Colonial Pipeline Explained

The Colonial Pipeline is the largest pipeline system for refined oil products in the U.S.[1] The pipeline – consisting of three tubes – is 5,500 miles (8,850 km) long and can carry 3 million barrels of fuel per day between Texas and New York.[2]

It is operated by the Colonial Pipeline Company, which is headquartered in Alpharetta, Georgia.[3] The company was founded in 1961 and construction of the pipeline began in 1962.

In May 2021, the pipeline was the subject of a ransomware cyberattack that caused a shutdown of their operations for five days, which resulted in a temporary fuel shortage along the East Coast.[4] [5] [6]

Background

Colonial consists of more than 5,500 mi (8,850 km) of pipeline, originating in Houston, Texas, on the coast of the Gulf of Mexico and terminating at the Port of New York and New Jersey.[1] The pipeline travels through the coastal states of Texas, Louisiana, Mississippi, Alabama, Georgia, South Carolina, North Carolina, Virginia, Maryland, Delaware, Pennsylvania, and New Jersey. Branches from the main pipeline also reach Tennessee. It delivers a daily average of 100000000USgal of gasoline, home heating oil, aviation fuel and other refined petroleum products to communities and businesses throughout the South and Eastern United States.

The main lines are and in (inner) diameter, with one devoted primarily to gasoline and the other carrying distillate products such as jet fuel, diesel fuel, and home heating oil. The pipeline connects directly to major airports along the system. Fifteen associated oil terminals store more than 1200000000USgal of fuel and provide a 45-day supply for local communities.

Products move through the main lines at a rate of about 3mph5mph. It generally takes from 14 to 24 days for a batch to get from Houston, Texas to New York Harbor, with 18.5 days the average time.[7]

Ownership

Colonial Pipeline's owners are:

History and timeline

Eight major oil companies began discussing a Gulf Coast-to-East Coast pipeline in 1956. On June 7, 1961, Sinclair Pipeline Co., Texaco Inc., Gulf Oil Co., American Oil Co., The Pure Oil Co., Phillips Petroleum Co., The Cities Service Co. and Continental Oil Co. filed incorporation papers in Delaware to establish the Suwannee Pipe Line Company "for the purpose of building a 22-inch line from Houston to the Baltimore-Washington area, capable of delivering 300,000 barrels of refined products a day."[10] Construction of Colonial Pipeline's original system started in 1961.[11] [12]

1962During February 1962, the board of the Suwannee Pipe Line Company met to rename the company. It chose Colonial Pipeline Company to represent the fact that the proposed pipeline would traverse several states that were former colonies. Mobil joined the other eight companies in 1962.On March 6, 1962, Colonial Pipeline Company formally announced its plans. A press release stated that the nine companies "launched the largest single, privately financed construction project in the history of the United States." The initial investment by the nine companies was almost $370 million. R.J. Andress was named president of the newly formed company.

Constructing the Colonial Pipeline required 600,000 tons of steel; and trenching 16.7 million cubic yards of earth to bury the pipeline. It initially included 27 pumping stations to move refined product between Houston and Linden, New Jersey.

A ceremonial ground-breaking near Atlanta, the pipeline's eventual headquarters, on June 20, 1962, was attended by U.S. Commerce Secretary Luther Hodges and company, city and state officials. On July 2, 1962, Colonial Pipeline Company solicited bids from contractors to build 15 segments of the pipeline's mainline. Each segment averaged 100 miles and 200–300 workers. Work progressed at roughly one mile per day for each of the segments. The first lengths of pipe were delivered by rail, barge, and on specially constructed trailers to handle 80-foot double joints on the road. Construction started on August 1, 1962, in Mississippi.

In December 1962, Ben "Tex" Leuty was named president of Colonial Pipeline Company. He had earlier served as vice president and general manager overseeing construction of the pipeline.

1963Engineers needed to solve many problems to construct the pipeline. Chief among these was designing and constructing valves capable of opening and closing 2-ton steel gates in a timely manner to prevent substantial intermingling of different products. Electric motors required 3 minutes to close the massive gates; this allowed 2,400 barrels of product to intermix, rendering the product unusable. To reduce this intermixing, Colonial engineers designed a hydraulic system which reduced the intermixing (and loss) to 120 barrels as changes were made in products shipped.

The first "linefill" of Colonial began the morning of September 16, 1963, in Houston. It was shut down that day, because of forecasts of a developing major storm. Two days later Hurricane Cindy struck the Gulf Coast. Product reached Greensboro, North Carolina for the first time in November 1963. During the next several months, product was delivered to markets farther north in the Southeast and Mid-Atlantic states.

