TransCanada Keystone pipeline leaks 795000 litres of crude oil in South Dakota

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TransCanada has announced that its Keystone I tar sands pipeline has spilled 210,000 gallons of tar sands oil on farmlands in South Dakota.

TransCanada says that expects the pipeline to remain shut down as the company responds to the leak.

According to a press release from TransCanada, which operates the controversial pipeline, the section of pipeline was "completely isolated within 15 minutes and emergency response procedures were activated".

Western Canada Select heavy blend crude for December delivery was trading at $14.50 below the West Texas Intermediate benchmark at late afternoon on Thursday, down slightly from $14.20 the day before. The Keystone XL pipeline has been opposed by environmental and Native American groups since it was proposed a year ago.

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Amherst is about 200 miles north of Sioux Falls, S.D., and about 25 miles from the state's border with North Dakota. It was detected about 6 a.m. Thursday by TransCanada and reported to state officials more than four hours later, said Brian Walsh, a manager with the South Dakota Department of Environment and Natural Resources.

Keystone carries crude from the oil sands in Canada to refineries in IL and Texas, and to a distribution center in Oklahoma. That's the equivalent of 5,000 barrels of oil. TransCanada is providing state and federal regulators, including the Pipelines and Hazardous Materials Safety Administration and the National Response Center, with accurate and confirmed information on an ongoing basis.

A leak and spill in southeastern South Dakota in April 2016 prompted a weeklong shutdown of the pipeline. Based on the safety record of Keystone I, Nebraska's PSC should carefully consider the impacts of TransCanada's much larger Keystone XL pipeline as it weighs its decision on Monday.

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