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BLBG: BP Pipeline Spills Crude Oil, Natural Gas in Alaska (Update3)
 
By Christian Schmollinger

Nov. 30 (Bloomberg) -- A crude oil and natural gas pipeline spilled an unknown amount of fuel at BP Plc’s Prudhoe Bay field in Alaska, the state regulator said.

The spill has affected 8,400 square feet (780 square meters) of tundra, the Alaska Department of Environmental Conservation said. The leak on a closed 18-inch pipeline carrying crude oil, gas and water was discovered at 3:05 a.m. local time on Nov. 29 about 1.5 miles (2.4 kilometers) from the Lisburne Production Center along Drill Site Line 3, according to the filing.

“The line wasn’t in operation at the time of the release,” David Nicholas, a BP spokesman in London, said by phone, declining to comment on the reason for the spill. “Visual inspection says that it has slowed to a very small rate. The extent of volume of the spill is still being determined, but it’s not materially spreading.”

The Lisburne Production Center collects and processes oil and natural gas liquids from the Lisburne, Point McIntyre and Niakuk fields, according to BP’s Web site. The fields produced an average of 32,151 barrels a day this month, according to data on the Alaska Tax Division’s Web site.

The company has started initial cleanup of the spill and there were no injuries reported, Nicholas said.

BP pleaded guilty to one count of violating the U.S. Clean Water Act after spilling 200,000 gallons of oil in March 2006 from Prudhoe Bay. It was forced to shut more than half of the 400,000 barrel-a-day field after a second leak in August 2006 when crude escaped from pipelines that hadn’t been properly monitored for corrosion.

BP paid a $20 million fine in October 2007 in relation to the spill.

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net

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