Jay Sullivan Land Field Services Armand Spielman Alyeska Pipeline - - PowerPoint PPT Presentation

Armand Spielman Alyeska Pipeline Service Company

Jay Sullivan Land Field Services

The Story Starts . . .

 March, 1969, Armand receives a phone

call to immediately report to his supervisor.

 Accepts the Landman position with

TAPS .

 Goes to Washington D.C. to develop

the federal ROW request.

Federal Application

 June, 1969 – Harry Brelsford and Armand

deliver a truck-load of plat rolls to BLM.

Two Maj or Hurdles

 The 1958 Alaska S

tatehood Act authorized Alaska to select 103.5 million acres.

 Federal Native Land Issues.

None of this was done!

S ecretary of the Interior

Ex-Alaska Governor: Walter Hickel Assistant S ecretary: Russell Train

March,1969 to July,1970 The Big Push



TAPS punches a 56-mile haul road from Livengood to the Yukon River.



Using ice roads and bridges, TAPS slide equipment north and establish ten construction camps between the Yukon and Prudhoe Bay.



S ept 12, 1969 – First pipe delivered.



Everyone thought the pipeline was eminent!

National Environmental Policy Act of January 1,1970

 Invoked when federal money or a maj or federal

decision was required.

CE EA EIS  Established the Council of Environmental

Quality– Russell Train.

Original Federal ROW Plan

 Hickel to use the 1920 Mineral Leasing

Act.

 The Problem: Mineral Lease Act could only

authorize 50-foot wide ROW.

 The pipeline and haul road needed up to

300-foot widths.

1970 Law Warfare

 February 4 – Bettles and Allakaket sue TAPS

for breach of contract.

 March 9 – Five villages and Ten Athabaskans sue

TAPS for damages for lack of employment. Result of breakdown of negotiations with TCC.

 March 26 – Wilderness S

• ciety, FOE, and EDF

sue S ecretary of Interior for improper use of the 1920 Mineral Leasing Act.

Law Warfare Continued

 April 1 – Federal Judge Hart issues an

inj unction against the DOI for issuing ROW within a 19.8 mile stretch claimed by S tevens Village.

 April 3 – Governor Keith Miller responded

by announcing he will authorize the haul road ROW by using the 1866 Lode Act. TAPS had mixed feelings.

Governor Miller’s Haul Road ROW Plan

 Use the 1866 Lode Act. Confirmed by AG.  S

tate would finance the haul road. Oil producers would reimburse Alaska at 7.5% interest.

 The Problem: Lode Act could only authorize

ROW for the haul road. Producers were afraid of no return on their investment if the pipeline was not built. Backed out of plan in June 30, 1970.

 Miller’s humiliating July radio broadcast

would cost him re-election.

Law Warfare Continued

 April 5 –Three villages sue the Governor

and Transportation Commissioner to prevent them from granting the haul road ROW under the Lode Act.

 April 6: The Knockout Punch – WS

, FOE, and EDF amend their lawsuit accusing the DOI for violating NEP

• A. TAPS

and DOI start the EIS process.

TAPS On-the-Job Training

 End of April, 1970 – John Knodell and Quinn

O’ Connell call Armand. Need to hire interior natives.

 Jay S

ullivan develops a land surveying program to train ten men from Beaver.

 TAPS

then hires DNH to hydroseed the Livengood to Yukon River haul road during the summer of 1970.

Name Change

 August 14, 1970 –TAPS

consortium formed the Alyeska Pipeline S ervice Company.

 Headquartered in Bellevue, Washington with

• ffices in Fairbanks, Anchorage, and

Houston.

 Armand secures a long-term lease at 1835

S

• uth Bragaw S

treet, Anchorage.

Three S taging Areas

Prudhoe Bay – encumbered an existing ARCO- Humble Oil lease. 160 acres next to ocean. S tored 168 miles of pipe.

Fairbanks – Leased the Bentley Trust Land. 200 acres. Built a railroad spur. S tored 289 miles of pipe.

Valdez – Leased 300 acres from the old town

• site. S

tored 343 miles of pipe.

Alaska Native Claims S ettlement Act December 18, 1971

 Granted 44 million Acres to Alaska Natives.  Knodell and O’ Connell inserted language ensuring

the selections could not include potential TAPS

• r

haul road ROW.

 Established 13 native regional corporations and

allowed villages to form profit companies.

 The U.S

. would pay $462 million over 11 years to the regional corporations plus a 2% mineral royalty until it generated another $500 million.

TAPS Environmental Impact S tatement

 The very first EIS

in the nation.

 No prior policy regulating scope, so everything was

studied.

