Sale of BP’s Alaska assets to Hilcorp under scrutiny

Additional information needed to address concerns

Storage Tanks at Valdez Marine TerminalThe sale of BP’s Alaska assets to Hilcorp Energy Company and affiliates is still pending approval by the Regulatory Commission of Alaska, or RCA, and other state agencies.

The RCA, within Alaska’s Department of Commerce, regulates utilities and pipeline carriers in the State of Alaska. Other State of Alaska agencies are advising the RCA on aspects of the transaction and have their own statutory authority to approve or deny the transaction.

Hilcorp’s request for confidential financial documents is questioned

Hilcorp filed financial information in late 2019 and requested that the RCA keep those documents and the sales agreement confidential. They argued that releasing these documents to the public would cause “competitive harm.”

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Council’s annual board meeting will be virtual, May 7-8

Tanker in Prince William Sound

The Council will hold a virtual board meeting, via video and teleconference, on Thursday and Friday, May 7-8, 2020. Due to coronavirus concerns, no in-person attendance will be permitted.

Those interested in attending can do so by teleconference (1-888-788-0099, meeting ID: 216 315 997) or video conference. Visual presentations given during the meeting can be streamed live through the videoconference or accessed by download:

The tentative schedule for the Thursday session is from 8:30 a.m. to 2:00 p.m. On Friday, the meeting is scheduled from 8:30 a.m. to 12:30 p.m. The meeting is open to the public through the video/teleconference system, except for executive sessions. Public comments are scheduled to be taken on Thursday starting at 9 a.m.

The Council will be conducting regular business during the meeting, including seating of established directors and committee members and election of new board officers. Other topics included on the agenda are:

  • An activity report by Alyeska Pipeline Service Company on the Valdez Marine Terminal and Ship Escort/Response Vessel System operations, including impacts to operations from COVID-19 and an update on the current spill situation at the terminal.
  • A report on the annual analytical summary and interpretation of the passive sampling device, mussel, and sediment samples taken each summer for the Long-Term Environmental Monitoring Program.
  • A report on best available technology for towline deployment between oil tankers operating in Prince William Sound and rescue tugboats.
  • A report from the Council’s legislative monitors and staff on political developments and prospects coming out of Washington, D.C. and Juneau.

A second, special board meeting is planned for May 21, from 9 to 11:30 a.m., to discuss and approve the Council budget for the next fiscal year, beginning July 1, 2020.

The meeting agenda provided is subject to change before or during the meeting. Council board meetings are routinely recorded and may be disseminated to the public by the Council or by the news media. 

Both Council offices (Anchorage and Valdez) are currently closed as a safety precaution due to the COVID-19 pandemic. While the State of Alaska and the City of Anchorage have recently made announcements about their plans to start reopening businesses soon, the Council does not yet plan to reopen either office. As state and city plans continue to progress, the Council will take a very cautious approach to reopening and will send out notifications about when and how the Council offices will do so.

The health and safety of Council staff and volunteers are our top priority and will drive decisions as the situation evolves and more information becomes available.

More information: Updates on COVID-19 impacts to Council activities.


 

Spill from Valdez Marine Terminal

Photo taken on April 18 during an overflight of the Valdez Marine Terminal. Image shows several layers of oil spill boom, fishing vessels pulling current buster boom to collect oil. A sheen can be seen on the water inside the boom.
Saturday, April 18: Overflight photos of the Valdez Marine Terminal area.

On April 12, a sheen was reported in the vicinity of the Valdez Marine Terminal.
The source of the spill was identified as a sump located uphill from Port Valdez. Oil had seeped through the ground to reach the water.

All responders have been required to adhere to safety guidelines to mitigate the spread of COVID-19. Council staff and volunteers have been monitoring the situation from a safe distance.

On May 5, the Unified Command was officially concluded. The spill is still seeping through the soils, however the flow is being intercepted and redirected to the ballast water treatment facility.

As of May 4:

  • Approximately 1,350 barrels, or 56,700 gallons, of oil/water mix have been recovered.
  • Crews have been measuring the ratio of oil to water to determine the spill volume, and have reported approximately 16 barrels, or 686 gallons, of crude oil have been recovered from the oil/water mix, and approximately 30 gallons of oil have been recovered from land so far.
  • The total spill volume is not yet known.

Latest information from Unified Command

More information and updates on this incident and the investigation will be posted on our website as it becomes available.

Response websites:

For additional information, please contact Council staff.

Other resources:

This photograph was taken at 10 a.m. Tuesday, April 14 from above loading berth 4 at the Valdez Marine Terminal looking south. Photo courtesy of Unified Command.

Nearby weather buoys: Tracking Weather for the Safe Transportation of Oil

Learn about Spill Containment Methods (NOAA)

 

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