Environmental Catastrophe Recap

A recap upon Alaska's North Slope largest “non-accidental” illegal discharge of hazardous waste.

There was a time in history, before the EXXON Valdez wreck, wherein oil field workers would come to odds with so-called environmentalists. It was “Oil Men verses the Green Guys”. I was an oil worker and at the same time a “green guy”. I remember many Totem debates with environmentalists down in Valdez, wherein I, along with my co-workers would win out the debates every time. See, what the environmentalists didn't realize or refused to accept was the fact that it takes an environmentalist's attitude in the field to make sure “Big Oil” maintained some semblance of environmental responsibility. Don't laugh! Look, when we were not at work making sure 2-million barrels of the “black gold” was making its way down the Trans-Alaska-Pipeline, for most of us it meant a week or two off the time-clock with unabated freedom surrounded by the greatest wilderness still “wild”. When the “Last Frontier” meant something. It meant spending a whole lot of time out fishing, hunting and hiking. We learned early on that we had to maintain this beauty for future generations, our children, as most of us where raising families during this time period. So we would be fools to let the natural beauty of the “Last Frontier” erode away just for the “black gold”. With that said, we became internal whistle-blowers, making sure that management couldn't pull a fast one to the detriment of the environment. It was the ultimate homegrown oversight. Look, we didn't need the state oversight to police the ways and means of the industry. We were on-sight all the time, official oversight only some of the time. And we were taught to make sure things were done right! Sure there came “accidents”, but what we are seeing today is a pathetic journey down the road to environmental ruins. I am talking the “Independents” that are given tax relief and royalty relief and with that a “license to kill”, leaving all environmental responsibility checked at the door. Case in point: The largest “non-accidental” illegal discharge took place about a year ago. It was at Pioneer Natural Resources' Oooguruk facility, located on Harrison Bay of the Colville River Delta, a gateway to the Beaufort Sea. This is pristine wilderness, the backyard of the Inupiat landholders, not in any shape or form desolation row or a wasteland. But when used glycol could not be sold, it was “shammed” away down-hole, injected out-of-sight without the proper permits. When first reported to the company management, not outside to regulators, PNR representatives denied all such allegations. And to try to discredit the individual worker that maintained a concern over the illegal discharges as defined by EPA guidelines, the attorney representing PNR went crying to the AOGCC, once again denying all allegations. PNR wanted to get it on record that nothing happened, as they supposedly performed their own internal investigation. Didn't we learn in kindergarten not to tell lies? But when evidence to the contrary surfaced, then the management realized they were caught red-handed without a plausible lullaby. So overnight it went from no illegal discharges to over 49,000-gallons of contaminated glycol now reported to the agencies in charge. The entire ship of fools it was! This is the largest “non-accidental” discharge on record for the “slope”. Because the oversight was lacking and could have prevented this had they been performing “oversight”, the regulators fined PNR a measly $10,000-dollars, a pittance and equal to about 20-minutes of crude oil production. As was the discharge a “sham”, so was the fine! At the same time, the Justice Department fined a fish processor $1.9-million in fines, for discharging a far less amount of glycol during a fishing operation in the Gulf of Alaska waters. That fine was based on the fact that the operation did not have the proper permits and the discharge was not an accident. And the fish processor didn't deny the discharge, but self-reported the ordeal, like is required by law. PNR did just the opposite, tried to hide it. The $5,000-dollar fine that PNR received for the illegal – without a permit – dumping, is is in no way shape or form a deterrent. It is a joke. But when we have a panic stricken legislature that wants to fill the void in the pipeline, with the likes of the Independents infiltrating where there was at one time some semblance of environmental responsibility, may as well shut-down the regulators, as it is business “not as usual” in Alaska's oil patch. Maybe the North Slope “wasteland” label will become fact over fiction, as just a few weeks ago and within eyesight the Oooguruk dumping grounds, ENI blasted crude oil out a flare stack at its Nitaitchuq production facility, only tens days after starting up the operation! The Beaufort is within a stones throw. Sorry, no fine! Had this been BP or ConocoPhillips, we would see a completely different outcome. This is a joke but not a joke, because ENI didn't even know who to call! They finally called the State Troopers! They don't even understand the proper reporting criteria, but still they have a permit to drill for oil? Doesn't the state perform a background check on the Independents? Look, I can't get by security on the “slope” without a personal background check, what gives. And this reporting wasn't a mistake, as it appears that it was all supposed to be under-the-table, just the way the Independents want it here in Alaska! They want their cake and eat it too. The fact that the EPA allowed PNR to get away with not even a slap on the wrist with the illegal disposal of 49,000-gallons of contaminated glycol, it is suspect. Hold that thought. It is beyond suspect and goes to show that things have changed on the “slope”, not for the good, but for the worse! There is no oversight, except for someone watching the money flow into the state coffers. May as well shut-down all the regulators, as we will save a whole lot of loot. So much for the environment. I am glad my kids enjoyed it while it was still “virgin” territory!

