Diamond Pipeline LLC and Clarksville Light and Water Co. announced Wednesday that a $6.6 million deal has been finalized to protect drinking water sources from potential spills, according to an Arkansas Online report.
Diamond Pipeline will place $6.6 million in escrow to extend a pipe that feeds a Johnson County, Arkansas water intake facility so it will be north of the oil pipeline’s path.
“I had to protect my water supply,” said John Lester, general manager of the municipal utility. “It’s all about health and public safety and reducing the risk from an accident.”
The proposed pipeline route crosses several waterways, including the Arkansas River, Mississippi River, James Fork River and Big Piney Creek. It also crosses smaller waterways, including some drinking water sources, according to Arkansas Online.
If the pipe construction is not approved by regulatory agencies, the funds will be increased to $8 million to provide for the construction of a water treatment facility on Spadra Creek, which supplies drinking water to nearly 28,000 people in Clarksville and surrounding areas.
Diamond Pipeline is required to have an emergency response plan, conduct training exercises with Clarksville emergency employees, and have a boom — a floating barrier used to contain oil spills — onsite at Clarksville’s Piney Bay Intake Facility for use in the event of a leak.
“It’s important to us to be a good neighbor, as we intend to responsibly operate and maintain the Diamond Pipeline for years to come,” Diamond Pipeline said in an emailed statement Wednesday.
When complete, the pipeline will be capable of transporting 200,000 barrels per day. Construction of the pipeline is expected to be completed next year.
Last week, Diamond Pipeline and Welspun Tubular struck a $47 million deal in which Welspun would assist in manufacturing two-thirds of the pipe for the 440-mile project designed to transport domestic sweet crude oil grades produced in the Permian Basin, Bakken and Mid-Continent regions from the Cushing storage hub to Memphis.