By Ketki Saxena
Investing.com -- A report by engineering consulting firm RSI Pipeline Solutions has discovered that a combination of pipeline design issues, operational lapses, and construction problems led to the massive oil spill in northeastern Kansas on the Keystone pipeline system in December 2022. The spill saw nearly 13,000 barrels of crude oil released into a creek running through a rural pasture in Washington County, raising alarms among environmentalists and leading to increased scrutiny from US government regulators.
The report indicates that TC Energy (TSX:TRP), the Canadian-based operator of the Keystone pipeline system, had underestimated the risks associated with a bend in the pipeline located in Washington County. This bend was found to be "overstressed" since its installation in December 2010, likely due to construction activities altering the surrounding land.
Additionally, RSI Pipeline Solutions raised concerns regarding TC Energy's oversight of the manufacturing process for its pipeline. The report's authors could find no evidence of a pre-installation inspection of the welds on the bend in question, calling into question the overall quality assurance and management practices of TC Energy.
"The lack of an inspection report means that, at a minimum, record-keeping procedures were not followed and, at worst, the report said, “The weld inspections were never performed.”
The report added that 108 other pipe fittings manufactured for the Keystone system in 2010 could have “imperfections” similar to those in the Washington County bend. All of them were replacements for other fittings found to be deficient.
Because other bends made on the same day had weld flaws that were repaired, the report found it “plausible” that the Washington County bend also had flaws "repaired but not recorded.”
TC Energy has yet to issue a public statement regarding the findings of the RSI Pipeline Solutions report.
The Keystone pipeline system is a critical component of North American energy infrastructure, transporting crude oil from Canada's oil sands region to refineries in Texas. With the recent spill highlighting potential vulnerabilities in the system, the pressure is now on TC Energy to address these issues and ensure the safe and reliable operation of its pipelines.