Exxon Mobil Corporation and Affiliated Companies, f.k.a. Exxon Corporation and Affiliated Companies - Page 19




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          Alaska Admin. Code tit. 20, secs. 25.105-25.170 (1980).  These              
          regulations are written only in terms of “plugging” the wells and           
          cleaning up “loose debris” and restoring the well sites to a                
          “generally level condition.”  The AOGCC regulations do not set              
          forth or describe either specific or general DRR obligations of             
          oil companies relating to the extensive Prudhoe Bay oil                     
          processing facilities not located at well drilling sites.                   
               In 1972, in anticipation of oil production at Prudhoe Bay, a           
          joint Federal-State commission was established to study Alaska              
          land use issues.  In 1979, the commission stated in its final               
          report that development activities in the Arctic “should not lead           
          to irreversible consequences” and that “areas impacted should be            
          capable of restoration to a natural state upon the completion of            
          development activities.”  (Emphasis added.)                                 

          TAPS Right-Of-Way Provisions                                                
               In contrast to the generally vague language of the                     
          DL-1 Leases relating to oil company DRR obligations in the                  
          Prudhoe Bay oil field, language in the TAPS right-of-way                    
          provisions relating to DRR obligations of the oil companies which           
          constructed and which operate TAPS is more specific.  As                    
          explained, TAPS was constructed, and operates today, under lease            
          rights-of-way granted in 1974 by the Federal and Alaska State               
          Governments to a group of seven pipeline companies, which include           
          subsidiaries of Exxon, ARCO, and BP.  The Federal and Alaska                





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Last modified: May 25, 2011