Magellan To Pay $5.3 Mln Fine For Oil, Gasoline Spills

Magellan Midstream Partners LP agreed to pay $5.3 million in civil penalties for alleged violations of the Clean Water Act, the Environmental Protection Agency said in a release Tuesday.

The alleged violations stem from 11 spills in six states during the past 10 years. The Tulsa-based petroleum company allegedly spilled or discharged more than 17,000 barrels of unleaded gasoline, diesel fuel, low-sulfur diesel or fuel oil from March 1999 to May 2006, the release said.

Six spills, including the two largest, occurred in Kansas, according to the complaint. Illinois, Iowa, Minnesota, Arkansas and South Dakota also experienced spills.

The EPA found that the spills had a number of causes, including third-party damage from farm equipment and bulldozers, corrosion, leaks and pipeline operator error. Magellan owns and operates 6,700 miles of pipeline and 39 terminal facilities.

Magellan agreed to set up programs to minimize third-party damage to its pipeline system and improve employee training, leak-response procedure and protocols for detecting and responding to leaks, said Chris Whitley, a spokesman for EPA Region 7. Magellan also agreed to spend $750,000 to remove or minimize external threats along selected segments of pipeline, he said.

"The settlement is significant in that it holds Magellan responsible for these accidents and sends a message to other companies to safeguard their business," Whitley said.

Earlier this month, a fuel tank at Magellan's Kansas City, Kan., plant burned for two days after an apparent lightning strike.