1964On April 27, 1964, the first batch of refined product was delivered to the Roanoke, Virginia area. On June 2, 1964, Colonial made its first delivery to the Baltimore, Maryland – Washington, D.C., area. On December 1, 1964, mainline construction of the Colonial Pipeline was completed, and the Linden Junction Tank Farm and Delivery Facility in New Jersey was activated. The Colonial Pipeline system was fully operational on December 18, 1964.
1965The Colonial system averaged a throughput of 636,553 barrels of refined product a day in 1965, its first full year of operation.

Fred Steingraber was elected president of Colonial Pipeline Company on July 26, 1965, taking control in October.

1966By February 1966, Colonial was averaging a daily throughput of 776,883 barrels of refined product each day, surpassing the 600,000 barrel per day estimated when construction began just a few years before. During May 1966, Colonial began phase one of an expansion project to add 18 intermediate booster stations to add horsepower to the system. This resulted in increasing product flow through the mainline between Selma, North Carolina and Greensboro, North Carolina. The Colonial pipeline board of directors approved phase 2 and 3 of its early expansion projects to increase capacity on its mainline to 1 million barrels per day.
1967Phase two of the expansion was completed in November 1967, adding additional pump units and a new stubline from Mitchell, Virginia to Roanoke, Virginia.
1971"Looping", or adding a second line parallel to the first, began in 1971. This construction continued through 1980, essentially doubling the capacity of the pipeline system. The second line was staffed by 593 employees.
1972Colonial's average throughput increased to an average of 1,584,000 barrels per day.Colonial's ownership increased to 10 shareholders including Atlantic Richfield Company; BP Oil Company; Cities Service Company; Continental Pipe Line Company; Mobil Pipe Line Company; Phillips Investment Company; Texaco, Inc.; The American Oil Company; The Toronto Pipe Line Company and Union Oil Company.
1975Colonial Pipeline Company named Tom Chilton as president and CEO.
1977Colonial Pipeline announced the construction of a 40-inch loop line from Atlanta, Georgia to Greensboro, North Carolina, and a 16-inch lateral loop between Greensboro, North Carolina and Selma, North Carolina. These improvements were estimated to increase system capacity by nearly 20 percent to two million barrels per day.
1978On November 3, 1978, the new 40-inch line from Atlanta, Georgia to Greensboro, North Carolina began service. Colonial became the first company to equip gasoline storage tanks with geodesic domes. Colonial updated its Atlanta control center with a new generation of its computerized SCADA system.
1980An expansion project totaling $670 million neared completion. The Colonial Pipeline system capacity was 83 percent more than when the system first opened in 1964.
  • 1984Colonial began deliveries to Department of Defense, Defense Fuel Supply Command (DFSC).
  • 1985Colonial began using caliper and magnetic pigs to detect anomalies in its pipeline system.
    1987Donald Brinkley was named president and CEO of Colonial Pipeline Company. Colonial Pipeline Company celebrated its 25th anniversary, serving 79 shipper companies and 67 suppliers.
    1988Colonial's annual throughput attained 635.6 million barrels. During September 1988, Colonial replaced 7,700 feet of mainline pipe across the Delaware River at a cost of $10 million.
    1990Colonial's annual throughput attained 667.8 million barrels, a record volume for the company.
    1991Colonial Pipeline Company relocated its corporate headquarters in Atlanta from Lenox Towers to Resurgens Plaza.
    1992Colonial's annual throughput attained 676.2 million barrels. Colonial completed 4,000 miles of pipeline inspections with caliper pigs and corrosion inspections on 3,000 miles of pipe with magnetic pigs.
    1996Colonial introduced elastic-wave pigs to inspect and detect microscopic cracks in the pipeline walls.
    1997On March 26, 1997, Colonial Pipeline Company was one of ten companies recognized for quality service by the Department of Defense, Military Traffic Management Command. Colonial president and CEO Donald Brinkley retires, David Lemmon named president and CEO.
    1998Colonial replaced Pipeline Instruction and Proficiency Examination with a computer-based training program for operations and environmental field staff. Colonial expands crack-pig internal inspection program, a key element of system integrity.
    1999As a precautionary measure, on December 31, 1999, Colonial Pipeline shut down operations for a few hours before and after midnight to prevent any Y2K-related power outages.
    2000Colonial announced plans to increase pump power on the mainline, which would increase daily capacity by 144,000 barrels to 2.35 million barrels per day. On July 27, Colonial Pipeline announced that it acquired Alliance Products Pipeline and Terminal System from BP Amoco.
    2001Colonial Pipeline Company was recognized by API for its safety and environmental record, receiving the first "Distinguished Environmental and Safety Award".

