BP Consent Decree

This is my response to the U.S. Department of Justice with respect to the “Consent Decree” wherein BP is to pay a $25-million dollar fine for an oil spill on the North Slope of Alaska in 2006:

In reference to “United States v. BP Exploration(Alaska) Inc.”, please enter the following “comment” as allowed under section 102 of the Consent Decree, “Public Participation” and entered in accordance with 28 CFR 50.7:

Relief Requested: The fines and penalties assessed upon British Petroleum Exploration(Alaska) Inc., by and through the U.S. Department of Justice, appear excessive and should be decreased accordingly, based on similarly situated EPA violators, the area wherein the violation occurred, and the amount of discharge that warranted a criminal violation.

History: In April of 2010, a complaint was filed upon Pioneer Natural Resources(PNR), a Texas based oil exploration corporation, with respect to illegal discharging of “used”, not for resale and possibly contaminated propylene glycol. This occurred at PNR's Oooguruk exploration and production facility located in Harrison Bay, Colville River Delta, situated offshore in the Alaska North Slope Borough proper. It is noted that the BP Ombudsman's Program assisted the efforts to have this complaint taken seriously. The individual filing said complaint, at the time a direct PNR employee, had used the BP program in the past while performing contract work at a North Slope BP facility, so credibility and worthiness was already established. It is believed that it was the interest of the BP Ombudsman that promoted the PNR management to take the employee complaint seriously. PNR management did, by instigating an internal investigation upon the glycol discharge allegations. PNR also incorporated the expertise of an attorney well versed in dealing with environmental issues and crimes and familiar with the workings of the EPA. According to a report filed with the Alaska Oil & Gas Conservation Commission – the entity that maintains jurisdiction upon Area Injection Orders and is the local oversight for EPA rules and regulation, to what can be legally permitted and discharged underground – PNR denied all allegations and admitted “zero” discharges of glycol or any other EPA regulated wastes. This report was also forwarded to the Region 10 EPA director and to the Alaska Attorney general's Office, said again, denying all allegations of illegal discharges at the Oooguruk facility. Soon after that, the employee that filed the original complaint left said employment with PNR and provided more evidence to the contrary, be it the company's own “Daily Log Book” - a legally binding document - wherein there existed excerpts and entries that documented the illegal glycol discharges. Upon receiving this evidence wherein PNR could no longer deny the discharge allegations, the investigation team through its retained attorney amended the report to the AOGCC and admitted to the illegal discharge, without a permit, to 49,000 gallons of used glycol. Upon receiving this information, the AOGCC assessed a penalty and fine that was in no way shape or form a deterrent. The fine and penalty amounted too $10,000 dollars. First and foremost, PNR did not notify the EPA as required by law. Secondly, at the first clear chance to admit this occurrence did indeed happen, PNR denied all such allegations, making this known to the oversight agencies, as if allowing “closure” upon the allegations and complaint, making it appear that it was a complaint by a disgruntled employee. This inconsistent fine with respect to the size of the discharge was due the fact that the AOGCC could find through the evidence that the illegal discharges occurred as documented on only two occasions, assessing the maximum fine of $5000.00 per occurrence. There were many undocumented discharges throughout the summer of 2010 to get rid of the glycol when conditions warranted the availability of pipeline capacity to slipstream the “glycol” into the injection water line. This fine amounts to approximately 20-cents per gallon, for what is truly considered illegal activity. On the other hand, the BP pipeline rupture was an accident, not intentional. It may have been caused by lack of maintenance, but once again said, not intentional like the PNR discharges. At PNR, the operators were instructed to pump the glycol for no other apparent reason but to get rid of it, as it could not be sold, possibly due contamination. There was originally over 180,000 gallon of glycol at the site. Most of it was sold upon completion of the facility start-up. What could not be sold was “sham” recycled, without a permit to the underground strata not designed to handle this fluid. For BP's pipeline leak, the fines and penalties amounted to approximately $117-dollars per gallon, well over the AOGCC assessed PNR fines and penalties. The BP fine and penalty in comparison demonstrates a case of abuse and should be reduced to reflect what PNR was assessed. Any other action or inaction this request may be considered discrimination upon BP, for an accident in comparison to a non-accident resulting in an environmental crime of choice.

