Beginning of Story Content The leaders of Germany and France, the eurozone’s two biggest economies, say they have reached agreement on strengthening Europe’s shaky banking sector. German Chancellor Angela Merkel said she and French President Nicolas Sarkozy “are determined to do the necessary to ensure the recapitalization of Europe’s banks.” Merkel spoke after talks with Sarkozy at Berlin’s chancellery Sunday aimed at forging an agreement ahead of a summit of the European Union’s 27 leaders later this month. Belgian Finance Minister Didier Reynders, left, and Prime Minister Yves Leterme address a joint news conference after a cabinet meeting this weekend in Brussels. The governments of France, Belgium and Luxembourg said Sunday they had approved a plan for the future of embattled Franco-Belgian bank Dexia. Francois Lenoir/ReutersThe German chancellor has insisted that the Oct. 17-18 summit in Brussels must send a clear signal on the issue in a bid to restore market confidence. Germany and France, which together represent about half of the 17-nation currency zone’s economic output, regularly hold talks before EU summits to chart out joint positions. The IMF has said banks across the continent might need up to $267 billion US in christmas new capital. The EU disputes the IMF’s estimate, but has been warning that lending between banks and from banks to businesses is threatening to freeze up. Some analysts fear that a Greek default could cause a severe credit squeeze that would even threaten banks not exposed directly to Greece’s debt. Banks are afraid to lend to each other for fear they won’t get paid back. The credit freeze following the collapse of U.S. investment bank Lehman Brothers in 2008 choked off lending to the wider economy and caused a deep recession. Merkel insisted this week that the eurozone should not hesitate to bolster its banks if experts conclude it to be necessary, because failing to do could lead to “vastly higher damage.” Deal reached for Dexia restructuring It came after he governments of France, Belgium and Luxembourg said Sunday they had approved a plan for the future of embattled bank Dexia. In a three-sentence statement issued by the Belgian prime minister’s office, they said they supported a proposal by the bank’s management that will be submitted to its board of directors.French President Nicolas Sarkozy and German Chancellor Angela Merkel reached an agreement on bolstering anniversary gifts the European Union’s banking sector ahead of a summit of the EU’s 27 leaders later this month. Patrick Kovarik/Reuters The board is scheduled to hold a crisis meeting Sunday afternoon in Brussels amid reports that the bank might be split up. A bank spokesman said a news conference was expected Sunday evening or Monday morning. The government statement said the “suggested solution” had been “the result of intense consultations with all partners involved” — which would include the three countries. France and Belgium became part owners of the bank during a $7.8 billion 2008 bailout. They have promised to ensure that no Dexia depositors lose money. Luxembourg holds a smaller stake. After Dexia’s shares plunged last week amid fears it could go bankrupt, the French and Belgian governments stepped in and guaranteed its financing and deposits. The bank said in a statement Friday that trading in its shares would remain frozen until it could “communicate more precisely on the various choices and options concerning the future of the group.” The bank has significant exposure to Greek debt, and there are fears Greece may default in some fashion. © The Associated Press, 2011 Accessibility Links Merkel, Sarkozy reach pact on EU bank sector

Beginning of Story Content The leaders of Germany and France, the eurozone’s two biggest economies, say they have reached agreement on strengthening Europe’s shaky banking sector. German Chancellor Angela Merkel said she and French President Nicolas Sarkozy “are determined to do the necessary to ensure the recapitalization of Europe’s banks.” Merkel spoke after talks with Sarkozy at Berlin’s chancellery Sunday aimed at forging an agreement ahead of a summit of the European Union’s 27 leaders later this month. Belgian Finance Minister Didier Reynders, left, and Prime Minister Yves Leterme address a joint news conference after a cabinet meeting this weekend in Brussels. The governments of France, Belgium and Luxembourg said Sunday they had approved a plan for the future of embattled Franco-Belgian bank Dexia. Francois Lenoir/ReutersThe German chancellor has insisted that the Oct. 17-18 summit in Brussels must send a clear signal on the issue in a bid to restore market confidence. Germany and France, which together represent about half of the 17-nation currency zone’s economic output, regularly hold talks before EU summits to chart out joint positions. The IMF has said banks across the continent might need up to $267 billion US in christmas new capital. The EU disputes the IMF’s estimate, but has been warning that lending between banks and from banks to businesses is threatening to freeze up. Some analysts fear that a Greek default could cause a severe credit squeeze that would even threaten banks not exposed directly to Greece’s debt. Banks are afraid to lend to each other for fear they won’t get paid back. The credit freeze following the collapse of U.S. investment bank Lehman Brothers in 2008 choked off lending to the wider economy and caused a deep recession. Merkel insisted this week that the eurozone should not hesitate to bolster its banks if experts conclude it to be necessary, because failing to do could lead to “vastly