Corroded Alaska Pipeline Untested for 14 Years

August 08, 2006 10:03 AM

Avni Patel Reports:

Ap_oil_pipeline_060807_nr_1The severely corroded pipeline that forced the shutdown of the country's largest oil field had not been internally inspected or cleaned by BP Oil for at least 14 years, according to U.S. Department of Transportation records.

The lines at Alaska's Prudhoe Bay oil field carry eight percent of the domestic crude oil production but are exempt from federal regulation.

Pipelines regulated by the federal government are required to be tested every five years.

At least 73 percent of the pipeline will need to be replaced because of the extensive corrosion, according to company officials.

Members of Congress and environmental advocates are asking how the multi-billion dollar BP Oil, which heavily touts its commitment to corporate responsibility, could allow conditions to deteriorate to such a point.

"I would call it a catastrophic failure," said Lois Epstein, an engineer and consultant for the Pipeline Safety Trust, an advocacy group. "They had 80 percent or more wall thinning, which is an enormous percentage, and it really never should have gotten that bad."

The Department of Transportation increased its scrutiny of BP's Alaska operation only after the discovery of a 250,000 gallon crude oil spill there in March.

The spill went undetected for days until a worker who was passing by smelled the oil. The spill, which was caused by another corroded pipeline, has lead to a federal criminal investigation of BP.

Shortly after the spill, The Department of Transportation ordered BP to conduct an internal inspection of key lines using "smart pig" technology, which measures the thickness and integrity of pipeline walls.

DOT officials disclosed the 14-year gap in testing or cleaning to Congressman John Dingell (D-MI) in June.

Dingell, the ranking member of the House Energy and Commerce Committee, called on BP to take "all steps necessary to repair or replace problem pipelines quickly, so the American consumer does not pay for BP's laxity." He also urged Congress to hold hearings on what went wrong and whether federal regulation may be needed.

In a press conference yesterday, BP America President and CEO Bob Malone apologized for the shutdown, "We deeply regret that it has been necessary to take this drastic action."

BP did not respond to requests for additional comment for this story, but has defended its maintenance and inspections practices in the past. 

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August 8, 2006 | Permalink | User Comments (53)

User Comments

I think congress could save our money and skip those hearings -- sounds like federal regulation might be a good idea in this case. Why on earth were these lines exempt from regulation in the first place?

And why, if these old lines are in such horrible condition, did it take them more than 4 months to figure it out? Were they waiting for another 250,000-gallon oil spill to take this seriously?

I'm sure BP does "deeply regret" that they finally have to take some action and be responsible ... might make it tougher to hit record profits again next quarter.

Posted by: Will R | Aug 8, 2006 10:22:03 AM

This is another example of the oil companies taking windfall profits to line the pockets of a few executives and not pay attention to the business. During these times of astronomical profits these companies should invest and recondition there operations.

Posted by: Mark | Aug 8, 2006 11:20:45 AM

Had Enough???

Posted by: Phyllis Culbert | Aug 8, 2006 11:25:02 AM

BP is a greedy, greedy company. They will still make a hudge profit this year. Oh they'll fix the pipe okay......and while they fix it....they get to charge even higher prices for gasoline and all the big oil companies will see even greater profit. How bout those guys......boy are they sticking it to us. Thanks George Bush and you bunch of pigs in Washington.

Posted by: David | Aug 8, 2006 11:31:47 AM

I guess this is more of a question for Congressman John Dingell, but he called on BP to take necessary steps quickly so consumers wouldn't have to pay for their "laxity". I would like to know what he's going to do to protect us against the rising gas prices? I'm afaraid I already know!

Posted by: Stacie Swyrtek | Aug 8, 2006 11:34:36 AM

And Bush & Co. wanted more oil fields up there opened up! Lovely republican politics, backrubbings, profits, etc. Hmm, I wondered why the posted quarterlies were so good, safety always costs too much. Sorry about the rant, had to say it. Exposing my naivete, trust, apathy, stupidity... I will admit to being unaware of the allowable federal exemptions. I will never believe those beautiful green commercials of thiers ever again. There are too many people here on this planet for us to run away from the problems of our own making. What do we do to solve this one without extremity?

