Tag Archives: Environment

Pipeline Petroleum Transport Investment May Predict Growing Cathodic Protection Needs

If Warren Buffet’s investment strategy is any indication, pipeline efficiency is going to start playing a bigger role in moving crude oil and natural gas in the United States.

The Berkshire Hathaway luminary is pipeline-efficiency-cathodic-protectionspearheading a swap of about $1.4 billion in shares of Phillips 66 for full ownership of the energy company’s pipeline petroleum transport services business. The business unit’s focus is polymer-based additives that are used to move crude oil and natural gas through pipelines more efficiently by reducing drag.

The shift in Berkshire’s investment strategy comes amid a boom in U.S. crude oil and natural gas production. Since many liquids pipelines in the United States are operating at capacity, producers can use the pipeline petroleum transport additive to quickly increase capacity without immediately growing pipeline infrastructure.

Although future pipeline projects may be in the works to meet the sharp increase in demand, the process of gaining approval for new pipeline projects can be slowed by permitting.

A greater reliance on existing pipelines for transporting liquids means that producers and pipeline owners need to pay even more attention to cathodic protection management, according to Kevin Groll, project management director for MATCOR, a Pennsylvania-based company that specializes in cathodic protection products and services.

“Any time you have pipeline you have to protect it from corrosion,” Groll said. “And that’s especially true when you increase the value of a pipeline by increasing its capacity. If that pipeline were to develop a corrosion problem you’d be facing a situation where your profitability could suffer significantly.”

“With pipeline owners using additives to push greater volumes of liquids it becomes imperative to use cathodic protection products such as impressed current anodes and cathodic protection rectifiers to protect the increased capacity and profitability of the pipeline infrastructure.”

Further Reading

Berkshire Swaps $1.4 Billion in Phillips 66 Stock in Deal,” Bloomberg, December 31, 2013.

Marcellus Shale Gas Impact Fee Proceeds Above $400M

HARRISBURG – Gov. Tom Corbett has announced that the Marcellus Shale Impact Fee, part of Act 13, signed into law in February of 2012, has brought in more than $400 million dollars in its first two years.

“Act 13 is a law that has helped bring Pennsylvania forward both economically and environmentally,” Corbett said. “In addition to enacting some of the most rigorous environmental standards in the nation, we’ve brought in more than $400 million for our communities directly impacted by unconventional drilling, along with other environmental efforts across the state.”

“As this industry grows, benefitting all Pennsylvanians with thousands of new jobs, lower energy prices, and increased energy independence, Act 13 has played a key part in our role making sure that it grows safely and responsibly,” Corbett said.

Collections for 2012 were due to the Pennsylvania Public Utility Commission (PUC) by April 1.

Nearly $198 million is expected to come into the state from the 2012 collections. This is in addition to the $204 million collected during the first round of collections. The 2012 amounts were released yesterday.

The collections this year are slightly lower than last year due mainly to the lower price of natural gas.

Information on the amount of money expected for 2012, as well as the amount of money collected to date, can be found on the Act 13 page on the PUC’s website, www.puc.pa.gov.

SOURCE: http://gantdaily.com/2013/04/05/corbett-impact-fee-proceeds-above-400m-198m-collected-for-2012/

First deep-shale well drilled in Erie, Crawford

COCHRANTON — Gas wells are a familiar sight here in the rolling farmland of southern Crawford County.

East Fairfield Township Supervisor Bob O’Brien can see a half dozen of them from his kitchen window on Franklin Pike.

But the latest well isn’t like all the others.

Lippert 1H, located at 6321 Pettis Road, was drilled this summer into the Utica Shale to a depth of 7,236 feet, before crews drilled nearly another mile horizontally.

That makes it the first deep shale well drilled in this corner of Pennsylvania, said Gary Clark, spokesman for the state Department of Environmental Protection.

