Oil Story Left Out Some Important Points

Contrary to the implications in the story “Drilling for Answers in Alaska” (Oct. 30), Arco did not withhold information on its Point McIntyre oil discovery in 1988 in order to influence congressional debate on the Arctic National Wildlife Refuge.

Here are the omitted facts as explained to The Times.

The Point McIntyre well site is located in an area that was accessible only by a 10-mile ice road. Our drilling permit restricted operations to a four-month period during the year. On March 22, 1988, Arco found an accumulation of hydrocarbons at Point McIntyre, but the size was unknown. Before testing could be done and while the ice road was still in good condition, operations were suspended.

On April 20, 1988, Arco notified the state that hydrocarbons had been found at Point McIntyre, and plans were outlined for future testing of the well. Arco returned to the well site at the first opportunity in early 1989 and completed testing Feb. 16.

Securities and Exchange Commission regulations require that Arco be able to document any discovery that has a potential impact on the value of its stock before the discovery can be announced. Because of the testing delay, the Point McIntyre find could not be announced until February, 1989.

The ongoing congressional debate on the wildlife refuge had nothing to do with our timing. In fact, our announcement came in the middle of the debate, in plenty of time to be factored into a decision. The debate was still in progress when the Exxon Valdez accident occurred March 24, 1989.

Even with estimated crude oil reserves of 300 million barrels, the Point McIntyre field is not nearly large enough to offset the declining Alaskan production on which Southern California depends. With or without Point McIntyre, the nation cannot afford to lock up the Arctic National Wildlife Refuge’s potential.

H. L. BILHARTZ

Anchorage, Alaska

The writer is president of Arco Alaska Inc.