OIL, THE mm CRISIS
               IHE
  U. S.  ENVIRONMENTAL PROTECTION AGENCY
ARCTIC  ENVIRONMENTAL RESEARCH LABORATORY
          COLLEGE, ALASKA 99701

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ALASKAN OIL, THE ENERGY CRISIS AND THE ENVIRONMENT

                        by
                 Ernst W.  Mueller
     Arctic Environmental Research Laboratory
      U.S.  Environmental Protection Agency
                College, Alaska
             WORKING PAPER NUMBER 26
                   February 1974

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A Working Paper presents results of investigations which  are,  to  some
extent, limited or incomplete.   Therefore,  conclusions  or recommen-
dations, expressed or implied,  are tentative.   Mention  of commercial
products or services does not constitute  endorsement.

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                            TABLE OF CONTENTS



                                                                   PAGE



INTRODUCTION                                                         1



BACKGROUND                                                           2



ENVIRONMENTAL INFORMATION REQUIREMENTS                              22



SUMMARY                                                             31



REFERENCES                                                          32

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                            .LIST OF FIGURES

NUMBER                                                             PAGE
  1        "Monopod" oil  drilling platform in Alaska's  Cook
           Inlet                                                     3

  2  .      "Quadruped" oil  drilling platform in  Alaska's  Cook
           Inlet                            "                         4

  3        Tanker loading facility in Cook Inlet                     5

  4        Exploratory well  drilling operation in  Alaska's
           North Slope                                               7

  5        Outline map of Alaska showing areas of  high  potential
           for the production of oil and natural gas  and  the
           corridor for the Trans-Alaska Pipeline                     9

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                              INTRODUCTION
     Alaska has become a center of hopeful attention in the energy crisis.
A state that encompasses an area greater than 21 of the smaller states com-
bined; 40 percent of the nation's freshwater; over 50 percent of its general
coastline; and 65 percent of its continental shelf, Alaska has the nation's
greatest oil reserves, mammoth coal reserves, plus unparalleled additional
mineral wealth.  The state is one of the few remaining resource banks on
which the nation can draw for its wealth.  Alaska is also a treasure house
of natural beauty; it contains huge amounts of fish and wildlife; and many
unique geologic, hydrologic, topographical, climatic and biological systems.
     These unique arctic-subarctic conditions encourage two opposing strat-
egies.  One is exploration; the other preservation.  The realities of the
energy crisis and the environmental movement however, dictate development
with adequate environmental safeguards.  The developers are moving ahead
with great rapidity and have spent millions of dollars on research.  However,
most of this research has been to facilitate development and not to protect
the unique arctic and subarctic ecosystems:  The Federal government still
owns most of Alaska and must provide the leadership in environmental pro-
tection.  EPA has the only Federal environmental research laboratory in
Alaska.  The Arctic Environmental Research Laboratory, with its Ecological
Research Program, is the logical focal point for energy related environmen-
tal research in Alaska.
     The following information will provide the reader with some background
on oil development in Alaska, the probable environmental impact of this deve-
lopment, and what research is desperately needed to safeguard the environment.

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                               BACKGROUND

   ..The oil industry is by no means a newcomer to Alaska.  As early as 1853,
oil seeps, were observed on the west shore of Cook Inlet; similar seeps were
noted before 1908 near Barrow by visiting whalers.  Alaska's first wildcat
wells were drilled in J902, one near Katalla, the other near Cold Bay oh the
western end of the Alaska Peninsula.  No commercial shows of oil and gas were
found at either site.  However, drilling continued at Katalla until 1931, at
which time 18 of the 36 total wells drilled were low-level producers.  A
refinery built there in, 1911 was .operated until destroyed by fire in 1931.
In all., 154,000 bbls. of oil Were produced from the Katalla field.
     In 1957, Richfield Oil Company drilled the first discovery well in the
Swanson River unit on the Kenai Peninsula.  It flowed 900 bbl/day through an
11/32-inch choke, with an accompanying gas-oil ratio of 140 cu.ft/bbl.  By
1959, 17 wells had been spudded; three were major producers.  In 1959, 1960
and 1961, the Kenai West Fork, Falls Creek and Sterling gas fields were dis-
covered.
     On the other side of Cook Inlet, in 1962, the west foreland and Beluga
gas fields were located.  Offshore drilling, which began in Cook Inlet in
1962, subsequently located the North Cook Inlet and Middle Ground Shoal gas
fields.  Development drilling in Cook Inlet followed rapidly.  Currently,
15 offshore platforms (Figures 1 & 2) produce oil and gas from the fields in
                                     e
the inlet.  Crude is carried by a network of pipelines from the platforms to
the Drift River tanker terminal on the west side of the inlet or to the
Nikiski terminal, north of the city of Kenai  (Figure 3).
     In 1971 the Cook Inlet-Swanson River fields produced 77.5 million
barrels of oil and 230 billion cubic feet of natural gas.  The annual crude

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Figure 1.   "Monopod"  oil  drilling  platform  in  Alaska's  Cook  Inlet

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Figure 2.   -Quadruped"  oil  drilling platform in Alaska's Cook Inlet

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Figure 3.   Tanker loading  facility  in  Cook  Inlet

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oil production figures are not expected to change significantly as the proven
reserves in the Cook Inlet basin are estimated at only 550 million barrels.
     The oil seeps observed near Barrow inspired the designation in 1923 of
a 37,000 square mile area of the northwestern portion of Alaska as Naval
Petroleum Reserve #4.  From 1944 until 1953, the U.S. Navy drilled 36 test
wells and 44 strati graphic test holes.  This exploration resulted in the
discovery of an oil field at Umiat, Simpson, and a possible field at Fish
Creek.  A major gas field was found at Gubik, with small fields near Barrow.
     The more-or-less successful exploration by the Navy on Alaska's North
Slope inspired commercial exploration.  Starting in the early 1960's, Colo-
rado Oil and Gas, British Petroleum, and Sinclair drilled numerous test wells.
All these early holes were dry.  In 1966, Atlantic Richfield found small gas
showings at its Susie Unit #1, using a rig flown in from Fairbanks.  Aban-
doning this hole, ARCO moved the rig to Prudhoe Bay, where its Prudhoe Bay
State No. 1 was completed at 12,000 ft in June 1968.  On initial tests,
this well flowed crude oil at the rate of 2,415 bbls/day from 8,650 ft and
gas at the rate of 40 million cfd from 8,200 feet.
     This "discovery" well caused extensive additional exploratory drilling,
approximately 170 additional wells, exploratory or developmental, have been
drilled to date on the Arctic Slope's fields (Figure 4).  Proven reserves
of the Prudhoe Bay field alone are very conservatively estimated at 10
billion barrels of recoverable crude oil, making it the largest field dis-
covered outside of the Persian Gulf,  A prominent geological consulting
firm has stated that "the Prudhoe Bay field is one of the largest petro-
leum accumulations known to the world today."
     Five other possible petroleum provinces exist in Alaska besides the
Arctic Slope and Bristol-Bay Alaska Peninsula-Cook Inlet areas  (none of

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Figure 4.   Exploratory well  drilling operation on Alaska's North Slope.

