(The Canadian Press) Nebraska Gov. Dave Heineman has approved a new route for the Keystone XL oil pipeline that avoids the state's environmentally sensitive Sandhills region.
Heineman sent a letter Tuesday to President Barack Obama confirming that he would allow the controversial project to proceed in his state.
The pipeline has faced strong resistance in Nebraska from a coalition of landowners and environmental groups who claim it would contaminate the Ogallala aquifer, a massive groundwater supply.
Canadian pipeline developer TransCanada Corp. (TSX: T.TRP, Stock Forum) and some workers' unions say the project is safe and will create thousands of jobs.
The original route would have run the pipeline through a region of erodible, grass-covered sand dunes. The new route skirts that area.
TransCanada shares eased 0.81% to $48.71, leaving the company with a market cap of $34.3 billion, based on 705 million shares outstanding. The 52-week range is $49.12 and $41.