Pipeline firm will go to trial for blast

By Peggy Andersen

Associated Press

SEATTLE — A federal grand jury returned a seven-count criminal indictment Thursday in the June 1999 gasoline pipeline leak and fire that killed three people in a Bellingham park.

The indictment names the Olympic Pipeline Co., Equilon Pipeline Co. and three of Olympic’s officers or employees: Frank Hopf Jr., Ronald Dean Brentson and Kevin Scott Dyvig.

Five of the counts allege felony violations of the Hazardous Liquid Pipeline Safety Act. The two others allege misdemeanor violations of the Clean Water Act by negligent discharge of oil into a navigable water.

"This means there will be a trial," said Seattle attorney John Wolfe, who represents Hopf.

Olympic declined comment but said it will be reviewing the indictment with its lawyers.

"It continues to be Olympic’s primary objective to operate its pipeline safely, and this commitment is shared by BP, Olympic’s new operator," the company said in a news release.

Houston-based Equilon could not be reached after business hours Thursday.

A rupture in the 400-mile pipeline system on June 10, 1999, released 229,000 gallons of fuel, causing a fireball that devastated a stretch of Whatcom Creek through Bellingham.

Two 10-year-old boys — Wade King and Stephen Tsiorvas — were killed, along with fly fisherman Liam Wood, 18.

"Even though the pipeline accident was two years ago, the healing process has been drawn out in a fight for accountability," said Rep. Rick Larsen, D-Wash., whose district includes Bellingham. "I think the grand jury’s findings will help the community with that healing process."

Larsen vowed to keep pressuring Congress for more stringent pipeline safety regulations.

At the time of the blast, Olympic was owned by Arco, Equilon Enterprises and GATX. Houston-based Equilon, a joint venture of Texaco and Shell, was identified as the pipeline operator in 1999 by the state Department of Ecology.

Equilon has since contended Olympic was a separate entity at the time of the rupture, solely responsible for the operation of the pipeline. Equilon has acknowledged its position "conflicts with statements on record" about pipeline operation.

The two companies sued each other in July, each contending the other was responsible for the pipeline’s operation at the time of the rupture.

The state Ecology Department in June imposed a civil fine of $7.8 million on Equilon, Olympic and IMCO, a construction company that had dug around the pipeline before the rupture. Olympic agreed to pay its portion of the fine; Equilon and IMCO are challenging theirs.

A statement from Wolfe expressed disappointment "that the government has decided to allege that Frank Hopf engaged in criminal conduct." He said Hopf would "vigorously defend himself."

Dyvig faces one misdemeanor charge, Hopf faces one misdemeanor and one felony, and Brentson faces three felony counts. Brentson was Olympic’s supervisor of product movement and Hopf was a vice president. Dyvig was an operations controller.

The families of King and Wood could not be immediately reached for comment. Tsiorvas’ mother, Katherine Dalen, said her response, "especially in light of the tragedy in New York, is extremely muted."

"I am of course interested to see what comes from this, but I guess the sins of industry are … taking second place to my concerns" for those directly affected by Tuesday’s terrorist attacks, Dalen said from Bellingham.

The felony counts allege the defendant companies "did knowingly and willfully violate a minimum safety standard for interstate pipelines."

The indictment alleges the operation of the Bayview terminal and pumping station by Olympic and Equilon occurred without adequate testing of the pipeline’s incoming surge-relief valve. A second felony count concerns the companies’ and Brentson’s alleged failure to correct that malfunctioning valve.

A third felony count faults the operators and Brentson for failure to investigate and correct the cause of repeated shutdowns of the Bayview facility.

The companies, Brentson and Hopf also are charged with failure to provide adequate training for those working on the line.

The final felony count accuses the two companies of failing to properly maintain the incoming surge-relief valve.

BP took over Olympic last summer after acquiring Arco, which had been a minority partner in the company. BP also bought the shares of another minority partner, which gave it 62.5 percent ownership.

BP says it has bolstered the inspection, testing and operation of the line and replaced Equilon officials who held management positions.