May - 2012 - Alaska Business Monthly by Alaska Business

Special Section: Oil & Gas â&#x2013; Men's Health

May 2012

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SBA Small Business Person of the Year Rene Haag, Blaines Art Page 28

Alaskaâ&#x20AC;&#x2122;s Fishing Industry The universal relevance of a multi-billion dollar industry Page 50

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m AY 2 0 1 2 TA B L E DEPARTMENTS

CONTENTS

About the coVer

From the Editor. . . . . . . . . . . . . . . . . . 7 Inside Alaska Business . . . . . . . . . . . 8 Right Moves . . . . . . . . . . . . . . . . . . . 44 Market Squares . . . . . . . . . . . . . . . . 49 Alaska This Month . . . . . . . . . . . . . 114 Events Calendar . . . . . . . . . . . . . . . 117 Alaska Trends . . . . . . . . . . . . . . . . . 119 Ad Index . . . . . . . . . . . . . . . . . . . . . 122

FEATURES

ARTICLES

Fisheries 50 | Alaska’s Fishing Industry The universal relevance of a multi-billion dollar industry By Paula Dobbyn

View from the top 12 | Mike Miller, Executive Director Alaska Wildlife Conservation Center Compiled by ABM Staff telecom & technology 56 | 10 Myths about Cloud Computing in Alaska By Nathaniel Gates ©2012 Karen Jettmar / AlaskaStock.com

Fish processing plant Dutch Harbor, Amaknak Island, Southwest Alaska.

regional Focus 14 | Ketchikan Alaska’s ‘First City’ By Tracy Barbour

tourism 24 | Alaska Yukon Adventures The unfolding of one man’s plan By Kristin Carter

mining 64 | Niblack Expectations Southeast project advances By Nicole A. Bonham Colby

Financial services 40 | Industrial Strength Market Movement Mergers, acquisitions alter Alaska businesses By Gail West

hr matters 26 | How Do You Like Me Now? Forming lasting partnerships By Dr. Lynne Curry

tourism 20 | 1 Million Cruise Visitors Will this be the season? By Tracy Kalytiak

construction 60 | Aleutians East Borough’s Busy Construction Season Alaska’s down under projects focus on infrastructure By Dimitra Lavrakas

health & medicine 46 | Men’s Health: From Resistance to Respect Manning up for a journey to Oz By K.T. McKee

local news 118 | Independents in Spenard Join Forces New Chamber of Commerce created By Joette Storm

www.akbizmag.com • Alaska Business Monthly • May 2012

(continued on page 6)

9yea0rs ago,

we opened

a small ALASKA BUSINESS

Today, with 30 community branches across Alaska, we’ve never forgotten our small-business roots. We consider it a privilege to work with and serve our fellow Alaskans. That’s what sets us apart. That’s the secret to our longevity. No matter how fast or far our technology advances – or how extensively we customize our business banking services – what really sets First National Bank apart is the people. Alaskans who understand and proudly serve Alaskans in communities across this Great Land we call home. For 90 years we’ve worked with you to help your small businesses grow, prosper and make Alaska a better place tomorrow. Give us a call and we’ll look forward to the next 90 years. Together.

FNBAlaska.com

m AY 2 0 1 2 TA B L E special section

special section

SMALL BUSINESS

OIL & GAS

28 | Rene Haag, Blaines Art SBA Alaska Small Business Person of the Year By K.T. McKee 32 | YWCA Alaska Women’s Business Center Leveling the playing field for women entrepreneurs By Caren M. Ailleo 34 | Key Strategies for Entrepreneurs Winning clients, customers and awards By Sam Dickey 36 | Hiring Locally in Alaska Rules and regulations for resident hire By Renea I. Saade and Anne Marie Tavella

CONTENTS

74 | Following North Slope Crude From the ground to the gas station By Zaz Hollander 78 | Fabricating Oilfield Modules Work awaits tax changes By Mike Bradner

BP’s Gathering Center 1 in Prudhoe Bay at sunset. The steam is a result of minus 25 degree temperatures in March.

70 | Savant Alaska LLC Expanding operations at Badami Field Unit By Vanessa Orr 72 | Cook Inlet Revitalization New opportunities for oilfield support services By Paula Cottrell

82 | North Slope Oil Industry Employment McDowell Group releases employment study By Rindi White 86 | Alaska’s Natural Gas Problem Dealing with project economics By Larry Persilly 90 | Avoiding Intergenerational Inequity Commentary by Dave Harbour 92 | 2012 Oil & Gas Directory

www.akbizmag.com • Alaska Business Monthly • May 2012

FROM THE EDITOR Follow us on and

Volume 28, Number 5 Published by Alaska Business Publishing Co. Anchorage, Alaska Vern C. McCorkle, Publisher 1991~2009

EDITORIAL STAFF Managing Editor Associate Editor Art Director Art Production Photo Consultant Photo Contributor

Susan Harrington Mari Gallion Candy Johnson Linda Shogren David Geiger Chris Arend Judy Patrick

BUSINESS STAFF President VP Sales & Mktg. Account Mgr. Account Mgr. Accountant

Jim Martin Charles Bell Anne Campbell Bill Morris Mary Schreckenghost

501 W. Northern Lights Boulevard, Suite 100 Anchorage, Alaska 99503 (907) 276-4373 Outside Anchorage: 1-800-770-4373 Fax: (907) 279-2900 www.akbizmag.com Editorial e-mail: editor@akbizmag.com Advertising e-mail: materials@akbizmag.com

Dangerous Season Ahead

ayday, mayday, mayday! The phrase used the world over to signal distress comes to us from the French venez m’aider, which translates to “come help me.” Primarily used in the marine and aviation arena, mayday is any emergency notiﬁcation indicating grave and imminent danger. There is a certain protocol for using this distress signal, which I’ve illustrated in an example below. We are embarking on a dangerous season. MAYDAY, MAYDAY, MAYDAY, this is ALASKA, ALASKA, ALASKA (Say mayday three times and identify the name of your vessel three times as well.) MAYDAY, MY POSITION IS: South: 51° 13’ N. at the tip of Amatignak Island in the Aleutian Islands North: 71° 23’ N. at Point Barrow East (towards Canada): 129° 59’ W. at Cape Point in Southeast Alaska West (towards Russia): 172° 27’ E. at Cape Wrangell on Attu Island (Let them know where to find you, state your GPS latitude and longitude or compass bearing from a well known object.) I AM without meaningful tax relief to ACES, WITH 725,000 PERSONS ON BOARD, I REQUIRE IMMEDIATE ASSISTANCE (Say what is wrong and let responders know how many people need to be rescued.) Whether anyone hears the distress signal is another matter but keep trying until your last breath—or barrel.

Pacific Northwest Advertising Sales 1-800-770-4373

—Susan Harrington, Managing Editor

ALASKA BUSINESS PUBLISHING CO., INC.

ALASKA BUSINESS MONTHLY (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc., PO Box 241288, Anchorage, Alaska 99524; Telephone: (907) 276-4373; Fax: (907) 279-2900, ©2012, Alaska Business Publishing Co. All rights reserved. Subscription Rates: $39.95 a year. Single issues of the Power List are $15 each. Single issues of Alaska Business Monthly are $3.95 each; $4.95 for October, and back issues are $5 each. Send subscription orders and address changes to the Circulation Department, Alaska Business Monthly, PO Box 241288, Anchorage, AK 99524. Please supply both old and new addresses and allow six weeks for change, or update online at www.akbizmag.com. Manuscripts: Send query letter to the Editor. Alaska Business Monthly is not responsible for unsolicited materials. Photocopies: Where necessary, permission is granted by the copyright owner for libraries and others registered with Copyright Clearance Center to photocopy any article herein for $1.35 per copy. Send payments to CCC, 27 Congress Street, Salem, MA 01970. Copying done for other than personal or internal reference use without the expressed permission of Alaska Business Publishing Co., Inc. is prohibited. Address requests for specific permission to Managing Editor, Alaska Business Publishing. Online: Alaska Business Monthly is available at www.akbizmag.com/archives, www.thefreelibrary.com/ Alaska+Business+Monthly-p2643 and from Thomson Gale. Microfilm: Alaska Business Monthly is available on microfilm from University Microfilms International, 300 North Zeeb Rd., Ann Arbor, MI 48106.

