Alaska: Money v. Law

Ever since oil reserves of at least 5 billion barrels were discovered on Alaska's North Slope, oilmen have been wondering how to get the commodity to market. Some suggest sending it across the ice-choked Northwest Passage to the U.S. East Coast on supertankers. Others propose a pipeline through western Canada. But most Alaskans are betting on a controversial pipeline that would run the 773 miles to the ice-free port of Valdez on Prince William Sound.

Last month Interior Secretary Walter J. Hickel, a former Governor of Alaska, said that he would sign a permit for construction of the line. The only thing delaying the $1 billion project, he added, was a "thorough engineering and design analysis" to make sure that the line would not harm the Alaskan environment.

Hot Spill. Many Alaskans are desperate to start right away. Scores of local businessmen who have invested in the project fear bankruptcy if work does not begin soon. Hundreds of construction workers and an estimated $40 million worth of heavy equipment stand idle in the thin spring sunshine: 150 miles of 48-in. steel pipe are rusting in stockpiles near Valdez. Last week Alaska Governor Keith Miller led a delegation of 150 men to Washington, where they lobbied hard for two days. By the time they flew home, they had encountered failure and success--both at the hands of Walter J. Hickel.

Hickel pointed out that the proposed line would carry hot oil over frozen soil. Unless designed with extreme care, he insisted, it would act like a hot poker on a cake of ice. After thawing the permafrost, the line might sag into the slush and finally break, spilling oil that could do great harm because it would last for years. Moreover, the line's route would cross earthquake zones. Since each mile of pipe would have a capacity of 100,000 barrels of crude, any break in the line could have disastrous consequences.

The dangers are well known to the engineers of the Trans-Alaska Pipeline System, a consortium of eight oil companies and their pipeline subsidiaries. Obeying strict stipulations written by the Interior Department and the U.S. Geological Survey, the engineers have ordered corrosion-resistant steel pipe and plan to provide remote-control shut-off valves along the route. In addition, they must respect the ecology of the areas the pipe crosses. However, their plans call for burying 90% of the pipeline in the permafrost, while the Geological Survey wants about 50% of it raised on stilts over the tundra. Until the differences can be worked out, Hickel says, work on the pipeline will not begin.

Circumvention. Even so, the Alaskans may have found a way to help their troubled economy. As part of the pipeline project, a $120 million road would have to be built on what is now federally owned land from the Yukon River to the oilfields. Last month a U.S. district court temporarily enjoined Hickel from issuing permits to build either pipeline or road. Reason: they exceed right-of-way widths specified in the Mineral Leasing Act of 1920, and do not fully comply with the National Environmental Policy Act of 1969, which requires a complete statement of the ecological impact of such projects. Still, Hickel and Governor Miller believe that, strictly speaking, the road is not covered by the law and is at least arguably independent of the pipeline. If Alaska can claim the land from the Federal Government, the state can build the road at its own expense. Last week, with no objection from Hickel, Miller set out to do just that.

This unabashed attempt to circumvent a federal court order left some people aghast. Said Russell E. Train, chairman of the White House Council on Environmental Quality: "It is my personal opinion that the construction of the road in question should not proceed until and if a pipeline route is determined." Conservation groups are continuing to try to stop Governor Miller in court.

This file is automatically generated by a robot program, so reader's discretion is required.