Tulsa Company Agrees to Pay Fine to Settle EPA Charges

Tulsa, Okla.-based Magellan Pipeline Company L.P. has agreed to pay a fine of $2 million, in addition to $16 million for recovery purposes, to the Environmental Protection Agency (EPA) to settle accusations that it violated federal pollution policies. The company has been under fire because it ignored certain regulations outlined in the Clean Water Act.

The firm’s pipelines incurred four oil spills in various cities throughout the U.S., including Texas City, Texas; Nemaha, Neb.; and El Dorado, Kan. Three of the spills occurred in 2011 within Nebraska and Texas. Roughly 5,000 barrels of oil spilled from the company’s pipeline and contaminated water sources in local areas.

Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance, said in a Jan. 19 statement that “fuel spills have real and lasting impacts on clean water for communities.”

She added: “Companies need to take the necessary precautions to make sure fuel is transported safely and responsibly. This settlement puts in place important pipeline safety and spill prevention measures that make this industry safer for communities.”

The $16 million that will be set aside for recovery purposes will be used for the ongoing process of cleaning an oil spill in Nebraska, developing and implementing a new training program for damage prevention staff, and various other requirements which focus on the company’s transparency.

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