Husky pipeline spill cost now pegged at $107 million

Husky pipeline spill cost now pegged at $107 million


Published on: February 24, 2017 | Last Updated: February 24, 2017 8:42 AM CST



A photograph of “buckles” in a Husky Energy Inc. pipeline that failed in July, spilling about 225,000 litres of heavy crude and diluent near and into the North Saskatchewan River. 



Seven months after one of its pipelines dumped around 225,000 litres of heavy crude near and into the North Saskatchewan River, Husky Energy Inc. says the cost of cleaning up the spill now sits at $107 million.

The Calgary-based company reported Friday that the cost was calculated as of Dec. 31 and will be incurred by Husky Midstream Limited Partnership (HMLP), of which it owns 35 per cent. Husky operates HMLP’s facilities.

The new cost figure — of which $88 million has been recovered through insurance, Husky said — represents a $17 million increase over the company’s previous report that the massive cleanup cost $90 million as of Sept. 30, 2016.

Husky pledged after the spill to cover all costs incurred by communities downstream of the spill. It has paid at least $5 million to Prince Albert, which was forced to establish secondary sources of potable water, and $140,000 to James Smith Cree Nation.

In a report issued late last year, a third-party engineering firm hired by Husky blamed the spill on riverbank slumping, which it said caused the company’s 16-inch pipeline to “buckle.” Husky’s report was largely silent on the timing of the spill, which is disputed.

The results of the Saskatchewan government’s investigation into the spill, which could determine whether Husky faces charges under provincial environmental legislation, are expected next month.




About prosperitysaskatchewan

Consultant on Saskatchewan's natural resources.

Posted on February 24, 2017, in economic impact, oil, political. Bookmark the permalink. Leave a comment.

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