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January 2011 BWT Facility Renovation Status Page 1

Status Review of BWT Facility Renovation PWSRCAC Board of Directors Meeting

January 20, 2011

January 2011 BWT Facility Renovation Status Page 1

January 2011 BWT Facility Renovation Status Page 2

Introduction •  Alyeska is in the process of completing a major renovation of

the Ballast Water Treatment (BWT) facility at the Valdez Marine Terminal

•  The goals of this renovation were to: –  Enhance safety –  Reduce hazardous air pollutant (HAP) emissions –  Comply with and renew the NPDES wastewater permit –  Meet changing operating conditions –  Maintain high reliability

•  Renovation work is about one-year behind schedule due to the extensive amount of pilot testing which was required to ensure that appropriate technology is used

•  The majority of goals have already been substantially met (e.g. air emissions greatly reduced and tank headspaces inert)

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January 2011 BWT Facility Renovation Status Page 3

Renovated BWT Facility Process •  Facility treats water that may contain petroleum hydrocarbons •  Influents are primarily non-segregated tanker ballast, storm

water runoff and industrial wastewater •  Renovated plant configuration is a 4-step treatment process:

−  Gravity separation in the 90s Tanks to remove readily separable oil and solids

−  Dissolved Air Flotation (DAF) to provide removal of suspended and emulsified oil and solids

−  Air Strippers to remove volatile hydrocarbons −  Polishing Ponds to biodegrade trace amounts of residual pollutants

and enhance water clarity •  Thermal Oxidizers / Incinerators are installed to control

hazardous air pollutant emissions •  Plant includes facilities for recovering separable oil

(recovered crude system)

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Key Issues Addressed •  Safety:

–  Headspace in fixed roof tanks were at times in the flammable range (This was per the original codes, but is no longer acceptable to APSC)

–  Some areas of the plant required the periodic use of respirators or other measures to protect workers against hazardous air pollutant exposure

•  Environmental: –  Needed to renew and continually comply with the NPDES permit –  Control of air emissions

•  Process Changes: –  BWT influent volumes have significantly decreased with marine fleet

conversion to segregated, double-hull tankers and reduced pipeline crude oil throughput (see following slide)

–  Plant water temperature, contaminant loading and salinity reducing due to increased proportionality of storm water runoff to ballast water

•  Lifecycle Upgrade: –  Aging facility with older technology

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January 2011 BWT Facility Renovation Status Page 5

Ballast Water Flow Forecasts

(NOTE: Original plant design flow was 30,000,000 gal/day)

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2007 BWT Facility Renovations •  Tied BWT Tanks 93 & 94 to the VMT Vapor Control System •  Installed upgraded (V5) oil skimmers in the BWT tanks •  Performed pilot testing:

–  Pilot four-cell Induced Gas Flotation (IGF) –  Pilot walnut shell filters –  Pilot 4 and 7 tray air strippers –  Pilot photo-catalyst

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2008 BWT Facility Renovations •  Cleaned Tank 92 and placed in standby •  Performed detailed testing of secondary treatment equipment •  Installed new Air Stripper System to remove volatile

hydrocarbons (BTEX): (Operational 2Q 2009) –  New Power Distribution Center –  Four Shallow Tray Air Strippers –  Two Thermal Oxidizers –  Three Propane Tanks

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2009/2010 BWT Facility Renovations •  Installed analyzers on Tanks 13 & 14 and West Metering to

limit and better control the BWT plant influent (Operational 1Q 2011) •  Upgraded and completely renovated DAF Cells 5 & 6:

–  Covered DAF 5 & 6 and tied to Thermal Oxidizers for vapor control –  Replaced Pressure Retention Tanks and DAF Compressors –  Performed major repairs to entire DAF system

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January 2011 BWT Facility Renovation Status Page 9

2010 BWT Facility Renovations •  Completed construction of covered DAF renovations •  Finalized pilot testing of Moving Bed Bio-film Reactor (MBBR),

Fixed Bed Bio-film Reactor (FBBR) and Multi-plate Bio-film Reactor (MPBR)

•  Repaired and coated DAF Building structure •  Replaced DAF inlet piping

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Planned 2011/2012 BWT Renovations •  Convert the existing Biological Treatment Tanks (BTTs) into

Polishing Ponds to biodegrade trace amounts of residual pollutants and enhance water clarity. Alternatively, a Moving Bed Bio-film Reactor may be installed in the DAF 1 - 3 area.

•  Replace the DAF Building roofing •  Replace DAF lighting with energy efficient induction lights •  BWT Tank 94 piping replacement in the tank farm •  Obtain renewed NPDES permit from EPA in 2011