Bloomberg News

Holly Energy Has Leak From Six-Inch Oil Pipeline in Texas

January 31, 2012

(Updates with pipeline size in first paragraph.)

Jan. 31 (Bloomberg) -- Holly Energy Partners said it’s cleaning an oil spill from a six-inch pipeline that gathers crude from wells in the Permian Basin in Texas.

The line is part of a network that gathers oil for delivery to nearby refineries or Midland, Texas, the Dallas-based company said in a statement.

Holly uses the system to deliver feedstock to the 115,000- barrel-a-day Navajo refinery in Artesia, New Mexico, according to the company. The leak isn’t expected to affect production at the plant, as it has other means of receiving oil, the company said.

“Remediation of the affected soil is expected to commence shortly,” Holly said in the statement. “Once the soil remediation is complete HEP does not anticipate any material environmental impact from the spill or safety risk to the public.”

About 1,100 barrels of oil have been recovered from the spill and more was absorbed in the soil at Holly’s Wood Station pump complex, where the leak occurred, the statement shows.

The pipeline that leaked is shut, while the rest of the gathering system continues to operate, the company said. The line is expected to be repaired and returned to service within days, according to Holly.

--Editors: David Marino, Bill Banker

To contact the reporter on this story: Lynn Doan in San Francisco at ldoan6@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net


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