The Council was formed after the Exxon Valdez oil spill of 1989 by citizens of the region to provide a voice for communities affected by oil industry decisions in Prince William Sound, the Gulf of Alaska, and Cook Inlet. As part of a 1990 contract with the Alyeska Pipeline Service Company, the Council receives funding but remains absolutely independent from Alyeska as long as oil flows through the trans-Alaska pipeline. Under the terms of its contract with Alyeska, the Council reviews, monitors, and comments on various aspects of the company's operations, namely: oil spill prevention and response plans, environmental protection capabilities, and actual and potential environmental impacts of terminal and tanker operations.