ANCHORAGE, AK -- September 23, 1996 -- Alyeska Pipeline Service Company reported today that four pin-hole leaks were discovered on the Vapor Recovery System piping at the Valdez Marine Terminal this weekend and have been repaired. The leaks were in the inert vapor pipe going to the East Tank Farm. Following established procedures and Alyeska’s Quality Program, the system pressure was lowered, affected piping was isolated and maintenance personnel repaired the leaks. Crude storage operations were transferred to the West Tank Farm while repairs were made thus avoiding any venting of vapors while the repairs were made. There was no impact to pipeline throughput or tanker loading as a result of these repairs.

The segment of pipe that contained the small leaks is slated for replacement in mid-October as part of a two-year piping replacement schedule to upgrade the Vapor Recovery System carbon steel piping with more corrosion-resistant stainless steel. Approximately 3,600 feet of pipe were replaced on high pressure and low pressure lines throughout the Vapor Recovery System during an August shutdown of the system. Approximately 1,100 more feet of pipe will be replaced during the second shutdown in October. The Vapor Recovery pipe replacement work will be completed in 1997.

The Vapor Recovery System’s inert vapor supply piping normally operates at 10 psi above atmospheric pressure, about the same pressure as a typical household water system. The vapor return piping runs at a slight vacuum, which is less than a common household vacuum cleaner. The Vapor Recovery System is designed to ensure that vapors from the Terminal’s 18 crude storage tanks are not vented to the atmosphere when oil flows into the tank, and to keep oxygen from being drawn into the tanks during tanker loading.

The Joint Pipeline Office has been notified of the incident.

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