Home > Industrial, Legal > Chevron Faces $423K in Fines Including Protection Against Electrical Currents

Chevron Faces $423K in Fines Including Protection Against Electrical Currents

Chevron Corp. may not have an adequate means to detect leaks along its pipeline system and is facing a proposed fine of $423,600 after one of its pipelines failed in June in Salt Lake City, the U.S. Transportation Department said.

A leak near the University of Utah campus spilled 800 barrels of oil onto the ground and into nearby Red Butte Creek over more than 10 hours before Chevron was notified of the leak by the local fire department, the Transportation Department said.

An accident investigation by the Transportation Department’s Pipeline and Hazardous Materials Safety Administration found that the San Ramon, California, based oil and natural-gas company may have failed to patrol its pipeline rights of way, control corrosion on its system and protect its pipeline from stray electrical currents, the department said today in an e-mailed statement.

“Chevron has not yet received the order,” said Mickey Driver, a Chevron spokesman. “When we do receive the order, we will review the agency findings before making any comments on them.”

Chevron reported net income of $10.48 billion in 2009.

Story via Bloomberg.com

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