TULSA, Okla. – Magellan Midstream Partners, L.P. (NYSE: MMP) today announced its subsidiary has reached agreement with the Environmental Protection Agency (“EPA”) concerning historical environmental releases from the partnership’s petroleum products pipeline system that the EPA alleges impacted waterways protected under the Clean Water Act. Most of the releases occurred prior to the partnership’s acquisition of the pipeline system in April 2002.
Information requests from the EPA began in mid-2001 concerning the historical spills, with Magellan continuing to respond to inquiries and negotiate in good faith as the subsequent owner of the pipeline system. Both parties have agreed to settle all outstanding issues for $5.3 million, without Magellan admitting violations of the Clean Water Act. Under the settlement, Magellan also agreed to perform certain operational enhancements.
“We are pleased to have resolved this historical issue with the EPA, and Magellan has more than adequately reserved for this matter in our previous financial results,” said Don Wellendorf, chief executive officer. “We believe safe operations and environmental stewardship are essential elements of success, and our management team and employees are focused on ensuring compliance with safety and environmental laws and regulations in all aspects of our business.”
Finalization of the agreement is subject to a 30-day public comment period.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership formed to own, operate and acquire a diversified portfolio of energy assets. The partnership primarily transports, stores and distributes refined petroleum products. More information is available at http://www.magellanlp.com.
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Portions of this document may constitute forward-looking statements as defined by federal law. Although management believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Additional information about issues that could lead to material changes in performance is contained in the partnership's filings with the Securities and Exchange Commission.
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