JPO Order to Clean and Inspect Tanks at the VMT Update - We continue to monitor Alyeska's efforts to comply with the Order. In a recent letter to them, we noted that the material being deposited in the tanks is of low viscosity and may not impede the subsurface fire system as greatly as first thought. Recent success with the circulation of crude oil through the spider piping after reducing the material level through fluidization is encouraging. We will still require definite demonstrations that the subsurface fire foam system is operational and distributes foam evenly throughout the tanks.

Other aspects of the Order have been closed, some are incomplete, and some are in progress. Incomplete items include:

• A schedule for the installation of jump over piping and hydraulic tests on all of the tanks still to be tested should be submitted to JPO.
• We insist that more than one access road to the tank farm be available during the winter months for emergency access and egress.

Completed items are:

• A methodology for accurately determining sludge levels and quantities has been developed.
• A final written plan for implementing interim prevention and response measures was provided.
• Through coordination between Alyeska and JPO, maintenance frequency guidelines suggested by the National Fire Protection Association have been produced.

Work in progress includes:

• JPO has received a contingency plan for the prevention, detection, and prompt abatement of fire including an evacuation plan. We are evaluating this and will address the item separately in the near future.
• Management and disposition of sediment in storage tanks should be coordinated with the Alaska Department of Environmental Coordination.

JPO Executive Council - The Council consists of the heads of all participating JPO agencies. The Council met June 28 in Valdez to be briefed on items of mutual interest and concern. Briefing topics included Valdez Marine Terminal tank fire suppression, State Fire Marshal inspection results, tanker vapor control system, corrosion, Grant and Lease Renewal, and compliance issues for renewal.

Three JPO Quality Work Awards were presented during the meeting to Jim Helfinstine, Coast Liaison to the JPO, Commander Payton Coleman, US Coast Guard, and Lieutenant Virginia Kammer, US Coast Guard.

Pipe Shift near Atigun Pass - Alyeska briefed us on the believed cause of the shift in a section of pipeline south of the Pass; a pressure wave generated by the collapse of a very large vapor pocket. The shift caused several of the anchor assemblies to move significantly.

Excavation at VMT - Approximately three gallons of crude oil was found and removed during excavation of underground piping last week at the Terminal. Thirty cubic yards of soil could be contaminated. The source is currently under investigation but a small pipe leak is suspected to be the cause.

JPO Surveillances - The following is a list of recent surveillances conducted:

1. Corrosion investigation at milepost 710 on the belowground pipe.
2. Road and workpad bridge inspections at Stuart Creek; 4^th of July Creek; Little Tonsina 3 Workpad Bridge; and Little Tonsina #1 Workpad Bridge.
3. Section 29 of the Grant -Training of Alaska Natives - Native Employee Support; Termination/Notification; Developmental Opportunities; and Intern Programs.

Milne Point - The Division of Governmental Coordination is conducting a consistency review on this proposed project.

Alpine -. The hydrotest took place June 21. State Pipeline Coordinator's Office and US DOT staff were on site to observe. A crack in a weld was detected during the test. That section of the pipe was replaced, rewelded, and retested.

First oil in should be around August 1, and the volume is anticipated to be 70,000 bpd soon after startup.

Phil Brna has served as the Alaska Department of Fish and Game Liaison to JPO since 1990. He will be retiring from F&G effective July 7. Phil was recognized for his many contributions and years of service at the JPO Executive Council meeting June 28. Best of luck Phil and happy fishing.

Welcome back to Mike Thompson who has agreed to a return engagement with JPO, this time as ADF&G Liaison. He and Phil will be transitioning this week. Glad to have you back, Mike.

The Fairbanks Daily News-Miner and Valdez Vanguard conducted follow-up interviews on the pipe shift at Atigun Pass and Alyeska's corrective actions.

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The Joint Pipeline Office is a consortium of six State and five Federal agencies with responsibilities for regulating the Trans-Alaska Pipeline System and other oil and gas pipelines in Alaska. The JPO came into existence in 1990 and stemmed from a cooperative effort by the Bureau of Land Management and the Alaska Department of Natural Resources.