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NEWS BULLETIN

January 16, 2002 --- Vol. 8, No. 7January 2002

Gas delivery to Enstar driving Kenai-Kachemak Pipeline schedule

Applications are being turned in and a June date has been set to order pipe for the Kenai-Kachemak Pipeline, with the schedule geared to meet a Jan. 1, 2004, date for Unocal to begin delivering natural gas to Enstar.

Kenai Kachemak Pipeline LLC, which will build the Kenai to Anchor Point line, is owned by subsidiaries of Union Oil Company of California and Marathon Oil Co.

Kenai-Kachemak started its open season late last year and non-binding preliminary expressions of interest in shipping natural gas on the pipeline are due Jan. 25 , the company told the Regulatory Commission of Alaska Jan. 16. The company said it expects to file applications with the RCA the week of Feb. 4.

Applications have already been filed with the State Pipeline Coordinator for rights of way and with the Division of Governmental Coordination because the project is in the coastal zone.

Firm commitments from shippers are due June 3, at which point pipe will be ordered.

The company wants to have its permits in place by Jan. 1, 2003, and to start construction Feb. 1, 2003, with a heavy winter 2003 construction season. The pipeline would be finished up in the fall. Nov. 1, 2003, is the target date for project completion.

Forest Oil pipe has arrived; company's permits being reviewed

The Alaska Division of Governmental Coordination has public noticed Forest Oil Corp.'s application to turn its Redoubt Shoal exploration project into a production project.

DGS said Jan. 16 that public comments are due Feb. 19 on the proposal to develop the Redoubt Shoals prospect near the West Foreland area of Cook Inlet. Forest is proposing to convert its Osprey exploration platform into a development platform, construct the onshore Kustatan production facility and construct pipelines from the platform to the Kustatan production facility and then to existing pipelines.

Bob Visser, a consultant working with Forest on design and installation of the pipeline, said Jan. 10 at a Cook Inlet pipeline forum in Soldotna and said the coated pipe was being offloaded from railroad cars in Anchorage.

Three pipelines will be pulled from onshore out to the platform: a crude oil line, a gas line and a water line which will carry produced water back to the platform for injection, Visser said.

The pipelines will come down from the top of the bluff at Kustatan through cased borings which will terminate 10 feet below low water level, eliminating any onshore pipeline exposure.

Light sheen discovered at Valdez Marine Terminal

Alyeska Pipeline Service Co. said a light sheen was discovered inside the boom at Berth 4 of the Valdez Marine Terminal at 10:38 a.m. today while the SeaRiver Baytown was in the latter stages of loading operations.

Alyeska said the sheen was contained within the boom surrounding the ship and has been cleaned up. Inspection of the vessel revealed a hairline crack in starboard tank 6 approximately three feet above the waterline.

An investigation is under way. Preliminary estimated spill volume is less than one teaspoon.

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