1. Relocation of the Operations Control Center Oil Movements May 4, 2007 For RCAC Board Meeting

2. April 24, 2007Alyeska Pipeline 2 Scope of Work Relocate primary the Operations Control Center to AT&T facility on Government Hill in Anchorage Alternate Operations Control Center in AT&T facility near Palmer Implement Security Operations Control Center in Anchorage Implement Security Alternate Operations Control Center in Palmer

3. April 24, 2007Alyeska Pipeline 3 Rationale New technology and infrastructure allows for relocation of Operations Control Center Offers redundant capability to control pipeline and terminal operations Central location for Operations Control Center, Operations Engineering and Supervisory Control and Data Acquisition maintenance Operations Control Center Facility situated at the hub of telecommunications infrastructure for TAPS Superior functional and organizational efficiency Relocation is transparent and does not impact or change current controls and monitoring of pipeline and terminal

4. April 24, 2007Alyeska Pipeline 4 Rationale ( cont.) Enhanced availability of public infrastructure with access to: Airport Control Systems Vendors Telecommunication providers Highway High flight availability/flexibility to TAPS sites Best integration with future TAPS infrastructure

5. April 24, 2007Alyeska Pipeline 5 Background Studies throughout the past ten year identified Anchorage as optimal site for primary Operations Control Center 2004 & 2005- Reviewed suitable sites and options for primary Operations Control Center 2006- Preliminary / Detailed Engineering (including seismic) for selected sites

6. April 24, 2007Alyeska Pipeline 6 What Remains the Same Relocation does not impact or change current controls and monitoring of pipeline and terminal Berth Operators will be on the berths while tankers are along-side loading Power / Vapor control room remains at the VMT Technicians, (Instrument, Electrical, Maintenance, Mechanical, etc) will remain at the VMT

7. April 24, 2007Alyeska Pipeline 7 Scope Details – Operations Control Center Purchase and install new Control and Telecommunication equipment, matching existing design Co-locate operations engineers and Supervisory Control and Data Acquisition personnel within Operations Control Center facility Co-locate Security Operations Control Center to monitor TAPS through enhanced security system New location will have improved fire detection and suppression systems

8. April 24, 2007Alyeska Pipeline 8 Cutover & Testing Anchorage Operations Control Center and VMT Operations Control Center will initially run in parallel Test Procedures to include: Supervisory Control and Data Acquisition Cyber Security Supervisory Control and Data Acquisition Commands Alarm Groups Failover Scenarios Event Logs Control Points (Operations Control Center vs. Alternate Operations Control Center vs. field)

9. April 24, 2007Alyeska Pipeline 9 Alternate Operations Control Center Details Palmer site meets seismic criteria for universal building code ‘Essential Facility’ 40 miles from primary Anchorage Operations Control Center Stand-alone backup generator New air handler and air conditioner Recent electric utility service upgrade New uninterrupted power supply Utility seismic upgrades New Novec © Fire suppression system

10. April 24, 2007Alyeska Pipeline 10 Telecommunication System Three alternate route Comm capabilities over divergent paths 1 st path- extending AT&T digital microwave to Anchorage over AT&T’s fiber optic cable system. Sub-sea network, connecting Valdez to Anchorage via Whittier 2 nd path-GCI’s fiber optic cable extension. Also sub-sea, connects Valdez to Anchorage through Whittier 3 rd path- AT&T’s digital MW system connects Glennallen to Palmer (Nek Lake) Interconnecting Government Hill and Nek Lake sites is a redundant fiber optic cable network

11. April 24, 2007Alyeska Pipeline 11 Schedule Obtained Municipality of Anchorage building permit Starting remodel Summer 2007 complete remodel, complete Operations Control Center equipment installation Fall 2007 Functional Check Out, run in parallel with VMT Operations Control Center 2008 Project Closeout