TransCanada restarts Keystone after oil spill; petitions Nebraska to rethink alternative route decision

28th November 2017 By: Henry Lazenby - Creamer Media Deputy Editor: North America

VANCOUVER (miningweekly.com) – Canada’s largest fossil fuels infrastructure operator TransCanada said on Monday it would restart the existing Keystone I pipeline on Tuesday, after a 5 000 bbl oil spill, in Amherst, South Dakota, halted operations last Thursday morning.

TransCanada reported that its Keystone pipeline repair and restart plans have been reviewed by the Pipeline and Hazardous Materials Safety Administration (PHMSA), with no objections, permitting a safe and controlled return to service of the Keystone system.

As part of the reviewed plans, TransCanada will operate the pipeline at a reduced pressure to ensure a safe and gradual increase in the volume of crude oil moving through the system.

“We are communicating plans to our customers and will continue working closely with them as we begin to return to normal operating conditions. TransCanada will comply with any future PHMSA orders and requirements as a result of this incident to ensure the integrity of the pipeline,” the company said in a statement.

KEYSTONE XL
Following the approval by Nebraska of an alternative route for TransCanada’s proposed Keystone XL (KXL) pipeline, which will connect Canada’s oil patch at Hardesty, Alberta, to the US refining heartland at Steel City, Nebraska, to deliver about 830 000 bbl/d of crude, the company has petitioned the state to reconsider its decision.

TransCanada lodged a motion with the Nebraska Public Service Commission (PSC) last Friday, requesting it to reconsider its order, seeking clarification of certain questions raised in the PSC order.

Keystone cited the 8 km longer route and one additional pumping station as negatives, but the PSC found that the Alternative Mainline Route also impacts on fewer kilometres of the ranges of threatened or endangered species, and also comprises fewer crossings of farmland, rivers and other infrastructure, such as state highways and natural gas facilities.