Colonial Pipeline Company And DOJ Settle Legacy Issue

ALPHARETTA, Ga. – Colonial Pipeline Company today announced an agreement with the United States Department of Justice (DOJ) to settle civil claims against the company for several past releases of petroleum product to water. In this settlement, Colonial has agreed to pay $34 million in penalties to the United States under the provisions of the Clean Water Act (CWA) to resolve the civil lawsuit filed in November of 2000 on behalf of the U.S. Environmental Protection Agency (EPA).

In addition to the monetary fine, Colonial has agreed to designate 100 percent of the pipeline as a ​“high consequence area” as defined by the Office of Pipeline Safety (OPS) federal pipeline regulations, and to undertake six additional activities specified in the Consent Decree. The activities covered by the Consent Decree parallel system integrity activities that are already performed by the Company, or that are natural extensions of Colonial’s previous efforts. 

The Consent Decree reaffirms that the Office of Pipeline Safety, not the Environmental Protection Agency, has jurisdiction and enforcement responsibilities for pipeline operations. 

“Colonial has worked diligently with DOJ for several years to negotiate a settlement,” stated Colonial CEO David Lemmon. ” We are pleased that this has been accomplished and this legacy issue put behind us.” 

Without waiting to settle the outstanding civil action, which seeks civil penalties for releases dating back to 1996, Colonial moved aggressively to dramatically change its management and significantly improve operating performance. Currently, Colonial holds the ​“best in class” operating record for similar sized pipelines as recognized by the American Petroleum Institute for the past two years. 

“Commitment to safety and preservation of the environment is and always will be the number one priority at Colonial,” stated Lemmon. ​“That said, we strive every day to continually improve our company with our goal being zero spills and zero errors.” 

Under the provisions of the CWA, Colonial was obligated to pay civil penalties for past discharges to waters of the United States. 

Colonial Pipeline includes over 5,500 miles of pipe, extending from Houston and other Gulf Coast refining centers throughout the South and East Coast, terminating at the New York Harbor. Colonial transports gasoline, heating oil, jet fuel, defense fuels, and other refined petroleum products. Founded in 1962, Colonial transports more than 2 million barrels of product per day. That represents approximately 20% of all refined petroleum products delivered in the U.S. Colonial is headquartered in Alpharetta, Georgia.