ExxonMobil | Northwest Coast Energy News

The United States Coast Guard says it is monitoring repairs aboard the liquid natural gas carrier Excel in Homer, Alaska, Friday, May 1.

According to a news release from Coast Guard Sector Anchorage, USCG issued an order for the vessel to remain anchored in Kachemak Bay near Homer after the 908-foot, Belgium-flagged vessel experienced a loss of propulsion due to a failed engineering gasket while inbound to Cook Inlet Monday.

The Excel was bound for the existing LNG facility, the Kenai LNG Plant, located in Nikiski on the Kenai Peninsula, in Alaska. The state of Alaska is planning to expand the LNG facilities there, and that site is a potential rival for British Columbia’s LNG export plans.

The Coast Guard release says:

The Excel was examined by Coast Guard inspectors from Marine Safety Detachment Homer, Tuesday, who conducted a Port State Control annual exam and verified the engineering gasket was replaced.

While preparing to get underway Wednesday, the vessel experienced an automated engineering casualty and canceled its voyage until a Bureau Veritas (BV) classification surveyor could arrive and verify the engineering casualty was fully resolved. After arriving aboard the vessel, the class surveyor directed the vessel’s crew to test the automated engineering system and deduced that the casualty was a product of a faulty engine order telegraph; a device used on ships for the pilot on the bridge to order engineers in the engine room to power the vessel at a certain desired speed. Coast Guard Sector Anchorage issued another order for the vessel to remain in Kachemak Bay.

Friday, the vessel was allowed to continue sailing to her destination at the ConocoPhilips LNG plant in Nikiski after additional safety measures were implemented. As part of the safety measures, the tug Stellar Wind escorted the vessel from Kachemack Bay to Nikiski and a second tug, the Glacier Wind, stood by in Nikiski to assist with docking operations.

The Excel completed her voyage and safely moored at the ConocoPhilips pier in Nikiski at approximately noon Friday where it remains until permanent repairs are verified by the class surveyor and Coast Guard inspectors.

“Ensuring safe navigation in Western Alaska, particularly in Cook Inlet, is one of my highest priorities,” said Capt. Paul Mehler III. “Our crews worked closely with the Southwest Alaska Pilots Association, the class surveyor and towing vessel industry to coordinate a safe and secure transit of the Excel from Kachemak Bay to Nikiski. The weather was also in our favor with clear skies, light winds, and steady ebb tide during the transit in Cook Inlet.”

Kenai LNG — The Kenai Alaska LNG plant (ConocoPhillips)

The LNG export plant at Nikiski was built in 1969 by Phillips Petroleum and Marathon Oil. Phillips later merged with Conoco and subsequently purchased Marathon’s 30 per cent share. The Nikiski plant sent LNG shipments to Japan from 1969 to 2010 under long-term contracts with Tokyo Gas and Tokyo Electric, when the contracts expired.

In 2011 ConocoPhillips announced that it would be ceasing LNG exports from Kenai and preserving the plant for potential future use.

With the LNG rush, market conditions changed and the the plant resumed making LNG in early 2012 and exported four cargoes to Asian customers over the course of that year.

In March 2013, the export licence expired and the LNG plant was put on standby. As interest in LNG grew, and at the urging of the state of Alaska, in December 2013 ConocoPhillips Alaska applied to resume LNG exports and the U.S. Department of Energy approved the resumption in April, 2014. ConocoPhillips says it received authorization to export a total of 40 BCF of liquefied natural gas over a two-year period from 2014 through 2016.

The Alaska LNG project is “a proposed $45 to $65 billion liquefied natural gas export project – it would be the largest single investment in Alaska history. The project has the potential to create between 9,000 and 15,000 jobs during the design and construction phases; plus approximately 1,000 jobs for continued operations. In addition to generating billions of dollars in revenue for Alaska, the project will provide access to natural gas for Alaskans.” The project’s participants are the Alaska Gasline Development Corporation (AGDC) and affiliates of TransCanada, BP, ConocoPhillips, and ExxonMobil.

Related
First of six LNG shipments delivered at Nikiski
Alaska Journal of Commerce, May 2014

Alaska LNG fact sheet. (PDF)

Kenai LNG fact sheet (PDF)

On March 24, 1989, the tanker Exxon Valdez plowed into Bligh Reef in Alaska’s Prince William Sound, spilling 260,000 to 750,000 barrels or 41,000 to 119,000 cubic metres of crude oil.

That was 25 years ago. The media loves anniversary stories and the Exxon Valdez look-backs and updates are already ramping up—right in the middle of the Kitimat plebiscite on the Northern Gateway pipeline and terminal project.

The hashtag #ExxonValdez25 is beginning to trend, based on a Twitter chat for Monday sponsored by the US National Oceanic and Atmospheric Administration.

