- 45 - portion of the tundra with gravel dikes or berms. They constructed other pits, called “containment” and “flare” pits, to collect escaped hydrocarbons during oil production. The AOGCC regulations from the period at issue provided that, upon abandonment of wells, the pits at well sites must be filled and the well sites left in a clean and generally level condition. Exxon’s plan for closing the pits upon abandoning and plugging the wells uses the so-called freeze-back-in-place method, which involves placing on each pit a 6-foot layer of gravel fill with a domed cap. The insulating effect of the gravel cover keeps the waste located in the pits permanently frozen, thereby containing the waste in place. During the years in issue, freeze-back in place represented an acceptable method of pit closure. Exxon’s estimated DRR costs associated with pit closures include wages, fuel, rental of equipment, supplies, and hauling of gravel and equipment. Charles E. Wilson, a civil engineer and employee of Harding Lawson Associates, a large environmental remediation and civil engineering firm with an Anchorage office, developed Exxon’s pit closure plan and estimated the related DRR costs. Mr. Wilson is experienced in closing pits and moving gravel on the North Slope. Mr. Wilson estimated total PBU pit closing costs in the Prudhoe Bay field in 1970 and 1980 dollars to be $152,720 for each of the 174 pits for which an estimate was done (for a totalPage: Previous 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 Next
Last modified: May 25, 2011