Alyeska's self-audit renews calls for TAPS citizens' advisory group

Alyeska Pipeline Service Co.'s recent announcement that it will do its own audit of the integrity of the 800-mile long trans-Alaska pipeline has renewed calls for a citizens oversight group for the pipeline.

Environmental and citizen activists are asking Congress to put in place at least one watchdog group, and possibly three, for the pipeline, groups similar to the council that was formed after the Exxon Valdez oil spill and now watches over Alyeska's terminal and tanker operations in Prince William Sound. They also want Congress, through its authority over pipelines, to conduct an independent audit even if Alyeska does its own.

"This is not just an environmental issue in Alaska," said Peter Van Tuyn, an Anchorage attorney who is working with the local groups, including the Copper River Watershed Project and the Copper Country Alliance. "It's an important pipeline for energy in the U.S. We really should know that it's got integrity.

"Having Alyeska do its own audit is the fox looking in the henhouse to say 'Let me count the chickens.' It's not going to result in a lot of chickens."

The Deepwater Horizon blowout and oil spill in the Gulf of Mexico has put oil and gas operations throughout the country under the microscope, and the small group of activists from the Copper River area is hoping to ride the wave of political outrage over what has been lax oversight of the oil industry by federal agencies. The groups are especially concerned that an oil spill in the rugged Copper River drainage would be extremely hard to clean up and would devastate the rich salmon fishery there.

They're not the only ones pushing for more industry oversight. Sen. Mark Begich has gotten through legislation -- still at the committee stage -- that would create an Arctic Regional Citizens' Advisory Council to help watch over coastal North Slope and offshore oil and gas development. A Gulf Coast citizens' board was also included in that measure, and others could be in the works. The Prince William Sound Regional Citizens' Advisory Council has been hosting Outside groups interested in starting RCACs in the Gulf and other areas.

Alyeska has been in the congressional crosshairs in recent months, from both the U.S. House Energy Subcommittee on Oversight and Investigation, chaired by Rep. Bart Stupak of Michigan, and the House Transportation and Infrastructure Committee, chaired by Rep. James Oberstar of Minnesota. Although coming from different approaches, both are concerned about the safety of the trans-Alaska pipeline. Their concerns are based in large part on complaints from workers, changes in the way Alyeska staffs certain pipeline operations, and problems with BP's management of the consortium of oil companies that make up Alyeska.

Oberstar held a hearing in mid-July that in part looked at Alyeska's decision to transfer dozens of engineering positions involving pipeline integrity from Fairbanks to Anchorage, raising the question of whether the engineers could adequately oversee safety in the field from the company's mid-town office.

Alyeska President Kevin Hostler, a BP executive, abruptly announced he would be resigning this fall in the midst of an investigation by the Stupak committee into deep-seated employee concerns over safety and what appeared to be serious issues with Hostler's management style.

Fairbanks state Rep. David Guttenberg went to Washington, D.C. to testify before the Oberstar panel. He has been fielding complaints from pipeline workers and trying to get House leadership to hold its own hearings.

"Alyeska, I don't believe, is capable of having any credibility of doing an audit of itself," he said. "The fact that they're risking the safety of their employees and the pipeline is unforgiveable."

Alyeska spokeswoman Michelle Egan did not return a call for this story. But Alyeska officials testifying at the Oberstar hearing generally characterized pipeline integrity as solid and said the transfers of the employees were business decisions that had no bearing on their ability to ensure the pipeline is safe.

Sen. Lisa Murkowski met with Alyeska officials in late July and asked the company to do an audit that looked at specific issues, including valves, monitoring systems, leak detection systems, power supplies and storage capacities.