GAO report says Alaska pipeline regulation office should revitalize, update operations
An oil tanker sits at the dock in Valdez, where vessels pick up crude moved from the North Slope by the Trans Alaska Pipeline System. The federal-state Joint Pipeline Office coordinates regulation of the pipeline system, whick includes the Valdez Marine Terminal. There are concerns about possible oversight gaps, particularly at the marine terminal. (Photo provided by ConocoPhillips)
By Yereth Rosen
The multiagency group that coordinates oversight of the Trans Alaska Pipeline System needs an update to better operate in changing conditions, said a federal report released on Thursday.
The Joint Pipeline Office, a consortium of federal and state agencies with various regulatory duties, has scaled back its operations over the past several years, leading to possible gaps in oversight of the system that has delivered North Slope crude oil since 1977, said the report, issued by the Government Accountability Office, an independent nonpartisan agency that conducts audits and investigations for Congress.
To meet current conditions, the joint office should clarify its desired outcomes and resume what was once communication with the public about regulation, enforcement and other issues, the GAO report said.
“Redefining and documenting the intended outcomes of JPO’s oversight activities, including those aiming to inform the public of its oversight efforts, would enable JPO agencies to work toward shared goals and ensure accountability,” the report said. It is important to document the expectations, the report said. “Clarifying roles and responsibilities would enhance coordination among JPO agencies and help JPO identify any potential gaps in oversight.”
The GAO report was requested by U.S. Sen. Lisa Murkowski, R-Alaska.
The JPO, led by the U.S. Bureau of Land Management and the Alaska Department of Natural Resources, was established in 1990 in response to the prior year’s Exxon Valdez oil spill disaster. The purpose was to better regulate the Trans Alaska Pipeline System, which comprises the 800-mile pipeline that carries crude oil from an intake station at Prudhoe Bay and the Valdez Marine Terminal, where the oil is loaded onto tankers.
Other agencies participating in the JPO are the U.S. Coast Guard, the U.S. Pipeline and Hazardous Materials Safety Administration, the Environmental Protection Agency, the Alaska Department of Environmental Conservation, the Alaska Department of Fish and Game and the Alaska Department of Labor and Workforce Development.
Much has changed since the JPO’s startup, the GAO report points out.
North Slope oil production has dwindled. Pipeline throughput that averaged nearly 1.8 million barrels per day in 1990, close to the peak of 2 million barrels a day hit in 1988, is at an average daily flow of 482,495 barrels for the year to date, according to Alyeska Pipeline Service Co., the consortium that operates the system.
Lower oil volume affects Alyeska operations because the oil flowing through the line cools faster, moves slower and drops more solids, leading to more corrosion risks, the report noted.
Permafrost thaw, which undermines infrastructure through much of Alaska, has also affected the system’s integrity and prompted Alyeska to do some special maintenance and protective projects in slumping areas.
Alyeska in the early 2000s launched what it called a “strategic reconfiguration,” later renamed as “electrification and automation,” that increased automation, consolidated facilities — notably for pump stations along the 800-mile line and at the Valdez marine terminal — and relocated workers.
The agencies that are part of the JPO have also changed over time, with shifts in responsibilities and structure.
The JPO agencies continue to communicate with each other and continue to engage together in spill drills and other activities, the GAO report said. But since 2004, there has no longer been a common physical office, and JPO staffing has been reduced. The JPO no longer issues regular activity reports to the public; Its last Comprehensive Monitoring Program report was issued in 2007 and its last annual report in 2005, the GAO report said.
There are now concerns about oversight gaps, particularly at the Valdez terminal. The report cited one example of a troubling incident, the 2022 discovery of vapor leaks at 12 of the thermal’s 14 oil storage tanks. That event led to a report commissioned by the Prince William Sound Regional Citizens’ Advisory Council that criticized the safety culture at the terminal.
The GAO has issued other reports in the past about TAPS regulation and the JPO. A 1995 report lauded the joint office for improving oversight of the pipeline and terminal.
(Article republished courtesy of the Alaska Beacon under Creative Commons)