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which have been fully explored).  (Figure 5)  The Yukon-Kandik area east
of Fort Yukon and extending into Canada has been explored seismically in
recent years.  The Copper River basin had one test well drilled.  A small
basin exists along the Tanana River near Fairbanks.  A much larger area
exists east of Nome, extending southwest along the entire Yukon delta.  The
Katalla region eastward along the Gulf of Alaska coast also shows promise.
Although offshore exploration and development has only occurred in Cook In-
let, great interest is shown in the possible offshore areas in the Beaufort
Sea, Bristol Bay and Gulf of Alaska that are associated with known land
deposits.
     Considering these unexplored areas together with the known reserves in
Cook Inlet and the Arctic Slope, the present known Alaska oil reserve figure
of 11 billion barrels must be conservative indeed.  Additional exploration
will occur in all of Alaska's petroleum provinces and continue well into the
next century.  Alaska already has the nation's greatest petroleum reserves
and these proven reserves of crude oil and natural gas will probably be in-
creased manyfold.
     The key role in Alaska's oil industry is not played by the exploration
and development activities, but by the transport of crude oil to the re-
finery and market.  Presently, more than 80 percent of Alaska's oil produc-
tion is transported outside the state.  Two small oil refineries near Kenai,
which together have a through-put of 40,000-60,000 bbls/day, produce jet
fuel, heating oils, asphalt and some components of gasoline.  The remainder
of the crude oil production of the Cook Inlet basin is shipped via tanker
to west coast ports.
     Led by Atlantic-Richfield and Humble Oil, the Prudhoe Bay field's
owners in 1969 put together an application for a Department of  Interior

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                                                                             HIGH GAS-OIL POTENTIAL
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Figure 5.  Outline map  of Alaska showing areas of high potential  for the production of oil  and  natural
           gas and the  corridor for the Trans-Alaska Pipeline

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permit for a Trans-Alaska pipeline.   This proposal  outlined a 790-mile long,
48-inch pipeline to eventually carry 2 million barrels per day of crude oil
from the Arctic Slope to Valdez, a deep-water port  in southcentral  Alaska.
                        •
(Figure 5).
     The Interior Department carefully scrutinized  the proposed pipeline
design concept.  Major concern was expressed by the U.S.  Geological Survey
over the effects of the hot (150°) oil pipeline on  the permafrost through
which it would pass.  The Survey published,  in late 1969, the result of a
computer analysis of the pipeline—an analysis which predicted that severe
permafrost melting, would occur, causing lateral and vertical movement of
the pipe and possible rupture.  Also, in December 1969, Congress passed
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and President Nixon signed, the National Environmental Policy Act,  which
required an Environmental Impact Statement before a pipeline permit could
be issued.  Another consideration was the Alaska Native land claims action
which was still pending in Congress.
     In March 1972, interior Secretary Morton made  available to the public
and the Council on Environmental Quality, the final six-volume environmental
impact statement,  accompanied by a three-volume "Analysis of the Economic
and Security Aspects of the Trans-Alaska Pipeline."   In the interim, Con-
gress had passed the Alaska Native Claims Settlement Act.  However, the
case based on NEPA considerations was still in the  courts.  On February 9,
1973, the U.S. Court of Appeals announced a six-to-one decision that issuance
of the pipeline permit would violate the terms of the Mineral Leasing Act
of 1920, which limit right-of-way widths leased on  Federal lands.  This
decision was appealed to the U.S. Supreme Court which refused to hear the
case.  The role to be played was now that of Congress, which alone had the
authority to amend the Act.  This Congress proceeded to do and on November
16, 1973, Public Law 93-153, "The Trans-Alaska Pipeline Authorization Act,"

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was approved.  Not only did this Act allow the Secretary of the Interior to
issue the necessary permits, but also essentially waived further review of
the project under the National Environmental Policy Act.  Interior Secretary
Morton issued the long delayed permit for the pipeline construction on Jan-
uary 23, 1974.
     While the Trans-Alaska pipeline was being fought out in the courts and
the Congress, two consortiums of natural gas distribution companies were
surveying routes to bring Arctic Slope natural gas to market.  The natural
gas that comes up with the crude oil must be separated before the oil can
be pumped into the pipeline.  In the initial development of the field, this
gas must be pumped back into the oil-bearing formation in order to maximize
pool efficiency; however, within 2 to 4 years after oil production starts,
the gas cannot be further re-injected.  Because Alaska State Division of Oil
and Gas regulations prohibit "flaring" the excess separated gas, the gas
must then be transported to market.
     Two major proposals are under consideration to bring the gas to U.S.
markets.  Since 1970, a consortium of U.S. and Canadian producers, now
called Canadian Arctic Gas Study Limited, has investigated the routing of
a gas line west from Prudhoe Bay to join a similar pipeline coming from the
oil and gas-rich MacKenzie River Delta field.  This route would then go
south along the MacKenzie River Valley to join existing gas pipeline net-
works in Alberta, and then to the U.S. and eastern Canada.  CAGSL sub-
mitted its proposal to the U.S. Federal Power Commission and the Canadian
Department of Energy, Mines and Resources in March 1974.
     More recently, a consortium of gas distributors led by El Paso Natural
Gas Company, has developed a proposal to construct a natural gas pipeline
using the same corridor as the Trans-Alaska oil pipeline.  The line would

