# ALYESKA PIPELINE SERVICE CO — Notice of Amendment

- **operation:** document
- **citation:** CPF 520025016
- **title:** ALYESKA PIPELINE SERVICE CO — Notice of Amendment
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2002-05-07
- **effective on:** Not available
- **summary:** CLOSED notice of amendment citing 195.452(b)(2).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-520025016.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-520025016.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-520025016
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/520025016
**body:**

Notice of Amendment involving ALYESKA PIPELINE SERVICE CO. PHMSA's enforcement data identifies the cited regulation as 195.452(b)(2). The case was opened on 2002-05-07 and is reported as closed as of 2006-05-02. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

520025016_order directing amendment_03112004.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520025016/520025016_order%20directing%20amendment_03112004.pdf

520025016_order directing amendment_03112004_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520025016/520025016_order%20directing%20amendment_03112004_text.pdf

520025016_order directing amendment_03112004_text.pdf

U 5 Department
of Transportation
Research and
Special Programs
Administration
400 Seventh St S W
Washington D C 20590
MAR 1 1 m4
Mr. Robert Shoaf
Uice President
Regulatory Affairs
900 East Benson Boulevard
Alyeska Pipeline Service Company
Anchorage, AK 99508
Re: CPF No. 5-2002-5016
Dear Mr. Shoaf:
Enclosed is the Order Directing Amendment issued by the Associate Administrator for
Pipeline Safety in the above-referenced case. It makes a finding of inadequate procedures and
requires that you amend your integrity management program procedures. When the terms of the
Order are completed, as determined by the Director, Western Region, OPS, this enforcement action
will be closed. Your receipt of the Order Directing Amendment constitutes service of that document
under 49 C. F. R. $ 190. 5.
Sincerely,
James Reynolds
Pipeline Compliance Registry
Office of Pipeline Safety
Enclosure
cc: Sheila Doody Bishop
Attorney
P. O. Box 60469
Fairbanks, Alaska 99706
CERTIFIED MAIL - RETURN RECEIPT RE UESTED



DEPARTMENT OF TRANSPORTATION
RESEARCH AND SPECIAL PROGRAMS ADMINISTRATION
WASHINGTON, DC 20590
In the Matter of )
Alyeska Pipeline Service Company, )
Respondent
)
)
)
)
CPF No. 5-2002-5016
FINAL ORDER
On April 8-9, 2002, pursuant to 49 U. S. C. $ 60117, representatives of the Western Region, Office
of Pipeline Safety (OPS), inspected Alyeska Pipeline Service Company's integrity management
program at Respondent's facilities in Fairbanks, Alaska. As a result of the inspection, the Western
Regional Director, OPS, issued to Respondent by letter dated May 7, 2002, a Notice of Amendment
(NOA). The NOA alleged inadequacies in Respondent's integrity management program and
proposed to require amendment of Respondent's procedures to comply with the requirements of
49 C. F. R. $ 195. 452(b).
Respondent acknowledged receipt of the NOA by letter dated May 30, 2002 and requested an
extension to August 15, 2002 to submit its response. The Western Region granted a 60-day
extension on June 18, 2002. Respondent requested an additional 60-day extension on August 6,
2002, which OPS granted on August 13, 2002. On October 9, 2002, Respondent submitted its
response to the NOA (Response). Respondent contested the allegations, submitted information to
address the allegations and reserved the right to a hearing if OPS did not withdraw the allegations
based on the submitted information. Respondent requested a hearing on January 6, 2003. An
informal hearing was held in the Western Region, OPS, on April 8, 2003. After the hearing,
Respondent submitted a Closing Response dated June 6, 2003.
AMENDMENT OF PROCEDURES
The NOA alleged three inadequacies in Respondent's integrity management segment identification
procedures:
the spill volume Respondent used to calculate the 1/2-mile buffer zone for overland
spill migration and transport of spilled oil by streams and rivers to high consequence
areas was not adequate to identify areas that might be affected by larger spills.
the results of the revised spill volume calculation should be incorporated into
Respondent's stream transport analysis and overland spill modeling.



situations where the analytical model predicts transport distances longer than an
assumed buffer zone should be considered.
Respondent maintained that the spill volumes it used in its stream transport analysis and overland
spill modeling were extremely conservative. Respondent explained that it considered a broad
spectrum of spill sizes, scenarios and consequences and that the buffer zone it used for overland spill
migration and transport of spilled oil by streams and rivers to high consequence areas is greater than
95/o of all estimated spill volumes. Respondent contended that its method was supported by a
reliable engineering evaluation and provides an equivalent level of protection to the public and the
environment.
Respondent further maintained that since the spill volumes it used were so conservative, it did not
need to modify its procedures. Respondent acknowledged that the aggregation of oil spilled on water
may extend beyond the ten-mile buffer zone in some cases and agreed to amend its procedures to
extend the buffer zone where calculations show greater distances. In its June 2003 Closing
Statement, Respondent included a copy of its amended procedures that extend the buffer zone.
I do not accept Respondent's arguments that its procedures for identifying segments that could affect
a high consequence area are adequate. Respondent's methodology was based on a leak occurring
&om a one-inch hole and a spill volume of 27, 000 bbls. I do not consider this methodology as
providing adequate protection to high consequence areas. Although Respondent's procedures have
considered historical data, Respondent needs to consider if larger spills have the potential to affect
the high consequence areas. Respondent may not have experienced a larger leak in the past, but it
needs to do so for its segment identification procedures to ensure that these areas are protected.
Respondent's methodology must, at minimum, consider high consequence areas that could be
affected by leaks resulting &om larger holes and larger spill volumes.
Respondent agreed to amend its integrity management program procedures to extend the buffer zone
where calculations show greater water transport than the 10-mile buffer zone. Although Respondent
amended its procedures, further amendment may be necessary based on the revised spill volume
calculations and incorporation of any revised figures into the stream transport analysis and overland
spill modeling.
Accordingly, I find that Respondent's integrity management program procedures are inadequate to
ensure safe operation of its pipeline system. Pursuant to 49 U. S. C. $ 60108(a) and 49 C. F. R.
( 190. 237, Respondent is ordered to make the following changes to its integrity management
program procedures. Respondent must-
l. Amend its procedures to consider a broader range of failure sizes for identifying pipeline
segments that could affect high consequence areas.
2 Amend its procedures to incorporate the results of the revised spill volume calculation into
its stream transport analysis and its overland spill modeling.
3. Amend its procedures extending the buffer zone for water transport if the amendments in
¹ 1 and ¹ 2 above necessitate further amendment.



4. Submit the amended procedures to the Regional Director, Western Region, OPS within 30
days following receipt of the Order Directing Amendment.
The Regional Director may extend the period for complying with the required items if the
Respondent requests an extension and adequately justifies the reasons for the extension.
The terms and conditions of this Order Directing Amendment are effective upon receipt.
Failure to comply with this Order may result in the assessment of civil penalties of up to $100, 000
per violation per day, or in the referral of the case for judicial enforcement.
MAR ] I 2004
Date Issued
S cey Gerard
ssociate Administrator
for Pipeline Safety
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