Saskatchewan city starts claims process after oil spill

PRINCE ALBERT, Saskatchewan, Aug. 11 (UPI) -- Husky Energy is called on to come forward with the finances necessary to offset the costs associated with a July oil spill, a Saskatchewan city government said.

The City of Prince Albert, the third largest in the province, said it started a claims process to recover what it said were "millions of dollars" in losses tied to an oil spill from a Husky Energy pipeline system.

About 1,500 barrels of oil were released near the banks of the North Saskatchewan River after a pipeline rupture in late July. Husky Energy said its monitoring systems recorded a pressure anomaly, but no leak, on the pipeline system the night before the spill.

The city government said that, apart from the money it spent on remediation and the construction of two alternate water pipelines, wages were lost because some area workers were laid off from civic facilities.

"The city is doing their part to make sure they are taken care of and we have no doubt that Husky will then reimburse us for the lost hours to our staff and facilities during the oil spill situation," Mayor Greg Dionne said in a statement.

Some water restrictions were eased as the city moved to alternate supplies. The city government declared a state of emergency immediately after the release after local intakes for a water treatment plant along the river were closed because sheen had migrated toward its systems.

The city hired financial firm Deloitte to assist in the claims process. Dionne said preliminary talks with the company have been so far constructive.

In its latest update, Husky said twelve booms were still deployed in the North Saskatchewan River to contain any potential contamination. A claims process is underway, though it's unclear if that effort is coordinated with the city's plea.