A DEP drilling map shows a heavy band of drilling activity that extends from southwestern Pennsylvania, across the center of the state to northeastern Pennsylvania.

Gas exploration companies continue to drill so-called shallow wells throughout the state.

But until now, the Utica and Marcellus formations were largely untapped in the uppermost corner of northwestern Pennsylvania and a broad swath that included more than 20 counties in the southeastern part of the state.

That changed this summer, at least in Crawford County, when rigs and crews working for Texas-based Range Resources arrived in this rural township of about 850 people.

Range Resources, which developed some of the state’s first successful wells into the Marcellus Shale, drilled the Crawford County well in July.

The entrance to the well site is blocked by no-trespassing signs and by a security building, staffed by a guard.

Horizontal drilling is making it possible to reach the reserves under hundreds of acres from one location.

SOURCE: http://www.goerie.com/article/20120919/NEWS02/309189889/First-deep-shale-well-drilled-in-Erie-Crawford

Canada’s infrastructure in need of $171.8 billion in repairs

Canada’s leaky municipal infrastructure faces an increasingly grim future unless the federal government sinks an estimated $171.8 billion into repairing or replacing aging roads and water systems, a new report says.

With the Conservatives’ infrastructure funding plan set to expire in 2014, the Federation of Canadian Municipalities’ first-ever national infrastructure report card called for a commitment from Ottawa to support cash-strapped municipalities, many of which are home to decaying, “at-risk” infrastructure.

The report, a sweeping examination of 123 municipalities that was released Tuesday, paints a bleak portrait of Canada’s roads and wastewater systems. More than half of municipal roads received a grade of “fair” to “very poor” for displaying general physical decline, significant signs of corrosion or “widespread signs of advanced deterioration.”

“(The report) affirms that we know that there is infrastructure that is not meeting a certain standard across the country,” FCM president Karen Leibovici said in an interview. “We need to tackle that . . . to ensure that the infrastructure we have throughout this country is able to meet needs.”

Shabby roads have made headlines in recent months after massive concrete blocks shattered on Montreal’s Ville-Marie Expressway and pieces of Toronto’s Gardiner Expressway rained down on bustling Lakeshore Blvd. Last Tuesday, an Ottawa motorist drove into a sinkhole caused by a collapsed culvert pipe on Highway 174.

Leibovici stressed that it remains incumbent upon the federal government to narrow the so-called infrastructure deficit by providing top-down funding beyond 2014.

Since it was hatched in 2007, the Conservatives’ “Building Canada” plan has provided about $2 billion annually in infrastructure funding to municipalities. Ottawa’s gas tax fund funnels $2 billion into cities for public works projects and this year’s budget promised future cash for public works projects.

Still, NDP Transport and Infrastructure critic Olivia Chow called the current situation “simply unacceptable.”

“Bridges dropping concrete and highway sinkholes swallowing cars are not freak accidents but symptomatic of the crumbling infrastructure across Canada,” she said in a statement. “The Harper Conservatives have neglected Canada’s roads, water and transit systems and Canadians are paying the price.”

Government officials are in talks with local and provincial leaders and private sector interests about crafting a funding plan to kick in when the current one expires, said Geneviève Sicard, press secretary for Infrastructure Minister Denis Lebel.

The report card, which does not contain recommendations, also highlighted widespread decrepitude in wastewater infrastructure, with roughly 40 per cent of pumping stations and storage tanks experiencing varying degrees of decline.

New federal wastewater regulations will likely improve several hundred water systems across the country, but those come with a hefty $20 billion price tag that municipalities will have to cover over the next two decades.

Guy Félio, a Carleton University civil engineer and lead author on the study, said the report card should send a clear message to the federal government “we’re in a position to control our destiny from an infrastructure perspective and for that we need to manage it properly.”

Municipalities leave federal stimulus money on table

Ninety-nine “shovel-ready” municipal projects that planned to take advantage of $4 billion in federal stimulus money were forced to forgo grants after missing a federal government-mandated completion deadline last year.

