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Providing coverage of Alaska and northern Canada's oil and gas industry
May 2000

Vol. 5, No. 5 Week of May 28, 2000

Tesoro installs new vapor controls for Port of Anchorage tanks

Company owns two terminals in Anchorage, conducted business as usual out of second terminal while floating roofs installed

Kristen Nelson

PNA News Editor

Tesoro Alaska Co. has completed changes to vapor control equipment as its fuel storage and handling facilities in the Port of Anchorage.

The Alaska Department of Environmental Conservation said April 24 that the changes were made in response to violations discovered during DEC investigations during the last half of 1999. The agency said Tesoro had violated air quality regulations and permit terms, and installed floating roofs on its fuel storage tanks to reduce the amount of vapors generated and minimize the load on pollution control equipment.

DEC pleased with new equipment

Tom Chapple, DEC director for air and water quality, said the agency is pleased with the actions Tesoro has taken to remedy the situation.

“The new equipment is better suited to contain vapors for the size of their operation,” he said.

In addition to the new floating storage tank roofs, DEC said Tesoro has also made improvements to its vapor recovery equipment and established improved inspection and maintenance procedures.

DEC said it issued a notice of violation to Tesoro on March 3 that lists eight allegations. In addition to operating pollution equipment beyond its capacity, the notice also alleges that Tesoro failed to report system leaks, conducted improper inspections, and failed to notify the state of detected problems.

Settlement in the works

“While we’re pleased with the progress made to control vapors and protect air quality, we still take past violations seriously,” Chapple said.

Ron Noel, Tesoro Alaska Co.’s vice president and general counsel, said May 17 that the work had been completed and that the terminal was fully operational again.

Noel said that in addition to the Tesoro terminal, the company owns another terminal in the Port of Anchorage. He said they temporarily stopped loading gasoline out of one terminal while the floating roofs were being installing.

“That work is done and that terminal is back in operation in full compliance,” he said. Because Tesoro owns the second terminal, they were able to carry on business as usual during the construction, Noel said.

DEC said it and Tesoro are working towards a settlement agreement on past violations which will include penalties.






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