Oil leaks from Gulf of Mexico pipe hit by anchor

NEW YORK
Dec 26

An undersea crude oil pipeline ruptured on Sunday after being hit by a ship's anchor, spilling over 20,000 gallons of crude oil into the Gulf of Mexico and leaving a half-mile long oil slick on the water.

A spokesman for the U.S. Department of Transportation said the extent of the damage to the High Island Pipeline, which is operated by Plains All American Pipeline L.P. (PAA.N: Quote, Profile , Research), was still being evaluated.

"Investigations are still ongoing, but it appears the pipeline was struck by a tanker's anchor," said a DOT spokesman.
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A 60-yard-wide oil sheen was visible on the water extending half a mile from the site of the accident, which occurred about 30 miles southeast of Galveston, Texas, a Coast Guard spokesman said.

"(The pipeline) is still leaking about 80 to 400 gallons per day of oil," Coast Guard spokesman Adam Wine said.

Plains said crude oil flows through the pipeline were halted as soon as a drop in pressure was detected and that it was working with federal and state agencies to minimize the effects of the spill on the environment.

The High Island Pipeline System (HIPS) connects offshore oil platforms in the High Island and East Breaks areas of the Gulf of Mexico with Texas City, Texas.

The pipeline is currently able to pump 26,000 barrels per day of crude oil, according to the DOT.

Oil fields operated by Apache Corp. (APA.N: Quote, Profile , Research), Anadarko Petroleum Corp. (APC.N: Quote, Profile , Research) and Newfield Exploration Co. (NFX.N: Quote, Profile , Research) are among those served by the High Island Pipeline, according to a map prepared by oil industry consultants Purvin and Gertz Inc.

An Apache spokesman said the company had shut in about 4,000 barrels per day of oil output from fields served by the HIPS pipeline.