April 16, 2001 --- Vol. 7, No. 43April 2001

Alaska North Slope gas producers award last four engineering contracts

The major Alaska North Slope gas producers (BP, Phillips, and ExxonMobil), acting as the North American Natural Gas Pipeline Group, said today that the last four requests for proposals issued earlier this year for gas pipeline-related feasibility studies have been awarded. The first six RFPs were awarded March 22.

The conceptual engineering contracts have been awarded to three joint ventures, representing nine different contractors. The contracts are for engineering services for potential pipeline routes from Prudhoe Bay to Alberta; a new pipeline from Alberta to U.S. markets; a gas treatment plant on the North Slope; and a natural gas liquids plant.

Anchorage-based VECO through a joint effort with Fluor in Sugar Land, Texas and Calgary, Alberta, will provide engineering, conceptual design and evaluation for route possibilities from the North Slope to central Alberta. This work will provide a basis for possible future Federal Energy Regulatory Commission and Canadian National Energy Board permit applications. The AlasCan Group, based in Calgary will be responsible for providing engineering, conceptual design and evaluation of new build pipeline infrastructure from Alberta to U.S. markets. The group is a joint venture between five companies: Kellogg Brown & Root, based in Houston and Edmonton; COLT Engineering, based in Calgary; Michael Baker Jr.ís Anchorage office, Natchiq and NANA/ Colt Engineering LLC, both headquartered in Anchorage.

Natchiq, headquartered in Anchorage, through a joint venture with Parsons Engineering in Arcadia, Calif. will be responsible for engineering and evaluation of a gas treatment plant on the North Slope. The plant would condition gas for sale by removing CO2, and compressing and chilling gas before it entered the pipeline. It would be the largest facility of its kind in the world.

Fluor and VECO will also be engineering and evaluating a natural gas liquids plant that may be built along the pipeline route at a location to be determined during the feasibility phase. This plant would remove NGLs, which can be used in a variety of petroleum applications.

For further information contact:

Pete Leathard, VECO, (907) 264-8104

Keith Karpe, Flour, (949) 349-7661

John Miner, The Alascan Group, Anchorage (907) 273-3910

Cindy Viktorin, The Alascan Group, Houston (713) 676-7125

Bill Cheek, Natchiq/Parsons, (907) 344-5757

Ed Stringham, Natchiq/Parsons, (626) 294-3586

Produced water spill at Kuparuk

There was a 92,400 gallon produced water spill at Kuparuk April 15, the Alaska Department of Environmental Conservation said today from produced water line 1B at Central Processing Facility 1.

Kuparuk operator Phillips Alaska Inc. has removed liquids with a vacuum truck, with 73,080 gallons of snow melt and produced water removed. All of the spilled material was to the tundra. The line was shut in within 12 minutes of discovery. DEC said Phillips has 24 spill technicians helping to remove contaminated snow. Since the spill occurred under flow lines, most of the removal will be by hand.

DEC said the need to sandbag and flush the spill site will be evaluated.

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