Company ties offer to halt exporting Alaska crude to merger

WASHINGTON (AP)-- BP Amoco will halt exporting Alaska crude oil and divert the 60,000 barrels a day to California if it gets<br>approval for its merger with Atlantic Richfield Co., the British-based oil

Thursday, March 23rd 2000, 12:00 am

By: News On 6

WASHINGTON (AP)-- BP Amoco will halt exporting Alaska crude oil and divert the 60,000 barrels a day to California if it gets
approval for its merger with Atlantic Richfield Co., the British-based oil company said Thursday.

The company made its intentions known in a letter to Rep. Don Young, R-Alaska, chairman of the House Resources Committee, who
pushed legislation five years ago that allows Alaska oil to be exported.

The BP Amoco decision was hailed by Rep. George Miller, D-Calif., as "the right thing to do" and a "welcomed announcement" at a time when oil shortages are causing gasoline
prices to soar, especially on the West Coast.

But BP Amoco spokesman Tom Koch emphasized that the decision to end exports after the current export contract expires is contingent on government approval of the BP-Amoco purchase of Atlantic Richfield, or Arco as it is commonly called.

"All of this is contingent on the FTC giving us approval," said Koch in a telephone interview.

The Federal Trade Commission is reviewing a revised proposal that would have Arco sell all of its Alaska petroleum holdings to Phillips Petroleum Co., as a condition for the merger with BP Amoco. The FTC had rejected and challenged in court an earlier proposal because it said the combined company would dominate oil production in Alaska's North Slope.

It's not known when the FTC will make a decision, although it's widely anticipated the merger now likely will go through.

In the letter to Young, BP Amoco said once the current export contract expires at the end of April "we do not have subsequent plans to export." The company accounts for all of Alaska's current 60,000 barrels of day that are being sent to Asia.

"Once our acquisition of Arco is complete, we would expect to run all of our Alaska crude through Arco's excellent West Coast
refining and marketing network," wrote Larry D. Burton, BP Amoco's vice president for U.S. governmental affairs.

A half dozen West Coast lawmakers last week called on President Clinton to halt Alaska oil exports, arguing the oil is needed in
California, Oregon and Washington.

Congress approved the exporting of Alaska oil in 1995 after extensive lobbying by Alaska's lawmakers and the oil industry. The Clinton administration supported the exports at the time.

White House Chief of Staff John Podesta said the administration was reviewing the idea of suspending exports. Administration officials have said privately that it's unlikely any formal action against exports would be taken.

BP Amoco is based in London, while Atlantic Richfield has its headquarters in Los Angeles.