Liability Management at a Fuel Pipeline Release Site

Kiran K. Srinivasan, ENTRIX, Inc., 5252 Westchester, Suite 250, Houston, Texas 77005, Tel: 713-662-1920, Fax: 713-666-5227, Email: ksrinivasan@entrix.com
Christina Robinson, ENTRIX, Inc., 5252 Westchester, Suite 250, Houston, Texas 77005,   Tel: 713-662-1912, Fax: 713-666-5227, Email: crobinson@entrix.com

A landowner reported a leak in a subsurface fuel pipeline located on remote, uninhabited farmland.  The landowner perceived a delay by the company in responding to the release and expressed dissatisfaction.  Subsequently, a fire of suspicious origin occurred at the site.  The fire and associated safety concerns resulted in extensive emergency response actions by the company.  A large area was excavated to isolate and repair the pipeline and prevent product migration via a proximal ditch.  However, the excavated, contaminated soils were stockpiled on bare ground without any measures to prevent contaminant leaching or runoff.  The landowner filed a lawsuit against the company alleging that the initial response and subsequent actions were intentionally delayed and thus harmed his interests.  The lawsuit resulted in further delays as protracted negotiations were required with the landowner and his legal counsel to obtain site access.  Meanwhile, the open excavation collected water from several rain events, creating a potential for contamination to migrate and infiltrate.  Also, contaminated stormwater now needed to be addressed.  As an added complication, the landowner hired a consultant who undertook site and regulatory actions that conflicted with the company’s actions.   Because of these developments, the agency increased its scrutiny of an already high-profile project.  During the site investigations, the landowner’s consultant remained onsite to observe and collect split samples.  Extensive negotiations were required with the state agency and the landowner’s counsel before remedial actions could be initiated.  Because the company lacked a plan for expeditiously assessing and addressing potential liability at release sites, it found itself in a reactive mode.  Such a lack of liability planning resulted in significant project schedule delays and cost overruns.  Had a plan existed to address landowner concerns and undertake prompt action to mitigate contamination expeditiously, issues related to schedule, cost and public relations could have been better managed.  The lawsuit and remedial actions are ongoing.

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