higher damage.” Deal reached for Dexia restructuring It came after he governments of France, Belgium and Luxembourg said Sunday they had approved a plan for the future of embattled bank Dexia. In a three-sentence statement issued by the Belgian prime minister’s office, they said they supported a proposal by the bank’s management that will be submitted to its board of directors.French President Nicolas Sarkozy and German Chancellor Angela Merkel reached an agreement on bolstering anniversary gifts the European Union’s banking sector ahead of a summit of the EU’s 27 leaders later this month. Patrick Kovarik/Reuters The board is scheduled to hold a crisis meeting Sunday afternoon in Brussels amid reports that the bank might be split up. A bank spokesman said a news conference was expected Sunday evening or Monday morning. The government statement said the “suggested solution” had been “the result of intense consultations with all partners involved” — which would include the three countries. France and Belgium became part owners of the bank during a $7.8 billion 2008 bailout. They have promised to ensure that no Dexia depositors lose money. Luxembourg holds a smaller stake. After Dexia’s shares plunged last week amid fears it could go bankrupt, the French and Belgian governments stepped in and guaranteed its financing and deposits. The bank said in a statement Friday that trading in its shares would remain frozen until it could “communicate more precisely on the various choices and options concerning the future of the group.” The bank has significant exposure to Greek debt, and there are fears Greece may default in some fashion. © The Associated Press, 2011 Accessibility Links Merkel, Sarkozy reach pact on EU bank sector

Beginning of Story Content Air Canada’s flight attendants have rejected a tentative deal reached between their union and java the airline and are poised to go on strike immediately after midnight Thursday morning. “We ask the federal developer government, in the strongest possible terms, to respect our right to collective bargaining and not intervene unilaterally in this dispute”, Jeff Taylor, president of the union branch for Air Canada flight attendants, said in a statement java developer Sunday night. The Canadian Union of Public Employees represents 6,500 flight attendants at the carrier. More to come Accessibility Links Air Canada union rejects deal, ready to strike

Beginning of Story Content Air Canada’s flight attendants have rejected a tentative deal reached between their union and java the airline and are poised to go on strike immediately after midnight Thursday morning. “We ask the federal developer government, in the strongest possible terms, to respect our right to collective bargaining and not intervene unilaterally in this dispute”, Jeff Taylor, president of the union branch for Air Canada flight attendants, said in a statement java developer Sunday night. The Canadian Union of Public Employees represents 6,500 flight attendants at the carrier. More to come Accessibility Links Air Canada union rejects deal, ready to strike

Beginning of Story Content Activists are planning an occupation of Toronto’s financial district as well as other Canadian cities following in the footsteps of protesters currently camped out on Wall Street in New York City. A group calling itself Occupy Toronto Market Exchange has launched a java website to organize a march on Bay Street beginning Oct. 15. That’s a Saturday, when the stock exchange is closed and few people are working in Canada’s financial capital. About 830 people on Facebook have replied they would attend the event in Toronto. P.O.V.Do these kind developer of protests work? Occupations are also planned in the streets in other Canadian cities, including Vancouver, Montreal and Calgary. South of the border, protesters speaking out against corporate greed and other grievances remain in Manhattan’s financial district. They are holding their ground even after more than 700 of them were arrested Saturday during a march on the Brooklyn Bridge in a tense confrontation with police. The group Occupy Wall Street has been camped out in a plaza for nearly two weeks staging various marches, and had orchestrated an impromptu trek to Brooklyn. java developer Protesters are speaking out against corporate greed, government bailouts, and income inequality amid high unemployment and the prospect of another recession. Canada’s economic growth has been slowing, leading some to believe this country could also be headed for recession. © The Canadian Press, 2011 Accessibility Links Occupy Wall St. protest to march into Canada

Beginning of Story Content Activists are planning an occupation of Toronto’s financial district as well as other Canadian cities following in the footsteps of protesters currently camped out on Wall Street in New York City. A group calling itself Occupy Toronto Market Exchange has launched a java website to organize a march on Bay Street beginning Oct. 15. That’s a Saturday, when the stock exchange is closed and few people are working in Canada’s financial capital. About 830 people on Facebook have replied they would attend the event in Toronto. P.O.V.Do these kind developer of protests work? Occupations are also planned in the streets in other Canadian cities, including Vancouver, Montreal and Calgary. South of the border, protesters speaking out against corporate greed and other grievances remain in Manhattan’s financial district. They are holding their ground even after more than 700 of them were arrested Saturday during a march on the Brooklyn Bridge in a tense confrontation with police. The group Occupy Wall Street has been camped out in a plaza for nearly two weeks staging various marches, and had orchestrated an impromptu trek to Brooklyn. java developer Protesters are speaking out against corporate greed, government bailouts, and income inequality amid high unemployment and the prospect of another recession. Canada’s economic growth has been slowing, leading some to believe this country could also be headed for recession. © The Canadian Press, 2011 Accessibility Links Occupy Wall St. protest to march into Canada

