An exclusion zone is in place in Dornoch after a domestic gas tank was ruptured during work to set it under the ground.
The dumper truck was about to fill the area around the tank when the ground gave way causing it slide and damage it – causing the leak.
There were no casualties but residents and pupils at the nearby Dornoch Academy have been advised to stay indoors for the duration of the incident.
The 100 metre exclusion zone is likely to been in place for some time as it is understood no effort will be made to stop the gas leak.
The tank is believed to have contained around 600 litres of gas and it is feared any attempt to remove the truck poses too high a risk of sparks igniting the gas.
Police have called on people to avoid the Poles Road area of Dornoch where emergency services are still in attendance.
According to a police spokesman: “The incident involves a domestic gas tank which has been damaged following a collision involving a construction vehicle.
“A 100m exclusion is currently in place around the incident on Poles Road. Residents within that area have been spoken to and are being asked to either stay indoors or leave the area.
“We would ask anyone travelling into Dornoch to avoid using Poles Road and to use Evelix Road which is open.
He added: “It is expected that emergency services will remain in the area for some time and the local community are thanked for their patience while this incident is ongoing.”
The Scottish Fire and Rescue Service were called around 8.30am and sent two appliances to bring the incident under control with one currently remaining at the scene.
Police were called in a little later to deal with traffic management.