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URGENT: Video shows beheading of second American journalist

DUBAI (Reuters) - The Islamic State militant group released a video purporting to show the beheading of U.S. hostage Steven Sotloff, the SITE monitoring service reported on Tuesday. A masked figure in the video also issued a threat against a British hostage, a man the group named as David Haines, and warned governments to back off "this evil alliance of America against the Islamic State", the monitoring service said. (Reporting by William Maclean, Editing by Angus MacSwan)

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Colonial Pipeline to start deliveries to New Jersey on Friday

By Janet McGurty

NEW YORK (Reuters) - Colonial Pipeline, the nation's largest oil products pipeline, began deliveries to its tank farm in Linden, New Jersey, the terminus of the line, after it had shut for Hurricane Sandy earlier in the week.

It expects to deliver 700,000 bpd, which is about normal for the destination, spokesman Steve Baker said.

Earlier, Colonial said it restarted deliveries to Buckeye's Linden terminal and by later Friday it expects to restart two more delivery lines to other terminals, with another by the end of the day and two more over the weekend.

With the restart of these lines, about one-quarter of the shipper terminals served by Colonial from the Linden Tank Farm will be supplied.

The tank farm, which is the northern terminus of the 5,500 mile pipeline as well as the delivery point of the gasoline and heating oil contract on NYMEX futures.

(Reporting By Janet McGurty; Editing by Chizu Nomiyama and M.D. Golan)