U.S. pipeline regulators have ordered Plains All American Pipeline LP to purge a California pipeline system of crude to prevent corrosion after a separate pipeline ruptured and fouled Santa Barbara County shores last May.
The U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) said Plains must purge oil from Line 903, a 130-mile (209 km), pipeline that runs from Gaviota, California inland to Kern County. Plains also must purge three shut offshore oil pipelines operated by Freeport McMoRan that normally feed Line 903.
PHMSA said surveys have shown that Line 903 has "similar corrosion characteristics" as Line 901, which ruptured and spilled up to 3,400 barrels of crude in mid-May, fouling Santa Barbara County shores as well as wildlife.
Line 901 has been shut and empty since the spill, and the damaged section was excavated and removed shortly thereafter. Line 903, also shut, has been "full of crude oil" since late May except for a section that operates intermittently at lower pressures, PHMSA said.
PHMSA said in the order made public on Nov. 13 that the crude could contain corrosive elements and must be purged to head off another potential breach.
Plains has no estimate of when the lines will restart, according to regulatory filings. The company cannot restart them without PHMSA's approval.
PHMSA, as well as the U.S. Environmental Protection Agency, the U.S. Department of Justice and California state and county agencies are investigating the spill.
Plains has estimated that spill-related costs could reach $257 million, including fines, settlements and cleanup. That amount does not include lost revenue from the shutdowns, the company said in a quarterly filing with regulators.
Line 901 moved crude produced in Exxon Mobil Corp's Santa Ynez offshore oilfield from Las Flores north along the California coastline to Gaviota. Line 903 moved oil from Freeport McMorRan's Point Arguello offshore inland.
Recommended Reading
TPG Adds Lebovitz as Head of Infrastructure for Climate Investing Platform
2024-02-07 - TPG Rise Climate was launched in 2021 to make investments across asset classes in climate solutions globally.
Air Products Sees $15B Hydrogen, Energy Transition Project Backlog
2024-02-07 - Pennsylvania-headquartered Air Products has eight hydrogen projects underway and is targeting an IRR of more than 10%.
NGL Growth Leads Enterprise Product Partners to Strong Fourth Quarter
2024-02-02 - Enterprise Product Partners executives are still waiting to receive final federal approval to go ahead with the company’s Sea Port Terminal Project.
Sherrill to Lead HEP’s Low Carbon Solutions Division
2024-02-06 - Richard Sherill will serve as president of Howard Energy Partners’ low carbon solutions division, while also serving on Talos Energy’s board.
Magnolia Appoints David Khani to Board
2024-02-08 - David Khani’s appointment to Magnolia Oil & Gas’ board as an independent director brings the board’s size to eight members.