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end at an open-water port in southcentral Alaska, near Valdez, where the
gas would be liquified and trans-shipped in special cryogenic tankers to
west coast ports.
     Regardless of the route or routes used for shipment of arctic oil and
gas to markets in the United States, the projects will be the most ambitious
and costly ever undertaken by private industry.  The cost of the Trans-Alaska
Pipeline System is currently estimated at from 3 to 4 billion dollars; that
of the Canadian Arctic Gas Study proposal at as much as $9 billion.
Environmental Impact of Oil Development
     Whatever the total economic cost of oil development in Alaska, and it
will eventually run into the tens of billions of dollars, this is only part
of the total "cost" of this program.  The environmental costs are a major
consideration, and are required to be established by the National Environ-
mental Policy Act and other Federal and State laws and regulations.  No
matter how careful industry is, no matter how rigorous the guidelines or
stipulations imposed by State and Federal authorities, or how conscientious
the surveillance and enforcement activities are, extensive environmental
damage will 'occur.  This damage began in the early years of oil development
and will continue until the vast petroleum reserves of Alaska are finally
utilized.
     The probable petroleum provinces and the transport routes cover vir-
tually all major ecosystems in Alaska, from the high arctic offshore zone
to the Gulf of Alaska.  Each of these ecosystems possesses unique geologic,
hydrologic, topographic, climatic and biological characteristics.  A com-
plete review of these characteristics is not possible in a paper of this
limited extent, and in fact may not be possible at all considering the

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almost complete lack of baseline information in many of these ecosystems.
A general review of some critical ecosystem components is, however, essen-
tial to an understanding of research needs related to this development.
     The Arctic Coastal Plain and Arctic Foothills areas extend north of
the Brooks Range to the coasts of the Beaufort and Chukchi Seas.   These
areas presently include the majority of the known oil deposits of Alaska.
The land is characterized by moist or wet tundra, generally overlying con-
tinuous permafrost, which often extends to depths of as much as 2,000 feet.
The tundra/permafrost interaction results in surface micro-relief features
such as polygons or peat ridges.  The many small, shallow, oblong lakes  appear
to be oriented by the prevailing winds.  The major river system is the Col-
vilie, which flows west and north to the Beaufort Sea.  Minor drainages  in-
clude the Sagavanirktok, Canning and Kuparuk Rivers, all flowing northward.
Offshore, the gently sloping land surface continues into the Arctic Ocean,
which is dotted by "barrier islands."  This coast is dominated by the Arctic
ice pack; tides are minimal—less than one foot.  Occasional storms produce
great sea waves, which can be quite destructive.
     Vegetation patterns are strongly dominated by the harsh arctic climate,
which has annual mean temperatures from 10 to 15°F and precipitation of from
4 to 8 inches per year.  The impermeable permafrost layer prevents subter-
ranian drainage, resulting in wet muskeg areas over much of the coastal
plain, and moist muskeg in the foothills.  Mosses and sedges dominate the
vegetation, with vast stands of cottongrass in the foothills.  Along most
drainages, brushy willows can be found, primarily close to rivers and streams.
      Waterfowl  and seabirds Utilize  the coastal  plain and offshore  island
areas  in  large  numbers  during the breeding and  fall  molting  seasons.  During
fall  migration, as many as two-thirds  of  the migratory  bird  populations of

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the Canadian arctic islands may follow the Alaskan arctic coast flyway.
Although population estimates are variable, due to lack of reliable data,
average densities of 16 breeding ducks per square mile have been observed.
Estimates of the September eider migration range from 800,000 to 1.1 mil-
lion.
     Large mammal populations are dominated by two great caribou herds—
the arctic herd which calves in the upper Colvilie River and the Porcupine
herd which ranges over the eastern half of the North Slope to the MacKenzie
River in Canada.  Population estimates of these two herds indicate an aver-
age total size of about 350,000 animals.  Wolf populations tend to depend
largely on predation from these two herds, supplemented by smaller mammals.
The low density brown-grizzly bear population also does some predation, but
feeds largely upon vegetation.
     The only known denning areas for polar bear in Alaska occur on ten
offshore islands from the Colvilie River east to Brownlou Point, although
occasional denning is noted as far southwest as Point Hope.  As breakup
occurs in spring, polar bears follow the retreating ice north and east,
subsisting on the ringed and bearded seal.
     Less is known of the fish populations of the Arctic Slope than of the
large mammal populations, and even less is known of lower organisms in the
aquatic food chain.  The Beaufort Sea total fish populations may be small,
but do support abundant populations of marine mammals.  The only commercial
fishery at present is near the mouth of the Colvilie River, where arctic
char and whitefish are taken.  The Sagavanirktok River and some adjacent
tributaries are known to contain significant arctic char, burbot, and white-
fish populations.  Some tributary streams of the Sagavanirktok and the deeper

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tributary lakes are known to contain grayling.  Lake trout are found in Gal-
braith Lake, a medium-size tributary to the Atigun River, which flows into
the Sagavanirktok.  The Sagavanirktok is probably an important wintering
area for arctic char, which are known to spawn in the Atigun.
     The presence of man in the arctic coastal plain and foothills area has
historically been transitory or on a subsistence level.  As oil development
proceeds in the Arctic, large populations of wildlife heretofore unaware
of man will become threatened.  Habitat and food sources will be altered
or destroyed and the traditional migratory patterns of caribou and other
wildlife may be changed or eliminated by structures that will be erected.
As offshore oil development proceeds, waterfowl and marine mammals become
threatened by potential oil spills.
     Construction of roads and pipelines as well as gravel pads for buildings
and drill sites may alter the permafrost regime and change existing drainage
patterns, particularly on the low relief coastal plain.  Removal of the pro-
tective tundra causes melting of ice-rich permafrost areas, resulting in
erosion and subsidence, accompanied by siltation of streams.  Observations
of trails used for cat-trains during exploration by the U.S. Navy indicate
that subsidence to a depth of 12 feet may occur over a period of 1 year.
Recently, roads have been built on thick gravel pads laid directly on the
tundra and summer travel directly on the tundra surface has been prohibited.
These practices have resulted in less damage to the tundra permafrost systems,
but may have changed existing drainage patterns.  The large amounts of gravel
needed for construction of roads and pads has generally been derived from
stream beds, possibly resulting in destruction of habitat for food chain
organisms, and spawning areas for fish.  The effects of discharges of
municipal wastes and waste heat into arctic waters is virtually unknown.

