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State, Williams, Flint Hills agree Will share $1.75 million cost of study, construction schedule for water system extension to North Pole areas hit by sulfolane plume Kristen Nelson Petroleum News
The State of Alaska, Flint Hills Resources Alaska and Williams Alaska Petroleum have agreed to share equally in costs of preliminary engineering and survey work in North Pole.
The survey work would be to provide a water distribution utility service to homeowners and property affected by the sulfolane plume in North Pole, Alaska Attorney General Michael Geraghty said in a statement earlier in July.
“While none of the parties are committing at this point to the construction of a new water system, this is an important step in potentially solving the long-term problem in North Pole and hopefully enabling the sale of the refinery to another operator,” Geraghty said.
Fairbanks Sewer & Water Inc. will develop the design, cost estimate and construction schedule for a water main extension from the Fairbanks Sewer & Water system and a local distribution system to serve parties affected by the sulfolane contamination.
Rep. Doug Isaacson, R-North Pole, said in a July 18 statement that he has had several lengthy discussions with the parties, and on July 17 took part in a meeting with members of the Interior delegation, the Fairbanks North Star Borough, the City of North Pole, Utility Services of Alaska and Flint Hills to discuss the timeline and preliminary steps for the project.
Evaluating the cost Isaacson said the parties have arranged to design a system to evaluate the cost and generate a construction schedule for a project estimated to reach approximately 330 customers outside of North Pole directly affected by the sulfolane plume. He said the system would have room for expansion to meet future needs.
The cost of the study is pegged at some $1.75 million to be shared equally by the state, Flint Hills and Williams, Isaacson said. He said the study will take six to nine months to complete, with legal, environmental and right-of-way issues expected to take longer.
“Our office is currently working with other legislators and the Administration to resolve those issues in manner that will be both safe for the residents and encourage a re-start of refinery operations,” Isaacson said.
Latest challenge lost In related news the Associated Press is reporting that Flint Hills Resources has lost its latest challenge in an attempt to get Williams Alaska Petroleum to pay for the North Pole groundwater contamination. Flint Hills acquired the refinery from Williams in 2004.
Superior Court Judge Michael P. McConahy ruled in November that the statute of limitations had expired by the time Flint Hills filed a lawsuit against Williams. McConahy made the same ruling earlier in July, AP said, citing a report in the Fairbanks Daily News-Miner, which reported that Flint Hills was aware of the contamination, but initially thought it was confined to ground beneath the refinery.
Flint Hills shut down operations at the refinery in May, citing the cost of cleanup and mitigation efforts as a factor in the closure.
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