In 2009, the Conservatives had offered 3,913 projects money from its Infrastructure Stimulus Fund, intending to steamroll a lagging economy. The deadline for those projects — including more than 500 projects, such as road and bridge revitalizations, in Toronto — was extended to Oct. 31, 2011, from March 31, 2011.

While Ottawa said it would cover “its share of all eligible costs” up to the extended deadline, Infrastructure Canada remains tight-lipped on the amount of money municipalities left on the table.

“Infrastructure Canada cannot provide the total amount of funding that these projects may have to forgo, given that all projects are not yet complete and the final financial reconciliation has not been completed,” a ministry spokesperson Caroline Grondin said.

SOURCE: http://www.londoncommunitynews.com/2012/09/canadas-infrastructure-in-need-of-171-8-billion-in-repairs/

Nigeria: Oil Spill Investigations ‘A Fiasco’ in the Niger Delta

The investigation process into oil spills in the Niger Delta has been challenged today by Amnesty International and the Centre for Environment, Human Rights and Development (CEHRD), as inconsistencies in Shell’s claims about sabotage were revealed.

Experts have examined evidence from the latest oil spill from Shell’s poorly maintained pipelines in the Bodo creek area and confirmed that it strongly indicates that the leak is due to corrosion of the pipeline. However, Shell appears to be ignoring the evidence of corrosion.

“The investigation process into oil spills in the Niger Delta is a fiasco. There is more investment in public relations messaging than in facing up to the fact that much of the oil infrastructure is old, poorly maintained and prone to leaks – some of them devastating in terms of their human rights impact,” said Audrey Gaughran, Director of Global Issues at Amnesty International.

Amnesty International and CEHRD asked US company, Accufacts, which has many years experience in examining oil infrastructure, to examine photographs of the pipe at the leak point. They stated: “This is apparently due to external corrosion. Notice the layered loss of metal on the outside of the pipe around the “stick” from pipe wall loss (thinning) due to external corrosion. It is a very familiar pattern that we have seen many times on other pipelines.”

“Shell have said locally that the spill looks like sabotage, and they completely ignore the evidence of corrosion. This has generated a lot of confusion and some anger in the community,” said Stevyn Obodoekwe, Director of Programmes at CEHRD. “We have seen the pipe and brought an expert to look at it, and it seems pretty clear it is corroded.”

Shell will now remove the affected length of pipe to a Shell facility where, according to the company, tests will be done.

Shell’s pipelines are old and many have not been properly maintained or replaced, with local people and NGOs reporting that the pipes in the Bodo area have not been replaced since 1958. When Amnesty International asked Shell to confirm the age and status of the pipes the company did not respond.

One year ago, the United Nations Environment Programme (UNEP) issued a major report on the effects of oil pollution in the Ogoniland region of the Niger Delta. Little has changed, as this latest oil spill at Bodo demonstrates. Among its findings, UNEP confirmed that Nigerian regulatory agencies “are at the mercy of oil companies when it comes to conducting site inspections”. UNEP also found that Shell had failed to adhere to its own standards in relation to maintaining its infrastructure.

Thousands of oil spills have occurred in the Niger Delta since the oil industry began operations in the late 1950s. Corrosion of the pipes and equipment failure were responsible for the majority of spills. In recent years sabotage, vandalism and theft of oil have also contributed to pollution. However, corrosion and equipment failure remain very serious problems which have never been addressed.

Oil companies are responsible for ensuring that, as far as possible, their equipment is not vulnerable to tampering. However, Shell has not responded to request to for information on any measures it has taken to prevent sabotage and vandalism.

On 3 August Amnesty International and CEHRD published a report on an oil investigation at Bodo in June/July 2012. The report focuses on the lack of transparency in the process and the failure of shell to disclose any information on the condition or age of its pipes.

