The Wall Street Journal Archives | Email alerts

Nov. 30, 2017, 8:05 p.m. EST

TransCanada could lose Keystone permit over oil spill, South Dakota regulator says

Pipeline could be shut down if systemic problems found

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    TC Energy Corp. (TRP)
  • X
    TC Energy Corp. (TRP)

or Cancel Already have a watchlist? Log In

By Vipal Monga


Reuters/Dronebase
An aerial view shows the darkened ground of the Keystone oil spill near Amherst, S.D.

A South Dakota state official said Thursday that a federal agency’s diagnosis of a recent leak in TransCanada Corp.’s Keystone pipeline could signal a systemic problem and could lead the state to revoke the permit that allows the company to operate the pipeline.

Gary Hanson, vice chairman of the South Dakota Public Utilities Commission, said in an interview Thursday that recent findings on the cause of the leak raised concerns about more widespread problems, because they showed the rupture in the pipe may have been caused by a weight placed on the pipeline during its construction meant to keep it from floating in groundwater. The commission regulates utilities and pipelines in the state.

“I’m worried about their standard operating procedure,” said Hanson. “The permit gives them permission to construct and operate the pipeline in the state of South Dakota, provided they follow all contingencies outlined in the permit. They may not have abided by all of those contingencies.”

Hanson said the utilities commission wouldn’t make a decision on revoking the permit before receiving a final report from the federal agency, the Pipeline and Hazardous Materials Safety Administration (PHMSA.) Revoking the permit could force TransCanada /zigman2/quotes/200192679/composite TRP -4.03%   /zigman2/quotes/203758221/delayed CA:TRP -2.98%   to stop pumping oil through the pipeline, a major artery for crude deliveries to refineries in the U.S.

Am expanded version of this report appears on WSJ.com.

Click to Play

How the personalization of beauty could change how you buy shampoo

We tried the shampoo that customizes ingredients on an individualized basis - a new trend in the beauty industry.

Also popular on WSJ.com:

Six minutes to counterattack: South Korea shows plan to strike back at North’s missiles.

T. Boone Pickens lists longtime Texas ranch for $250 million.

/zigman2/quotes/200192679/composite
US : U.S.: NYSE
$ 44.00
-1.85 -4.03%
Volume: 370,536
Sept. 21, 2020 11:17a
P/E Ratio
13.03
Dividend Yield
5.50%
Market Cap
$43.12 billion
Rev. per Employee
$1.45M
loading...
/zigman2/quotes/203758221/delayed
CA : Canada: Toronto
$ 58.67
-1.80 -2.98%
Volume: 373,942
Sept. 21, 2020 11:02a
P/E Ratio
12.87
Dividend Yield
5.52%
Market Cap
$56.84 billion
Rev. per Employee
$1.88M
loading...

Get news alerts on TC Energy Corp. — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.