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Premier Rachel Notley says the proposed Keystone XL could hurt the Alberta government’s hopes of upgrading more bitumen at home.

“My position on Keystone is exactly what it has been all along, which is that while we do need to absolutely diversify our markets for the energy industry in Alberta, Keystone is one that might prove to be challenging for our government in our hopeful efforts to increase upgrading activities in Alberta,” Notley said by phone from Toronto. “But I continue to believe that what we can do — and it may ultimately help support the Keystone application as well — is make better decisions about the environment so we can debate pipeline proposals on their merits.”

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The Wildrose Official opposition had earlier Thursday accused Notley of hurting Alberta’s energy industry by calling TransCanada’s proposed pipeline a threat. But Notley said a Bloomberg report erroneously suggested she used the word threat to describe Keystone.