March 29, 2002
Friday 2:00 pm

Juneau, AK - Alaska Department of Environmental Conservation Commissioner Michele Brown today released the second annual report on the environmental commitments in
Charter of Development for the Alaskan North Slope. The report continues DEC's efforts to keep Alaskans informed on BP's and Phillips's progress in meeting the environmental commitments in the Charter.

A few examples of things achieved this year include:

• The first double-hulled vessel, Phillips' Polar Endeavour, sailed into Prince William Sound this summer. This tanker features enhanced safety-related items, including twin propellers, twin rudders, and two independent steering systems.
• Phillips and BP have cleaned up and removed 540,000 cubic yards of drilling wastes on the North Slope.
• Cleanups of eight abandoned contaminated sites on the North Slope are well underway.
• Phillips and BP cleaned up and properly disposed of 983 hazardous abandoned drums.

Commissioner Brown said, "I commend BP and Phillips for these milestones, even as I stress the need for continued diligence by both industry and the state. I challenge Phillips and BP to fulfill the promise of the Charter by maintaining a high standard in Arctic oil spill research and development and by continuing to improve and strengthen corrosion monitoring and structural integrity programs. We must identify and correct deficiencies, and remain vigilant to ensure effective spill prevention."

When the Charter was negotiated, Governor Tony Knowles insisted that the Charter contain commitments to maintain the industry's environmental performance on the North Slope. "It is to BP's and Phillips' credit that they agreed to spend millions of dollars to find new, safe ways to do business on the North Slope and to clean up orphaned sites," Knowles said.
"It is equally important that the Department of Environmental Conservation continue to guide and verify performance in meeting these commitments."

The State of Alaska, BP, and ARCO Alaska agreed to the Charter for Development of the Alaskan North Slope on December 2, 1999. As set forth in the Charter agreement, BP and ARCO agreed to sell a pre-determined percentage of their Alaska interests to a third "qualified company" prior to their merger in order to prevent a monopoly and ensure continued competition. Phillips Petroleum Company purchased the stock of ARCO Alaska,
Inc. and, with BP, assumed responsibility for fulfilling the Charter obligations.

The Charter agreement was negotiated to address state concerns over the merger of BP and ARCO, and the transfer of the latter company's Alaska assets to Phillips Petroleum. This is the first time the resolution of antitrust concerns in a commercial merger of this scale has included environmental terms. In addition to the terms that resolved anti-trust
matters and the environmental provisions, the Charter commits the two companies to hiring Alaskans and using Alaskan companies, continued donations to Alaska charities and non-profit groups, and an annual endowment to the University of Alaska.

Related Information:

The Environmental Commitment To Protect Alaska's North Slope Report

 

Source of News Release:

Alaska Department of Environmental Conservation
Web Site

 

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