This is what the pipeline company had to say. Doesn't seem like much of a tragedy.

Calgary, Alberta - January 18, 2012 - TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) announced today it has received the U.S. Department of State's decision that the Presidential Permit for Keystone XL has been denied.

"This outcome is one of the scenarios we anticipated. While we are disappointed, TransCanada remains fully committed to the construction of Keystone XL. Plans are already underway on a number of fronts to largely maintain the construction schedule of the project," said Russ Girling, TransCanada's president and chief executive officer. "We will re-apply for a Presidential Permit and expect a new application would be processed in an expedited manner to allow for an in-service date of late 2014."