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Providing coverage of Alaska and northern Canada's oil and gas industry
May 2012

Vol. 17, No. 19 Week of May 06, 2012

DEC confirms oil tank inspection waiver

The Alaska Department of Environmental Conservation has rejected an appeal of its decision to grant a two-year waiver on a required inspection of a giant oil storage tank at the Valdez Marine Terminal.

A Valdez-based nonprofit organization, the Prince William Sound Regional Citizens’ Advisory Council, had asked the DEC to reconsider the waiver.

Tank 5 is one of the enormous tanks used to store North Slope crude prior to loading aboard tankers. Each has a capacity of 510,000 barrels.

Tank 5 was coming due for a summer internal inspection and cleaning, but terminal operator Alyeska Pipeline Service Co. on Feb. 1 obtained permission from the DEC to delay the procedure for two years until 2014.

The tank was last drained, cleaned and inspected internally in 2001.

The citizens’ council raised various objections to the waiver, including corrosion on the tank roof.

But the DEC, in an April 5 letter, stood by its decision.

The letter said “all requests for waivers to established internal inspection intervals are thoroughly and rigorously reviewed,” with the involvement of DEC’s professional engineering staff.

The agency has determined “we made the correct decision” in granting the two-year internal inspection deferral, the letter said. It also noted the tank is up for a 2012 external inspection, which isn’t covered under the waiver, and this will include inspection of the tank’s external roof plates.

The DEC now is evaluating Alyeska’s request for an internal inspection waiver for Tank 10. The citizens’ council opposes this waiver as well.

—Wesley Loy






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