Since 2011 Shell has posted oil spill investigation data on its website. This move was welcomed by Amnesty International and CEHRD. However, as research by both organizations has made clear, the process on the ground remains highly problematic, and there is a lack of independence and transparency in the investigations themselves.

SOURCE: http://allafrica.com/stories/201208030327.html

NTSB blame multiple corrosion cracks & ‘weak’ regulations – Kalamazoo Oil Spill

The National Transportation Safety Board blamed multiple corrosion cracks and “pervasive organizational failures” at the Calgary-based Enbridge pipeline company for a more-than-20,000-barrel oil spill two years ago near Michigan’s Kalamazoo River.

The cost of the spill has reached $800 million and is rising, the NTSB said, making the pipeline rupture the most expensive on-shore oil spill in U.S. history. The pipeline’s contents — heavy crude oil from Canada’s oil sands — have made the spill a closely watched case with implications for other pipelines carrying such crude.

The NTSB also blamed “weak federal regulations” by the Pipeline and Hazardous Materials Safety Administration for the accident, which spilled at least 843,444 gallons of oil into a tributary of the Kalamazoo in Marshall, Mich. The oil spread into a 40-mile stretch of the Kalamazoo and a nearby wetlands area.

“This accident is a wake-up call to the industry, the regulator, and the public,” NTSB Chairman Deborah A.P. Hersman said in a statement.  She added that “for the regulator to delegate too much authority to the regulated to assess their own system risks and correct them is tantamount to the fox guarding the hen house.”

The spill began about 5:58 p.m. on July 25, 2010, when a 30-inch diameter pipeline ruptured. Twice, Enbridge workers tried to restart the pipeline after alarms about abnormal pressure in the line and 81 percent of the oil spilled over 17 hours after those alarms, the NTSB said.

“We believe that the experienced personnel involved in the decisions made at the time of the release were trying to do the right thing,” Enbridge’s chief executive, Patrick D. Daniel, said.“As with most such incidents, a series of unfortunate events and circumstances resulted in an outcome no one wanted.”

The case is being scrutinized by industry and environmental groups because it could threaten plans to build new pipelines to carry crude from Canada’s oil sands, or tar sands, into the United States. TransCanada’s controversial Keystone XL pipeline is one of the plans awaiting approval.

The NTSB, part of the Transportation Department, said the Enbridge pipeline break “was the result of multiple small corrosion-fatigue cracks that over time grew in size and linked together, creating a gaping breach in the pipe measuring over 80 inches long.”

SOURCE: http://www.washingtonpost.com/business/economy/ntsb-blames-enbridge-weak-regulations-in-kalamazoo-oil-spill/2012/07/10/gJQAWzqgbW_story.html

Alberta pipeline spills prompt questions

EDMONTON – Three pipeline spills in Alberta this spring have many people wondering whether there are better ways to move the petroleum products that are the lifeblood of Alberta’s economy.

The oil industry’s reliance on pipelines — which organizations such as the Canadian Association of Petroleum Producers and the Canadian Energy Pipelines Association say are the safest way to transport products— have companies like TransCanada and Enbridge proposing to expand their lines to carry Alberta bitumen to refineries in Texas and tankers at Kitimat, B.C., for shipment to Asia and its hungry economy.

“The industry really does move all of its oil and natural gas products through pipeline to get to market,” says Greg Stringham, vice-president of markets and oilsands CAPP. “Today in Canada, we are actually producing … almost three million barrels a day, and that’s across the country of course, from the field, to the upgraders, to refineries.”

To put that volume in perspective, CN Rail began in 2010 to test its ability to move heavy crude, light oil, and bitumen to markets in Eastern Canada and the United States.

The company moved three million barrels of oil last year, and expects to move 15 million barrels in 2012. That’s about five days worth of total production.

“Rail does play a part. But (pipelines) are the main transportation grid we use to move oil across the continent. It really has proven to be a very reliable, very safe, and a very efficient way to move this product,” Stringham says. “We are getting fairly constrained on the pipeline capacity given the growth that is happening.”

