Oil leak shuts down portion of Keystone pipeline

Oil leak shuts down portion of Keystone pipeline

Early Thursday morning, a leak in the TransCanada Keystone pipeline spilled at least 5,000 barrels-or 210,000 gallons-of oil in South Dakota.

TransCanada said in a statement it discovered the leak 6 a.m. on Thursday after systems detected a drop in pressure, and that it was working with the authorities as it investigates.

TRP has not yet provided a reason for the spill, which occurred just four days before the Nebraska Public Service Commission is expected to announce a decision on an 830K-barrel expansion of the Keystone system through the state.

This is the largest Keystone oil spill to date in South Dakota, said Brian Walsh, a spokesman for the state's Department of Environment and Natural Resources.

"Ultimately, the cleanup responsibility lies with TransCanada, and they'll have to clean it up in compliance with our state regulations", Walsh said.

Oil falls for a third day, knocked by rising United States output
Money managers now hold a net long position in Brent futures and options equivalent to almost 544 million barrels of oil. This led to a slide in crude futures prices late on Friday away from over two-year highs reached early last week.

For comparison's sake, the Keystone pipeline experienced a previous leak in April 2016 that, at 16,800 gallons (or 400 barrels), was much smaller in scope.

The federal Pipeline and Hazardous Materials Safety Administration didn't immediately return an email requesting additional information from The Associated Press.

The leak occurred about 3 miles southeast of the community of Amherst.

The pipeline would transport oilsands oil from Alberta through Montana and South Dakota to Nebraska, where it would connect with existing pipelines that feed Texas Gulf Coast refineries. Soon after Donald Trump became president, he signed memoranda to expedite the environmental review process for Keystone XL.

The pipeline is a segment of the 2,687-mile TransCanada system that is set to also include the controversial proposed Keystone XL pipeline, which is promised to be the safest pipeline ever built in North America by the company.

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