2nd UPDATE: W Australia State To Prosecute Apache Over Blast
28 Mai 2009 - 11:59AM
Dow Jones News
PERTH (Dow Jones)-U.S. energy group Apache Corp. (APA) said
Thursday that it will defend itself against charges filed by the
Western Australian government in relation to the Varanus Island
fire and explosion last year.
Apache will "vigorously defend" the state's legal action," an
Apache spokesman told Dow Jones Newswires. "The explosion was an
unfortunate and unforeseeable event," he said.
Western Australian Mines and Petroleum Minister Norman Moore
said earlier Thursday the government has filed charges against
Apache and its co-licensees in relation to the pipeline rupture and
explosion at the Varanus Island gas processing plant, off the
state's northwest coast, on June 3 last year.
The government is alleging they failed to maintain the pipeline
in good condition and repair as required by law.
"It is alleged that the 12-inch sales gas pipeline was corroded
in the area of the pipeline rupture," the minister's office said in
a statement.
A spokeswoman for Western Australia's Department of Mines and
Petroleum said that the co-licensees face fines of up to A$50,000
each under the relevant state act. The charges have been filed
against Apache Northwest Pty Ltd., a unit of Apache Corp., Kufpec
Australia Pty Ltd., a unit of Kuwait Foreign Petroleum Exploration
Company, and Tap (Harriet) Pty Ltd, a unit of Australia's Tap Oil
Ltd. (TAP.AU).
The case has been listed for hearing in Perth's Magistrates
Court on July 22, the spokeswoman said.
The explosion disrupted one-third of the state's gas supplies,
forcing many miners and industrial users to scramble for fuel
alternatives.
"The Varanus Island repair project is now in its final phase and
drawing to a conclusion," the Apache spokesman said, adding that
production at the facility is now running at more than 90% of the
pre-incident rate.
-By Stephen Bell and Alex Wilson, Dow Jones Newswires; 61-8-9244-4243; sgbell@bigpond.com
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