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Obama Administration Denies Keystone XL Oil Pipeline Permit

from the Los Angeles Times (Registration Required)

The Obama administration denied a permit for the controversial Keystone XL oil pipeline from Canada, leaving the door open for the builder to reapply this year but prolonging a bitter political fight that has raged for months and energized each party's political base.

The State Department, responding to a 60-day deadline Congress imposed in late December, said Wednesday that it did not "have sufficient time to obtain the information necessary to assess whether the project, in its current state, is in the national interest."

For Republicans, the oil industry and the U.S. Chamber of Commerce, Keystone has become a one-word campaign slogan: synonymous with the themes of regulatory overreach and environmental activism they have tried to pin on President Obama. For environmentalists and many other Democratic constituencies, the administration's willingness to deny the permit has become a test of whether Obama has the resolve to stand up to big business.

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