Pipe break echoes in mar­ket

No one hurt, but ac­ci­dent pushes early oil price up 2 per­cent

The Dallas Morning News - - BUSINESS - By JEFF MOSIER Staff Writer jmosier@dal­las­news.com

A bull­dozer op­er­a­tor in ru­ral Collin County cre­ated a rip­ple in the crude oil mar­ket Tues­day, ac­cord­ing to The Wall Street Jour­nal.

A road crew rup­tured a 30inch oil pipe­line Mon­day af­ter­noon near the town of Tren­ton. Oil traders have said the ac­ci­dent — in which there were no in­juries — “cre­ated some sup­ply con­cerns, help­ing to push oil prices 2 per­cent higher in early trad­ing,” ac­cord­ing to the Jour­nal.

The 500-mile Se­away pipe­line trans­ports oil from Cush­ing, Okla., to stor­age and re­fin­ing fa­cil­i­ties on the Texas Gulf Coast.

Lt. Chris Havey, a spokes-

man for the Collin County Sher­iff ’s Depart­ment, said au­thor­i­ties were no­ti­fied of the ac­ci­dent at 3:30 p.m. Mon­day. A 200-yard stretch of State High­way 121 was closed un­til 7:30 a.m. Tues­day.

Havey said it was “rel­a­tively easy to route peo­ple around.”

Al­though there were no in­juries, a spokesman for the one of the pipe­line own­ers said two small busi­nesses were evac­u­ated. But they were al­lowed to re­turn Tues­day.

The pipe­line is co-owned by En­ter­prise Prod­ucts Part­ners and En­bridge Inc. Rick Rainey, an En­ter­prise spokesman, said a larger, par­al­lel pipe­line was un­dam­aged but closed briefly as a pre­cau­tion.

The own­ers es­ti­mated that 15,000 bar­rels of oil spilled, and about 1,400 have been col­lected so far, ac­cord­ing to the Texas Rail­road Com­mis­sion.

“A Rail­road Com­mis­sion in­spec­tor is on scene and will con­tinue to mon­i­tor the op­er­a­tor’s con­tain­ment and cleanup ef­forts,” com­mis­sion spokes­woman Ra­mona Nye said in a writ­ten state­ment.

Rainey said it was not known when the pipe­line would re­open.

The ac­ci­dent was near Desert Creek, which con­nects to Lavon Lake. Of­fi­cials with the North Texas Mu­nic­i­pal Wa­ter District, which op­er­ates Lavon as a wa­ter sup­ply, said they were told that the oil was stopped be­fore it reach any wa­ter­way.

Ryan La­fontaine, a spokesman for the Texas Depart­ment of Trans­porta­tion, said a road crew was per­form­ing ex­ca­va­tion work on a High­way 121 project when the ac­ci­dent hap­pened. He said in­ves­ti­ga­tors didn’t know yet what went wrong.

The work was part of a $15 mil­lion, 1.5-mile ex­pan­sion of High­way 121. La­fontaine said the ac­ci­dent is ex­pected to de­lay the work, which was sched­uled for com­pe­ti­tion by the end of this year.

The road work was per­formed by sub­con­trac­tors of the project gen­eral con­trac­tor, Austin Bridge & Road.

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