From the PMO press office:
“Earlier this afternoon, Prime Minister Stephen Harper received a phone call from Barack Obama, President of the United States. President Obama informed the Prime Minister of his Administration’s decision to turn down TransCanada’s application to build and operate the Keystone XL pipeline.
“The President explained that the decision was not a decision on the merits of the project and that it was without prejudice, meaning that TransCanada is free to re-apply. Prime Minister Harper expressed his profound disappointment with the news. He indicated to President Obama that he hoped that this project would continue given the significant contribution it would make to jobs and economic growth both in Canada and the United States of America.
“ The Prime Minister reiterated to the President that Canada will continue to work to diversify its energy exports.”