    During September 2001, Colonial Pipeline Company relocated its headquarters from Atlanta to suburban Alpharetta, Georgia. After the September 11, 2001 terrorist attacks on the United States, Colonial increased security at each of its facilities and created a comprehensive security plan. This was later recognized by the Federal Government as a model for the pipeline industry.Colonial Pipeline marked a record year with an annual throughput of 2.3 million barrels per day.

    2008After the passage of Hurricane Ike in September 2008, the pipeline was operated at a severely reduced capacity due to a lack of supply from refineries in the Gulf Coast that had closed, causing gasoline shortages across the southeastern United States.
    2017

    Joe Blount is named CEO.

    2020

    An estimated two million gallons of gasoline leaked into the Oehler Nature Preserve near Huntersville, North Carolina. This was the largest onshore oil spill in American history.[13]

    2021

    See main article: Colonial Pipeline ransomware attack. On May 7, 2021, Colonial was the subject of a ransomware cyberattack that resulted in a shutdown of their operations. Approximately 12,000 gas stations were affected directly by the shutdown. Operations were restored on May 13, 2021.

    2022Melanie Little named President and CEO[14]

    Operations

    Colonial Pipeline's field operations are divided into three districts:

    Colonial connects directly to several major airports, including Atlanta, Nashville, Charlotte, Greensboro, Raleigh-Durham, Dulles, Baltimore-Washington, and beginning October 2022, Philadelphia International Airport.[18] It serves New York metropolitan area airports via connections with Buckeye Pipeline.

    Colonial's approved product list includes more than 86 different products. Approximately 15 to 20 of these products move with great regularity on the pipeline.[19] Shipments are mainly fungible: fungible shipments are products commingled with other quantities of the same product specifications. However, segregated shipments are possible and occur regularly: segregated batches preserve a fuel property not allowed in the fungible specifications.

    All products delivered by Colonial must pass a rigorous test program to assure quality. Colonial protects the quality of the products it carries to the point of excluding certain products. For example, bio-Diesel fuel contains fatty-acid methyl esters (FAME), which cannot be allowed to mix into jet fuels moving in the same pipeline.

    Innovations

    Safety and environmental record

    As a result of seven different spills on Colonial Pipeline in four years in the 1990s, the United States Environmental Protection Agency (EPA) filed a complaint in 2000 against Colonial for violations of the Clean Water Act. It alleged gross negligence specifically in three cases noted above: 1996 Reedy River, 1997 Bear Creek, and 1999 Goose Creek/Tennessee River. The parties reached a settlement with Colonial Pipeline that was announced on April 1, 2003. Colonial was required to pay a civil penalty of $34 million, the "largest a company has paid in EPA history." "Under the consent decree, Colonial will upgrade environmental protection on the pipeline at an estimated cost of at least $30 million."[20]

    In this period, Colonial received the American Petroleum Institute (API)'s Distinguished Environmental and Safety award for four consecutive years (1999–2002). Some of these awards were made after EPA had filed a complaint against the company for violations of the Clean Water Act, and prior to the landmark civil penalty assessed in the settlement of the civil case.[20]

    In 2005, Hurricane Katrina knocked out power in large parts of Mississippi and Louisiana, forcing Colonial to operate at reduced flow rates. The company rented portable generators to help restore partial service as utilities recovered and restored normal service. When Hurricane Rita hit a month later, Colonial used these generators to help load product stranded in refinery storage tanks that did not have power. By the time hurricanes Gustav and Ike struck in 2008, Colonial owned and operated this set of emergency generators. It purchased a new set of generators in 2012 and stationed them in Mississippi, inland and out of the direct path of most storms.[21]

    Spill history

    Representation in media

    The enormous scale of the Colonial Pipeline Project attracted considerable media attention. Fortune magazine featured the project as its cover story in February 1963. Colonial was featured in an August 1964 edition of Time magazine in an article titled, "The Invisible Network: A Revolution Underground". An article in a late 1965 edition of Pipeline Magazine included: "Colonial Pipeline will perhaps do more to change America's transportation and marketing operations in the East and South than any single undertaking in which our country has participated in recent years."