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Increased hunting and fishing pressure will  also have definite effects on
the populations of arctic animals.
     The Brooks Range is the northwesterly extension of the Rocky Mountain
system.  Although peaks are less than 10,000 feet, its rugged, largely tree-
less topography has served as an effective barrier between the Arctic Slope
and the more developed areas in the south.  Through this range must pass any
transportation route to provide men and materials to the arctic Alaskan oil
fields as well as the most probable route for bringing the arctic oil to mar-
ket.  The proposed TAPS transportation corridor follows the headwater drain-
ages of the Sagavanirktok and Atigun Rivers, by Galbraith Lake, and through
the mountains at Dietrich Pass, then down the Dietrich River.  An alternative
corridor for a linkup with the Trans-Canada Pipeline proposal would go south-
east from Prudhoe Bay to the Canning River, south along the Canning to the
southern boundary of the Arctic National Wildlife Range, and east along the
southern boundary of the range into Canada.
     The north side of the narrow, steep Atigun River Canyon is an important
habitat for Dall sheep.  Through this pass, some north-south caribou move-
ments have been noted.  South of the range, the Dietrich River may support
only small numbers of fishes, but may serve as a spawning area for grayling.
A few thaw lakes near the confluence of the Settles and Dietrich Rivers
serve as a habitat for migratory waterfowl.  Moose, bear and wolves are
commonly found throughout the Dietrich and middle fork of the Koyukuk
River drainages.
     The major importance of the eastern upper Koyukuk River system lies  in
the fact that it is a key watershed to the lower Koyukuk and the Yukon River.
These drainages are of high value as habitat for fish, wildlife and water-
fowl.  Any disturbance to these watersheds from construction activity or  an
oil spill may have serious consequences to these ecosystems.

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     The intermontane plateaus of interior Alaska extend southward from the
Brooks Range to the Alaska Range.  Mean annual  temperatures range from 15
to 25°F, mean annual precipitation from 8 to 16 inches per year.   The top-
ography consists of rolling, well vegetated hills, some of which  extend
above timberline.  The major drainages through  which transportation corri-
dors have been established or in which oil development may occur  are the
Yukon, Tanana, Koyukuk and Kuskokwim Rivers. The Yukon and Tanana valleys,
and the lower drainages of tributaries, are usually flat, broad and dotted
with numerous ponds and lakes.  Many of these are old oxbow lakes and sloughs
left behind by the meandering rivers.   In the river valleys, bottomland
spruce-poplar forests are found; lowland spruce-hardwood forest is found in
the plain areas and upland spruce-hardwoods found in higher elevations.  Des-
pite the low rainfall, the area is well supplied with water; aquatic grasses
and forbs are common.  The entire area is subject to discontinuous permafrost.
The Yukon flats area, parts of the Yukon-Tanana uplands, and the  Koyukuk flats-
Yukon Kuskokwin lowlands areas are all prime waterfowl habitat.  Although in
summer the larger rivers carry a heavy silt load, the tributaries are most
often clear and swift.  Many interior Alaska rivers support populations of
grayling, burbot, northern pike, suckers and whitefish.  The Yukon River
is a principal migration route for anadromous fisheries, as well  as sup-
porting a major resident fish population.  The  Chatanika and Tolovana
Rivers have runs of chinook, chum and coho salmon as well as sheefish.
Many of the rivers in the area support extensive recreational fisheries,
and subsistence fisheries are common.
     Moose, bear (black and grizzly), wolves, and small furbearers which
are common in the Yukon-Tanana uplands, have had severe hunting pressure in
recent years and have moved their range to the  north and east.

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     The works of man in the intermontane plateau region of interior Alaska
are considerably more evident than in arctic Alaska.   This has resulted in
considerably more information being available on the  populations of commer-
cially and recreationally valuable fish and wildlife; however, these popu-
lations are still not well understood.  Little information is available
particularly on the lower food chain populations of the aquatic organisms,
or of the effects of habitat disturbance on fishes and wildlife.  Although
many streams in the area for some years have been mined as sources of gravel,
the effects of this activity on benthic organisms or  spawning areas is little
understood.
     The Pacific Mountain System consists of two series of mountain ranges
and is a continuation of the coastal mountain ranges  of Canada and the United
States.  The largest series contains the Alaska Range, the Aleutian Range
and the Aleutian Islands.  The southern range contains the island of Kodiak,
the Kenai-Chugach Range, St. Elias Range, Fairweather Range and the islands
of Southeast Alaska.  Between these series is a trough containing the Cook
Inlet lowlands and the Copper River lowlands.  The proposed Trans-Alaska
pipeline crosses both these mountain range series, generally following the
existing Richardson Highway.  The route would cross the Denali fault system
near Black Rapids.  Precipitation ranges from 12 inches per year on the
north side of the Alaska Range and in the Copper River lowlands to 60 to 80
inches per year in Port Valdez.  Mean annual temperature varies from 25°F
along the headwaters of the Tanana and Copper Rivers to 40°F at Port Valdez.
     Vegetation patterns along the proposed pipeline route change from the
bottomland spruce-poplar forest of the Tanana River drainage system to the
alpine tundra of the passes through the Alaska Range, through a belt of
spruce-hardwood  forest in  the  Copper  River  lowlands.   As  the  route  goes

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through the Chugach Mountains, the vegetation again changes to brush and
alpine forms» until the coast is reached, where there is coastal western
hemlock-Sitka spruce forest.
     In the lower elevations of this section, there is good habitat for
moose, bear and wolves; higher elevations provide habitat for Dall sheep.
Mountain goats are found in the mountain areas southward from Tonsina.
North of Glennallen, part of the Nelchina caribou herd (estimated at 70,000)
crosses the route during migration to the wintering range.  In this same
area, moose, black and grizzly bears, wolves and wolverines are found.
     Valuable waterfowl habitat is found in the Copper River lowlands and
the Copper River delta.  Trumpeter swans are found in both areas.  Pothole
lakes and other small lakes and ponds serve as nesting habitats for ducks,
geese and trumpeter swans.
     The proposed pipeline route segment from Isabel Pass to Thompson Pass
is within the Copper River drainage system.  The annual  sockeye salmon run
of the upper Copper River averages 250,000.  The proposed pipeline will run
close to the headwaters of the Gulkana River, a clear-water tributary of the
Copper.  The Gulkana is one of the most important salmon producers of the en-
tire system, containing tens of thousands of salmon during the spawning season.
Chinook and coho salmon are also known to spawn in the Copper and some tribu-
taries.  In some of the larger tributaries, steel head rainbow trout, dolly
varden, grayling, whitefish and burbot are found in large numbers.  Bald
eagles are found in large numbers during the salmon run on the Lowe River.
     The Prince William Sound area, including Port Valdez, serves as habitat
for many waterfowl, shore birds and sea birds.  The Copper River delta to
the east of Prince William Sound is the only known nesting area for the
dusky Canada goose, and is also a popular waterfowl hunting area.

