ALYESKA TERMINAL AIR RULES COST: $100 MILLION

June 25, 1990
Alaska's proposals to slash hydrocarbon emissions during tanker loading operations at Alyeska Pipeline Service Co.'s Valdez terminal could cost the petroleum industry more than $100 million. In addition, industry officials say, proposed emissions standards could create new environmental and safety hazards at the terminal. Meantime, Alyeska outlined summer repair and maintenance programs for the Trans-Alaska Pipeline System (TAPS) and Valdez terminal, budgeted at about $450 million in

Alaska's proposals to slash hydrocarbon emissions during tanker loading operations at Alyeska Pipeline Service Co.'s Valdez terminal could cost the petroleum industry more than $100 million.

In addition, industry officials say, proposed emissions standards could create new environmental and safety hazards at the terminal.

Meantime, Alyeska outlined summer repair and maintenance programs for the Trans-Alaska Pipeline System (TAPS) and Valdez terminal, budgeted at about $450 million in the busiest period for the company since start-up in 1977.

NEW REGULATIONS

Alaska's Department of Environmental Conservation has proposed regulations setting standards for recovery of tanker emissions at marine loading sites that have throughput of more than 5 million bbl/year.

ADEC wants the new regulations in place by November to take effect in 1992. In addition to Valdez, proposed rules as they stand now also would cover the Drift River terminal in Cook Inlet.

Under the new standards, after a specified date in 1992, vapor control systems are to be in place at affected terminals to capture volatile organic compound vapors during loading, including ballasting and deballasting, to cut overall emissions by 95 wt % from terminal/tanker operations.

ADEC devised the standard essentially by extrapolating the data from air emissions sampled from one tanker with atmospheric models set up by the U.S. Environmental Protection Agency.

In addition to requiring the vapor recovery systems, the new rules would require retrofits of all tankers calling at affected terminals with compatible vapor recovery equipment.

HIGH COSTS SEEN

Alyeska has Ralph M. Parsons Co. and Fluor Corp. under contract to study engineering solutions for vapor recovery systems. Those studies are to be completed by the end of summer.

Preliminary data, however, show that a vapor recovery station at Valdez alone would cost more than $100 million, Alyeska said.

In addition, it would cost at least $150,000-450,000/tanker, depending on design, to retrofit vessels for the vapor recovery systems-more than three times ADEC's early estimates, Alyeska said.

An earlier controversy over the role of North Slope natural gas liquids spiked in TAPS may be put to rest by the engineering studies.

Preliminary data suggest that highly volatile NGLs in TAPS do not contribute to the emissions problem.

"it seems to be more a case of temperatures during loading," an Alyeska official said.

OTHER PROBLEMS

Another major concern of Alyeska is the threat of a safety hazard involving the vapor recovery systems.

"There are a number of executives here that worry about what happens if a vapor recovery system fails," the Alyeska official said. "They are aware that a number of barges in the Lower 48 have exploded when vapor recovery systems have failed. And these are huge tankers."

The safety issue could be dealt with in U.S. Coast Guard tanker safety regulations that are in the final stages of preparation.

"We're anxious to see what the Coast Guard requires as a link between the tanker and the vapor recovery system," the Alyeska official said.

Alyeska and member companies hope to include more comprehensive air emissions data they are gathering for consideration by ADEC in formulating the new rules, in addition to the EPA screening methods.

They have sampled 64 tankers in an air circulation study that involves collecting meteorological and particulate information at five sites in the terminal area. Further, they have arranged for 40-50 Valdez residents to continuously wear air monitoring vests.

In addition, industry is concerned about the 1992 compliance date, which leaves a very tight deadline for permitting, design, construction, testing, and start-up of a vapor recovery system.

More meetings are planned the next 6 months to hammer out the final regulations. Alyeska is operating on a 6 month air quality permit from ADEC that began May 31.

Its basic terminal permit from ADEC expired in October 1989, and the company has been operating on a series of short term permits since then.

SUMMER MAINTENANCE/REPAIR

Alyeska's summer program calls for an average 1,600 Alyeska and contractor employees, compared with the normal winter base employment of about 550 total personnel at pump stations and the marine terminal.

Projects scheduled this year at Valdez terminal include improvements to the ballast water treatment system, gas dehydrator, incinerators, and replacement of various piping systems.

In addition, the Valdez programs include installation of air quality monitoring data stations, as well as oil spill protection equipment for five Prince William Sound hatcheries. The hatchery program includes setting anchors for boom deployment and delivery of spill containment materials to the five hatcheries.

Work at TAPS pump stations will center on redesigning piping systems to reduce internal corrosion. The most significant work will see installation of a bypass of Pump Station 3 in September to allow repair of station piping. The bypass is to be in place for about 1 month and used as a prototype for future bypasses at other pump stations.

Other pump station work calls for elevating a section of underground mainline pipe at Pump Station 3 to avoid damage from ground thaw and installation of thermal insulation systems at Pump Stations 1 and 5.

Alyeska's corrosion repair and maintenance program for the mainline pipe still is on schedule, with more than half of the 827 sites identified in 1989 investigated and/or repaired (OGJ, Apr. 30, p. 23).

Work on the remaining sites will continue through 1990. Additional mainline work includes repair of an insulation box at Atigun Pass.

The most labor intensive work in the summer program involved the June 12 shutdown of TAPS for 12-13 hr to inspect and replace valves, gaskets, and piping not normally accessible during pipeline operation (OGJ, June 1 8, Newsletter). During that time, Alyeska also repaired the fuel gas line system feeding natural gas to Pump Stations 1 through 4.

Alyeska expects summer 1991 field activities to reach this year's levels, mainly because of the $170 million project to replace 81/2 miles of pipe in the Atigun floodplain.

Copyright 1990 Oil & Gas Journal. All Rights Reserved.