U.S. orders safety review of Keystone oil pipeline

Reuters News
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Posted: Jun 03, 2011 3:03 PM
U.S. orders safety review of Keystone oil pipeline

WASHINGTON (Reuters) - The U.S. pipeline safety regulator said on Friday that TransCanada Corp cannot restart its Keystone oil pipeline until the agency is satisfied the company has made all required repairs and carried out safety tests.

The Pipeline and Hazardous Materials Safety Administration issued a so-called corrective action order to TransCanada for two incidents in this month involving oil leaks from small diameter pump station pipe fittings.

PHMSA required the company to perform metallurgical testing and root cause failure analysis, review other parts of the Keystone pipeline system for concerns similar to those involved in the recent failures, make permanent repairs and continue ongoing monitoring.

(Reporting by Tom Doggett)