Some residents of an oil-splattered Burnaby, B.C. neighbourhood face the loss of their homes after an excavator ruptured a major crude oil pipeline.

Mayor Derek Corrigan said Wednesday if oil from the ruptured pipeline seeped into the siding and foundations of 11 damaged homes in the Vancouver suburb, "those houses may not be salvageable.

"Those were the houses where we urged very strongly for the residents to move out for the night and possibly for longer, while others were allowed to return voluntarily," he said.

About 90 people stayed elsewhere Tuesday night, in part to avoid the intolerable stench of the oil.

Mario and Sabrina Siniscalchi were to move into their brand-new dream home on Wednesday. "As you can see, it's been completely splattered with oil, from the bottom right up to the roof," Mario told CTV British Columbia.

"It's not beautiful now," said Sabrina of the home. "My main concern is the soil and all the effects it might have on my children. I have four boys."

Everything in Sheila MacFayden's front yard was covered with a mist of oil droplets. "It's so sticky. It's all on the bottom of your shoes," she said.

MacFayden wondered if it was safe to let her puppy or kids outside.

"Somebody needs to step up to the plate and take care of the homeowners here," Mario said.

Crews spent the day shoveling and soaking up oil using sand and peatmoss to lift the stain of the black crude. Asphalt on the Barnet Highway is simply being torn up rather than cleaned to remove the tar-like oil.

Kinder Morgan Canada, which owns the pipeline, estimates 234,000 litres of oil (about 1,400 barrels) escaped as the ruptured line spewed for 30 minutes.

New Democrat MP Bill Siksay, who represents Burnaby Douglas riding, said the accident raises questions about how well protected residents who live near industrial infrastructure, such as pipelines, are.

"Burnaby Douglas is criss-crossed by pipelines, so we want to make sure that people are safe where they live,'' he said.

Baird pleased with 'quick' action

Federal Environment Minister John Baird, whose department is responsible for any marine cleanup, surveyed the Burrard Inlet, where some of the oil seeped down to the water, from a patrol boat Wednesday afternoon.

"I'm pleased to see that such action was taken very quickly. The overwhelming majority that made its way into the water was able to be contained," he said.

Oil-containment booms kept the spill from moving further into the heavily-used inlet and several dozen people were working along the shoreline.

The National Energy Board has been appointed as the lead agency in the investigation, and Baird promised the investigation will be free from political interference.

As to who should pick up the clean-up tab, "I can tell you I'm a big believer in 'polluter pays'," he added.

The pipeline carries crude oil from Edmonton to the Burnaby area, where it is stored before being piped onto ocean tankers for distribution.

The city of Burnaby and the pipeline company have been sparring over who's responsible for the accident.

The city's contractor claims the plans they received showing the pipeline's location were flawed. The company insists they gave the right location.

Kinder Morgan's record

"I think that Kinder Morgan has a record that is not enviable," Corrigan said.

In Walnut, Calif., an excavator hit a petroleum pipeline in 2004, causing an explosion that left five people dead. Four companies were fined, Kinder Morgan most heavily.

A report by the Office of the State Fire Marshall blamed Kinder Morgan for not properly marking the pipeline's location.

"Kinder Morgan's record in the U.S. and throughout North America is stellar and better than average," said Ian Anderson, president of Kinder Morgan Canada.

"The investigation at the end of the day will determine cause," he said. "At this point, our focus is not on blame. Our focus is on cleanup, communication with the residents, making it as easy for them to get information as possible."

Kinder Morgan's inspector gave the contractor the pipeline routing information, Anderson said. "The maps were provided. We're doing our due diligence to understand what the cause was."

Cusano Contracting, the company doing the excavating, did not comment Wednesday.

Baird said the NEB will look at how the spill happened and how it could have been prevented. In addition, Environment Canada officials will see if the federal Environment Act was violated, which could result in charges.

With reports from CTV's Sarah Galashan, CTV British Columbia correspondents and files from The Canadian Press