Beginning of Story Content Germany kept alive hopes that the 17-nation euro currency can survive the sprawling debt crisis when lawmakers in Europe’s largest economy voted overwhelmingly on Thursday in favor of expanding the powers of the eurozone’s bailout fund. The vote strengthened Chancellor Angela Merkel’s center-right coalition, which had struggled to win support from a bloc of rebellious members, and could bolster her ability to negotiate new European crisis measures.German Chancellor Angela Merkel has said approving the beefed-up bailout fund was “of the very, very greatest significance.” (Tobias Schwarz/Reuters) While many investors and experts believe new steps will be required in Europe, such as letting Greece write off more of its debt pile, Germany’s approval of the fund’s new powers and scope was necessary to avoid a new bout of massive market turmoil. “The support of the Bundestag is an important step for stabilizing the eurozone,” Michael Kemmer, head of Germany’s Bank Federation, told the news agency dapd. “With that, they have set a course that leads out of the debt crisis.” The €440 billion ($600 billion US) fund will be able to buy government bonds and lend money to banks and governments before they are in a full-blown crisis, making Europe’s response to market jitters more rapid and pre-emptive. Germany, which pays the lion’s share of European bailouts, became the 13th member of the eurozone to support the expansion of the rescue fund, the so-called European Financial Stability Facility, or EFSF. Cyprus also passed the proposed expansion on Thursday. More countries yet to vote Austria’s parliament is widely expected to pass the measure on Friday, the same day Germany’s upper house of parliament is set to finalize Thursday’s vote, while the Netherlands is expected to approve it in the first week of October. The biggest remaining hurdle is the final country to vote —Slovakia — where the government will not have enough support to pass it if the leader of the junior coalition Freedom and Solidarity party follows through with threats to vote against the fund’s expansion. Its parliament is to vote later in October. In Berlin, 523 lawmakers in parliament, the Bundestag, voted in favor of expanding clocks German participation to guarantee loans of up to €211 billion, compared with €123 billion so far. Eighty-five voted against it and three abstained. “It was a strong statement of Angela Merkel’s position. She has the backing and the support of the coalition and she is able to negotiate on the European level,” Peter Altmeier, the parliamentary whip for Merkel’s Christian Democrats, said after the tally was announced. Markets appeared calmer even before Thursday’s votes, following weeks of turbulence triggered by uncertainty over Germany’s position on the fund. The euro also traded slightly higher. “The overwhelming majority in the Bundestag is a good sign and will hopefully mark a step change in German commitment to bringing the spiraling crisis under control,” said Sony Kapoor of the Re-Define economic policy think tank. The lingering problem, however, is that investors are resigned to the fact that Greece will have to default — that is, impose tougher losses on its bondholders. French President Nicolas Sarkozy will meet with Greek Prime Minister George Papandreou in Paris on Friday to discuss the debt crisis, the president’s office said. Papandreou met Germany’s Merkel for similar talks Tuesday. Germany and France combined represent about half of the 17-nation eurozone’s economic output.The bailout fund expansion has to be ratified by all 17 eurozone nations to take force. (Paul Hanna/Reuters) Greece was saved from default by an initial €110 billion ($150 billion) bailout in May last year before the EFSF was established to help any other countries in trouble. A planned second rescue package for Greece this year includes a voluntary participation by private bondholders, who agreed to write off about 20 percent on their Greek debt holdings. Many experts say those writedowns should be closer to 50 per cent. The debate among European leaders now is whether to allow such a move under controlled conditions, providing help to banks that may take heavy losses on Greek bonds they hold. Germany and the Netherlands are open to the option, with Merkel suggesting this week that Greece’s second bailout deal might have to be renegotiated. France and the European Central Bank, however, oppose the idea. Inspectors return Greece’s international debt inspectors gift ideas returned to Athens on Thursday to complete a review. Merkel has said that any new decisions would depend upon the results of the inspectors’ report, which is not due for days. Forging consensus over new measures — particularly something as delicate as imposing more severe losses on Greece’s creditors — will likely be very difficult, however. Indeed, the parliamentary debate on the EFSF in Berlin on Thursday was a feisty three-hour long affair, reflecting how high tensions in Merkel’s coalition were running over the idea of providing more backing to the eurozone’s weakest