Update #1

Recently, the Justice Department levied a fine totaling $1.9-million in penalties and cleanup costs against UniSea Inc., for what could be gathered from local new articles, violations against federal and state environmental laws. It appears that what was missing this action that made it illegal was the fact that UniSea did not have the required permits for these particular discharges, including discharges of propylene glycol. There appears to be “grave” injustice this fine, as there are other “Clean Water Act” violators operating in Alaska that are getting away with far less fines and penalties for malfeasance well above and beyond what UniSea was indicted upon. In most cases, in no way shape or form a fine that spells it out that this kind of irresponsible behavior will be tolerated, as a deterrent. In a case of interest against Pioneer Natural Resources, the end result, it certainly does not send an important message of deterrence and accountability for environmental violations. Pioneer Natural Resources(PNR), a Texas based petroleum exploration corporation, was the 1^st Independent to operate on Alaska's North Slope, starting up the Oooguruk Island production facility back in 2008, located in Harrison Bay of the Colville River Delta, Beaufort Sea. As a direct employee during the early part 2010, I filed complaints internally with Pioneer's management with respect to illegal injection of used glycol, leftover from the warm-up start-up of the production facility's pipelines. Upon receiving my complaint titled “Alaska's Deadliest Sin”, PNR filed a counter-report with the State of Alaska AOGCC(Alaska Oil & Gas Conservation Committee), the regional EPA and the State of Alaska Attorney General, denying all and any illegal injection allegations, based on those complaints mentioned earlier. When I provided PNR and the AOGCC and the EPA further proof that the illegal injection did indeed take place, as documented in PNR's own “Operations Log Book” - a legal document - PNR amended their original report with the AOGCC, this time admitting to the injection of 49,000 gallons of used propylene glycol, without a permit. This is probably the largest illegal injection on record that ever occurred on Alaska's North Slope in 30-years of operation, with respect to the oil & gas industry. But in the end, PNR was fined only $10,000 dollars, or based on oil prices at the time the fine was levied, about 20-minutes worth of oil production time. The fine was meager and confusing, due the fact that the AOGCC could not determine how many days the illegal activity went on, evidence lacking, so PNR was fined the maximum daily fine of $5000, for two days only, or something to that effect. Had I not been persistent and had not before me the overruling evidence to prove that the illegal injections took place without the proper permits, as PNR's AIO(Area Injection Order) did not allow for glycol injection, PNR management would never had reported this and probably would have continued this illegal discharging until such time all of the questionable glycol was hidden away. And this “sham” recycling as it is called, it was done as a means to get rid of contaminated fluids(used glycol with elevated ph levels) that could not be sold for re-use. To properly dispose of this chemical fluid, it would have been a very costly venture, but it is the cost of doing business on the “slope”. It was not a mistake, I repeat, not a mistake or a defense that the “operators” thought it was OK from past experiences as the AOGCC report delivered by PNR finds so convenient an excuse as a lullaby. The operations' staff was instructed to do this by the PNR Operations Superintendent, through verbal orders, to get rid of the stuff he could not sell. The matter was of such concern to the AOGCC, it instigated a 3^rd party investigation upon PNR and the AOGCC's oversight capabilities, yet even today we see that PNR was levied nothing close to what could be righteously considered a deterrent. I have filed two complaints with the EPA over this matter, they have the reports from PNR, they have been in the loop, but nothing has come of my concern. Not even any feedback, as if they would rather not touch this one. I believe that the EPA is staying clear their responsibilities this issue for reasons that are not consistent its mission and goals, to protect the environment and prosecute violators. There is a lot of pressure from the Alaska legislature to make the Independents feel comfortable here in Alaska, to fill the so-called void in the pipeline, by developing “marginal” fields. Our own D.C. Delegation is behind the “Independents” success. I believe this is getting in the way of environmental stewardship. With that in mind, I have requested that the Justice Department in its authority, look into this matter as to what went on between PNR and the AOGCC and EPA, in efforts to make sure preferential treatment has not placed the oversight in a weak position. Once again, when one compares what PNR did illegally to that conviction upon UniSea, there is something drastically wrong this equation, with respect to the outcome. UniSea's fine, it is a deterrent. With Pioneer, more like a bonus!

