HomeMy WebLinkAboutHoonah consolidate bulk fuel tank farm February 7, 2000TONY KNOWLES,GOVERNOR
DEPARTMENT OF COMMUNITY AND 333 WEST FOURTHAVE.,SUITE 220
C..
.ECONOMIC DEVELOPMENT PNONES ney07)269-4600
DIRECTOR'S FAX:(907)269-4645
ALASKA ENERGY AUTHORITY ENGINEERING FAX:(907)269-4685
February 7,2000
Mr.Robert Loescher
Chief Executive Officer
Sealaska Corporation
One Sealaska Plaza,Suite 400
Juneau,Alaska 99801
Subject:Hoonah consolidate bulk fuel tank farm
Dear ni sentir Poel
What follows is a brief overview of what has taken place thus far concerning
possible development of a consolidated bulk fuel tank farm for the Community of
Hoonah.
|regret that |did not have an opportunity to discuss the situation with Mr.Jan
Supler,Store and Fuel Division Manager for Ward Cove,before he wrote his
letter.A number of assertions were made which could have been dismissed
immediately had we discussed them.
|believe the best approach is to lay out for you the process that we use in
responding to bulk fuel storage deficiencies in rural Alaska.
The process began four years ago when we developed a Memorandum of
Agreement between the Alaska Energy Authority (formerly the Division of
Energy),The U.S.Coast Guard and the U.S.Environmental Protection Agency.
This agreement laid out a compliance schedule with dealing with bulk fuel
deficiencies.We continue to work under this compliance regime.
The compliance schedule is based on deficiency rankings generated from an
extensive database on the conditions of bulk fuel storage facilities in rural
Alaska.The database is comprised of information gathered by assessment
teams over a three-year period.This was put out to bid and the work was based
on current legal,regulatory and industry requirements and standards.
CC:Enc |er|Bede
Projects are selected primarily on the deficiency rankings,however,other factors
do play a part including community participation and financial contribution.
We also have in place a Memorandum of Understanding between the Denali
Commission,U.S.Coast Guard,Environmental Protection Agency and the
Alaska Energy Authority.This memorandum spells out the role each agency is to
play and provides for technical assistance from each agency on its area of
jurisdiction.
|am a little concerned with the statement that the Ward Cove tank farm has
been inspected by the U.S.Coast Guard and the Environmental Protection
Agency and is in compliance with regulations.This is true for the Coast Guard for
as far as its jurisdiction extends.The Coast Guard has jurisdiction over fuel
transfers from the supply vessel to the first valve within the tank farm's
secondary containment system.If the tank farm has a secondary containment
system,this is where the Coast Guard jurisdiction ends.It has no authority over
the tanks,manifold piping system,controls or distribution piping from the tank
farm.The rest of the tank farm falls under EPA,which has not conducted a
recent inspection of this tank farm.Instead,it relies on our inspection which
shows there are some deficiencies including no liner in the secondary
containment.
Mr.Supler assumes we are planning to build a tank farm which would be in
competition with Ward Cove.This is not the case.In the first instance,there is no
"go"on a new tank farm for Hoonah.If there were,it would be a consolidated
facility for all tank farms in Hoonah,including Ward Cove should it want to
participate.This is a serious misunderstanding and the record must be set
straight.
There are advantages to a consolidated system which would also benefit Ward
Cove if it participated and if a project moves forward,including:
*Ability to purchase fuel in large quantities qualifies the purchaser for volume
discounts which can mean very significant fuel cost savings (5 -10 -15 cents
per gallon);
«The new facility is code-compliant and is no danger of regulatory shut-down;
»The new facility does not present a threat to the environment or to the life,
health and safety of the community and its residents;
»Insurance costs will be lower because premiums are spread over all
participants;and,
«Maintenance costs are lower because the system is new and less likely to
need preventive measures.
|hope this provides a better understanding of the approach being taken by State
and Federal agencies on bulk fuel deficiencies in rural Alaska.It is obvious that
more communication is needed.Our door has been and remains open.We will
continue our policy of keeping all participants informed.If |can be of further
assistance,please contact me.
Sincerely,
ercy a Ye
Director
(s [320001 oo 6
Division of Energy
Preliminary Budget
Community 33125 |Hoonah Budget 15790 |Hoonah Bulk Fuet Revision No.:/
CODE |NAME CODE |PROJECT NAME
Preparer T.Ganthner Project Manager EAM Project Manager Code 14008 Date 12/8/99
Source(s)of Funding
Line Chart of Accounts Denali Commission PROJECT Grant/
TOTAL Contract #:
DOE FUNDING
1 71000 Personal Services $0 $0 $0 $0 $0 $0
2 72000 Travel and Per Diem $0 $0 $0 $0 $0 $0
3 73000 Contractual cw $24,500 $0 $0 $0 $0 $24,500
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4 74000 Project Materials/Supplies $0 $0 $0 $0 $0 $0
5 75000 DOE Equipment $0 $0 $0 $0 $0 $0
6 77000 Grants $0 $0 $0 $0 $0 $0
7 TOTAL DOE FUNDING $24,500 |$0 |so |$0 $o|$24,500 |[Sum of lines 1-10]
Project AR 55119-03 NOTES:Corrected 35%design costs.
Project CC 21753183
Project LC 40605701
OTHER PROJECT CONTRIBUTIONS
8 DOE-Managed Through Trustee $0
9 Not Managed By DOE $0
10 PROJECT TOTAL Le $602 [fe $24,500
Budget Approvals (initial and date)Date Date Date
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PLEASE RETURN onteinaL TO:Terri Ganthner Filename U:\tganthner\CapitalARs\Active Projects\HoonahBF.xls cc:Prj Mgr,Proj.Files,Han Choe,Contracts,Bert