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1. What does the Olympic Pipe Line (OPL) do? What about the Seattle lateral?
The Olympic Pipe Line (OPL) transports liquid fuels from four oil refineries in Whatcom and Skagit counties to major storage and distribution locations in western Washington and into Portland, Oregon. A branch off the mainline, called the Seattle lateral, was built in 1965 and runs through southeast Seattle. The Seattle lateral operates for 30 hours per week during which time 8.8 million gallons of various grades of fuel are carried to a petroleum tank farm on Harbor Island.
2. Where does the pipeline go?
The main pipeline generally follows the I-5 corridor south from Whatcom County to Portland. In King County, the pipeline passes along the east side of Lake Washington. The Seattle lateral runs 12.5 miles from Renton through southeast Seattle to Harbor Island, mostly using Seattle City Light electrical transmission line right of way. The lateral passes through Rainier Valley, Holly Park, Beacon Hill and SODO.
3. Who owns the pipeline?
The pipeline is owned by the Olympic Pipe Line Company, which in turn is owned by BP Pipelines North America and Shell Pipeline Company LP. BP Pipelines has operated the pipeline since 2000 and retains a controlling interest in the Olympic Pipe Line Company.
4. What's the City of Seattle's role with regard to the pipeline?
Nearly the entire lateral runs through city-owned rights of way, and OPL must get the City's consent to operate within the rights of way via a franchise agreement. The current franchise agreement expired on December 31, 2000.
5. Why has the City's franchise with OPL expired?
After the Bellingham incident in 1999 and the resulting federal investigations, the City wanted to fully understand pipeline safety issues and the implications of new federal pipeline safety laws and regulations before entering into franchise negotiations with OPL.
6. Didn't OPL file bankruptcy?
OPL filed Chapter 11 bankruptcy in March 2003. Under Chapter 11, OPL is protected from its creditors, reorganizes under the bankruptcy code, and attempts to become profitable again. OPL management continues to run the daily business operations, but a federal bankruptcy court must approve all significant business decisions.
7. Why is the City temporarily suspending operations of the Seattle lateral?
The City's top priority is protecting Seattle's residents, neighborhoods, businesses and environment. Through inspections over the last three years, OPL has discovered 131 anomalies (irregularities) in the Seattle lateral's structure. Until the City is assured that OPL has sufficiently addressed these pipeline irregularities and that OPL, under bankruptcy, will be able to provide resources sufficient to operate safely, the City will temporarily suspend the company's right to conduct operations within the rights of way. This decision came after extensive discussions with OPL, the Washington Utilities and Transportation Commission (WUTC) and the Federal Office of Pipeline Safety and is considered a cautionary step rather than a response to a known dangerous condition.
8. What is an anomaly?
An anomaly is an irregularity in the pipe wall or welds on the seams where sections of the pipeline are joined, which may be detected during pipeline tests or by physical inspection. Although the presence of an anomaly is not necessarily dangerous, it is critical to understand the extent of the imperfection and why it exists. The City is asking OPL to perform a hydrostatic test, which along with inspection digs and previous test data, would provide the most reliable information necessary to assure safe operations. The City wants OPL to perform a hydrostatic test and quickly correct any problems.
9. What is a hydrostatic test?
A hydrostatic test is a water pressure test that confirms the structural integrity of the pipeline. During the test, the fuel in the pipeline is displaced with water and the pressure is raised to 125% of the maximum operating pressure for four hours. Then it is held for another four hours at 110% of maximum operating pressure. The pressure in the pipeline is continuously monitored during the test to insure that it does not drop. If the pressure stays the same throughout the eight hours, the test is considered successful. A drop in pressure indicates a possible leak in the line. Hydrostatic tests have been done for over 40 years on pipes and have been performed on portions of the Olympic pipeline in Woodinville, Bellingham, Renton, Bellevue and Redmond.
10. How long will the suspension last?
The City informed OPL of its decision to temporarily suspend pipeline operations on June 27, 2003. Suspension will take effect on August 26, 2003. The suspension will last until either 1) a solvent company is operating the pipeline and a franchise agreement with the City is in place or 2) OPL has provided the City with proof that the irregularities have not affected the pipeline by conducting a successful hydrostatic test and repairing two anomalies identified in earlier testing.
11. Under what circumstances would the City allow OPL to continue operations?
The City must be confident that the pipeline will be operated safely, especially during this uncertain period of bankruptcy reorganization. The City would consider rescinding the suspension if OPL agrees to perform two inspection digs along the lateral and performs a hydrostatic test, and the results successfully prove that the line is safe. After the bankruptcy is completed, the City would require that immediate negotiations for a franchise begin.
12. Does the City have the legal authority to suspend operations?
The City owns the rights of way the pipeline travels along through southeast Seattle. Therefore, OPL needs permission to conduct business on the City's property. The City has the legal authority to stop OPL from using the city-owned rights of way.
13. How will the fuel be transported if the pipeline is not operating?
Suspending the operation of the Seattle lateral will have no impact on the capability for delivery of fuels along the main pipeline. It will be up to OPL to find alternative methods of transporting fuel to the Harbor Island tank farm. Two of the company's options are barging and trucking. It will not affect delivery of jet fuel to Sea-Tac Airport.
14. Olympic Pipeline says there are alternatives to water-pressure testing that work
just as well, cost less, and do not involve using large amounts of water. Why not accept those methods?
Olympic prefers to run internal "smart pigs" instead of performing water-pressure testing. A new experimental tool (Transverse Field Inspection - TFI) was run through the Seattle Lateral last May. It identified 131 potential seam weld defects. Olympic plans to inspect only 14 of these potential defects in the next three years. There is too much uncertainty with this new experimental tool. The only way to ensure that this pipeline can withstand the pressure of its operation is to fill it up with water, and pressurize it.
15. Is the City of Seattle's request for a hydrostatic test unreasonable?
Hydrostatic tests are a common sense tool to validate the structural integrity of a pipeline. Since the Bellingham explosion, Olympic has performed this safety test for the residents of Bellingham, Renton, Woodinville, Bellevue and Redmond. It is not unreasonable to ask for the same level of safety tests for the citizens of Seattle.
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