November 21, 2008

Documents Show Corroding Alaska Pipeline

Corrosion is eating away at approximately 319 significant pits in the Trans-Alaska Pipeline, according to Alyeska pig run data obtained through the Freedom of Information Act (FOIA). The pig run data shows that corrosion is both severe, with as much as 47% wall thickness already gone in some locations, and widespread, being clustered in locations all up and down the line. [Ed Note, 3/29/09: recent, reliable third hand information is that Alyeska dug up this particular section this summer, and found the smart pig was inaccurate, and there was only 33% wall loss. I'm told their fix criteria is roundabouts 40% wall loss, so they plan to take action on it some time later.] Correspondence also released with the pig run results shows that, of the 319 rusting locations, Alyeska has scheduled only six for repair or special inspection on their three-year dig scope.

Corroded locations include:
  • 29 pits in the Copper River Watershed, including one with 47% wall loss, along the Gulkana River;
  • 16 pits along the Lowe River, including two in Keystone Canyon where maximum operating pressure exceeds the calculated "B31G" remaining strength;
  • 19 pits along the Delta River;
  • 7 pits within the town of Delta Junction;
  • 7 pits in North Pole;
  • 3 pits in Fairbanks;
  • 4 pits in the Yukon River High Consequence Area;
  • 18 pits where leaks would quickly drain to the Koyukuk River;
  • 56 pits along the Sagavanirktok River, which threatens release into the Arctic Ocean.
This corrosion is a major danger to downstream stakeholders. A spill at one of these locations could spell disaster, particularly around stream crossings. Expect any corroded holes to leak for a long time before being detected, too. Alyeska estimates it would take them 3 months to detect a "small" leak in a buried pipeline section, such as those along the Gulkana, Sagavanirktok and Delta rivers.

The rusted TAPS is also a threat to consumers and the economy. The 2006 corrosion-caused shutdown sent shockwaves through markets and led to a gasoline price spike. An extended TAPS shutdown during winter could turn the pipeline into one long, crude-oil popsicle. Alyeska has no real cold restart procedure.

The list of "anomolies" are the long-awaited results of Alyeska's most recent "ILI-MFL" smart pig run. Generally run every three years, these smart pigs are the key method of checking TAPS for internal corrosion. The results show size and location of rusted spots and amount of wall loss. Calculations are then run that show the remaining "B31G" hoop strength, giving a conservative estimate of maximum operating pressure before the pipe would burst. The tool is not terribly precise, being specified to +/- 10%, 80% of the time.

These pig runs lately have been plagued with problems. The first attempt in 2006 failed on the southern part of the line, for undisclosed reasons. Around the same time, the huge metal O-ring in a cleaning pig was lost somewhere in the pipe. The smart pig was run again in 2007. The combined results are what is shown in the FOIA.

Additional correspondence released in this FOIA shows an inefficient bureaucracy and noncooperative industry. Alyeska repeatedly delays release of smart pig results, citing complications with subcontractors, BJ Process & Pipeline Service Company, and CC Technologies.

Federal regulators at Joint Pipeline Office show no evidence of being in control. Their directives are routinely ignored and violated by Alyeska, with no repercussions. There is only one lonesome inspection report in the file, and that is on a peripheral issue.

I want to say they are asleep at the wheel. But after reviewing the weak pipeline regulations in play, it may be a more apt metaphor to say they're stuck behind the wheel of one of those little clown cars, trying to influence the industry, who drives a Hummer.

There is more to come. These documents are only a first installment. Alyeska has filed a "reverse FOIA" seeking to block release of two related studies that should help explain the significance of the pig results. It looks like we may have to take them to court to see those.

Download the FOIA Here:
/Alyeska_pig_run_results.pdf

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November 11, 2008

Whistleblower calls out Bush Justice Department for letting BP off easy


EPA whistle-blower Scott West came forward yesterday charging that criminal prosecution of BP for the North Slope's largest-ever oil spill in 2006 was illegally blunted by Bush administration political appointees. The $20 million misdemeanor fine that was issued is far lower than the EPA's recommended fine of between $58 and $672 million. Also, investigation into felonies by BP executives was abruptly halted, before evidence had even been reviewed, and over objections of staff. (Download the /letter)

At root the case is about BP cutting corners by skimping on corrosion protection and control and leak detection systems. By cutting costs they increase profit. But, at the expense of more and bigger and worse spills and workplace injuries.

"The BP Alaska settlement is part of a pattern of "lowball" corporate public safety and pollution settlements engineered by the Bush Justice Department," West and Public Employees for Environmental Ethics said in a letter to the DOJ Inspector General asking for an investigation. "A $20 million fine is essentially a rounding error in terms of the money BP makes in Alaska. There is little deterrent value in this amount to encourage BP to change its ways..."

"The deterrence value of criminal fines is being systematically undermined by this DOJ," they write, pointing to"outrageous"  low-ball settlements in the Olympic Pipeline explosion, Selandang Ayu sinking, and BP Texas City explosion.

West's allegations certainly fit into some familiar patterns. Justice Department being run by political hacks, big corporations getting slaps on the wrist for dangerous behavior, and evidence of wrongdoing being covered up. Corrosion continues to eat away the oilfield, and spills continue to happen. The only real surprise here is that this time, someone from the inside came forward and is making a fuss about it. 

With the new administration we hope the Inspector General takes these allegations seriously. The whistle-blower writes that other senior managers can corroborate the allegations, "but they cannot openly talk at this time because their jobs would be in jeopardy." That in itself points to something wrong. Time to clean up your act, guys.

The bottom line in all this is that oil companies and regulators aren't doing their jobs. The results are evident in spill and explosions that continue to threaten Alaska's environment and workers, and the Nation's oil supply. Sweetheart deals are the almost inevitable result of doing things behind closed doors, and locking actual stakeholders out. Political appointees and corporate hacks are never going to do the right thing unless they are held accountable and their dealings are exposed to the light of day. 

The ultimate solution then are Regional Citizen Advisory Councils that give stakeholders a seat at the table. That's what was done here in Prince William Sound after the Exxon Valdez, and it has done wonders. Contact your representative and tell them we need to do this, and join the CWP to help us make them.