Plains Midstream criticized for pipeline leak into Red Deer River

The owner of a pipeline that leaked nearly half amillion litres of oil into a central Alberta river has been heavily criticized by the province's energy watchdog.

The Alberta Energy Regulator has concluded that Plains Midstreamdidn't inspect its Rangeland pipeline often enough, didn't payenough attention to government warnings, failed to enact adequatemitigation measures once the leak occurred and communicated poorlywith hundreds of people affected by the spill in June 2012.

"Plains failed to complete inspections of the pipeline at therequired frequency according to its own pipeline integritymanagement program," said the regulator's report released Tuesday.

"Plains failed to apply appropriate mitigation measuresaccording to its own hazard assessment."

The report comes as the regulator conducts an overall audit ofPlains Midstream's Alberta operations. The U.S.-based company also experienced a pipeline leak in 2011 of 4.5 million litres of oilnear Peace River.

"We need to be convinced that they can continue to operatesafely in Alberta," said regulator spokesman Darin Barter. "We arenot convinced that can be done right now."

Uncertain if charges will be laid

Alberta Environment spokeswoman Nikki Booth said it is too earlyto determine if charges will be laid.

The 2012 spill was discovered June 7 when landowners just northof the community of Sundre began phoning in reports of smelling rotten eggs the telltale odour of sour gas or sour oil.

The spillwas soon tracked to Jackson Creek, which flows into the Red DeerRiver.

Heavy rains had recently swollen the flow in the river to 10times the normal amount.

The regulator concluded that the heavy flow eroded the riverbedaround the pipe and exposed it. The pipeline then experienced a"guillotine failure" at a weld circling the pipe.

"The pipeline failed due to high-cycle fatigue, likely caused byvibrations induced by river flow," the report says.

Although the report concluded there were no structural problemswith the 50-year-old line, the investigation found the frequency ofthe company's inspections met neither provincial rules nor its ownguidelines.

Plains failed inresponse to warning

Plains also failed to take advantage of warnings, the reportsays.

"Had Plains responded to the government of Alberta's highstreamflow advisory issued prior to the incident, it could haveisolated, cleaned and purged the pipeline section, leaving thepipeline in a safe condition."

The immediate area around the spill is mostly ranchland. Thelarger area is considered pristine wilderness by many and is heavily used by campers, hunters and fishers.

The community of Sundre is upriver from the spill, but the city of Red Deer is downstream, as is the GlenifferReservoir, a popularboating and recreation lake.

Booms to catch oil were set up on Gleniffer. The marina andcampground were closed and fishing shut down. Drinking water wastrucked in for people in 750 recreation lots and permanent homes.

Rafting, fishing and guiding businesses were affected.

More than 170 people were at one time cleaning up the475,000-litre spill with lake-surface skimmers and absorbent padsalong the creek. Wildlife deterrents were placed along the banks tokeep animals away.

Still, people reported oil pooling along the highly braided rivermargins and mixing with silt and sediments. Oil also collected inprotected spots such as the Butcher Creek Natural Area.

Plainsdealt poorlywith landowners

The regulator criticized how Plains dealt with those affected bythe spill.

"Due to concerns regarding deficiencies in Plains'scommunications with stakeholders ... (Alberta Energy Regulator)communications staff had to direct Plains's communicationsthroughout the incident."

A spokesman from Plains Midstream was not immediately available to respond to the report.

Plains has been ordered to update its emergency response andcommunications plans. It must also submit a proposal detailing howthe company will prevent future regulatory noncompliance.

The section of pipe that failed has since been abandoned.