Aurora borealis over the trans-Alaska oil pipeline in the Brooks Range.

www.akbizmag.com • Alaska Business Monthly • May 2012

INSIDE ALASKA BUSINESS By Nancy Pounds

ATHENA Awards Pay Tribute to Alaskan Women

ow in its 18th year recognizing those who have encouraged women in Anchorage to succeed in business, the Anchorage Chamber of Commerce announces the following 2012 inductees into the Anchorage ATHENA Society: Susan Anderson, president and CEO of CIRI Foundation; Carol Butler, owner of Butler & Butler; Barbara Gruenstein, municipal clerk at Municipality of Anchorage; Josie Hickel, VP of HR and administration at Pebble Ltd. Partnership; Noelle Kompoff, staff attorney for Tatitlek Corp.; Julie Millington, VP of patron services at the Alaska Center for Performing Arts; Anne Reed, owner of Read Systems; Julie Saupe, CEO of Visit Anchorage; Colleen Starring, president of ENSTAR Natural Gas Co.; Janet Weiss, VP resource, BP; Dr. Hope Wing, naturopathic physician (retired). The Anchorage ATHENA Society is a program of the Anchorage Chamber of Commerce and a local chapter of ATHENA International, dedicated in encouraging the potential of women as valued members and leaders of the business community.

Local Architect Garners National Esteem

. Claiborne Porter, CGP, CGR, has been named the 2011 Certified Graduate Remodeler of the Year by the National Association of Home Builders in recognition of his successful efforts to

raise awareness of this educational designation for remodelers. Porter is president of NCP Design/Build Ltd. and the principal of NCP Architects and Planners, both of which are based in Anchorage. He has twice been named the Builder of the Year by the Alaska State Home Building Association.

Hackney & Hackney Wins Multiple Reed Awards

or the second year in a row, Anchorage-based Hackney & Hackney has won Reed Awards for Newspaper, Radio, Television and Best Overall Public Affairs Campaign. The Reed Awards recognizes the very best in political campaigning and communications in the United States. This year, Hackney and Hackney won six awards, more than any other political consulting firm in the United States.

Youth Volunteers Recognized

eressa Baldw in of Sitka and Keefer Brown of Wasilla were honored as top youth volunteers, receiving the Prudential Spirit of Community Awards. Baldwin, a senior at Mt. Edgecumbe High School, started a nonprofit organization that encourages Alaskan high school student councils and community leaders to implement free suicide prevention programs in their schools. Brown is a seventh-grader at Teeland Middle School. He raised more than $3,500 to help rehabilitate sick and injured seals at the Alaska SeaLife Center in

Seward. Brown made and sold candles and other items decorated with shells and seaweed that he collected on the beach.

Aramark Parks and Destinations Wins Industry Award

our employees for ARAMARK Parks and Destinations were honored at the Alaska Hotel and Lodging Association’s Stars of the Industry Awards. Paulette Parsons received the front office manager of the year award. Parsons is front office manager for the McKinley Chalet Resort. Brian Huling received the Rising Star Award. Huling is inventory manager for ARAMARK in Alaska. Drew Cottle was chosen Guest Services Manager of the Year. Cottle is a guest services manager at the McKinley Chalet Resort. Carol Fraser was honored as Sales Manager of the Year. Fraser is regional director of sales and marketing for ARAMARK in Alaska. Glacier Bay Lodge was chosen Outstanding Property of the Year. The lodge is the only commercial lodge located inside Glacier Bay National Park.

Corps of Engineers Awards Dredging Contract to Local Firm

he U.S. Army Corps of Engineers, Alaska District, has awarded an annual dredging contract at three locations on the Kenai Peninsula to a locally owned firm. Alaska Marine Excavating of Anchor Point won the $5 million,

www.akbizmag.com • Alaska Business Monthly • May 2012

INSIDE ALASKA BUSINESS five-year contract to dredge the Ninilchik Harbor, the Homer Harbor and the U.S. Coast Guard’s Hickory Berth at Homer. The company’s bid was the lowest price with technically acceptable criteria.

Cloud49 Releases New Software

ireweed Human Capital Management System (HCMS), a cloudbased application designed to assist businesses with human capital challenges, is now available to companies of all sizes, according to Cloud49, the company that developed and distributes the software. Cloud49 specifically designed Fireweed to assist Alaska Native corporations with their unique human capital challenges. The Fireweed suite is used to track, manage and report on multiple human resource-related functions within companies and organizations. It comprises five applications: Compliance and Policy Management; Shareholder Management; Student and Scholarship Management; Board of Directors Management; and Compensation Management.

UIC Affirms Research Commitment

kpeaġvik Iñupiat Corporation (UIC), headquartered in Barrow, Alaska, recently reinstated its management authority over the Barrow Environmental Observatory, as well as other Barrow-based scientific research properties it owns, including a number of facilities at the former

Naval Arctic Research Laboratory. This action reflects UIC’s commitment to encourage and support research activities in a manner that not only promotes an understanding of environmental changes, but also creates economic sustainability for the region. This support is consistent with UIC’s mission and vision, which mandates responsible and strategic land use planning and management. UMIAQ, a wholly owned UIC subsidiary, is a strategic partner in a team that also includes CH2M HILL Constructors Inc., Polar Field Services and SRI International. This team, CH2M HILL Polar Services, provides logistical support for research activities in Barrow and was recently awarded an eight-year contract renewal in support of Arctic research funded by the National Science Foundation. UMIAQ will continue to provide comprehensive support for traveling researchers by providing local labor, equipment and lodging.

Outstanding School Business Partnerships

number of Anchorage schools and businesses were recognized with STAR Awards at an April luncheon honoring the best of the best in the Anchorage School Business Partnership program. Started in 1991 as a joint venture between the Anchorage Chamber of Commerce and the Anchorage School District, the program has grown from 28 businesses to more than 500 partnerships throughout the

city. Partners provide schools with guest speakers, classroom volunteers, work experience for students, material and monetary resources, as well as other special activities.

2012 sTar aWard Winners

Student: Perla Cruz, Bartlett High School Educator:Valerie Ekberg-Brown, Chugiak High School Executive: Dora Wilson, NECA/ IBEW Superintendent: Joint Base Elmendorf Richardson Partnership Program and ASD Shining STAR: Carol Comeau, Anchorage School District Superintendent Business Partnerships: Alaska Rubber & Supply and Romig Middle School Alaska Veterans Administration Hospital and Bartlett High School Anchorage International Rotary Club and North Star Elementary School Anchorage South Rotary Club and Chinook Elementary School NMS and DiTomaso’s Fruit & Vegetables and SAVE High School

Alaskan Earns Lifetime Achievement Award

he Western States Seismic Policy Council awarded John Aho the 2012 lifetime achievement award in seismic risk reduction. Aho is chairman of the Alaska Seismic Hazards Safety Commission. He has 35 years of public- and private-sector leadership in earthquake engineering and seismic risk reduction.

