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Not according to the LA Times - it seems just to be a postponing issuing the permit and not a rejection.

Keystone XL pipeline: Obama administration to deny Keystone XL oil pipeline permit - latimes.com

The Obama administration has decided that it will not issue a permit before Feb. 21 for the controversial Keystone XL oil pipeline from Canada, according to people with knowledge of the decision.

The announcement, which could come as early as Wednesday, comes in response to a 60-day deadline Congress imposed in late December on the decision-making process for the permit as part of a deal to extend a payroll-tax break and unemployment benefits for two months.  

Today's decision, expected from the State Department, would make official what the administration has said from the outset: that under current law, it cannot accelerate the permitting process, especially in light of the need for additional environmental reviews of a new path for the pipeline through Nebraska.
by Fran (fran at eurotrib dot com) on Thu Jan 19th, 2012 at 03:15:16 AM EST
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