MarketColonial Pipeline
Company Profile

Colonial Pipeline

Colonial Pipeline Company is a pipeline operating company headquartered in Alpharetta, Georgia. The company was founded in 1961 and started construction of the Colonial Pipeline in 1962, the largest pipeline system for refined oil products in the U.S. The pipeline – consisting of three tubes – is 5,500 miles (8,850 km) long and can carry 3 million barrels of fuel per day between Texas and New York.

Background
of the National Transportation Safety Board inspects the inside of a junction tank at Colonial Pipeline's Dorsey Junction Transmix Facility in Woodbine, Maryland, in 2014. Colonial consists of more than 5,500 mi (8,850 km) of pipeline, originating in Houston, Texas, on the coast of the Gulf of Mexico and terminating at the Port of New York and New Jersey. Ownership Colonial Pipeline's owners are: • Koch Industries (a.k.a. Koch Capital Investments Company LLC, 28.09% stake ownership) • South Korea's National Pension Service and Kohlberg Kravis Roberts (a.k.a. Keats Pipeline Investors LP, 23.44% stake ownership) • Caisse de dépôt et placement du Québec (16.55% stake ownership via CDPQ Colonial Partners LP, acquired in 2011) • Royal Dutch Shell (a.k.a. Shell Pipeline Company LP, 16.12% stake ownership) • IFM Investors (a.k.a. IFM (US) Colonial Pipeline 2 LLC, 15.80% stake ownership, acquired in 2007) ==History and timeline==
History and timeline
Eight major oil companies began discussing a Gulf Coast–to–East Coast pipeline in 1956. On June 7, 1961, Sinclair Pipeline Co., Texaco Inc., Gulf Oil Co., American Oil Co., The Pure Oil Co., Phillips Petroleum Co., The Cities Service Co. and Continental Oil Co. filed incorporation papers in Delaware to establish the Suwannee Pipe Line Company "for the purpose of building a 22-inch line from Houston to the Baltimore–Washington area, capable of delivering 300,000 barrels of refined products a day." Construction of Colonial Pipeline's original system started in 1961. ;1962 During February 1962, the board of the Suwannee Pipe Line Company met to rename the company. It chose Colonial Pipeline Company to represent the fact that the proposed pipeline would traverse several states that were former colonies. Mobil joined the other eight companies in 1962. ;2021 On May 7, 2021, Colonial was the subject of a ransomware cyberattack that resulted in a shutdown of their operations. == Operations ==
Operations
Colonial Pipeline's field operations are divided into three districts: • The Gulf Coast District includes Texas, Louisiana and Mississippi, and is responsible primarily for the originating deliveries of Colonial. Colonial primarily draws products from refineries along the U.S. Gulf Coast. It also uses a few refineries in the Northeast. • The Southeast District includes Alabama, Tennessee, Georgia, South Carolina and North Carolina. The company's second-largest tank farm is in suburban Atlanta. Local supplies are delivered from here, and it is the origin of pipelines serving Tennessee and southern Georgia. The company's largest tank farm is in Greensboro, North Carolina, where the two mainlines originating in Houston terminate. Deliveries to the Northeast originate from Greensboro. • The Northeast District's operations include Virginia, Maryland and New Jersey. Colonial's Northeast operations also serve Delaware and Pennsylvania. In Linden, New Jersey, Colonial operates the Intra-Harbor Transfer system, which provides numerous customers the ability to transfer products among themselves and access barge transportation for exporting product. Colonial connects directly to several major airports, including Atlanta, Nashville, Charlotte, Greensboro, Raleigh-Durham, Dulles, Baltimore-Washington, and beginning October 2022, Philadelphia International Airport. It serves the New York metropolitan area airports via connections with Buckeye Pipeline. Shipments are mainly fungible: fungible shipments are products commingled with other quantities of the same product specifications. However, segregated shipments are possible and occur regularly: segregated batches preserve a fuel property not allowed in the fungible specifications. All products delivered by Colonial must pass a rigorous test program to assure quality. Colonial protects the quality of the products it carries to the point of excluding certain products. For example, bio-Diesel fuel contains fatty-acid methyl esters (FAME), which cannot be allowed to mix into jet fuels moving in the same pipeline. == Innovations ==
Innovations
• 1978 – Colonial became the first company to equip gasoline storage tanks with geodesic domes. • 1985 – Colonial begins use of caliper and magnetic pigs to detect anomalies in the lines. • 1994 – following a historic flood that ruptured a number of pipelines at the San Jacinto River near Houston, Texas, Colonial directionally drilled 30 feet beneath the river and floodplain to install two new 3,100-foot permanent pipelines. == Safety and environmental record ==
Safety and environmental record
As a result of seven different spills on Colonial Pipeline in four years in the 1990s, the United States Environmental Protection Agency (EPA) filed a complaint in 2000 against Colonial for violations of the Clean Water Act. It alleged gross negligence specifically in three cases noted above: 1996 Reedy River, 1997 Bear Creek, and 1999 Goose Creek/Tennessee River. The parties reached a settlement with Colonial Pipeline that was announced on April 1, 2003. Colonial was required to pay a civil penalty of $34 million, the "largest a company has paid in EPA history." In this period, Colonial received the American Petroleum Institute (API)'s Distinguished Environmental and Safety award for four consecutive years (1999–2002). Spill history • Early on September 2, 1970, residents of Jacksonville, Maryland, detected gasoline odors and noticed gasoline in a small creek flowing beneath a nearby road. That afternoon, a resident notified Colonial at 6:19 p.m. of concern. Colonial had 30-inch-diameter pipeline situated about east of