Pacific Pile & Marine, LP (PPM) is seasoned in projects containing complicated logistics, specialized equipment, environmental constraints and long lead time materials.

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Working in the Alaska market for over a decade, our team is dedicated to the preplanning schedule control and logistical support required to deliver projects in this environment. 620B East Whitney Road I Anchorage, AK 99501

www.akbizmag.com • Alaska Business Monthly • May 2012

INSIDE ALASKA BUSINESS

Chenega Acquires Hot Wire Inc.

ot Wire Inc. (Hot Wire) including its five Alaska-based subsidiaries: Hot Wire Electric Inc., Hot Wire Communications Inc., Electric Inc., Redi Electric Inc. and Alaska Power & Communications LLC (55 percent), have been acquired by Chenega Commercial Holdings LLC, a subsidiary of the Chenega Corp. Hot Wire and its subsidiaries have been providing superior commercial and residential electrical and telecommunications contracting services since 1960, with extensive experience in both private and government construction throughout the United States and internationally. Hot Wire’s companies have worked on numerous design/ build projects across the state, providing services to clients such as the U.S. Army Corps of Engineers ( Joint Base Elmendorf-Richardson, Fort Wainwright, Clear Air Force Base, Fort Greely, Eielson AFB), Providence Alaska Medical Center, Alaska Center for the Performing Arts, FedEx, State of Alaska, Municipality of Anchorage, University of Alaska Anchorage and Fairbanks.

Stage 2 Studios Signs Video Game Deal

tage 2 Studios LLC announced an agreement with UK-based adventure game publisher Lace Mamba Global for worldwide retail and digital distribution of “Lifeless Planet,” an upcoming action-adventure by David Board.

Lifeless Planet recently captured the attention of the gaming community through a successful crowd-funding campaign at Kickstarter.com which surpassed 200 percent of its funding goal. In addition, the game project garnered 625 pre-orders, making it the most popular action-adventure game of all time on Kickstarter. Lifeless Planet is a third-person cinematic sci-fi action-adventure. The game is slated for release on PC and Mac by the end of 2012.

UAF Engineers Win Top Honors

he University of Alaska Fairbanks’ Society of Automotive Engineers team took top honors in the zero emissions category of the 2012 SAE Clean Snowmobile Challenge held at Michigan Technical University in Houghton, Mich., in March. The win earned one member of the team an invite from the National Science Foundation to travel to Greenland with the snowmachine and offer clean transportation at research sites. The challenge presented in the zero emissions category was to convert a standard snowmachine to one that uses battery power and has zero emissions, while reducing noise and maintaining low cost and performance. Judged by price, weight, range, performance/drivability, cold start, static display and noise level, UAF’s sled earned the top spot after the weeklong competition. The team also brought home awards for most improved machine, best cold start, best design, draw bar pull award and best hybrid paper.

The separate internal combustion category challenged teams to reduce noise and gaseous emissions while maintaining performance and low cost. UAF had a separate internal combustion team, which finished eighth among 12 teams. UAF was one of two schools to enter teams in both competitions.

Perkins Coie Launches Website for Start Ups

erkins Coie launched startupPerColator.com, a user-fr iendly interactive website that enables entrepreneurs to generate the legal documents needed to form a Delaware “C” corporation, free of charge. Among others, available documents in the startupPerColator include a Certificate of Incorporation, Bylaws, Action by Written Consent of the Sole Incorporator, Action by Unanimous Written Consent in Lieu of the Organizational Meeting of the Board of Directors and an Action by Written Consent of the Stockholders. To aid founders in pursuit of funding, startupPerColator also offers users access to a free customizable term sheet generator that the firm developed based on National Venture Capital Association (NVCA) model documents. At startupPerColator, users who want to stay informed about trends and best practices related to startup business planning, financing, trade secret protection and much more can subscribe to the Founder Tip of the Week blog. Content for the website is continuously updated by Perkins Coie Emerging Companies practice attorneys. q

Pacific Pile & Marine, LP (PPM) is seasoned in projects containing complicated logistics, specialized equipment, environmental constraints and long lead time materials.

www.pacificpile.com I (907) 276-3873 276-3878

Working in the Alaska market for over a decade, our team is dedicated to the preplanning, schedule control and logistical support required to deliver projects in this environment. 620B East Whitney Road I Anchorage, AK 99501

www.akbizmag.com • Alaska Business Monthly • May 2012

1049 AB

1049 ABM App Mgmt_PR.indd 1

4/20/11 5:03 PM

View from the Top

Compiled By ABM Staff

Mike Miller, Executive Director Alaska Wildlife Conservation Center

n 1985 Mike Miller acquired a few bison from a rancher (Burl Mercer) in Healy and took care of them on some property he had in Palmer. The herd grew in size and popularity. People and school groups would stop in to chat and see the bison. Miller enjoyed meeting these people and speaking to the students. Visitors come to Alaska to see glaciers, mountains and wildlife, but viewing wildlife, unlike glaciers and mountains, is unpredictable. Knowing this and eager to develop the hobby bison farm in Palmer into an attraction, he stumbled upon the property in Portage, an old homestead that was for sale. With help from an SBA start-up loan the property was purchased and the work began. mOsT challenGinG Musk Ox bulls are big, powerful and aggressive. They will not shy away or flee. They charge every time anyone enters their space. They will not hesitate head butting a vehicle. FavOriTes Luckily, the wood bison are my favorite: AWCC has over 100 of them and 45 calves expected this spring. Although they are big, mature bulls weigh 2,700 pounds, they are easy to control and care for. Bears by far are the main attraction—visitors are drawn to and are fascinated by the brown bears. People are naturally apprehensive and fearful of bears. AWCC allows the visitor to get close to the bears in their 18-acre enclosure. mOsT reWardinG There are many aspects of the business that are rewarding. Seeing the Center as a whole grow over the years is incredibly rewarding, also seeing it turn into more than just a facility for animals, but also as an educational campus has been unexpected and rewarding. FundinG Our biggest source of revenue is our admission and gift store sales. We rely heavily on this to keep the doors open, and seek grants and other funding to support education programs and capital projects. Our local market is very supportive. In the winter, we love to see folks from all over the state with family and visitors in town, conferences that visit, and guests from all walks of life. Our gift store is a great place to do Christmas shopping, and we offer animal adoptions and memberships throughout the year.

FuTure visiOn AWCC is currently undergoing several projects. We broke ground on two separate projects in the last year: our wildlife shelter and intern housing unit will be complete this summer, and is the first of three that will be constructed on the AWCC Campus. Additionally, we are constructing Phase I of our marquee BEARS at AWCC project, which is a series of raised boardwalks that will provide guests with one-of-a-kind bear viewing opportunities. We are fundraising for additional phases of the project, which include a large interpretive center and theater. We’re also working on a tidal estuary exhibit, and looking to expand our gift store and food service facilities. Overall, the Center will continue to grow, but we are charting a very specific course. We continue to move in the direction of education and creating a campus on the facility where visitors can learn about wildlife and our environment here in Alaska. Whether you are just passing through as a one-day visitor, or a student living on campus, we will continue to strive toward being a one-of-a-kind educational facility dedicated to the conservation of Alaska wildlife. q

www.akbizmag.com • Alaska Business Monthly • May 2012

ALASKA IS OUR HOME

Carlile operates across the United States and Canada but our roots are planted firmly in Alaska – and that’s why we’re strong supporters of responsible resource development. Hard work and a dedication to growing our oil and gas, mining, fishing and construction industries has been at the core of Carlile’s business model since inception, ensuring these industries are backed by a transportation company that appreciates all our great state has to offer.