members. Frank Schaeffler, a dissenter from the junior coalition partner, argued that bailout measures have worsened Greece’s economic situation. “Despite all arguments, the first bailout did not make the situation for Greece better, but worse,” said Schaeffler, a Free Democrat. “Expanding the fund will make the situation even worse.” Schaeffler and others had long expressed their concerns, and opposition leaders had said going in to the vote that if Merkel’s coalition had to rely on their votes, it would be a sign that her strife-prone and increasingly unpopular government is finished. Yet after a night of intense lobbying, Merkel’s camp was able to secure a majority of 315 — enough to have passed the measure even without support from the opposition parties. “This shows the clear determination of the coalition on this issue,” Rainer Bruederle, the Free Democrats’ parliamentary leader. “We have made an important decision for Europe.” Any future changes to the current fund will also require parliamentary approval and maintaining that determination will be crucial to making swift, effective decisions to combat the crisis. In addition, the Bundestag will face another major vote early next year on the fund’s permanent replacement, the European Stability Mechanism, which is due to take effect in 2013. Schaeffler has already vowed to rally his party to reject the ESM. Party leaders insist they are not worried by Schaeffler’s plans, but many analysts have noted Merkel will have to hold her majority together, or Thursday may have only been the first in a series of nail-biting parliamentary showdowns over shoring up the euro. © The Associated Press, 2011 Accessibility Links Euro fund expansion passed by German parliament

Beginning of Story Content Germany kept alive hopes that the 17-nation euro currency can survive the sprawling debt crisis when lawmakers in Europe’s largest economy voted overwhelmingly on Thursday in favor of expanding the powers of the eurozone’s bailout fund. The vote strengthened Chancellor Angela Merkel’s center-right coalition, which had struggled to win support from a bloc of rebellious members, and could bolster her ability to negotiate new European crisis measures.German Chancellor Angela Merkel has said approving the beefed-up bailout fund was “of the very, very greatest significance.” (Tobias Schwarz/Reuters) While many investors and experts believe new steps will be required in Europe, such as letting Greece write off more of its debt pile, Germany’s approval of the fund’s new powers and scope was necessary to avoid a new bout of massive market turmoil. “The support of the Bundestag is an important step for stabilizing the eurozone,” Michael Kemmer, head of Germany’s Bank Federation, told the news agency dapd. “With that, they have set a course that leads out of the debt crisis.” The €440 billion ($600 billion US) fund will be able to buy government bonds and lend money to banks and governments before they are in a full-blown crisis, making Europe’s response to market jitters more rapid and pre-emptive. Germany, which pays the lion’s share of European bailouts, became the 13th member of the eurozone to support the expansion of the rescue fund, the so-called European Financial Stability Facility, or EFSF. Cyprus also passed the proposed expansion on Thursday. More countries yet to vote Austria’s parliament is widely expected to pass the measure on Friday, the same day Germany’s upper house of parliament is set to finalize Thursday’s vote, while the Netherlands is expected to approve it in the first week of October. The biggest remaining hurdle is the final country to vote —Slovakia — where the government will not have enough support to pass it if the leader of the junior coalition Freedom and Solidarity party follows through with threats to vote against the fund’s expansion. Its parliament is to vote later in October. In Berlin, 523 lawmakers in parliament, the Bundestag, voted in favor of expanding clocks German participation to guarantee loans of up to €211 billion, compared with €123 billion so far. Eighty-five voted against it and three abstained. “It was a strong statement of Angela Merkel’s position. She has the backing and the support of the coalition and she is able to negotiate on the European level,” Peter Altmeier, the parliamentary whip for Merkel’s Christian Democrats, said after the tally was announced. Markets appeared calmer even before Thursday’s votes, following weeks of turbulence triggered by uncertainty over Germany’s position on the fund. The euro also traded slightly higher. “The overwhelming majority in the Bundestag is a good sign and will hopefully mark a step change in German commitment to bringing the spiraling crisis under control,” said Sony Kapoor of the Re-Define economic policy think tank. The lingering problem, however, is that investors are resigned to the fact that Greece will have to default — that is, impose tougher losses on its bondholders. French President Nicolas Sarkozy will meet with Greek Prime Minister George Papandreou in Paris on Friday to discuss the debt crisis, the president’s office said. Papandreou met Germany’s Merkel for similar talks Tuesday. Germany and France combined represent about half of the 17-nation eurozone’s economic output.The bailout fund expansion has to be ratified by all 17 eurozone nations to take force. (Paul Hanna/Reuters) Greece was saved from default by an initial €110 billion ($150 billion) bailout in May last year before the EFSF was established to help any other countries in trouble. A planned second rescue package for Greece this year includes a voluntary