UPDATE 2-Husky shuts pipeline indefinitely after Canadian oil spill

Mon Jul 25, 2016 6:27pm EDT
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(Recasts with pipeline being shut indefinitely, Husky apology, details on wildlife impact, investigation)

By Rod Nickel and Nia Williams

July 25 (Reuters) - Husky Energy Inc has indefinitely closed a pipeline that leaked oil into a major Canadian river, a company official said on Monday, as the spill forced a second city to stop drawing drinking water.

Heavy oil and diluent leaked from a 19-year-old pipeline in Husky's Saskatchewan Gathering System on Thursday, flowing into the North Saskatchewan River, which supplies water to several communities in the western Canadian province.

The northern part of the system will remain down until Husky has "dealt with the crisis at hand," said Husky executive Al Pate, adding the company was "deeply sorry."

Canada's federal environment department is investigating the incident, said spokeswoman Lo Cheng.

The oil reached Prince Albert, population 35,000, hours earlier than expected on Monday, widening the impact and cost of the spill. Workers there raced to stretch a 30-kilometre (19-mile) hose to draw drinking water from another source.

A sheen was visible on the river in the morning, spurring the city to shut its water treatment plant intake, said city manager Jim Toye. It has two days worth of stored water before it must find another source.

"We thought we had more time," Toye said in an interview. "We (will) really hit the wall after two days."   Continued...