Help Wanted!

Job Description:

The Alaska Oil and Gas Conservation Commission (AOGCC) is recruiting for a permanent, full-time, overtime eligible, PETROLEUM INSPECTOR. Under general direction of the AOGCC, the Petroleum Inspector performs fieldwork in the enforcement of Oil and Gas Conservation statutes and regulations to assure the prevention of waste in the exploration, development and production of hydrocarbon reservoirs. Program goals are defined as part of the specific duties and to accomplish these goals inspectors must select which inspections are critical to witness and which inspections can be waived. Inspectors exercise discretion regarding how the AOGCC’s inspection goals are achieved.

Finally, the AOGCC is staffing up. To date, there existed only 5 positions for field inspectors, for the entire North Slope region! And lack of oversight due reduced staff was not due concerns of budget constraints, as the Commission’s $5.6-million a year budget is paid for by the oil companies. So lack of oversight finds no excuses. And that is the reason today the AOGCC is under scrutiny of a 3rd party audit, because it was not watching out what was going on at Pioneer Natural Resources’ Ooogurk project. With no oversight, this 1st Independent is now facing enforcement action by the Commission, for many different derelictions of duty including illegal underground injections, illegal natural gas wasting that polluted the environment and many other atrocities. Bottom line, this Texas based corporation’s project should be shut down and banned from ever again being allowed to work the North Slope.

Serious Non-Compliance

So why would Pioneer Natural Resources deny an “enforcement order” by the Alaska Oil & Gas Conservation Committee to shut in two wells that were unsafely piped? Waiting for over a month’s time to perform this action when conforming to the “order” only after the AOGCC warned of further action, by the police! When the regulators informed that this non-action by Pioneer was a “serious non-compliance” issue! This behavior to misbehave is simple. When a small Independent is dependent on paying the bills, lost production can make the shareholders irate, and when that happens, executives and CEOs may find themselves in the un-employment line. So they take a risk, a gamble just to keep the cash register cha-chinging. And when a small Independent knows not what they are doing in Alaska, they have to take these risks and hope that they don’t get caught. Case in point: Pioneer Natural Resources, a Texas based Independent, a “mom & pop” operation wanted to make it big in Alaska. So they came north to the bidding table, unprepared, What I mean by this is the fact that on record Pioneer has paid out the most for the opportunity upon leases to explore to exploit in Alaska, on the “North Slope”. During the 2008 North Slope Area-wide Sale, Pioneer broke the records for “bid per acre”. With the average bid at $36 per acre, Pioneer went overboard and paid out ten times the average, $306 bucks and ended up with a single lease costing the shareholders some $783,000.00 dollars. The highest bid on record! The state loved it. For a lease that was deemed un-economical by the “Big Oil” players, because it was considered marginal recovery “near-shore” and a logistics nightmare. So what was once an interest to “Big Oil” experienced in Alaska, they let the original lease go by the wayside. There was oil, but to hard to extract in an area that was far away from the existing Prudhoe Bay infrastructure. That is why today Pioneer has a supply barge grounded in the Beaufort Sea and leaking fuel! It is stupidity at its best. And that is why they feel proud to disregard orders, as when the cash register goes broke, this place has no other option, then closing up shop. And with a no-give-a-crap attitude upon oversight and/or environmental responsibility, maybe the state should make it easy, with a “Cease & Desist” order, until this outfit can prove that they know what they are doing. In fact of the three exploration wells drilled after the lease sale, the favorite of interest was a dry hole. So they had to try the least favorite, wherein oil was found but in a pathetic formation that finds today “communication” problems wherein the water-flood finds a direct tunnel to the oil and comes right back up out of the ground! Big Oil probably laughs, but cries when they find out that the state made concessions in efforts to lure in the so-called Independents. With tax relief and royalty relief unheard of after 30-years. This is Drill Baby Drill, this is the Sarah Palin legacy. And in the end, the state will pay, the ecosystem and environment will suffer, as this state is open for business and even the regulators find it hard to do their job. Thanks Sarah… And if you can see Russia from your backyard, maybe you can see what is happening on the “slope” with the Independents!

