Federal regulators cite safety concerns tied to aging pipeline
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STERLING HEIGHTS, Mich. — The U.S. Department of Transportation has issued a sweeping corrective action order to pipeline giant Energy Transfer after crude oil leaked from an aging pipeline in Sterling Heights — an incident that federal investigators say may be part of a larger, system-wide safety problem.
The Pipeline and Hazardous Materials Safety Administration (PHMSA) issued the order Sept. 21, directing Energy Transfer to shut down the affected pipeline segment, reduce operating pressure across a 130-mile stretch, and complete a series of inspections and repairs before the line can return to full service.
The leak was uncovered Sept. 18 when crude oil surfaced in the parking lot of a gas station in the area of 18 Mile and Mound Road.
City officials quickly worked to contain the leak and prevent it from entering city and county storm drains.
According to the federal order, Energy Transfer estimated a spill volume of approximately 15 barrels — roughly 630 gallons. The company then isolated a 16-mile segment of the pipeline.
On Sept. 19, after excavating several locations along the pipeline, Energy Transfer confirmed the leak originated from a failed repair sleeve — a steel device used to fix damaged sections of pipe — that had been installed in 2010.
The City of Sterling Heights said its departments moved quickly to protect residents.
“Thanks to the immediate, coordinated response of the City’s Department of Public Works and Fire Department, there were no identified impacts to residents. Their rapid actions helped secure the area, support containment efforts and reduce the potential for impacts to the surrounding community,” the city said in a statement.
Energy Transfer did not immediately respond to a request for comment from Local 4 Tuesday, Oct. 13.
The pipeline at the center of this incident is the Marysville-Toledo Crude Pipeline, or MTC Pipeline, which runs approximately 130 miles from Marysville, Michigan, to Toledo, Ohio.
The pipeline was built in 1967 using a manufacturing method — low-frequency electric resistance welding — that federal regulators have long identified as susceptible to integrity failures.
More than 109 miles of the pipeline passes through what regulators call “high consequence areas” — densely populated neighborhoods and environmentally sensitive locations where a spill would cause the greatest harm.
Energy Transfer owns or operates approximately 140,000 miles of gas and hazardous liquid pipelines across 44 states.
According to federal regulators, Energy Transfer could not locate the original repair records for the sleeve that failed in Sterling Heights, and could not verify the integrity of 11 other repair sleeves installed on the same pipeline.
The federal order claims this is not the first time this issue has surfaced. In January 2025, it says a similar failure occurred on Energy Transfer’s Twin Oaks Pipeline in Upper Makefield Township, Pennsylvania, where a sleeve failure contaminated surrounding soil and several drinking water wells.
In that case, too, it says Energy Transfer could not locate original repair records.
After the Pennsylvania failure, federal regulators sent Energy Transfer formal requests for records related to repair sleeves across its entire pipeline network.
According to the order, Energy Transfer’s responses revealed it cannot locate original repair records for hundreds of sleeves installed on its pipelines in multiple states, including New Jersey, Pennsylvania, Ohio, Michigan and Texas.
Federal regulators said that missing documentation makes it impossible to verify whether past repairs were done correctly — or whether the pipelines are safe today.
The order stated that Energy Transfer’s leak detection system failed to detect either the Sterling Heights failure or the Pennsylvania failure — raising the possibility that a similar failure elsewhere in the network could also go unnoticed.
The corrective action order lays out a long list of requirements Energy Transfer must meet before the pipeline can return to full service.
The isolated 16-mile segment must remain shut down until federal regulators approve a restart plan, and operating pressure across the entire 130-mile pipeline must be reduced by 20% until the company can demonstrate it is safe to restore.
Energy Transfer must also hire independent third parties to conduct mechanical testing of the failed pipe and a full root cause analysis to determine exactly why the sleeve failed.
The company must also submit a complete inventory of every steel repair sleeve installed across its entire pipeline network and develop a plan to evaluate — and where necessary, remove — any sleeve whose integrity cannot be verified.
The City of Sterling Heights said it supports the federal government’s intervention and expects Energy Transfer to be held accountable.
“Energy Transfer representatives acted swiftly to coordinate follow-up action, including shutting the line down to conduct an assessment. City officials support additional corrective action plans initiated by the U.S. Department of Transportation to ensure the 130-mile line is structurally sound to avoid the potential for future leaks,” the city said.
The city also emphasized that protecting residents remains its top priority.
“The City of Sterling Heights takes the recent crude oil leak extremely seriously. Protecting the health, safety, and quality of life of our residents while safeguarding local waterways, infrastructure, and natural resources remains a high priority,” the statement read.
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