Posted by: Krista | Aug 8, 2006 11:35:07 AM

So much for expecting mega-corporations to "do the right thing". They can't even keep their equipment in order, much less their social commitments.

Posted by: Marie | Aug 8, 2006 11:36:32 AM

Maximum profits, minimum corporate responsibility.

Posted by: Tom | Aug 8, 2006 11:38:49 AM

Hey... let's put $150 million into the exec's retirement fund! Stupid idiot's!

Posted by: J. Wallace | Aug 8, 2006 11:38:52 AM

14 years between inspections? Exempt from federal regulations? How much did the oil companies pay in political donations for that privelege?

If there isn't a requirement to inspect these pipelines, what event occurred 14 years to cause that inspection to happen? What were the findings?

Posted by: Steve | Aug 8, 2006 11:42:15 AM

Another big oil company I will personally boycott!!! I have not purchased Exxon gas since the Exxon Valdez episode. BP should be heavily penalized. Just greed in operation!!

Posted by: P. Grillet | Aug 8, 2006 11:46:20 AM

BP management should be criminally prosecuted for their incompetence and lack of moral responsibility. I do not understand why they are not held to federal oversight. How did that occur? More criminal investigation of political corruption needed here as well. BP should pay the cost difference tenfold that will occur per increased barrel pricing due to this negligence, not as a fine but directly back to he people who will pay increased gas prices

Posted by: rich | Aug 8, 2006 11:55:35 AM

I feel that they have made billions in profit and they cant keep thier equipment up to par. They need to spend that profit on lowering prices. If they can earn billions off the american people then they should have to give some back since they let thier pipeline fail. Thier failure shouldnt cost us the money. Where are they out. If I were to let something slide I would be responsible and noone else. Sure they will have to pay for repairs but they should have been doing that all along and not posting billions in profit.

Posted by: steve | Aug 8, 2006 12:04:17 PM

A continuous and affordable stream of energy should be matter of National Security. It should not be subjected to the manipulations of Corporate Greed.

I often wonder whether it would be in this country's best interest if the the oil industry were to be nationalized.

Posted by: BratCat | Aug 8, 2006 12:16:58 PM

So BP screws up and doesn't do their job for 14 years and I have to pay the price!! Well why don't they borrow the money from Conoco and all the other Gas companies profits they took in last year and let them pay instead of us. That is right, I make less than 100,000 a year and they make 15 billion extra.... Okay now who learned math??? Can we say conspiracy!!!

Posted by: April | Aug 8, 2006 12:25:11 PM

To maintain their obscene cash flow one would think that BP - which folks means British Petroleum - would maintain their infrastructure which is the transport mechanism of their cash cow. But to take all the money out and put nothing back into infrastructure maintenance is stupid.

Posted by: Fast Eddie | Aug 8, 2006 12:32:14 PM

I guess the oil companies see the end of the road, it's coming, the ironic thing is it's a self fullfilling prophecy...How many of us looked into alternative fuel methods and vehicles this past weekend? (raises hand)

Posted by: Aaron | Aug 8, 2006 12:39:26 PM

As an American who drives and maintains a vehicle, I am require by law to have my vehicle inspected on a yearly basis. I don't think the 5 year inspection requirement that should have been required of BP is out of the question. Does anyone in the oil industry have even a remote amount of integrity? Try again BP CEO Bob Malone -apology NOT accepted!!

Posted by: Susan Coalson | Aug 8, 2006 12:45:36 PM

This country is so screwed up!....America used to be a great world power.

Posted by: Jack P | Aug 8, 2006 12:55:19 PM

I started working with BP in 1996. To my surprise all the oil was being shipped to S. Korea and Japan, not the West Coast. After working with them for nine years BP management displayed an attitude that Americans were only colonists, just like India, where they eventually outsourced our jobs. BP broke longstanding contracts with the native population and cut corners with Alyeska Pipeline Services, who maintained the pipelines.
It's no surprise that a foreign-owned Oil Company would not protect U.S. natural resources. America you've been raped!

