Alyeska honored for asset retirement/legacy facility removal work

News

Ramona Monroe of Stoel Rives presents John Kurz, Alyeska President & CEO, and team with the AOGA Project of the Year Award. Joining John, from left, is Anthony Stallone (Modification Lead), Gretchen Stoddard (Waste Management SME), and Mark Nelson (Implementation Assurance Lead).

At the recent Alaska Oil & Gas Association Conference, Alyeska and TAPS partners were recognized with Project of the Year for work on asset retirement/legacy facility removal. The following is a summary of the award nomination, submitted by Alyeska's Environment team.

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Alyeska continues adapting our operations to the changing Alaska industry while we expect to continue operations for decades to come and embrace a "TAPS 100" philosophy. Alyeska currently transports approximately 175 million barrels of oil per year and although throughput is forecast to increase in the coming years, it is no longer a pipeline that carries over 700 million barrels a year like it was in the 1980s.

These and other changes lead to operational and engineering changes, and we no longer require the use of as many pump stations as we did in past decades. To adjust and reduce our footprint, Alyeska implements a program to clean and remove facilities in the spirit of what we refer to as our Asset Retirement Obligations (ARO). Thus far, the program has completed decommission and removal work at two Alyeska Pump Stations (PS 10 and 12), two are in progress (PS 2 and 8), and others will follow.

Alyeska committed to our agency landowners, Bureau of Land Management (BLM) and Department of Natural Resources (DNR), that we would reduce the TAPS's footprint by isolating and removing five currently inactive pump stations by 2034, Pump Stations 2, 6, 8, 10 and 12. Alyeska also provided conceptual plans for removal of legacy equipment at Pump Stations 1, 3, 4, and 9. The project is an ongoing with tiered activities spanning multiple years depending on facility configuration. Major demolition activities were completed at PS10 in 2020 and at PS12 in 2023.

Each pump station has unique construction and operational history that requires site-specific demolition work planning. The following general activities are conducted as part of the demolition and cleanup:

* Structures are removed to match surrounding grades or concrete slabs including the demolition of concrete that projects above surrounding grades or slabs.
* Sumps and depressions are filled with processed concrete from demolition.
* Known environmental cleanup activities are addressed following demolition.
* Equipment and scrap are removed and recycled.

Notable actions by location include the following:

* In 2023, Alyeska prepped PS8 for future removal work in 2026 - teams safely handled 91,000 gallons of hydrocarbons and wash water while cleaning more than eight miles of out-of-service above- and below-ground piping to meet regulatory standards.

* Alyeska created concrete reuse plans for PS 10 and 12 with agencies resulting in reduced cost, effort, carbon footprint, and reduction of transportation risk. Reusing concrete as beneficial fill in 2023 saved 72 loads of concrete rubble to be hauled long distances for disposal at an Alaskan landfill. The time and fuel cost savings are estimated at 16,200 gallons of diesel saved and a reduction in approximately 700 employee driving hours. These efforts resulted in a fuel cost savings estimated at 16,200 gallons of diesel and substantial reduction of risk related to driving time. An added benefit is the cost savings associated with landfill fees as well as the greenhouse gas reduction for emissions at approximately 181 tons due to reduced trucking needed.

* Alyeska and contractors reuse, recycle, and reduce waste where possible. Waste is carefully segregated to reduce the amount of waste disposed and to reduce the amount of waste requiring out of state hazardous waste disposal and other regulated disposal. For instance, metal allowed for recycling is sent to recycling smelters, but metal with layers of paint including PCBs is kept separate from this recyclable metal to limit the amount of waste requiring disposal at a regulated disposal site. Segregation minimizes the amount of metal requiring this regulated PCB disposal. In 2023, 2,343 tons of metal were recycled from Pump Station 12 during removal, and 54 tons were recycled from in 2023 from Pump Station 8 during pipe cleaning work. In 2020, 2,522 tons of metal were recycled during PS 10 removal work.

* Avoiding bird nest disturbance is a significant challenge during ARO activities. Removing abandoned buildings during a short summer construction season is not possible during active bird nest and egg hatching. Nets, bird avoidance and consultation with agencies and various personnel were needed to ensure building removal could continue during the short summer construction season.

Additionally, proactive environmental initiatives were implemented by ARO Managers with the support of the Environment, Engineering, Legal and Compliance Teams. By maintaining a culture of continuous improvement, legacy assets are removed while minimizing spills and environmental incidents. Planning is integrated, collaborative, and effective resulting in significant cost savings overall. The following are further examples of environmental initiatives and actions developed and implemented by ARO managers to date:

Environmental Stewardship Actions and Continuous Improvement Initiatives

* Incorporated prior facilities lessons learned and worked preemptively with the Environment Team to appropriately identify contaminants and develop waste management plans. This includes plans to manage PFOA / PFAS, Asbestos, Contaminated sites, PCBs, and Hazardous waste.

* Permit planning and applications completed well in advance of work - ADEC AQ review, EPA NESHAP for regulated ACM activities, Water Use, ADEC NOD.

* Supported PCB testing and removal scope of work - provided proactive coordination with Environment and Compliance to ensure protection of the environment, compliance with regulatory commitments, and to maximize cost savings.

* Included recycling and sustainability efforts.

* Worked with the CMCs, USFWS, and the Environment Team to understand historical bird species present to perform timely bird nest surveys based on species anticipated nesting time and to implement appropriate nesting deterrents - no work delays due to nesting birds.

* Minimal spills and no environmental incidents

* Project supervisors proactively hired contractor environmental support (dedicated Environmental Coordinators)

* Involved other groups in project planning in advance to allow for multidisciplinary Teamwork to ensure company success - recognized by both the Compliance and Environment Teams for exceptional communication.

* Incorporated recycling of metal and reduction of landfill disposal when feasible.

Team Alyeska celebrates the recent AOGA Project of the Year Award. From left, Hillary Schaefer, Vice President Operations & Maintenance; John Kurz, President & CEO; Mark Nelson, Implementation Assurance Lead; Gretchen Stoddard, Waste Management SME; Anthony Stallone, Modification Lead; Tom Marchesani, Vice President Engineering & Risk; and Allison Iversen, HSEC Director.

Alyeska and stakeholders value and prioritize removal of the legacy facilities to ensure environmental protection and to maintain Alaska's natural beauty. Only OSCP equipment and communications modules remain at the sites once removal is complete, creating a more natural and scenic setting and reducing risk to wildlife and the environment.