Pipeline company with tie to Gov. Scott, and state backing, has history of accidents

By Dan Christensen, FloridaBulldog.org 

With the Clinton Presidential Center in the foreground, this photo shows a Spectra Energy pipeline blowout beneath the Arkansas River in Little Rock on May 31. Photo Courtesy: Tony Cassady

With the Clinton Presidential Center in the foreground, this photo shows a Spectra Energy pipeline blowout beneath the Arkansas River in Little Rock on May 31. Photo Courtesy: Tony Cassady

Spectra Energy, the company that state environmental regulators say should be allowed to construct a 267-mile-long natural gas pipeline in North Florida, has a checkered history of accidents and violations of federal safety rules in the U.S. and Canada dating back decades.

FloridaBulldog.org reported last week that Florida’s Department of Environmental Protection is backing the award of a key environmental permit for the controversial $3-billion Sabal Trail pipeline to a joint venture majority-owned by Houston-based Spectra Energy.

Spectra Energy’s investors have included Gov. Rick Scott. On last year’s financial disclosure form, Scott reported owning a $108,000 stake in Spectra and its affiliate, DCP Midstream Partners. His latest disclosure form, filed in June, no longer details Scott’s securities holdings because he put those assets into a blind trust.

The underground Sabal Trail Transmission is proposed as a nearly 500-mile interstate natural gas pipeline to run from Alabama, through Georgia south to Orange County, south of Orlando. Spectra owns 59.5 percent; Florida Power & Light parent NextEra Energy owns 33 percent; and Duke Energy, which spun off its natural gas business to form Spectra in 2007, recently paid $225 million for a 7.5 percent stake.

Federal and state election records show that FP&L, Duke Energy and their affiliates together have contributed $1.4 million to Let’s Get to Work, the political committee branded with Scott’s campaign slogan. They also gave a total of $5.8 million to the Republican Governors Association in 2013-14, which in turn contributed $18.3 million to Let’s Get to Work last year.

Gov. Rick Scott

Gov. Rick Scott

Spectra Energy operates approximately 22,000 miles of natural gas pipelines in North America. U.S. and Canadian agency files detail the company’s problematic safety record.

From 2006 to date, the U.S. Pipeline and Hazardous Materials Safety Administration recorded 25 incidents that caused more than $12 million in property damage along Spectra’s main line – the 9,000-mile Texas Eastern Transmission that connects Texas and the Gulf Coast with big urban markets in the Northeast. The causes ranged from equipment failure and incorrect operations to pipe corrosion.

The agency found numerous federal rules violations during the same period and slapped Spectra with a total of $400,000 in fines – not counting another $59,000 proposed penalty for failing to construct a pipeline in Pennsylvania in accordance with written specifications.

Spectra’s press office did not respond to detailed requests for comment made over two days.

Florida’s Department of Environmental Protection issued its July 10 notice of intent to issue the permit and easement for Sabal Trail without a public hearing. The WWALS Watershed Coalition, a Georgia based nonprofit and environmental advocate, filed an objection to the permit last week and the department is considering its response.

Was Spectra’s safety record considered in DEP’s decision?

“The department assesses a permit application based on Florida statutes and rules to ensure that all aspects of the proposed operation follow Florida law and are protective of the environment and human health and safety,” DEP spokeswoman Lori Elliott said in a Wednesday statement.

A DRAMATIC RUPTURE

Spectra’s most recent pipeline accident was the dramatic rupture of an auxiliary pipe along its Texas Eastern Pipeline in Little Rock, Ark. on May 31. The buried line, which crossed the Arkansas River near the Clinton Presidential Center, was not in use at the time, but contained four million cubic feet of natural gas that exploded with such force that churning water boiled up high into the air across the span of the river. Eyewitness Tony Cassady, who lives nearby, said the gushing waters had settled back somewhat by the time he managed to snap the photo above.

While no one was injured, the blow out resulted in more than $1 million in damages, according to federal records. The cause has not been determined, but an incident report filed by Spectra in June noted that high rains had caused flooding that had washed away soil that once covered the pipeline on the river’s bank.