Posted by: Alan | Aug 8, 2006 1:03:21 PM

I wish America would wake up and smell the roses, we are buying SUVs that really don't get used like SUV were originally intended, so therefore we are driving something that is wasting fuel. Also, we are the consumer without us the oil companies don't have anything, I think we need to look much more strongly into other fuel sources than what we are currently. Yeah BP is not an American company, but that is what Americans are going for now, if you look around all of the foreign companies are taking over our own markets. Look at the auto industry, Toyota just out sold Ford. We are losing our loyalty to our own country.

Posted by: Dan | Aug 8, 2006 1:11:04 PM

I think its ridiculous that they let the pipeline go, no inspections for 14 years and now that its so bad it has to be shutdown the consumers are going to have to pay for it. I think its a bunch of crap, and I'm sure the politicians and the oil companies are in this together and enjoying their lavish lifestyles while the rest of us are stuck at home with not social lives because we can't afford to drive anywhere but to work and back. Makes me so angry!!

Posted by: Jennifer | Aug 8, 2006 1:13:19 PM

The oil companies do what they do because we allow it. They provide what we insist on having and are willing to sell our souls to the devil to keep...our lifestyle. How many of us buy a car primarily based on high mileage? How many of us carpool? How many of us will circle the parking lot at Walmart several times in our SUV just to find a parking spot a few feet closer when we can walk? As a people, we apparently are willing to destroy our environment to keep our creature comforts. The oil companies are not saints, but oh don't we love what they provide us. What are you willing to do? (As the line from The Untouchables asks)Most of us are not willing to anything.

Posted by: Johnny | Aug 8, 2006 1:27:59 PM

We can scream and rant about the corrupt greed of oil companies (BP is hardly unique in its willingness to put the screws to consumers whilst pocketing obscene profits) but what good will it do? I want alternatives and I want them now! Why did GM destroy its electric cars and why can't we get something comprable now?
In anticipation of yet higher rising gas prices, I did some online research and find that there are no viable electric or alternative energy vehicles available.
Will it take $10 a gallon to make the US finally put its talents and resources into a solution to sustainable transportation?

Posted by: Carol | Aug 8, 2006 1:35:00 PM

I think BP should give free gas to all US consumers until they fix the pipeline. Making money hand over fist like they do and then not spend the time and money for upkeep on their infrastructure??? That's just absolutely stupid and irresponsible. If nothing else BP's shareholders should be really annoyed that the company took that big of a risk. They should dump their stock and go elsewhere.

Had there been a series of bigger leaks than the one mentioned, the cost to the company in lost revenue, not to even mention the cost for cleanup could have been enormous. I'm all in favor of capitalism and the free market economy, but come on folks this is totally out of hand.

Posted by: memphis761 | Aug 8, 2006 1:36:44 PM

If I were to deface the Statue of Liberty, throw rocks at the White House, deface the US Capitol Building or any other Federal property, I would spend the rest of my life in jail or receive a monstrous fine. BP has defaced Federal land, caused oil prioces to climb higher, forced working citizens to pay more for gas to get to work, were more concerned for PR image than protecting the environment, more concerned than profits than spending to keep the pipeline secure. This is obscenity of the highest order. This company should be fined to the maximum and required to lower its profits to bring the price of gas dpown or give credits to the consumer that will suffer from this debacle. They should also be told that all profits will go into US treasury until an inspection is satisfactory to American Citizens.
The apology of the CEO is about as sincere as the mass murderer who apologises to the court and those he kills, for his crime. Unbelievable!!!!
Congress is as culpible, as they did not require inspections on these pipelines on a regular basis. BP was exempt. I wonder who allowed this insanity. Another example of politicians having no thought as to the consequences of their laying in bed with the oil companies, and unwillingness to fully fund alternitive energy sources until profitable.

Posted by: Dan Bryant RN | Aug 8, 2006 1:39:07 PM

BP should be responsible for any price increase at the pump. We should not pay for BP's mess and negligence. After all BP and other big oil companies have been posting record windfall profits on our expense. Oil, like electricity and other utilities, should be regulated as a public utility by PUC. Wake up America!!Enough is enough.

