Results of Preventative Maintenance at Berth 4

Alyeska conducted quarterly preventative maintenance checks of the dielectric flange on the crude and vapor arms for Berths 1, 3, 4 and 5 in Valdez. The vapor arms on Berth 4 failed this preventative maintenance task.  Specifically, a resistance reading of less than the regulatory required 1,000 ohms was observed.  The significance of a reading less than 1,000 ohms is that Alyeska could not insure electrical isolation between a vessel and the berth.  Alyeska personnel in Valdez immediately performed corrective maintenance and reestablished proper isolation readings.  Alyeska determined that the problem was the result of excessive moisture and ice accumulation on the flange.

In order to provide the operational assurance necessary at the terminal, Alyeska is changing its operating procedures to add an additional isolation test (ohmmeter resistance test) as part of the pre-arrival procedures for tankers’ prior to cargo transfer operations.  This testing is in addition to the Quarterly Preventative Maintenance checks, which will continue.

Further, as part of a review of its operations following a spark incident at the terminal last fall, Alyeska recently sent representatives on a trip to several other terminals on the West Coast to determine how they are assuring proper electrical isolation.  Based upon what Alyeska has observed at those locations and other ideas that have been generated by Alyeska’s operators and maintenance technicians, the company is considering additional operational changes at the terminal.

December Reliability                      100%.
2000 Reliability                              99.67%.
December Throughput:                   32,277,000 BBLS
December Daily Average:               1,041,000 MBPD
2000 Throughput:                           365,708,000 BBLS
2000 Daily Average:                       999,000 BPD

The pipeline reliability factor is the amount of time the pipeline is operating and available to transport North Slope Crude oil.  There were no prorations of production during December.

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