Energy Transfer Faces Federal Order After Crude Oil Leak in Michigan

The U.S. Department of Transportation ordered Energy Transfer to shut down an affected segment and reduce operating pressure across a 130-mile crude oil pipeline following a September spill in Sterling Heights, Michigan. Federal regulators discovered the company cannot locate repair records for hundreds of pipeline sleeves across its network.

The leak emerged on September 18 when crude oil surfaced in a gas station parking lot near 18 Mile and Mound Road. Municipal response teams contained the spill before it entered local storm drains, estimating the volume at approximately 15 barrels, or 630 gallons. Excavation the following day revealed the release originated from a steel repair sleeve installed in 2010.

Operational Impact and Mandatory Network Inspections

The Pipeline and Hazardous Materials Safety Administration issued a corrective action order on September 21 targeting the Marysville-Toledo Crude Pipeline. Constructed in 1967 using low-frequency electric resistance welding—a method federal regulators have long identified as susceptible to integrity failures—the 130-mile line passes through more than 109 miles of high-consequence areas containing dense populations and sensitive environmental zones.

Under the federal directive, the isolated 16-mile segment remains offline pending restart approval. Operating pressure across the remaining infrastructure must stay reduced by 20% until safety verifications conclude. Furthermore, the company must hire independent third parties to complete mechanical testing and a root cause analysis of the failed 2010 repair device.

Metric / Parameter Operational Detail
Pipeline Length 130 miles (Marysville, MI to Toledo, OH)
Spill Location 18 Mile and Mound Road, Sterling Heights, MI
Estimated Spill Volume 15 barrels (~630 gallons)
Installation Date of Failed Sleeve 2010
Original Pipeline Construction Year 1967

Systemic Documentation Failures Across Multiple States

Federal oversight expanded after investigators found that Energy Transfer lacked documentation not only for the Sterling Heights failure but also for 11 other repair sleeves on the same conduit. This mirrors a January 2025 incident involving the Twin Oaks Pipeline in Upper Makefield Township, Pennsylvania, where a sleeve failure compromised soil and local drinking water wells.

Inquiries following the Pennsylvania incident prompted demands for network-wide repair records. Responses submitted to regulators revealed hundreds of missing sleeve records across Texas, New Jersey, Pennsylvania, Ohio, and Michigan. Regulators noted that leak detection systems failed to register both the Pennsylvania and Sterling Heights events.

City officials in Sterling Heights expressed backing for the federal mandates while monitoring remediation. The corporation must compile an inventory of every steel repair sleeve across its footprint and execute removal or evaluation plans for any unverified device before full service resumes.

Feds order Energy Transfer to inspect, repair pipelines after Sterling Heights crude oil leak

Photo of author

Alexandra Hartman Editor-in-Chief

Editor-in-Chief Prize-winning journalist with over 20 years of international news experience. Alexandra leads the editorial team, ensuring every story meets the highest standards of accuracy and journalistic integrity.

J7 Task Force Convenes in London and Dublin to Discuss Antisemitism