Pioneer Barge "Hard Aground"!

Barge runs aground, leaks fuel on Alaska's North Slope


SMALL LEAK: No injuries to 4 crew after wheelhouse partially falls off.

By RACHEL D'ORO
The Associated Press
Published: September 15th, 2010 09:17 PM
Last Modified: September 15th, 2010 10:53 PM

An ocean barge carrying oil-field equipment ran aground along the North Slope, and responders

State environmental regulators said the vessel has more than 1,700 gallons of diesel fuel on board.

The Stryker grounded after a section of the barge holding the wheelhouse lost connecting pins and fell partly into the water.

The mishap occurred Tuesday between Oliktok Point and Oooguruk, a field that pumps oil from an artificial island.

No one was injured, but a small amount of fuel leaked from a tank, according to Tom DeRuyter of the Alaska Department of Environmental Conservation. Valves on all the tanks were closed and the sheen dissipated, he said. The Coast Guard also responded.

The barge ran aground about 40 miles west of Prudhoe Bay, the nation's largest oil field. The cause is under investigation and immediate plans call for placing booms around the barge, removing the fuel and salvaging the vessel.



The Stryker is owned by Bowhead Transportation Co. and is under contract with the Oooguruk operator, Pioneer Natural Resources, an independent oil and gas company based in Irving, Texas.

At the time of the grounding, seas were choppy and winds were gusting at 40 mph. The barge has operated in the area for several years in rough conditions, said Amanda Henry, a spokeswoman for Bowhead.

"We are not aware at this time what actually caused this," she said.

The barge is attached in segments, with the wheelhouse held in place by pins on top of the stern, Henry said. The design allows the barge to be expanded for larger loads.

Henry said two of the wheelhouse pins failed for unknown reasons, leading to the grounding. The four people on board were safely removed from the craft, which was transporting three flatbed trailers and a vacuum truck from Oooguruk to a dock at Oliktok eight miles away.

Todd Owens, an Alaska spokesman for Pioneer, said oil production has not been affected. Oooguruk produces as much as 588,000 gallons a day.

Pioneer is already under scrutiny by the state, which hired an independent investigator in June to review allegations from a former worker at the small field. The whistleblower, Mike Kelley, claims Pioneer covered up spills, improperly disposed of waste, created unsafe work conditions and injured wildlife.

The grounding is irrelevant to any concerns raised by the whistleblower, Owens said.

"This is not a Pioneer-operated asset," he said of the barge.

Rob Shoaf, a private attorney looking into Kelley's claims, said the grounding is "not within the scope of this investigation." He hopes to submit his report next week to the Alaska Oil and Gas Conservation Commission, the state agency that regulates oil wells.

Pioneer Fined!

Slope producer fined for unauthorized chemical injection


FINE: Unauthorized use of glycol leads to levy of $10,000 by commission.

By ELIZABETH BLUEMINK

ebluemink@adn.com
Published: September 15th, 2010 08:59 PM
Last Modified: September 15th, 2010 10:53 PM

Pioneer Natural Resources, the sole independent oil producer on the North Slope, paid a $10,000 fine this week for injecting an unapproved chemical into its oil reservoir last May.

