Nebraska Governor Dave Heineman has approved a new route for the Keystone XL oil pipeline that avoids the state's environmentally sensitive Sandhills region.
Heineman sent a letter Tuesday to President Barack Obama confirming that he would allow the controversial 195 mile long project to proceed in his state.
The pipeline has faced strong resistance in Nebraska from a coalition of landowners and environmental groups who claim it would contaminate the Ogallala aquifer, a massive groundwater supply.
Heineman says the project will result in over 418-million dollars in economic benefits for Nebraska.
Canadian pipeline developer TransCanada and some workers' unions say the project is safe and will create thousands of jobs.
Associated Press contributed to this story.