Wall Street Journal

Air Quality At `Clean' Alaska Oil Field Caused Fine-Report

By BENOIT FAUCON
June 7, 2005 6:41 p.m.
Of DOW JONES NEWSWIRES

LONDON -- A ConocoPhillips (COP) field described by a U.S. Senator as
the "cleanest in the world" has been fined by Alaska regulators for air
quality violations, official records show.

An official report from the Alaska Department of Environmental
Conservation obtained by Dow Jones Newswires shows that the U.S. oil
company was forced to pay an $80,000 civil penalty for exceeding carbon
monoxide emissions in its Alpine oil field in March of last year.

The news could be damaging for Senators currently seeking the opening of
the Arctic National Wildlife Refuge to oil companies to reduce U.S.
dependence on energy imports.

The proposal is set to be submitted to a senatorial vote later this year
as part of a budget bill. The $80,000 fine against Conoco followed a
probe that showed the field's processing turbines had released an annual
excess of 215 tons of carbon monoxide in the area, which is only 8 miles
from the native village of Nuiqsut.

The records sharply contrast with statements by Senator Pete Domenici,
R-N.M., describing the field as "the cleanest oil development in the
world" after a visit on the site in March. "I saw winter wildlife on the
tundra grazing peacefully in sight of the clean, tightly clustered wells
on the Alpine field," Domenici is quoted as saying in a statement
released by the Senate energy and natural resources committee. Domenici
is chairman of the committee.

Alpine was the only recently producing field visited by senators - which
also included Alaska Sen. Lisa Murkowski - who wanted to find out about
the possible environmental impact of potential oil development in ANWR.

Alpine, operated and 78%-owned by Conoco, is one of the most recently
opened fields and as a result, uses more modern technology than most of
Alaska's aging oil industry.

Conoco and the ADEC didn't return calls. Domenici's office referred a
request for comment to the Senate energy committee, which declined
comment.

Environmental and safety activist Chuck Hamel has written to Domenici to
warn of the environmental risks raised by the Alpine field.

-By Benoit Faucon, Dow Jones Newswires; +44 207 842 9266; 
benoit.faucon@dowjones.com