The following is a part of an ongoing project to evaluate some of the key Oil Industry companies and their 10-Q statements to evaluate the status of their Y2K efforts and determine as best we can if a given company will make it as it claims. This thread will deal with the Aleyeska Pipeline Service Company and their website information only as they have not posted a 10-Q for review that we could find.

Aleyeska Pipeline Service Company...

Last website update was dated to: April of 1999

http://www.alyeska-pipe.com/articles/a9905.html

[Ed Note: This is the company that oversees the monstrous Alaska Oil Pipeline. Their last posted update for Y2K status is found on the link above. Here is what we've found in regards to this company from their own website.]

"Alyeska Pipeline Service Companys Y2K program is designed to ensure that crude oil continues to flow in a safe and environmentally sound manner." "To do this, Alyeska has inventoried, remediated and tested most Mission Critical components of the Trans Alaska Pipeline System."

[ Ed note: As of April of 1999 they were still working on Mission Critical systems and that only "most" were remediated and tested. They do mention the following assurance: ]

"Alyeskas goal is to ensure that its day-to-day operations continue, with no significant disruptions"

[Ed.Note: Notice that their goal is to ensure operations without "significant" disruptions. So does this mean that their goal can guarantee no disruptions? Notice how the phrasing has been termed for legal purposes. Essentially from a legal standpoint, they are NOT going to guarantee against disruptions. They're going to guarantee against "significant" disruptions.Here is further analysis of their Y2K reporting information:]

Completed Remediation projects as of April, 1999.

"All of the following have been completed -- Initial assessment, Inventory analysis, Identification & prioritize Mission & Business Critical Assets, Detailed Assessment."

SCADA Systems:

Valdez SCADA Systems

Pipeline SCADA Systems

Terminal Control Systems

Commerical Applications and Data Center

SCADA Systems:

1. Valdez SCADA Systems -- Completed remediation and replacement; 90% done with Y2K date testing.

2. Pipeline SCADA Systems -- 80% R & R; 80% with Y2K future date testing

3. Pipeline Control Systems -- ONLY 15% has been remediated and replaced so far. Only 10% of testing

has been completed.

Commercial Applications and Data Center -- 90% R & R BUT only 10% has been future date tested.

Other categories include:

Network/Telecom. and Desktop aspects were still not finished with assessment of these systems as of April 1999. Company says they have an ongoing separate project to replace many of these systems. _____________

Editorial Notes:

NO dates or percentages of completion are given. Vendor readiness was still in the assessment phase at about 85% done with assessment as of 4/99 !! No information was available on percent of completion of remediation or testing by vendors. Some critical testing of the pipelines was only just begun at 10%!

In the April 1999 posting the statement says that they expect to be 90% finished with Mission Critical systems remediation and testing by June 30th and completed by 100% by September 30. Contingency planning is NOT anticipated to be completed until November 30th, 1999. There is no mention of when Business Unit systems will be completed. IN other words only the Mission critical systems will be completed by 1/1/2000.

Note the following statement by Alyeska near the end of its report:

_______________________

"Alyeska has positioned itself to be successful and ensure that its Mission Critical assets remain operation during the transition into the new century."

(--note company statement left out the word "in" I suspect they mean to say -- "remain in operation".)

Editor's Conclusion:

This statement seems to be very ambiguous and very optimistic. It seems quite apparent that this company is NOT guaranteeing that its Business systems will be compliant in time for the rollover. Also note that the Mission Critical systems are not categorized as being "Y2K COMPLIANT." At no point in their statement do they claim that they will even be "Y2K Ready." Most companies seem to revel in the use of that nebulous word.

A casual, quick read of the statement would lead one to believe that the company has things well in hand. Granted, the company report is "old." But the absence of further news speaks volumes. A company should want to shout its completion and herald it with a big Public Relations bonanza. It should be treated as a major accomplishment. They were supposed to be done by September 30th, 1999. Why have we not heard any thing further from them? Is it because they're not done? Is it because they won't be done? OR is it because if you look carefullythe statement says that they will be done with Mission CRITICAL and Business CRITICAL systems by September 30th. In other words there is no mention of being completely 'ready' or totally compliant by 1/1/2000.

Until recently, I had been hearing unreliable second and third hand reports indicating that if anyone would make it to compliance it would be the TAPS. Upon recent data information this is now apparently not the case.

-- R.C. (racambab@mailcity.com), October 16, 1999

Answers

Keep them comng R.C. I read them all and this stuff takes so much time to ferret out. It is appreciated.

Hard information seems to be lacking here these days and I have grown tired of the children fighting.

-- Mike lang (webflier@erols.com), October 17, 1999.

R.C.,

I've believed all along that the oil industry was "our" Achilles Heal. You're doing a great job of digging up the info and keeping the focus where it belongs.

IMHO, our other great weakness that might change the landscape of this country is transportation, especially air travel.

Big thanks for your hard work! Big t

-- Cary Mc from Tx (Caretha@compuserve.com), October 17, 1999.