Oil companies: pipeline incident won't hurt Valley

MAT-SU -- Last week, a man with a rifle pierced the trans-Alaska oil pipeline with a .338-caliber bullet, setting off a geyser of oil, temporary production cutbacks and widespread concerns about the vulnerability of the state's economic lifeline.

Oil company pundits, however, say the catastrophe had little effect on Valley workers on the North Slope and likely won't have a negative economic effect.

"What happens when you have a cutback in production in the field is things get really busy," said Phillips Petroleum spokeswoman Dawn Patience.

Patience explained that when production stops on the North Slope, the lines are immediately susceptible to damage from the freezing temperatures.

"We have to freeze-proof most of the well-lines," Patience said. That process means hurried work and, often, overtime hours for workers.

Ronnie Chappell, spokesperson for British Petroleum, said B.P. employees, too, were hard at work.

"This has been an extremely busy time for our people in the field," Chappell said. "It allowed us to do maintenance that would have required partial shut-downs later."

Chappell said he didn't see any potential negative impact to the Valley as a result of the puncture and resulting spill. When asked whether he thought higher prices at the pump were on the horizon as a result of the mishap, Chappell said it's not likely one incident such as this would bring about higher prices.

"Alaska's North Slope oil flows into a world market," Chappell said, "and the price that our oil demands is established by that world market."

House Oil and Gas Committee chair Rep. Scott Ogan, R-Palmer, said he and others on the committee have contemplated similar situations.

"We were concerned about that sort of thing happening," Ogan said.

Ogan said he was also unsure of any potential negative effects the pipeline incident may have on the local area and said, in reality, the ordeal will have little economic impact.

"It was insignificant on a national scale as far as affecting the national economy or the local economy," Ogan said. "It just points out [the pipeline's] vulnerability."

And that's what the committee was hoping to address in a recently scheduled meeting.

The group had planned to meet and discuss issues of pipeline safety a few days ago, but the meeting was postponed because of the incident.

The meeting was rescheduled, tentatively for Oct. 19, Ogan said, and it's likely it will be held in Anchorage. Officials who have been invited to speak to the committee include Major Gen. Phil Oates, commissioner of the Department of Military and Veterans Affairs; Col. Glenn Godfrey, commissioner of the Department of Public Safety; and officials from Alyeska Pipeline Service Co., but it's likely what they discuss will remain confidential.

Much of the meeting, Ogan said, will be held in executive session, although some public comment will be taken. If the public comment is from individuals with specific details as to areas of vulnerability of the pipeline, however, Ogan said they may be asked to share that information in executive session.

"I think in the name of national security, we shouldn't just give people who would like to see our country compromised the . . . instructions on how to do it," Ogan said.

Some of the topics that will be discussed will be potential threats and vulnerabilities to the pipeline, as well as possible ways to prevent mishaps in the future.

"The big national interest is some sort of terrorist strike that would disable the pipeline for a long time," Ogan said. Disabling it would cut back by approximately 22 percent the national domestic production of oil. "But I think everyone recognizes that it's impossible to protect an 800-mile pipeline," he said.

More information about the committee meeting will be available through Ogan's office at 376-4866.