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Kansas residents hold their nose as crews mop up massive U.S. oil spill

Published 12/10/2022, 10:09 AM
Updated 12/11/2022, 09:32 AM
© Reuters. FILE PHOTO: Emergency crews work to clean up the largest U.S. crude oil spill in nearly a decade, following the leak at the pipeline operated by TC Energy in rural Washington County, Kansas, U.S., December 9, 2022.  REUTERS/Drone Base

By Erwin Seba and Nia Williams

WASHINGTON, Kan. (Reuters) -Residents near the site of the worst U.S. oil pipeline leak in a decade took the commotion and smell in stride as cleanup crews labored in near-freezing temperatures, and investigators searched for clues to what caused the spill.

A heavy odor of oil hung in the air as tractor trailers ferried generators, lighting and ground mats to a muddy site on the outskirts of this farming community, where a breach in the Keystone pipeline discovered on Wednesday spewed 14,000 barrels of oil.

Pipeline operator TC Energy (NYSE:TRP) said on Friday it was evaluating plans to restart the line, which carries 622,000 barrels per day of Canadian oil to U.S. refineries and export hubs.

"We could smell it first thing in the morning; it was bad," said Washington resident Dana Cecrle, 56. He shrugged off the disruption: "Stuff breaks. Pipelines break, oil trains derail."

TC Energy did not provide details of the breach or say when a restart on the broken segment could begin. Officials are scheduled on Monday to receive a briefing on the pipeline breach and cleanup, said Washington County's emergency preparedness coordinator, Randy Hubbard, on Saturday.

OIL FLOWS TO CREEK

Environmental specialists from as far away as Mississippi were helping with the cleanup and federal investigators combed the site to determine what caused the 36-inch (91-cm) pipeline to break.

Washington County, a rural area of about 5,500 people, is about 200 miles (322 km) northwest of Kansas City.

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The spill has not threatened the water supply or forced residents to evacuate. Emergency workers installed booms to contain oil that flowed into a creek and that sprayed onto a hillside near a livestock pasture, said Hubbard.

TC Energy aims to restart on Saturday a pipeline segment that sends oil to Illinois, and another portion that brings oil to the major trading hub of Cushing, Oklahoma, on Dec. 20, Bloomberg News reported, citing sources. Reuters has not verified those details.

It was the third spill of several thousand barrels of crude on the 2,687-mile (4,324-km) pipeline since it opened in 2010. A previous Keystone spill had caused the pipeline to remain shut for about two weeks.

"Hell, that's life," said 70-year-old Carol Hollingsworth of nearby Hollenberg, Kansas, about the latest spill. "We got to have the oil."

TC Energy had around 100 workers leading the cleanup and containment efforts, and the U.S. Environmental Protection Agency was providing oversight and monitoring, said Kellen Ashford (NYSE:AINC), an EPA spokesperson.

U.S. regulator Pipeline and Hazardous Materials Administration (PHMSA) said the company shut the pipeline seven minutes after receiving a leak detection alarm.

CRUDE BOTTLENECK

A lengthy shutdown of the pipeline could lead to Canadian crude getting bottlenecked in Alberta, and drive prices at the Hardisty storage hub lower, although price reaction on Friday was muted.

Western Canada Select (WCS), the benchmark Canadian heavy grade, for December delivery last traded at a discount of $27.70 per barrel to the U.S. crude futures benchmark, according to a Calgary-based broker. On Thursday, December WCS traded as low as $33.50 under U.S. crude, before settling at around a $28.45 discount.

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"The real impact could come if Keystone faces any (flow) pressure restrictions from PHMSA, even after the pipeline is allowed to resume operations," said Ryan Saxton, head of oil data at consultants Wood Mackenzie.

Latest comments

what is bad for the planet = eventually bad for business. another basic fact.
How do wind turbines have blades and other components without resins derived from petroleum? How do we have sterile medical devices ( ie syringes for vaccines) without plastic resins and packaging?
Among other things look up: Bioplastics, Biodegradable, Eco/recycled Plastics and alternatives to plastics
big oil = bad for planet. anyone still don't understand basic facts?
Kansas loves jet fuel. grow up
It’s Russians
Gee could we have a pipeline it sounds fantastic
They are fantastic. Literally a million miles of pipelines in North America with an amazing safety record coupled with being highly efficient.
maybe a precursor of biggest santa rally in history?
Cufjfjfk
Investing.com has 24 hours of Gold Futures spam advertising. NOT DISCUSSIONS!!!!!!!
it's pretty annoying
Absolutely true.
Is it worse than smell the rotting bird carcasses around windmill farms.
There is nothing more destructive to the environment and wildlife then wind powered windmills. They need outlawed immediately.
a triggered petro troll as usual. Hope they send you to the front lines soon William, or should I say Ivan?
Yeah! We need gas powered windmills!
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