Gas prices in Carolinas could soon rise after Alabama pipeline blast

HELENA, Ala. — North Carolina Gov. Pat McCrory announced Wednesday fleets of gasoline tanker trucks from outside the state have arrived and are making deliveries after fears escalated over another gas shortage because o a deadly explosion at the Colonial Pipeline in Alabama.

The Colonial Pipeline fire is still burning as of Wednesday and the site remains inaccessible. The company anticipates it will be able to assess the damage Thursday and provide a timeline for when the pipeline may be restored.

Some analysts said Tuesday that there could be a spike in gas prices Thursday. McCrory also said the impact could be tremendous and potentially worse than the shortage in September.

McCrory signed an executive order Tuesday waiving some requirements to allow trucks to deliver gasoline and to protect consumers from price gouging.

"I am continuing to work with our emergency management team to closely monitor the situation in Alabama," McCrory said. "I will continue to take every measure that is needed to minimize the impact of this disruption on North Carolina."

[ LINK: Gas price tracker in the Carolinas ]

McCrory's latest executive order is an extension of an order issued for Hurricane Matthew. The order waives maximum hours of service for drivers and temporarily suspends vehicle size and weight restrictions to allow transport of gasoline. Extending the state of emergency also extends price gouging laws to help protect North Carolinians from excessive gas prices at the pump. The governor took similar action during an earlier disruption to the pipeline in September.

The governor has suspended non-essential travel for state employees. McCrory also directed the Department of Environmental Quality to work with the Department of Agriculture to use different gasoline formulas to increase access to supplies from northern states.

The disruption occurred when a track hoe - a machine used to remove dirt - struck the pipeline, ignited gasoline and caused an explosion Monday that sent flames and thick black smoke soaring over a forest in northern Alabama, Colonial Pipeline said. One worker was killed and a half-dozen were injured.

A September leak that spilled 252,000 to 336,000 gallons of gasoline occurred not far from the location of Monday's explosion. That leak led to days of dry pumps and higher gas prices in Alabama, Georgia, Tennessee and the Carolinas while repairs were made.

The cause of the leak still has not been determined, and the effects of the latest disruption weren't immediately clear.

Colonial Pipeline, based in Alpharetta, Georgia, operates 5,599 miles of pipelines, transporting more than 100 million gallons daily of gasoline, jet fuel, home heating oil and other hazardous liquids in 13 states and the District of Columbia, according to company filings. Authorities have not said which type of fuel was involved in the explosion Monday.

Experts said the Colonial Pipeline explosion could have an impact on drivers in the Carolinas, saying about 2.3 million barrels of refined product are normally transported through the pipeline. It's one of two pipelines that services the Charlotte area and is a major supplier to the east coast.

Despite being nearly 400 miles away, Charlotte drivers could be forced to pay more when the fill up.

"This is really a perfect storm and it is not looking good for gasoline supply or prices in the days ahead," Patrick DeHaan, senior petroleum analyst for Gasbuddy.com, said.

The governor of Alabama said the explosion happened about a mile from where the Colonial Pipeline leaked thousands of gallons of gas in September. The leak caused pumps to dry throughout North and South Carolina.

[ Past coverage: Colonial Pipeline restarts main gasoline line Wednesday ]

"I don't think it is too early to say there will be an impact," DeHaan said. "I think that is all but guaranteed at this point based on what we know now."

A lot is still unclear but the explosion happened on one of the largest fuel arteries in the country.

With fuel supplies already tight from last month's shortage experts say to be prepared.

"I would tell motorists to be prepared for gas price increases and to cut back on travel if they don't have to," Dehaan said.

Some analysts believe that since this is the second incident in a short amount of time, regulators and Colonial Pipeline could be hesitant to quickly restart the gas flow, which means the shortage this time could last longer.

The two incidents back to back have also crumbled confidence on aging gas pipelines nationwide. UNC Charlotte professor Peter Schwarz said the industry will have to look into what can be done if incidents like this keep happening.

"I think we're going to need to start thinking about maybe an emergency transportation system," Schwarz said.

Price Gouging Law

Attorney General Roy Cooper reminded consumers that North Carolina's price gouging law remains in effect after the explosion closed the pipeline and could limit supplies of gasoline.

Charging too much during times of crisis is against North Carolina law and Cooper encourages people to report gouging if they see it.

"Consumers are our eyes and ears on the ground and we use their complaints to investigate possible price gouging," Cooper said. "If you spot excessive prices during this time of crisis please let us know."

