Alaska Teams with US DOT Pipeline Safety Agency to Strengthen Oil and Gas Oversight

May 15, 2007, Juneau, Alaska - The State of Alaska and the Pipeline and Hazardous Materials Safety Administration (PHMSA) today announced an agreement to provide enhanced and coordinated oversight of oil and natural gas production and transportation facilities located within Alaska.

In a letter of intent signed yesterday, the State of Alaska and PHMSA agreed to join forces in developing a strategic plan to establish coordinated oversight of facilities and activities designed to transport and produce oil and natural gas, establish risk assessment procedures, coordinate inspections of oil and gas production and transportation facilities, share infrastructure integrity data, and coordinate public outreach programs.

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Currently, PHMSA shares common objectives in protecting and maintaining the Trans-Alaska Pipeline System with Alaska’s Department of Natural Resources, State Pipeline Coordinator’s Office and Department of Environmental Conservation within the Joint Pipeline Office.

“The economic well-being of our state, the protection of our pristine environment, and the safety of oil and gas workers depend on the uninterrupted flow of oil and natural gas on state lands,” said Governor Sarah Palin. “I am pleased that Alaska, via the newly created Petroleum Systems Integrity Office (PSIO), will be coordinating efforts and exchanging important systems integrity data with our federal partners to assure safe, continued operations.”

DOT Acting Deputy Secretary and PHMSA Administrator Thomas Barrett concurred. “Protecting the reliable and secure transportation of energy from Alaska is essential to the continued economic growth of our nation and meeting the President’s goal of energy independence,” said Administrator Barrett.

Recent significant events in Alaska, including pipeline failures on the North Slope, have highlighted the need for the state’s oversight agencies and PHMSA to implement a more comprehensive and effective “system of systems” approach, Barrett said.

As part of the agreement, Alaska’s PSIO and PHMSA will delineate clear jurisdictional roles and develop a strategic plan for the oversight of oil and gas production and transportation, including risk assessment, standards and inspections. In addition, the state and PHMSA will optimize communication flow for continued efficiency, particularly during emergencies.

PSIO’s Acting Coordinator, Jonne Slemons, explained, “The Petroleum Systems Integrity Office is committed to maximizing the safe and stable flow of oil and gas resources to market by ensuring oversight and maintenance of oil and gas equipment, facilities and infrastructure. Working with our federal partners is one of the most effective ways to accomplish this job.” Slemons continued, “Our integrated approach will identify, assess, and address potential risks to the oil and gas transportation infrastructure, thereby allowing us to prevent system failures before they occur.”

Source: Alaska Governor