents


0 download

TRANSCRIPT

TransCanada Keystone XL Pipeline Project

Supplemental Environmental Report

for the Nebraska Reroute

Prepared for:

TransCanada Keystone Pipeline LP 717 Texas Street, Suite 2400 Houston, Texas 77002

Prepared By:

exp Energy Services Inc. 1300 Metropolitan Blvd. Tallahassee, Florida 32303 Document Number KXL-TAL-1005-002

Date Submitted September 5, 2012

TransCanada Keystone XL Pipeline Project SER for the Nebraska Reroute

September 5, 2012

ii

THIS PAGE INTENTIONALLY LEFT BLANK

TransCanada Keystone XL Pipeline Project SER for the Nebraska Reroute

September 5, 2012

iii

Table of Contents

Executive Summary .................................................................................................................... 1

1.0 Introduction ........................................................................................................................ 1 1.1 Background and Overview ........................................................................................................ 1 1.2 Purpose and Need for the Project ............................................................................................. 5 1.3 Federal Approval Process and Authorizing Actions .................................................................. 5 1.4 Permits and Relationship to Non-federal Policies, Plans, and Programs ................................. 6 1.5 Public Participation .................................................................................................................... 8

2.0 Proposed Alternatives ........................................................................................................ 9 2.1 Proposed Action ........................................................................................................................ 9

2.1.1 Project Description and Location .................................................................................. 9 2.1.2 Nebraska Route Location ........................................................................................... 10 2.1.3 Ancillary Facilities Summary....................................................................................... 11 2.1.4 Land Requirements .................................................................................................... 12 2.1.5 Pipeline ROW ............................................................................................................. 12 2.1.6 Additional Temporary Workspace Areas .................................................................... 12 2.1.7 Pipe Stockpile Sites, Railroad Sidings, and Contractor Yards ................................... 12 2.1.8 Construction Camp ..................................................................................................... 13 2.1.9 Access Roads ............................................................................................................. 14 2.1.10 Pump Stations ............................................................................................................ 14 2.1.11 Construction Procedures ............................................................................................ 15

2.2 No Action Alternative ............................................................................................................... 30 2.3 Nebraska Route Alternatives ................................................................................................... 30

2.3.1 Northern Alternative .................................................................................................... 31 2.3.2 Clarks Alternative ....................................................................................................... 37 2.3.3 Western Alternative .................................................................................................... 37

3.0 Affected Environment of Nebraska Reroute ...................................................................... 43 3.1 Climate and Air Quality ............................................................................................................ 43

3.1.1 Climate ........................................................................................................................ 43 3.1.2 Air Quality Regulatory Requirements ......................................................................... 43

3.2 Air Quality Regulatory Requirements ...................................................................................... 43 3.3 Soils ......................................................................................................................................... 44

3.3.1 Summary Soil Characteristics .................................................................................... 45 3.4 Geology ................................................................................................................................... 51

3.4.1 General ....................................................................................................................... 51 3.4.2 Shallow Bedrock ......................................................................................................... 51 3.4.3 Seismic Considerations .............................................................................................. 52 3.4.4 Geologic Hazards ....................................................................................................... 52 3.4.5 Paleontological Resource ........................................................................................... 53

3.5 Water Resources ..................................................................................................................... 54 3.5.1 Surface Water ............................................................................................................. 54 3.5.2 Water Quality .............................................................................................................. 56 3.5.3 Groundwater ............................................................................................................... 56 3.5.4 Water Supplies and Wells .......................................................................................... 61 3.5.5 Floodplains ................................................................................................................. 65 3.5.6 Wetlands and Riparian Areas ..................................................................................... 66

3.6 Terrestrial Vegetation .............................................................................................................. 67 3.6.1 Vegetative Types ........................................................................................................ 67 3.6.2 Biologically Unique Landscapes or Ecoregions ......................................................... 70 3.6.3 Sensitive, Rare, Threatened, and Endangered Plant Species ................................... 72 3.6.4 Noxious and Invasive Weeds ..................................................................................... 73

