Exxon Mobil Corporation and Affiliated Companies, f.k.a. Exxon Corporation and Affiliated Companies - Page 45




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          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 total            




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