- The Washington Times - Sunday, August 20, 2006

ASSOCIATED PRESS

The Interior Department is set to open a vast area of environmentally sensitive wetlands in Alaska to oil drilling, even as opponents point to corroding pipelines to the east at Prudhoe Bay as a reason to keep the area off limits.

The tens of thousands of acres in and around Lake Teshekpuk on Alaska’s North Slope are part of the oil-rich Barrow Arch that also includes the Prudhoe Bay fields that have kept oil flowing for decades.

Environmentalists and some members of Congress oppose the lease sale. Federal regulators and a House committee are investigating inspection and maintenance programs at BP Alaska, where widespread pipeline corrosion forced the partial shutdown of Prudhoe Bay oil production Aug. 6.

BP Alaska is a subsidiary of London energy giant BP PLC.

Government geologists think at least 2 billion barrels of oil and huge amounts of natural gas lie beneath the coastal lagoons, river deltas and sedge grass meadows, an area where caribou give birth to their calves and thousands of geese migrate each summer to molt.

Within days, the Interior Department will open tracts in the lake area for leasing. The winning bids will be announced in late September.

The lake and its surrounding wetlands are within the federal National Petroleum Reserve-Alaska (NPRA), 22 million acres set aside in 1923 by the federal government for its oil and gas resources.

Unlike the Arctic National Wildlife Refuge farther to the east, the NPRA is acknowledged by all sides to be an area for energy development.

Environmentalists argue that parts of it, especially the region around Lake Teshekpuk, should be excluded from the lease sales.

They contend that evidence of the risks to the environment was reinforced by the recent disclosure of shoddy maintenance, inadequate inspections and corroded pipes that led to the partial shutdown of North Slope oil production. BP Alaska has said it is replacing two-thirds of its 22-mile Prudhoe Bay feeder pipeline system because of corrosion.

The company has acknowledged it was wrong to rely on ultrasonic tests to monitor the pipes and not internal tests using “smart pig” technology, while also allowing a buildup of sludge in the pipes.

The oil industry says it spends tens of millions of dollars for environmental protection on the North Slope and uses modern technology to explore and develop oil fields in sensitive areas without a risk to wildlife and the environment.

“Oil is inherently a dirty business and there are some places where it should not be OK to go,” countered Aurah Landau of the Alaska Coalition, an environmental advocacy group.

She contends BP’s pipeline corrosion and inspection and maintenance lapses are not an aberration and that oil spills occur frequently on the North Slope.

Nineteen senators and 66 House members have urged Interior Secretary Dirk Kempthorne to reconsider offering leases in the Lake Teshekpuk area.

“Industry already has access to 87 percent of the Northeast area of the Reserve and providing them access to the remainder jeopardizes caribou and waterfowl populations and subsistence resources in one of the most important wetland complexes in the Arctic,” the House letter says.

Interior’s Bureau of Land Management said in its upcoming lease offering that it will limit the surface areas within the nearly 500,000 acres to protect geese molting and caribou calving areas.

The restrictions apply to roads and drilling pads, but not to elevated 30-inch pipelines.

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