BEFORE THE NEBRASKA PUBLIC SERVICE COMMISSION IN THE MATTER OF THE APPLICATION ) APPLICATION NO.: ________________ OF TRANSCANADA KEYSTONE PIPELINE, ) L.P. FOR ROUTE APPROVAL OF THE ) KEYSTONE XL PIPELINE PROJECT ) PURSUANT TO THE MAJOR OIL PIPELINE ) APPLICATION SITING ACT TransCanada Keystone Pipeline, LP (Keystone), pursuant to the Major Oil Pipeline Siting Act, submits this application for approval of the Preferred Route as defined in this application. For the reasons stated in this application, Keystone requests an order from the Nebraska Public Service Commission pursuant to Neb. Rev. Stat. § 57-1408 finding that the Preferred Route is in the public interest and authorizing Keystone to act under Neb. Rev. Stat. § 57-1101. In addition to its application, Keystone submits the written testimony of Tony Palmer, Stephen Marr, John Beaver, Gayle Konik, Michael Portnoy, Jon Schmidt, Paul Fuhrer, and Dr. Ernie Goss. Keystone also provides its executed agreement to pay expenses assessed in accordance with the provisions of the Major Oil Pipeline Siting Act. The following is Keystone’s written application: Acronyms ACRONYM DEFINITION CFC The Central Flyway Council CFR Code of Federal Regulations CMRP Construction, Mitigation, and Reclamation Plan Con/Rec Construction and Reclamation CRP Conservation Reserve Program CWS Canadian Wildlife Service DOS US Department of State EOC Emergency Operations Center EPA Environmental Protection Agency FSA Farm Seed Act FEIS Final Environmental Impact Statement FSEIS Final Supplemental Environmental Impact Statement HCA High consequence area HDD Horizontal directional drill LB Legislative Bill MSDS Material safety data sheets MLRA Major Land Resource Area MOP Maximum Operating Pressure MOPSA Major Oil Pipeline Siting Act NDEQ Nebraska Department of Environmental Quality NEPA National Environmental Policy Act NGPC Nebraska Game and Parks Commission NHD National Hydrological Dataset NLCD National Landcover Dataset NPDES National Pollutant Discharge Elimination System NPPD Nebraska Public Power District NPSC Nebraska Public Service Commission NRCS Natural Resource Conservation Service OCC Operations Control Centre PSAP Public safety answering point R-EMAP Regional Environmental Monitoring and Assessment Program RENEW Recovery of Nationally Endangered Wildlife RWBC Rainwater Basin Complex SDPUC South Dakota Public Utilities Commission SPCC Spill Prevention, Control, and Countermeasure TSS Total suspended solids US United States USC United States Code USFWS US Fish and Wildlife Service WEG Wind erodibility group ii Table of Contents 1.0 NAME AND ADDRESS OF PIPELINE CARRIER (SUBSECTION 023.02A1) ............... 1 BACKGROUND ..................................................................................................... 1 2.0 DESCRIPTION OF NATURE AND PROPOSED ROUTE OF THE MAJOR OIL PIPELINE INCLUDING A MAP OF THE PROPOSED ROUTE AND EVIDENCE OF CONSIDERATION OF ALTERNATIVE ROUTES (SUBSECTION 023.02A2) ................ 2 2.1 DEVELOPMENT OF THE PROPOSED PREFERRED AND ALTERNATIVE ROUTES ............................................................................................................... 2 2.1.1 Preferred Route ......................................................................................... 3 2.1.2 Sandhills Alternative Route ........................................................................ 3 2.1.3 Keystone Mainline Alternative Route ......................................................... 8 2.1.4 Liquid Pipeline Hydraulics Considerations ................................................. 8 3.0 REASONS FOR THE SELECTION OF THE PROPOSED ROUTE OF THE MAJOR OIL PIPELINE (SUBSECTION 023.02A3) ............................................................................ 13 4.0 A LIST OF THE GOVERNING BODIES OF THE COUNTIES AND MUNICIPALITIES THROUGH WHICH THE PROPOSED ROUTE OF THE MAJOR OIL PIPELINE WOULD BE LOCATED (SUBSECTION 023.02A4) ....................................................... 16 5.0 A DESCRIPTION OF THE PRODUCT OR MATERIAL TO BE TRANSPORTED THROUGH THE MAJOR OIL PIPELINE (SUBSECTION 023.02A5) ............................ 16 6.0 THE PERSON WHO WILL OWN THE MAJOR OIL PIPELINE (SUBSECTION 023.02A6) ....................................................................................................................... 16 7.0 THE PERSON WHO WILL MANAGE THE MAJOR OIL PIPELINE (SUBSECTION 023.02A7) ....................................................................................................................... 16 8.0 A PLAN TO COMPLY WITH THE OIL PIPELINE RECLAMATION ACT (SUBSECTION 023.02A8) ....................................................................................................................... 17 8.1 RECLAMATION PLAN INTRODUCTION ............................................................ 