
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, April 10, 1991                   TAG: 9104100462
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-3   EDITION: EVENING 
SOURCE: The Washington Post
DATELINE:                                 LENGTH: Medium

REPORT: ALASKA OIL CHIEFS KNEW SPILL RISKS

A year before the Exxon Valdez oil spill, oil-industry officials - who had long pledged to make their shipping operations "the safest in the world" - knew that their spill-fighting capabilities were inadequate but chose not to invest in recommended improvements, a congressional investigation has found.

Aleyeska Pipeline Service Co., the oil-industry consortium that oversees the shipping of Alaskan oil, concluded in 1988 that "immediate, fast response" to a spill in the center of the sound was "not possible with present equipment," according to internal documents obtained by the staff of Rep. George Miller, D-Calif.

Contrary to Aleyeska's safety pledge, consortium operators rejected their own staff's recommendations that they purchase additional spill-fighting equipment, such as a large-capacity oil-storage barge, the documents show.

An Aleyeska spokeswoman acknowledged Tuesday that the consortium had not been adequately prepared to cope with the Exxon Valdez spill, but said that Alaska officials were well aware of the deficiencies and she denied any attempt to deceive the public. "The industry and the state did not plan for a spill of that magnitude," said the spokeswoman, Marnie Isaacs.

In a related development, a new assessment by state and federal scientists revealed far greater devastation to some species of marine life and wildlife than previously reported. The latest estimate of deaths to sea otters ranged from 3,500 to0,000.

A Justice Department report said the pollution was causing lasting effects on such newly identified victims as the river otter, which are said to be accumulating petroleum byproducts in their tissues, losing body weight and moving in more erratic patterns.

The federal government and Alaska have agreed to drop all criminal claims against Aleyeska as part of a settlement agreement with Exxon, the tanker operator and a member of the consortium. The settlement, which required Exxon to pay $1.1 billion toward restoration programs in the sound, must still be approved by the Alaska legislature and a federal judge, Russel Holland.

But in a letter Tuesday to Holland, Miller, vice chairman of the House Interior Committee, said the settlement "fails to hold Aleyeska accountable . . ." and should be reconsidered.

"This was like the Challenger disaster - the system failed," Miller said in an interview. "These people would tell the state legislature, the government of Alaska, the Alaskan people anything they could to get their way . . . and as a result we had a national tragedy."

A Justice Department spokeswoman said government attorneys were "studying" Miller's findings.

by CNB