U.S. Mulls New Route for Canada Oil Pipeline

WASHINGTON -- A U.S. official says the State Department is considering a plan that would reroute the proposed Keystone XL oil pipeline from Canada away from environmentally sensitive areas of Nebraska, an action that could delay a final decision on the project until after the 2012 election.

The official told The Associated Press on Wednesday that rerouting the pipeline was one issue that came up during public meetings. The official asked not to be identified because no decision has been made.

TransCanada is seeking to build the $7 billion pipeline to carry oil from Alberta, Canada, to refineries in Texas. A portion would pass through Nebraska's Sandhills region and the massive Ogallala aquifer, which supplies water to eight states.