Federal agency shuts down Keystone pipeline

June 3, 2011 - 3:43 PM

WASHINGTON (AP) — The U.S. pipeline safety agency has blocked a Canadian company from restarting its Keystone oil pipeline until U.S. officials are satisfied the company has made required repairs and completed safety tests.

The order by the Pipeline and Hazardous Materials Safety Administration cites two leaks last month on the 1,300-mile pipeline, which carries oil from Canada through North Dakota to Illinois and Oklahoma.

A spokeswoman for the pipeline agency said Friday that federal inspectors will closely review repair work done by the pipeline's owner, Calgary-based TransCanada Oil Pipeline Operations Inc. The company reported a May 7 leak of about 400 barrels in North Dakota, and a leak of about 10 barrels last Sunday in Kansas.

TransCanada is seeking to build a second pipeline from western Canada to the Texas Gulf Coast.