Keystone restart may be delayed
2022.12.21 01:59
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Keystone restart may be delayed
Budrigannews.com – Following a government report into spills on TC Energy (NYSE:), the U.S. pipeline regulator launched a review of its special permits, which waive certain operating requirements for pipelines. ‘s Keystone oil pipeline, according to a person with knowledge of the situation.
The review conducted for the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) brings to light the increasing concerns raised by legislators regarding the possibility that such permits contribute to spills. This month, the most recent major spill took place in rural Kansas along Keystone, the only oil pipeline in the United States that has a special permit to operate at higher pressure.
After spilling 14,000 barrels on December 7, TC shut down the 622,000 barrel-per-day pipeline, which had been in operation for 12 years. This was the third major spill in five years.
Oak Ridge National Laboratory (NYSE:), which was commissioned by PHMSA, a research institution affiliated with the Department of Energy, in response to a 2021 report on Keystone accidents, to examine special permits, the source stated. Sara Shoemaker, the laboratory’s spokesperson, declined to comment.
According to the source, the review includes both the program itself and individual permits, such as Keystone’s.
On August 16, several months prior to the most recent spill at Keystone, a meeting between PHMSA and the laboratory marked the beginning of the review.
A plan to restart the Keystone section that has ruptured has been submitted by TC. The company said in a statement that the terms of the special permit for Keystone were not the cause of any previous incidents and that it was thoroughly reviewed by government officials and experts in pipelines.
Due to major spills in 2017 and 2019, the U.S. Government Accountability Office (GAO) reported to Congress in 2021 that TC Energy performed below national averages over the previous five years. Starting in 2017, Keystone was allowed to run at a higher pressure than other pipelines, subject to 51 conditions.
Don Deaver, a pipeline consultant, stated, “The most recent Keystone spill raises doubts about whether PHMSA adequately assesses risk in granting special permits.”
Deaver stated, “I don’t think they should give any (special permits).” There’s concerns with the guidelines we’ve proactively got. The stress levels experienced by pipelines are extremely high, and they have a very low tolerance for mechanical defects or damage.”
A crack caused by construction damage led to the spill of 6,592 barrels of oil in the 2017 Keystone incident near Amherst, South Dakota.
Josh Axelrod, senior advocate at the environmental group Natural Resources Defense Council, stated that it is highly unlikely that PHMSA will be able to effectively enforce special permit conditions for the extensive pipeline industry.
According to Axelrod, “I don’t think PHMSA is staffed to justify (special permits) because it is not a big regulator and is responsible for tens of thousands of miles of pipeline.” It is in the best interest of the industry to maintain pipeline operation if they are relying on industry self-reporting or data.
Accufacts president Richard Kuprewicz said he thinks the spill in Kansas was caused by a bad weld that connected two segments. The cause has not been made public by TC.
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Kuprewicz stated, “It probably has nothing to do with the special permit conditions.”
Since 2009, PHMSA has approved 112. 27 special permit applications have been denied. TC Energy was the only company with more applications turned down than any other.
