A $1 billion payment from the U.S. government to a Texas oil and gas company is part of a larger settlement that will provide relief to communities hit hardest by the controversial Keystone XL oil pipeline.
The U.N. climate change panel has said the pipeline would raise greenhouse gas emissions by 40 million metric tons a year and contribute to climate change.
The pipeline would carry oil from Canada to the Gulf Coast refineries.
U.P.O.s had said that it could be built under the existing pipeline system but would not get federal approval for it because it was not yet ready.
The agency said it will take a more aggressive approach, working with the companies to develop the system and building a new pipeline system to connect it to existing facilities in the Gulf.
The payment from U.T.O., which owns Keystone XL, is part to a broader settlement that was announced Wednesday by the U,S.
Department of Energy, the U.,T.
O.O.’s chief executive, Patrick McMullan, said in a statement.
The company, which has $5 billion in assets, will receive $1,000 per barrel in payments over the next decade, which is a 25 percent discount from its original price.
McMullann said the company would provide $100 million in relief to the communities hit the hardest by Keystone XL and the Keystone-to-the-Gulf corridor.
The project has been a lightning rod for controversy, with opponents saying it would raise the cost of energy for the U in the Midwest, and the State Department, which owns the pipeline, saying it could increase greenhouse gas emission.
The settlement does not apply to other U.O.-owned pipelines that are currently operating, the company said.
The $1bn payment is the latest of several similar payments to U.W.
O-owned companies, including a $1 trillion loan from Exxon Mobil Corp. in 2009 and a $2.2 billion loan from Chevron Corp. to Exxon Mobil in 2015.
Both loans were approved by U.C. Davis.
A third $1b payment from Exxon is also expected in the coming months.
The Obama administration, which also committed to providing $1-billion in aid, is set to announce additional financial aid for communities impacted by Keystone and the Gulf oil pipeline later this month.
O said they would work to meet U.A.E.’s requirements and help communities meet the economic recovery needs, and they would also work to ensure that communities and their businesses remain part of the pipeline system.