Government Energy Policy, Business and Technology

South Dakota Warns It Could Revoke Keystone Pipeline Permit Over Oil Spill

Inside Climate News: South Dakota regulators said they could revoke TransCanada's permit for the 7-year-old Keystone Pipeline if an investigation into a large oil spill discovered last week concludes the company violated its terms. If that happens, the company would have to correct any issues—in the worst case, even replace part of the pipeline—before oil shipments could resume.

The scrutiny comes as more challenges emerge to the company's recently approved expansion of its pipeline system: the Keystone XL.

On Nov. 16, TransCanada reported that 210,000 gallons, or 5,000 barrels, of oil had spilled from its existing Keystone Pipeline near Amherst, South Dakota, and that it had shut down the pipeline in response. It was the third major spill in the region for the pipeline, which began operations in 2010.

Read article