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Executive Summary L egislation enacted in January 2012 called on the Secretary of Trans- portation to determine whether any increase in the risk of a release exists for pipelines transporting diluted bitumen.1 Bitumen is a dense and viscous form of petroleum that will flow in unheated pipelines only when it is diluted with lighter oils. The source of the diluted bitumen in North America is the oil sands region of Alberta, Canada. Diluted bitumen has been imported from Canada for more than 30 years and is currently transmitted through numerous pipelines in the United States. As imports of this and other Canadian crude oils have grown, new U.S. pipelines have been constructed, the flow directions of several existing pipelines have been reversed, and additional pipeline capacity is planned. Determination of the risk of a pipeline release requires an assessment of both the likelihood and the consequences of a release. To inform its review of the former, the U.S. Department of Transportation asked the National Research Council to convene an expert committee to study whether shipments of diluted bitumen differ sufficiently from shipments of other crude oils in such a way as to increase the likelihood of releases from transmission pipelines. A finding of increased likelihood would lead the committee to conduct a follow-up review of the adequacy of federal pipeline safety regulations. In the absence of such a finding, the commit- tee was tasked with issuing this final report, which documents the study approach and results.  Public Law 112-90, enacted January 3, 2012. 1 1

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2 Effects of Diluted Bitumen on Crude Oil Transmission Pipelines STUDY APPROACH The committee analyzed information in a variety of forms. Early in its deliberations, the committee provided a public forum for individuals to contribute information relevant to the study. The committee reviewed pipeline incident statistics and investigations; examined data on the chemical and physical properties of shipments of diluted bitumen and other crude oils; reviewed the technical literature; consulted experts in pipeline corrosion, cracking, and other causes of releases; and que- ried pipeline operators about their experience in transporting diluted bitumen. The review of incident data revealed the ways in which transmission pipelines fail. Some failures can be affected by the properties of the trans- ported crude oil, such as its water and sediment content, viscosity and density, and chemical composition. These properties were examined for diluted bitumen and a range of other crude oils to determine whether pipe- lines transporting diluted bitumen are more likely to experience releases. In addition, the committee considered whether pipeline operations and maintenance (O&M) practices, including internal and external corrosion control capabilities, are subject to changes that inadvertently increase the likelihood of release when pipelines transport diluted bitumen. RESULTS Central Findings The committee does not find any causes of pipeline failure unique to the transportation of diluted bitumen. Furthermore, the committee does not find evidence of chemical or physical properties of diluted bitumen that are outside the range of other crude oils or any other aspect of its transporta- tion by transmission pipeline that would make diluted bitumen more likely than other crude oils to cause releases. Specific Findings Diluted bitumen does not have unique or extreme properties that make it more likely than other crude oils to cause internal damage to transmis- sion pipelines from corrosion or erosion. Diluted bitumen has density and

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Executive Summary 3 viscosity ranges that are comparable with those of other crude oils. It is moved through pipelines in a manner similar to other crude oils with respect to flow rate, pressure, and operating temperature. The amount and size of solid particles in diluted bitumen are within the range of other crude oils and do not create an increased propensity for deposition or erosion. Shipments of diluted bitumen do not contain higher concentra- tions of water, sediment, dissolved gases, or other agents that cause or exacerbate internal corrosion, including microbiologically influenced corrosion. The organic acids in diluted bitumen are not corrosive to steel at pipeline operating temperatures. Diluted bitumen does not have properties that make it more likely than other crude oils to cause damage to transmission pipelines from exter- nal corrosion and cracking or from mechanical forces. The contents of a pipeline can contribute to external corrosion and cracking by causing or necessitating operations that raise the temperature of a pipeline, pro- duce higher internal pressures, or bring about more fluctuation in pres- sure. There is no evidence that operating temperatures and pressures are higher or more likely to fluctuate when pipelines transport diluted bitumen than when they transport other crude oils of similar density and viscosity. Furthermore, the transportation of diluted bitumen does not differ from that of other crude oils in ways that can lead to conditions that cause mechanical damage to pipelines. Pipeline O&M practices are the same for shipments of diluted bitumen as for shipments of other crude oils. O&M practices are designed to accom- modate the range of crude oils in transportation. The study did not find evidence indicating that pipeline operators change or would be expected to change their O&M practices in transporting diluted bitumen. In accordance with the study charge, these results focus on whether pipeline shipments of diluted bitumen have a likelihood of release greater than that of other crude oils. As indicated at the outset of this summary, the committee was not asked or constituted to study whether pipeline releases of diluted bitumen and other crude oils differ in consequences or to determine whether such a study is warranted. Accordingly, the report does not address these questions and should not be construed as having answered them.