U.S. Fish and Wildlife stops gravel work at Northstar

Petroleum News Alaska Staff

A decision will be made by the U.S. Army Corps of Engineers in Washington by May 5 on permits for BP Exploration (Alaska) Inc.’s Northstar project. BP needed permits by April 2 to begin gravel work on the island, so work on the project has been delayed a year.

The Alaska region of the corps was ready to issue the permit in late March for the shortest offshore pipeline route among several alternatives considered in the Northstar environmental impact statement, but the U.S. Fish and Wildlife Service asked the Department of Interior to request a review by the corps in Washington. Interior agreed with the review request.

Alaska region corps’ spokesman John Killoran told PNA April 12 that the memorandum of agreement under which the agencies are operating provides for a 30-day review, and that 30-day window ends May 5.

Spokeswoman Carla Beam of BP Exploration (Alaska) said April 5 that BP needed permits by April 2 in order to complete gravel hauling across the sea ice road before it softened too much. Things start to melt by the first week of May, Beam told PNA, and BP needed a “solid month” to get gravel work done. “Without a good solid month we just don’t feel we can complete the work in a safe and orderly way,” she said.

BP has spent $130 million to date on Northstar and will spend about $70 million in 1999 on long-lead time equipment orders and project engineering, Beam said.