ANCHORAGE, AK -- JANUARY 15, 1998 -- Alyeska Pipeline Service Company reported today that rust from the Vapor Recovery System at the Valdez Marine Terminal was improperly disposed of at the Valdez landfill. Laboratory tests from five different filter cleanings between July and December 1997 indicate the levels of hydrocarbons in the filter rust exceed the Valdez landfill permit limits. The laboratory tests also indicate that rust collected from two of the five filter cleanings exceeded Federal Environmental Protection Agency (EPA) limits for benzene.

The disposal procedures were reviewed in July of 1997 and disposal at the Valdez landfill was stopped until laboratory tests could be completed to determine the average level of hydrocarbons and benzene remaining in the rust. The material was stored onsite until the laboratory tests were completed. Beginning in the early 1990s, the filter rust was disposed of at the Valdez landfill.

Alyeska estimates that less than 20,000 pounds of filter rust was disposed of at the City of Valdez landfill on a yearly basis. The total hydrocarbons in the filter rust is estimated to be less than 20 gallons of liquid petroleum per year.

The filter rust is currently being drummed and shipped to Federally permitted facilities in the Lower 48 for treatment and disposal. Alyeska has notified the EPA, the Alaska Department of Environmental Conservation (ADEC) and the City of Valdez, and has requested that representatives from each agency assist in the completion of an incident investigation into the matter, including a review of the history of disposal practices.

The Vapor Recovery System removes hydrocarbon vapors from the crude oil storage tanks. A set of filters is installed in the system to remove small particles of rust and grit from system gasses to protect the compressors that are a part of the vapor recovery system. The filters are removed on a routine basis and cleaned with water to remove the filtered particles. The particles, known as filter rust, are then collected for disposal.

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