    See also

    External links

    Notes and References

    1. https://www.reuters.com/article/us-pipeline-blast-alabama-idUSKBN12V2FC Devika Krishna Kumar, Commodities: "Colonial may open key U.S. gasoline line by Saturday after fatal blast"
    2. News: Krauss . Clifford . 2021-05-10 . What We Know About the Colonial Pipeline Cyberattack . en-US . . 2021-05-11 . 0362-4331 . 2021-05-11 . https://web.archive.org/web/20210511004329/https://www.nytimes.com/2021/05/10/business/colonial-pipeline-ransomware.html . live .
    3. Web site: Our Company . dead . https://web.archive.org/web/20210510235337/https://www.colpipe.com/about-us/our-company . 2021-05-10 . 2021-05-11 . Colonial Pipeline Company . en-US .
    4. News: U.S. pipeline operator that transports 45% of East Coast fuel shuts entire network after cyberattack . . May 8, 2021 . May 8, 2021 . May 8, 2021 . https://web.archive.org/web/20210508164523/https://www.cnbc.com/2021/05/08/colonial-pipeline-shuts-pipeline-operations-after-cyberattack.html . live .
    5. News: Cyber attack shuts down top U.S. fuel pipeline network. Reuters. May 8, 2021. 2021-05-08. 2021-05-08. https://web.archive.org/web/20210508050319/https://www.reuters.com/technology/colonial-pipeline-halts-all-pipeline-operations-after-cybersecurity-attack-2021-05-08/. live.
    6. Web site: Colonial Pipeline paid hackers nearly US$5M in ransom. 13 May 2021. live. 2021-05-14. 2021-05-14. https://web.archive.org/web/20210514171507/https://www.bnnbloomberg.ca/colonial-pipeline-paid-hackers-nearly-us-5m-in-ransom-1.1603285.
    7. http://www.colpipe.com/ab_faq.asp FAQ
    8. Web site: La Caisse de dépôt deviendra actionnaire du plus important pipeline aux États-Unis . 17 November 2011 . 2021-05-12 . 2021-05-12 . https://web.archive.org/web/20210512150354/https://www.ledevoir.com/economie/actualites-economiques/336226/la-caisse-de-depot-deviendra-actionnaire-du-plus-important-pipeline-aux-etats-unis . live .
    9. Web site: Colonial Pipeline . 2021-05-12 . 2021-05-12 . https://web.archive.org/web/20210512084739/https://www.ifminvestors.com/investment-capabilities/infrastructure/asset-portfolio/colonial-pipelines . live .
    10. Book: Parker, Barry. Colonial Pipeline: Courage, Passion, Commitment. 2002. Parker Hood. Chattanooga, TN. 0-9645704-8-3. Robin Hood.
    11. Web site: Popular Science. Bonnier. Corporation. 1 October 1963. Bonnier Corporation. 17 September 2016. Google Books. 30 May 2021. https://web.archive.org/web/20210530100051/https://books.google.com/books?id=niADAAAAMBAJ&pg=PA130&dq=colonial+pipeline. live.
    12. Web site: Home. Colonial Pipeline.com. 17 September 2016. 29 March 2014. https://web.archive.org/web/20140329072900/http://www.colpipe.com/home.asp. live.
    13. News: Colonial Pipeline spill now largest onshore leak in U.S. history . 23 July 2022 . WITN . 22 July 2022.
    14. News: Little named Colonial Pipeline president, CEO .
    15. http://www.eia.gov/analysis/petroleum/nerefining/update/pdf/neprodmkts.pdf "Potential Impacts of Reductions in Refinery Activity on Northeast Petroleum Product Markets"
    16. http://www.pipeline-news.com/feature/colonial-pipeline-provides-%E2%80%9Ccall-you-dig%E2%80%9D-message "Colonial Pipeline Provides "Call Before You Dig" Message"
    17. Web site: Services: Intra Harbor Transfer Service . 2012-10-09 . dead . https://web.archive.org/web/20121001045927/http://www.colpipe.com/sv_iht.asp . 2012-10-01 .
    18. Web site: Colonial Pipeline completes Philadelphia International Airport connection. PR Newswire. October 14, 2022. October 31, 2022.
    19. Web site: Archived copy . 2012-10-09 . dead . https://web.archive.org/web/20121116100812/http://www.colpipe.com/pdfs/cplmansec3-102912.pdf . 2012-11-16 .
