Chevron faulted for leak

Government investigators have found that a decades-old pipe that leaked and caused a massive fire at a Chevron refinery in California was corroded, and the company knew it should have been replaced.

The U.S. Chemical Safety Board and California Division of Occupational Safety and Health issued the report Wednesday, finding the 8-inch steel pipe was installed in 1976 and ruptured due to corrosion.

The report confirmed previous findings by both the agencies and the company.

The fire created a large plume of black smoke, sending thousands of nearby residents to hospitals complaining of eye irritation and trouble breathing.

Rafael Moure-Eraso, board chairperson, said Chevron should have replaced the pipe years ago.

San Rafael-based Chevron said some of the report's findings are consistent with its own, and the company is inspecting every pipe susceptible to the same type of corrosion.

A serious buyer is talking with Time Warner to buy several magazines from it, including People, InStyle and Real Simple, according to a Fortune magazine report.

Wednesday's report cited unnamed people familiar with the matter and comes two weeks after the magazine unit, Time Inc., said it's cutting 6 percent of its global staff of 8,000, or about 500 people.

Companies sometimes lay off workers before selling assets to make them more profitable and attractive to buyers.

Fortune is also owned by Time Inc. and says it might not be part of a sale.

The magazine said the talks are early and might fall apart.

A Time Warner spokesman declined comment. A message left at BDT Capital was not immediately returned.

Stocks edged lower Wednesday, pulling indexes down from near to record levels.

McDonald's was among the biggest decliner on the Dow, logging its biggest drop of the year, on concern that Americans will have less money to spend after a rise in Social Security taxes. The government reported that spending by Americans barely moved up last month.