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VMT: PWSRCAC reports both management, regulatory concerns
Kristen Nelson Petroleum News
The Prince William Sound Regional Citizens’ Advisory Council, formed following the Exxon Valdez oil spill, has issued a report expressing concern with both management and regulatory oversight at Alyeska Pipeline Service Co.’s Valdez Marine Terminal.
Alyeska operates the Trans-Alaska Pipeline System, including the oil pipeline and the Valdez Marine Terminal, VMT, on behalf of three owner companies: Harvest Alaska (an affiliate of Hilcorp), holds some 49.1% of ownership; ConocoPhillips Transportation Alaska, some 29.6%; and ExxonMobil Pipeline Co., some 21.3%.
Regulators include multiple state and federal agencies, with the U.S. Bureau of Land Management cited as the lead agency. Following the Exxon Valdez oil spill, the state and federal agencies were organized into the Joint Pipeline Office.
The council, hearing concerns from employees at the VMT, last year commissioned a report reviewing system integrity and safety culture at the VMT.
The report, released in mid-April, is by Billie Pirner Garde, who found that “the information reviewed supports a well-founded concern that the current state of VMT operations, maintenance, and management present a real risk of a serious accident or incident in the near future,” and said that recent Alyeska survey data found “a significant percentage of their workforce has agreed.”
Garde said safety culture starts at the top. Some past presidents increased safety and compliance but “the leadership of the company over the past several years has eroded Alyeska’s culture in a variety of ways,” she said. In contrast, Garde said Betsy Haines, Alyeska’s recent interim president, had “a deep understanding of the difficulty and importance of culture change, organizational stability, a solid technical understanding of the pipeline and VMT operational issues, and the importance of trust and respect with the workforce.”
Regulatory oversight Cost cutting is behind many of the issues, and the problem isn’t just within Alyeska.
Garde cited “a steady, on-going and continuing deterioration of oversight and enforcement capabilities in Prince William Sound,” with regulatory oversight at the VMT “inadequate to compensate for the reductions in resources and safety commitments at Alyeska.”
In an April 14 letter to Alaska’s congressional delegation, the PWSRCAC board recommended an audit by the General Accountability Office covering a number of areas:
*Identification of gaps in regulatory oversight created by recent changes within federal agency responsibilities;
*Determining if the improvement plan Alyeska submitted to Congress in 1994, and the updated 1997 plan, remain a commitment to Congress with expected performance;
*Doing a detailed review of Alyeska’s quality and audit departments, including the independence of those departments, their resources, effectiveness and reliability; and
*Considering recommending legislative action requiring agency coordination at the VMT.
The PWSRCAC board said it is also planning to ask the federal Occupational Safety and Health Administration to audit applicable VMT systems for compliance with process safety management.
And the board has recommendations for studies by Alyeska and the TAPS Owners:
*Do an independent assessment of the Alyeska safety management systems with a timeline for completion of necessary changes to ensure safe operations;
*Commission an independent audit of deferred maintenance at the VMT; and
*Provide mandatory training for supervisors and managers “on their responsibilities to promote a strong safety culture, uphold a compliance culture, and to not tolerate harassment, intimidation, retaliation, or discrimination.”
Alyeska Michelle Egan, Alyeska’s chief communications officer, provided a statement from the company on the report. She said Alyeska does not agree with everything in the report but is “reviewing it with an eye toward areas we can improve.”
She said Interim President Betsy Haines was provided a copy of the report in draft form and met with representatives of the PWSRCAC to learn more about the assessment.
“I want to thank PWSRCAC for the report regarding the Valdez Marine Terminal,” Haines said following the meeting. “Alyeska and PWSRCAC share a focus on doing what is best for the safety of our employees, the TAPS facilities, the environment and the community.” Haines said Alyeska was reviewing the report so it could address the issues it raised.
“We take it as an opportunity for us to improve and maintain safe and reliable operations.”
New president John Kurz was named president and CEO of Alyeska on April 10, and made a trip with Haines to the Valdez Marine Terminal and met with employees on April 13. He also met with PWSRCAC Executive Director Donna Schantz.
“I told our employees and Donna the same thing: I am committed to a safe environment at the VMT and across the TAPS facilities and we will continue to improve the operation. This input from PWSRCAC will help us get better as I’m sure we will learn areas where Alyeska can tighten our operational performance against our high standards. Further, I believe in an Open Work Environment where anyone can speak up with concerns, ideas and questions. We cannot have it any other way,” Kurz said.
- KRISTEN NELSON
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