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City of Seattle

Gregory J. Nickels, Mayor

NEWS ADVISORY

SUBJECT:   Nickels says pipeline will shutdown unless safety is proven
FOR IMMEDIATE RELEASE:   
7/3/2003  12:37:00 PM
FOR MORE INFORMATION CONTACT:
Office of the Mayor  (206) 684-4000

Mayor Nickels calls for safety tests on Olympic Pipe Line:
Threatens shutdown unless safety tests are successful

SEATTLE-Mayor Greg Nickels said he would shutdown a fuel pipeline through Seattle operated by Olympic Pipe Line Company unless water-pressure tests showed the facility is safe to operate.

"This pipeline runs through densely populated Seattle neighborhoods, within 150 feet of two elementary schools," said Nickels. "My top priority is the safety of those who live, work, play or go to school near the pipeline. I want assurances it's safe."

The mayor expressed his decision in a June 27 letter to Bobby Talley, president of Olympic Pipe Line Company of Renton, operator of a "lateral line" that carries petroleum fuels from Renton through South Seattle to a tank farm on Harbor Island.

The mayor said he would shut down the pipeline by Aug. 26 unless safety tests were performed.

Nickels based his decision on concerns about the pipeline's condition and the bankruptcy status of the operator.

Recent inspections of the Seattle lateral pipeline showed a number of imperfections in seams joining the pipeline together. Nickels said the only way to know if the imperfections are significant is to have OPL conduct a pressure test and inspection digs.

"We are asking OPL to perform two inspection digs and a water-based pressure test on the pipeline within the next 60 days to prove whether it's safe. We cannot just assume the pipeline is safe. We need proof. I must consider the safety of Seattle residents as my primary concern," said Nickels.

OPL's operating franchise agreement with the City to conduct business within the rights of way of the City has expired. OPL is in bankruptcy, and its ability to meet safety and operating obligations is in question due to its poor financial situation. The City of Seattle has requested that OPL's two parent companies, BP Pipelines North America Inc. and Shell Pipeline Company LP, stand behind the operations of the pipeline and provide financial guarantees that the pipeline is safe. While claiming the pipeline is safe, neither company has been willing to do so.

The Olympic Pipe Line 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 pipeline, was built in 1965 and runs through South Seattle. The Seattle lateral pipeline 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.

Suspending the operation of the Seattle lateral pipeline will have no impact on the delivery of fuels along the main Olympic Pipe Line. 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. The mayor's order will not affect delivery of jet fuel to Sea-Tac Airport.

-30-

Office of the Mayor

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