The Canadian National Energy Board said it was coordinating a response to the discovery of crude oil released from the TransMountain oil pipeline in British Columbia.
The NEB said an emergency response team was deployed to the site of the spill to monitor Kinder Morgan's response to the incident and subsequent cleanup operations.
Kinder said the source of the leak was from a "small defect" in the pipeline.
"Contaminated soil is being safely removed and the company now estimates the total volume of oil released is estimated to be between 20 and 25 barrels," Kinder said in a Thursday statement.
The NEB said it was notified of the incident Wednesday afternoon.
The incident came as Canadian Natural Resources Minister Joe Oliver was announcing a new regulatory regime meant to ensure pipeline safety in the region. Authorities and aboriginal communities in British Columbia are concerned about the impact of the Northern Gateway oil pipeline, a project proposed by Enbridge Energy.
The NEB said the TransMoutain pipeline is closed and there is no immediate safety concern for local residents. The pipeline is designed to carry 300,000 barrels of oil per day.