OPERATIONS CONTROL CENTER (OCC):

The OCC continually monitors all pump stations and valves using supervisory control and data acquisition (SCADA) systems. Real-time data is recorded and analyzed for anomalies or any indication of a pipeline leak. OCC pipeline controllers can remotely address abnormal operation by changing settings for pump speed or relief valves, or by issuing idle or stop commands to the mainline pumps. OCC controllers can also activate remote control valves. OCC monitoring and analysis systems include backup communications equipment and computers.

Barrels Pumped From Pump Station 1

There were 4,667,614 deferred barrels during April.

April throughput: 19,044,463 BBLS* Average: 634,815 BPD**

Year 2011: 71,297,680 BBLS* Average: 594,147 BPD**

*BBLS (barrels) = 42 Gallons **BPD = Barrels Per Day

PIPELINE 101GET TO KNOW THE PIPELINE

PIPELINE RELIABILITYAPRIL 2011 RELIABILITY FACTOR

TOM BARRETT President

TAPS Reliability Factor for April 2011

TAPS Reliability Factor for year 2011

100%93.86%

Recently, many people have asked me, at what point will the declining flow of crude oil in our pipeline become a problem? My response is simple: We have a problem now.

Challenges related to declining flow were abundantly clear during an unscheduled winter shutdown we experienced in January. This event should be a wake-up call to our state: Declining flow challenges are not facing us down the road, nor are they theoretical. These are issues we confront today. Without increased throughput in our pipeline, the difficulties will only increase as time passes.

We are already taking multiple actions to respond to declining throughput. We are monitoring and adjusting our pigging program to minimize the potential impact of wax accumulation on oil movement and pipeline integrity. We’re considering

methods to add heat to the line (including installing oil heating units), adding further external pipeline insulation, and using offline pump stations to recycle oil during winter to keep temperatures up. These measures are not quick or cheap, and they involve complex solutions to a complex problem.

TAPS is enormously important to our state and our nation. Revenue from the oil we deliver funds 80 percent of the state budget. We can’t afford to compromise Alaska’s oil transportation system. Our bottom line is simple: We urgently need more oil in our pipeline. It is critical that we increase safe and responsible production in Alaska.

PRESIDENT’S MESSAGE

pump stations to recycle oil during winter to keep

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www.alyeska-pipe.com

PRESIDENT’S MESSAGE

HEADLINE STORYAlyeska Hosts 11th Annual Health and Safety Fair

IN THE FIELDAlyeska Responds to ADEC Drill in Prince William Sound

OUR PEOPLE Holly SchoenbornPipeline Advisor

0102

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PRSRT STDU.S. Postage

PAIDPermit No. 69

Anchorage, AK

P.O. Box 196660, MS 542Anchorage, Alaska 99519-6660

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BI-MONTHLY NEWSLETTER www.alyeska-pipe.com

OUR PEOPLE FAIRBANKS

Holly Schoenborn Pipeline Advisor

VOICE FROM THE PIPELINE

Computers and IT have been an integral part of pipeline operations since oil first began to flow in 1977. From ensuring the reliability of critical services such as e-mail, to the automation of major pipeline functions, the IT department plays a major hand in making sure that Alyeska safely moves oil across the state of Alaska, and I’m proud to be a member of Alyeska’s IT team.

IN THE FIELDALYESKA RESPONDS TO ADEC DRILL IN PRINCE WILLIAM SOUND

The Alaska Department of Environmental Conservation (ADEC) called for an unannounced drill in Prince William Sound on April 18. Alyeska responded by activating the Valdez Emergency Operations Center (VEOC) and deploying assets and personnel to the field. The three-day drill required Alyeska to meet a variety of objectives, and over the course of the week involved some 114 vessels and more than 400 personnel.

Andres Morales, the acting SERVS director and incident commander, supervised the mobilization of three near-shore task forces and several support vessels off the southern and west coasts of Naked Island. Each task force was comprised of 27 vessels, and they deployed three different kinds of boom along the shore, protecting sensitive areas and concentrating simulated oil to skim off the water.

“The responders’ engagement was phenomenal,” said Morales. “Our motto is safety first, and everyone, from the vessel crews to the support personnel, definitely placed safety at the forefront of this exercise.”