TransCanada Keystone XL Pipeline Project SER for the Nebraska Reroute

September 5, 2012

iv

3.7 Wildlife and Fisheries .............................................................................................................. 73 3.7.1 Terrestrial Wildlife Species ......................................................................................... 73 3.7.2 Big Game Species ...................................................................................................... 73 3.7.3 Small Game Species .................................................................................................. 74 3.7.4 Nongame Species ...................................................................................................... 74 3.7.5 Federal and State Protected Species ......................................................................... 74 3.7.6 Migratory Birds ........................................................................................................... 75 3.7.7 Aquatic Resources ..................................................................................................... 78 3.7.8 Sensitive Terrestrial and Aquatic Wildlife Species ..................................................... 80

3.8 Land Use ................................................................................................................................. 81 3.8.1 Land Ownership and Use ........................................................................................... 81 3.8.2 Developed Land/Residential/Commercial Areas ........................................................ 83 3.8.3 Grassland/Rangeland/Agriculture .............................................................................. 83 3.8.4 Wetlands and Waterbodies ........................................................................................ 83 3.8.5 Recreation and Special Interest Areas ....................................................................... 83 3.8.6 Noise ......................................................................................................................... 85 3.8.7 Visual Resources ........................................................................................................ 86

3.9 Cultural Resources .................................................................................................................. 86 3.10 Social and Economic Conditions ............................................................................................. 89

3.10.1 Socioeconomics ......................................................................................................... 89 3.10.2 Population and Employment....................................................................................... 89 3.10.3 Income ........................................................................................................................ 90 3.10.4 Infrastructure .............................................................................................................. 90 3.10.5 Public Services and Facilities ..................................................................................... 91 3.10.6 Fiscal Relationships .................................................................................................... 92

3.11 Public Safety ............................................................................................................................ 93 3.11.1 Operations and Maintenance ..................................................................................... 94 3.11.2 Emergency Response ................................................................................................ 96

4.0 Environmental Consequences .......................................................................................... 98 4.1 Assumptions ............................................................................................................................ 99 4.2 Guidelines ................................................................................................................................ 99 4.3 Proposed Action .................................................................................................................... 100

4.3.1 Air Quality ................................................................................................................. 100 4.3.2 Geology, Minerals, and Paleontology ....................................................................... 100 4.3.3 Soils ....................................................................................................................... 101 4.3.4 Water Resources ...................................................................................................... 103 4.3.5 Vegetation ................................................................................................................ 104 4.3.6 Wildlife, Aquatic Resources, and Sensitive Species ................................................ 105 4.3.7 Land Use and Aesthetics.......................................................................................... 106 4.3.8 Cultural Resources ................................................................................................... 107 4.3.9 Socioeconomics ....................................................................................................... 108 4.3.10 Public Health and Safety .......................................................................................... 109

4.4 Environmental Consequences Summary .............................................................................. 113

5.0 Environmental Impact Summary ..................................................................................... 115

6.0 Electric Power Lines ....................................................................................................... 119

7.0 Keystone XL Project Glossary ........................................................................................ 121

8.0 References ..................................................................................................................... 129

TransCanada Keystone XL Pipeline Project SER for the Nebraska Reroute

September 5, 2012

v

List of Appendices

Appendix A Pipeline Aerial Route Sheets ............................................................................... A-1

Appendix B USGS Location Pipeline Route Sheets ............................................................... B-1

Appendix C NDEQ Feedback Matrix ...................................................................................... C-1

Appendix D Route Change Figures ........................................................................................ D-1

Appendix E Summary of Soils ................................................................................................ E-1

Appendix F Water Resources ................................................................................................ F-1

Appendix G Noxious Weeds .................................................................................................. G-1

Appendix H Keystone Construction/Reclamation Plans and Documentation .......................... H-1

Appendix I Wildlife .................................................................................................................. I-1

Appendix J Nebraska SHPO Correspondence (Confidential) .................................................. J-1

Appendix K Cultural Resource Survey Reports (Confidential) ................................................ K-1

Appendix L CMRP ..................................................................................................................L-1

Appendix M Emergency Generator Air Permit Exemption Letter ............................................M-1

Appendix N Crude Oil Fact Sheets ......................................................................................... N-1

List of Figures

Figure ES-1 Executive Summary ............................................................................................... 6

Figure 1.1-1 Proposed Keystone XL Project Route .................................................................... 4

Figure 2.1-11 Typical Pipeline Construction Sequence ............................................................ 18

Figure 2.3-1 Northern Alternative ............................................................................................. 39

