Obama welcomes TransCanada plan for new pipeline

"Of course, this smaller pipeline would in no way replace the need for the larger Keystone XL project, but a pipeline from Cushing to the Gulf is a no-brainer," Inhofe said. "Even as President Obama squandered the best job-creating opportunity he has ever had by rejecting Keystone, he still made a commitment to 'partner' with the oil and gas industry to increase our energy security. In Oklahoma we are taking him at his word."

Susan Casey-Lefkowitz, international program director for the Natural Resources Defense Council, said the new, shorter pipeline was "a ploy" to avoid State Department review of the Keystone XL project, which she said would raise U.S. oil prices, send tar sands oil overseas, endanger U.S. homes and waters and contribute to worsening climate change.

"What part of "no" does TransCanada not understand?" she asked.

The Center for Biological Diversity, another environmental group, said the pipeline would still travel through wetlands and habitat for imperiled species such as the whooping crane, piping plover and a rare minnow known as the Arkansas River shiner.

"This isn't the time to be cutting corners on protecting our wildlife and environment," said Noah Greenwald, director of the group's endangered species program. "The Obama administration should be willing to take a hard look at this project and make sure it follows laws that protect clean water, wetlands and endangered species."

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