ACCORD RESOLVES NORTH SLOPE CAUSEWAY ISSUE

Alaska's North Slope oil producers appear to have resolved a long simmering controversy over gravel causeways in the Beaufort Sea, thus paving the way for possible development of giant Point McIntyre oil field on the arctic slope. The major owners of Prudhoe Bay oil field and Endicott oil field have agreed in principle with the U.S. Army Corps of Engineers on modifications to the Prudhoe Bay West Dock and Endicott gravel causeways. The agreement calls for the companies to add 650 ft of

Dec. 10, 1990

3 min read

The major owners of Prudhoe Bay oil field and Endicott oil field have agreed in principle with the U.S. Army Corps of Engineers on modifications to the Prudhoe Bay West Dock and Endicott gravel causeways.

The agreement calls for the companies to add 650 ft of breaching to each of the two causeways as soon as practical at a cost of about $50 million.

The 5 mile Endicott causeway now has a total of 700 ft of breaches and the 2.5 mile West Dock causeway a 52 ft breach.

It was the second positive development in recent weeks related to industry's efforts to bring on stream giant fields hamstrung by environmental opposition.

A group led by Chevron Corp. last month agreed to a mid-1991 start-up and limited production from Point Arguello off California (OGJ, Dec. 3, p. 25).

PERMITTING SNAFUS

Concerns over the causeway's effects on the nearshore marine ecosystem have led to repeated permitting snafus along the North Slope and threatened to become an impediment to prospective development in the hugely prospective Arctic National Wildlife Refuge Coastal Plain.

ANWR Coastal Plain development likely would have called for installation of a major offloading dock causeway like that at Prudhoe's West Dock.

The gist of those concerns is that the causeways are thought to impede passage of marine life and affect fish migration and spawning because of their speculated long term effects of changes in water temperatures and salinity seen in nearshore areas.

Although years of industry monitoring programs have not identified adverse effects to fish, the agreement in principle speaks to those concerns, according to reports from the companies.

POINT MCINTYRE

The Army Corps of Engineers earlier had sought even more extensive breaching than that covered by the agreement.

The Corps' longstanding objections to gravel causeways in the Beaufort Sea threatened proposed development of Point McIntyre, a 300 million bbl-plus discovery ARCO Alaska Inc. and BP Exploration (Alaska) Inc. made in the shadow of Prudhoe Bay oil production facilities.

Exxon Corp. is the other partner in Point McIntyre development.

Although Point McIntyre partners contended there should not have been linkage of development plans, their plans for a West Dock development drillsite became ensnarled in permitting delays related to the causeway issue.

Army Corps Col. William Kakel said the agreement "paves the way for the corps to render permit decisions necessary to develop Point McIntyre field."