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Pipeline Company Reaches Deal For Cushing to Memphis Pipeline

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 A western Arkansas water utility and a company building a $900 million oil pipeline have reached a deal to protect drinking water sources from potential spills.

Diamond Pipeline LLC and the Clarksville Light and Water Co. finalized a $6.6 million deal Wednesday. The 440-mile pipeline will be capable of transporting 200,000 barrels per day of domestic crude oil from Cushing, Oklahoma, to Valero's refinery in Memphis, Tennessee.

The Arkansas Democrat-Gazette reports that the plan calls for Diamond Pipeline to provide $6.6 million to extend a pipe that feeds a Clarksville water-intake facility so it will be north of the oil pipeline's path.

Diamond Pipeline said in a statement that it's pleased the agreement was reached and that the company intends to responsibly operate and maintain the pipeline.