Magellan Pipeline Settles with EPA for Alleged Clean Water Act Violations

The U.S. Environmental Protection Agency (EPA) and the Department of Justice today announced a settlement with Magellan Pipeline Company, L.P., for alleged violations of the Clean Water Act related to gasoline, diesel and jet fuel spills in Texas City, Texas, Nemaha, Nebraska and El Dorado, Kansas. Magellan has agreed to complete approximately $16 million of injunctive relief across its 11,000-mile pipeline system and pay a $2 million civil penalty.

According to a complaint and consent decree filed today in U.S. District Court for the Northern District of Oklahoma, Tulsa, Oklahoma-based Magellan is responsible for spilling a combined total of approximately 5,177 barrels of petroleum products in three separate incidents. The complaint alleges that Magellan was responsible for the following illegal discharges:

• On Feb. 24, 2011, a Magellan owned 18-inch refined petroleum products pipeline ruptured in an area north of Texas City, Texas, and spilled approximately 482 barrels of gasoline.  The spill impacted a local watercourse known as Pierre Bayou. 
• On Dec. 10, 2011, two of Magellan’s refined petroleum products pipelines were struck by a third-party who was operating heavy machinery while attempting to clear a hedgerow in an agricultural field near the town of Nemaha, Neb.  The strikes resulted in the spilling of approximately 650 barrels of diesel fuel from one line, and approximately 655 barrels of jet fuel and 1,529 barrels of gasoline from the other.  The spills impacted a local watercourse know as Jarvis Creek.  Cleanup efforts are still underway and will be completed as part of the proposed consent decree.
• On May 4, 2015, a Magellan owned 10-inch refined petroleum products pipeline ruptured near the City of El Doroado, Kan., and spilled approximately 1,861 barrels of diesel fuel.  Diesel fuel form that spill impacted a local watercourse known as Constant Creek.

The consent decree requires Magellan to complete approximately $16 million of injunctive relief across its 11,000-mile pipeline system, including:

1. Completing an ongoing spill cleanup effort in Nebraska;
2. Instituting an enhanced annual training program for its third-party damage prevention staff;
3. Updating and enhancing company information resources concerning selective seam corrosion;
4. Updating its integrity management plan; and
5. Creating a publicly-accessible web page that will report information about certain types of pipeline releases and Magellan’s responses to them.

The proposed settlement, lodged in the U.S. District Court for the Northern District of Oklahoma, is subject to a 30-day public comment period and final court approval. Information on submitting comments is available through the U.S. Department of Justice.