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NEWS BULLETIN

January 02, 2002 --- Vol. 8, No. 1January 2002

Pelican applies for Beluga, Tyonek seismic programs

Pelican Hill Oil and Gas Inc. has applied to the Alaska Department of Natural Resources, Division of Oil and Gas, to conduct two seismic surveys on the west side of Cook Inlet. The company has Mental Health Trust Land oil and gas leases on the west side.

Project 1, Beluga 3-D, is 14 square miles within townships 12 and 13 north, ranges 11 and 12 west, Seward Meridian. Project 2, Tyonek 3-D, is 20 square miles within townships 10 and 11 north, ranges 12 and 13 west, Seward Meridian.

The locations for the source and receiver lines will be marked on the ground. Three track-mounted drills will bore to depths of 20 feet every 220 feet along a source lines. A 4.4 pound charge of Dynoseis will be placed in each hole and the hole will be backfilled.

The source lines will be 990 feet apart.

Recording cables with geophones will be placed on the ground, with recording lines 660 feet apart.

The charges will be detonated one at a time. The recording cables, flagging, stakes and cap-wire will be recovered and the process repeated until the program is complete. The activity will be supported by a helicopter and fixed wing aircraft. The 30 person crew will be staged from existing facilities in Beluga, Tyonek or Shirelyville.

The program will occur during the winter of 2001-2002 and take approximately 45 days.

Alyeska reports brine release at pump station 1

The Alaska Department of Environmental Conservation said Jan. 2 that Alyeska Pipeline Service Co. reported a brine spill Jan. 1 at pump station 1.

DEC said Alyeska has estimated up to 2,450 gallons of refrigerant brine solution may have spilled. Brine solution is predominantly water with calcium chloride to prevent freezing and hexavalent chromium as a corrosion inhibitor.

The spill was from a leak in a two-inch underground brine refrigeration loop beneath the warehouse and shop area at Pump Station 1, Prudhoe Bay. DEC said the release is most likely caused by corrosion. The leaking loop was isolated and a team is removing insulation and exposing pipe to identify the exact location.

The refrigeration line keeps the gravel pad frozen under the warehouse and shop area to maintain structural integrity.

The line has been isolated and blind flanges installed. If the location of the leak is not discovered, the line will be pigged to remove remaining brine in the line. A fiber-optic camera will be brought in to examine the inside of the pipe. Hydrophonic testing has been proposed, but may be difficult to use since the building has a concrete floor.

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