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Magellan pipeline subsidiary to pay $18M for pipeline spills in 3 states

Magellan Midstream Partners LP subsidiary Magellan Pipeline Company LP has settled Clean Water Act violations charges for about $18 million in penalties and remedies after pipeline spills in Texas, Nebraska and Kansas.

Under the settlement with the U.S. Department of Justice and the U.S. EPA, Magellan Pipeline agreed to complete about $16 million of injunctive relief across its 11,000-mile pipeline system and pay a $2 million civil penalty, according to a Jan. 19 news release from the DOJ.

The complaint alleged that Magellan Pipeline spilled about 5,177 barrels of petroleum products along its pipeline system: 482 bbl of gasoline in Texas City, Texas; 650 bbl of diesel fuel, 655 bbl of jet fuel and 1,529 bbl of gasoline near Nemaha, Neb.; and 1,861 bbl of diesel fuel near El Dorado, Kan. Each of these spills impacted local waterways. The Texas and Kansas incidents were caused by pipeline ruptures, while the breaches in Nebraska were caused by a third party.

In addition to the penalty, Magellan agreed to complete spill cleanup in Nebraska, establish an annual training program for third-party damage prevention, update and improve information on certain kinds of corrosion, update the company's integrity management plan, and create a public webpage detailing types of pipeline releases and Magellan's response plans for each.

"Companies need to take the necessary precautions to make sure fuel is transported safely and responsibly. This settlement puts in place important pipeline safety and spill prevention measures that make this industry safer for communities," Cynthia Giles, assistant administrator for EPA's Office of Enforcement and Compliance Assurance, said in a statement.

The consent decree, which is subject to a 30-day public comment period and court approval, was filed Jan. 19 in the U.S. District Court for the Northern District of Oklahoma, Tulsa.