Aerial view of the explosion site of Spectra Energy's Nig Creek Pipeline in 2012. Photo: Transportation Safety Board of Canada

Aerial view of the explosion site of Spectra Energy’s Nig Creek Pipeline in 2012. Photo: Transportation Safety Board of Canada

Another vivid example of the power of out-of-control natural gas occurred June 28, 2012 at the Nig Creek pipeline in British Columbia, operated by Spectra’s wholly owned subsidiary Westcoast Energy. The 16-inch pipeline, which had been shut down that night, was filled with pressurized “sour gas” that exploded when the line ruptured, causing a fire and creating a large crater in a remote forest area in British Columbia. Sour gas contains significant amounts of hydrogen sulfide and is highly toxic.

No one was injured in the blast – the nearest town, population 58, was 25 miles away. The cause was later determined to be a crack in a pipe.

So far in 2015, Canada’s National Energy Board has fined Spectra Energy three times for a total of $122,300 – including $88,000 imposed in January after inspectors found violations with “the potential to significantly impact worker safety and infrastructure” at Spectra’s Dawson Creek Gas Plant, also in British Columbia.

Just last month, the board also ordered Spectra to fix “management system failures” at its Westcoast Energy gas processing plants and facilities in western Canada after inspectors uncovered 27 safety issues between April 1, 2014 and June 26, 2015.

“The board expects Westcoast to address safety concerns on a systemic basis,” says the July 14 safety order. “Based on recent violations described below, the board is not confident safety concerns are being addressed in this manner.”

Back in the U.S., Spectra owns or co-owns eight natural gas pipelines, including the 745-mile Gulfstream Natural Gas, which runs beneath the Gulf of Mexico from lower Mississippi and Alabama to Tampa Bay. All but two of those pipelines – Gulfstream and the 67-mile Big Sandy pipeline in eastern Kentucky – have reported at least one incident since 2006.

Spectra Energy's pipelines

Spectra Energy’s pipelines

In 2014, the U.S. pipeline administration investigated a frightening episode in Searsmont, Maine involving the Maritimes and Northeast Pipeline, a joint venture of Spectra, Emera and ExxonMobil. The 684-mile pipeline transports natural gas from offshore Nova Scotia to markets in the northeast U.S.

The event happened at a pipeline compressor station, which helps move gas through a pipeline by keeping it under sufficient pressure, shortly before midnight on Dec. 31, 2013. Neighbors told a Bangor Daily News reporter they heard a roaring noise that was so loud it caused nearby homes to shake and some residents to flee.

“TERRIFYING EXPERIENCE”

“It was absolutely the most terrifying experience I’ve ever had,” Susan Totman told the newspaper.

Federal pipeline regulators said the noise, which lasted more than a half-hour, was caused by the release of gas jetting from a valve in an emergency shutdown system that was unintentionally opened. About 70 million cubic yards of gas were released, says an agency report on the incident.

The pipeline operator was later found to have violated federal regulations by failing to timely inform them of the accident. Last month, on July 24, regulators imposed a $34,500 fine that company officials did not contest.

Other Spectra pipelines have had problems, too.

Agency records list three incidents in 2010 involving equipment failure and excavation damage along Spectra’s East Tennessee pipeline that caused $238,000 in property damage. In 2013, the company received a warning letter after inspectors found four probable safety violations.

Spectra’s Southeast Supply Header is a 286-mile pipeline that funnels natural gas through Louisiana, Mississippi and Alabama to the Gulfstream pipeline and on to Florida. Records show that a construction-related equipment failure near Hazlehurst, Miss. in January 2010 caused $562,000 in property damage and led to $200,000 in safety violation fines.

But Spectra’s longest and most troubled pipeline is the Texas Eastern Transmission.

In 1989, Spectra and its Texas Eastern limited partnership paid a $15 million fine and entered into a consent decree with the Environmental Protection Agency to clean up PCB (polychlorinated biphenyl) contamination at numerous cites along the pipeline in 14 states.