Figure 2.3-2 Clarks WHPA Alternative ..................................................................................... 40

Figure 2.3-3 Western WHPA Alternative .................................................................................. 41

Figure 3.3-1 Severe Wind Erodible Soils .................................................................................. 49

Figure 3.3-2 Valentine Soils ..................................................................................................... 50

Figure 3.5-1 Subwatershed Hydrologic Units .......................................................................... 55

Figure 3.5-2 Minimum Depth to Groundwater .......................................................................... 58

Figure 3.5-3 Maximum Depth to Groundwater ......................................................................... 59

Figure 3.5-4 Wellhead Protection Areas within One Mile .......................................................... 63

List of Tables

Table 1.4-1 Nebraska Permits, Licenses, Approval, and Consultation Requirements ................ 6

Table 2.1-1 Summary of Lands Affected .................................................................................. 10

Table 2.1-2 Counties Crossed by the Keystone XL Project ...................................................... 11

Table 2.1-3 Known Intermediate Mainline Valve Locations ...................................................... 11

TransCanada Keystone XL Pipeline Project SER for the Nebraska Reroute

September 5, 2012

vi

Table 2.1.4 Potential Nebraska Construction Camp Permit Table ............................................ 14

Table 2.1-1 Minimum Pipeline Cover ....................................................................................... 17

Table 2.1-6 Waterbodies Crossed Using the Horizontal Directional Drilling Method .................. 26

Table 2.1-7 Nebraska Construction Spreads ............................................................................ 30

Table 2.3-1 Nebraska Preferred Alternative Route Changes Between April and August 2012 ......................................................................................................... 32

Table 2.3-2 Comparison of Significant Alternative Routes ........................................................ 34

Table 2.3-3 Slope Characterizations ........................................................................................ 36

Table 3.3-1 Soil Characteristics of Concern for Potentially Affected by Project Construction and Operation (Miles) ....................................................................... 46

Table 3.3-2 Soil Characteristics of Concern Potentially Affected by Project Construction and Operation (Acres) ...................................................................... 47

Table 3.4-1 Physiographic Provinces in Nebraska ................................................................... 51

Table 3.4-2 Nebraska Landslide Incidence and Susceptibility along the Proposed Project .................................................................................................................. 52

Table 3.4-3 Geologic Units with Moderate to Very High Paleontological Sensitivity within the Project Area in Montana, South Dakota, and Nebraska ......................... 53

Table 3.5-1 Locations with Shallow Groundwater along the Preferred Alternative Route .................................................................................................................... 60

Table 3.5-2 Identified Private Wells within 100 Feet of the Preferred Alternative Route Centerline ............................................................................................................. 62

Table 3.5-3 Wellhead protection areas within 1 mile of the Preferred Alternative Route Centerline ............................................................................................................. 64

Table 3.5-4 Areas with High Risk of Flooding Crossed by the Project ...................................... 66

Table 3.5-5 Wetlands Crossed by the Preferred Alternative Route ........................................... 67

Table 3.6-1 Miles of Vegetative Communities Crossed by the Project ROW ............................ 68

Table 3.6-2 Estimated Impacts on Vegetation Communities of Conservation Concern Occurring along the Proposed Project Route ........................................................ 68

Table 3.6-3 Native Grassland Type and Quality in Nebraska ................................................... 72

Table 3.6-4 Noxious Weeds Found Along the FEIS Portion of the Preferred Alternative Route .................................................................................................. 73

Table 3.7-1 Keystone XL Pipeline – Nebraska Threatened and Endangered Species Range ................................................................................................................... 76

Table 3.7-2 Game Fishery Classification along Route .............................................................. 78

Table 3.7-3 Surface Water Classification for Nebraska ............................................................ 80

Table 3.8-1 Surface Ownership Crossed by the Proposed Project ........................................... 82

Table 3.8-2 Land Use Crossed ................................................................................................ 82

Table 3.8-3 Land Use Impacts (Acres) ..................................................................................... 83

TransCanada Keystone XL Pipeline Project SER for the Nebraska Reroute

September 5, 2012

vii

Table 3.8-4 Recreation and Special Interest Areas Crossed by the Project .............................. 84

Table 3.10-1 Potentially Affected Communities along the Project - Nebraska .......................... 89

Table 3.10-2 Socioeconomic Conditions in Affected Counties .................................................. 90

