Thursday, 7 November 2013

Exxon faces $2.7 million fine for Arkansas pipeline spill



Exxon Mobil Pipeline Co (XOM) faces a fine of nearly $2.7 million for a pipeline spill of thousands of barrels of Canadian crude oil in an Arkansas suburb last spring, the U.S. pipeline safety office said on Wednesday. The Pipeline and Hazardous Materials Safety Administration (PHMSA) found nine probable violations of safety rules in the rupture of the nearly 70-year old Pegasus pipeline that forced residents to evacuate their homes.

The 95,000 barrel-per-day pipeline has been shut since March 29 after spilling about 5,000 barrels in Mayflower, Arkansas. In August, PHMSA said an original manufacturing defect by a now defunct Youngstown, Ohio steel pipe company appeared to have led to the accident. On Wednesday, the agency said Exxon did not adequately account for risks on the pipeline. Read more.

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