Business News Americas: Shell faces US$590,000 fine for pipeline leak – Chile: “The SEC based its decision to enforce the fine on the discovery that the pipeline was not properly maintained or inspected, and also lacked proper protection against external corrosion, the paper reported.”: Posted Saturday 17 2005

(BNamericas.com) - The Chilean unit of Anglo-Dutch company Shell faces a 303mn-peso (US$590,000) fine imposed by energy regulator SEC for a pipeline leak that spilled diesel into the subsoil of a beach north of Antofagasta, local press reported.

The amount of diesel lost into the subsoil was between 400,000 and 1 million liters, Santiago newspaper El Mercurio reported, citing independent studies.

Through October 31, Shell had recovered 565,202 liters of the fuel, the paper reported.

The SEC based its decision to enforce the fine on the discovery that the pipeline was not properly maintained or inspected, and also lacked proper protection against external corrosion, the paper reported.

As a result, diesel leaked into the subsoil for 2-6 months before it was discovered, the paper said. Chile administers and operates a plant in the area, in northern Chile's Region II, that distributes liquid fuel to state copper miner Codelco. - (BNamericas.com)

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