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     Large numbers of sea lions and seals are found through the sound; sea
otters are relatively abundant in the Hinchinbrook Entrance area.   Fur seals
and killer whales have occasionally been observed in the area also.
     Perhaps the most important renewable resource that will be affected by
the oil industry development in Prince William Sound will be the fisheries.
All five species of Pacific salmon—pink, chum, coho, sockeye and king are
found in Prince William Sound and the Copper and Bering River drainage ba-
sins.  These support an important commercial fishery with an average salmon
take as high as 4.5 million pinks, chums and sockeyes.   Halibut, tanner and
dungeness crab are also of importance.  The U.S. Fish and Wildlife Service
has estimated the potential annual harvest value of the Prince William
Sound commercial fishery at approximately $10 million.*5  A large number of
pink and chum salmon spawn in 32 streams flowing into Valdez Arm.  Estuarine
and intertidal areas also provide important habitat for spawning pink salmon,
as well as habitat for the lower members of the food chain on,which the com-
mercially valuable fishes are dependent.
     The possible effects of construction activity, as well as possible oil
pollution, on the fishery resources of this area are not well understood.
Habitat disturbance from siltation or construction on or in the aquatic
environment could disturb spawning fishes, as well as eggs or fry.  These
disturbances, however, will generally be transitory.  Spilled crude oil
and continuous discharge of treated ballast water could have more lasting
effects.  At design capacity, 2 million barrels per day of crude oil will
be loaded into tankers at Port Valdez.  The tank farm at Valdez will hold
10 days through-put of the pipeline—about 20 million barrels.  In addition,
there will be a ballast treatment facility capable of treating approximately
40 million gallons per day, with a design effluent of 10 mg/liter oil.  The

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acute and chronic effects of crude oil and ballast water discharge on marine
and freshwater organisms is not well understood.
     Even less understood is the effect of dissolved crude oil fractions on
chemoreception mechanisms.  Chemoreception is known to be important in the
stream identification mechanisms of anadromous fish, and also in prey and
mate identification.  Dissolved oil fractions may upset these functions,
or cause avoidance reactions.  Avoidance could, for example, cause juvenile
forms to outmigrate from protected zones to areas where they are more subject
to predation.  The effect is then a secondary one rather than direct toxicity.
     A number of areas exist where information must be gathered, and research
performed, before the effects of Alaska's petroleum development on the envir-
onment are understood, and the means to minimize these effects are developed.
In the next section, a review of some of these a.reas will be made, current
research will be matched to need, and areas of further needed research will
be developed.

                 ENVIRONMENTAL INFORMATION REQUIREMENTS

     The development of the petroleum industry in Alaska will have extensive
effects on the State's many ecosystems.  Many of these ecosystems, especially
those in the Arctic, have heretofore had only minor incursion by man or his
activities.  To be able to predict these effects, and to minimize them, a
variety of environmental research efforts must be launched.
     For the purposes of this paper, the needed research has been developed
into two main areas:  (1) baseline data gathering and ecosystem analysis,
and (2) environmental effects associated with the petroleum development.
It should be understood that these two broad areas cannot stand alone.  An

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                                   22

analysis of the effects must be based on an understanding of the ecosystems
involved, and baseline data work and ecosystem modeling must lead to an
understanding of the effects of industrial  development.

Environmental Baseline Data and Ecosystem Modeling:

     The major ecosystems of Alaska have not received much study in the past.
Of late, however, increased attention has been paid  to these ecosystems, par-
ticularly through the IBP Tundra Biome project.  Although research agencies
in Alaska have conducted environmental research for  many years, none has been
integrated or comprehensive enough to provide a comprehensive model for any
one major ecosystem.  Blocks of information are available, however, partic-
ularly in the areas of terrestrial vegetation, migratory waterfowl and other
birds, and large mammals.  The aquatic mammals have  been described to some
extent, as have the fishes.  The Alaska Department of Fish and Game  has
recently published a comprehensive review of the wildlife populations in
the State, including habitat maps and migratory patterns.
     A similar effort on fishes would be of great value.  The Alyeska
                                                                    Q
Pipeline Service Company has contracted a study, recently published,  of
the fisheries ecology of the Sagavanirktok River and adjacent drainages.
Similar studies have been conducted through the years on the fisheries of
other river systems, generally by the Alaska Department of Fish and Game.
Additional research needs to be conducted in these areas, particularlyin
determining the relationships of fish and wildlife to their habitat.
     The trees and shrubs of Alaska have recently been reviewed by the U.S.
              Q
Forest Service  in an excellent publication which also contains distribution
maps.  Intensive work related to major ecosystems is beginning with funds
from the petroleum industry or the State and Federal Governments.  The

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                                   23
Alyeska Pipeline Service Company has funded "Environmental Studies of Port
Valdez," recently published by the University of Alaska's Institute of Marine
Science.    The Environmental  Protection Agency and the National  Science
Foundations Sea Grant Program have funded "Baseline Data Studies  of the
Arctic Estuarine Environment,"   soon to be completed and published—also
by the Institute of Marine Science.  These studies were directed  toward
the entire ecosystem—not a single community or species, and thus are of
great value in increasing our total understanding of these systems.
     Comprehensive work, however, remains to be done in more accurately
defining the community composition of the marine environment, particularly
in the coastal areas where offshore drilling will be conducted, or where
terminals and transportation routes will be established.  Fisheries studies
in the marine ecosystems have been generally directed toward species of
commercial value; additional work needs to be performed on non-commercial
fishes and also the lower trophic level communities.
     The freshwater environment has generally received little attention in
Alaska.  Studies were conducted on some tundra lake ecosystems as part of
                         IP
the Tundra Biome Project,   and some small interior Alaska lakes  have been
studied, particularly with regard to nutrient and trace metal cycling, and
primary production; however, larger lakes have been little studied in Alaska.
The University of Alaska's Institute of Water Resources is currently con-
ducting an intensive project on Harding Lake near Fairbanks, as part of EPA's
research grant program in Alaska.  Other lakes in the interior and south-
western portions of the State have been studied with emphasis on  sport
fisheries potential and fish stocking.
     Even less research has been conducted on the flowing water ecosystems,
and none of this research has been comprehensive enough to enable adequate