Posted by: Max Shahbazian | Aug 8, 2006 1:43:23 PM

So, it is my thinking that if BP Oil was being so lazy on the job, they should have to pay for their own mistakes. Why should we the consumers have to pick up their slack.

Posted by: Sandie | Aug 8, 2006 1:59:58 PM

This when the oil companies are making record profits. Sounds like a conspiracy to me.

Isabella

Posted by: Isabella | Aug 8, 2006 2:01:19 PM

The current problem did not occur yesterday.

BP has a history of market manipulation, ala Enron.

Smell a rat yet?

See Palast for details.

Posted by: Arlo J. Thudpucker | Aug 8, 2006 2:03:18 PM

At the very minimum should be the immediate resignation of Bob Malone, CEO and President of BP America for his irresponsible and careless oversight of the Alaska pipline maintenance and operations all these years. And for the extraordiary magnitude of impact this will have upon us all from a financial, labor, and supply standpoint.

Fact is, this pipeline shutdown and related oil spills were all preventable. How much more mismanagement of its assets, and public resources, is BP senior management going to tolerate????.

As a former employee of BP I greatly admired their vision on being proactive in setting the highest working and environmental standards. Restoring such credibility lost in the wake of this latest incident must begin quickly and with replacement of key BP personnel involved with this incident.

Posted by: Stephen P. Kelly | Aug 8, 2006 2:11:08 PM

There will always be greedy corporations that take advantage of anything they can get away with. It seems like the real failing here is in the lack of oversight by the appropriate regulatory agency.

Posted by: Robert Henderson | Aug 8, 2006 2:11:21 PM

Last week they blamed the gas hike on heat.The week before that it was the continuous fighting in Israel that had not ended. It seems to me that they are pulling stuff out of their hats to justify raising gas prices. I have had enough, this is like stealing.

Posted by: Victoria Miller | Aug 8, 2006 2:13:17 PM

BP should be responsible for any price increase at the pump. We should not pay for BP's mess and negligence. After all BP and other big oil companies have been posting record windfall profits on our expense. Oil, like electricity and other utilities, should be regulated as a public utility by PUC. Wake up America!!Enough is enough.

Posted by: Max Shahbazian | Aug 8, 2006 2:17:56 PM

Wow! A 250,000 gallon spill! That would cover an area measuring 182-feet by 182-feet with oil 1-foot deep. How big is Alaska? My house is on a bigger plot of land.
Why not say that the spill was 400,000 cups? Or better yet, an even bigger number would be 57,000,000 cubic inches.

Posted by: Gary P. | Aug 8, 2006 2:25:51 PM

This is our fault. We drive like there's no tomorrow. People wake up. Oil is running out and with India and China developing at a rapid pace, it won't take that long.

Get a good bike, get in shape and ride where you normally drive. I ride my bike to work and on errands around town. I only filled up my car 2 times this summer.

I am looking into solar energy for my home, have bought a greenhouse and am growing organic beautiful veggies that I am not afraid to consume.

I work 40-50 hours a week too so don't say I can only do this because I stay at home.

America is weak, addicted to oil and air conditioning. Our children are lazier than any generation ever. We are in for a hard and difficult time. Stop complaining and start planning. Time is running out.

Posted by: Laura | Aug 8, 2006 2:30:24 PM

I wonder if there ever was a time when there was some sort of oversight on pipelines
by the federal government either by
direct inspections from federal
employees or some sort of reporting
process required of companies like
Alyeska and/or BP to ensure compliance. I also wonder if any
of these requirements were gutted
by the people who manned the group
who came up with our current energy
policy headed up by our esteemed Vice President, Dick Cheney. As I recall it was the "inmates running the asylum". There was no open discussion and virtually
no representation from any enviormental groups. I can clearly
recall our President when asked a
few years ago what are we going to do about these high gas prices, to
which he replied in his best faux
Texas drawl, "gotta sign that energy bill". Boy, have we let ourselves be scammed by a bunch
of money hungry, gilded-age crooks.
Shame on them and shame on us.

