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WEEK OF NOVEMBER 6, 2000 

Berth Work in Valdez Continues

Work continues to bring two of the four Valdez crude oil loading berths back into full operation.  Currently Berths 1 and 5 are fully operational.  Berth 3 is expected to be available for crude loading by mid-November with deballasting anticipated by early December.

The current plan for Berth 4 is to get it fully operational by the end of December.  It is currently available for full deballasting.  Berth 4 was taken out of service in August for a major maintenance overhaul designed to create a 10 year maintenance life-cycle.  This included the installation of new crude oil loading arms and a design change for the flow control valves from 24” to 16 ”.  The expectation for the new flow control valves was an improvement to the current system.  The result was cavitation and vibration during the restart of the loading arms.  Alyeska placed the berth into restricted use status to work out a solution to this issue.  The interim plan is to replace the new 16” valves with the original 24” valves by the end of December to regain crude loading capabilities at the berth while a long term solution is worked out. Alyeska expects to perform similar maintenance work on Berth 5 next year. 

Including the berth work, Alyeska has identified several major projects for 2001:  clean and add cathodic protection for two crude oil holding tanks; clean and raise Ballast Water Treatment Tank 92; rebuild a vapor compressor; work on the incinerator waste gas piping and the fire system at the terminal.  Senior Alyeska management conducted a community briefing in Valdez on Wednesday, November 8th to share the status of the berth work, the recent near miss issues, and Alyeska’s 2001 work plan with interested residents.

Alyeska has operated without any impact to the West Coast energy supply since the repair work began in Valdez.

Alyeska Announces Minor Organizational Changes

Alyeska recently made some changes in the overall organization of the company to help operate the pipeline more efficiently.  Alyeska has divided the asset management of the pipeline into a northern and southern asset structure.  When Alyeska started operating the Trans Alaska pipeline in 1977, there were 12 pump stations or “assets” that were spread along the 800 miles of pipe.  These pump stations, used to help move the oil from Prudhoe Bay to Valdez, each had their own asset manager.  Since that time, Alyeska has reduced the number of operating pump stations to seven and most recently reduced the number of asset managers to two.

Rich Skvarch, currently Pump Station 1 Asset Manager, is now the Northern Pipeline Asset Manager and Jim Giles, currently Asset Manager for Pump Stations 7 through 10, is now the  Southern Pipeline Asset Manager reporting.  Skvarch will have accountability for Pump Stations 1 through 4 and Giles will have accountability for Pump Stations 5 through 12.

Asset managers displaced due to the reorganization have been placed in other management positions within Alyeska.

Pipeline Reliability for October 2000

October Reliability         99.20%.
2000 Reliability              99.61%.
October Throughput       30,908,000 BBLS
October Daily Average:  997,000 BPD
2000 Throughput:         
  303,025,000 BBLS
2000 Daily Average:       994,000 BPD

The pipeline reliability factor is the amount of time the pipeline is operating and available to transport North Slope Crude oil.  There was one (1) production proration during October 10/07/00 - Planned line-wide slow down for maintenance.  250,053 Barrels deferred.

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Alyeska Pipeline Service Company - P.O. Box 196660, Anchorage, AK, 99519-6660
(907) 787-8700; alyeskamail@alyeska-pipeline.com
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