Selective risk reporting caused Exxon to underestimate the vulnerability of the pipe that passed through Mayflower, Ark., federal regulators said.

By Elizabeth Douglass

In the years leading up to ExxonMobil's Pegasus pipeline rupture in Arkansas, the company delayed a crucial inspection, put off urgent repairs, masked pipeline threats with skewed risk data and overlooked its own evidence that the oil pipeline was prone to seam failures, according to federal pipeline regulators.

The assertions are laid out in a bluntly worded notice sent to Exxon and released last week by the Pipeline and Hazardous Materials Safety Administration (PHMSA, pronounced fimm-sa). The preliminary citations, which came with a proposed $2.66 million fine for Exxon, grew out of the agency's investigation into the March 29 Pegasus seam failure that sent an estimated 210,000 gallons of crude into a Mayflower, Ark. neighborhood.

"From my perspective, this is a pretty important notice," said Richard Kuprewicz, a pipeline safety consultant who serves on the PHMSA safety standards advisory committee for oil pipelines. "They've used some fairly strong words ... and they don't choose their words casually."


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