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UPDATE 1-PBF says pipeline restarted after diesel spill in Louisiana

(Adds details from report, PBF statement on restart)

Jan 12 (Reuters) - PBF Energy said on Wednesday that its Meraux Pipeline in Louisiana was restarted on Jan. 8, following a shutdown due to a diesel fuel spill.

A corroded 16-inch pipeline operated by PBF subsidiary, Collins Pipeline Co, broke and spilled over 300,000 gallons of diesel, or more than 7,000 barrels, outside New Orleans. The Meraux Pipeline is downstream of the Chalmette Refinery.

The spill from the 42-year-old pipeline was discovered on Dec. 27 near a levee in St. Bernard Parish, east of New Orleans. The company then shut the line, according to documents from the Pipeline and Hazardous Materials Safety Administration (PHMSA).

The spill occurred in an environmentally sensitive area near the Mississippi River, the federal report showed.

An inspection of the pipeline in October 2020 had revealed external corrosion along a 22-foot section of pipe in the same area as the spill, but repairs were delayed after a subsequent inspection indicated the corrosion was not bad enough to require work immediately under federal regulations, the report said.

Prior to the rupture, the pipeline had operated at a reduced capacity. Its actual operating pressure prior to incident has not been determined, the PHMSA report said.

Following the incident, PHMSA issued an order mandating immediate corrective action without prior notice and opportunity for a hearing.

PBF said in an emailed statement that it restarted the pipeline on Jan 8.

The Associated Press earlier on Wednesday reported https://apnews.com/article/business-environment-and-nature-new-orleans-environment-0d62cab0f0b131e48b77b97017766c3f that around 50,000 gallons of diesel had been recovered, with cleanup of the remaining fuel underway. (Reporting by Ashitha Shivaprasad in Bengaluru; editing by Diane Craft and Richard Pullin)