TAPS TO DRAW CLOSER GOVERNMENT SCRUTINY

The Bureau of Land Management is toughening its oversight of the Trans-Alaska Pipeline System (TAPS).

Jim Baca, BLM director, said, "There has been a long history of problems at the pipeline and numerous investigations which have failed to produce significant reform. The new administration is going to take responsibility to correct the problems and get people working together.

"We're going to work with all parties in a cooperative manner, but make no mistake about it, I intend to get to the bottom of these problems and resolve them."

Baca said BLM will double its federal inspectors for the pipeline to 10, requiring TAPS operator Alyeska Pipeline Service Co. to pay the bill. A federal task force is examining the adequacy of pipeline operations and will recommend legislation to clarify and strengthen TAPS management.

BLM's announcement came during a House energy and commerce subcommittee inquiry into allegations of slipshod pipeline operations. Congress has oversight authority over the pipeline because construction of the line was authorized by a federal law.

TAPS PROBLEMS

Baca outlined a few major maintenance problems with TAPS.

He said the biggest one is weeping wires at the Valdez, Alas., terminal.

"These are aging wires that are weeping impregnated mineral oil that was meant to lengthen the life of the wire. If allowed to continue, this condition arguably may pose a fire and or safety hazard.

"The same weeping wire condition exists at several pump stations, specifically stations 6, 8, and 10. There also have been some fugitive hydrogen sulfide and nitrous oxide emissions reported that resulted from 'topping' and related operations at the stations.

"Finally, there has been an alleged discrepancy-or an unexplained difference-in readings between the meter at the Valdez terminal and the meter at Prudhoe Bay."

Alyeska said the weeping wire problem will cost about $10 million and more than a year to repair.

ALLEGATIONS RAISED

John Dingell (D-Mich.), subcommittee chairman, called the hearing to air complaints by four former Alyeska inspectors.

He accused Alyeska of attempting to interfere with the constitutional rights of employees to provide information to Congress. "It is all the more outrageous because the issues that the whistleblowers have been trying to bring to light involve crucial questions of health and safety.

"Alyeska inspectors have been finding significant mechanical, electrical, and other deficiencies on the pipeline, at the pump stations, and at the terminal. They have reported these deficiencies as required.

"Over the past few years, no less than five quality control inspectors have brought suit against the company.

"They allege that by bringing attention to these problems and pointing out the unsafe operation of the pipeline, they have been harassed, intimidated, and in some cases, fired from their jobs."

Dingell said his subcommittee investigators, not federal regulators, disclosed the electrical cable problem, demonstrating that federal inspections have been inadequate,

He said, "One wonders how well Alyeska's closet is stocked with skeletons."

Rep. George Miller (D-Calif.), urged Alyeska to "stop trying to shoot the messengers-whether environmentalists, employees, or members of Congress-and get down to the business of fixing problems and meeting public obligations."

Four former inspectors testified Alyeska harassed them, in some cases fired them, then blacklisted them after they pressed for repairs.

They said Alyeska's quality control program is a sham, and a pipeline failure with resulting environmental damage is imminent.

Joe Tracanna said he discovered the problem of Sweeping electrical lines but was ignored. "The most significant cause of the problems at the terminal and along the pipeline resulted from the complete lack of understanding or support for inspectors. Identified problems were usually accepted 'as is.'"

Glen Plumlee said he asked for copies of Alyeska's quality assurance and control manuals and met heavy resistance. "Apparently, the inspectors had been working without written criteria and by the seat of their pants for years."

He said after he found a quality assurance manual, it showed procedures were not being followed, but his superiors ignored his objections.

James Schooley complained, "There was no 'paper trail' that would document whether the inspection work was being done, or if it was done the manner or method by which it was accomplished."

Richard Green said Alyeska engineers undertook large projects without benefit of specifications, drawings, or welding procedures.

All four filed complaints with the Labor Department, which ordered Green reinstated. Alyeska reached a private settlement with the other three before the Labor Department heard their cases.

ALYESKA'S REACTIONS

David Pritchard, who has been Alyeska president since Apr. 15, defended the pipeline's structural integrity, quality control, environmental compliance, and worker safety.

He said, "I have the owners' support to fix these problems, which have been well documented. We will do better in the future."

But he would not say if current employees would be reprimanded for covering up quality and control problems.

Pritchard said, "The size and technical complexity of TAPS, the demanding environment in which it operates, the myriad complicated laws and regulations that govern its operation, and the high degree of national attention it continually receives all combine to make this an enterprise faced with many challenges."

He admitted there have been too many occasions on which internal communications have not been sufficiently open. But regular employee meetings, electronic communications systems, an open management style, and a corporate ombudsman program are helping.

He said Alyeska's quality assurance and control system has failed to function properly at times.

Alyeska hired Booz Allen & Hamilton Inc. "to help us streamline our major business process, including pipeline and terminal operations, maintenance, and materials handling," Pritchard said.

"This review will reduce layers of bureaucracy, identify clear accountability for responsibility and decision making, and facilitate upward employee communications."

He said E.I. DuPont De Nemours & Co. has been retained to help Alyeska with safety training.

And he said Fluor Daniel Inc. has been contracted to identify and supervise repairs of electrical power code violations and other problems associated with the 15 power distribution centers at Valdez.

Pritchard said inspection of large crude oil storage tanks at Valdez has been stepped up and this year, for the first time, Alyeska found evidence of possible internal corrosion.