The 500-2 response barge and the tugboat Endurance supported the three task forces, offloading mini-barges and boom to vessel participants. Alyeska staffed personnel for 24-hour operations during the exercise. Crews also simulated small vessel decontamination and scheduled three overflights a day. The drill officially ended at 2 p.m. April 20, but the demobilization effort lasted well into Friday, April 22.

Mike Day, SERVS operations manager, served as the operations section chief for the drill. “The response involved many moving pieces,” Day said. “But our team was able to keep everything safely going in the right direction.”

ADEC can call an unannounced drill at any time. Drills of this scope cost approximately $1.5 million, and are observed and evaluated by ADEC, the U.S. Coast Guard, and the Prince William Sound Regional Citizens’ Advisory Council. There were no safety incidents reported during the duration of the drill.

DESCRIBE YOUR WORK HISTORY WITH ALYESKA:DESCRIBE YOUR WORK HISTORY WITH ALYESKA:I started work as a pipeline technician on July 14, 1980. Most I started work as a pipeline technician on July 14, 1980. Most of my career has been spent in pipeline operations: nine years of my career has been spent in pipeline operations: nine years as a technician, eight years as a pump station supervisor, and as a technician, eight years as a pump station supervisor, and presently, nine years as a pipeline advisor. Between 1997-2002, I moved into the Employee Concerns Program.

DESCRIBE THE WORK YOU CURRENTLY DO FOR ALYESKA: Right now, I work for Senior Pipeline Director John Baldridge as a pipeline advisor. I have one of the best jobs in the company acting as a consultant to the pipeline director on a variety of ever-changing topics. I also advise and support the operations and maintenance supervisors and the area managers when asked. I usually work the “people-related issues” ranging from policies to hiring and other duties, as assigned. The “duties as assigned” makes the job interesting, challenging and always changing. The trick is to give good advice by drawing on the experiences, skill sets, and networks I have established over the years.

CAN YOU DESCRIBE A PARTICULARLY MEMORABLE INCIDENT THAT OCCURRED DURING YOUR YEARS WITH ALYESKA? Touring the pipeline and terminal with the new BFEP hires (nicknamed the “techlings” because they are training to become technicians) has been a great experience. I enjoy their enthusiasm, eagerness to learn, and their questions, all of which ultimately help me learn more about my work environment.

WHAT DO YOU ENJOY DOING OUTSIDE WORK?This time of year I want to plant something! I love to garden, read, do home-improvement projects and spend time at my cabin.

WHAT DO YOU ENJOY MOST ABOUT WORKING FOR ALYESKA?I enjoy the people. In the past 30 years I have met some incredible characters and have made some lasting friendships.

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Joseph Cody

IT Process Assurance Specialist

HEADLINE STORYALYESKA HOSTS 11TH ANNUAL HEALTH AND SAFETY FAIR

Alyeska partners with Bering Sea Marine/Alaska Marine Line and the State of Alaska Public Health System to bring health care providers to the communities of Prince William Sound.

Alyeska hosted the 11th Annual Traveling Health and Safety Fair April 10 - April 17. During this weeklong event, Alyeska used oil spill response resources to bring health care providers to the communities of Valdez, Tatitlek, Chenega Bay, Whittier and Cordova.

The health and safety fair has two objectives. The first is to bring health care providers to the remote and isolated communities of Prince William Sound (PWS) to administer basic services and share safety messages. The overarching goal is to improve the lives and well-being of the Sound residents.

The second objective is to strengthen Alyeska’s relationships in PWS communities. Alyeska, along with the five marine shippers who transport North Slope crude oil through PWS, recognizes the value of strong relationships with these communities.

“It is an amazing experience,” said Michael Levshakoff, Alyeska’s public relations coordinator. “The Bering Sea crew does an extraordinary job of navigating the waters of Prince William Sound and getting us in and out of the communities, and the providers are truly dedicated to delivering health care and wellness services to the five communities we visit.”

Tatitlek and Chenega Bay are the smallest and most remote communities along the route, each with populations of less than 200 and only accessible by sea or air (no roads). Valdez and Cordova are the largest communities with populations of 4,300 and 2,300 respectively. While these communities boast larger

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populations, there are still limited health care services. Cordova, like Tatitlek and Chenega Bay, does not have road access.

This annual event develops solid relationships between Alyeska and its PWS neighbors and, as a result, Alyeska is welcomed back each year with open arms.