Husky Energy has spent $90M responding to Sask. pipeline spill

Husky Energy says it has spent about $90 millionresponding to a pipeline spill in July that sent some 225,000 litresof heavy oil and diluent into the North Saskatchewan River.

The Calgary-based company saidThursdaythat it believes theamount spent up to Sept. 30, when its most-recent quarter ended,represents the cost of the incident, but that could be revised.

• Husky Energy granted 30-day extension to file report on cause of oil spill
• Husky Energy posts $1.4B profit in 3rd quarter, lifted by asset sales

The company wrapped up shoreline cleanup efforts earlier thismonth after recovering about 210,000 litres.

Investigations into the cause of the incidentand the overallimpactare still ongoing, with Husky (TSX:HSE) asking last week fora 30-day extension to file a detailed report on the spill.

Husky now has untilNov. 21to report on further details of thespill, including a metallurgic review of the failed pipe and ageotechnical report on the land where the failure occurred.

The spill, affecting an area of about 41,500 square metres,forced the Saskatchewan cities of North Battleford, Prince Albertand Melfort to shut off their water intakes from the river and findother water sources for almost two months.

• Husky Energy granted 30-day extension to file report on cause of oil spill
• Husky Energy reimburses James Smith Cree Nation for oil spill cleanup

The company said it expects to recover the associated costs,which have been incurred by Husky Midstream Limited Partnership.

Husky is the operator and also holds a 35 per cent interest in thepartnership.

Earlier this year, Husky sold off the other 65 per cent ownershipof the pipeline network involved in the spill, along with othermidstream assets, for an after-tax gain of $1.3 billion in itslatest results.

The asset sale helped bring a $1.4-billion profit for the thirdquarter, or $1.37 per share, which contrasted with a year-earlierloss of $196 million, or 20 cents per share.

The Calgary-based company also recorded a $167-million after-taxgain from the disposition of some Western Canada production assets.

After adjustments, Husky had a $100-million loss, above theyear-earlier adjusted loss of $91 million.

Husky also announced that Asim Ghosh will retire as president andCEO onDec. 5after seven years as the company's top executive.

Hissuccessor will be Rob Peabody, Husky's chief operating officer since 2006.