Exxon Pays for not Following Procedures

Monday, November 11, 2013 @ 03:11 PM gHale

Exxon Mobil Corp.’s will pay a $2.6 million fine for not following policies for testing and reporting risks associated with the rupture of its pipeline in Mayflower, AR, federal officials said.

ExxonMobil Pipeline Company’s Pegasus Pipeline leaked March 29, sending 5,000 barrels of crude oil through a suburban neighborhood.

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The Pipeline and Hazardous Materials Safety Administration (PHMSA) fined Irving-based Exxon Wednesday for nine violations carrying a civil penalty of $2.6 million.

PHMSA said Exxon had knew the pipeline would be susceptible to seam failure, and it did not conduct proper testing after discovering risks and not reporting them to regulators.

PHMSA also said Exxon failed to follow its own policies and combined pipeline segments for testing purposes, which masked the threat.

The pipeline has remained out of service since the accident.

Exxon faces multiple lawsuits from homeowners, the state of Arkansas and the federal government. The oil giant bought out at least two homes affected by the spill.



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