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                                   24
understanding of relationships between the various trophic levels.  As
mentioned previously, the State Department of Fish and Game and the Bureau
of Sport Fish and Wildlife have conducted studies into the sport fish distri-
bution in some freshwater streams, and some studies on the feeding habits.
Benthic organism populations and stream characteristics of the Chena River
drainage were described by the U.S. Public Health Service in the early 1950's,
and again by the Alaska Water Laboratory in the early 1970's. 3>  4  Since
inception of the Trans-Alaska Pipeline project, both the U.S. Geological
Survey   and the U.S. Environmental Protection Agency   have conducted studies
of stream chemistry, and benthic organism populations in areas where the
pipeline would cross major drainages.  For many years, the Water Resources
Division of the U.S. Geological Survey has collected water chemistry and
suspended sediment samples in connection with its hydrologic data collection
program.
     Recently, an experimental watershed project was begun in the Caribou-
Poker Creeks subdrainage of the Chatanika River.  This project, under the
leadership of the U.S. Army Cold Regions Research and Engineering Laboratory,
involves a number of State and Federal Agencies including EPA's Arctic Environ-
mental Research Laboratory J8  Because of its multi-disciplinary approach and
long-term baseline data gathering potential, this project promises to be of
great value in the development of an understanding of the total ecosystem of
these small streams.
     The aquatic ecosystems most affected by the development of the oil in-
dustry in Alaska will be the streams and estuaries.  Lakes may be used as
water supply or waste disposal, and may receive drainage from surface acti-
vities.  However, unless a large oil spill, resulting from a pipeline failure,
occurs close to a lake, the direct effects could be minor.  Stream systems,

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                                   25
however, will be affected by almost any pipeline leak.  Many streams will
be crossed by oil pipelines and bridges, and bed material  will be used as
fill for pipelines, roads, airports, drilling pads, and artificial islands.
Estuaries are, and1 will increasingly be, used as tanker loading areas and
transport routes, sites for oil drilling platforms and receiving waters for
ballast treatment wastes and other industrial and domestic wastes.  Both of
these major systems need significant additional  research if an adequate
understanding of their ecosystems is to be developed.
Environmental Effects Research:

     Virtually all of the ecosystems that are or will be affected by the oil
development in Alaska are, as yet, unaffected by man.  With the existing lack
of comprehensive baseline data on these ecosystems, the ability to predict or
understand the impact of the development on these ecosystems is therefore
extremely limited.  To better understand these effects, an extensive research
program is essential.
     The effects of oil development in Alaska can be broken down into three
main areas:  (a) the effects of exploration and construction, (b) the effects
of routine maintenance and operation, and (c) the effects of accidental spills
on oil or ballast water.
     (a)  Effects of exploration and construction:
     The exploration and construction phases of oil development in Alaska
involve the launching of massive amounts of men and material into a harsh,
yet pristine environment.  From seismic exploration to construction of well
sites, pipelines, pumping stations and camps, this effort involves impacts
of little known or understood environments.  To only a limited extent can

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                                   26
information and guidelines from other environments be extrapolated to fit
the far north.
     Surface construction in Alaska will often take place on continuous or
discontinuous permafrost, occasionally thousands of feet deep.  Disturbance
of the thin vegetation layer overlying permafrost often results in serious
subsidence and erosion into streams and lakes.  "Cat trails" used in the
exploration of Naval Petroleum Reserve No. 4 are still subsiding 20 years
after they have been used.  Effects of large scale overland operations on
the permafrost itself, on drainage patterns, and on increased siltation in
streams have received some attention from the U.S. Bureau of Land Management,
the U.S. Army Cold Regions Research and Engineering Laboratory, the U.S.
Geological Survey, and the industry itself, as well as research conducted
by the Tundra Biome Project.  However, the effects of increased siltation
from subsiding permafrost on the aquatic ecosystems have been ignored.
     Offshore operations currently require seismic exploration techniques
to determine geologic formations.  Such operations will continue in the
Arctic Ocean, particularly in the near shore areas of the Beaufort Sea.
The effects of explosive charges on marine life in these areas has yet to
be investigated.
     Large amounts of stream gravels have been and will be used in the con-
struction phases.  The effects of this dredging on the stream flora and
fauna have not been well described, although a small project at the Arctic
Environmental Research Laboratory should provide some answers to this problem.
     Pipelines used to carry oil and gas to market will often cross watersheds
in a direction perpendicular to the natural drainage patterns.  Planned pipe-
lines will bisect a large number of the major watersheds of the state, in-
cluding the Tanana and Yukon Rivers.  The disturbance of stream beds

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                                   27
associated with this construction should be similar to that of the gravel
removal operations.  However, because much of the pipeline construction will
be above ground, using gravel as a support and cover, the effects on water-
sheds could be much greater than a buried pipeline.
     Both the construction of temporary or permanent stream crossings and
the removal of gravel from streams could have adverse effects on migratory
fishes.  Increased sediment concentrations as well as physical disturbance
of the spawning area will also have effects on fish populations.
     Exploration and construction involves the use of temporary or mobile
camps.  These may have inadequate sewage treatment and waste disposal systems,
resulting in pollution of both the aquatic and terrestrial systems.  Although
these may be primarily technological problems and ones of relatively short
duration, there could be long-term effects.
     Following disturbance of the soil and organic layer in temporary road
or pipeline construction, revegetation may be necessary to stabilize the
soil until natural growth can recur.  The Alyeska Pipeline Service Company
has sponsored major research by the University of Alaska's Institutes of
Arctic Biology and Agricultural Sciences.    Although this research has
shown that revegetation can be successful on a small plot, the success on
larger disturbed areas has yet to be established.
     (b)  Effects of routine maintenance and operation:
     Much of the research necessary in evaluating the effects of exploration
has applicability to routine maintenance and operation impacts.  For example,
the effects on drainage patterns of barriers such as roads or above-ground
pipelines would be similar.  However, several major areas remain.  Roads
and other large above-ground structures may serve as an effective barrier
to migratory wildlife; particularly caribou.  The Alaska  Cooperative