participation by private bondholders, who agreed to write off about 20 percent on their Greek debt holdings. Many experts say those writedowns should be closer to 50 per cent. The debate among European leaders now is whether to allow such a move under controlled conditions, providing help to banks that may take heavy losses on Greek bonds they hold. Germany and the Netherlands are open to the option, with Merkel suggesting this week that Greece’s second bailout deal might have to be renegotiated. France and the European Central Bank, however, oppose the idea. Inspectors return Greece’s international debt inspectors gift ideas returned to Athens on Thursday to complete a review. Merkel has said that any new decisions would depend upon the results of the inspectors’ report, which is not due for days. Forging consensus over new measures — particularly something as delicate as imposing more severe losses on Greece’s creditors — will likely be very difficult, however. Indeed, the parliamentary debate on the EFSF in Berlin on Thursday was a feisty three-hour long affair, reflecting how high tensions in Merkel’s coalition were running over the idea of providing more backing to the eurozone’s weakest members. Frank Schaeffler, a dissenter from the junior coalition partner, argued that bailout measures have worsened Greece’s economic situation. “Despite all arguments, the first bailout did not make the situation for Greece better, but worse,” said Schaeffler, a Free Democrat. “Expanding the fund will make the situation even worse.” Schaeffler and others had long expressed their concerns, and opposition leaders had said going in to the vote that if Merkel’s coalition had to rely on their votes, it would be a sign that her strife-prone and increasingly unpopular government is finished. Yet after a night of intense lobbying, Merkel’s camp was able to secure a majority of 315 — enough to have passed the measure even without support from the opposition parties. “This shows the clear determination of the coalition on this issue,” Rainer Bruederle, the Free Democrats’ parliamentary leader. “We have made an important decision for Europe.” Any future changes to the current fund will also require parliamentary approval and maintaining that determination will be crucial to making swift, effective decisions to combat the crisis. In addition, the Bundestag will face another major vote early next year on the fund’s permanent replacement, the European Stability Mechanism, which is due to take effect in 2013. Schaeffler has already vowed to rally his party to reject the ESM. Party leaders insist they are not worried by Schaeffler’s plans, but many analysts have noted Merkel will have to hold her majority together, or Thursday may have only been the first in a series of nail-biting parliamentary showdowns over shoring up the euro. © The Associated Press, 2011 Accessibility Links Euro fund expansion passed by German parliament

Beginning of Story Content When supporters of the Keystone XL pipeline tout the benefits of TransCanada’s $7-billion plan to ship crude oil from Alberta to Texas, they have a long list. The extended artery will provide energy security within North America, they say. It would be the safest pipeline ever built and will take crude that Canada doesn’t have the capacity to refine to Texas refineries looking for it. And then there are the jobs the pipeline could spawn: thousands and thousands of them. In a time of economic downturn, it would be a bright light. Much opposition toward TransCanada’s Keystone XL project focuses on the routing of the proposed pipeline extension over the Ogallala aquifer and the Sandhills in Nebraska. The aquifer supplies water for drinking and agricultural irrigation to parts of eight U.S. states. “We believe that [Keystone XL] is going to put the Ogallala aquifer in jeopardy,” says Maude Barlow, chairperson of the Council of Canadians. “The pipeline route will go over it for much of its journey, and it will be carrying the dirtiest oil on the planet — bitumen. [Pipelines] do spill. Even the industry admits there is no guarantee.” The Ogallala aquifer and the Sandhills of NebraskaThe Niobrara River runs through the Sandhills in north central Nebraska, through which the Keystone XL pipeline is planned to be built. Nati Harnik/Associated Press TransCanada spokesman Shawn Howard says the company is “keenly aware” of the importance of the aquifer, and notes that pipelines have been carrying 53 million barrels of oil per year over the aquifer since 1952. If there was a spill within the aquifer, any oil would not spread very far, he says. The aquifer is not a “freshwater lake that’s just flowing. It’s more like [a] honeycomb structure where material moves through it very, very slowly.” Those who oppose the 2,673-kilometre extension, however, are equally adamant it should never go ahead. No matter how safe you try to make a pipeline, they still leak, and this one would cut across sensitive environmental areas in the U.S. that are key to local water supply. What’s more, the critics say, those jobs numbers are flawed and represent positions that have no long-term future. But leave aside the fierce debate over the pipeline itself, there is another issue at stake here: the future of the northern Alberta oilsands that need an outlet for their heavy bitumen-laced oil that those refineries on the Gulf Coast can provide. “It’s debate over a pipeline, but it’s really a debate about the oilsands,” says Andrew Leach, an associate professor at the Alberta School of Business at the University of Alberta in Edmonton. Here to stay Leach readily acknowledges that it