Diamond Pipeline LLC and Clarksville Light and Water Company on Wednesday finalized a $6.6 million deal to take steps to protect drinking water from potential oil spills.
The $900-million Diamond Pipeline is a joint venture between Plains All American and Valero Energy and would transport oil from Cushing, Oklahoma to Valero’s refinery in Memphis, Tennessee. The 440-mile pipeline, in its route, will also run through north central Arkansas.
The proposed route of the line crosses several waterways, which raised concerns of some agencies, including the Arkansas Health Department, who expressed that the 20-inch oil pipeline would put Arkansas’ drinking-water sources at risk.
Diamond Pipeline agreed to provide $6.6 million to extend a pipe that feeds a water-intake facility that is north of the oil pipeline’s path.
Diamond Pipeline said they were pleased with the agreement made with Clarksville Light and Water and intend to responsibility operate and maintain the pipeline.
Construction of the pipeline is expected to be finished in 2017.