Boston, MA 04/01/2014 (usastockreports) – Oil and natural gas giant, Exxon Mobil Corporation (NYSE:XOM), has been given the green light to partially restart operations on its suspended Pegasus Pipeline, which was marred with oil spillage last year. Exxon has been approved to restart its operation for a 210 mile stretch of the pipeline from Corsicana to Nederland. The oil giant will be required to operate at 80% of the operating pressure till March 29, 2013.
The safety operating plan is aimed at ensuring the company operates safely until the Remedial Work Plan is approved by The Pipeline and Hazardous Material Safety Administration. The terms of restarting will see the company’s northern portion of the pipeline which includes Mayflower regions remain shut down.
Exxon Mobil Corporation (NYSE:XOM)’s pipeline operations had been shut down after a rupture near a house development last year, resulted in a spillage of 5,000 barrels of oil. This kind of spillage is rare and caused evacuation of people around the spillage point, prompting the company to carry out a massive cleanup as well as paying residents for damages caused.
The restart of the pipeline has come at the best time as this will accord the company enough time to carry out inspections in the summer as part of the remedial plan. The regulator on its part has said it is not planning to extend its deadline for submission of the plan, beyond April 7, 2014.
Exxon Mobil Expecting the Demand for Fossil fuels to stay high
Despite the increased regulations aimed at averting the global warming menace, Exxon Mobil maintains that the demand for fossil fuels will continue to remain high. This announcement comes amidst increased concerns from shareholders in the company that tighter controls on carbon emissions might result in a decline in fossil fuels value.
Exxon Mobil Corporation (NYSE:XOM) was stable on Monday trading session closing the day at a high of $97.68.