Table 3.10-3 Housing Assessment for Counties along the Preferred Route ............................. 91

Table 3.10-4 Existing Public Services and Facilities along Preferred Alternative Route ........... 92

Table 3.10-5 Estimated Property Taxes from Keystone XL Construction ................................. 92

Table 3.11-1 Physicochemical Properties of Various Crude Oils .............................................. 95

Table 5-1 Impact Summary .................................................................................................... 115

TransCanada Keystone XL Pipeline Project SER for the Nebraska Reroute

September 5, 2012

viii

List of Abbreviations and Acronyms

AHPA Archaeological and Historic Preservation Act

ARG American Research Group, Ltd

ARPA Archeological Resources Protection Act

ATWA Additional Temporary Workspace Area

BGEPA Bald and Gold Eagle Protection Act

bgs below ground surface

BA Biological Assessment

bbl Barrel

BCC Birds of Conservation Concern

bgs below ground surface

BLM Bureau of Land Management

BMP best management practice

CFR Code of Federal Regulations

CMRP Construction, Mitigation, and Reclamation Plan

CSD Conservation and Survey Well Database

CRP Conservation Reserve Program

CWA Clean Water Act

dBA decibels on the A-weighted scale

deg Degree

DEQ Department of Environmental Quality

DNR Department of Natural Resources

DOR Department of Revenue

DOS Department of State

EIS Environmental Impact Statement

EO Executive Order

ERP Emergency Response Plan

ESA Environmental Species Act

FEIS Final Environmental Impact Statement

FEMA Federal Emergency Management Agency

FHA Federal Highway Administration

FSA Farm Service Agency

HCA High Consequence Area

HDD horizontal directional drill

IMLV Intermediate main line valve

TransCanada Keystone XL Pipeline Project SER for the Nebraska Reroute

September 5, 2012

ix

IMP Integrity Management Plan

LB 4 Legislative Bill 4

LB 1161 Legislative Bill 1161

Ldn day-night sound level

Leq equivalent sound level

LUCL Land Use/Land Cover

LRP Low Revegetation Potential

M meter

MBTA Migratory Bird Treaty Act

mg/l milligrams per liter

mi mile

MLV main line valve

MOU Memorandum of Understanding

MP Mile Post

NAGPRA Native America Graves Protection and Repatriation Act

NE Nebraska

NEDEQ/NDEQ Nebraska Department of Environmental Quality

NEDNR or DNR Nebraska Department of Natural Resources

NeHBS Nebraska Historic Building Survey

NEPA National Environmental Policy Act

NGPC Nebraska Game and Parks Commission

NHPA National Historic Preservation Act of 1986

NFO Non-significant Fossil Occurrences

NPDES National Pollutant Discharge Elimination System

NPPD Nebraska Public Power District

NRCS Natural Resources Conservation Service

NREC National Rural Electric Cooperative

NRHP National Register of Historic Places

NSHS Nebraska State Historical Society

NTSB National Transportation Safety Board

OCC Operations Control Center

OPS Office of Pipeline Safety

PEM palustrine emergent wetland

PFO palustrine forested wetland

PFYC Potential Fossil Yield Classification

PHMSA Pipeline Hazardous Material Safety Administration

TransCanada Keystone XL Pipeline Project SER for the Nebraska Reroute

September 5, 2012

x

PMP Pipeline Maintenance Program

PRB Power Review Board

PS Pump Station

PSS Palustrine Scrub Shrub Wetland

PWS Public Water Supply

R-EMAP Regional Environmental Monitoring and Assessment Program

ROW Right-of-Way

RWBC Rainwater Basin Complex

RV

SCADA

Recreational Vehicle

Supervisory Control and Data Acquisition

sec section

SEIS Supplemental Environmental Impact Statement

SER Supplemental Environmental Report

SFL Significant Fossil Locales

SFW State Fire Marshal

SHPO State Historic Preservation Officer

SPCC Spill Prevention, Control, and Countermeasure

SPP Southwest Power Pool

SSURGO Soil Survey Geographic Database

SWPA Source Water Protection Area

T&E Threatened and Endangered Species

TSS Total suspended Solids

TWAs Temporary Workspace Areas

USA Unusually Sensitive Area

USACE U.S. Army Corps of Engineers

USDA U.S. Department of Agriculture

USDOT/DOT U.S. Department of Transportation

USEPA U.S. Environmental Protection Agency

USFWS U.S. Fish and Wildlife Service

USGS U.S. Geological Survey

WEG Wind Erodibility Group

WHPA Well Head Protection Area

WRP Wetland Reserve Program

TransCanada Keystone XL Pipeline Project SER for the Nebraska Reroute

September 5, 2012

ES-1

Executive Summary

This Supplemental Environmental Report (SER) is filed with the Nebraska Department of

