ANCHORAGE, AK – August 3, 2001 – Loading operations at Alyeska Pipeline Service Company's Berth 4 in Valdez resumed at 4:37 p.m. Thursday with 3 of the 4 cargo transfer arms operational. Berth 4 was shut down Tuesday evening, July 31 when loading arm 4 disconnected from the tanker at berth during deballasting operations.

An Investigation Team, led by Alyeska with participation from the shipper and the United States Coast Guard, has been studying the disconnection of the loading arm and assessing ways to prevent its recurrence and to reduce the consequences should a similar situation ever occur. This team has determined that a more secure loading arm connection can be achieved by use of larger size ship presentation flanges (used by the majority of tankers in the TAPS trade). Larger flanges provide more area for the attachment of the berth loading arm connector clamps. Alyeska berth personnel believe use of larger flanges should minimize the likelihood of a repeat occurrence. Alyeska has requested and the shippers have agreed to replace any smaller diameter flanges with larger size flanges.

The Investigation Team is also examining whether there was any mechanical problem and is reviewing mechanical practices and operational controls when connections are made between the berth and the tankers.

These findings and the action plan for returning Berth 4 to service was reviewed with appropriate agencies. A functional check out of the systems at Berth 4 was conducted satisfactorily and the United States Coast Guard gave authorization to resume transfer operations. Following the successful start-up of Berth 4, Alyeska's Incident Management Team "stood down". A plan to return the damaged loading arm to service is being developed.

North Slope producers have not been impacted by this incident and shipping delays have been minimal.