(MintPress) – During a time of growing debate over the construction of the Keystone pipeline in the U.S., a report released this week by the National Transportation Safety Board (NTSB) cites a lack of government regulations and mismanagement by a Canadian oil pipeline company for the most expensive oil leak on American land.

A faulty Enbridge Inc. pipeline in Michigan led to a leak that dumped 843,000 gallons of crude oil into the Kalamazoo River — a spill that wasn’t detected for 17 hours, according to the NTSB. A local utility worker was the first to report the incident. Three hundred people were identified as suffering effects related to benzene exposure from the spill.

According to the NTSB report, the leaked pipeline — 6B — was scheduled to be shut down when the rupture occurred. While those working in the Enbridge control room in Canada were alerted to low pressure in the pipeline, action was not taken to remedy the problem. Instead, controllers started the line twice again, which resulted in the majority of oil being spilled out into the creek and river — 683,000 gallons were released after the restarts.

“The investigation identified a complete breakdown of safety at Enbridge. Their employees performed like Keystone Kops and failed to recognize their pipeline had ruptured and continued to pump crude into the environment,” NTSB Chairman Deborah A.P. Hersman said in a press release. “Despite multiple alarms and a loss of pressure in the pipeline, for more than 17 hours and through three shifts they failed to follow their own shutdown procedures.”

The report indicates the spill resulted from a “gaping breach” in the pipe that measures more than 80 inches, caused by corrosion-fatigue cracks that grew over time, linking together to create the open space. It also states the Enbridge had been aware of the cracks in 2005, but steps to repair the pipeline were not taken.

While the Keystone Pipeline is being pushed by Enbridge’s rival company, TransCanada, there are correlations between the two entities. Both are Canadian corporations that are seeking to transport Canadian oil through the U.S. in order to access the Gulf, where oil can then be exported to foreign markets.

The Keystone pipeline has been a hot issue among conservatives and liberals, with those on the right favoring the creation of the pipeline, citing the tremendous growth of jobs and potential to lower gas prices, as more oil would be flooded into the market. Those on the left, however, point to environmental concerns and incidents such as Enbridge’s in Michigan, claiming there is a need for more government regulations before a pipeline should be considered.

Cleaning up after Michigan spill

The 2010 spill near Marshall, Mich. is still in the process of being cleaned up. On its website, Enbridge indicates that the process is nearly complete and is now open for recreational use, two years later. However, it also indicates that visitors to the area will continue to see the impact of the spill.

“The public could see oil sheen or flecks of oil in the river, even after sections open,” Enbridge states on its website. “Remaining oil found in the river is not hazardous upon incidental contact, according to the results of a study conducted by the Michigan Department of Community Health. As the river opens, river access locations include a cleaning station for any residual oil found on watercraft or skin”

Cleanup costs for the spill were $800 million.

Aside from river restoration efforts, the pipeline company has also made claims that it has cleaned up its act, stating in a press release that it has investigated the incident on its own and has made changes to prevent a similar pipeline spill in the future.

“Enbridge completed a detailed internal investigation of this incident in the fall of 2010 and has made numerous enhancements to the processes and procedures in our control center since the Line 6B accident, including the training provided to pipeline operators, and has made significant changes in this critical component of our operations,” said Enbridge President of Liquids Pipelines Stephen J. Wuori.

While the cost of the cleanup is clearly an incentive for companies to operate safely, according to the NTSB report, government regulations do not currently exist to make sure that this happens.

“This accident is a wake-up call to the industry, the regulator and the public. Enbridge knew for years that this section of the pipeline was vulnerable yet they didn’t act on that information,” Hersman said. “Likewise, for the regulator to delegate too much authority to the regulated to assess their own system risks and correct them is tantamount to the fox guarding the hen house. Regulators need regulations and practices with teeth, and the resources to enable them to take the corrective action before a pill. Not just after.”

Doubts from spill linger

President Barack Obama blocked applications in January for the Keystone pipeline, citing more time to investigate possible environmental hazards. This drew criticism from those in favor of the pipeline, including union organizations who saw it as a means for job creation.

According to the Associated Press, TransCanada applied to the State Department for permission to build the pipeline to Nebraska, which would then be connected with another set of pipelines leading to the Gulf Coast. The company hopes to begin the process full force by 2013.

The State Department is expected to conduct an environmental review of the proposed pipeline before any decisions are made.

Executive Director Jane Kleeb of Bold Nebraska told the Associated Press the proposed pipeline goes through an aquifer that serves eight states.

“The fundamental facts remain: Americans are being asked to put clean water at risk for an extreme form of energy that will do nothing to our energy security,” Kleen said.