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Governor expresses new concern about pipeline rejection

It's a story that's received both criticism and praise: the federal decision to reject the Keystone XL Pipeline proposal. Governor Heineman was one of those disappointed with the move.

Thursday, he says he has another concern that it could create legal problems.

Heineman says that state agency officials are examining what the U.S. State Department ruling could mean for a Nebraska-based environmental review of the project.

Pipeline developer TransCanada agreed to the review last year, and company officials said they would voluntarily reroute the line following a public outcry over its path through Nebraska's sensitive Sandhills.

Jim Bunstock, a spokesman for the state Department of Environmental Quality, says agency officials have not determined how to proceed, and will likely need direction from the Legislature.

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