President's Message
David Wight, President and CEO

Alyeska Wins Environment Award

I am pleased to report that Alyeska Pipeline Service Company won the American Petroleum Institute’s (API) Large Operator Environmental Performance Award for the third year in a row.

Every year this award is given to the company with the best spill prevention and containment performance records. Winning it three years running shows Alyeska’s companywide commitment to operate the Trans Alaska Pipeline System (TAPS) in a safe and environmentally responsible manner. Our spill monitoring, recording and tracking standards and techniques exceed industry standards and we work hard to keep improving our safety and environmental performance.

API’s environmental performance award is based upon several factors including the number of spills per mile of pipeline, the volume of those spills, pending environmental enforcement actions and adverse impacts from pipeline releases on workers and members of the general public.

Alyeska’s total spill volume for 2004 was approximately 210 gallons, which consisted of diesel fuel, lube oil and hydraulic fluid primarily from fleet equipment and support operations. Of that, the cumulative volume of Alaska North Slope Crude oil was less than one gallon. For perspective, the company moved 14,374,487,442 gallons in 2004 (342 million barrels). In the case of every spill, the source was quickly identified and the site was cleaned up immediately.

The company achieved this environmental performance while maintaining a 99.42 percent pipeline reliability record in 2004, with an average throughput of 935,108 barrels per day.

API started its pipeline awards program in 2000 to recognize liquid pipeline companies that make the greatest strides in ensuring worker safety and outstanding environmental performance. To be eligible, companies must participate in API performance tracking programs and meet baseline measures of operational safety.