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A map of the proposed pipeline

US President Barack Obama announced a rejection of an oil pipeline that would have run through Southwest Saskatchewan.

 

The US state department has formally recommended the rejection of the 2,700km Keystone XL pipeline, saying it had insufficient time to review the plans.

It will allow TransCanada to resubmit its application to build the pipeline from Alberta to Texas.

The project has been delayed amid objections by environmental groups and the US state of Nebraska.

"This announcement is not a judgment on the merits of the pipeline," said Obama. "But the arbitrary nature of a deadline that prevented the state department from gathering the information necessary to approve the project and protect the American people."

Prime Minister Stephen Harper spoke to Mr Obama and expressed his "profound disappointment" with the decision.

Saskatchewan Premier Brad Wall has previously expressed his support for the pipeline. The Town of Shaunavon also noted that its construction would create economic activitiy in our region.