solutions finder.

www.carlile.biz l 1.800.478.1853 ALASKA I HAWAII I UNITED STATES I CANADA

By Tracy Barbour

Regional Focus

Ketchikan

Alaska’s ‘First City’ ABOVE: Historic Creek Street is one of the most popular places for tourists to visit in Ketchikan. Built over Ketchikan Creek, it is home to art galleries, gift shops and restaurants, and is a great place for salmon viewing. BACKGROUND: Flightseeing operators are based along the waterfront near the cruise ships, with an older residential area overlooking the water.

estled in the Tongass National Forest, Ketchikan is a city that’s surrounded by the splendor of the Alaska wilderness. It’s the first port of call or “First City” for northbound cruise ships, commercial vessels and state ferries traveling along the famous Inside Passage. Ketchikan is also known as the “Salmon Capital of the World.” Each year, it hosts large salmon fishing tournaments that attract anglers who flock from all around the state to compete for thousands of dollars worth of prizes. Home to 8,050 residents, Ketchikan is one of the most populated incorporated places in Alaska. And in the past decade, it’s experienced considerable growth, increasing 1.6 percent since the 2000 census. The city is part of the Ketchikan Gateway Borough, which boasts about 14,100 residents. Ketchikan Mayor Lew Williams describes his city as a diverse community with individuals who bring different ideas to the table. The members of

the community and local government strive to provide an environment that’s conducive to business. “Both the city council and borough are very probusiness,” Williams said. “Every time we do a vote, we’re talking about what we can do for the business community. It’s always a positive vote.”

indusTries

Ketchikan’s support for industry is evident by its economic diversity. Primary drivers of the city’s economy are fishing, tourism, health care and government. The salmon industry, in particular, is doing quite well, according to Keith Smith, executive director of the Greater Ketchikan Chamber of Commerce. “The salmon runs continue to be strong,” he said. “The prices are up, especially for the premium species of salmon.” The visitor and hospitality industry is also trending in a positive direction. One of the leading tourist destinations in the state, Ketchikan has seen cruise ©2012 Chris Arend ship traffic peak at a million passen-

gers a year. That number has since decline to about 890,000, but it’s now steadily climbing back up, Smith says. He added: “Each year, additional ships have been added. The industry is rebounding and is very strong.” This year, Ketchikan saw the addition of one cruise ship, according to Williams. Next year, the city will be a port of call for two additional ships. Another strong economy driver for Ketchikan is the maritime industry, which Smith says is growing by “leaps and bounds.” As a major surprise, Ketchikan Shipyard was recently purchased by Vigor Industrial, the largest shipbuilder in the Northwest. The emerging company, Alaska Ship and Drydock, is a very positive development for the city, Smith says. “My guess is it will end up driving more business than ever in the ship building business in Ketchikan,” he said. Smith has also been pleasantly surprised at some of the positive changes he’s seen in the retail industry. The transition

www.akbizmag.com • Alaska Business Monthly • May 2012

involves the Plaza, one of the biggest shopping centers in town. Several years ago, the center had very few stores and was floundering. Now it’s under new ownership/management and has completely reversed course. “It is almost full,” Smith said. “Now it’s a vibrant entrepreneurial accent in Ketchikan.” Historically, timber and natural resources have been significant industries in Ketchikan, but the closing of key pulp and saw mills has had an indelible impact on the local economy. The mining industry, however, is showing promising signs. There are two big mining projects on the horizon: Heatherdale Resources’ Niblack Project and the Bokan Mountain project—both located on Prince of Wales Island. The Niblack Project, situated about 27 miles from Ketchikan, is a copper-zinc-gold-silver prospect in an advanced exploration phase of development. The Bokan Mountain project, which covers 19 square miles, sits 37 miles southwest of Ketchikan. It includes the former high grade Ross Adams Mine, Alaska’s only prior-producing uranium mine. “A lot of people are looking at these mines with a great deal of interest,” Smith said. “They could bring hundreds of jobs.”

during most of the year. According to Williams, the lower rate for electrical power has been instrumental in promoting the expansion of commercial fishing, canneries and other businesses. Another trend Williams has noticed among local stores is more specialization. Smaller retail shops are differentiating themselves from big box stores by offering different products and services. A lot of coffee shops have opened, as well as stores carrying higher-end clothing, shoes and kitchen wares. WalMart has been really good for Ketchikan, but the town needs the influx of smaller,

niche stores, Williams says. He adds, “There’s been some success, and hopefully that will continue.” The city is making an effort to streamline permitting so that it’s an easy, one-stop place to do business. On the less tangible side, Ketchikan is working to develop its quality of life portfolio. “We understand that everything we do that makes this a better place to live will help the economy and help our families,” Smith said. Consequently, Ketchikan is constructing a new aquatic center that is scheduled to open next year. In about

Welcome to

KETCHIKAN

Your Alaska Destination for Meetings and Events. The place where you can accomplish your agenda, while nurturing your soul.

ecOnOmic develOpmenT

Ketchikan’s economy is showing obvious signs of growth, according to Smith. Cruise ship traffic is returning. Businesses are moving into the city to position themselves to serve the mining community. Plus there are a number of construction projects in the works. “It feels like it’s an exciting time to be running the Chamber of Commerce,” Smith said. The growth can partially be attributed to the surge in population. More people are choosing to remain in Ketchikan, and more are relocating there from Outside. It’s a quality of life issue. “People are saying not only do I want to have a business, but I want to invest my life here. Another major factor in the city’s economic growth can be summed up in two words: cheap power. Due to the development of its hydro-electric capacity, Ketchikan generates power at $0.09 to $0.10 per kilowatt hour

Ketchikan Visitors Bureau Helping to serve all your event needs.

Art Lives Here

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www.akbizmag.com • Alaska Business Monthly • May 2012

18 months, Ketchikan residents will have a larger library opening. There’s also a group working to build a performing arts center.

inFrasTrucTure

Key elements of Ketchikan’s infrastructure include a port and harbors

cOmmercial real esTaTe

Ketchikan has a unique commercial real estate industry, according to Re/ Max of Ketchikan Broker Guy Mickel. The market is fairly steady, but there’s a lack of property available for business use. As a result, more business owners are buying old houses and rezoning them for commercial use. Sometimes they purchase a house that’s already zoned commercial, tear it down and construct a new building in its place. Renovating is also becoming common practice. “I just sold an old Burger King building to a bank, which is going to remodel it,” Mickel said. Finding office space on the city’s sewer system is another challenge in Ketchikan. Waterfront property, like in most areas, is a hot commodity there. Recently, Re/Max of Ketchikan listed two properties that offer nice possibilities for business owners. There are two large parcels on the west end of town across the street from the ferry. “It has a load of rock that would have to be removed, but it has water and sewer, and it’s a fairly large lot,” Michel said. There’s another commercially zoned lot at 120 Austin Street. The 6,261-square-foot property is also connected to city water and sewer. It’s currently listed at $165,000.

Cruise ships docking in Ketchikan tower above the downtown buildings and bring close to 1 million visitors to the community.

system, a regional medical center and an international airport. The city operates and maintains six boat harbors: Bar Harbor South, Bar Harbor North, Thomas Basin, Casey Moran, Knudson Cove and Hole-In-The-Wall; the Port of Ketchikan, and three launch ramps. The harbors are situated close to 72-hour parking lots, restrooms, showers, laundry facilities and grocery stores. In addition, Ketchikan has three berths to accommodate the mega-class cruise ships that help support the city’s active tourism industry. Ketchikan is working on a number of harbor and port improvement projects. For example, the city is in the design phase of a project to extend the launch ramp at Bar Harbor South. According to Port and Harbors Director Steve Corporon, the existing single-lane ramp will be replaced with two lanes. “It will relieve some of the congestion,” he said.

