ANCHORAGE, AK -- March 12, 1997 -- The TAPS Marine Shippers (ARCO Marine, Inc., BP Oil Shipping Company, SeaRiver Maritime, Inc., Tesoro Alaska Petroleum Company, and Chevron Shipping Company) and Alyeska Pipeline Service Company (APSC) are announcing plans to construct two new powerful tractor tugs as replacements for existing tugs. The new tugs will fulfill compliance conditions set by the Department of Environmental Conservation (DEC) in its approval of the TAPS Marine Shippers' Prince William Sound Tanker Contingency Plans.

A precondition for beginning the construction process for the new tractor tugs is determination by DEC that the new tug design meets the State's newly established Best Available Technology standard. When DEC makes its determination, APSC will begin the acquisition process for the tugs. Delivery dates for the new tractor tugs will be a high priority.

The Prince William Sound (PWS) tanker transportation system is recognized as world class. However, APSC and the TAPS Marine Shippers, along with other Prince William Sound stakeholders, continually examine ways to improve the system. These include recent major studies of the PWS tanker transportation system, several ongoing full scale tug trials, and a review of ship escort operations in North America and in Europe. Each of these projects has involved discussion or participation by the U.S. Coast Guard, DEC, and the Prince William Sound Regional Citizens' Advisory Council.

In addition to the plan to construct two new tugs, APSC has also chartered a high horsepower tug GULF SERVICE for deployment at Cape Hinchinbrook. The GULF SERVICE is expected to arrive for service in PWS on or about April 10, 1997.

Sea trials are also planned for Spring 1997 to further refine escort operations in the Valdez Narrows and Valdez Arm. These trials will incorporate lessons learned from recently conducted full scale tests.

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