Kinder Morgan to Close Pipeline for While

Kinder Morgan Says It Doesn't Expect Pipeline Accident to Have Major Financial Impact

November 10, 2004
Yahoo Business

HOUSTON (AP) -- Pipeline operator Kinder Morgan Energy Partners LP reported Wednesday that a fatal accident involving one of its pipelines in San Jose, Calif., will likely keep the pipeline shut down for an undetermined amount of time but is not expected to have a "significant" adverse financial effect on the company.

A portion of the 60-mile pipeline, which transports gasoline, jet fuel and diesel fuel from Concord, Calif., to San Jose, exploded when it was struck by a third-party construction crew Tuesday morning. The 10-inch pipeline was transporting gasoline at the time. The blast killed two, injured six, destroyed a nearby home and damaged several apartment buildings.

Kinder Morgan said "it is premature to estimate when the pipeline will resume operations," but that it will be shut down for at least two days. The company said it will use vacuum trucks to remove gasoline from the pipeline once local and federal authorities allow its workers to enter the site. A definite schedule for repair and a return to operations has yet to be determined. The company expects no immediate supply issues to result from the incident and has notified customers to arrange alternative plans for delivery.

Kinder Morgan said it does not believe the incident will require a major environmental clean-up effort.

Shares of Kinder Morgan were down 9 cents at $45.51 in afternoon trading on the New York Stock Exchange.

http://biz.yahoo.com/ap/041110/kinder_morgan_explosion_1.html