U.S. Department of Transportation
Pipeline and Hazardous Materials Safety Administration
Office of Public Affairs
Washington, D.C.
www.dot.gov/affairs/briefing.htm

News

PHMSA 04-07
Tuesday, May 15, 2007
Contact: James Wiggins / Patricia Klinger
202-366-4831

US DOT Pipeline Safety Agency Teams With Alaska To Strengthen Oil and Gas Oversight

The Pipeline and Hazardous Materials Safety Administration (PHMSA) and the State of Alaska today announced an agreement to provide stronger oversight over oil and natural gas production and transportation facilities located within the State's borders.

In a letter of intent signed yesterday, the State of Alaska Department of Natural Resources agreed to partner with PHMSA to enhance the protection of public safety, the environment, and the reliability of energy supply through more effective coordination of oversight of oil and gas production and transportation. The agreement, the first of its kind in Alaska, will close gaps in inspection coverage between Alaska production and transmission systems, improve risk assessment and oversight of unique and aging infrastructure, advance development of design and construction standards for future arctic pipelines, and increase timely data exchange about arctic maintenance and corrosion management.

"Protecting safe and reliable transport of energy from Alaska is essential to continuing economic growth and meeting the nation's goal of energy independence," said DOT Acting Deputy Secretary and PHMSA Administrator Thomas Barrett. "This partnership will help us to identify, assess, and address potential risks to the oil and gas transportation infrastructure – allowing us to prevent system failures before they occur."

PHMSA has jurisdiction over oil and gas transmission pipelines in Alaska, including approximately 200 miles of pipelines on Alaska's North Slope and the 800-mile Trans-Alaska Pipeline System, which is jointly shared with the Alaska's Department of Natural Resources and the Department of Environmental Quality.

Recent events in Alaska, including pipeline failures on the North Slope, have highlighted the need for the State's oversight agencies and PHMSA to implement more comprehensive and effective oversight, Barrett stated.

"The Department remains committed to ensuring America's pipelines are capable of safely operating at full service to deliver vital energy products," said Barrett. "Working with our State partners is one of the best ways to get the job done."

There are over 4,600 miles of pipelines in Alaska, delivering about 10 percent of America's energy products to the lower 48 states.

-END-

Administrator
U.S. Department of Transportation
Pipeline and Hazardous Materials Safety Administration
400 Seventh St. S.W.
Washington, D.C. 20590

May 14, 2007

Thomas E. Irwin
Commissioner, Alaska Department of Natural Resources
550 W. 7th Ave, Suite 1400
Anchorage, AK 99591

The Pipeline and Hazardous Materials Safety Administration, United States Department of Transportation ("PHMSA") and the Alaska Department of Natural Resources ("Alaska") have agreed to coordinate and cooperate in the regulation and oversight of oil and gas production and transportation in the state of Alaska, in accordance with the objectives outlined in this letter of intent.

Last year's pipeline failures on the North Slope of Alaska have highlighted the parties' common interest in assuring the safely, uninterrupted operation, maintenance, integrity, and reliability of Alaska's oil and gas infrastructure. PHMSA administers a national program of safety and environmental protection in natural gas and hazardous liquid pipeline transportation. PHMSA has jurisdiction over all oil and gas transmission pipelines in Alaska, including approximately 200 miles of pipelines on Alaska's North Slope and the 800-mile Trans-Alaska Pipeline System. Under Title 38 of the Alaska Statutes, the state of Alaska has jurisdiction over oil and gas infrastructure on state lands. By Administrative Order issued April 18, 2007, Alaska Governor Sarah Palin established the Petroleum Systems Integrity Office to maximize 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, and to improve coordination of the state's permitting, oversight,and compliance functions with other state and federal entities.

PHMSA and Alaska recognize the critical importance to Alaska and the nation that oil and gas exploration, production and transportation facilities be designed, constructed, operated, and maintained in a safe, environmentally protective manner, as well as to minimize the economic impacts of interrupted oil and gas production. Acknowledging these needs, PHMSA and Alaska will work together and coordinate their respective duties and activities relating to uninterrupted oil and gas production and the protection of public safety and the environment. Therefore, PHMSA and Alaska have agreed to cooperate in advancing the following program elements:

• Delineating jurisdictional authorities and clarifying roles and responsibilities for PHMSA and Alaska agencies;
• Clarifying infrastructure definitions; Establishing consistent risk assessment procedures;
• Developing a strategic plan to improve coordinated oversight of facilities and activities designed to transport and produce oil and natural gas;
• Coordinating the development of guidelines and directives affecting oil and gas production and transportation facilities in the state of Alaska;
• Coordinating inspections of oil and gas production and transportation facilities;
• Sharing data and other infrastructure integrity information on a routine basis, as permitted by law;
• Developing procedures during incidents of National Significance that will optimize communication and information flow to protect the safety and reliability of oil and gas facilities;
• Improving coordination of stakeholder outreach programs;
• Identifying ways to minimize duplication of effort and attendant costs; and
• Reviewing research projects and identifying opportunities to collaborate and support PHMSA's and Alaska's respective missions and strategic plans through the identification and development, and testing of new or advanced technologies or processes that can be utilized to accomplish common objectives.

We look forward to advancing and strengthening this important partnership.

very truly yours.

[signed]

Thomas J. Barrett            

AGREED

[signed]                                        5-14-07
Thomas E. Irwin           
Commissioner
Alaska Department of Natural Resources