Environmental Quality (NDEQ) as the next step in the State’s review of a proposed reroute of

the Keystone XL Pipeline Project (Project) to avoid the Sandhills in Nebraska. The SER is also

being filed with the US Department of State (DOS) as part of the federal review of the proposed

Project. The preferred alternative route addressed in this SER is intended to be included as

part of the DOS National Environmental Policy Act (NEPA) review process.1 The SER

represents an important part of Keystone’s ongoing effort to meet its commitment to address the

State’s concerns regarding the route of the pipeline.

In response to feedback received, the SER updates the preferred alternative route of the

Keystone XL Pipeline around the Sandhills in Nebraska. As shown in Figure ES-1 and

discussed below, the updated route passes through portions of Keya Paha, Boyd, Holt,

Antelope, Boone, Nance, Merrick, Polk, York, Fillmore, Saline and Jefferson Counties.

The SER also provides updated information regarding proposed construction in Nebraska and

responds to requests for additional information about the project from the NDEQ in the

Feedback Report the agency issued on July 17, 2012.

The SER provides information to allow NDEQ to conduct an analysis of the environmental,

economic, social, and other impacts associated with the proposed route and route alternatives

in Nebraska as allowed by state statute (Nebraska Statutes, Sec. 57-1503).

Background

In September 2008, Keystone filed an application with the DOS for a Presidential Permit

authorizing the construction and operation of the proposed Keystone XL Pipeline Project at the

U.S.-Canada border crossing location in Montana. Upon receipt of that application, DOS led a

comprehensive, three-year environmental review of all aspects of the original Keystone XL

Project.

The environmental review culminated August 26, 2011 with the release of the Final

Environmental Impact Statement (FEIS) for the Keystone XL Project. This review was the most

detailed and comprehensive environmental review ever undertaken for a cross border crude oil

pipeline. The FEIS concluded that “[t]he analysis of potential impacts associated with

construction and normal operation of the proposed Project suggests that there would be no

significant impacts to most resources along the proposed Project corridor…”. (FEIS at p.3.15-1).

In November 2011, the DOS determined that, in order to make the required National Interest

Determination with respect to the original Keystone XL Pipeline Project, it was necessary to

________________________ 1 The DEQ may “Evaluate any route for an oil pipeline within, through or across the state and submitted by a pipeline

carrier for the stated purpose of being included in a federal agency's or agencies' National Environmental Policy Act

review process.”(Nebraska Statutes, Sec. 57-1503.)

TransCanada Keystone XL Pipeline Project SER for the Nebraska Reroute

September 5, 2012

ES-2

conduct an in-depth assessment of potential alternative routes that would avoid the Sandhills

region in Nebraska.

Despite the successful completion of the NEPA review process, which found that Keystone

could be safely constructed and operated as proposed, Keystone agreed to reroute the

proposed project in Nebraska, in response to public concerns, to move it outside the Sandhills.

Because the route had been reviewed and approved by DOS, Montana, and South Dakota, the

entry point of the project in Nebraska and the terminus of the project at Steele City would not

change.

Subsequently, the Nebraska Legislature created a framework for the State review of proposed

routes of major oil pipelines. As a result, the NDEQ was authorized to review the proposed

reroute of this Project in the State of Nebraska and to coordinate with federal agencies in the

preparation of a Supplemental Environmental Impact Statement on the proposed reroute. To

fulfill its responsibilities, NDEQ developed a process for the review, providing opportunities for

public input and complying with the statutory requirements that were developed by the

Legislature.

In December, NDEQ issued an ecoregion map created by state and federal agencies

delineating the Sandhills area. Keystone then developed corridors for the reroute in Nebraska

that avoided the Sandhills, as delineated by NDEQ. In April, Keystone submitted a report

assessing those alternative route corridors and proposing a preferred alternative route corridor.

