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General News    H2'ed 7/6/10

Dangerous Cost Cuts at Alyeska Pipeline: "Yet Another Example of How BP Runs Things"

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Jason Leopold
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The investigation was launched following revelations that BP and Alyeska failed to conduct corrosion inspections on its pipelines.

Plumlee said in his letter he was contacted by "U.S. Federal Criminal Investigators (Special Agents)" after he had met with Hostler in November 2005 to discuss a promotion.

One of the federal law enforcement officers who questioned Plumlee, Truthout has confirmed, was Scott West, the Environmental Protection Agency's (EPA) former special agent-in-charge. West was the special agent-in-charge at the EPA's Criminal Investigation Division, who had been probing alleged crimes committed by BP and the company's senior officials in connection with the March oil spill. West said he could not discuss the Plumlee interrogation.

But Plumlee said in his March 17, 2006, letter to Chao that he was "made to understand by these Special Agents that I was not the 'target' of their investigation although I was reminded that lying to a Federal Agent was a felony and also obstructing justice was a felony."

"Understandably, I cooperated fully during three different days of interrogation by up to four Special Agents where they initially questioned me about environmental violations by BP and Alyeska, and then progressed to other areas where I provided a detailed account of Sarbanes-Oxley violations, Sherman Anti-Trust violations, Federal Energy Regulatory Commission (FERC) Common Carrier violations, Securities and Exchange Commission (SEC) violations, and various technical violations any of which could be identified as an 'imminent danger' to personnel under U.S. Department of Labor [Occupational Safety and Health Administration] requirements and retaliation against environmental whistleblowers who had detailed numerous violations under the various environmental acts. Also, I named and implicated a number of Alyeska executives and BP executives and senior managers to the Special Agents. Afterwards, I was forced by Alyeska to reveal my cooperation with the Special Agents or be faced with possible 'termination for cause.'"

Plumlee told federal investigators he was pressured to boost estimates of how much Alyeska was spending to fight corrosion on TAPS. Severe corrosion in one of BP's transit pipelines at Prudhoe Bay, which connects directly to TAPS, was the reason the company shut down its North Slope operations in 2006 following the large spill.

Plumlee claimed that company executives pressured him in December 2005 to alter the amount of money Alyeska spent on pipeline corrosion - from $28 million to $46 million - for the previous year, which he refused to do. But Alyeska apparently got someone else to inflate those figures, according to previously published reports and documents.

Plumlee added that it wasn't the first time he had been asked to cook the books on corrosion spending. "On September 19, 2005, an Alyeska executive asked him to pull together the numbers on corrosion spending for Steve Marshall, BP Exploration (Alaska) Inc.'s president," according to an April 5, 2005, report in the Fairbanks News-Miner.

Plumlee said after federal criminal investigators interrogated him he began to cooperate with Thebaud's investigation.

"I provided Charles Thebaud the same detailed information that I had provided the Federal Agents," Plumlee said in his letter. "Charles Thebaud, and my supervisor, Nathan Brock, Director of Strategic and Business Planning both took extensive notes during two 'interviews' where I held nothing back. The interviews lasted over six hours.

Plumlee alleged that after his initial interview with Thebaud, "Alyeska placed me under surveillance and [maintained] at least one set of documents identified as the 'Glen Plumlee - Secret File.'"

"A fellow Alyeska employee, who wishes at this time not to be identified, surreptitiously shared this file with me. During an after-hours review of those documents I saw numerous handwritten notes in the margins that showed that a senior Alyeska manager was directing the surveillance of me during time when I was not at work. That manager had given specific instructions on how the surveillance would take place. I made the Special Agents aware of the so-called 'Glen Plumlee - Secret File' and that I also suspected existence of other files and dossiers. I also notified my supervisor, Nathan Brock, as well as Kevin Hostler, CEO/President to cease and desist keeping any personnel files that I do not have access to."

Hostler has never publicly discussed Plumlee's claims.

Congressional Inquiries

Thebaud recently completed his investigation into Alyeska employees' concerns. A copy of his report, which has not been released to employees, was turned over to Stupak's committee.

People familiar with the report's conclusions said it's damaging and is harshly critical of Hostler's management style. Egan, the Alyeska spokeswoman, said Hostler was not available to comment on the report's critical conclusions into Hostler leadership.

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Jason Leopold is Deputy Managing Editor of Truthout.org and the founding editor of the online investigative news magazine The Public Record, http://www.pubrecord.org. He is the author of the National Bestseller, "News Junkie," a memoir. Visit (more...)
 
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