Those projects included $18.5 million spent this summer to raise the 20-foot berm designed to protect the tanks from volcanic mudslides an additional 15 feet. The Drift River tank farm sits in the flow path of an active volcano, Mt. Redoubt, which erupted violently in 1991 and 2009. The 2009 eruption halted oil movements through the system for 6 months. The facility then reopened, but operated without the tank farm, which caused much higher shipping costs because tankers could not be fully loaded.Hilcorp had hoped to reactivate two of the seven, 270,000-barrel tanks by October. However, the company will likely only be able to use one tank for the time being due to concerns by Alaskan environmental regulators and the public.
Miller Energy Resources Increases Expected Oil Revenue
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