Published: Tue, November 28, 2017
Money | By Michele Stevens

Transcanada asks Nebraska to reconsider order on Keystone route

Transcanada asks Nebraska to reconsider order on Keystone route

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TransCanada Corp (TRP.TO) has asked the Nebraska Public Service Commission to reconsider its order approving an alternate route for the Canada-U.S. Keystone XL pipeline, according to a filing posted on the commission's website on Monday.

The Keystone pipeline will return to service on Tuesday, operators announced, almost two weeks after spilling about 5,000 barrels of oil in rural South Dakota.

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The spill risk analysis was conducted by global risk management company DNV GL, which did not respond to Reuters' request for comment.

The company says US regulators have cleared its restart plans, which include restarting the pipeline at a reduced pressure before gradually increasing the volume of crude oil in the system. TransCanada's report to regulators, produced by an outside risk assessor, said that a spill should have occurred along the South Dakota section no a couple of times every 41 years.

And in South Dakota, where the line has leaked twice, the estimate was for a "spill no a couple of times every 41 years".

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Hanson and the two other state commissioners said that they could withdraw TransCanada's permit to operate the 590,000-barrel per day pipeline until it identifies the reasons behind the repeated failures.

The spill took place days before regulators in neighboring Nebraska approved a route for TransCanada's proposed Keystone XL pipeline through the state, lifting the last major regulatory hurdle for the expansion that has been delayed for years by environmental opposition. It estimated that spills exceeding 1,000 barrels would occur at a rate of once per century.

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