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Providing coverage of Alaska and northern Canada's oil and gas industry
March 2014

Vol. 19, No. 11 Week of March 16, 2014

Alyeska closes book on enforcement case

Alyeska Pipeline Service Co. recently received a welcome “closure letter” from one of its main regulators, the U.S. Pipeline and Hazardous Materials Safety Administration.

The letter stems from a $600,000 global settlement in 2011 in which Alyeska resolved four enforcement actions PHMSA had brought against the company.

Alyeska operates the 800-mile trans-Alaska oil pipeline.

One residual issue remained after the settlement: a requirement that Alyeska develop and implement a “risk-based atmospheric corrosion control monitoring program” for the pipeline system.

The closure letter, dated Jan. 7, said Alyeska submitted procedures describing its method for conducting the corrosion control monitoring on the mainline pipe and facility piping. PHMSA, however, responded that the procedures were inadequate.

Alyeska in 2013 submitted revised procedures, and “it appears that the inadequacies have been corrected,” the letter said.

“PHMSA will confirm during future inspections that Alyeska's corrosion control plan is properly implemented and the pipelines are protected against atmospheric corrosion,” wrote Chris Hoidal, PHMSA Western Region director. “This letter is to inform you this case is now closed. Thank you for your cooperation.”

“We worked diligently to reach agreement with our regulator and to meet the terms of that agreement,” Alyeska said in a March 12 statement to Petroleum News. “We are pleased this matter was closed out in January.”

Alyeska President Tom Barrett formerly headed PHMSA.

—Wesley Loy






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