A message from the president

Transcription

1 2015 SUSTAINABILITY

2 A message from the president I am often asked, How is TAPS doing? Sometimes the questioner means, How many barrels of oil did we move today? Sometimes it means, How long can we keep TAPS operating? Sometimes it means, Will Sagavanirktok River flooding, or interior wildfires, or an isolation fitting weep cause a TAPS shutdown? The questioners understand that TAPS is a key component of Alaska s energy infrastructure, a critical element of Alaska s economy. Our ability to move oil safely, reliably and efficiently matters far beyond our fence lines. I am pleased to report that 2015, TAPS 38th year, was a strong performance year. Despite extreme spring floods, severe storms, summer wildfires, lower throughput, falling oil prices and aging infrastructure, Alyeska and TAPS contractor personnel sustained the high TAPS reliability and efficiency that owner companies, producers, shippers, refiners and Alaskans depend on. TAPS personnel compiled an outstanding record for safety and environmental protection. They completed a large project portfolio to support current and future system operating integrity. They personally supported many community needs across the state. Alyeska s focus on safe operation, effective maintenance, and emergency preparedness requires an all day, every day, round-the-clock commitment to excellence. Managers, supervisors, and employees along the line, in Valdez, Fairbanks and Anchorage all understand that not just what they do, but how well they do it, matters enormously. Their unrelenting focus on operational excellence, strong financial stewardship, teamwork and innovation, their operational and professional skill and discipline, and their willingness to personally take on the multiple challenges we faced in 2015 gave TAPS a good year. TAPS pride is not a slogan, it is how people who operate and manage TAPS define themselves. This summary illustrates some of the challenges and performance that made 2015 unique for TAPS. I hope you find it informative. We know the only easy day was yesterday. Our goal is to build on our successes, learn from our experiences, and sustain TAPS high performance through 2016 and beyond. TOM BARRETT President 2015 SUSTAINABILITY 2

3 OCCUPATIONAL SAFETY - Recordable Incidents Safety marked the safest year ever on TAPS, a culmination of Alyeska and contractor focus on a speak up-step up culture that emphasizes operational and professional discipline, no fear reporting and a TAPS commitment to getting everyone home safely every day. Alyeska employees and contractors logged more than 5.8 million hours of work with four OSHA recordable injuries, only two of which resulted in personal injury. This resulted in a Total Recordable Incident Rate of There were zero lost time injuries on TAPS in Alyeska personnel and contractors drove more than 7.6 million miles with no accidents that resulted in injuries. These achievements are particularly notable given many TAPS tasks take place in high-risk environments and harsh conditions, from Prudhoe Bay to Prince William Sound. Alyeska will continue relentless focus on safety in 2016, increasing emphasis on using predictive analyses with safety data to help identify and stay ahead of incident and injury trends. Reliability and Renewal DRIVING SAFETY - Preventable Vehicle Accidents In 2015, TAPS moved over 185 million barrels of oil, more than 508,000 barrels a day, with 99.5 percent reliability that included two well-executed 36-hour planned maintenance shutdowns to accomplish work that could not be conducted in flowing conditions. Maintaining this reliability took strong planning and coordination of operations, maintenance and repairs with projects of all sizes and complexities. At Pump Station 1, electrification and automation work crossed major milestones; new station pumps were installed and achieved forward flow; controls were cut over to Alyeska s Operations Control Center; and power was connected to the North Slope grid system. Pipeline personnel managed the run of a 10,600-pound, 17-foot smart pig down the entire mainline to collect pipeline data essential to integrity management and smoothly handled an increase in routine pigging activities. Teams added heat at multiple locations during winter to prevent freeze issues from developing. Important segments of underground station piping were moved above ground or inspected with a small, high technology crawler pig and repaired where needed. Teams wrapped up the final phase of a three-year project that tested all 176 mainline valves along TAPS, replacing one mainline gate valve that exceeded TAPS high leak-by standards. At the Valdez Marine Terminal, 236 tankers were loaded, a primary service berth was overhauled and industrial waste water systems and ballast water treatment systems were repaired. The last of 14 active 500,000-barrel crude oil storage tanks underwent its required inspection, and was repaired and returned to service. The people who did all this made it look easy - it wasn t SUSTAINABILITY 4

4 180 readiness and response drills conducted along the pipeline and in Prince William Sound. Environment Alyeska s people have an unwavering commitment to protecting Alaska s environment. TAPS oil movements in 2015 continued a trend of minimizing environmental impact. Teams successfully managed extreme flooding conditions of the Sagavanirktok Sag River near Pump Station 1 and along northern portions of the Dalton Highway. They helped keep some of Alaska s worst wildfires on record at bay from portions of TAPS and pump stations in the Interior. They safely managed a small weep discovered at Pump Station 10. They conducted 180 readiness and response drills along the pipeline and in Prince William Sound to be prepared for any emergency. And they assisted state and federal officials with the cleanup of two third-party tanker rollover spills along the Dalton Highway SUSTAINABILITY 6

5 Business Performance Substantial decline in oil prices created an uncertain economic environment for Alyeska, the energy industry, our employees, our contractor partners, state lawmakers, businesses and residents across the state. Our employees and our contractors understand this difficult environment and willingly rolled their sleeves up to take on this financial challenge directly at all levels of the organization. Alyeska, its contractors and the TAPS workforce placed heightened scrutiny on expenses and investments and improved the operating efficiency of TAPS without compromising safety, operational integrity or environmental protection ANNUAL SUSTAINABILITY REPORT 8

6 Community Across Alaska, Alyeska employees actively supported communities they live and work in through personal generosity and volunteerism, leadership with nonprofit organizations, support for numerous community activities, and giving through United Way. An annual Traveling Health Fair in Prince William Sound brought employees and health care providers to the region s remote communities for healthy lifestyles education. In Fairbanks, Alyeska helped stage an annual Track and Field Day, encouraging physical activity for 400 schoolage kids. Alyeska supported the Interior s largest annual canned food drive and a similar drive in Valdez. More than 130 Alyeska employees participated in the 2015 Anchorage Heart Walk, raising $29,000 in pledges. For the 18th year, Alyeska personnel supported a childrens reading program at Anchorage s Russian Jack Elementary School. Many Alyeska employees joined forces for successful United Way campaigns. In 2015, the combined efforts of Alyeska employees and pipeline contractors raised over $565,000 for this community endeavor. $565,000 raised for United Way 2015 SUSTAINABILITY 10

7 4 years in a row, World s Most Ethical Company. TAPS People Known for their focus on operational excellence, pride, innovation and teamwork, the shared integrity of Alyeska personnel earned Alyeska its fourth consecutive World s Most Ethical Company award in They also earned a Governor s Safety Award of Excellence and an Ocean Stewardship Award from the Alaska Sealife Center. Alyeska employees are 95 percent Alaska residents; 164 have been with the company for 20 years or more. Through its flagship Alaska Native Program and support of educational initiatives including the Alaska Native Science and Engineering Program at University of Alaska and the Pipeline Safety Training Center in Fairbanks, Alyeska stayed committed to diverse recruitment, employment, education and training opportunities SUSTAINABILITY 12

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