the point where the creek passed under the road, and shut down the Dorsey Junction, Maryland, pump station (the initial pump station for this section of the pipeline) at 6:34 p.m. About 12 hours later, on the morning of September 3, an explosion and fire occurred in a ditch in which Colonial contract workers were manually digging to expose the pipeline and catch gasoline trickling from the ground. Five persons were injured, none fatally. The leak point was found four days later. The failure resulted in a release of 30,186 gallons (718 barrels) of gasoline and kerosene. • At 9:51 p.m. on December 19, 1991, Colonial's Line 2, a 36-inch-diameter petroleum products pipeline, ruptured about 2.8 miles downstream of the company's Simpsonville, South Carolina, pump station. The rupture allowed more than 500,000 gallons (13,100 barrels) of Diesel fuel to flow into Durbin Creek, causing environmental damage that affected 26 miles of waterways, including the Enoree River, which flows through Sumter National Forest. The spill also forced Clinton and Whitmire, South Carolina, to use alternative water supplies. • On Sunday, March 28, 1993, at 8:48 a.m., a pressurized petroleum product pipeline owned and operated by Colonial Pipeline Company ruptured near Herndon, Virginia, a Washington, D.C., suburb. The rupture created a geyser that sprayed diesel fuel more than into the air, coating overhead power lines and adjacent trees, and misting adjacent Virginia Electric & Power Company buildings. The diesel fuel spewed from the rupture into an adjacent storm water management pond and flowed overland and through a network of storm sewer pipes before reaching Sugarland Run Creek, a tributary of the Potomac River. • In October 1994, after heavy rainfall in the Houston area, failures of eight pipelines occurred with damage to 29 others. Two of the failures included Colonial Pipeline lines. The failures occurred at a crossing of the San Jacinto river. The river, which normally flows at 2.5 feet above sea level, crested at 28 feet above sea level on October 21. The flooding caused major soil erosion. Colonial's 40-inch gasoline pipeline failed on October 20 at 8:31 a.m. and by 9:51 a.m., explosions and fires erupted on the river. Colonial's 36-inch (Diesel) pipeline ruptured about 2 p.m. on the same day, although it had previously been temporarily out of service, limiting the amount of the spill. • On June 26, 1996, a 36-inch diameter Colonial pipeline ruptured at the Reedy River, near Fork Shoals, South Carolina. The ruptured pipeline released about 957,600 US gallons (3,625,000 L) of fuel oil into the Reedy River and surrounding areas. The spill polluted a 34-mile (55 km) stretch of the Reedy River, causing significant environmental damage. Floating oil extended about 23 miles (37 km) downriver. Approximately 35,000 fish were killed, along with other aquatic organisms and wildlife. The estimated cost to Colonial Pipeline for cleanup and settlement with the State of South Carolina was $20.5 million. No one was injured in the accident. The pipeline was operating at reduced pressure due to known corrosion issues, but pipeline operator confusion led to an accidental return to normal pressure in that pipeline section, causing the rupture. • On May 30, 1997, Colonial Pipeline spilled approximately 18,900 US gallons (72,000 L) of gasoline, some of which entered an unnamed creek and its adjoining shoreline in the Bear Creek watershed near Athens, Georgia. During the spill, a vapor cloud of gasoline formed, causing several Colonial employees to flee for safety. This spill resulted from a calculation error related to a regular procedure. No one checked the calculations, nor did Colonial have a procedure in place to check such calculations. The line carrying gasoline was repaired and the distillate line, which carries Diesel fuel, jet fuel and other products, was inspected and found to be undamaged. Both lines were restarted two days later on October 5, 2012. • September 21, 2015, a leak was discovered in Centreville, Virginia, by a local restaurant employee. The leak was estimated to have released 4,000 gallons of hydrocarbon product over the course of the preceding 2 weeks. Product was located and removed from the downstream retention pond adjacent to a townhome community. • On Friday, September 9, 2016, a leak was detected in Shelby County, Alabama, spilling an estimated 252,000 US gallons (954,000 L) of summer-grade gasoline, requiring a partial shutdown of the pipeline and threatening fuel shortages in the southeastern United States. This was Colonial's "biggest spill in nearly two decades". On November 1, 2016, the U.S. Occupational Safety and Health Administration had control of the site, where the fire was still burning. The shutdown was affecting primarily the Southeast, as Northeast markets can receive some oil by water. • In the summer of 2020, a Colonial Pipeline gasoline pipeline leaked 2 million gallons into the Oehler Nature Preserve near Huntersville, North Carolina, without detection. After detection by a group of teenagers, it took Colonial five days to repair the in the pipeline. As of February 2021, Colonial recovered 800,000 gallons of gasoline and 200,000 gallons of contaminated water. Neither NC Department of Environmental Quality nor Pipeline and Hazardous Materials Safety Administration assessed fines. ==Representation in media==
Representation in media
The enormous scale of the Colonial Pipeline Project attracted considerable media attention. Fortune magazine featured the project as its cover story in February 1963. Colonial was featured in an August 1964 edition of Time magazine in an article titled, "The Invisible Network: A Revolution Underground". An article in a late 1965 edition of Pipeline Magazine included: "Colonial Pipeline will perhaps do more to change America's transportation and marketing operations in the East and South than any single undertaking in which our country has participated in recent years." ==See also==
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