SSttaattee PPiippeelliinnee CCoooorrddiinnaattoorr’’ss OOffffiiccee Annual Report Fiscal Year 2009 This page is intentionally blank. Executive Summary The Joint Pipeline Office is an intergovernmental organization dedicated to overseeing the safe and reliable transportation of petroleum and natural gas products to market while promoting the protection of public health and safety and the environment. The State Pipeline Coordinator’s Office is an agency within the Alaska Department of Natural Resources that is co-located in the Joint Pipeline Office. Pipeline right-of-way leases that are issued by the State of Alaska under Alaska Statute 38.35 fall under the jurisdiction of the State Pipeline Coordinator and are administered by the State Pipeline Coordinator’s Office. The fiscal year 2009 State Pipeline Coordinator’s Office Annual Report describes the status of jurisdictional pipeline right-of-way leases. This report integrates information from all State Pipeline Coordinator’s Office activities and summarizes the prior calendar year's construction, operations, and maintenance activities on jurisdictional pipeline rights-of-way. The sections of this report include an overview of each jurisdictional pipeline, a summary of the annual reports submitted by the lessees, and a description of SPCO oversight programs and SPCO activities during the fiscal year 2009. This report does not provide a comprehensive record of all activities that are undertaken as part of the lessee’s pipeline systems management; rather, this report highlights certain information and activities in order to demonstrate the implementation of SPCO lease oversight. The pipeline ROW leases for SPCO jurisdictional pipelines require that the lessees submit annual reports compiled for the previously concluded calendar year. The 2009 fiscal year began July 1, 2008 and ended June 30, 2009, and therefore this report includes information from the 2008 calendar year's construction, operations, and maintenance activities on the ROW leases. The FY06, FY07 and FY08 annual reports are available at the JPO website http://www.jpo.doi.gov/Publications/publications.htm This report is intended for use by the public, government agencies, pipeline lessees, and other interested parties. Contact Information Alaska Department of Natural Resources State Pipeline Coordinator's Office 411 West 4th Avenue, Suite 2 Anchorage, Alaska 99501 (907) 257-1300 This page is intentionally blank. TABLE OF CONTENTS 1.0 INTRODUCTION 1 1.1 Federal/State Joint Pipeline Office (JPO) 1 1.2 State Pipeline Coordinator’s Office (SPCO) 2 1.2.1 Engineering Section 3 1.2.2 Lease Compliance Section 4 1.2.3 Right-of-Way and Permits Section 4 1.2.4 Administration Section 5 1.2.5 Public Information Officer 6 1.3 SPCO Liaison/State Agency Representatives 7 1.3.1 Alaska Department of Environmental Conservation (DEC) 7 1.3.2 Alaska Department of Labor and Workforce Development (DOLWD) 8 1.3.3 Alaska Department of Natural Resources - Division of Coastal and Ocean Management (DNR/DCOM) 8 1.3.4 Alaska Department of Fish & Game (ADF&G) 9 1.3.5 Alaska Department of Public Safety, State Fire Marshal’s Office (SFMO) 9 1.4 SPCO Jurisdictional Pipelines 10 2.0 STATEWIDE PIPELINES 13 2.1 Trans-Alaska Pipeline System (TAPS) 13 2.1.1 Right-of-Way Lease and Pipeline System Overview 13 2.1.2 TAPS Annual Reports Overview 16 2.1.2.1 APSC Annual Report – Mainline Aboveground Support System and Bridges 16 2.1.2.2 APSC Annual Report– Rivers, Floodplains & Glacier Monitoring 20 2.1.2.3 APSC Annual Report – Tank Monitoring 24 2.1.2.4 APSC Annual Report - Right-of-Way and Facilities Civil Monitoring 25 2.1.2.5 APSC Annual Report – Pipeline and VMT Facilities Corrosion Monitoring 27 2.1.2.6 APSC Annual Report – Mainline Integrity Monitoring 28 2.1.2.7 APSC Annual Report – Fuel Gas Line (FGL) 32 2.1.3 Other APSC Reporting 33 2.1.3.1 Valdez Marine Terminal 33 2.1.3.2 Significant Unplanned Event – January 15, 2009 33 2.1.4 SPCO TAPS Related Activities 35 2.1.4.1 SPCO Engineering Section 35 2.1.4.2 SPCO Compliance Section 46 2.1.4.3 SPCO Right-of-Way and Permits Section 49 2.1.4.4 Alaska Department of Labor and Workforce Development 51 2.1.4.5 State Fire Marshal’s Office - Inspections & Reviews 53 2.1.4.6 Alaska Department of Environmental Conservation 55 2.1.4.7 Alaska Department of Fish & Game 63 2.2 Trans-Alaska Gas System (TAGS) 71 2.2.1 Trans-Alaska Gas System (TAGS) - Conditional Lease Closure 71 3.0 SOUTHCENTRAL PIPELINES 73 3.1 Kenai Kachemak Pipeline System 75 3.1.1 Right-of-Way Lease and Pipeline System Overview 75 3.1.2 Lessee’s Annual Report 76 3.1.3 Oversight Activities of the State Pipeline Coordinator’s Office 76 3.2 Nikiski Alaska Pipeline 79 3.2.1 Right-of-Way Lease and Pipeline System Overview 79 3.2.2 Annual Report 80 3.2.3 Oversight