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The Keystone Oil Pipeline is pictured under construction in North Dakota in this undated photograph released on Jan. 18, 2012. (REUTERS/TransCanada Corporation/Handout)

Report: Keystone contractor followed federal rules

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By Matthew Daly

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WASHINGTON (AP) — A consulting firm that helped write an environmental review of the proposed Keystone XL oil pipeline complied with federal rules regarding possible conflict of interest, the State Department's inspector general said Wednesday in a report that buoyed supporters of the controversial pipeline and disappointed critics.

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