From: Carlson-Van Dort, Marit K (DEC) [mailto:marit.carlson-van.dort@alaska.gov] Sent: Friday, March 27, 2009 6:07 PM To: Rep. Bob Buch; Rep. Harry Crawford; Rep. Berta Gardner; Rep. Les Gara; Rep. Max Gruenberg; Rep. Beth Kerttula; Rep. Pete Petersen; Rep. Woodie Salmon; Rep. Chris Tuck; Sen. Johnny Ellis Cc: Governor Sarah Palin (GOV sponsored); Nizich, Michael A (GOV); Crome, Cora J (GOV); Balash, Joseph R (DNR); Gallagher, Gerald L (GOV); Lloyd, Denby S (DFG); Irwin, Tom E (DNR); Hartig, Lawrence L (DEC); Max Hensley; Katie Conway Subject: RE: WITH ATTACHMENT RE: Drift River Oil Terminal & Catastrophic Oil Spill Danger Dear Legislators, Thank you for your concern and interest in the Drift River facility situation. Commissioner Hartig has received your letter and has asked me to contact you and provide you with a preliminary response. We will respond to the questions raised in your letter soon. In the meantime, I would like to make sure that you have received the latest information on the current status at the Drift River Terminal. I will add your names to the distribution of the Drift River Situation Reports unless you respond to me requesting otherwise. I am attaching both a copy of the latest situation report released this afternoon as well as some recent photographs of the facility. CURRENT STATUS No oil releases have been observed or reported to date and the pipeline and terminal remain shut down. There are two crude oil storage tanks at the Drift River facility each of which contain approximately 75,000 barrels of crude oil. Of the remaining five, 4 are scrubbed out and completely empty, one tank is empty but has not been scrubbed out. The peak flood event occurred on March 22. Subsequent flood events have been smaller and it has been reported that a substantial portion of the snow and ice at the headwaters is gone. Additional flooding can be expected and could pose a threat. Whether additional flooding and lahars will overtop the protective containment is unknown but subject to continuous monitoring and assessment. The initial bottom survey at the loading dock showed no significant debris. The U.S. Coast Guard will determine when it is safe for vessel berthing such that oil can be transferred from the storage tanks to a crude oil tanker if needed. The tertiary containment system surrounding the tank farm remains intact and has withstood flooding which has occurred to date. Damage assessment work is underway and a restart plan that includes integrity checks of the pipeline and equipment will be completed before startup. BACKGROUND A Joint Command has been established to manage potential oils spills that may occur from the Drift River Oil Terminal and pipelines as a result of flood induced events caused by Mount Redoubt. The Joint Command includes DEC, USCG and Cook Inlet Pipeline Company Inc, the operator of the facilities. The Joint Command coordinates with the Alaska Volcano Observatory for notification of volcanic eruptions and flood warnings. Incident objectives include safety; ongoing monitoring of flood events; ongoing assessment of damage to facilities or pipelines; preparation of a re-start plan based on repair work, debris cleanup, logistics, operational status of equipment, validation of pipeline and tank integrity, and assessment of the tanker loading facility and ability to safely transfer crude oil; oil inventory management and a transfer plan that takes in to account production and supply interruptions, upstream impacts from well shut ins and availability of products to customers; evaluating resources at risk; heightened spill response readiness; and communications. Daily briefings and situation reports will continue until further notice. The website will be updated daily at: http://www.dec.state.ak.us/spar/perp/response/sum_fy09/090324201/090324201_index.htm Over flights and on the ground inspection and damage assessment work will continue as conditions allow. Please do not hesitate to contact me with any additional question or concerns. Sincerely, Märit Carlson-Van Dort Legislative Liaison Alaska Department of Environmental Conservation (907) 465-5871 phone (907) 465-5070 fax