Study: Economic damage from Keystone spill could far exceed benefits

The risks of an economically damaging accident are higher than those for conventional crude, the report said, because pipelines carrying oil sands crude are more prone to spills, an argument long made by opponents of the Keystone XL project…

“Given where the pipeline is scheduled to go, it’s not inconceivable that a spill like the Enbridge pipeline spill could occur,” said Sean Sweeney, the institute’s director and a co-author of the study. “And if it contaminated a major waterway in a remote area, it could take a long time to deal with.”

TransCanada, whose application to build Keystone XL was rejected by President Obama in January, dismissed the report and cited an initial review by the State Department that found that the pipeline would have little adverse environmental impact if operated properly.