Calling it a renewal of jobs and economic security for Alaska families, Gov. Tony Knowles and Department of Natural Resources (DNR) Commissioner Pat Pourchot today signed a 30-year right-of-way lease renewal for the Trans-Alaska Pipeline System (TAPS). The lease renewal signed at a ceremony in Anchorage today covers the 344-mile portion of TAPS that crosses state land.
"This 30-year lease renewal helps ensure continued investment in North Slope oil resources, jobs, and economic security for Alaska,” Knowles said. “The renewal process has also ensured that North Slope oil will continue to be transported in an environmentally safe manner. I am very proud of this accomplishment of my Administration and expect federal action on renewing the remainder of the pipeline's right-of-way by early next year.”
State and federal agencies at the Joint Pipeline Office (JPO) have worked closely together for over two years on the renewal of the state right-of-way lease and the federal grant of right-of-way that were first issued in 1974. DNR received extensive public comment during the lease renewal process. The JPO conducted reliability-centered maintenance testing on critical systems and reviewed extensive analyses of pipeline condition. They also reviewed extensive data generated from so called "smart pigs" to ensure full knowledge about the condition and integrity of TAPS.
As a part of the renewal process, the Alyeska Pipeline Service Company has adopted and implemented a new risk analysis-based maintenance planning process monitored by the JPO. Based on the data collected and Alyeska’s implementation of a new maintenance strategy, the Commissioner found that the useful life of the pipeline is in excess of 30 more years.
"The TAPS renewal process has been a tremendous success story in federal-state cooperation and efficiency," said Commissioner Pourchot. "The renewal addressed complex issues of public safety and concern and finished over a year ahead of schedule."
Construction of the pipeline took place from 1974 to 1977 and has been called a "modern wonder of the world." This engineering feat was recently put to the test during a magnitude 7.9 earthquake. The huge quake caused the line to move seven feet in places but the pipeline performed as designed, shifting on its supports but surviving the quake intact and without any leaks.
The 800-mile-long oil pipeline supports over 95 percent of the oil production in Alaska. The oil industry directly and indirectly provides a third of the jobs in the state.
About $6 billion dollars a year in personal income can be attributed to the benefits of the oil industry. The 30-year lease provides the necessary certainty to support long-term industry investment in production of existing fields and in exploration and development of untapped oil resources on the North Slope.
The Bureau of Land Management announced last week the completion of the final environmental impact statement for the renewal of the Grant of Right-of-Way that analyzes continued TAPS operations on federal lands. A federal renewal decision will be made early next year.
In addition to renewal of the TAPS lease, five North Slope pipeline lease renewals were also signed. The Endicott, Kuparuk, Kuparuk Extension, Milne Point and Oliktok pipelines have been renewed for an additional 30 years. These pipelines deliver 60 percent of the oil that is transported down TAPS.
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For more information, contact John Kerrigan at 907-257-1300