NTSB faults pipeline firm in deadly 1999 explosion

WASHINGTON — Five major missteps — ranging from computer problems to construction damage — led to Bellingham's deadly pipeline explosion in 1999, the National Transportation Safety Board said yesterday in a long-awaited report.

Acting Chairwoman Carol Carmody said she was struck by the "litany of failures all around" that led to the Olympic Pipe Line accident.

"It's regrettable that terrible things have to happen before progress is made, but it does appear that progress has been made," she said. And "there is more to do."

On June 10, 1999, some 237,000 gallons of gasoline spilled into two Bellingham creeks and later ignited into a massive fireball. The accident took the lives of 10-year-olds Wade King and Stephen Tsiorvas and 18-year-old Liam Wood; it also destroyed one home and killed thousands of fish and other wildlife.

Pipeline cases Legal actions stemming from the deadly 1999 Bellingham pipeline explosion: Criminal: Olympic, Equilon (now Shell Pipe Line), and three employees are scheduled for trial Jan. 13 on charges stemming from the rupture. Civil: The Justice Department in May sued Olympic and Equilon for gross negligence and is seeking $37.2 million in fines. Also, in April, Olympic agreed to pay $75 million total to the families of two 10-year-old boys who died. The family of an 18-year-old who was killed settled earlier for an undisclosed amount. Olympic and Shell are suing each other over who was operating the pipeline during the accident. Olympic says Equilon was because it provided officials who made key decisions. Shell says the executives were on loan. Fines: Last year, Olympic agreed to pay $10 million in state and federal penalties. The state Department of Ecology in July decided against fining IMCO General Construction, which had worked in the area where the pipeline was damaged. The state agency is pursuing a $7.86 million fine against Olympic and Shell, alleging they failed to detect and fix the damage that led to the rupture. Olympic's share would go toward the $10 million it has promised to pay.

The board voted unanimously yesterday to approve the report, which will be available to the public within weeks, along with a dozen findings and two safety recommendations. It said the events on that deadly day were brought on by five mistakes over several years — most, but not all, made by Olympic Pipe Line.

• During a 1994 project at a nearby water-treatment plant, IMCO General Construction of Bellingham damaged the pipeline's surface, leading to its eventual failure. Olympic also neglected to adequately inspect IMCO's work.

• Olympic inaccurately handled information from its inspections and decided against digging up the pipeline for a visual examination. Investigators said Olympic planned to do the work in early 1997, but the ground was too wet and the company later decided it wasn't necessary.

• Olympic failed to test safety devices, simulating real-world conditions, at a new facility that helped pump liquid through the pipeline.

• Olympic did not investigate and correct conditions hampering a pressure-relief valve at the new facility. It could have taken steps that in turn may have prevented the pressure surge before the rupture.

• Olympic should have tested changes to its computer programs on a system not actually operating the pipeline network. An error caused a computer slowdown that left the system unresponsive at a critical time.

In a written statement, Olympic Pipe Line didn't directly address the findings. Vice President Bobby Talley said the company has "cooperated fully with the NTSB throughout its investigation and we are satisfied with the thoroughness of its factual report."

While the report may have closed one chapter for the victims' families, it brought little comfort.

"Had Olympic done the proper investigations ... none of this would have happened," said Wade's father, Frank King.

He and others want legislation that would significantly boost fines for pipeline spills. King worries that while regulations have been better enforced in the past five years, the changes won't be permanent without a law.

"Will we ever get rid of leaks? Probably not," King said. "But we can get rid of big leaks."

Carmody said the NTSB has been pushing for stronger pipeline-safety rules since 1987. The Bellingham explosion has led to new regulations at enforcement agencies, though some people have criticized officials for not implementing the changes quickly enough.

Since the accident, Congress has also been wrestling with pipeline-safety legislation, which might be nearing completion as part of an energy bill.

The safety board also recommended two other changes yesterday: Advise operators with computer systems similar to Olympic's to test changes on workstations that don't control the pipelines; and develop new guidelines for pipeline operators on how to test new pumping stations and relief valves.

The skill level of Olympic employees was an issue mentioned throughout yesterday's hearing, including the decision not to excavate and visually inspect the pipeline, despite earlier evaluations that the pipeline may have been damaged during IMCO's construction project.

Investigators said an employee without formalized training made the recommendation.

"It seems like an awful important decision to rest on somebody with little or no training," board member John Goglia said during a question-and-answer session with staff who prepared the report.

The findings came more than three years after the accident because of delays caused by a Justice Department criminal investigation into the accident.

The department has charged Olympic and partner Equilon, now Shell, with gross negligence and violation of federal pipeline-safety laws.

A second criminal case involving three employees, Olympic and a related company is scheduled to go to trial in January.

In a separate civil suit, the department seeks up to $37.2 million from the two companies. They are part of a series of criminal, civil and administrative actions stemming from the incident.

The families of the 10-year-old boys settled a wrongful-death suit for $75 million, a record in Washington state. Wood's family reached an undisclosed settlement without suing.

In a deal last year, Olympic also agreed to pay $10 million to settle some state and federal penalties.