OLYMPIC PIPELINE CHRONOLOGY

JUNE 10, 1999 - Pipeline explosion occurs in Bellingham, killing 3 persons and unleashing roughly 230,000 gallons of liquid petroleum.

JUNE 18, 1999 -Federal Office of Pipeline Safety ("OPS") issues its Corrective Action Order.

JUNE 2, 2000 - OPS levies a record setting fine on OPL of $3.05 million

JANUARY 1, 2001 - OPL's permission to operate under Franchise 116331 terminates.

APRIL 2001 - A $75 million dollar settlement in the personal injury suits is announced.

MAY 2001 - Department of Justice files a civil lawsuit seeking $37 million in fines.

SEPTEMBER 2001 - A grand jury approves the entry of criminal indictments against OPL and three of OPL's employees.

NOVEMBER 2001 - NTSB issues its report on the investigation of the Bellingham accident.

FALL 2002 -The City retains SECOR and Cocker Fennessy as its consultants in the Olympic Pipe Line Franchise negotiations.

NOVEMBER 2002 - New federal regulations are passed on pipeline safety

JANUARY 2003 - The City requests OPL increase its insurance and bonding requirements pursuant to the franchise agreement.

MARCH 27, 2003 - OPL files for Chapter 11 protection.

The following lists the specific written communications that have occurred:

1. 11/14/2000 G. Huff letter to F. White - requesting a renewal of Ordinance 116331;
2. 4/26/01 D. Cummings letter to CM McIver - stating that BP Pipelines, North America, has taken over management of the pipeline;
3. 4/27/01 F. White email to D. Cummings and response - requesting more specific information relating to the operations of the pipeline;
4. 6/19/02 BP letter to City - regarding a change in the availability of insurance certificates;
5. 1/6/03 L. Krenz letter to City - enclosing a check for $29,185.00 (past franchise fee amount) and stating that BP Pipelines (North America) Inc. ("BP") has assumed responsibilities as operator of OPL;
6. 1/27/03 R. Richmire letter to Olympic - stating that the permission to operate the lateral ad expired, and noting the potential for a breach of contract regarding the transfer of ownership to BP, requesting an increase in minimum insurance levels to $100 million and bonding requirements to $100 thousand, and explaining that the payment will be placed in an escrow account and applied as a partial payment to the new negotiated franchise fee;
7. 3/13/03 R. Richmire letter to Olympic - notification that the City has submitted a list of IMP issues to the Office of Pipeline Safety (OPS) to be included in the OPS audit;
8. 3/21/03 R. Richmire letter to Olympic - confirmation letter of April 3rd initial negotiations meeting;
9. 3/24/03 City received Certification of Insurance stating $2 Million General Aggregate Policy and $25 Million Excess Policy (no cover letter sent);
10. 4/1/03 R. Streed letter to R. Richmire - explaining that the bankruptcy filing requires BP to delay the April 3rd meeting and working with the City on a new franchise agreement;
11. 4/9/03 Mayor Nickels' letter to T. Bucknell and E. Sato - again requesting the $100 million of liability insurance;
12. 4/17/03 T. Donahue letter to T. Bucknell and E. Sato - outlining the six minimum requirements needed by the City to continue to working towards a new franchise agreement;
13. 4/21/03 E. Sato letter to T. Donahue - stating that OPL would not agree to the six minimum requirements;
14. 5/1/03 R. Richmire letter to B. Talley - requesting a face to face meeting if OPL was still interested in pursuing a franchise agreement;
15. 5/2/03 E. Sato letter to T. Donahue - explaining that OPL has not set aside any monies for the $1 million self insured reserve in the event an accident occurred, but is rather solely relying on;
16. 5/16/03 B. Talley letter to Mayor Nickels - confirming a 5/23/03 meeting;
17. 5/27/03 B. Talley letter to Mayor Nickels - discussing the 5/23 meeting and its conclusion short of an agreement by BP (and Shell) to guarantee OPL's operations;
18. 6/3/03 Mayor Nickels' letter to B. Talley asking for alternative solutions to the "parent guarantee" and a specific response to each of the six requested minimum requirements for continued operations;
19. 6/16/03 B. Talley letter - responding to the six minimum requirements;
20. 6/27/03 Mayor Nickels' letter to B. Talley - notification of his order to temporarily suspend pipeline operations until OPL can prove the safety of the pipeline. Mayor Nickels may rescind his order if OPL plans to conduct a hydrostatic test and two inspection digs and results in providing assurances of a safe pipeline.
21. 6/27/03 G. Crunican letter to B. Talley - Sixty day Notice of Suspension of Operations.

Back to Mayor's Pipeline Safety Page