“It gets pretty crowded during the day during the summer.” Improvements are also planned for Bar Harbor North, Hole in the Wall and Thomas Basin. Scheduling for these projects will depend on the availability of funding. Major improvements have already started on the port. Ketchikan is completing the first phase of a four-winter project to replace Berths 1 and 2. Next winter will include replacing the Ketchikan Visitor’s Center and other antiquated areas of the port. “We’ve spent $4 or $5 million doing repairs ensuring the port was operational for cruise ships and other uses,” Corporon said. “We should be back up around 900,000 passengers this year. PeaceHealth Ketchikan Medical Center is a vital source of health care services for Ketchikan and the entire region. Formerly called Ketchikan Gen-

www.akbizmag.com • Alaska Business Monthly • May 2012

eral Hospital, the center is a 25-bed critical care access community hospital owned by the city of Ketchikan and operated by PeaceHealth, a nonprofit, voluntary private institution. PeaceHealth Ketchikan Medical Center is planning a four-phase project to expand its aging facilities, so that it can continue delivering the scope and quality of care that it does today. The center is currently finalizing the design and anticipates starting construction in about a year, depending on funding, according to Penny Pedersen, executive director of the Ketchikan Medical Center Foundation. If funding is secured, the entire project could be completed in four years. Phase I of the project—which Pedersen expects to be completed Spring 2015— will cost $62 million. Phases 2 through 4 will require a $14 million investment. The expansion will mainly address three areas: surgery, clinical exam and space, and parking. Phase I will involve adding about 72,000 square feet to the existing campus buildings. “It will double the size of our surgical and support areas, double our clinical capacity, and provide an additional 50 parking spaces on site,” Pedersen explained. Phases 2 through 4 will include a series of renovations of existing building to improve patient flow, consolidate diagnostic imaging functions, and expand the emergency department, lab and other patient support functions. The project will transform the center into a medical campus that’s designed to meet health care needs in the 21st century. “The result will be the ability to deliver a higher level of service and care to our patients into the future,” Pedersen said.

Mary Ellen Frequent Flyer

Meet Mary Ellen Ahmaogak SHE BRINGS MEANING TO THE TERM “FREQUENT FLYER” Every Monday, Mary Ellen flies to Barrow and every Friday she returns to her hometown of Wainwright. She’s made this roundtrip every week for the past 14 years. As a frequent flyer on the North Slope, Mary Ellen knows she can rely on the crew of Era Alaska to keep her safe while she’s in the air. “There’s a trust I feel when flying with Era. I prefer Era Alaska over a * charter because of their known safety record.” A mother of four and grandmother of three, Mary Ellen depends on Era Alaska not only for business needs but to visit her family as well.

View from the Airport Ferry, from left: The M/V Susitna, built in Ketchikan for the Mat-Su Borough, the Alaska State Ferry Columbia, the Taku Provider (an Alaska Marine Lines loaded barge), the small boat harbor and cruise ships lined the docks in Ketchikan last year.

See for yourself why Alaskans like Mary Ellen and her family choose Era Alaska, proudly serving nearly 100 communities statewide. Earn FlyAway Rewards with every flight! 800-866-8394 | flyera.com *5 refers to number of segments flown. Each flown segment earns 10 points. 50 points may be used for a basic, one-way travel award. Ask your local Era Alaska agent for more details.

www.akbizmag.com • Alaska Business Monthly • May 2012

ketchikan city and borough Demographics People QuickFacts Population, 2011 estimate Population, 2010 Population, percent change, 2000 to 2010 Population, 2000 Persons under 5 years, percent, 2010 Persons under 18 years, percent, 2010 Persons 65 years and over, percent, 2010 Female persons, percent, 2010 White persons, percent, 2010 (a) Black persons, percent, 2010 (a) American Indian and Alaska Native persons, percent, 2010 (a) Asian persons, percent, 2010 (a) Native Hawaiian and Other Pacific Islander, percent, 2010 (a) Persons reporting two or more races, percent, 2010 Persons of Hispanic or Latino origin, percent, 2010 (b) White persons not Hispanic, percent, 2010 Living in same house 1 year & over, 2006-2010 Foreign born persons, percent, 2006-2010 Language other than English spoken at home, pct age 5+, 2006-2010 High school graduates, percent of persons age 25+, 2006-2010 Bachelor’s degree or higher, pct of persons age 25+, 2006-2010 Veterans, 2006-2010 Mean travel time to work (minutes), workers age 16+, 2006-2010 Housing units, 2010 Homeownership rate, 2006-2010 Housing units in multi-unit structures, percent, 2006-2010 Median value of owner-occupied housing units, 2006-2010 Households, 2006-2010 Persons per household, 2006-2010 Per capita money income in past 12 months (2010 dollars) 2006-2010 Median household income 2006-2010 Persons below poverty level, percent, 2006-2010 business QuickFacts Private nonfarm establishments, 2009 Private nonfarm employment, 2009 Private nonfarm employment, percent change 2000-2009 Nonemployer establishments, 2009 Total number of firms, 2007 Black-owned firms, percent, 2007 American Indian- and Alaska Native-owned firms, percent, 2007 Asian-owned firms, percent, 2007 Native Hawaiian and Other Pacific Islander-owned firms, percent, 2007 Hispanic-owned firms, percent, 2007 Women-owned firms, percent, 2007 Manufacturers shipments, 2007 ($1000) Merchant wholesaler sales, 2007 ($1000) Retail sales, 2007 ($1000) Retail sales per capita, 2007 Accommodation and food services sales, 2007 ($1000) Building permits, 2010 Federal spending, 2009 geography QuickFacts Land area in square miles, 2010 Persons per square mile, 2010 FIPS Code Metropolitan or Micropolitan Statistical Area

borough

Alaska

NA 13,477 -4.2% 14,070 6.7% 23.9% 10.1% 48.7% 68.1% 0.6% 14.2% 7.0% 0.2% 9.3% 4.0% 66.2% 77.1% 7.2% 11.1% 92.5% 24.2% 1,348 14.2 6,166 59.1% 36.7% $242,500 5,629 2.36 $29,520 $61,695 8.3%

722,718 710,231 13.3% 626,932 7.6% 26.4% 7.7% 48.0% 66.7% 3.3% 14.8% 5.4% 1.0% 7.3% 5.5% 64.1% 78.6% 7.2% 16.5% 90.7% 27.0% 71,798 18.1 306,967 64.7% 24.6% $229,100 248,248 2.68 $30,726 $66,521 9.5%

borough

Alaska

568 4,686 -7.9% 1,247 1,472 F 2.4% 3.0% F F 16.4% D D 268,880 $20,488 45,557 17 809,321

19,901 252,882 23.4% 51,137 68,728 1.5% 10.0% 3.1% 0.3% S 25.9% 8,204,030 4,563,605 9,303,387 $13,635 1,851,293 904 11,922,341

borough

Alaska

4,858.41 570,640.95 2.8 1.2 130 02 Ketchikan, AK Micro Area

(a) Includes persons reporting only one race. (b) Hispanics may be of any race, so also are included in applicable race categories. FN: Footnote on this item for this area in place of data NA: Not available D: Suppressed to avoid disclosure of confidential information X: Not applicable S: Suppressed; does not meet publication standards Z: Value greater than zero but less than half unit of measure shown F: Fewer than 100 firms

