Chevron (NYSE:CVX) Receives Citations for Salt Lake City Oil Spill

Utah regulators have issued citations to Chevron Corp. (NYSE:CVX) for the oil leak from a pipeline which entered into Red Butte Creek in Salt Lake City.

Oil also laid in a pond at a city park, while also migrating into the Jordan River.

Fines from the citations could begin at $10,000 a day for the duration of the polluted waterways, and could go as high as $25,000 a day if it is ruled it came about from gross or willful negligence.

The state regulators said they're waiting for the response from Chevron before deciding on whether to issue fines or not.

That sounds odd to me, as it's irrelevant as to the response of Chevron to the situation. It was either negligence or not.

According to Chevron, they believe the oil leak was the result of a melted hole in the casing of the pipe from a power line short. That power line went through a utility fence post, which evidently resulted in the melted pipe.

Spectra Energy (NYSE:SE) Downgraded by Jefferies Group

As if the equities correction and economic concerns weren't enough to battle, Spectra Energy (NYSE:SE) now has the additional and unfortunate burden of fighting through the downgrade today by Jefferies Group from "hold" to "underperform."

By the end of the session, Spectra gave up 8.24 percent, or $1.74, falling to $19.37 a share. That's the highest percentage drop they've experienced since November 20.

The primary motivator behind the downgrade was based upon lower earning per share estimates. EPS was adjusted to 10 cents on the downside from the projected oil prices being down from previous estimates. EPS for Spectra are now forecast to come in at $1.35.

Original EPS guidance from Spectra was based on oil being $80 a barrel. Jeffries decision was based on oil prices per barrel falling to $77. Their price target was also lowered to $18 a share.

Volume was heavy for Spectra on the news, reaching 13,128,230, over four times the 3-month average of 3,263,980.