Regulators propose JPO for upstream

Alaska legislators heard Aug. 18 what state regulators are doing or proposing to do in response to the Aug. 6 shutdown by BP Exploration (Alaska) of half of the Prudhoe Bay field, following findings of what the company called unexpected levels of corrosion in a transit line and a small leak.

Alaska Attorney General David Márquez outlined the state’s investigation into the partial shutdown for a joint meeting of the House and Senate Resources committees.

“A thorough fact-finding investigation of BP’s management of the North Slope oil field is taking place,” Márquez said. “After the investigation is complete, appropriate legal action will be taken to protect Alaska’s interests.” Márquez also said the state has served subpoenas on BP and other Prudhoe Bay leaseholders to preserve all documentation related to the Aug. 6 event and pipeline corrosion dating to 1996.

Commissioner of Natural Resources Mike Menge said the administration proposes expanding the federal-state Joint Pipeline Office, which oversees common-carrier pipelines in the state including the trans-Alaska oil pipeline, to supervise upstream lines. Menge said this program would tap into companies’ quality control programs. One of the first steps would be to measure the effectiveness of BP’s quality control program.