Media Alert: Eugene Island Incident Update

Shell Pipeline Company is dispatching a dive vessel to inspect a section of the Eugene Island Pipeline System that lost pressure and released crude oil from a 20-inch diameter line into the Gulf of Mexico on Saturday evening.  Results of today's inspection and a repair plan should be finalized later this week.

A helicopter flyover on Saturday and subsequent flyovers confirm the release point to be approximately 33 miles offshore, 60 miles southwest of Houma, La.  Depth of water at the source is approximately 60 feet.

Based on Shell pipeline control center calculations, an estimated 1,400 barrels (42 gallons per barrel) were released into the Gulf.  Given the mild weather, calm sea and location of the release area, the oil is not expected to reach the shoreline.

Response and cleanup involve the arrival early Monday of the Marine Spill Response Center vessel "Louisiana Responder" to the impacted area to begin oil-water recovery operations. The Coast Guard has approved use of chemical dispersants. 

Cause of the release is under investigation.  The Eugene system will be restarted following any needed maintenance and a thorough inspection.  At this time, we cannot forecast when restart will occur.  Our top priorities during the response and restart phases are safety and the environment.

Notifications have been made to the National Response Center, U.S. Coast Guard and other regulatory agencies.

The Eugene Island Pipeline System moves crude oil from offshore through a 20-inch diameter line to Caillou Island, La., then in a 16-inch diameter line to the Houma terminal, a distance of approximately 154 miles.  Shell Pipeline Company LP is the operator and has a 23 percent ownership interest in the system.   

Shell Pipeline Company LP operates more than 1,200 miles of offshore pipelines, more than 600 miles of onshore pipelines, and over 10 terminals throughout the Gulf of Mexico and southern Louisiana with a capacity exceeding 1.5 million barrels of crude per day.  We typically bring to market more than 1 million barrels per day (b/d) of crude from approximately 150 offshore production platforms in shallow and deep waters.   The company is a wholly owned subsidiary of Shell Oil Products US, a unit of Shell Oil Company.

Impact area:  Ship Shoal blocks 140 to 142.
 
Extent of "silver sheen" as of 8:30 a.m. CDT Monday:  12.6 miles moving east.

Eugene system 20-inch pipeline was inspected via "smart pig" technology in 2008-09 and 2003.  Results from both inspections were "clean runs."

System has a capacity of 173,000 barrels a day, but was operating at about 100,000 barrels a day at the time of the release.

Owners of the Eugene system in addition to Shell: Mobil Eugene Island Pipeline Company, ExxonMobil Pipeline Company, Marathon Offshore Pipeline Company LLC, Chevron Pipeline Company, and Conoco Offshore Pipeline Company.

Shell Media Line:  713-241-4544