Company Asks For Pause In Memphis Oil Pipeline Dispute

A company facing resistance to its plans to build an oil pipeline over an aquifer that provides drinking water to 1 million people has asked for a “mutual pause” in its dispute with city officials in Memphis, Tennessee.

Plains All American Pipeline sent a letter to the Memphis City Council about a proposed city law that could make it harder to construct an underground oil pipeline through wetlands and neighborhoods in south Memphis and north Mississippi. Plains is part of a joint venture with Valero Energy to build the Byhalia Connection, which would link the Valero refinery in Memphis with another larger pipeline in north Mississippi.

The council’s ordinance would establish a board to approve or deny construction of underground pipelines that transport oil or other potentially hazardous liquids near wells that pump millions of gallons of water daily from the Memphis Sand Aquifer. The ordinance is backed by pipeline opponents who fear an oil spill would endanger the aquifer.