Posted by: Jimmy | Aug 8, 2006 2:40:40 PM

This is just another example of the "good olde boys" from the Bush Adminstration covering up the true facts to the American people.

There is hope of the future! November elections will start the process of putting America back on the right track.

Posted by: Woolsey | Aug 8, 2006 2:52:18 PM

Don't blame the Oil Companies. We should only blame those appointed to protect our interests who are failing us miserably. Oil companies, like other business, have one goal in mind and that is to make money…at whatever cost. The reason they often behave irresponsibly, such as in this case, is because they can. Our great government is looking the other way perhaps because the close ties between some of our key politicians and the same industry which is having a field day with Americans. Furthermore, US car makers have also being ignoring the needs of America lagging in their efforts to launch more fuel efficient vehicles…they also looking out for themselves. What we need is some serious leadership to lead us in the right direction. Unfortunately, is nowhere to be found.

Posted by: Ruiz | Aug 8, 2006 2:55:13 PM

Interesting that nobody seems to recall who was President from 1993 to 2001. Or to remember that the oil companies were not profitable enough to invest in new energy infrastructure.

All of the calls for legal action to force BP to buy gas for their SUV's ignore the fact that there is no legal basis for the lawsuits.

The flowlines that failed are not subject to federal regulation although they may be covered by the state. Does anyone really believe that adding laws will keep accidents from happening? If so, there would never be a traffic accident. BP had enough incentive to inspect the pipelines - they had a failure of leadership in executing their business plan - additional incentives/disincentives may help. But I have doubts that this is the way to go.

Posted by: Pat | Aug 8, 2006 3:08:43 PM

c'mon people think about it, when you have to pay for the 450ft yacth the rolls royce a summer home at cape cod and the winter home at palm springs it's hard to think about such trivial things like preventive mantainance..........gee wiz

Posted by: DAVID | Aug 8, 2006 3:26:35 PM

Refusing to buy BP's gasoline would be a fitting response to its negligence in properly maintaining the Alaska pipeline.

Posted by: Bob | Aug 8, 2006 3:57:29 PM

Foxes guarding the hen house?? How about an independent, objective nspection of the pipeline at least every year - and the cost of the inspection paid for by the oil companies? If there is any deception on the part of the oil companies, their top executives could be prosecuted for felonies and thrown in jail. Let's get tough on domestic terrorists!

Posted by: Wallace Olson | Aug 8, 2006 3:58:25 PM

Obviously large corporation cannot be trusted to "police" themselves, or maintain their own equipment - they should be forced by whatever laws required to "re-invest" a certain percentage of their profits into testing and repairing - why should the poor customer again have to suffer due to criminally bad management and greedy executives?
The oil companies shouldn't be allowed to increase their prices -they should be forced to cover costs by dipping into their own profits!
It's shocking and disgusting that these events even happen!

Posted by: Debbie | Aug 8, 2006 4:09:12 PM

Here is an idea, let's just not by gas from BP until they get there act together? That way they can't make any more profits off of us until it is resolved. They might have to spend some of there own money to fix this! They have made enough off of us!

Posted by: Maggi | Aug 8, 2006 4:25:40 PM

Another shining example of corporate malfeasance and pure greed.
And now it puts the U.S. in an even worse situation.
I'm SURE our many and endless enemies around the world are laughing themselves silly at this latest debacle.
Good Job BP! It's not much, but I'll never purchase your products again.

Posted by: Dave Close | Aug 8, 2006 5:38:01 PM

I am tired of how everyone complains about current fuel prices. If you don't like it, quit buying fuel. Get off your fat lazy butt and walk.

Posted by: Joe | Aug 8, 2006 5:48:24 PM

Yes Mr. Bush and all his energy buddies from his Daddy, right down the line, are worried? Naah, not unless the special interest or kickback pipeline falls into disrepair-God forbid that ever happens. In reality, a steady flow of AFFORDABLE energy should be a "National Security" issue, however, that might cut into the Bush-Cheney Energy policy: Profit-Kickback,Profit-Kickback. Watch this administration drag it's Armani loafers in this episode of "How far can we fool 'em?"

