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Wednesday, August 16, 2006 - Page updated at 12:00 AM

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House panel sets hearing on how BP runs oil field

The Associated Press

ANCHORAGE — A congressional committee has scheduled a Sept. 7 hearing to examine the management of the nation's largest oil field by British operator BP.

The House Energy and Commerce Committee will look at BP's corrosion-control practices for its pipelines at Alaska's Prudhoe Bay, such as those involved in two spills this year before the partial shutdown last week of the sprawling oil field near the Arctic Ocean.

BP shut down the field after leaks and corrosion were found Aug. 6. After reviews of tests and discussions with regulators, BP decided it could keep the western half of the field open.

As of Tuesday, daily production was 150,000 barrels. The full production of 400,000 barrels a day won't resume until 16 miles of pipe are replaced.

The second leak followed repeated assurances from BP that a March spill at Prudhoe Bay was an anomaly and that the company's corrosion-control program was adequate, committee Chairman Joe Barton, R-Texas, said in a letter to BP's chief executive, John Browne. The March spill, estimated at up to 267,000 gallons, was the North Slope's largest.

"The fact that BP's consistent assurances were not well-grounded is troubling and requires further examination," Barton wrote.

"The consequent disruptions to energy production and delivery and resultant adverse impacts on American consumers and the American economy are not excusable. ... "

Tom Mueller, a BP spokesman, said the company had not been approached by the committee about the hearing. But he said BP is cooperating with state and federal officials.

Copyright © 2006 The Seattle Times Company

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