Respectfully Submitted, May 6^th, 2010

Coincidence NOT

So everybody of authority or those blinded by the right are in awe that a baby polar bear has been rescued from the North Slope oil patch and zoo keepers are in the process of finding this recently born youngster a new home, for now it means city life at the Anchorage Zoo. Pathetic this awe! Pathetic this excitement! Pathetic the authorities that see this as useful advertisement with a happy ending! As it is more of the same “shock & awe” in my book, basically inaction that is nothing short a blitzkrieg attack on peacefulness, a zealous attack on nature. Interference has got to be man’s greatest evil. I used to be an avid Alaskan oil field worker, but that career fell short its glory and thus, allowed me to advance intellectually wherein now I am a strong conservationist. I guess evolution does work! And I have all the proof in the world to support my “conservationist's” attitude, especially targeting the North Slope Armageddon. What I have witnessed recently in the “patch” is a whole different mindset that is set on tearing apart what required many years to foster, wherein there existed some semblance of care and respect towards the Mother Earth and the natural inhabitants, including polar bears, the focus of attention was clear - all throughout the Prudhoe Bay oil field domain and 800-miles down the Trans-Alaskan-Pipeline. And the EXXON Valdez was no accident, so don’t blame the oil workers, or captain Hazelwood either. “Things are different today, I hear every mother say”! Just ask the sow! This polar bear rescue making headline news should never have been allowed to occur. It was caused by disruption from the new players on the leasing block, namely the “Independents”, outside corporations – some of foreign background - that have found a place to explore and exploit the “black gold” without the slightest regard for the environment. Because nobody is watching! Because nobody is doing their jobs! It has become a hands off, turn thy head, blindfolded we go affair. Talk about the hen house being raided! The bureaucrats have put up an “Open For Rape” sign at this state’s front door. The Arctic is doomed. May as well “nuke” the Arctic Ocean to get rid of the ice pack, to make way for unadulterated abuse just so Alaskans can continue to enjoy welfare - a.k.a. PFD. If some of our representatives had it their way, the “nukes” would have already been called into action. Remember, it is a waste land - according to Ted Stevens - so what’s the problem with a little more messy waste? Now the polar bear cub was found separated from its mom, in close proximity to the Alpine oil production facility, which is located in the Colville River delta. Wow! This is God’s country. Man has no permission to descend upon this area with giant drilling rigs, there is no justification to ruin this place. Now the fact that a polar bear is missing its mom is cause for concern. It is just not an anomaly, an aberration. See, a few weeks ago, there was a similar incident. Something is causing nature to go upset, and it is because of mankind’s interference and trespass. Over at Oliktok Pt., the ENI operators were surprised to wake another sow denning with a cub on Spy Island. Two incidents in less than three weeks time, this is no coincidence and is proof that this new age oil development is disrupting tranquility. The fact that the cub was orphaned, it is something that should be taken seriously and investigated. Something out of the ordinary caused this event, and it is not global warming. And the fact that ENI may have been operating in an area without a polar bear infra-red survey, this goes to show that oil development is causing undue harm to the polar bear population. This area is well known for its good habitat for denning. The fact that ENI did not realize there was a denning white bear with cub on the island – a man-made Alcatraz that will soon be the site of a gigantic and noisy drilling rig come fall, it is inexcusable. The permit to operate requires the operator to make sure there is no denning within a mile of man-made activities, through surveys, and if a den is found – from heat radiated by mom keeping her babies warm through a brutal winter – it is supposed to be off limits to all activity. Had they performed the necessary survey and found the den early on, it would have presented a dilemma with their plan of attack, to have a drilling rig placed on the island this season. See, it would have meant a delay and that equates to a delay in oil sent down the Trans-Alaska-Pipeline which means a delay in income for the state. The entire health and well-being of the North Slope is now tied to income. When that priority enters the equation of greed, it dooms everything else. What is going on in the oil patch to fill the void is sinful. And the way other “Independents” in this same area are running their operations without any oversight, of course the polar bear population will suffer. What do I mean “no oversight”? Fact of the matter is this. The state wants oil, at any expense, to fill the void in the Trans-Alaska-Pipeline. So it means turning away from any kind of oversight that could dampen enthusiasm to develop oil where no oil has been developed before. And that means going into pristine areas, were once not too long ago polar bears reigned above the nuisance of man and drilling rigs. So in ending, it is time for a moratorium, time to refocus our attention on ANWR, time to expand protection to all coastal areas, as we can no longer trust the bureaucracy. If not, we will loose in the end, as when polar bears begin to show signs of frustration and forced to abandon their security, abandon their young, there is a deeper problem that is brewing down below and the doomsday clock has run out of time. Support a moratorium on near-shore and off-shore oil exploration on Alaska's northern coastline, as it is getting too late and nature can no longer defend for itself against these “Independents”!

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.