Auckland airport fuel crisis: there are too many incidents like this, says sector group

Thursday, 21 September 2017

It's believed a digger blade scored the pipe, causing the leak.

Infrastructure New Zealand wants action to avert more crises like the Northland fuel pipeline cut.

Stephen Selwood, chief executive of the sector organisation, called on the Government to create an infrastructure commission.

'I would struggle to put an amount on it, it's probably likely the pipeline cut cost in the tens of millions to the economy,' Infrastructure New Zealand's Stephen Selwood said.

The pipeline rupture would probably cost the economy 'tens of millions' of dollars, Selwood said.

'We've seen too many incidents like this right around the country, the Penrose motorway overbridge, power line cuts …. .'

Airlines have had their Auckland airport usage allocation cut 70 per cent to conserve fuel.

The pipeline which connects Marsden Point Oil Refinery and Auckland Airport was damaged on Damian and Colleen Dixon's land near Ruakaka.

* Gas rationing disrupts air travellers

* Digger blamed for pipeline cut

'From what I've read it was pretty obvious the pipe was there, somebody should be held accountable,' law professor Bill Hodge said.

* Scramble to fix pipeline**

The leak, which was discovered on Thursday, has caused disruption to thousands of travellers.

Professor Hodge points to a case Caltex won against dredge owners who cut the companies Sydney Harbour seabed gas line - Hodge thinks the Ruakaka break is similar.

Auckland airport has cut airlines' fuel allocation by 70 per cent to reduce the effects of the reduced supply while for a time some Auckland petrol stations ran out of 95 octane fuel.

Refining NZ believes a digger blade scored the 30cm pipe, scraping away an anti-corrosion layer in an action that eventually led to the pipe break and the closure of the 170km Marsden Point to Auckland fuel line.

'We need appropriate oversight of our strategic networks like power and gas,' Selwood said.

The commission should also review property owner liability laws, he said.

COUNCIL CONSIDERING ACTION

Northland Regional Council was 'continuing to investigate circumstances leading up to the leak,' a spokesman said on Thursday.

'Council's costs have not yet been tallied but obviously will run to at least several thousand dollars.'

The council, which had been monitoring the leak's environmental impact, would consider 'formal enforcement action' over the leak.

'For now council's primary focus remains on recovery of spilled fuel and site clean-up.'

REFINERY NZ LIKELY HAS CASE

University of Auckland law professor Bill Hodge said whether anyone gets sued for damages over the pipeline cut comes down to money.

'The first part of suing for damages is 'does the defendant have any money or do they have an insurance company behind them?''

Hodge believed Refinery NZ, which estimates it has lost about $15 million because of the cut, could have a good case against whoever caused the leak.

'From what I've read it was pretty obvious the pipe was there, somebody should be held accountable,' he said.

He cited a 1976 case in which energy company Caltex proved the Willemstadt dredge crossing Sydney Harbour broke the company's seabed gas line.

That cut forced Caltex to reroute fuel hurting the company's finances - it got 'complete recovery of economic loss' from the dredge owners, Hodge said.

Refinery NZ couldn't be reached for comment.

'NO COMMENT' FROM PROPERTY OWNERS

Damian and Rochelle Dixon, who own the Ruakaka, Northland property, where the leak happened are tight-lipped about exactly what happened on their tenanted land.

'I've been getting so many bloody phone calls that I'd like to stay out of this one for a while I think,' Damian Dixon said.

'No comment from me.'