is not easy to reconcile the arguments for and against the pipeline itself. “On both sides of the debate, the proponents and the opponents, there are a lot of levered numbers,” he says. But even TransCanada realizes that much of the root of the opposition to Keystone XL is focused on the future of those particular heavy oil deposits of northern Alberta. Spokesman Shawn Howard says the real issue for those he calls the “professional activists” who have spoken out against Keystone XL is the oilsands. clocks “They have chosen to make this pipeline the target because they’re of this misguided belief that if Keystone isn’t built, or the second half of it isn’t built, the oilsands will dry up. “They’re mistaken. This product will continue to be produced,” he said. “Other markets will take it gladly.” Profits before policy For Calgary-based TransCanada, Keystone XL is a significant part of a plan to help the company grow. Pipeline safety A touchstone in the Keystone XL debate has been pipeline safety. TransCanada spokesman Shawn Howard says Keystone XL will be “the most modern, state-of-the-art pipeline that has ever been built.” The steel is stronger because of technological advances, and there will be increased inspections and aerial monitoring. “No other pipeline will operate to the same safety standards we’ve agreed to,” Howard said. Critics point out there have been 14 spills to date on the first phase of the Keystone pipeline, which went into operation last year. One was more than 20,000 gallons, and was reported by a landowner, says Anthony Swift, a policy analyst with the Natural Resources Defence Council in Washington, D.C. “It seems clear that TransCanada’s history doesn’t match its rhetoric.” Howard says the “overwhelming majority” of those 14 spills were five to 10 gallons and came during routine maintenance. Emergency protocols worked as they were supposed to, and the spills were cleaned up quickly. “The markets approached us to build this pipeline because they needed it,” Howard says. “We don’t build a pipeline like ‘field of dreams’ — build it and hope we’ll fill it. We have 18- to 20-year contracts already in place for shipping oil on that line.” But for critics of Keystone XL, looking down the road that far is what is causing the greatest worry. Maude Barlow, the head of the Council of Canadians, says the massive infrastructure investment for a project such as Keystone XL will boost oilsands production before an overall energy policy is established. “We understand that you’re not going to shut down the Alberta tar sands tomorrow. We understand there is an infrastructure. There are jobs. We understand that a conversion to a safe and alternative energy source will take time.” But for the council, Keystone represents a very particular part of the problem. “The Keystone pipeline is an incredibly important symbol of the way policy is being driven and our very strong concern that this is going to lead to a potentially five-fold increase in the tar sands creation or tar sands investment, which is now Canada’s fastest growing site of greenhouse gas emissions,” says Barlow. In her view, “It’s just industry and greed and these big energy companies dictating policy. And it’s backwards.” ‘Excess capacity’ For the Canadian government, Keystone XL is part of an “overarching objective of becoming a responsible energy superpower,” says Natural Resources Minister Joe Oliver. “To do that, we need to develop our resources and this is part of doing that. We have excess capacity. The U.S. has excess demand, and it makes every bit of sense to build this particular project.” Public protestActress Daryl Hannah is arrested by U.S. Park Police in front of the White House in Washington, D.C., on Aug. 30, 2011, during a gift ideas protest against the Keystone XL oil pipeline. Evan Vucci/Associated Press The Keystone XL proposal has drawn high-profile opposition and set off civil disobedience. A protest planned for Sept. 26 in Ottawa is inspired by action last month in Washington, D.C., which saw more than 1,000 people arrested outside the White House. The Ottawa protest comes less than a week after a union representing Alberta oilsands workers spoke out in Ottawa against the Keystone project. They consider the project to be a job killer because the work they do — bitumen upgrading — will be done in the United States. Oliver sees great economic benefit in the Keystone XL project. “The oilsands, we’ve been told, can generate $2.3 trillion in economic activity over the next 25 years,” he says. “If Keystone goes ahead, that would add another $600 billion and hundreds of thousands of jobs can flow from the oilsands development.” Oliver says the government is continuing to work with industry “to reduce the environmental footprint” of the oilsands, and says that the intensity of greenhouse gas emissions has been cut by 30 per cent in the past 15 years. Overall emissions have still gone up, of course. But Oliver says that these are “not a huge factor globally,” representing only one/1,000th of global GHG emissions. The jobs debate Environmentalists, mind you, see this differently. “Canadians should be aware of how this project is affecting their international reputation when it comes to the environment,” says Anthony Swift, a policy analyst for the Natural Resources Defence Council in Washington, D.C. “It is certainly creating a kind of black mark on Canada’s environmental record.” Swift said the Canadian government could address that situation by implementing tighter environmental regulations for the oilsands. But that approach has become bogged down in a back and forth between the