Unocal Quits Partnership Constructing Oil Pipeline

In what is being called a moral victory for opponents of a 132-mile oil pipeline that would bisect the city of Los Angeles, the Unocal Corp. announced Friday that it has pulled out of a partnership to build the $170-million line, citing delays in the approval process.

City officials who oppose the project hailed the announcement as a signal that the partnership to build the Pacific Pipeline from Kern County to the refineries in Wilmington is falling apart. The partnership now includes Chevron and Texaco corporations.

Los Angeles City Councilman Richard Alarcon, a vocal opponent of the line that would run through his northeast San Fernando Valley district, said it shows that Unocal believes it can do without the pipeline.

“I think that what it shows is that the pipeline is unnecessary,” he said.

But officials with the Pacific Pipeline Co. insist the decision by Unocal to pull out will not hamper the project.

“Our position is that we are going to move ahead with the pipeline,” said Thomas Walker, a spokesman for the partnership.

He added that Chevron and Texaco have the finances to move ahead with the project. In fact, it’s estimated the two firms will make $7.4 billion in combined sales this year.

The project’s biggest opponent has been the city of Los Angeles, whose leaders say the pipeline poses a threat of rupture during an earthquake. They also contend that the risk will be borne by mostly poor, minority neighborhoods.

The city has sought to overturn a decision by the Public Utilities Commission to approve an environmental study of the project. The commission has scheduled a hearing for Wednesday to consider the appeal. But the council has also voted to file a lawsuit to challenge the environmental study if the appeal fails.

*

As proposed, the Pacific Pipeline would travel along the Southern Pacific Railroad right of way parallel to the Golden State Freeway. Along the way, it would cut through the San Fernando Valley, across Burbank, Glendale, San Fernando and communities in South Los Angeles.

Unocal spokesman Barry Lane said the city’s opposition and the potential for further delays have prompted Unocal to pull out of the partnership. But if the line is built, he said Unocal would be interested in using the line if a fair fee can be negotiated with the partners.

In the meantime, Lane said Unocal is concentrating on moving oil by train. He said Unocal is working on a development in the Mohave Desert that will allow rail cars carrying oil to be transferred on and off the tracks more quickly.

Alarcon said another alternative is an existing oil pipeline owned by Arco Corp. The line was designed to deliver oil from the refineries to Kern County, but Arco officials are working on changes that would allow the line to instead bring oil into the refineries.