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Keystone XL pipeline proposal rejected
A statement released by the department says it doesn't preclude TransCanada applying again with a different route.
The Canadian government wanted to see the pipeline go ahead.
A statement released by U.S. President Barack Obama put the blame on Congressional Republicans, who inserted a 60-day deadline for a decision on the pipeline in a December 2011 bill to continue U.S. payroll tax cuts.
"The rushed and arbitrary deadline insisted on by Congressional Republicans prevented a full assessment of the pipeline’s impact, especially the health and safety of the American people, as well as our environment," Obama said in the statement.
"This announcement is not a judgment on the merits of the pipeline, 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."
A spokesman for Prime Minister Stephen Harper said on Twitter that Harper spoke to Obama earlier Wednesday afternoon.
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