federal government and Alberta, whose governing party is in the midst of a leadership race. Meanwhile, Keystone XL is awaiting its most significant seal of approval: a U.S. presidential permit, which is required because the project crosses an international border. The U.S. State Department is reviewing the application by TransCanada and a decision is expected by the end of the year. “The tea leaves all kind of point to it being approved,” says Leach. But there could be a wild card: the Republican governor of Nebraska. Gov. Dave Heineman has urged President Barack Obama and U.S. Secretary of State Hillary Clinton to deny the permit because of concerns over potential pipeline spills and the Ogallala aquifer. It supplies drinking water to about two million people in Nebraska and seven other states. Oliver says he is not anticipating the permit will be turned down, although if it is, “we would just have to look at other markets,” presumably meaning China. And Leach says he doesn’t really see anything at this point that would derail Keystone XL. “I don’t think right now the president or the State Department have really been given something to say here’s why I’m turning down the pipeline.” What’s more, he says, “even if you don’t believe the jobs numbers, it’s pretty hard for a president to turn that down, coming into an election year.” With files from The Associated Press Accessibility Links The Keystone debate: Forget the pipeline, this is about the oilsands

Beginning of Story Content When supporters of the Keystone XL pipeline tout the benefits of TransCanada’s $7-billion plan to ship crude oil from Alberta to Texas, they have a long list. The extended artery will provide energy security within North America, they say. It would be the safest pipeline ever built and will take crude that Canada doesn’t have the capacity to refine to Texas refineries looking for it. And then there are the jobs the pipeline could spawn: thousands and thousands of them. In a time of economic downturn, it would be a bright light. Much opposition toward TransCanada’s Keystone XL project focuses on the routing of the proposed pipeline extension over the Ogallala aquifer and the Sandhills in Nebraska. The aquifer supplies water for drinking and agricultural irrigation to parts of eight U.S. states. “We believe that [Keystone XL] is going to put the Ogallala aquifer in jeopardy,” says Maude Barlow, chairperson of the Council of Canadians. “The pipeline route will go over it for much of its journey, and it will be carrying the dirtiest oil on the planet — bitumen. [Pipelines] do spill. Even the industry admits there is no guarantee.” The Ogallala aquifer and the Sandhills of NebraskaThe Niobrara River runs through the Sandhills in north central Nebraska, through which the Keystone XL pipeline is planned to be built. Nati Harnik/Associated Press TransCanada spokesman Shawn Howard says the company is “keenly aware” of the importance of the aquifer, and notes that pipelines have been carrying 53 million barrels of oil per year over the aquifer since 1952. If there was a spill within the aquifer, any oil would not spread very far, he says. The aquifer is not a “freshwater lake that’s just flowing. It’s more like [a] honeycomb structure where material moves through it very, very slowly.” Those who oppose the 2,673-kilometre extension, however, are equally adamant it should never go ahead. No matter how safe you try to make a pipeline, they still leak, and this one would cut across sensitive environmental areas in the U.S. that are key to local water supply. What’s more, the critics say, those jobs numbers are flawed and represent positions that have no long-term future. But leave aside the fierce debate over the pipeline itself, there is another issue at stake here: the future of the northern Alberta oilsands that need an outlet for their heavy bitumen-laced oil that those refineries on the Gulf Coast can provide. “It’s debate over a pipeline, but it’s really a debate about the oilsands,” says Andrew Leach, an associate professor at the Alberta School of Business at the University of Alberta in Edmonton. Here to stay Leach readily acknowledges that it is not easy to reconcile the arguments for and against the pipeline itself. “On both sides of the debate, the proponents and the opponents, there are a lot of levered numbers,” he says. But even TransCanada realizes that much of the root of the opposition to Keystone XL is focused on the future of those particular heavy oil deposits of northern Alberta. Spokesman Shawn Howard says the real issue for those he calls the “professional activists” who have spoken out against Keystone XL is the oilsands. clocks “They have chosen to make this pipeline the target because they’re of this misguided belief that if Keystone isn’t built, or the second half of it isn’t built, the oilsands will dry up. “They’re mistaken. This product will continue to be produced,” he said. “Other markets will take it gladly.” Profits before policy For Calgary-based TransCanada, Keystone XL is a significant part of a plan to help the company grow. Pipeline safety A touchstone in the Keystone XL debate has been pipeline safety. TransCanada spokesman Shawn Howard says Keystone XL will be “the most modern, state-of-the-art pipeline that has ever been built.” The steel is stronger because of technological advances, and there will be increased inspections and aerial monitoring. “No other pipeline will operate to the same safety standards we’ve agreed to,” Howard said. Critics point out there have been 14 spills to date on the first phase of the Keystone pipeline, which went into operation