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Mystery of Alaska pipeline bombing solved Fairbanks man charged in connection with 1978 sabotage that caused major oil spill; he admitted to the crime, authorities say Wesley Loy For Petroleum News
After 36 years, law enforcement authorities believe they finally know who set off a bomb on the trans-Alaska pipeline in 1978, causing a major oil spill.
A federal grand jury has indicted Philip Martin Olson, 61, of Fairbanks, in connection with the bombing.
The five-page indictment, dated May 21, says the FBI and the Alaska State Troopers interviewed Olson a number of times and he “consistently admitted” he carried out the bombing.
Olson, however, was not charged with the bombing itself. That’s because time had expired long ago under the statute of limitations, Assistant U.S. Attorney Joseph Bottini told Petroleum News.
The indictment instead charges Olson with three counts of falsely claiming another person, identified only as C.D., had helped with the bombing.
‘Designed to cut metal’ The pipeline runs 800 miles across the state, carrying North Slope crude oil to a tanker terminal at Valdez. Owners including BP, ConocoPhillips and ExxonMobil have operated the pipeline since 1977.
Much of the pipeline is above ground.
The indictment says that on Feb. 14, 1978, an explosive device detonated on the pipeline in the vicinity of Nordale Road and Chena Hot Springs Road near Fairbanks, at pipeline milepost 454.5. (The pipeline operator’s booklet, “The Facts,” says the location was Steele Creek, MP 457.5.)
“The explosive charge, which consisted of a commercial explosive composed as a shaped charge specifically designed to cut metal, had been placed inside of the insulation layer on the pipeline and next to the steel pipe itself,” the indictment says. “The explosion blew a hole in the pipeline and caused approximately 12,000 to 14,000 barrels of crude oil to spill from the pipeline before the spill was stopped.” (“The Facts” says the spill was 16,000 barrels.)
Law enforcement agencies investigated, but the bombing went unsolved and no one was ever charged for the attack.
Then, many years later, came useful new information.
In November 2013, the FBI was notified by “an individual” that Olson had been “making statements admitting that he had carried out” the bombing, the indictment says.
So the investigation was restarted.
During interviews, Olson “described in detail how he had planned and prepared to attack the pipeline with an explosive device, and explained exactly how he had actually carried out the actual bombing,” the indictment says.
Investigators were able to corroborate Olson’s admissions, it adds.
No motive disclosed During multiple interviews, Olson implicated another person in the bombing, the indictment says.
“Olson’s statements to the FBI that C.D. had assisted in placing the explosive device on the pipeline ... were intentionally false,” says the indictment.
C.D. was interviewed and he denied assisting Olson in the actual bombing, the indictment says.
The indictment doesn’t say what inspired the bombing, and Bottini said he couldn’t comment on motive.
A May 23 press release from the U.S. Attorney’s Office in Anchorage said that on Feb. 15, 1978, a pilot flying over the pipeline north of Fairbanks spotted what appeared to be a large plume of oil jetting from the line.
The sabotage forced a 21½-hour pipeline shutdown. Repairs involved sealing a hole 1 inch in diameter.
The FBI and the Alaska State Troopers arrested Olson in Fairbanks on May 23. At arraignment, he pled not guilty to the three counts of making false statements.
Bottini, who presented the case to the grand jury, said in the press release that each count carries a potential sentence of up to five years in prison and a $250,000 fine.
Alyeska’s security measures Alyeska Pipeline Service Co., the Anchorage-based oil company consortium that operates the pipeline, provided significant cooperation to the investigating agencies, the U.S. Attorney’s Office said.
“We congratulate the FBI in solving the case. We were happy to help with the investigation,” Alyeska spokeswoman Michelle Egan told Petroleum News.
She referred any questions about the bombing motive to the authorities.
The trans-Alaska pipeline is an asset of national importance, as it transports a significant portion of domestic oil production.
The pipeline has been attacked more than once.
In 2001, a drunken vandal shot the pipeline with a high-powered rifle near the Livengood community about 80 miles north of Fairbanks. The bullet pierced the pipe and insulating jacket, allowing pressurized oil to squirt into nearby woods. The vandal got a multiyear prison sentence.
Alyeska has a security staff and also contracts for security, Egan said. The company uses lots of surveillance, and restricts access to pump stations.
“Our security director has very regular interaction with law enforcement agencies,” she said.
Beyond physical threats to the pipeline, Alyeska pays much attention to potential cyber threats, Egan added.
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