The preferred route corridor was selected to avoid the Sandhills while balancing other routing

and constructability criteria.

Upon receipt of Keystone’s April reroute report, DEQ posted the document online and initiated

an extensive public review process, which included informational meetings on the proposed

reroute corridors, as well as a process for submitting written comments to the agency.

In July 2012, after reviewing Keystone’s April reroute report and studying the public’s

comments, the NDEQ provided a Feedback Report to Keystone that included a summary of

public and agency comments on the proposed reroute.

This SER responds to the NDEQ Feedback Report, as well as additional feedback received

from stakeholders and information gathered during Keystone’s further on-the-ground

evaluations. The SER identifies a revised preferred alternative route that includes a number of

minor route refinements and three significant route alternatives. While the proposed pipeline can

be built and operated safely on the previously identified corridor, these modifications are

responsive to feedback received and further reduce impacts of construction and operation. The

three more significant route alternatives are discussed below.

Northern Alternative

As noted, in December 2011, the NDEQ defined the areas characterized as Sandhills that

Keystone was to avoid. Nonetheless, numerous comments from landowners and further

consideration by the NDEQ suggested that there are other areas that exhibit similar

TransCanada Keystone XL Pipeline Project SER for the Nebraska Reroute

September 5, 2012

ES-3

characteristics to the Sandhills, even though they are outside of the area delineated by

NDEQ. These areas include fragile sandy soils similar to the Sandhills. The previously

identified route corridor is constructible using the successful and commonly used techniques for

construction in sandy soils and areas of shallow groundwater tables. However, in response to

the NDEQ’s feedback and comments received, Keystone developed the Northern Alternative to

avoid these features. This preferred alternative, compared to the April 2012 preferred route

corridor, is depicted in Figure 2.3-1.

Clarks Alternative

During the public comment period, and through NDEQ review, commenters expressed concern

that the April 2012 preferred route corridor would cross an area up-gradient of the Clarks

Wellhead Protection Area (WHPA) and where the depth to groundwater is shallow. The well

within the WHPA is the source of the town’s water supply. This section of the April 2012

preferred route incorporated the route that was included in the 2011 FEIS. The NDEQ

Feedback Report suggested that Keystone consider routing the pipeline down gradient of the

well head protection area (WHPA) for the town of Clarks. These comments were made

notwithstanding that the WHPA is modeled to provide a 20 year protection buffer around the

well intake, and that the FEIS route was approximately 1.70 miles outside of the WHPA buffer

boundary.

In response to the feedback received, Keystone has developed an alternative route – the

“Clarks Alternative” – to the east of the town of Clarks, in order to locate the pipeline down-

gradient of the WHPA. The Clarks Alternative places the pipeline 3.50 miles down-gradient

(east) of the WHPA boundary.

Western Alternative

After the FEIS was published in August, 2011, a new WHPA was established for the city of

Western that extended further west, overlapping the FEIS route. Although PHMSA allows

pipelines like Keystone to cross WHPAs with special precautions and although Keystone will

implement such precautions across the Project, Keystone examined an alternative to move the

route west, out of the WHPA. The alternative is depicted in Figure ES-1 and 2.3-3.

Response to Requests for Additional Information

The NDEQ Feedback Report summarized the public comments received on Keystone’s April

2012 reroute report. Keystone’s responses to the summarized public comments, as well as to

specific NDEQ comments and questions, are presented in Appendix C of this SER. Many of

these questions have been fully addressed previously in the FEIS, which has been incorporated

by reference in Keystone’s updated Presidential Permit application. The FEIS is available online

at http://www.keystonepipeline-xl.state.gov/ under “Archive” and “State Department

Documents”.

TransCanada Keystone XL Pipeline Project SER for the Nebraska Reroute

September 5, 2012

ES-4

Pipeline Safety

The US Department of Transportation (DOT) is mandated to regulate pipeline safety under

federal law (Title 49, USC Chapter 601) and does so through the Pipeline and Hazardous

Materials Safety Administration (PHMSA). PHMSA is responsible for protecting the American

public and the environment by ensuring the safe and secure movement of hazardous materials

to industry and consumers by all transportation modes, including the nation‘s pipelines. Through

PHMSA, the DOT develops and enforces regulations for the safe, reliable, and environmentally

sound operation of the nation‘s 2.3-million-mile pipeline transportation system and the nearly 1

million daily shipments of hazardous materials by land, sea, and air. PHMSA administers the

national regulatory program to ensure the safe transportation of hazardous liquids, including

crude oil, by pipeline. PHMSA develops regulations that address safety in the design,

construction, testing, operation, maintenance, and emergency response for hazardous liquid

pipelines and related facilities. PHMSA is responsible for regulations that require safe

operations of hazardous liquid pipelines to protect human health and the environment from

unplanned pipeline incidents.

