The trans-Alaska pipeline is part of the world’s longest pipeline system, transporting oil from Alaska’s North Slope 800 miles south to the Port of Valdez. The trans-Alaska pipeline system, known as TAPS, also traverses one of the world’s most vulnerable environmental areas, and is under constant surveillance by regulators, interest groups and the public. Alyeska Pipeline Service Company operates TAPS for six owner companies: British Petroleum, ExxonMobil, Phillips, Williams, Unocal and Amerada Hess. Alyeska has operated TAPS since start-up in 1977 and has achieved an overall reliability factor of 99.78%.
The TAPS right-of-way crosses land owned by the Federal government, the State of Alaska and Alaska Native Corporations. The original right-of-way has been in place since 1974 and will expire in 2004. Now the TAPS owners are in the process of seeking a 30-year renewal. According to Steve Jones, TAPS ROW Renewal Manager, under the laws governing TAPS, the ROW can be renewed so long as TAPS is in compliance with the existing Federal grant, State lease and other applicable laws.
Dan Hisey, Chief Operating Officer for Alyeska, says operating a pipeline through Alaska is like working in a fish bowl. The amount of regulatory oversight focused on TAPS is unique in the U.S. pipeline industry. Primary government oversight is exercised through the Joint Pipeline Office (JPO). The JPO is composed of Federal and State agencies, led by the Federal Bureau of Land Management (BLM) and the State of Alaska Department of Natural Resources (DNR). In all there are more than 20 regulatory agencies that have TAPS oversight responsibility.
Renewal plan
As part of the renewal process, Alyeska is evaluating how to bring a less bureaucratic and more systematic approach to its business processes. The companys management systems have been reviewed and diagnosed by DNV, and a renewal plan is being implemented throughout the organisation.
Explains Hisey, Over the past twenty-four years Alyeska has made and continues to make improvements to TAPS operations. Now were in the process of revising our management systems and business processes to be sure we are prepared for future operations. In order to get an independent evaluation of our compliance processes and management systems, we hired DNV to carry out a third-party audit. Most significantly, the audit included a roll-up of detailed findings into root cause system findings. According to Hisey, this review made it clear that Alyeska needed to improve the way it worked across the company. DNV examined all our operations and told us what we could do better from both a detail and a systems perspective.
During the first 24 years of operation, changes in regulatory requirements, training standards, technology and operational parameters led to a significant increase in the number of manuals and reporting procedures.
According to Jim F. Johnson, Right-of-Way Compliance Director, the time had come to integrate the companys processes into one simplified management system. Previously we were tied up in details which prevented us from seeing the system as a whole, Johnson says. The new approach has allowed us to improve management effectiveness by making it more intuitive by reducing complexity we will ensure that Alyeskas compliance and regulatory responsibilities are fully understood and effectively managed.
Continuous process of compliance Alyeskas definition of compliance is not a moment-in-time happening but rather an ongoing process. This is not a traffic-ticket approach, says Johnson. Instead, we are focusing our management systems in a systematic way so we can assure our stakeholders that we have processes in place to ensure continuing compliance.
Dan Hisey has been assigned accountability for implementing the changes in the organisation. We recognise that the transition will require a full commitment to change by the entire organisation, starting at the very top, says Hisey. The new path will not be easy or short, and transition to a new system will involve behavioural and cultural changes along with new programmes. Our management team has given unanimous support to this improvement plan.
Since TAPS will continue to supply a significant portion of U.S. crude oil for the foreseeable future, renewal of the right-of-way is in the public interest. TAPS owners anticipate that the renewal process will entail a rigorous review of a number of complex issues. Redesigning the company business processes and management system will ensure TAPS continues to meet the high standards the public and regulators expect.