The discovery of heavy corrosion in a BP pipeline in Alaska, forcing the unprecedented closure of the nation's largest oil field, raises serious questions about how well pipelines are inspected and maintained, including those located in Arizona.

BP clearly has a lot of explaining to do.  The company acknowledged it had not tested the line with a corrosion sensing device called a "smart pig" since 1992.  BP said it didn't think the line needed to be tested very often because it carried crude oil, which is less likely to cause corrosion.  But the 16 miles of severely corroded pipe showed the company could not have been more wrong.

Incredibly, the company still might not be aware of the dangerous corrosion had it not been for a federal order requiring it to run the pig.  That order was issued as a result of a BP pipeline leak last March, which spilled 200,000 gallons of oil in Alaska.

Why a company as large and profitable as BP – its net income last quarter was $7.3 billion, up 30 percent – would fail to properly maintain such a vital piece of its delivery system will be the subject of a federal investigation and congressional hearing.

In Arizona, all intrastate pipelines are inspected every year, and interstate lines are inspected at least every other year.  Today, some 600 inspections are conducted in the state annually.  Responsibility belongs to the Arizona Corporation Commission for intrastate lines and the U.S. Department of Transportation's Office of Pipeline Safety for interstate lines.  The Attorney General's Office does not have regulatory authority for pipeline operations.  But my office can and will get involved in cases where we have jurisdiction, such as ones that involve environmental or antitrust violations.

Arizona has experienced its share of pipeline problems in recent years.  The biggest one occurred June 30, 2003, when an 8-12 inch gasoline line operated by Kinder Morgan ruptured in Tucson.  That break led to statewide shortages, sharply higher pump prices and long lines at gas stations.  My office and the Arizona Department of Environmental Quality obtained a consent judgment requiring Kinder Morgan to pay the state a $500,000 civil penalty for environmental damage done by the spill of more than 50,000 gallons of gasoline.  The penalty ranks as the largest ever imposed under the state's groundwater protection law.

My office has also taken legal action against El Paso Natural Gas Company, which owns and operates a natural gas pipeline in Arizona, for violations of antitrust law and state environmental regulations.  The antitrust lawsuit alleged that the company had manipulated the supply of natural gas in Arizona, leading to higher consumer prices.  The case was settled in 2004, with the company agreeing to spend $40 million to enhance its Phoenix-area pipeline, to accelerate $30 million in capital improvements for its Arizona Pipeline Integrity Program and to allocate $250,000 for emergency preparedness training for state officials.    

Two months ago, my office and the Arizona Department of Environmental Quality settled a pair of lawsuits against El Paso.  In one settlement, the state alleged that the company violated air quality regulations in the replacement of its asbestos-coated pipeline in Mohave County.  The company agreed to pay a $225,000 civil penalty.  In the other case, the company was cited for 13 major hazardous waste violations in Pima County and agreed to a $115,000 penalty.

As these cases show, failing to operate or inspect pipelines properly can have serious consequences.  I will continue to do all I can to make sure that Arizona's pipelines are well-maintained and operated safely.  If they aren't, their owners will be held legally accountable.

Terry Goddard