Keystone Pipeline Springs a Leak as Extension Decision Nears


Talk about dangerous timing.

Days earlier than Nebraska regulators are set to rule on TransCanada Corp.’s XL extension to its Keystone pipeline, the prevailing conduit has sprung a serious leak. It spilled about 5,000 barrels of oil early Thursday in South Dakota, handing new fodder to environmentalists against the XL venture. The firm shut the road, and foes had been fast to reply.

The spill “should be a stark reminder of the risk Nebraska would be signing up for,” mentioned Anthony Swift, director of the Natural Resources Defense Council’s Canada Project, a bunch that opposes the pipeline. “The likelihood of spills should weigh into their decision.”

The spill occurred in Marshall County, the corporate mentioned in a badertion. The pipeline, which may carry about 600,000 barrels of crude a day from Alberta’s oil sands to the U.S. Midwest, is anticipated to stay shut whereas the corporate responds to the spill. TransCanada tentatively plans to restart the road Nov. 23, an individual accustomed to the matter mentioned Friday.

Analysts have mentioned a protracted shutdown would have an effect on distribution of heavier oil. The line will stay shut till repairs are accomplished and TransCanada receives approval from the Pipeline and Hazardous Materials Safety Administration, Terry Cunha, an organization spokesman, mentioned in an emailed badertion.

While a 2011 state legislation precludes the Nebraska regulators from factoring pipeline security or the potential for leaks into the choice on Keystone XL, the spill nonetheless sends a tough sign out at a key time for the corporate.

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