 The Draft EIS

contained 256 pages.

 Agency and Public comment covered 12,000 pages.  DOI issued the Final EIS

• n March 20, 1972. S

ix Volumes.

 Preferred Alternative – Prudhoe to Valdez pipeline.

Not through Canada.

 Alyeska reimbursed DOI $12.25 million for developing

the EIS . Alyeska spent at least another $9 million in support costs. ($83 million in 2018 dollars).

 The Federal Government still needed to amend the

Minerals Act or develop a new Act to authorize the ROW.

1970 - 1974 Proj ect Delay Devastated Alaska’s Economy

 High bankruptcy rate.  High unemployment rate.  A 1969 Prudhoe Bay lease sale generated

$900 million ($3.8 billion in 2018 dollars) for Alaska. The S tate managed to spend it within two years.

 By 1973, the S

tate was broke.

Valdez Land S candal

William “ King Fish” Arnold March 1971: Armand discovers someone is

• ffering $20,000 options to control a small

piece of land next to the Dayville Homestead for two weeks. Then a lawsuit is filed against the US FS to prevent the federal land from transferring to Alaska followed by an application to the Army Corps of Engineers to build a dock in front of the future VMT . King Fish wants Alyeska to pay top dollar for the homestead and trade and manufacturing claim. S ettlement: $2 million plus conditions.

Land Field S ervices Gold Claims

 Harry wanted to prevent a flood of scams when

the sale price hit the streets.

 Jay comes up with the idea of filing gold claims

along the proposed Alyeska ROW from Glennallen to Valdez.

 On December 29, 1971, Jay filed 148 claims

straddling the pipeline route.

 January 28, 1972, ADN displays purchase price

• n the front page. All hell breaks loose!

Middle Fork Koyukuk River

• 1969 and 1970, miners hastily

staked claims along the proposed pipeline route.

• Alyeska (LFS

) and BLM spent years gathering data to prove these claims were not sustainable.

• Claims also competed for

gravel resources.

Perfect S torm

 July 17, 1973 – S

enator Gravel Amendment to the Mineral Leasing Act. 49-49 S enate split. VP S piro Agnew voted to break the tie.

 August 1973 – Muammar Gaddhafi naturalized

the Libyan oil fields and doubled the price of crude.

 Upset over US

support of Israel during the S ix Day War, newly formed OPEC increases oil prices by 70% .

 October 19, Nixon pushes an emergency $2.2

billion relief package for Israel.

Perfect S torm Continued

 OPEC responded with a total oil embargo.  Congress overwhelmingly passes the Trans-

Alaska Pipeline Act to grant federal ROW.

 Nixon signs it into law on November 16,

1973.

“ Unique” ROW Permit

 Granted TAPS

construction material priority under the Defense Production Act of 1950. First private proj ect to receive this protection.

 Affirmative Action goals – especially Native hire

quotas.

 Established j oint S

tate/ Federal oversight office.

 Established oil-spill contingency fund – applies

land and sea: even in California waters.

 Prohibition of tankers discharging ballast water

in Valdez Arm. Land ROW permit regulating

• cean activities.

Right-of Way Permits

 January 23, 1974 – DOI issued federal ROW

grant – 54-feet for buried pipe and 64-feet for above-ground sections.

 March/ April, 1974 – BLM coordinate transfer

• f the haul road ROW to Alaska.

 April –ADNR issued the S

tate Certificate of Public Convenience and Necessity.

 May 2, 1974 – BLM transferred road ROW to

Alaska.

 May 3, 1974 –ADNR leased the S

tate pipeline and haul road ROW to Alyeska.

S

• cial-Economic Impacts to Alaska

 Outsiders starting showing up in early

1974.

 Construction started May 1974. Fairbanks

and Valdez boomed!

 Fairbanks shot from 18,000 in May 1974 to

88,000 in June 1975.

 Valdez went from 1,350 to 6,500 in one

year.

 Crime, overcrowding, and high housing

• prices. S

chools double-shifted. Utilities stretched beyond capacity.

ROW From:

 Federal Government:

376 miles

 State Government:

344 miles

 Native-Owned Land:

51 miles

 Private Land Owners:

29 miles

Amazing!

Of 149 parcels of private ownership,

• nly eight parcels required

condemnation! A tribute to the hard and persistent work of Alyeska and Land Field S ervices.

Armand’s Job Responsibilities

 Mediated a Teamster strike in Valdez.  Removed fortified road blocks.  Developed an Alaska Native j ob training

program

 S

topped Land S windles.

 Convinced Miners to lower their weapons.  Deactivated explosives.

“ Because people trust us, Armand.”

S

• me of the Gang