FARGO (AP) - City officials are withdrawing opposition to an oil pipeline that would run through eastern North Dakota, after reaching an agreement with developers.

City commissioners gave unanimous approval Monday to an agreement with TransCanada Keystone Pipeline, which plans to build a 218-mile stretch of pipeline through eight counties in the state. Fargo officials worried a leak in the pipeline would threaten the city's drinking water supply.

The route is proposed near the Sheyenne River and Lake Ashtabula, a secondary water supply for the city.

"I think we take it with mixed emotions," Mayor Dennis Walaker said. "We wanted more. We didn't get everything. It appears to be a gentleman's agreement between the city of Fargo and Keystone."

Under the agreement, Keystone officials will consult the city on an emergency response plan and will notify Fargo of proposed expansions in the Lake Ashtabula drainage basin or the other water systems that affect the city.

Keystone also will make design changes to minimize the risk of an oil spill reaching Fargo through Lake Ashtabula and the Sheyenne River, under the agreement.

Fargo initially asked for the pipeline to be moved, but Keystone said a move created too many problems, City Attorney Erik Johnson said. Those involved in the negotiations are satisfied with the settlement, he said.

City commissioners met in a closed session for about 20 minutes Monday before approving the agreement during the open regular meeting.

Keystone project spokesman Jeff Rauh, who attended the public meeting, said construction is still planned to start next year.

"Overall, we feel like we had a tremendously strong proposal," Rauh said.

The pipeline would carry an estimated 590,000 barrels of crude oil a day from Alberta to refineries in Illinois and Oklahoma. In North Dakota, it would run from near Walhalla to near Cogswell.

Construction could begin in May if the North Dakota Public Service Commission approves a route permit.