last year. One was more than 20,000 gallons, and was reported by a landowner, says Anthony Swift, a policy analyst with the Natural Resources Defence Council in Washington, D.C. “It seems clear that TransCanada’s history doesn’t match its rhetoric.” Howard says the “overwhelming majority” of those 14 spills were five to 10 gallons and came during routine maintenance. Emergency protocols worked as they were supposed to, and the spills were cleaned up quickly. “The markets approached us to build this pipeline because they needed it,” Howard says. “We don’t build a pipeline like ‘field of dreams’ — build it and hope we’ll fill it. We have 18- to 20-year contracts already in place for shipping oil on that line.” But for critics of Keystone XL, looking down the road that far is what is causing the greatest worry. Maude Barlow, the head of the Council of Canadians, says the massive infrastructure investment for a project such as Keystone XL will boost oilsands production before an overall energy policy is established. “We understand that you’re not going to shut down the Alberta tar sands tomorrow. We understand there is an infrastructure. There are jobs. We understand that a conversion to a safe and alternative energy source will take time.” But for the council, Keystone represents a very particular part of the problem. “The Keystone pipeline is an incredibly important symbol of the way policy is being driven and our very strong concern that this is going to lead to a potentially five-fold increase in the tar sands creation or tar sands investment, which is now Canada’s fastest growing site of greenhouse gas emissions,” says Barlow. In her view, “It’s just industry and greed and these big energy companies dictating policy. And it’s backwards.” ‘Excess capacity’ For the Canadian government, Keystone XL is part of an “overarching objective of becoming a responsible energy superpower,” says Natural Resources Minister Joe Oliver. “To do that, we need to develop our resources and this is part of doing that. We have excess capacity. The U.S. has excess demand, and it makes every bit of sense to build this particular project.” Public protestActress Daryl Hannah is arrested by U.S. Park Police in front of the White House in Washington, D.C., on Aug. 30, 2011, during a gift ideas protest against the Keystone XL oil pipeline. Evan Vucci/Associated Press The Keystone XL proposal has drawn high-profile opposition and set off civil disobedience. A protest planned for Sept. 26 in Ottawa is inspired by action last month in Washington, D.C., which saw more than 1,000 people arrested outside the White House. The Ottawa protest comes less than a week after a union representing Alberta oilsands workers spoke out in Ottawa against the Keystone project. They consider the project to be a job killer because the work they do — bitumen upgrading — will be done in the United States. Oliver sees great economic benefit in the Keystone XL project. “The oilsands, we’ve been told, can generate $2.3 trillion in economic activity over the next 25 years,” he says. “If Keystone goes ahead, that would add another $600 billion and hundreds of thousands of jobs can flow from the oilsands development.” Oliver says the government is continuing to work with industry “to reduce the environmental footprint” of the oilsands, and says that the intensity of greenhouse gas emissions has been cut by 30 per cent in the past 15 years. Overall emissions have still gone up, of course. But Oliver says that these are “not a huge factor globally,” representing only one/1,000th of global GHG emissions. The jobs debate Environmentalists, mind you, see this differently. “Canadians should be aware of how this project is affecting their international reputation when it comes to the environment,” says Anthony Swift, a policy analyst for the Natural Resources Defence Council in Washington, D.C. “It is certainly creating a kind of black mark on Canada’s environmental record.” Swift said the Canadian government could address that situation by implementing tighter environmental regulations for the oilsands. But that approach has become bogged down in a back and forth between the federal government and Alberta, whose governing party is in the midst of a leadership race. Meanwhile, Keystone XL is awaiting its most significant seal of approval: a U.S. presidential permit, which is required because the project crosses an international border. The U.S. State Department is reviewing the application by TransCanada and a decision is expected by the end of the year. “The tea leaves all kind of point to it being approved,” says Leach. But there could be a wild card: the Republican governor of Nebraska. Gov. Dave Heineman has urged President Barack Obama and U.S. Secretary of State Hillary Clinton to deny the permit because of concerns over potential pipeline spills and the Ogallala aquifer. It supplies drinking water to about two million people in Nebraska and seven other states. Oliver says he is not anticipating the permit will be turned down, although if it is, “we would just have to look at other markets,” presumably meaning China. And Leach says he doesn’t really see anything at this point that would derail Keystone XL. “I don’t think right now the president or the State Department have really been given something to say here’s why I’m turning down the pipeline.” What’s more, he says, “even if you don’t believe the jobs numbers, it’s pretty hard for a president to turn that down, coming into an election year.” With files from The Associated Press Accessibility Links The Keystone debate: Forget the pipeline, this is about the oilsands