LITTLE ROCK, Ark.—Central Arkansas Water is fully aware that its push to relocate the compromised Pegasus pipeline out of its watershed will likely become a NIMBY issue.
But that hasn't stopped the utility from continuing its bulldog-like push for ExxonMobil to remove 13.5 miles of mostly buried pipeline from the northern edge of Lake Maumelle. The man-made lake provides 67 million gallons of water per day to 400,000 residential, commercial and industrial customers in and around Little Rock.
"We want zero risk," said John Tynan, the utility's watershed protection manager. "That's why we're asking for the relocation. Our question is, how do we make this a reality?"
Tynan and other Central Arkansas Water managers broached the topic again on Aug. 26 when the Exxon brass presented the company's latest findings to the utility and other public officials at a meeting in Little Rock.
Karen Tyrone, an Exxon vice president, said the company wouldn't submit a plan to restart the pipeline to federal regulators "until we understand what happened and believe that we have the actions to prevent it from happening again," according to a report by KUAR-FM in Little Rock.
Arkansas officials in turn insisted that if the line is reopened, Exxon must surpass federal guidelines in maintaining the pipe around Lake Maumelle. If Central Arkansas Water can't get the pipeline moved out of its watershed, Tynan said, every measure should be taken to reduce the risk of a spill.
Relocating the pipe would be anything but cheap. Andrew Black, president and chief executive officer of the Association of Oil Pipe Lines, said "a rule of thumb" on pipeline construction is $2.5 million to $3 million per mile. Black participated in a recent radio broadcast of "The Diane Rehm Show" dedicated to oil pipeline issues.
A layperson's calculation reveals that moving the pipeline to the western edge of the watershed and then back to its current path past Lake Winona would add at least 40 miles to the route. That would suggest a minimum cost of $100 million to relocate the pipeline.
In a recent interview, Tynan said the conversation about relocating the Pegasus needs to include everyone with a stake in the lake or the pipeline—but that deciding how to reroute the line is ultimately Exxon's responsibility.
"We haven't decided on where Pegasus should go because we're not oil pipeline specialists," Tynan said. "That's where Exxon, its contractors and the people who eat, sleep and breathe pipelines need to come in and decide where it goes. It's something local, state and federal officials need to be discussing, and we're encouraging that dialogue to start."
The Pegasus hasn't pumped any oil since the Mayflower spill on March 29. And Exxon has hinted that the 65-year-old pipeline, which stretches 850 miles across four states from Patoka, Ill., to Nederland, Texas, might never re-open.
Despite that, Central Arkansas Water is still pursuing the rerouting angle.
"People expect us to ask the questions we do," said Robert Hart, the utility's technical services officer. "They want us to push and not be laid back and assume that everything is being taken care of. Where all of this will end up, we just don't know."
Mayflower Spill Prompts Utility to Redouble Efforts
Central Arkansas Water began worrying about a spill on the Pegasus long before the rupture in Mayflower spilled 5,000 barrels of heavy crude oil just eight pipeline miles northeast of the lake.
In May 2009, the utility created a risk mitigation plan with a heavy emphasis on the pipeline. It has conducted tabletop and field exercises with emergency responders that simulated spills in creeks the Pegasus crosses and is outfitting a lakeside trailer with oil spill response equipment that can be quickly deployed. The utility has also partnered with Exxon to install a storage facility on the lake's north shore equipped with 3,000 feet of boom.
Utility staffers keep an eye on the pipeline when making their regular rounds plus do inspections on an all-terrain vehicle twice a year. Exxon patrols the pipeline via airplane twice a week.
After the spill in Mayflower, the utility redoubled its efforts.
In a May 15 letter to the Arkansas Department of Health, Gov. Mike Beebe and Attorney General Dustin McDaniel, it outlined 17 corrective actions that Exxon should be forced to take to protect the watershed. The list includes burying any pipe that is exposed, constructing diversion berms as a preventive measure in case of a rupture, funding annual emergency response exercises with state and local responders, encasing the pipeline at stream crossings, installing external leak detection technology, and installing remotely controlled shut-off valves and check valves.
Currently, only one shut-off valve exists along the pipeline in the watershed, according to the water utility. It's at the western end of Lake Maumelle and an Exxon representative would have to drive to the site to manually close it. The utility figures at least two hours would pass from the time a rupture is detected to the time the valve could be closed—and that by then about 1.2 million gallons of oil could escape into the watershed.