The use of tanker trucks to move oil is more difficult to measure. Alberta Transportation does not keep track of vehicles carrying petroleum on roads, but can say 430 of 602 “incidents” in 2011 involved petroleum products. The department defines “incidents” as anything that prevents a product from getting to its destination.

Expanding the reach Alberta’s pipelines is key in maintaining the province’s economic stake in the global oil market, provincial Energy Minister Ken Hughes says.

With that need comes a responsibility to maintain the pipeline system.

“The industry as well as the government need to ensure that we have ways to demonstrate the solid aspects of this way of transporting fuels across Canada,” Hughes says. “North America will continue to be heavy users of oil and of natural gas. Those products have to get to market somehow. What we need to do is ensure that they get there with as few incidents as possible.”

The Pembina Institute think-tank, which is among the environmental groups supporting a call for an independent investigation of Alberta’s pipelines, suggests there could be alternatives to building pipelines — particularly the proposed Enbridge Northern Gateway line to Kitimat, B.C., which has raised concerns from First Nations communities and municipalities along the proposed northern route to the West Coast.

Nathan Lemphers, a senior policy analyst in the Pembina Institute’s oilsands program, says the capacity of existing pipelines could be increased by increasing the number of pumping stations. Alternatively, companies could transport more product via rail.

“It’s not necessarily a clear-cut solution. There’s benefits and drawbacks to each method of transporting oil,” Lemphers says.

Pipelines leak. Trains derail, tanker trucks crash.

Since trains typically move less product than pipelines, spills are smaller. Derailments can be recognized far faster than pipeline spills.

A natural gas operator in Michigan was the first to notice oil spilling from Enbridge’s pipeline at the Kalamazoo River in 2010. The incident has since netted the company a multimillion-dollar fine in the United States and raised questions about the state of the control room in Edmonton, after testimony given during the investigation shed light on what was happening during the 17 hours it took to shut the line.

“When you have the government coming out and saying, well, simply trust us, we have adequate measures in place without actually coming forward and offering evidence for that position, it puts the government in a fairly precarious situation,” Lemphers says. “Having more information on the table will help ground further discussions” about pipeline expansion.

“Having pipelines in your backyard is nothing new for Albertans, but Albertans also have strong ties to the land and want to see the land conserved,” he says.

Doug Goss still remembers an oil spill that cut summer short at Wabamun Lake in 2005.

“It was a disaster, in every sense of the word,” Goss says. “When you get to the point where the front of the beach is covered in oil and there’s dead animals all over the place, and you’re told you can’t use the lake for the rest of the summer for any reason, it’s pretty devastating.”

But unlike the recent spills, the one at Wabamun Lake was from a 43-car train derailment.

That summer, 1.1 million litres (7,000 barrels) of Bunker C fuel oil spilled into the lake, creating a seven-kilometre slick. The cleanup took nearly a year and cost CN Rail an estimated $28 million.

“We haven’t had any issues since that spill many years ago. We cross our fingers all the time that that won’t happen again,” Goss says. “As a resident, we would be proponents of whatever system is proven to be the safest to transport substances like oil.”

The Wabamun incident sparked a provincial study and recommendations for a faster, more comprehensive response to environmental disasters.

Despite a growing volume of freight being moved along its tracks, CN’s derailments are down. In 2011, the company had 55 main track derailments, compared to 110 in 2005. To date, there have been 27 derailments along main tracks compared to 34 at this time last year.

SOURCE: http://www.edmontonjournal.com/news/Alberta+pipeline+spills+prompt+questions/6896510/story.html

Alberta’s big small-pipe problem

They are the little brothers and sisters of the pipeline world. Some are barely large enough to jam a hand into, but they do the dirtiest work in the energy business, ferrying great volumes of raw oil and gas from wells to processing plants.

