Express Pipeline abruptly withdraws its application to abandon leaky oil pipeline in place

In a previous post, I reported on an application by Express Pipeline (Kinder Morgan Canada) to abandon a leaky oil pipeline in place.  Express intended to ask the NEB to allow it to build a new pipeline adjacent to the old one.  Yesterday, Express wrote to the NEB to withdraw its abandonment application without giving any reasons: November 8, 2010 Withdrawal Letter. 

Express Pipeline applies to abandon leaky oil pipeline in place, then build new line next to it

Kinder Morgan Canada ("KMC"), on behalf of Express Pipeline Limited Partnership ("Express"), has applied to the NEB for permission to abandon in place a leaky oil pipeline in Alberta.  KMC says that there have been three leaks in the pipeline to date and that efforts to correct the problems are too costly:

The ongoing cleaning program (pigging) on the Husky lateral is unlikely to effectively mitigate these same sharp deep anomalies because the brushes would not be expected to penetrate to the bottom of these pits to arrest the active corrosion. Since 2007, Express Pipeline has completed numerous digs and repairs on the 1.3 kilometer pipeline and spent in excess of $4.3MM in repairs and inspections. It is evident that the Husky lateral’s internal corrosion problem cannot be effectively mitigated by combining regular cleaning with periodic ILI, and that this line should remain out of service until a more effective program is implemented or the line is replaced.

The application can be viewed at: Express Pipeline Abandonment.