The Pegasus Pipeline, which runs from Illinois to Texas through Arkansas, has been closed since it ruptured near Mayflower in 2013 and spilled crude in a subdivision and wetlands.
Energy Transfer, the company that now owns it began testing in 2019 that was taken as a sign the Sunoco subsidiary might be moving to restart it.
This makes Central Arkansas Water nervous because the pipeline runs through watersheds in Arkansas that provide water for a big portion of Central Arkansas.
So now, I’ve learned, CAW made a proposal. It is for CAW, or a group of government entities, to buy the pipeline — either from Patoka, Ill., to Corsicana, Texas or just the portion in Arkansas.
It’s a “win/win,” says the letter from Tad Bohannon, CAW’s CEO. Energy Transfer is making plenty of money. Oil prices are low. The need for the type of crude the line was carrying was declined dramatically. The odds of getting the line operational again are not great. So why not sell? Or at least why not talk about rerouting the portion of the line in the Lake Maumelle watershed, the water utility’s chief source of water currently.
It was mailed on May 5. Energy Transfer has not responded.