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Why Landowners, Industry and the Public Need CAEPLA

Published in November, 2019

 

Why landowners, industry and the public need CAEPLA.

We simply cannot afford not to put safety and the integrity of soil and water first.

Why The Latest Keystone Spill Is Disastrous For Canadian Oil

The Keystone Pipeline was shut down this week after it ruptured and spilled in North Dakota.

TC Energy – formerly known as TransCanada – said on Wednesday that it shut down the 590,000-bpd line after it detected a drop in pressure. “TC Energy immediately began the process to shut down the pipeline, activated its emergency response procedures and dispatched ground technicians to assess the situation,” the company said.

The company did not specify whether the entire pipeline was shut down or just a portion. “At this time there is no indication that it has impacted anybody’s drinking water,” said Karl Rockeman, director of the division of water quality for North Dakota's health department, according to local press reports. “It appears to (be) contained within the area.”

The repair and cleanup could take as long as two to three months, according to Reuters.

The pipeline runs from Alberta to refineries in the Midwest and is a crucial conduit for Canada’s oil industry. The prospect of an outage helped depress prices for Western Canada Select (WCS), which fell relative to WTI ever-so-slightly on Wednesday. WCS is trading below $38 per barrel, or about $17 per barrel below WTI.

This is not the first time that the Keystone Pipeline has spilled. In November 2017, the pipeline ruptured and spilled more than 200,000 gallons in South Dakota. The pipeline was offline for weeks.

The latest spill is yet another reminder that while the industry trumpets pipelines as the safest way to move oil, spills are not exactly a rarity. “We don’t yet know the extent of the damage from this latest tar sands spill, but what we do know is that this is not the first time this pipeline has spilled toxic tar sands, and it won’t be the last,” Catherine Collentine of the Sierra Club said in a statement. “We’ve always said it’s not a question of whether a pipeline will spill, but when, and once again TC Energy has made our case for us.”