Closed pipeline stalls delivery of Tucson fuel

11:00 AM MST on Wednesday, August 13, 2003

By Mary Vandeveire
© 2003 ARIZONA DAILY STAR

Gas retailers in Tucson were scrambling Tuesday to keep their stations stocked with fuel, following the closure Friday of a pipeline that ruptured two weeks ago on the West Side.

The closure held up delivery of fuel to Tucson, including 1 million gallons of gas scheduled to go out to Tucson Arco stations last weekend, said Arco spokesman Dan Cummings.

In the meantime, Tucson's gas prices jumped to about $1.56 per gallon of unleaded Tuesday from $1.51 Thursday, according to AAA Arizona.

Cummings said the product was sitting in the closed pipeline. That fuel won't be delivered until the pipeline is running again. The pipeline operator is investigating the cause of the rupture and has no estimated start date.

In the short term, Arco is trucking gas from Phoenix to Tucson. Because this isn't the usual way gas is supplied to the Tucson Arco stations, supply will be iffy for the next few days, and some stations may run out of gas, Cummings said.

"We're trying as best we can not to have that situation occur. Given the supply constraints and the pipeline being down, that is a possibility over the next several days."

In addition, both Costco locations in Tucson were out of fuel Tuesday and future supply was uncertain, said Paul Latham, Costco vice president.

"We're working to get product in and do expect to have some supply, although it may be spotty, this evening or sometime tomorrow," Latham said Tuesday.

Outages also were reported at scattered stations around Tucson, including the Fry's at First Avenue and Roger Road.

The stations in Tucson that are affected by the pipeline problem are those that don't have long-term contracts to buy gas and instead buy off the open market, said Kris Mayes, spokeswoman in Gov. Janet Napolitano's office, which has formed a task force to address the pipeline problem.

The closed pipeline sends gas from Tucson to Phoenix, where the biggest impact is expected.

Gas bound for Tucson and Phoenix moves on a 12-inch pipeline from El Paso to Tucson. At Tucson, the Phoenix portion is usually moved onto an 8-inch pipeline which travels up to Phoenix. That's the pipeline that was shut Friday.

Kinder Morgan, the pipeline operator, moved the Phoenix gas into its terminal on Tucson's South Side. Because that gas is not usually stored in Tucson, additional tanks had to be put into use to allow room to store both the Phoenix gas and the Tucson gas. The line from El Paso was temporarily stopped during that time, but truckers were still able to get the supply, said Kinder Morgan spokesman Rick Rainey. "In Tucson, there has not been a problem with supply," Rainey said.

Truckers in line at Kinder Morgan's terminal Tuesday saw things differently.

"All I know is, Arco hasn't got their receipt in, and we can't load until we get their gas," said Don Johnson, a driver for Desert Refined Products Transport.

Jesus Ballesteros, a driver for Beneto, said distribution was out of order on Monday but things seemed to be back to normal on Tuesday.

Ballesteros and Johnson were waiting to load gas to take to Phoenix. Phoenix uses a blended fuel that can't be used in Tucson. Ballesteros said he usually stays in town making deliveries.

"We're trying to take care of Phoenix," he said, noting Tucson does have some problems. "There may be one or two stations running out of gas, but that's nothing compared to what could happen in Phoenix."

The pipeline from Tucson carries about 30 percent of the Phoenix area's gas, according to AAA Arizona. Rainey said half that amount will be trucked from Tucson, with the other half slated to come on a pipe from California.

The Tucson-Phoenix pipeline was shut to investigate the cause of a rupture July 30 near West Grant and North Silverbell roads. So far, the investigation has shown the pipe is defective.

Ballesteros said he wonders why gas prices are going up. One Tucsonan pumping gas Tuesday at the Arco station on South Park Avenue and Benson Highway had a theory.

"Mostly, it's about the oil," said Rosalinda Cañez. AAA Arizona last week reported crude oil prices were above $32 per barrel due to recent terrorist attacks that rattled the oil industry. The resulting run-up in wholesale gasoline prices, was expected to lead to higher retail prices.

For more Arizona news, visit www.azstarnet.com or www.azfamily.com.