BP Liberty Project: 1998-2002

In February 1998, BP Exploration (Alaska) Inc. (BPXA) submitted a Development and Production Plan (DPP) to the Minerals Management Service (MMS) for the proposed Liberty Project. A pipeline Right-of-Way application was submitted March 3, 1998. The Plan was subsequently revised: Revision 1 in November 1998 and Revision 2 in July 2000. The DPP and application initiated a Federal review process for the proposed BPXA Liberty project.

The BPXA DPP proposed the Liberty development as a self-contained offshore drilling/production facility located on a man-made gravel island in Foggy Island Bay; in approximately 21 feet of water, about 1.5 miles west of the abandoned Tern Island, with pipelines to shore. Infrastructure and facilities necessary to drill wells and process and export 65,000 barrels of oil per day to shore would be installed on the island. The DPP projected 14 producing wells, six water injection wells, two gas injection wells, and one disposal well (23 total) at a wellhead spacing of nine feet. Space for up to 40 well slots were be provided. Produced gas would be used for fuel gas and artificial lift, with the balance being re-injected into the reservoir. Seawater would be treated and used to waterflood the Liberty reservoir. Produced water woul be commingled with treated seawater and injected as waterflood. A 12-inch Sales Oil Pipeline would transport crude oil to the Badami Sales Oil Pipeline. The offshore portion of the pipeline would be approximately 6.1 miles long and the overland portion approximately 1.5 miles long to a tie-in point with the Badami pipeline system. Support onshore facilities to support this project would include use of existing permitted water sources, ice roads and ice pad construction, and development of a gravel mine site in the Kadleroshilik River floodplain. In addition, existing North Slope infrastructure would be used in support of this project.

In January 2002, BPXA publicly announced they were putting the Liberty Project on hold pending an ongoing re-evaluation of project configuration and costs.


CHRONOLOGY

May 2002: Liberty Development and Production Plan Final Environmental Impact Statement (OCS EIS/EA MMS 2002-020). This Environmental Impact Statement (EIS) covers the proposed Beaufort Sea Oil and Gas Development/Liberty Development and Production Plan. This document includes the purpose and background of the proposed action, alternatives, description of the affected environment, and the estimated environmental effects of the proposed action and the alternatives. The alternative analysis evaluates five sets of component alternatives (island location and pipeline route, pipeline design, upper slope-protection system, gravel mine site, and pipeline burial depth) that focus on the different effects of modifying major project elements. The EIS also evaluates the range of alternatives that could be chosen by combining different options from the component alternatives. In addition to the mitigation MMS requires in the lease and those built into BPXA’s Proposal, the EIS evaluates two proposed mitigating measures and their potential effects. The EIS also evaluates potential cumulative effects resulting from the BPXA Proposal and alternatives. The EIS also describes and analyzes the potential effects of the MMS’s Agency-Preferred Alternative and the Environmental Protection Agency’s Agency-Preferred Alternative.

In January 2002, BPXA publicly announced they were putting the Liberty Project on hold pending an ongoing re-evaluation of project configuration and costs. The MMS decided to publish and file the final environmental impact statement (EIS) for the Liberty DPP with Environmental Protection Agency (EPA), because MMS expects this final EIS will serve as a reference document for future projects.

Dec. 31, 2001: the National Marine Fisheries Service (NNFS) issued a biological opinion (BO) of the proposed Liberty project in the U.S. Beaufort Sea; and its effects on the bowhead whale in accordance with section 7 of the Endangered Species Act of 1973. Through informal consultation, NMFS agencies determined that bowhead whales are the only listed species, for which NMFS bears responsibility that would be adversely affected by this work. No designated critical habitat occurs in the area that would be affected by the proposed Liberty project. After reviewing the relevant information available on the biology and ecology of bowhead whales in the action a rea and the direct and indirect effects of the proposed Liberty project. NMFS concludes that the proposed project is not likely to jeopardize the continued existence of the bowhead whale.

Aug. 07, 2000: BPXA submitted additional copies of Revision 2 of the Liberty Development and Production Plan, associated Environmental Report (ER) Supplement and a revised Oil Spill Contingency Plan (OSCP).

Jul. 31, 2000: BPXA Revision 2 of the Liberty Development and Production Plan (DPP). After submittal of Revision 1 of the DPP in November 1998, BPXA continued project optimization studies. As a result of this ongoing work, BPXA identified several modifications to the Liberty project, including deletion of the products pipeline and the addition of a supplemental leak detection system (LEOS) to the sales oil pipeline. Accordingly, BPXA issued this Revision 2 of the DPP and an Environmental Report Supplement along with a revised OSCP to address those project modifications. The Environmental Report Supplement is not a stand-alone document, and is designed to be used in conjunction with the

Feb. 25, 1999: BPXA provides MMS with additional copies of Liberty Development and Production Plan and associated Environmental Report (ER) Supplement for distribution to applicable agencies and the public.

Nov. 09, 1998: BPXA submits a revised Liberty Development and Production Plan Rev 1 for the proposed Liberty Project.

May 24, 1998: BPXA provides additional information for the Liberty Development and Production Plan.

Jan. 30, 1998: BPXA submits a Liberty Development and Production Plan for the proposed Liberty Project.