Federal court fines Coos pipeline builder


Tuesday, February 24, 2009 | 1 comment(s)

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EUGENE (AP) — MasTec Inc., the contractor fired not long after being hired to build a natural gas pipeline from Roseburg to Coquille, has been ordered to pay $1.5 million in penalties. The money will go to the U.S. Treasury because of damage caused to pristine streams and rivers.

Government agencies from the feds on down to Coos County had a hand in the debacle, too.

U.S. District Judge Michael Hogan, who issued the order, also found that government agencies provided inadequate oversight of the $51 million project. But, though the contractor violated the Clean Water Act, the judge said there did not appear to be serious environmental harm.

A MasTec attorney declined comment about the ruling Monday.

The project was dogged with problems since the summer of 2003, when work began on the 60-mile long, 12-inch pipeline. Crews contaminated streambeds with drilling spoils, threatening fish habitat. Regulators later discovered project managers had not taken adequate steps to protect hillsides from erosion. That led to even more sediment in fish spawning grounds.

Coos County terminated its contract with the Coral Gables, Fla.-based company in April 2004. An Oregon company finished the project.

Residents and environmental groups complained early and often about the project, contending the state Department of Environmental Quality, the U.S. Army Corps of Engineers and Coos County were lax in oversight of a project that crossed sensitive terrain, including many parcels of private property.

Officials initially maintained the project was on track and that state and federal clean water laws were being followed. But as contrary evidence piled up, legal battles ensued.

MasTec and the county sued each other in a case settled last year.

Then the Sierra Club, along with other environmental groups, filed suit in the case Hogan settled this week.

The $1.5 million fine fell well short of the amount sought by the plaintiffs. Their case was based in part on assertions the company had saved $6 million by avoiding its Clean Water Act obligations. Hogan, however, wrote that MasTec lost $9.23 million on the project.

The lack of government oversight was another factor Hogan used in determining the size of the penalty.

“In this case, there was a failure of all parties concerned,” Hogan wrote.
Tags » lng, mastec, pipeline



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Kat wrote on Feb 24, 2009 3:34 PM:

This doesn't deserve to be the lead?


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