	Introduction

The Trans-Alaska Pipeline System (TAPS) is the primary transportation link for 20 percent of the nation’s domestically produced oil. These findings, together with those from other reviews of TAPS, have focused even more attention on the pipeline’s condition. The assessments focused on compliance with the requirements and management systems relating to operational integrity. The study found that JPO was not effectively addressing the prevention of pipeline hazards. Specifically, we • assessed Alyeska’s progress in resolving deficiencies identified by the QTC • determined whether Alyeska’s planned actions for three areas of deficiency—electrical integrity, quality, and maintenance—will address these deficiencies; • determined whether regulators are taking action to improve regulatory oversight of the pipeline; and identified the root causes of the deficiencies. Alyeska Made Progress Completing Action Items

By the end of April 1995, Alyeska reported that it had completed work on 3,030 of the 4,920 action items—about 62 percent (see table 2.2). Completing the corrective actions will take longer than planned. Alyeska is correcting these deficiencies. It is • developing a master equipment list to identify the structures, systems, and components to be included in the TAPS quality program and developing a procedure for documenting and controlling the list; • developing a document establishing the importance of various equipment to ensure the integrity of TAPS and thus the extent to which elements of the quality program apply to the equipment; • developing a risk-based cause and corrective action program that will use maintenance histories to improve future reliability; and • updating the “as-built” documentation to ensure that drawings of all TAPS’ structures, systems, and components reflect current configurations, performing a limited functional check to ensure that the selected equipment operates as provided in specifications, and developing implementing procedures to ensure that the documentation and conditions of TAPS’ equipment and facilities remain current and consistent. For example, it has strengthened JPO’s regulatory staff, and JPO is in the process of reorganizing its monitoring program to address prior limitations. Taken together, however, the efforts set in motion over the past 2 years demonstrate that JPO is making a concerted effort to improve. JPO’s operating philosophy is intended to be one of quality management, which emphasizes preventing rather than reacting to problems through closer study and knowledge of TAPS’ systems and processes.
Why GAO Did This Study

Pursuant to a congressional request, GAO provided information on the progress made in correcting deficiencies in the operation and management of the Trans-Alaska Pipeline System (TAPS), focusing on: (1) whether the planned corrective actions will address deficiencies in the pipeline's electrical systems, quality, and preventive maintenance; (2) whether regulators are taking action to improve oversight of the pipeline; and (3) the root causes of pipeline deficiencies.

What GAO Found

GAO found that: (1) the pipeline contractor has corrected about 62 percent of the almost 5,000 identified deficiencies as of April 1995, but it does not expect to be finished until the end of 1996, 2 years later than it had originally planned; (2) the contractor has corrected most electrical problems, focused management attention on the quality program, and is overhauling its maintenance program; (3) if the contractor completes actions to address these deficiencies, the TAPS problems should be corrected; (4) pipeline regulators are making a concerted effort to increase staff and reorganize to strengthen their focus on monitoring contractor operations; and (5) the root causes of the pipeline's deficiencies include the contractor's philosophy of reacting to problems rather than conducting programs aimed at prevention and early detection and regulators' inadequate oversight of contractor operations.