And though they are small, they often carry large risk, an issue of mounting concern in Alberta, a province that has seen a series of spills train a global spotlight on pipeline safety.

These smaller pipes can often be overlooked, next to the big ones that garner attention when they rupture into the Kalamazoo River — an accident that cost Enbridge Inc. a historic $3.7-million (US) fine this week, on top of $725 million in cleanup costs — or at an Alberta pumping station where the company recently had another large spill.

But in Alberta, the pipe is almost all small. Some 327,000 kilometres of pipe that is eight inches and smaller in diameter spread across the province like a network of veins. It is roughly 90 percent of all pipe in the province, a vast web of steel that is uniquely vulnerable to problems, and uniquely difficult to both oversee and maintain.

In large measure, that’s because the stuff those pipes carry is often nasty: impure, unprocessed energy laced with hydrogen sulphide and water and sand, each of which can inflict damage on buried steel. Construction methods of smaller pipes mean they often can’t be monitored and inspected using the best tools. Some of the junior and mid-sized oil and gas companies that run them don’t have the large dedicated inspection teams employed by larger pipeline operators.

Alberta’s energy regulator says problems on small pipes often lead to small spills, dampening the need for concern.

Alberta’s oil and gas regulator, the Energy Resources Conservation Board (ERCB), noted in a 2007 report that “most of Alberta’s pipeline infrastructure is used for the production of raw oil and gas, which by nature can be highly corrosive.” It said corrosion has been growing as a problem — from 63 percent of all leaks and ruptures in a 1998 report to 70 per cent less than a decade later.

And though overall accidents have been declining, last year Alberta saw 1.5 failures per 1,000 kilometres of pipe — or nearly 500 on its length of small lines. That’s down from an average in previous years of 3.5. Many of those spills are small — all leaks, regardless of size, get reported. But the ERCB also doesn’t record spills at pipeline facilities, like pumping stations, where many of them happen. That makes its numbers tough to compare with other jurisdictions.

The risks on small pipes are magnified by the low flows on stretches that might carry intermittent volumes of product from, say, oil tanks to a processing plant. When flow is slow or stopped, water and hydrogen sulphide are better able to corrode pipe. Sediments can also deposit, creating a mud where microbes can begin to eat away steel.

The ERCB played down the effect of corrosive products, which tend to create “pitting corrosion” that leads to “small volume spills (small leaks) that are not a significant safety hazard because they do not catastrophically rupture,” spokeswoman Cara Tobin said in an e-mailed statement.

(Although small pipes can lead to big spills: In December, 2011, 12,000 barrels spilled from a small Pengrowth Energy Corp. line, while 5,000 barrels leaked from a small Pace & Oil Gas Ltd. well pipe in May). The regulator requires surveillance of pipeline right-of-ways, corrosion evaluations, yearly inspections of water crossings and “continues to review and update its regulations and requirements to improve all aspects of pipeline performance,” she said.

Plus, industry has ways to combat corrosion. Pipes can be protected with MATCOR’s “cathodic protection,” products which uses electric current to counteract corrosion.  Cathodic Protection is mandatory in Alberta. They can also be chemically shielded from corrosion, and maintained with pigs, devices that travel inside the pipe, either to scrub it or detect areas of weakness.

But small pipe is often the hardest to “pig.” Worldwide, roughly a third of all pipe is not piggable. Alberta’s ERCB has no figure on what percentage of its pipe cannot accept pigs — and pigging is not required — but it’s likely to be large. Alberta’s pipeline system is made up of an enormous number of very short lengths, averaging just 1.6 kilometres long.

SOURCE: http://www.bnn.ca/News/2012/7/4/Albertas-big-small-pipe-problem.aspx

 

DOE to delay new cost, schedule for vit plant over corrosion concerns

The Department of Energy will delay coming up with a new cost and schedule for Hanford’s huge vitrification plant after a technical panel agreed with an employee that erosion and corrosion within the plant must be addressed.

