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July 2002

Vol. 7, No. 28 Week of July 14, 2002

Draft EIS favors 30-year renewal of trans-Alaska pipeline right of way

State, feds both favor trans-Alaska pipeline requested by owners; shorter renewal period, no renewal also evaluated in draft environmental impact statement

Kristen Nelson

PNA Editor-in-Chief

The owners of the trans-Alaska pipeline system requested a 30 year renewal of their rights of way, and decisions released July 5 by state and federal regulators concurred.

The Bureau of Land Management and the Alaska Department of Natural Resources federal-state Joint Pipeline Office released a draft environmental impact statement (BLM) and a commissioner’s statement of reasons and proposed written determination (DNR).

The proposed action in the DEIS is a renewal of the federal grant for 30 years, with terms and conditions of the grant substantially unaltered under the proposed action. Terms of the federal right of way may be modified by the Secretary of the Interior or the authorized officer, and the DEIS notes that such changes have occurred in the past and may occur under the new federal grant.

The more significant potential inspection and repair operations the Alyeska Pipeline Service Co. owners expect over the 30-year term include: using instrumented pigs to gather corrosion data and digging up below ground pipe where necessary, examining it and replacing if necessary; upgrading the cathodic protection system and/or excavating and re-coating the pipeline; inspecting and repairing below ground valves; placing sleeves on damaged pipeline or replacing sections of pipeline; monitoring and maintaining above ground pipe support systems including vertical support members; repairing and upgrading armored banks and designed embankments; and mining gravel and rock from existing or new quarries.

Proposal to renew for less than 30 years

The DEIS also looked at an alternative to renew the lease for less than 30 years, based on comments received during the scoping period, but found that under this alternative investment in new North Slope production would likely be reduced, which would have an adverse impact on domestic oil production, national energy security, the balance of trade and overall economic activity.

BLM also said that a shorter renewal period would reduce the flow of funds into state and local governments, reducing their ability to implement a range of programs with long operating lives.

No-action alternative

The DEIS also reviewed an option not to renew the federal grant, and said the economic impacts on Alaska and the United States would be very significant: North Slope oil production would cease because there would be no cost-effective means of getting the oil to market. Gross state product would decline by almost 40 percent.

And since North Slope oil production contributes about 18 percent of America’s oil production, the loss of ANS oil would negatively affect the nation’s energy security and the balance of trade.

State renewal

The DNR commissioner’s decision says state statute provides that the lease will be renewable if the lessee is in commercial operation, is in full compliance with all state law and is in compliance with the terms of the lease.

The commissioner’s decision notes that a reliability-centered maintenance report done by the Joint Pipeline Office found the useful life of the trans-Alaska pipeline system facilities “is in excess of the 30-year renewal term requested in the renewal application…”

“All compliance issues are either resolved, have a path to resolution acceptable to JPO or are targeted for evaluation using the reliability centered maintenance system integrity review process,” Jerry Brossia, BLM authorized officer, and John Kerrigan, DNR state pipeline coordinator, reported April 30. Open findings in the JPO’s comprehensive monitoring program are expected to close in 2002 and include: closure of Alyeska’s internal quality assurance surveillance finding regarding effectiveness of supplier qualification program; advance notification of authorized officer when terminating Alaska Native workers; need to automate earthquake checklist for Valdez Marine Terminal (checklist is complete); adequacy of Alyeska surveillance program and configuration of pipe at Mile Post 170 referred to reliability centered maintenance process for analysis; and access ladder at Check Valve 111A needs to be relocated.

Hearings scheduled

BLM and DNR will hold joint public hearings: July 26 in Cordova; July 30 in Valdez; July 31 in Glennallen; Aug. 5 in Anchorage; Aug. 6 in Fairbanks; Aug. 7 in Minto and Aug. 9 in Barrow.

Electronic copies of the 1,700-page four-volume DEIS are available online at http://tapseis.anl.gov. The proposed determination is at http://www.tapsrenewal.jpo.doi.gov.

Comments on the renewal must be received by Aug. 20.






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