[ Price Gouging Complaint Form ]

The Attorney General's office is investigating multiple allegations of price gouging from the previous pipeline shutdown and from Hurricane Matthew.

After explosion, company aims to restart gas pipeline

Executives at a pipeline company say their goal is to restart the line as early as this weekend after an explosion and fire shut down gasoline shipments to millions across the South.

The deadly explosion sparked a geyser of fire Monday and closed off the vital pipeline, raising fears of another round of gas shortages and price increases. It's Colonial Pipeline's second accident and shutdown in two months.

Continuing fires in the drought-stricken area of central Alabama hampered officials' efforts to fully assess the damage Tuesday afternoon, and firefighters built an earthen berm to contain the burning fuel.

The accident happened when a dirt-moving machine struck the pipeline, ignited gasoline and sparked a blast Monday, killing one worker and injuring five others, the Georgia-based company said.

Four of the injured remained hospitalized, Colonial spokesman Bill Berry said Tuesday afternoon in nearby Helena, Alabama. UAB Hospital, where the injured were treated, declined to release information on them, citing requests by their families for privacy.

Another worker was treated for less severe injuries and released from a hospital, Berry said.

As much as 168,000 gallons of gasoline could have burned, spilled, evaporated or remained in the pipeline, the company said.

The explosion happened a few miles from where the pipeline sprung a leak and spilled 252,000 to 336,000 gallons of gasoline in September. After the leak, the company used one of Colonial's two main lines to move gasoline as it made repairs, but it still led to days of dry pumps and higher gas prices in Alabama, Georgia, Tennessee and the Carolinas while repairs were made.

Contractors were working on repairs related to the September leak when gasoline ignited and spread fire to the pipeline, the U.S. Pipeline and Hazardous Materials Safety Administration said Tuesday.

The nine-member crew was using a track hoe to excavate the pipeline so permanent repairs from the September leak could be made, Colonial Pipeline executive Gerald Beck said.

The pipeline provides nearly 40 percent of the region's gasoline and usually runs at or near full capacity. Together, Colonial's two lines carry more than 2 million barrels of fuel a day.

By mid-day Tuesday, Colonial Pipeline said it was able to restart the second of its two main lines, which carries diesel and jet fuel.

The severity of the gasoline shortage will depend on how long the gasoline pipeline remains closed, AAA spokesman Mark Jenkins said.

"We would encourage drivers not to panic, so don't run to the gas station and start filling up every gas can you can," said AAA spokeswoman Tamra Johnson.

After the September leak, Colonial said it made up some of the gasoline shortfall by sending gas through the line that usually carries diesel and jet fuel. The company has not said whether it will do so again.

From 3,000 feet in the air, a flame could be seen still burning in a haze of smoke Tuesday when an AP photographer flew over the site.

Photographer Brynn Anderson said the blackened earth and a large area of charred trees are surrounded by other trees awash in fall colors just beyond the burned area.

In 2003, the EPA fined Colonial $34 million for gross negligence after it spilled almost a million gallons of diesel in South Carolina, polluting waterways in four states. The company also agreed to spend $30 million to upgrade environmental protections on its pipeline system.

Since 2006, the company has reported 178 spills and other incidents that released a combined 193,000 gallons of hazardous liquids and caused $39 million in property damage. Most were caused by problems with materials, welding or some other equipment failure, according to federal accident records reviewed by The Associated Press.

The company paid $381,000 in penalties for violating safety rules during the same period.

The explosion and fires

Plagued by a severe drought after weeks without rain, the section of the state where the explosion happened has been scarred by multiple wildfires in recent weeks, and crews worked to keep the blaze from spreading.

Coleen Vansant, a spokeswoman with the Alabama Forestry Commission, said crews built a 75-foot-long earthen dam to contain burning fuel. The Shelby County Sheriff's Office said the blaze had been contained but it was unclear how long the fire may take to burn out.

Two wildfires caused by the explosion burned 31 acres of land, Vansant said.

"We'll just hope and pray for the best," Gov. Robert Bentley said in a statement.

Houses around the blast scene were evacuated, and sheriff's Capt. Jeff Hartley said it wasn't clear when people might be able to return home.

Eight or nine subcontractors were working on the pipeline when it exploded about 3 p.m. Monday, sheriff's Maj. Ken Burchfield told Al.com. The conditions of those hurt weren't immediately known.

"Colonial's top priorities are the health and safety of the work crew on site and protection of the public," the company said in a brief statement.

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