Pipelines that carry gasoline, diesel fuel, crude oil or other hazardous liquids must implement

additional safety measures if they cross a particularly sensitive area such as the WHPA for a

municipal drinking water supply. (More information is available in the FEIS, Section 3.13.1.1.)

According to the FEIS, the incorporation of the 57 additional safety measures to which Keystone

has committed “would result in a Project that would have a degree of safety over any other

typically constructed domestic oil pipeline system under current code and a degree of safety

along the entire length of the pipeline system similar to that which is required in High

Consequence Areas (HCAs) as defined in 49 CFR 195.450.” (FEIS, Sec. 3.13.1, page 3.13-4.)

PHMSA has the legal authority to inspect and enforce any items contained in a pipeline

operator‘s procedural manual for operations, maintenance, and emergencies, and would

therefore have the legal authority to inspect and enforce the 57 Special Conditions if the Project

is approved.

According to Nebraska law, “[t]he Legislature acknowledges and respects the exclusive federal

authority over safety issues established by the federal law, the Pipeline Safety Act of 1994, 49

U.S.C. 60101 et seq., and the express preemption provision stated in that act.” (Neb. Rev. Stat.

57-1402(2)).

Other Changes

The Keystone XL Pipeline Project passes through areas with very low density population and a

low availability of commercial, temporary housing facilities. In Montana and South Dakota,

Keystone has planned to use temporary camps to house workers and minimize adverse impacts

of a temporary population increase. In northern Nebraska, conditions are similar, though to a

lesser degree. Consequently, Keystone is investigating the possibility of building a temporary

Contractor’s Camp in northern Nebraska that would alleviate the lack of short term housing

during construction.

TransCanada Keystone XL Pipeline Project SER for the Nebraska Reroute

September 5, 2012

ES-5

In Conclusion

This SER is consistent with Keystone’s commitment to reroute the project in Nebraska to avoid

the Sandhills. In addition, it is responsive to feedback received from the public and from the

NDEQ. The analysis presented in this SER supports NDEQ’s review and approval of a preferred

route in Nebraska.

Although the pipeline can be built and operated safely on routes that have already been studied

and in many cases for which landowner agreement has already been achieved and easements

purchased, Keystone has again agreed to modify its route to accommodate the considerations

raised in the State Feedback Report.

Nebraska

Kansas

South Dakota

Iowa

Dakota

Antelope

Furnas Thayer

Wayne

Knox

Nance

Lancaster

KeyaPaha

Cherry

Pierce

Colfax

Merrick

WheelerLoup

Buffalo

Rock

Madison

Nuckolls

Dodge

Seward

Otoe

Holt

Sherman

Dawson

Saunders

Garfield

Platte

Blaine

Boone

Cass

Fillmore

Cedar

Burt

Frontier Adams

Boyd

PolkHoward

Valley

Phelps

Stanton

Gage

Clay SalineGosper

Harlan Jefferson

Hamilton

Dixon

Cuming

Kearney

Greeley

Butler

Custer

Thurston

Webster

Brown

Hall York

Franklin

LEGENDVICINITY MAP

0 30 6015 Miles

KEYSTONE XL PROJECTFIGURE ES-1

EXECUTIVE SUMMARY(NEBRASKA)

Energy Services Inc.PREPARED BYexp

ÁRE-ROUTE PORTION OF THE PREFERRED ALTERNATIVE ROUTE IN NEBRASKAFEIS PORTION OF PREFERRED ALTERNATIVE ROUTE IN NEBRASKAAPRIL 2012 CORRIDORORIGINAL FEIS ROUTESTATE BOUNDARYCOUNTY BOUNDARY

Á

Steele City"

CLARKSALTERNATIVE

NORTHERNALTERNATIVE

WESTERNALTERNATIVE