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Husky shuts pipeline indefinitely after Canadian oil spill

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 hours earlier than expected on Monday, widening the impact and cost of the spill. Workers there raced to stretch a 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.

Less than half of the 1,572 leaked bbl of oil had been recovered as of Monday, Saskatchewan environment official Wes Kotyk said.

Upstream of Prince Albert, the city of North Battleford stopped drawing drinking water from the river last week.

Once Prince Albert's stored water is exhausted, it hopes to use rainfall collected in a retention pond, buying itself four more days, Toye said. After that it would rely on water from a 12-inch diameter hose to the South Saskatchewan River, running along a highway.

Farms outside of Prince Albert that rely on city water have had supplies cut off.

Prince Albert's water plan covers two months, but Toye said its supply may be strained longer.

Reporting by Rod Nickel; Additional reporting by Nia Williams; Editing by Jeffrey Hodgson

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