Agency issued warning letter to BP Alaska in April

LETTER: 'Probable violations,' federal agency tells company.

By BECKY BOHRER
The Associated Press

JUNEAU -- A federal pipeline agency last month issued a warning letter to BP Exploration (Alaska) Inc., finding "probable violations" in the company's handling of certain corrosion issues affecting its Endicott pipeline on the North Slope.

The letter from Dennis Hinnah, a deputy regional director with the federal Pipeline and Hazardous Materials Safety Administration, said BP failed as part of an inspection to provide records showing it was guarding against corrosion.

The letter also said the inspection uncovered signs of atmospheric corrosion and that BP didn't provide records to show they'd monitored for such problems.

The letter, which refers to a June 2009 inspection, was dated April 20, the same day an oil rig leased by BP, parent company of BP Alaska, exploded in the Gulf of Mexico, killing 11 workers and unleashing a massive spill.

<snip>

The federal pipeline regulator intensified its oversight of North Slope pipelines after two corrosion-caused leaks at the BP-run Prudhoe Bay field in 2006. One leak resulted in the biggest oil spill ever on the Slope. Investigators blamed the 200,000 gallons spill on corrosion and BP was eventually ordered to pay $20 million in fines and restitution.

The other leak prompted the temporary shutdown of half the oil field amid concerns of widespread corrosion. BP since has spent millions replacing pipes.

<snip>