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                                   28
                                                      20
Wildlife Research Unit has recently published a report   of their investi-
gations into the disturbance of caribou movements by above-ground pipelines.
This research was sponsored by industry, and, unfortunately, did not reveal
sufficient information to be able to adequately predict effects.  Some caribou
did cross the simulated pipeline crossings used in the experiment; however,
most simply walked around the end.  Whether caribou could cross over, or
under, such a structure which is long enough to prevent their going around
is not known.
     Another effect will be from the continuous discharge of effluents from
facilities operated by the industry.  These will include air pollutants (in-
cluding ice fog) from the large stationary power plants at the oil fields,
at pipeline pumping stations and tanker loading facilities.  Another source
will be the vehicles used in operation—surface vehicles as well as aircraft.
To date, the effects of air pollutants on the tundra vegetation have not been
studied.  The abatement and control of ice fog, particularly in the Prudhoe
Bay and Fairbanks areas should receive immediate attention.
     The discharge of effluents into the aquatic environment may have more
serious consequences.  The discharge of domestic wastes into ice-covered
streams with naturally low dissolved oxygen concentrations may cause further
depletion of the dissolved oxygen and subsequent damage to the aquatic
environment.  Studies at the Arctic Environmental Research Laboratory indicate
that survival of fecal indicator organisms in cold streams is significantly
                               on
longer than in warmer climates.    Although increased survival has not yet
been adequately demonstrated for pathogenic organisms, the possibility of
serious contamination of freshwater streams and lakes from domestic wastes
does exist.

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                                   29
     The discharge of treated ballast water and produced water effluents
will also have environmental effects, particularly in the estuarine environ-
ment.  The planned ballast water treatment facility at Valdez is designed
for a 44-million gallon per day capacity with an effluent discharge con-
taining 10 mg/1 oil.  Water recovered from operating wells, so called
'-'produced water" may be more difficult to treat and may contain as much as
50 mg/1 oil.
     The Alyeska Pipeline Service Company has contracted with Battelle
Memorial Laboratories to conduct toxicity studies with "synthetic" ballast
water treatment effluents.  The reports of these investigations have been
                   97
recently published.    In addition, as part of the environmental studies
of Port Valdez mentioned previously,   the University of Alaska's Institute
of Marine Science postulated that the influx of treated ballast water would
have little or no effect on the primary productivity of the estuary.  The
effects of these discharges do need significant additional work, not only
with relation to toxicity, but also effects on chemoreception and other
low-concentration effects.
     (c)  Effects of accidental spills of petroleum and untreated ball as* t
          waters;
     Despite all precautions and the advanced technology of the oil industry,
major spills of petroleum and untreated ballast water have occurred in the
past in Alaska, and will increasingly occur in the future.  The recent world
increase in tanker traffic has resulted in an increase in accidental spills,
and a subsequent international concern over the effects on the marine envir-
onment.  As a result, a great deal of research has been conducted to determine
the effects on marine ecosystems, and some of this work has been done in
Alaska.  The applicability of research performed elsewhere on Alaska's cold
climate ecosystems has yet to be established, however.  In addition, the

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                                   30
effects on freshwater and terrestrial ecosystems has received little atten-
tion in the literature, and only a few studies have taken place in Alaska.
     The U.S. Arrny Cold Regions Research and Engineering Laboratory has
conducted studies to determine the effects of numerous pipeline breaks in
the Haines-Fairbanks military pipeline on the terrestrial, and to a limited
extent, freshwater ecosystems.23  Although these spills were all petroleum
products, the study will find application in evaluating the effects of crude
oil spills.  CRREL has also conducted a small experimental spill of Prudhoe
Bay crude oil in an interior Alaska tundra-tiaga experimental watershed.
Experimental spills were also conducted on small tundra lakes and terrain
                                                       12
as part of the Tundra Biome Projects in Barrow, Alaska.    The effects and
fate of oil spills into the flowing water ecosystems of Alaska have yet to
be evaluated, however.
     Studies concerning the effects of oil spills on marine ecosystems have
dealt with only a few species, almost all of commercial interest.  The
University of Alaska has conducted two studies under grants from the
Environmental Protection Agency; one on the effects of large oil concentra-
                                 24
tions on marine stages of salmon;   another, now ongoing, on the effects  on
intertidal meiofauna in Prince William Sound.  The National Marine Fisheries
Service has conducted sublethal effects studies on pink salmon and tanner
      25
crabs.    This work is continuing.  However, the fate of oil spills in the
arctic and subarctic marine ecosystems has not been defined, nor has suffi-
cient work been done to describe effects on non-commercial marine organisms
such as benthic fauna, phytoplankton, and zooplankton.
     The U.S. Coast Guard26'27 has studied to a limited extent the fate of
oil spills on and under sea ice, their rate of travel over ice, and the
practicability of burning spilled oil under  those  conditions.  The fate of
oil spilled  into cold  climate  ecosystems, physical and chemical and

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                                   31
microbiological degradation, and the ultimate fate of residual materials
("atmospheric oil residues") has received virtually no attention.

                                 SUMMARY
     As can be seen from the above discussion, significant new research is
necessary to enable prediction of the effects of oil development activities
on Alaska's ecosystems.  Not only should this research entail major efforts
to determine effects on terrestrial, freshwater and marine ecosystems, but
also in fate, pathways and degradation of oil spilled into these systems.
Because of the very real lack of baseline information and ecosystem modeling
in all of these systems, it is also essential that research efforts in this
area be increased.
     The oil industry, with all of its attendant environmental problems, is
now a reality in Alaska.  It will continue to pose a major environmental
threat to Alaska through the balance of this century.  Yet the ability to
predict and control the effects of the industry is presently at a minimum.
As the industry expands, so must research efforts expand to meet the growing
challenges of petroleum development in the north.

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                                    32
                                REFERENCES
 1.   Lachenbruch,  A.H.   "Some Estimates of the Thermal  Effects of a Heated
     Pipeline in Permafrost."  Geological  Survey Circular 632, U.S. Dept.
     of Interior,  Washington, D.C.   1970.

 2.   Public Law 91-190,  The National  Environmental  Policy Act of 1969, 42
     U.S.C. §§ 4332 (2)(c), 4344 (5)(1970).

 3.   U.S.  Dept. of the Interior "Final  Environmental  Impact Statement,
     Proposed Trans-Alaska Pipeline."  6 vols., Washington, D.C., 1972.

