Southern California pipeline firm to pay $1.3 million to resolve Pyramid Lake oil discharges

Pacific Pipeline Systems will also discontinue use of 70 miles of pipeline
WASHINGTON-Pacific Pipeline Systems LLP, a Long Beach, Calif.-based oil transport company, has agreed to pay a $1.3 million civil penalty and discontinue the use of a section of pipeline through an unstable section of mountains to resolve a Clean Water Act violation, the Justice Department and E.P.A. (EPA) announced today.

"The U.S. brought this case to protect an important body of water, Pyramid Lake," said Ignacia S. Moreno, Assistant Attorney General for the Justice Department's Environment and Natural Resources Division. "Through this Clean Water Act settlement, we are protecting Pyramid Lake from future oil spills and receiving a significant civil penalty from Pacific Pipeline."

"Californians expect, deserve and are entitled to clean water. When these environmental laws are violated, E.P.A. will always be vigilant," said Jared Blumenfeld, Regional Administrator of EPA's Pacific Southwest region. "Today's successful enforcement settlement addresses multiple flaws in Pacific Pipeline's system and also provides for a substantial penalty."

The arrangement resolves a complaint filed in federal court in Los Angeles for the discharge of crude oil into Pyramid Lake, located about 60 miles northwest of downtown Los Angeles. In March 2005, a landslide caused a portion of Pacific Pipeline Systems' Line 63, an underground pipeline that runs from Bakersfield, Calif., to Los Angeles to fail.

The resulting pipeline break discharged approximately 3,393 barrels of oil, much of which flowed into Pyramid Lake, which is part of the California Aqueduct and is a potential drinking water supply. Water served through the public water system was not impaired by the discharge.

As part of the agreement, Pacific Pipeline Systems will discontinue use of approximately 70 miles of the Line 63 pipeline that travels through the Tehachapi Mountains, portions of which are geologically unstable. The arrangement does allow for the reuse of the pipeline. Prior to that, Pacific Pipeline must perform specific actions to relocate the pipeline into more geologically stable areas or enhance its resistance to earth movement.

The consent decree, lodged in the U.S. District Court for the Central District of California, is subject to a 30-day public review period and approval by the federal court. A copy of the consent decree is accessible on the Justice Department Web location at http://www.justice.gov/enrd/Consent_Decrees.html.

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