Activities of the State Pipeline Coordinator’s Office 83 3.2.4 State Fire Marshal’s Office 84 4.0 NORTH SLOPE PIPELINES 85 4.1 ConocoPhillips Alaska Operated Pipelines 87 4.1.1 Alpine Pipelines 91 4.1.1.1 Right-of-Way Lease and Pipeline System Overview 91 4.1.1.2 Lessee’s Annual Report 92 4.1.1.3 Oversight Activities of the State Pipeline Coordinator’s Office 96 4.1.1.4 State Fire Marshall’s Office 98 4.1.2 Kuparuk, Kuparuk Extension, and Oliktok Pipelines 99 4.1.2.1 Right of Way Lease and Pipeline System Overview 99 4.1.2.2 Lessee’s Annual Report 101 4.1.2.3 Oversight Activities of the State Pipeline Coordinator’s Office 105 4.1.2.4 State Fire Marshal’s Office 111 4.2 BP Transportation (Alaska), Inc. (BPTA) 113 4.2.1 Badami Sales Oil and Utility Pipelines 117 4.2.1.1 Right-of-Way Lease and Pipeline System Overview 117 4.2.1.2 Annual Report 118 4.2.1.3 Oversight Activities of the State Pipeline Coordinator’s Office 122 4.2.1.4 State Fire Marshall’s Office 126 4.2.2 Endicott Pipelines 127 4.2.2.1 Right-of-Way Lease and Pipeline System Overview 127 4.2.2.2 Annual Report 128 4.2.2.3 Oversight Activities of the State Pipeline Coordinator’s Office 132 4.2.3 Milne Point Pipelines 135 4.2.3.1 Right-of-Way Lease and Pipeline System Overview 135 4.2.3.2 Annual Report 136 4.2.3.3 Oversight Activities of the State Pipeline Coordinator’s Office 140 4.2.3.4 State Fire Marshall’s Office 141 4.2.4 Northstar Pipelines 143 4.2.4.1 Right-of-Way Lease and Pipeline System Overview 143 4.2.4.2 Annual Report 144 4.1.1.1 4.2.4.3 Oversight Activities of the State Pipeline Coordinator’s Office 150 4.2.4.4 State Fire Marshal’s Office 151 4.3 Nuiqsut Natural Gas Pipeline 153 4.3.1 Right-of-Way Lease and Pipeline System Overview 153 4.3.2 Annual Report 154 4.3.3 Oversight Activities of the State Pipeline Coordinator’s Office 155 5.0 THE CLIMATE CHANGE TECHNICAL WORKING GROUP 157 6.0 OUTLOOK FOR FISCAL YEAR 2010 159 7.0 APPENDICES A-1 Appendix A - FY09 Annual Report Major Source Documents A-1 Appendix B – SPCO Staff Organizational Chart A-5 Appendix C – Joint Pipeline Office, (draft) Organizational Chart A-6 Appendix D - Authorizations, Rights-of-Way, and Permits Issued, by Quarter A-7 Appendix E – Physical Characteristics of SPCO Jurisdictional Pipelines A-11 Appendix F – Lease Required Contact Information A-12 Appendix G – Acreage, Survey, and Lease Information A-14 Appendix H – Pipeline Right-of-Way Lease Appraisal Information A-15 Appendix I – SPCO Surveillance Reports Issued in Fiscal Year 2009 A-17 Appendix J – SPCO Annual Reporting Requirements for Lessees A-27 Appendix K – Throughput for SPCO Jurisdictional Pipelines A-28 Appendix L – Sources of More Information on the Internet A-29 List of Figures Figure 1. SPCO FY09 Budget Expenditures - $3,814,688............................................................................. 5 Figure 2. SPCO General Fund Revenues: Collected vs. Expended............................................................... 6 Figure 3. North of Fairbanks, a section of TAPS is surrounded by fireweed. ............................................. 13 Figure 4. The TAPS Tank Farm at the Valdez Marine Terminal................................................................. 14 Figure 5. An example of a VSM found at TAPS PS 3................................................................................... 17 Figure 6. Heat Pipe and radiator at Squirrel Creek.................................................................................... 19 Figure 7. The TAPS as it crosses the Gulkana River on a pipeline bridge.................................................. 20 Figure 8. Phelan Creek, September 11, 2008. ............................................................................................. 21 Figure 9. October 2006 floods -- Richardson Highway in Keystone Canyon.............................................. 22 Figure 10. Oskar’s Eddy in 2000, prior to the remediation efforts of APSC............................................... 23 Figure 11. Oskar’s Eddy in 2001, after remediation efforts by APSC......................................................... 24 Figure 12. A close-up look at anomalies in the new pipe segment at PS 2.................................................. 29 Figure 13. The RGV 72 replacement valve.................................................................................................. 30 Figure 14 FGL compressor skid located at PS 1......................................................................................... 32 Figure 15. Work crews during the June shutdown at PS 3. ......................................................................... 39 Figure 16. The pig launcher at PS 8...........................................................................................................