Source: US Census Bureau

Specifically, the expansion project will create larger surgical rooms that allow for new equipment and technology. The current space doesn’t have floor-to-ceiling height to accommodate new technology. This will enable the hospital to reduce surgery scheduling wait time by adding three operating suites and a minor procedure room to accommodate a range of procedures, staff and equipment. Now it only has one surgical room at standard size dimensions. The hospital expansion is being driven by the need to upgrade facilities and infrastructure to deliver care and services in today’s medical world, according to Pedersen. Health care reform requires providers to change how they deliver care for their patients. She said: “We are charged with delivering care to a wider audience, more efficiently and effectively while maintaining the same level of safety and quality. With this investment, the city of Ketchikan and PeaceHealth Medical Center will continue to meet the needs of the region for the next 20 to 30 years.” Pedersen feels that the successful completion of the expansion project is crucial to the stability of the region’s health industry and economic future. PeaceHealth Ketchikan Medical Center is the largest private employer in the region, with 450 caregivers, a payroll of $28 million and an operating budget of $63 million annually. The center has been ranked by Health Strong Index as one of the top 100 U.S. “critical access” hospitals. Ketchikan International Airport is an equally critical piece of Ketchikan’s infrastructure. Its facilities include a ferry system operated and maintained by the Transportation Services Department of the Ketchikan Gateway Borough. The Airport Ferry System transports passengers and freight between the airport—which is located on Gravina Island—and Ketchikan, which is located on the other side of the Tongass Narrows, on Revillagigedo Island. Carriers serving the airport include Alaska Airlines, Aero Services, Island Air, Pacific Airways and ProMech Air. q

www.akbizmag.com • Alaska Business Monthly • May 2012

a healthcare “ Managing enterprise as diverse as ours in bush Alaska can be quite a challenge. Thanks to our team at Parker, Smith & Feek who provide exceptional expertise supportive of our unique business model.

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Parker, Smith & Feek combines a collaborative team approach to client service with 75 years of experience to create lasting value for businesses like Yukon-Kuskokwim Health Corporation. That’s why over 96% of our clients retain our firm year after year.

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S U R E T Y

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•

E M P L O Y E E

B E N E F I T S

TOURISM

1 Million Cruise Visitors

Will this be the season?

BY TRACY KALYTIAK

Norwegian Cruise Line’s Norwegian Star near Dawes Glacier in Endicott Arm, Tracy Arm of Fords Terror Wilderness, Southeast Alaska.

id and Rosie Wilson love to cruise and have visited ports on just about every continent. They frequently fly to Alaska because their daughter lives there, but decided they wanted to explore the Alaska that cruise visitors see. “I wanted to see for myself the beauty (in Southeast) I’ve heard so many people rave about,” says Wilson, 72, of Little Rock, Ark. “We wanted to possibly spot some of the wildlife, a bear or moose, get king crab legs from their source. We enjoy the wonderful summer climate— it’s an escape from the Lower 48—getting away from that heat is like the cherry on top of a sundae.” The mammoth (and not-so-mammoth) cruise ships that ply Alaska waters help hundreds of thousands of people like the Wilsons find their bliss. Tax relief and a reviving economy are enabling cruise lines that operate or want to operate here to ramp up for what they expect will be a burgeoning season.

Bruce Bustamante, vice president of community and public affairs for Princess Cruises, says that this year, the Star Princess is a new ship that will be added to the Alaska fleet. “With that deployment, we will move the Sapphire Princess to a Gulf crossing,” Bustamante says. “The last two years, the Sapphire served the Southeast Alaska round-trip market.” The Princess Coral, Island, Diamond, Sapphire, Golden, Sea and Star Princess ships serve the Alaska market. The passenger capacity on the Coral and Island Princess ships is 1,700 passengers. The Diamond and Sapphire ships have a capacity of 2,670 passengers; the Golden and Star have capacity for 2,590 passengers and the Sea Princess can hold 1,990 passengers. Princess ships, from early May until mid September, will call on Seattle; Vancouver, British Columbia, and Victoria, British Columbia; Ketchikan, Juneau, Skagway and Whittier. Bustamante says most of Princess’s

tours and cruise itineraries will remain the same as last year’s. “However, with the addition of a fourth Gulf crossing ship, our inventory of berths will increase by nearly 50,000 for the summer season,” he says.

ecOnOmic impacT

Cruise lines benefit Alaska and its residents in countless ways. Princess delivers hundreds of thousands of visitors to Alaska and those visitors travel through Southeast to the Railbelt and as far north as Fairbanks, Bustamante says. “The economic impact reaches as many as 1,000 Alaska vendors, which contributes to the overall economic health and employment in the state,” he says. “Holland America Princess Alaska-Yukon employs approximately 3,300 people during the summer season. Princess owns and operates five lodges in Alaska as well as motor coach and rail operations. All these components positively add to the economic

www.akbizmag.com • Alaska Business Monthly • May 2012

impacts of the nearly 1 million visitors the cruise industry brings to our state.” Bustamante says the business environment in Alaska was positively impacted by the efforts of Governor Sean Parnell and the Alaska Legislature to reduce the cruise tax from $46 to $34.50 per person and allow for deeper offsets for ships stopping in Juneau or Ketchikan. “The state is reaping the benefit now that Princess is bringing a ship back to Alaska this summer, and other cruise lines have announced additional ships being deployed for Alaska in 2013,” Bustamante says. “The reduction of the cruise tax contributed to those developments.” Princess is continuing its efforts to lessen ships’ impact on the environment. It has implemented state-ofthe-art wastewater treatment systems for processing wastewater onboard its ships. “These systems have proven to be the best wastewater treatment systems used in Alaska, whether they be landbased or marine applications,” Bustamante says. “Princess also purchases electricity while in port in Seattle, Vancouver and Juneau so that we do not burn fuel to operate our power systems. This reduces air emissions from the ship while at the dock.”

OTher cruise lines

It takes several cruise lines many sailings from May to September to show a piece of Alaska to so many visitors—883,000 in 2011, according to the “Alaska Visitor Statistics Program (AVSP) Summer 2011” report compiled by the McDowell Group for the state. Among the mix this year: Carnival Cruise Lines, Celebrity Cruises, Disney Cruise Lines, Norwegian Cruise Line, Princess Cruises, Royal Caribbean International, Regent Seven Seas Cruises. Communities along the ports of call are geared up for what appears to be another banner year for the cruise industry.

Your passport to a world of business opportunities Located in the heart of Downtown Anchorage, for two and a half decades World Trade Center Alaska has opened doors overseas for companies participating in Alaska’s international trade economy. 2012 is a very special year for us: we celebrate 25 years of serving our members and community partners with information and services to help them grow through international trade and commerce. – In 2011, Alaska’s overseas exports reached $5.2 billion - an all-time record. – Exports bring thousands of direct or indirect jobs to Alaska. – Alaska ranks in the top ten in the nation by value of exports on a per capita basis.

Carnival Cruise Lines will ➤ operate a schedule of seven-day Alaska cruises round-trip from Seattle this year. Seventeen week-long Alaska cruises will operate from the Port of Seattle from May 8 to Sept. 4, departing

To find out more, please contact us at (907) 278-7233 or visit www.wtcak.org

www.akbizmag.com • Alaska Business Monthly • May 2012

View of the Diamond Princess cruise ship docked in the city and harbor of Whittier.

Tuesdays aboard the 2,124-passenger Carnival Spirit. The 2013 program will be operated by the 2,124-passenger Carnival Miracle. Ports of call include Skagway, Juneau and Ketchikan, as well as Victoria and Tracy Arm. Carnival Spirit will also operate a seven-day Inside Passage voyage from Vancouver to Seattle, departing May 1, and a seven-day Glacier Bay cruise from Seattle to Vancouver Sept. 11. Both voyages include a cruise through the Inside Passage along with stops in Juneau, Skagway, Ketchikan and Glacier Bay.

