Keystone pipeline springs a leak in South Dakota

Keystone oil pipeline

A key part of the Keystone pipeline has sprung a leak in South Dakota. The oil spill was confirmed by TransCanada.

TransCanada, which operates the pipeline, reported a spill of about 187 gallons of crude oil to the Coast Guard’s National Response Center on Saturday afternoon.

In a statement the company said it was already removing the oil and was investigating the source of the leak.

The company says “no significant impact to the environment has been observed.”

The incident occurred about four miles away from the Freeman pump station in Hutchinson County, South Dakota.

The company will shut down part of the pipeline from Alberta, Canada to Cushing, Oklahoma until Friday.

The portion of the pipeline that connects Cushing to Texas will remain in operation.

TransCanada says it “immediately” shut down the pipeline after the leak was reported on Saturday afternoon.

Upon arrival workers found “visible signs of oil on a small surface area,” TransCanada said.

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The Department of Transportation’s Pipeline and Hazardous Materials Administration is actively investigating the leak.

TransCanada has been attempting to expand the Keystone pipeline from Canada to Nebraska, a plan known as the Keystone XL, which was shot down by President Obama last year after a lengthy review process.

Written by Jeff Springer

Jeff Springer

Jeff Spring is the Finance & Markets Editor at BusinessPundit.com. He's currently spending his days backpacking across Europe. While he may be living outside of the United States, he stays connected to American financial markets and M&A's more than is probably healthy for any single person. His love of a good book and a Bloomberg terminal can't be understated. He can be reached at JeffSpringer@BusinessPundit.com