17 8.2 RECLAMATION COSTS ..................................................................................... 19 8.3 RECLAMATION SCHEDULE .............................................................................. 19 8.3.1 Timing of Final Grading ........................................................................... 20 8.3.2 Timing of Topsoil Replacement ............................................................... 20 8.3.3 Timing of Installation of Erosion Control Structure .................................. 20 8.3.4 Timing of Seeding .................................................................................... 20 8.3.5 Timing of Mulching................................................................................... 21 8.4 EROSION CONTROL ......................................................................................... 21 8.4.1 Sediment Barriers .................................................................................... 21 8.4.2 Trench Plugs (Trench Breakers) .............................................................. 21 8.4.3 Slope Breakers (Water Bars) ................................................................... 22 8.4.4 Mulching and Cover Crops ...................................................................... 22 8.4.5 Tackifier ................................................................................................... 23 8.4.6 Erosion Control Matting ........................................................................... 23 iii 8.5 REVEGETATION ................................................................................................ 23 8.6 NOXIOUS WEED MANAGEMENT ..................................................................... 25 8.7 RECLAMATION AND MAINTENANCE OBLIGATION ........................................ 25 9.0 A LIST OF PLANNED METHODS TO MINIMIZE OR MITIGATE THE POTENTIAL IMPACTS OF THE MAJOR OIL PIPELINE TO LAND AREAS AND CONNECTED NATURAL RESOURCES OTHER THAN WITH RESPECT TO OIL SPILLS (SUBSECTION 023.02A9) .............................................................................................. 25 9.1 DESCRIPTION OF CONSTRUCTION ................................................................ 25 9.2 PLANNED METHODS ........................................................................................ 28 9.3 ENVIRONMENTAL TRAINING AND AWARENESS ........................................... 28 9.4 ENVIRONMENTAL INSPECTION ....................................................................... 28 9.5 COMMITMENT MANAGEMENT ......................................................................... 29 9.6 CONSTRUCTION MITIGATION AND RECLAMATION PLAN (CMRP) .............. 29 9.7 CONSTRUCTION/RECLAMATION PLANNING ................................................. 29 9.8 PERMIT COMPLIANCE ...................................................................................... 29 9.9 HORIZONTAL DIRECTIONAL DRILL (HDD) ...................................................... 30 9.10 HYDROSTATIC TEST PLAN .............................................................................. 30 9.11 SPILL PREVENTION CONTROL AND COUNTERMEASURE ........................... 31 9.12 NOXIOUS AND INVASIVE WEEDS.................................................................... 31 9.13 RECREATION AND SPECIAL INTEREST AREAS ............................................ 31 9.14 CONTAMINATED SOILS UNANTICIPATED DISCOVERY PLAN ...................... 31 10.0 FOR INFORMATIONAL PURPOSES ONLY, A DESCRIPTION OF THE METHOD FOR STATE AGENCIES AND EMERGENCY RESPONSE PERSONAL TO OBTAIN CURRENT SAFETY DATA SHEET(S) FOR THE PRODUCT(S) OR MATERIAL(S) BEING TRANSPORTED THROUGH THE PIPELINE IN THE EVENT OF AN INCIDENT (SUBSECTION 023.02A10) ............................................................................................ 32 11.0 BURDEN OF PROOF (SUBSECTION 023.07) .............................................................. 32 12.0 WHETHER THE PIPELINE CARRIER HAS DEMONSTRATED COMPLIANCE WITH ALL APPLICABLE STATE STATUTES, RULES, AND REGULATIONS AND LOCAL ORDINANCES (SUBSECTION 023.07A)....................................................................... 33 13.0 AN ENVIRONMENTAL IMPACT STUDY (SUBSECTION 023.007B1) ......................... 33 14.0 A COMPREHENSIVE SOIL PERMEABILITY SURVEY (SUBSECTION 023.007B2) ... 41 15.0 A DISTANCE-TO-GROUNDWATER SURVEY (SUBSECTION 023.007B3) ................ 41 16.0 EVIDENCE REGARDING THE IMPACT OF THE MAJOR OIL PIPELINE ON WILDLIFE (SUBSECTION 023.007B4) .......................................................................... 41 16.1 TERRESTRIAL WILDLIFE SPECIES .................................................................. 41 16.1.1 Big Game Species ..................................................................................