Posted by: HiploBlue | Aug 8, 2006 7:20:33 PM

BP pays an advertising firm to spin the illusion of a "Green" company while BP neglects basic pipeline maintenance and 250,000 gallons of crude spews on the ground. At the same time, Alaska's pristine Western Arctic Reserve and Arctic Wildlife Refuge are targeted for more oil drilling, more piplines. Oh well, America has to make sacrifices for "energy security". Our President announces the U.S. is addicted to oil, but there is no rehab plan. Few individuals change driving habits, ride bikes, or switch to hybrid cars. In the meantime, Americans justify war as necessary to stabilize the oil rich Middle East. We ignor Global Warming as "needing more research" and crank up the air conditioning. BP's greed and hypocrisy is a mirror of America's own. Without a strong alternative energy policy, the decades ahead will be filled with unplanned and increasingly unpleasant changes for each of us.

Posted by: Karen | Aug 8, 2006 7:52:33 PM

Gary P., your comment disgusts me.

It doesn't matter if it was 25 gallons -- the point is, it shouldn't have happened.

(You're a real math wiz, too ... 400,000 cups, eh?)

Posted by: Will R | Aug 8, 2006 9:36:46 PM

They are a couple of measures I would like to see the goverment institute.

1) That vehicles over a certain age be phased out from everyday traffic. If these vehicles are say for antiquity, then they should only be allowed to drive certain distances per year e.g. 3k miles
2) So that the oil companies and other copperations do not get the chance to treat consumers with such unbridled contempt their infrastructure like refineriess, factories etc should have a finite life span of say 20 years and that after say 15 years of continued maintenace if they do not show how they are ensuring that they are maintaining their facility and working toward upgrading for another 10 years then they should be phased out and other investors allowed to bid to take their places in the whole scheme of things and those who are involved with facilities that have been phased out should be recused from being involved with such other ventures for a period of not less than 10 years.

This is my offering that would put some tort in the scheme of things to give balance to what we are now experiencing through the political shot gun now trained on US consumers.

Posted by: Johno | Aug 9, 2006 3:18:04 PM

The BP pipeline problem coincides with the attitude of most companies, sensing the direction of the economy. "Get it while you can", Show me the money", "We'll worry about that later, but for now we're in the money". I think you will find this attitude with most large companies cutting corners and expenses, not maintaining equipment. The average income for a family to live comfortably in New York is 80,000. Where is this money coming from.?? We don't produce anything and we're outsourcing the rest. It's going to be slim pickings.

Posted by: FlimFlamMan | Aug 9, 2006 3:32:18 PM

The Greedy Corporations and the Profit Hungry Shareholders
Honesty and integrity went out the window – anything goes

Corporate greed and the insatiable thirst to make a profit, to satiate shareholders share- holders’ profit expectations have changed American values, where anything is justified in order to derive enormous corporate profit and satisfy the expectations of the share-holders; maintain the image of profitable corporate America. It is a vicious cycle that feeds itself to ultimate disaster.

These attitudes have brought corporate executives to exercise the drive and mentality that anything goes, no holes barred.
Inflating earnings, hiding debts and liabilities, outright fraud and deception. Theft by executives, theft of corporate assets, graft, bribery, illegal contributions to politicians, trips, gifts and favors to politicians, crooked lobbying organizations.
Where and when does it all stop? When are Americans going to wake-up and realize they are on the path of disaster of magnitude proportions that will bring our downfall?

We still have honest ethical hard working people in America. Let us all rise and protest these money hungry actions and methods, before it is too late.

Work hard to better America, institute honesty and integrity.
It starts at the top – the politicians, the legal system, corporate America and progresses to the masses.

The media is not exempt. Honest reporting is a must, the public expects no less.
Exercising - Sincerity, honesty and integrity is a good beginning.
If you work hard, perform your duties sincerely and honestly, you will be able to earn a better profit/living. You will not have to worry about covering up for your wrongdoing and you will be able to sleep better at night, look at yourself in the mirror.

We should learn to respect each other.
Bring back family values.

Am I asking too much?

Jay

Posted by: Jay Draiman, Energy Consultant | Sep 24, 2007 12:29:32 PM

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