➤

Celebrity Cruises brings several ships to Alaska. This year, Celebrity Infinity (1,950 guests), Celebrity Century (1,750 guests), and Celebrity Millennium (1,950 guests) are sailing a variety of northbound, southbound and round-trip cruises from May to September. Celebrity’s Alaska cruises range from seven to 11 days, and many include a few days of land excursions. In the summer of 2013, Celebrity Cruises will bring its 2,850-guest flagship of the Solstice Class fleet, Celebrity Solstice, to Alaska.

➤

Crystal Cruises has no Alaska season scheduled this year, though in early April one of its cruises stopped in Dutch Harbor, Kodiak, Seward and Ketchikan on its way to California from Russia.

Holland America cruise ship Amsterdam arrives in Cook Inlet with downtown Anchorage in the background.

The Disney Wonder departs ➤ Norwegian Cruise Line’s ➤ Seattle on Mondays beginning May Norwegian Jewel is making its debut 28 through August 27, for seven-night Alaskan cruises with ports of call in Tracy Arm, Skagway, Juneau, Ketchikan and Victoria. There is also a May 21 departure from Vancouver, that returns to Seattle, and a Sept. 3 Seattle departure that returns to Vancouver—both with ports of call in Tracy Arm, Skagway, Juneau and Ketchikan. The Disney Wonder was designed for families and has 11 decks and accommodates 2,700 passengers along with 950 cast and crew members.

in Alaska on May 19, making it the second of the line’s Jewel-class ships sailing in the state—a first for the company. Norwegian Pearl will also be cruising in Alaska. Norwegian Jewel’s weekly Sawyer Glacier cruises will depart Saturdays from May 26 to Sept. 8, calling in Ketchikan, Juneau and Skagway, as well as Victoria. Norwegian Jewel will also sail a seven-day Sawyer Glacier cruise from Vancouver to Seattle on May 19 and a seven-day Sawyer Glacier from Seattle to Vancouver on Sept. 15.

www.akbizmag.com • Alaska Business Monthly • May 2012

The 2,394-passenger Norwegian Pearl will return to Seattle, sailing weekly seven-day Glacier Bay cruises departing Sundays from May 13 to Sept. 9, with ports of call including Juneau, Skagway and Ketchikan and Victoria. Norwegian Pearl will also sail a seven-day Glacier Bay cruise from Vancouver to Seattle on May 6 and a Seattle to Vancouver cruise on Sept. 16.

➤

Oceania Cruises will not be sailing in Alaska this year, but will be returning to the state in May 2013, according to spokeswoman Melissa Rubin. Seattle will be the point of departure for many northern voyages on the cruise line.

coastal communities, but the Railbelt as well,” he says.

➤

Mark Conroy, president of Regent Seven Seas Cruises, says the company’s 490-passenger Seven Seas Navigator was scheduled to sail May 1 on a cruise from San Francisco to Vancouver, and on to Ketchikan, Juneau, Skagway, Hubbard Glacier, Sitka, Victoria and Vancouver, before drydocking for 17 days and then cruising through the middle of August between Seward and Vancouver.

The company, which has been cruising in Alaska since 2000, deals with very affluent travelers who were able to continue booking Regent Seven Seas’ all-inclusive cruises, despite the throes of the recent recession. “Our customer’s different than the average (cruise) customer,” Conroy says. “They measure their affluence by their stock portfolio, they’ve continued to travel. Their average age is 58 years old; that runs in the low 50s in Alaska. Alaska is very, very popular.” q

Royal Caribbean Interna➤ tional has been sailing in Alaska

for 23 years. Its Radiance of the Seas will sail seven-night north- and southbound itineraries between Vancouver and Seward, while Rhapsody of the Seas will embark on a series of sevennight cruises, round trip from Seattle. “Experiencing the pristine beauty of the 49th State is high on many vacationers’ bucket lists and Royal Caribbean’s incredible portfolio of Alaska cruises and cruise/tour land packages will provide guests with adventures of a lifetime that will fulfill any dream,” says Betsy O’Rourke, the company’s senior vice president of marketing. Bob Stone, senior vice president of tour operations for Royal Caribbean Tours, says Royal Caribbean International has no major deployment changes based on tax relief measures passed in Alaska two years ago. “But clearly even the small changes we have made are due to a much more favorable outlook for the cruise business based on the state’s more pro-business stance,” Stone says. “The tax relief combined with a positive relationship with the governor and the administration has also helped.” Stone says Royal Caribbean is a major economic engine for the state, via taxes, private businesses and job creation. “We are (also) a very good corporate partner that participates in many charities and fundraisers for many communities—in not only just the www.akbizmag.com • Alaska Business Monthly • May 2012

TOURISM

Alaska Yukon Adventures

The unfolding of one man’s plan to share the life of his dreams

BY KRISTIN CARTER

Bassich homestead and guest cabin at the Alaska Extreme Adventure Camp.

ndy Bassich moved from Maryland to Alaska in the 1980s to follow his dream of living in the Alaska bush. Having spent years as a trapper, musher and a riverboat captain, Bassich acquired the skills needed to share his dream through Alaska Yukon Adventures, a unique tour business which combines the adventures of dog mushing with the practice of subsistence living in remote Calico Bluff near Eagle. From the time he was very young, Bassich had a persistent longing to live and work in the wilds of Alaska. In 1984 he arrived in Eagle, and traded a truckload of wood for his first dog, Muzzle. That year he also met a local trapper who mentored him in the skills of trapping and mushing. With this newfound knowledge, Bassich lived the next four years as a trapper, staying in a small cabin with his team of dogs. During this time, Bassich acquired a 24-foot jet boat with the hopes of starting a tour and transportation business on the Yukon. However, he was soon contacted by Holland America Westours Inc., and was asked if he could provide a service as pilot boat for the Yukon Queen river cruise. After two weeks of operating the pilot boat, he was offered a position as a mate onboard the Yukon Queen, and later

Andy and Kate Bassich with sled dogs Tia (left) and Iceberg (right). Calico Bluff is in the background.

obtained his Coast Guard Merchant Marine Captain License. After becoming captain of the 100-ton Yukon Queen II, he met Kate, a tourist from Canada, who would later become his wife and eventual business partner. Still desirous of living the subsistence lifestyle for which he had yearned, in 1999 Bassich became a relief captain in order to free up enough time to start building his homestead with his wife in Calico Bluff. The homestead was built by hand while Bassich lived in a tent. He built a small sawmill, cut his own lumber and logs, cleared the land of black spruce trees and completed his home in only one year. Whilst working onboard the Yukon Queen, Bassich met many people who

were interested in his way of life, especially dog mushing. Thus, he began giving winter sled dog tours, taking only one person at a time. While on the tour, the client would learn to take care of their team, drive their own team, and help with camp chores. Bassich now owns 24 sled dogs and can take two or more guests out at a time during his winter tours. He suggests his clients come for 10 days to two weeks in order to get the most out of their investment. “Most people come in living a very busy lifestyle and the pace of life is very fast. It takes a few days just to adapt to the slower pace of living up here,” Bassich says. Bassich’s clients fly into Eagle, where he meets them with the dog team. After a brief lesson, they head out down the river to his home in Calico Bluff. Once there, the days are spent learning about the dogs, how to survive an Alaska winter, and all other aspects of living in a remote area of the Interior. Bassich recommends staying long enough to enjoy a 200-mile to 300-mile dog sled trip in order to give the client a true sense of the symbiotic relationship one can establish with the dogs. “They depend on you for feed, care and trust, in return you can depend on them for companionship, love and reliability,” Bassich says.

www.akbizmag.com • Alaska Business Monthly • May 2012

A summer shot of the Bassich’s garden greenhouse.