The violations involve glycol, which Pioneer was using as an anti-freeze fluid in a water supply line. Glycol is commonly injected into oil reservoirs on the North Slope but Pioneer had not sought or received permission to do so.

The glycol violations were initially reported by an employee whistleblower. Pioneer initially denied the allegations, but after concluding an internal investigation it told regulators that it had improperly injected roughly 45,000 gallons of a glycol-water mixture into the reservoir. The injections happened on two days.

The Alaska Oil and Gas Conservation Commission sent a letter to Pioneer in late August proposing a $10,000 fine.

Pioneer did not contest the fine and sent its payment to the state regulator this week.

Pioneer said in a statement Wednesday that it reported the violations as soon as the company confirmed they had happened and it has received conditional approval from the commission to inject glycol in the future.



The AOGCC is still investigating other allegations reported by the whistleblower, Mike Kelley, who quit his job at the company soon after making the accusations.

Among other accusations, Kelley claimed the company covered up spills, injured wildlife and created unsafe conditions for workers.

Kelley further alleged that the AOGCC neglected its duty to regulate the company. For that and other reasons, the commission hired an external investigator, Robert Shoaf, to handle the case. His report to the agency is expected next week.

________________________________________

Find Elizabeth Bluemink online at adn.com/contact/ebluemink or call 257-4317.

Irresponsible Attitude and Behavior

Case in point as to why Pioneer Natural Resources’ Oooguruk oil production facility should be temporarily shutdown, until such time this Texas based corporation can prove to State of Alaska oversight police that they are indeed responsible and competent to explore and exploit natural resources on Alaska’s North Slope, in the Beaufort Sea:

Alaska Oil & Gas Conservation Commission inspects Pioneer Natural Resources well ODSK-35 on May 12, 2010 and instructs Pioneer field personnel to replace temporary piping that is allowing this well to produce crude oil. On May 18th, Commission requests timing for the above mentioned resolution. On May 27th, Pioneer requests a meeting to discuss the above mentioned inspection and the Commission’s attempt to have Pioneer come into compliance and fix problems. No meeting is ever scheduled by Pioneer, a No-Show! On June 9th, Commission again warns Pioneer that the use of “temporary piping” was inconsistent with “good oilfield practice” and a possible violation of Alaska statutes. Pioneer did not respond. On June 16th, the Commission once again inquired about status of the “temporary” well piping and Pioneer was verbally instructed to shut the wells in immediately. Pioneer did not comply! On June 18th, Pioneer asserted that it was a “good oilfield practice” to utilize temporary piping to produce crude oil for sale. Finally on June 22nd, the Commission through correspondence warned the following:

The Commission recognizes there have been unexpected conflicts that have prevented direct communication between appropriate personnel of the Commission and Pioneer. However, for over a month, Pioneer has clearly and repeatedly been instructed to correct the problem or shut in the well. Pioneer’s failure to resolve this matter constitutes serious non-compliance and must be resolved immediately. In accordance, Pioneer is instructed to shut-in both wells immediately.

The above scenario is clear-cut evidence that this state cannot trust the Independents. With “Drill Baby Drill” the Sarah Palin legacy, what she left for this state to deal with, it is now starting to show its ugliness and if not stopped will ruin the Beaufort Sea. If the regulators cannot even get Pioneer to shut down wells that are violating the state statutes, because of unsafe practices, then this state is doomed and we see that Sarah Palin’s “DBD” is a wrecking ball, just like her run for the vice! Like already mentioned, if the state oversight is in-effective it can have devastating effects, making such oversight a useless tool in efforts to keep the environment safe for future generations to come, without responsible oil development. Write your representative, in fact call your representative and demand that PNR’s Oooguruk development project located on Harrison Bay of the Colville River delta watershed be stopped through a “Cease and Desist” order until such time the state can be guaranteed that the so far no give a crap attitude is changed, as it is a privilege to work the “slope”, not just a free-for-all crap shoot wherein oversight is just a suggestion!