 4.   U.S.  Dept. of the Interior.  "An Analysis of the Economic and Security
     Aspects of the Trans-Alaska Pipeline."  3 vols., Washington, D.C.
     December 1971 - March 1972.

 5.   Alaskan Arctic Gas  Pipeline Company.   "Application of Alaskan Arctic
     Gas Pipeline Company for Right of Way Permit,  Certificate of Public
     Convenience and Necessity and Presidential Permit Pursuant to
     Executive Order 10485."  3 vols., and exhibits plus 15 volume
     environmental assessment.  Anchorage, Alaska,   March 1974.

 6.   U.S.  Fish and Wildlife Service.   "North Slope  Oil  Development, the
     Trans-Alaska Pipeline System and Marine Terminal Sites."  U.S. Dept.
     of the Interior, Juneau, Alaska.  March 1970.

 7.   State of Alaska, Dept. of Fish & Game.  "Alaska's Wildlife and
     Habitat."  Juneau.   January 1973.

 8.   McCart, P., Craig,  P., and Bain, H.  "Report on Fisheries Investigations
     in the Sagavam'rktok and Neighboring Drainages."  Alyeska Pipeline
     Service Company.  Anchorage, 1972.

 9.   Viereck, Leslie A.  and Little, Elbert L.  "Alaska Trees and Shrubs."
     Agriulture Handbook No. 410, U.S. Forest Service, Washington.  1972.

10.   Hood, D.W., Shiels, W.E. and Kelley, E.J., eds.   "Environmental Studies
     of Port Valdez." and "Data Volume One, Environmental Studies of Port
     Valdez."  University of Alaska Institute of Marine Science Occasional
     Publication 3A.  Fairbanks, Alaska.  July 1973.

11.   Kinney, P.J. et. al.  "Baseline Data Study of the Alaskan Arctic
     Aquatic Environment."  University of Alaska Institute of Marine Science
     Report R72-3, College, Alaska.  March 1972, and Report R71-4.  January
     1971.

12.   Barsdate, Robert J.  "Ecologic Changes in an Arctic Tundra Pond
     Following Exposure to Crude Oil."  In The Impact of Oil Resource
     Development on Northern Plant CommUnitTeT. Institute of Arctic Biology,
     University of Alaska Occasional  Publications on Northern Life No. 1,
     Fairbanks, Alaska.   March 1973.

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                                    33


13.   Frey, Paul  J.  "Ecologic Changes  in the Chena River."  U.S. Dept. of
     Interior, Federal Water Pollution Control Administration.  College,
     Alaska.   1969.

14.   Frey, P.J., Mueller, E.W. and Berry, E.C.  "The Chena River-A Study
     of a Subarctic Stream."  U.S. Dept of the Interior, Federal Water
     Quality Administration, College,  Alaska.  1970.

15.   Nauman, J.W. and Kernodle, D.R.  "Field Water Quality Information
     Along the Proposed Trans-Alaska Pipeline Corridor."  U.S. Dept of the
     Interior, Geological Survey, Anchorage, Alaska.  1973.

16.   Alaska Operations Office, Federal Water Quality Administration.  "Water
     Quality Data, Trans-Alaska Pipeline Route."  U.S. Dept. of the Interior,
     Anchorage,  Alaska.  May, 1970.

17.   Slaughter,  C.W.  "Caribou-Poker Creeks Research Watershed, Interior
     Alaska:   Background and Current Status."  Corps of Engineers, U.S.
     Army CRREL, Report #157.  Fairbanks, Alaska.  1971.

18.   Jinkinson,  W.M., Lotspeich, F.B.  and Mueller, E.W.  "Water Quality of
     the Caribou-Poker Creeks Research Watershed, Alaska."  U.S. Environ-
     mental Protection Agency, Arctic  Environmental Research Laboratory.
     Working Paper No. 24, College, Alaska.  Dec. 1973.

19.   McCown, B.H. and Simpson, D.R.  "The Impact of Oil Resource Development
     on Northern Plant Communities."  Institute of Arctic Biology, University
     of Alaska,  Occasional Publications on Northern Life, No. 1.  Fairbanks,
     Alaska.   March 1973.

20.   Child, Kenneth N.  "The Reactions of Barren-Ground Caribou to Simulated
     Pipeline and Pipeline Crossing Structures at Prudhoe Bay, Alaska."
     Alaska Cooperative Wildlife Research Unit, Fairbanks.  June 1973.

21.   Gordon, Ronald E.  "Winter Survival of Fecal Indicator Bacteria in a
     Subarctic Alaskan River."  U.S. Environmental Protection Agency,
     Report #EPA-R2-72-013, College, Alaska.  August 1972.

22.   Wolf, E.G.  and Strand. J.A.  "Determination of Acute and Chronic Effects
     of Treated  Ballast Water on Selected Aquatic Biota from Port Valdez,
     Alaska."  Final Report of Research Contract No. 212B00934, Battelle-
     Pacific Northwest Laboratories, Bellevue, Washington.  April 1973.

23.   Rickard, W.E. and Deneke, F.  "Preliminary Investigations of Petro-
     leum Spillage, Haines-Fairbanks Military Pipeline, Alaska."  U.S.
     Army Corps  of Engineers CRREL Special Report 170, Hanover, New Hampshire.
  ,   April 1972.

24.   Morrow, J.E.  "Oil Induced Mortalities in Juvenile Coho and Sockeye
     Salmon."  J. Mar. Res. 31 3, Sept. 1973, 135-143.

25.   Rice, SiD.   "Toxicity and Avoidance Effects with Prudhoe Bay Oil and
     Pink Salmon Fry."  In Prevention and_ Control of Oil Spills. American
     Petroleum Institute, MarcF T9T37

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                                      34
26.  Glaeger, J.C.  and Vance, 6.P.   "A  Study of the Behavior of  Oil  Spills
     in the Arctic."  U.S. Coast Guard  Proj. #714108/A/001,002,   Washington,
     D.C.  February-1971.

27.  Wolfe, L.S.  and Hoult, D.P.   "Effects  of Oil  Under Sea  Ice."
     Massachusetts  Institute of Technology  Fluid Mechanics Laboratory.
     U.S.C.G. Cont. #DOT-CG 12438-A,  Cambridge, Mass.  August  1972.
                      
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