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Chevron Says Working to Comply With Corrective Action

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Dec. 9 (Bloomberg) -- Chevron Corp. has begun work on plans to comply with a corrective action order issued by the U.S. Transportation Department following a crude-oil pipeline leak in Salt Lake City, according to Mickey Driver, a company spokesman.

“We are in the process of inspecting valves and other equipment along our pipeline,” Driver said today in an e-mail.

The plan will address future prevention measures, enhanced detection and response, and ongoing reliability of the pipeline system, according to Driver.

The Pipeline and Hazardous Materials Safety Administration, which is part of the Transportation Department, issued a corrective order yesterday.

“The order prevents the company from returning the line to service without an approved plan that meets PHMSA’s safety regulations,” Damon Hill, a spokesman for the agency, said in an e-mail.

The order also requires the company to draw up and execute short- and long-term plans for correcting safety issues to prevent similar situations, he said.

“Federal officials tasked with oversight and enforcement of this pipeline’s operation have told us the line will not be restarted without assurances that our residents and environment will be protected,” Ralph Becker, the mayor of Salt Lake City said in a statement today.

To contact the reporter on this story: Leela Landress in Houston at llandress@bloomberg.net

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

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