Husky Energy says ground movement to blame for pipeline spill that contaminated drinking water of thousands

Husky Energy says ground movement is the reason a section of its pipeline burst in late July, leaking more than 220,000 litres of crude oil into the North Saskatchewan River and jeopardizing the drinking water of thousands downstream.

The company said a detailed report into the incident showed the sudden break was caused by "geotechnical activity" that forced a section of the pipe to buckle.

The pipeline leaked an estimated 225,000 litres of heavy oil and condensate and affected an area of about 41,500 square metres, with about 40 per cent of the spill liquid flowing into the river.

The incident forced the Saskatchewan cities of North Battleford, Prince Albert and Melfort to shut off their water intakes from the river and find other water sources for almost two months. First Nations along the river were left scrambling as well, and one even had to crowd fund in order to recoup spill cleanup costs.

Husky said it has spent about $90 million responding to the spill and wrapped up shoreline clean−up efforts in October after recovering about 210,000 litres of what spilled. Provincial regulators continue with their own investigation into the incident and will file a separate report.

Both the provincial government and federal government are investigating the incident for possible breaches to their respective environmental, wildlife, and fisheries legislation.

"Once we have the final report completed by the ministry I think we would be in a better position to speak to what may be some of the consequences to Husky for this," Saskatchewan Minister of Energy and Resources Dustin Duncan told reporters on Thursday. "But aside from what they’ve already paid out in terms of communities and things of that nature, I think it’s too soon to speculate what that might be."