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ALYESKA REPORT
WEEK OF SEPTEMBER 22, 1999

Alyeska Releases Final Allegations Review

Alyeska Pipeline Service Company today released a comprehensive report on the allegations raised by anonymous whistleblowers in July. Little Harbor Consultants, retained by Alyeska Pipeline in 1998 to advise the company on creation of an open work environment, reviewed and investigated the allegations.

The key findings of the report are:

The allegations that executives were quashing the quality program and other company programs were unsubstantiated.

The Quality Program has not been consistently implemented on the Trans Alaska Pipeline System.

Harassment, intimidation, retaliation and discrimination (HIRD) exist in the organization and have not always been dealt with in a timely and effective manner. Efforts to remove HIRD issues have improved over the last year.

Significant progress has occurred in the Drawing Control System; areas of weakness in the program continue to exist.

The report contains a history of the changes since 1993, a summary of the allegations, and a commitment to action for the company.

When the allegations were received, Alyeska did an immediate review to determine if any allegations indicated an imminent threat to pipeline safety or integrity. It was determined that no imminent threat to pipeline safety or integrity was raised in the allegations. Bob Malone, President and CEO of Alyeska Pipeline, committed to a more in depth review of the allegations. This report is the final review of these allegations.

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