1997 ANNUAL REPORT
NORTHWEST

Public -Private Cooperation Pays Dividends

Relationships built in the spirit of public-private cooperation continued to be an important focus in the Pacific Northwest in 1997 as industry worked with local, state and federal regulatory and legislative bodies to develop sensible and sound environmental policy.

Realizing the need for comprehensive research, the WSPA Northwest Environmental Committee and the U.S. Department of Energy co-funded two projects, both completed this year. The first evaluated metals concentrations in waters flowing into Puget Sound providing baseline data on water quality that can be used to determine the effect of refinery discharges. A second research project evaluated the benefits, obstacles and risks of using refinery biosludge as a soil amendment in agriculture or other land application alternatives.

Another important cooperative endeavor concerns Washington state's Model Toxic Control Act (MTCA). Working with the Department of Ecology (WDOE), WSPA's MTCA Committee and other industry representatives developed amendments that would provide more site-specific risk assessment in establishing cleanup standards. They would also require cleanup remedies based on tests that evaluate resource protection, long and short-term effectiveness, permanence, difficulty of implementation, cost and community concerns.

As the primary contributors to the more than $50 million collected annually by Washington state’s hazardous substance tax, WSPA will also be involved in a review of MTCA properties and an analysis of the use of the MTCA fund.

Tug Initiative Enhances Safety In Northwest Waters

After two years of hard work by WSPA and the Puget Sound maritime community, an unprecedented private sector initiative known as the International Tug of Opportunity System (ITOS) was launched this summer. The system will enhance marine safety in Washington and British Columbia waters by providing rapid and accurate information when a ship requires assistance.

ITOS uses a high-tech system of transponders that send data on the location of participating tugs to the ITOS operations center and to U.S. and Canadian Coast Guard facilities. This system immediately identifies available tugs that could be sent to assist a vessel in distress.

The WSPA Marine Committee took the lead in this initiative by working with a coalition of various maritime shipping interests. The new system will be operated by the Seattle-based Marine Exchange of Puget Sound, a multi-functional, non-profit organization serving regional maritime needs.

State Oil Spill Programs Merge to One Agency

Regulatory agencies in Washington state weathered significant transition this year as the Office of Marine Safety (OMS) merged its duties and functions with WDOE and ceased to exist as an independent agency. This transition, required by 1991 legislation, marks the first time a single state agency has been made responsible for all oil spill prevention and response activities. The WDOE's commitment to a high profile regulatory program emphasizing effective prevention methods was supported by WSPA.

NPDES Environmental Concerns Grow

Refineries in Washington state are working with the WDOE to renew National Pollutant Discharge Elimination System (NPDES) permits amid growing regional environmental concerns. Environmental groups want the level of refinery discharges reduced and current technology standards strengthened despite the refining industry's excellent performance record in these areas. WSPA maintains that these additional controls offer no environmental benefit and would simply penalize industry for its compliance efforts. In addition, environmental groups question whether current law allows a federal agency to authorize permits that could result in increased refinery capacities. Refinery NPDES permits are expected to be issued beginning in early 1998.

Transportation Infrastructure Funding

Policy makers in Washington state are searching for ways to fund improvements in the state's transportation infrastructure, and, as usual, taxes are at the top of the list. The Washington Petroleum Resource Group (WPRG), allied with the state’s business community, is advocating adoption of a broad set of funding sources as opposed to reliance on taxation alone. With the expectation that the funding package will include some form of taxation, WSPA maintains that any taxes should be imposed in an equitable manner that will not place an economic burden on retail gasoline stations.

Straits Sanctuary

Efforts to create an alternative to the proposed Northwest Straits Sanctuary in Puget Sound will continue next year when regional leaders plan to petition Congress to form a committee of local leaders to oversee this environmentally-sensitive and economically-important area. Proponents of this proposal, including those with opposing views on environmental issues, are strongly allied in the belief that the proposed sanctuary would only increase federal regulation without providing additional safeguards to the area. An attempt to pass a similar recommendation failed in 1996, but WSPA and its committees are optimistic that this alternative will succeed in 1998.

Northwest Regional Manager Retires

Del Fogelquist, WSPA's Northwest Regional Manager, retired July 1, capping 41 years of service to the petroleum industry. He joined WSPA in 1977 following 21 years with the Union Oil Company where he rose from a tank truck salesman to Pacific Northwest Division Manager.

"Del has been a wonderful manager of our northwest operations for twenty years," said Douglas F. Henderson, executive director of WSPA. "His dedication and hard work has had a tremendous impact on our industry and the Washington state business community. We wish him a long and happy retirement."

That Fogelquist placed strong emphasis on community involvement was evident in the number of regional leaders who attended a retirement function in his honor and by his activities. He served as both the managing director and president of Seafair and was a board member of the Greater Seattle Chamber of Commerce, the Association of Washington Business and the Washington State Highway Users Federation. In 1995, his contributions to the community were recognized when he was named one of Washington's most influential citizens and was one of only 12 international recipients of the Legion of Honor from DeMolay.

His successor, Daniel T. Riley, has participated on various WSPA committees while working as manager of environmental, health and safety for U.S. Oil and Refining Company. Riley spent 10 years with Exxon prior to working for U.S. Oil and Refining Company.

1997 WSPA Annual Report
Northwest