David Huizenga, DOE’s senior adviser for environmental management, made the announcement today in a national media call after congressional leaders were briefed this morning.

Resolving technical issues, including how to keep radioactive waste well mixed and to prevent erosion and corrosion within the plant, is expected to take more than a year and cost tens of millions of dollars, Huizenga said.

The testing is intended to give additional confidence that the Waste Treatment Plant can operate for the full 40 years planned to treat up to 56 million gallons of radioactive waste for disposal, Huizenga said.

The waste, held in underground tanks, is left from the past production of plutonium for the nation’s nuclear weapons program.

“We’re trying to address technical issues head on and realistically,” Huizenga said.

By acknowledging issues now, the plant will not end up with unanticipated costs and maintenance issues in the future, he said.

Now the plant is legally required to start operating in 2019 and is projected to cost $12.2 billion, but DOE will not be able to finish it by then and at that price.

DOE had instructed its contractor Bechtel National in February to propose a new cost and schedule for the vitrification plant, which was due in August.

But with technical questions to be addressed for parts of the plant that will handle large quantities of high level radioactive waste, Bechtel will proceed only with a cost and schedule revision for the plant’s Low Level Waste Facility, the Analytical Laboratory and about 20 support facilities.

When testing is finished, it then can address additional cost and schedule information for the vit plant’s High Level Waste Facility and Pretreatment Facility.

Those two buildings have areas called “black cells,” that will be too radioactively hot for workers to safely enter after the plant begins operating for maintenance or to make repairs.

Construction at those facilities already has been ramped down and no further layoffs are anticipated.

Don Alexander, a DOE scientist, raised questions regarding erosion and corrosion in piping and tanks in black cells within the plant in September in a Difference of Professional Opinion report, disagreeing with scientific opinion accepted by DOE.

It was the third set of issues he’d raised in an ongoing Difference of Professional Opinion.

DOE addressed his concerns with a panel of technical experts that concluded his concerns are legitimate, and now DOE is planning testing that will be done in conjunction with already planned mixing testing to resolve them, Huizenga said.

“I think this demonstrates if people raise issues, we are willing to make tough decisions to address them,” Huizenga said.

Corrosion Committee to Explore Effects of Crude to be Transported by Keystone XL

NACE International Logo
Committee will analyze whether diluted bitumen has an increased potential for release compared to other crude oils.

NACE International – The Corrosion Society along with three of its ‘Fellow’ membership will participate on a newly appointed National Academy of Sciences (NAS) committee formed to analyze whether diluted bitumen (dilbit) transported by transmission pipeline has an increased potential for release compared with pipeline transmission of other crude oils. The NACE Fellows are Dr. Brenda J. Little of the Naval Research Laboratory, Dr. Srdjan Nesic of Ohio University and Dr. Joe H. Payer of the University of Akron.

A chief concern about the transport of Canadian crude through the proposed Keystone XL pipeline is a claim that dilbit poses more release risks than other types of crude. In particular, the committee will examine whether there is evidence that dilbit has corrosive or erosive characteristics that elevate its potential for release from transmission pipelines when compared with other crude oils. Should the committee conclude there is no evidence of an increased potential for release, it will report this finding to the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) by spring 2013. Alternatively, if the committee finds evidence indicating an increased potential, it will examine the adequacy of PHMSA’s pipeline safety regulations in mitigating any increased risk and report back to PHMSA by the fall of 2013.

“With all of the controversy surrounding Keystone XL, it is very important that a well-qualified team analyzes the risks, if any, of diluted bitumen,” said NACE Executive Director Bob Chalker. “NAS has put together the right group for the job. NACE supports this effort and I will be interested, along with many others, in seeing the final results.”

SOURCE: http://www.virtual-strategy.com/2012/06/21/committee-explore-effects-crude-be-transported-keystone-xl-includes-three-nace-fellows