South Dakota warns that permission for Keystone pipelines could be revoked after oil spill


Regulators in South Dakota have warned that they could revoke TransCanada's permit for the controversial Keystone pipeline in case an investigation of last week's spill reveals that the company violated the terms of its license. However, even if regulators decide to revoke TransCanada's permit, the pipeline is not likely to close indefinitely, Reuters reported. On the contrary, the pipeline would be temporarily closed to oil shipments until the company can deal with and rectify each and every one of the infractions.

"If [the pipeline] was knowingly operating in a manner not permitted by the permit or if the construction was done in a manner that was not acceptable, that should cause the pipeline to close for at least a period of time until that these challenges are rectified, "Gary Hanson, a member of the Public Services Commission of South Dakota for three people, told Reuters.

Federal and state regulators have begun an investigation into the cause of the spill last week as part of a larger effort to determine whether TransCanada violated any of the 57 conditions related to its construction and operation permit. That permit was approved by the Public Service Commission of South Dakota in the year 20018. While an initial report is expected to be completed within the next few weeks, the commission has said it could be months before it is known whether there was or no violations, the local news channel KSFY has reported.

Image of the Amherst incident taken earlier today by an air patrol as part of our initial response. For more updates, visit

– (@transcanada) #

A spokesman for the Pipeline and Pipeline Security Administration told Reuters this week that regulatory officials were planning stay. in the spill scene until the pipe has been restarted. Regulatory officials are monitoring efforts to excavate and pack the damaged parts of the pipeline for further testing and badysis. Until Thursday, TransCanada had yet to establish a return to service date and it is not yet clear how long the restoration and restoration efforts may take.

But the threat of a revoked permit is not the only potential obstacle the company faces behind the controversial gas pipeline. According to the Wall Street Journal a boom in hydraulic fracturing has caused both the demand and the price of the bitumen that TransCanada seeks to bring from Alberta to sink as cheap natural gas is poured into the energy market . While oil was priced at more than $ 130 per barrel in 2008, when TransCanada sought its permission for the first time, it has since declined, reaching a two-year high of nearly $ 58.

However, in In a statement issued in early November, the company noted that while it anticipated that "commercial support for the project would be substantially similar to what existed when we first applied for a permit for Keystone XL pipelines," they also anticipated a need for "new shippers "due to" reductions in volume commitments of other shippers ".

The Keystone pipeline is part of a controversial line extending over 2,500 miles that transports crude oil from the tar sands of Athabasca in Alberta, Canada, to multiple locations in the United States, including Illinois and Oklahoma. The spill last week was the third pipeline leak in South Dakota in the last year, according to a spill database from the Department of Environment and Natural Resources of South Dakota.

Many teams were taken to the #keystone #leak site. The contamination of drainage ditches and groundwater sources is still uncertain.

– (@smarvel_aan) #

Earlier this week, a member of the Public Service Commission of South Dakota expressed concern about the apparent frequency of the leaks. "We've had three fairly significant leaks right on the border with North Dakota and two in South Dakota in a very short period of time," Gary Hanson, vice president of the Public Service Commission of South Dakota, told Aberdeen News. "One could expect this to take place in a pipeline for a period of 30 or 40 years maximum, however, it has been less than 10 years."

While Hanson, who served on the commission in 2008 when the TransCanada building permit was approved, acknowledged that the commission knew a leak would occur, he said the multiple leaks were "very worrying."

"This is a relatively new pipeline," reported Aberdeen News, according to Hanson. "It's supposed to have a lifespan of more than 100 years and it was supposed to be a state-of-the-art pipeline construction, it seems that it is not."

According to TransCanada, there are approximately 170 people working on cleanup and remediation activities at the spill site. According to the company, about 24,450 gallons of the estimated 210,000 gallons of oil reported to be spilled had recovered until Wednesday.

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