Magellan Midstream Shuts Iowa Pipeline after 3,300-bbls Diesel Spill

Reuters, January 26, 2017

Magellan Midstream Partners announced on Wednesday that it has shut its pipeline in Worth County, Iowa, after spilling about 3,300 barrels of diesel fuel earlier in the day.

"The Magellan pipeline in the general area has suspended operations. We do not expect any supply disruptions associated with this incident," company spokesman Bruce Heine said in an email.

A county roadway near the impacted area has been temporarily closed, but there were no evacuations or injuries associated with the spill, Magellan said. But weather conditions, including high winds and blowing snow, are impacting cleanup efforts, the Iowa Department of Natural Resources (DNR) said in an emailed statement.

The news comes as the debate around pipeline safety was rekindled after U.S. President Donald Trump signed orders on Tuesday smoothing the path for the controversial Keystone XL and Dakota Access oil pipelines. Protesters and environmental groups had rallied for months against plans to route the $3.8 billion Dakota Access pipeline beneath a lake near the Standing Rock Sioux reservation, saying it threatened water resources and sacred Native American sites.

Iowa DNR said the spill happened early this morning in Worth County, near Hanlontown, which is about 125 miles (200 km) north of Des Moines. Worth County emergency officials are working with Magellan to ensure the spill is contained, the Iowa DNR said, adding that the company's environmental contractors are vacuuming spilled diesel fuel from the scene. Staff onsite from Iowa DNR report the fuel pooled in a farm field and does not appear to have reached surface waters.

Magellan said it was probing the cause of the incident and did not have an immediate return date for the 12-inch pipeline system. Recovery operations are under way and all appropriate federal and state agencies have been notified, the company said. There was no immediate market reaction to news of the spill.

Separately, the president of Tundra Energy Marketing Ltd on Wednesday confirmed its pipeline as the source of a leak of some 200,000 liters (52,834 gallons) of crude oil onto aboriginal land in the Canadian province of Saskatchewan that was discovered by a member of the community last week.

(Reporting by Vijaykumar Vedala in Bengaluru and Devika Krishna Kumar in New York; editing by Sandra Maler, G Crosse)

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