Texas Eastern had used the banned substance and suspected carcinogen in its compressors as a fire retardant, and over time it had leaked into the pipeline system. The $500 million PCB cleanup cost included the assessment of 462 sites for contamination, installing 707 groundwater monitoring wells and removing and disposing of 600,000 tons of contaminated soil, the EPA said in a 2002 announcement that the cleanup had been completed.

Texas Eastern also paid Pennsylvania $218.6 million in penalties and costs to clean up 19 sites in that state where PCBs were dumped.

In 1994, a buried Texas Eastern pipeline in Edison, N.J. ruptured and ignited “sending flames several hundred feet in the air,” according to a National Transportation Safety Board report. Heat from the burning gas set fire to an apartment complex more than 100 yards away, destroying several buildings.

Dozens of people were injured and more than 100 families were left homeless, but there were no fatalities. Damage was estimated at $25 million. The probable cause of the rupture: mechanical damage to the pipe that created a crack that metal fatigue caused to grow to critical size.

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  1. Jen says:

    Nice review of Spectra safety record. Here’s some additional info:
    On August 23, 2009 and October 26, 2009 malfunctions at Spectra Energy’s Steckman Ridge Compressor Stations in Clearville, PA resulted in industrial lubrication oil to mix with gas during emergency venting, resulting in an oil mist polluting surrounding properties and a nearby pond.14

    On April, 13, 2014 there was an explosion of the air piping system at Spectra Energy’s Texas Eastern Transmission Marietta Compressor Station. A station operator was admitted to the hospital and treated for facial and head injuries.15

    On June 23, 2012, at the Spectra Energy Transmission Compressor Station N4 in British Columbia, leaking gas caused a flash fire which burned two employees, requiring an airlift to a local hospital. One employee required a second transfer to a specialized burn unit in Vancouver, B.C. .16

    A week later, on June 28, 2012, a second pipeline rupture and fire occurred on Spectra’s Nig Creek pipeline. The resulting crater exposed a second pipe that shared the same right of way, owned by Bonavista Energy Corporation, causing this pipe to overheat and rupture.17

    On December 21, 2012 Spectra’s President and CEO was issued a Final Order by PHMSA with regard to the Texas Eastern Transmission pipeline. Spectra was found to be in violation of pipeline safety regulations and assessed a penalty of $134,500. The order noted that Texas Eastern failed to inspect a pipe for corrosion and failed to follow procedures for valve inspection
    and maintenance. The order noted, “by failing to inspect removed pipe, an operator can easily miss visible signs of corrosion that could result in a pipeline failure” and “an operator that fails to follow its own procedures for valve inspections increases the risk of preventable pipeline accidents.”18

    The Texas Eastern Pipeline, owned by Spectra Energy, was reported to have ruptured on May 31, 2015 under the Arkansas River, releasing approximately 4 million cubic feet of raw natural gas.21 The US Coast Guard reported a tugboat was damaged and the flooded river was closed to traffic for 2 miles while the rupture was under investigation.22

    14 PADEP. “DEP fines Steckman Ridge 22K: Malfunctioning compressor discharged industrial oil to surrounding properties.” NorthcentralPA.com. April 1, 2010.
    15 U.S. Department of Transportation, Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety Eastern Region, Failure Investigation Report Texas Eastern Transmission (SPECTRA) Marietta
    Station Incident, October, 29, 2012.
    16 Transportation Safety Board of Canada, Pipeline Investigation Report P12H0103, September 26, 2013.
    17 Transportation Safety Board of Canada, Pipeline Investigation Report P12H0105, June 4, 2013.
    18 U.S. Department of Transportation, Pipeline and Hazardous Materials Safety Administration, Office of
    Pipeline Safety, Final Order, CPF No. 420121009,December 21, 2012.
    21 Passut, Charlie. “Spectra preparing to recover ruptured pipeline from Arkansas River.” Natural Gas Intelligence. June 9, 2015.
    22 Associated Press, “Pipeline in Arkansas River Ruptures, Releases Natural Gas.” ABCNews. June 3, 2015.

  2. It’s good to be emperor.

  3. It’s good to be potentate.

  4. terre says:

    What is truly alarming is the fact that so much goes un or under- reported. But then, how could we sleep at night knowing that these are the people in charge….

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