    20. https://www.epa.gov/enforcement/colonial-pipeline-company-clean-water-act-settlement Enforcement, "Colonial Pipeline Company Clean Water Act Settlement"
    21. https://archive.today/20130119000650/http://www.businessweek.com/news/2012-08-28/isaac-to-test-power-system-upgrades-after-katrina-s-blackouts "Isaac to Test Power System Upgrades After Katrina's Blackouts"
    22. Web site: Archived copy . 2013-01-28 . dead . https://web.archive.org/web/20121009215739/https://www.ntsb.gov/doclib/recletters/1972/P72_1_7.pdf . 2012-10-09 ., National Transportation Safety Board
    23. https://web.archive.org/web/20060824202937/http://ncsp.tamu.edu/reports/NTSB/ntsbPipeStudy/SIR9602.pdf NTSB Report
    24. https://www.ntsb.gov/doclib/safetystudies/sir9604.pdf "Safety Studies
    25. http://www.epa.gov/compliance/resources/cases/civil/cwa/colonialfs.pdf "Colonial at Fork Shoals"
    26. http://connection.ebscohost.com/c/articles/11204954/how-colonial-pipeline-recovered-from-devastating-spill-set-new-industry-standards David L. Lemmon, "How Colonial Pipeline Recovered from a Devastating Spill and Set New Industry Standards"
    27. https://www.ntsb.gov/doclib/reports/1998/PAR9801.pdf 1998 Report
    28. Web site: Colonial Pipeline reports Tennessee gasoline spill . Reuters . 2012-10-04 . 2016-11-01 . 2013-02-01 . https://archive.today/20130201120402/http://www.reuters.com/article/2012/10/04/pipeline-operations-colonial-atlanta-idUSL1E8L49ZU20121004 . live .
    29. http://www.colpipe.com/press_release/pr_116.asp "Press Release"
    30. Web site: Archived copy . 2017-10-12 . 2017-06-28 . https://web.archive.org/web/20170628013726/https://www.ntsb.gov/investigations/AccidentReports/Reports/PAB1701.pdf . live .
    31. News: Colonial Pipeline: 252,000 gallons of gasoline have leaked in Shelby County. 2016-09-13. WBRC. https://web.archive.org/web/20160917031812/http://www.wbrc.com/story/33093665/update-colonial-pipeline-252000-gallons-of-gas-leaked-from-line. 2016-09-17. dead.
    32. Web site: Leaking Alabama pipeline could restart this week, company says . AL.com . 19 September 2016 . 2016-11-01 . 2016-10-08 . https://web.archive.org/web/20161008213929/http://www.al.com/news/birmingham/index.ssf/2016/09/leaking_alabama_pipeline_could.html#incart_std . live .
    33. Web site: Helena – Colonial Pipeline Response. colonialresponse.com. 1 November 2016. 9 November 2016. https://web.archive.org/web/20161109180950/https://helena.colonialresponse.com/. dead.
    34. News: Company: Blast-damaged gasoline line back in service. 2016-11-06. News & Observer. 2016-11-07. 2016-11-07. https://web.archive.org/web/20161107143843/http://www.newsobserver.com/news/business/article112904678.html. live.
    35. Web site: Sora . Lisa . Two weeks after Colonial Pipeline gasoline spill, Huntersville residents alarmed about ongoing lack of transparency . NC Policy Watch . 7 March 2021 . 27 Aug 2020 . 6 March 2021 . https://web.archive.org/web/20210306230047/http://www.ncpolicywatch.com/2020/08/27/two-weeks-after-colonial-pipeline-gasoline-spill-huntersville-residents-alarmed-about-ongoing-lack-of-transparency/ . live .
    36. Web site: Taft . Molly . One of The Nation's Largest Pipelines Caused The Biggest Spill in Decades–And We're Just Hearing About It . Gizmodo . 6 March 2021 . Gawker Media . 7 March 2021 . 6 March 2021 . https://web.archive.org/web/20210306234809/https://earther.gizmodo.com/one-of-the-nation-s-largest-pipelines-caused-the-bigges-1846406684 . live .
    37. News: Calma . Justine . 2022-07-25 . Teenagers spotted the largest gas pipeline spill in US history . 2022-07-26 . The Verge . en.
    38. News: Giant N.C. spill shows gaps in pipeline safety . . Soraghan . Mike . February 25, 2021 . February 25, 2021 . February 25, 2021 . https://web.archive.org/web/20210225155716/https://www.eenews.net/stories/1063725961 . live .