Chevron to pay $400,000 penalty in Utah leak: government

HOUSTON (Reuters) - Chevron Pipe Line Co has agreed to pay a $400,000 penalty in a June 2010 Utah oil pipeline leak as federal investigators probe a new spill from the same line this week, a government spokesman said Friday.

Officials have no projected restart date for the Rangely, Colorado, to Salt Lake City line. It has had no effect on Chevron’s Salt Lake City refinery or the Rangely field, which are using storage while the line is shut.

The June spill of about 800 barrels entered Salt Lake City waterways. The penalty was due to safety violations found during investigation of that earlier spill, a spokeswoman for the U.S. Pipeline and Hazardous Material Safety Administration said.

PHMSA was investigating the more recent leak of about 100 barrels, which occurred late Wednesday. It stopped short of a nearby creek, but booms were deployed anyway as a precaution during cleanup, a Chevron spokesman said.

The spills involved different system failures but were about 500 feet apart, officials said.

Reporting by Bruce Nichols; editing by Sofina Mirza-Reid