The voters of Kitimat who will have to cast their ballots on the Joint Review Panel’s interpretation of the Northern Gateway proposal will find once again that the JRP tilted toward the industry and downplayed the lingering risks from a major tanker disaster—and that means neither the pro nor the anti side can be happy with the events that will be marked on March 24, 2014.

The Exxon Valdez accident is part of the Joint Review Panel findings that the economic benefits of Northern Gateway outweigh the risks. The JRP generally accepted the industry position, taken by both Northern Gateway and by ExxonMobil that Prince William Sound has recovered from the Exxon Valdez incident, something that is fiercely debated and disputed.

One area that is not in dispute is that the Exxon Valez disaster brought laws that forced energy companies to use double-hulled tankers. However, commercials that indicate that Northern Gateway will be using double-hulled tankers because the company respects the BC coast is pushing things a bit far, since those tankers are required by law.

Northern Gateway told the Joint Reivew Panel that

on a worldwide basis, all data sets show a steady reduction in the number
and size of oil spills since the 1970s. This decline has been even more apparent since regulatory changes in 1990 following the Exxon Valdez oil spill, which required a phase-in of double-hulled tankers in the international fleet. No double-hulled tanker has sunk since 1990. There have been five incidents of double-hulled tankers that have had a collision or grounding that penetrated the cargo tanks. Resulting spills ranged from 700 to 2500 tonnes

The Haisla countered by saying:

The Haisla Nation said that, although there have been no major spills since the Exxon Valdez spill in Prince William Sound, there were 111 reported incidents involving tanker traffic in Prince William Sound between 1997 and 2007. The three most common types of incidents were equipment malfunctions, problems with propulsion, steering, or engine function, and very small spills from tankers at berth at the marine terminal. The Haisla Nation said that, in the absence of state-of-the-art prevention systems in Prince William Sound, any one of those incidents could have resulted in major vessel casualties or oil spills.

A local daily newspaper, The Anchorage Daily News sums it all up:

The herring of Prince William Sound still have not recovered. Neither have killer whales, and legal issues remain unresolved a quarter of a century later. Monday is the 25th anniversary of the disaster, in which the tanker Exxon Valdez ran aground on Bligh Reef and spilled at least 11 million gallons of oil into the pristine waters of the sound.

Prince William Sound today looks spectacular, a stunning landscape of mountainous fjords, blue-green waters and thickly forested islands. Pick up a stone on a rocky beach, maybe dig a little, though, and it is possible to still find pockets of oil.

“I think the big surprise for all of us who have worked on this thing for the last 25 years has been the continued presence of relatively fresh oil,” said Gary Shigenaka, a marine biologist for the National Oceanic and Atmospheric Administration.

Britain’s Sunday Telegraph headlined: Exxon Valdez – 25 years after the Alaska oil spill, the court battle continues

The legal dispute over the spill is still ongoing, with the Telegraph’s Joanna Walters noting:

[S]tate senator Berta Gardner is pushing for Alaskan politicians to demand that the US government forces ExxonMobil Corporation to pay up a final $92 million (£57 million), in what has become the longest-running environmental court case in history. The money would primarily be spent on addressing the crippled herring numbers and the oiled beaches.
“There’s still damage from the spill. The oil on the beaches is toxic and hurting wildlife. We can’t just say we’ve done what we can and it’s all over – especially with drilling anticipated offshore in the Arctic Ocean – this is significant for Alaska and people around the world,” she told The Telegraph.

An ExxonMobil spokesman then told The Telegraph, the energy sector’s standard response:

Richard Keil, a senior media relations adviser at ExxonMobil, said: “The overwhelming consensus of peer-reviewed scientific papers is that Prince William Sound has recovered and the ecosystem is healthy and thriving.”
But federal scientists estimate that between 16,000 and 21,000 gallons of oil from the spill lingers on beaches in Prince William Sound and up to 450 miles away, some of it no more biodegraded than it was at the time of the disaster.

The Sunday Telegraph chronicles which species have recovered in Exxon Valdez: Animal populations in Prince William Sound, Alaska

Overall, the Exxon Valdez disaster was, as US National Public Radio reported, a spur to science. But NPR’s conclusion is the exact opposite of that from the Northern Gateway Joint Review Panel—at least when it comes to fish embryos.

Why The Exxon Valdez Spill Was A Eureka Moment For Science

Twenty-five years of research following the Exxon Valdez disaster has led to some startling conclusions about the persistent effects of spilled oil.
When the tanker leaked millions of gallons of the Alaskan coast, scientists predicted major environmental damage, but they expected those effects to be short lived. Instead, they’ve stretched out for many years.
What researchers learned as they puzzled through the reasons for the delayed recovery fundamentally changed the way scientists view oil spills. One of their most surprising discoveries was that long-lasting components of oil thought to be benign turned out to cause chronic damage to fish hearts when fish were exposed to tiny concentrations of the compounds as embryos.

(NPR also reports on the The Lingering Legacy Of The Exxon Valdez Oil Spill)

It seems that some species recovered better than others from the oilspill.

