Filtered by: Money
Money

SC: Makati gas pipeline may re-open only after DOE-supervised tests


The gas pipeline that leaked beneath a 22-storey Makati condominium in 2010 can be re-opened only after several Department of Energy-supervised test runs, according to a ruling by the Supreme Court.

In a ruling on a writ of kalikasan plea from West Tower Condominium Corp, et al., the SC ordered the First Philippine Industrial Corp. (FPIC), which operates the pipeline, to submit reports and conduct a test run for the affected portion of the 117-kilometer white oil pipeline (WOPL).

The DOE, meanwhile, was tasked to oversee FPIC’s test run, as well as conduct its own inspection of the affected portion of the pipeline.

“After FPIC has undertaken the activities prescribed… the DOE shall determine if the activities and the results of the test run warrant the re-opening of the WOPL,” the court said. “In the event that the DOE is satisfied that the WOPL is safe for continued commercial operations, it shall issue an order allowing FPIC to resume operations of the pipeline.”

The FPIC was also directed to undertake and continue the remediation, rehabilitation and restoration of the affected Barangay Bangkal environment “until full restoration of the affected area to its condition prior to the leakage is achieved.”

The Department of Environment and Natural Resources was tasked to oversee this.

Integrity system

Once the pipeline is opened, the FPIC must continue implementing its Pipeline Integrity Management System, as reviewed by the DOE, as well as submit monthly reports on its compliance with the directives, the high court said.

Meanwhile, the SC upheld the Court of Appeals recommendation denying West Tower’s request for the creation of a special trust fund to answer for similar contingencies in the future.

As for the petitioners plea that officials of the FPIC should be held liable for the gas leak, the SC said it “will refrain from ruling on the finding of the CA that the individual directors and officers of FPIC and First Gen Corp are not liable due to the explicit rule in the Rules of Procedure for Environment cases that in a petition for a wit of kalikasan, the Court cannot grant the award of damages to individual petitioners.”

The SC agreed with the CA that the petitioners should file separately a civil and criminal case against FPIC officials.

Requirements

Prior to the test run, the FPIC will first have to:

-- submit monitoring charts, data/reading, accomplishment reports, and project status for all related activities/works. Respond to comments and prepare for site inspection.

-- continue gas testing along the right-of-way using the monitoring wells or boreholes. Prepare for inspection of right-of-way and observation of gas testing activities on monitoring wells and boreholes.

-- explain the process of the selection of borehole location and identify those located in pipeline bends, bodies of water, highways, residential areas, repaired portions of the pipelines, dents and welded joints, as well as other notable factors, circumstance, or exposure to stresses.

-- set up additional boreholes and monitoring wells sufficient to cover the entire stretch of the WOPL, the number of location of which shall be determine by the DOE.

-- continue submitting status report to the concerned government agency’s relating to “Project Mojica,” or the on-going pipeline segment realignment activity being undertaken by FPIC to give way to a flood control project of the Metro Manila Development Authority in the vicinity of Mojica St. and Pres. Osmena Highway, and prepare for site inspection.

Pig run

During the actual test run, the FPIC will have to conduct a cleaning pig run; witness the launching and receiving of the intelligent and cleaning pigs; and observe pressure and leakage tests. Pigs are used to remove dirt or general construction debris that may be inside a pipe.

Part of DOE’s new tasks would be to conduct onsite inspection of the pipeline right-of-way, the area around the WOPL, the equipment installed underground or aboveground, and the cathodic protection rectifier.

The DOE will also have to review and check the condition of the 22 patches reinforced with clock spring sleeves.

The DOE will also have to observe and witness the operation of the cleaning pigs, as well as check and calibrate the instruments to be used for the actual tests of the pipeline, and validate the calibration certificates of these instruments.

The FPIC had earlier conducted tests and maintenance program for the pipeline, resulting in the DOE issuing a certification that operations are safe to resume at the pipeline. The CA, however, later found out that the tests were “insufficient and inconclusive.” West Tower Corp also insisted that the DOE is biased and incapable of determining the WOPL’s structural integrity.

Authorities discovered the leak at the basement of 22-storey West Tower condominium at the corner of South Super Highway and Del Pilar Street in July 2010.

The FPIC has two pipelines running underground, carrying gasoline, diesel, kerosene, and aviation fuel from refineries in Batangas to oil terminals in Pandacan and in Parañaque. Two of FPIC's largest clients are oil giants Chevron Philippines and Pilipinas Shell, which has earlier been reported to be suffering the most due to the gas leak. —KBK, GMA News