NASA is planning on activating the Shuttle backup landing site at Edwards Air Force Base in California to ensure that the shuttle could be landed there or at the usual landing site Florida (link). Since the Shuttle and the ISS are in a circular orbit about 210 miles altitude. The failing satellite is at an altitude of 160 miles. Any debris kicked up to a higher orbit would be in a highly elliptical orbit and would reenter the atmosphere quickly. NASA says the space station would not be in any danger but presumably the Shuttle could pass near some debris. Removing the Shuttle from the equation would make the shoot down easier to plan.

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