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Exxon fined for Arkansas spill, sued over Yellowstone spill, and still just keeps making piles of money

Exxon fined for Arkansas spill, sued over Yellowstone spill, and still just keeps making piles of money

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The federal government wants to fine Exxon $2.7 million for the March oil spill from its 70-year-old pipeline in Mayflower, Ark. The ruptured pipe spewed 5,000 gallons of tar-sands oil and triggered the evacuation of 22 houses, some of which had to be bulldozed.

The U.S. Pipeline and Hazardous Materials Safety Administration sent a letter [PDF] to the Exxon Mobil Pipeline Co. on Wednesday proposing the civil penalty because the company failed to heed test results and take other steps that could have prevented the spill. The fine isn’t final yet; Exxon has 30 days to file an appeal. And an appeal seems likely considering that Exxon is claiming PHMSA’s analysis contains “fundamental errors.”

Meanwhile, Montana and the U.S. Department of Interior informed Exxon last week that they plan to sue the company over a 63,000-gallon oil spill from a pipeline two years ago in the Yellowstone River. That’s on top of $3.4 million in state and federal fines that have already been assessed. From the Associated Press:

The move puts Exxon on notice that Montana and the Department of Interior expect the company to make up for harm done to wildlife and their habitat. The company also is being asked to pay for long-term environmental studies and for lost opportunities for fishing and recreation during and since the cleanup.

Exxon spent millions on cleanup, but it turns out that its cleanup workers did a pretty shitty job:

“You picked up the oil, but you picked up the stuff that makes the habitat work, as well,” said Bob Gibson, a spokesman for Montana Fish, Wildlife and Parks. “We know there’s damage out there that has not been mitigated, cleaned up or compensated for. We need to decide what further can be done.”

But what does Exxon care? The company made $45 billion in profit last year. A couple million here and there in fines and legal fees doesn’t even make a dent.


Source
Montana, U.S. to seek damages for oil spill, Associated Press
Notice of probable violation and proposed compliance order, PHMSA
Exxon faces $2.7 mln fine for Arkansas pipeline spill, Reuters

John Upton is a science fan and green news boffin who tweets, posts articles to Facebook, and blogs about ecology. He welcomes reader questions, tips, and incoherent rants: johnupton@gmail.com.

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Exxon fined for Arkansas spill, sued over Yellowstone spill, and still just keeps making piles of money

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Arkansas tar-sands spill was an accident 60 years in the making

Arkansas tar-sands spill was an accident 60 years in the making

National Wildlife Federation

Cleanup crews at a marsh covered with oil from the Mayflower spill in April.

The pipeline spill that flooded Mayflower, Ark., with up to 290,000 gallons of tar-sands oil in March was an accident that had been waiting to happen — for more than 60 years.

The pipeline that ruptured beneath the town was defective, with manufacturing flaws going undetected since it was laid in the 1940s, according to independent laboratory tests. ExxonMobil released a short summary of test results Wednesday.

The findings bring into question the integrity of the entire Pegasus pipeline system — and other oil pipelines that crisscross the nation. The Pegasus system, which runs from Illinois to Texas, was laid in 1947 and 1948. The pipeline manufacturer, Ohio-based Youngstown Sheet and Tube Co., is no longer in business but was reportedly one of the leading suppliers of pipelines in the 1940s.

The Pegasus pipeline remains shut down following the spill. Cleanup efforts are still underway. ExxonMobil is being sued over the spill by the federal and state governments.

From ExxonMobil’s press statement about the lab results:

Based on the metallurgical analysis, the independent laboratory concluded that the root cause of the failure can be attributed to original manufacturing defects — namely hook cracks near the seam.

Additional contributing factors include atypical pipe properties, such as extremely low impact toughness and elongation properties across the ERW [electric resistance welded] seam.

There are no findings that indicate internal or external corrosion contributed to the failure.

A seam is the welded part of a pipeline, either running along its spine or holding two pieces of piping together. By the American Petroleum Institute’s definition, a hook crack is caused by flaws at the edge of the metal plate used to create sections of pipeline.

The lab tests were required [PDF] by the Pipeline and Hazardous Materials Safety Administration (PHMSA), but the agency did not release the full results, nor did it comment to the press, citing the ongoing investigation. All we got was ExxonMobil’s five-paragraph statement summarizing the results.

Based on the laboratory findings, though, PHMSA officials will likely want to scour ExxonMobil’s records to determine which other sections of pipeline were provided by the same manufacturer, and find out where else the manufacturer’s pipelines are still being used in the vast networks that snake through the nation.

PHMSA will also be asking questions about Exxon’s apparent failure to adequately test the line when it was installed, or to detect the flaws during tests in more than six decades of operations since.

The pipeline was last inspected in February, but the company is not releasing the results publicly, claiming that would reveal trade secrets. (Yes, the old trade secrets excuse again.)

Electric resistance welded pipe like that which tore open beneath Mayflower has welding along its spine that is particularly vulnerable to rupture. The Pegasus pipeline at Mayflower suffered a 22-foot tear when it burst. From PHMSA’s website:

A failure in the weld seam of this type of pipe can propagate for a distance along the pipe and can quickly release large quantities of product to the environment. Low-frequency (LF) ERW pipe installed prior to 1970 in particular can be susceptible to such failures.

The new lab findings call to mind the natural-gas pipeline explosion that killed eight people and destroyed 38 homes in the San Francisco exurb of San Bruno in 2010. Federal investigators found that PG&E’s gas pipeline had welding and manufacturing flaws when it was laid in 1956, causing it to tear open along a faulty seam and explode. PG&E was faulted for failing to inspect the pipeline and was subsequently ordered to inspect and replace pipes throughout its entire gas network.

John Upton is a science fan and green news boffin who tweets, posts articles to Facebook, and blogs about ecology. He welcomes reader questions, tips, and incoherent rants: johnupton@gmail.com.

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Arkansas tar-sands spill was an accident 60 years in the making

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