For example, the recovery of the sea otter population has received widespread media coverage, but with widely divergent points of view. The more conservative and pro-industry writers point to the recovery of the otter population, while environmental coverage stresses the quarter century it took for the otter population to rebound.

Scientific American online and other media outlets reported 25 Years after Exxon Valdez Spill, Sea Otters Recovered in Alaska’s Prince William Sound quoting a report from the U.S. Geological Survey that said that spill killed 40 percent of the 6,500 sea otters living in the sound and more in 1990 and 1991.USGS reported that the main sea otter population in the sound was 4,277 in 2013.

Although recovery timelines varied widely among species, our work shows that recovery of species vulnerable to long-term effects of oil spills can take decades,” said lead author of the study, Brenda Ballachey, research biologist with the U.S. Geological Survey. “For sea otters, we began to see signs of recovery in the years leading up to 2009, two decades after the spill, and the most recent results from 2011 to 2013 are consistent with recovery

The Joint Review Panel generally accepted Northern Gateway’s and the energy industry’s evidence on the Exxon Valdez incident and concluded

The Panel’s finding regarding ecosystem recovery following a large spill is based on extensive scientific evidence filed by many parties, including information on recovery of the environment from large past spill events such as the Exxon Valdez oil spill. The Panel notes that different parties sometimes referred to the same studies on environmental recovery after oil spills, and drew different conclusions.

In its consideration of natural recovery of the environment, the Panel focused on effects that are more readily measurable such as population level impacts, harvest levels, or established environmental quality criteria such as water and sediment quality criteria.

The Panel finds that the evidence indicates that ecosystems will recover over time after a spill and that the post-spill ecosystem will share functional attributes of the pre-spill one. Postspill ecosystems may not be identical to pre-spill ecosystems. Certain ecosystem components may continue to show effects, and residual oil may remain in some locations. In certain unlikely circumstances, the Panel finds that a localized population or species could potentially be permanently affected by an oil spill.

Scientific studies after the Exxon Valdez spill indicated that the vast majority of species recovered following the spill and that functioning ecosystems, similar to those existing pre-spill, were established.
Species for which recovery is not fully apparent, such as Pacific herring, killer whales, and pigeon guillemots, appear to have been affected by other environmental factors or human influences not associated with the oil spill. Insufficient pre-spill baseline data on these species contributed to difficulties in determining the extent of spill effects.

Based on the evidence, the Panel finds that natural recovery of the aquatic environment after an oil spill is likely to be the primary recovery mechanism, particularly for marine spills. Both freshwater and marine ecosystem recovery is further mitigated where cleanup is possible, effective, and beneficial to the environment.

Natural processes that degrade oil would begin immediately following a spill. Although residual oil could remain buried in sediments for years, the Panel finds that toxicity associated with that oil would decline over time and would not cause widespread, long-term impacts.

The Panel finds that Northern Gateway’s commitment to use human interventions, including available spill response technologies, would mitigate spill impacts to ecosystems and assist in species recovery..

It is clear, however, from the local coverage in Alaska and from the attention of the world’s media that Prince William Sound has not fully recovered from the Exxon Valdez incident (it may yet in who knows how many years). Anger and bitterness still remains among the residents of Alaska, especially since the court cases are dragging on after a quarter century.

Those are the kinds of issues that Kitimat residents will face when they vote in the plebiscite on April 12. Just who do the people of Kitimat believe, those who say the chances for a spill are remote and the environment and the economy will quickly recover? It probably depends on whether or not you consider 25 years quick. Twenty-five years is quick in geological time but it is a third or a half of a human life time.

As for the residents of Kitamaat Village, and probably many people in Kitimat, Haisla Chief Counsellor Ellis Ross summed it up in a Facebook posting on Sunday

If this happens in Kitamaat, all those campaigning for Enbridge will pack up and leave for another coastline to foul. Haisla don’t have much of a choice. We would have to stay and watch the court battles on who should pay what.

Ross is right. Whether it’s Prince William Sound or Douglas Channel, the people who live the region are stuck with the mess while the big companies walk away and the lawyers get rich.

Anniversary stories (as of March 23, 2000 PT)

Alaska Media

Valdez Star
First Associated Press story on Exxon Valdez Oil Spill reprinted

KTUU

Exxon Valdez Oil Spill 25th Anniversary: Alaskans Remember

Alaska Dispatch

Exxon Valdez oil lingers on Prince William Sound beaches; experts debate whether to clean it up

While Alaska’s Prince William Sound is safer, questions linger about preventing oil spills

Recalling the shock and sadness of Exxon Valdez spill 25 years ago

How the Exxon Valdez spill gave birth to modern oil spill prevention plans

Seward City News
25 years later Exxon Valdez memories still stink

Bristol Bay Times
Exxon lesson: Prevention, RCACs the key to avoiding future disaster