On a typical winter dog sled tour, clients learn about dog training, winter camping, safe travel in remote areas, skiing, shelter building, proper dress for the cold, making a fire in the snow, making moose sausage and jerky, running a wood stove, and using an ice auger to get water and fish. In addition to the popular dog sled tours, the Bassichs also offer Aurora-viewing tours, weekend adventures and dog-supported ski trips for families and small groups. The Bassichs’ Yukon Adventures offer summer tours as well, which include canoeing, boating on the Yukon river, running a fish wheel to catch salmon, cleaning and processing fish, gardening, vegetable dehydration, hiking trips, archaeological digs, craft making, logging, milling, log cabin building, aurora viewing, and relaxing by the river. During a typical summer tour, the client learns how to subsist in the subarctic, gathering much of their food from the Bassichs’ personal garden, which thrives with the aid of the long hours of sunlight and warm summer temperatures. While the land around their homestead provides fish, game, waterfowl and berries they can grow everything else they need in their gardens. As it states on their website (alaskayukonadventure.com), “This is not a sit back and watch vacation. It is totally hands-on, from daily chores to physically challenging Arctic living.” The Bassichs offer custom designed tours for their clients, depending on interests and desired level of challenge and adventure. As a result, Alaska Yukon Adventures is not a high volume business, but is instead an intimate, client-based business. Most of their advertising is done by word of mouth, which proves effective to bring guests from all cross-sections of society.

Andy Bassich cutting chum salmon for the dogs. They cut and hang 500 fish a day to dry for dog food chum. Each dog gets half a fish per day and commercial dog food plus fat in the winter.

“Subsistence living is as much a philosophy of life as it is a practiced way of life,” Bassich says. “The key foundation to it is the long-term reliability to access, harvest and gather the resources for yourself. It requires selfdependency, careful planning, hard work and desire. There is nothing easy about it. The reward is tremendous inner peace and self worth, and a connection with the world that is hard to find in any other lifestyle. It cannot be explained without experiencing it.” Bassich’s business is propelled by his love of subsistence living, and his drive to share this lifestyle with all who are interested: “Life is good in the bush. You have to give up certain things in life, but the rewards of self-sufficiency and quality of life outweigh the absence of other things in life.” q

www.akbizmag.com • Alaska Business Monthly • May 2012

HR Matters

By Dr. Lynne Curry

How do you like me now? Forming lasting partnerships

y the time they reach me or an attorney, it’s often too late. The two partners start out as friends, one saying to the other, “With your marketing and financial expertise and my technical ability, we could have a successful business.” “You’re right!” says the other. “I can market what you produce and handle the finances, freeing your time for doing what you do best. Let’s go for it!” Excited, they form a partnership, planning to work together and retire rich in a dozen years. Because they trust each other, feel they’ll each work hard, and believe their talents complement each other, they split the business ownership 50/50. They vow to make all major decisions by mutual consent. Two years later, they despise each other. The trouble starts when partner one starts to feel he’s “carrying” partner two and argues that he should get a higher share of profits as he works more hours. Partner two feels he works hard enough and places a higher value on each of his work hours. Partner one reminds partner two there would be no business without his technical savvy. Partner two pushes back saying that without marketing there wouldn’t be customers. By year t wo, the par tnership “made in heaven” officially descends to hell. The partners show up at my doorstep for mediation. Both have attorneys. Each plans to sue if mediation fails. While they fight, their business disintegrates.

parTnership ‘prenup’

If you contemplate forming a partnership and want it to last, prevent the fate that awaits eight out of 10 partnerships. Anticipate conflicts before they arise

and while you still trust each other. Decide how you’ll handle the financial and legal issues should one partner choose to leave the business, die, or become incapacitated. Agree on the duties and division of profits for each partner; how you’ll handle personnel and financial management, marketing and operational areas, and what you expect of each partner in terms of a “normal” work week, vacations and time off. Sometimes, one or both partners balk at discussing these topics, feeling they can work things out as problems arise. Just as many newly engaged couples shun prenuptial agreements because it implies lack of commitment, some partners feel writing a future buy-sell agreement unnecessarily sows seeds of discord. I disagree. Effective partnerships begin when prospective partners anticipate and address how they’ll handle the bad as well as the good. Partners who can’t agree on how they’ll handle conflicts before disagreements arise generally can’t deal with unexpected and nasty surprises that make them feel like going for each other’s throats.

parTner WiTh a plan

Partnering without planning exposes both parties to major risk. For example, if you and your partner sign a five-year lease for expensive office space, what happens if your partner skips town? Are you aware that without a specific agreement, you may wind up in business with your partner’s spouse if your partner dies? Or, worse, what happens if relations sour yet your partner refuses to leave? Consider the case of Londin versus Carro Spanbock, in which one partner broke off from the firm yet continued

to stay in the same office as he had as a partner. When the remaining partners tried to evict him, they discovered that the lease was an asset of all partners. As a result, the defendant was a “tenant in partnership” and could remain in the office as long as he contributed his share of actual costs. Contemplating a partnership? If you want to avoid regrets and like your new partner as well during year three as you did during year one, line things q out clearly at the start.

About the Author Local management/employee trainer and consultant and the author of Managing Equally and Legally, Won By One and Solutions, Dr. Lynne Curry regularly provides managerial, leadership and board training seminars as well as public seminars. Curry’s company, The Growth Company Inc. offers a free monthly “Breaking News” HR/management newsletter, and two- and three-hour seminars monthly. For more information on The Growth Company Inc.’s training and HR OnCall services to companies needing help with recruiting, team-building, strategic planning, management or employee training, mediation or HR trouble-shooting, please visit www. thegrowthcompany.com.

www.akbizmag.com • Alaska Business Monthly • May 2012

special section SMALL BUSINESS

SBA Alaska Small Business Person of the Year BY K.T. MCKEE

t first glance, Blaines Art store owner Rene Haag seems like your typical successful entrepreneur—hard working, dedicated, creative, and forever on top of sales, supplies and employees. It doesn’t take long, however, to realize Haag, of Anchorage, is anything but your standardissue business profile. From having the wherewithal to save the state’s only professionalgrade art shop from closing and then persevering through spirit-busting obstacles to erect a new Blaines building in Spenard, to continually giving back to the art community, as well as local charities and worthy causes as far as Katmandu, it’s easy to see why Haag was the Small Business Administration’s clear choice as Alaska’s Small Business Person of the Year for 2012. “She just stood out among this year’s nominees in all categories,” SBA’s Senior Northern Area Manager Scott Swingle said from Fairbanks in March. “What she’s done is pretty huge. She never gave up when the going got rough

Rene Haag helps with frame and mat board selections at Blaines Art.

with the new property, and she even took on additional employees while cutting her own pay. By saving Blaines and expanding it, she’s improving so many other businesses, as well as the lives of those in the art community and beyond. It’s a win-win for everyone.”

her middle name

‘service’

To those who know and love the photographer-turned-businesswoman, the prestigious award is a no-brainer and long overdue. No matter who you talk to about the Montana-raised farm girl, it’s difficult for them to maintain their composure in the process. “Rene has such a big heart. She supports everybody,” fellow photographer and long-time friend Jay Jackson said recently as she fought back tears. “I think her middle name is ‘Service.’ She does so much for the art community and local charities, and she didn’t think twice about becoming involved in the nonprofit organization I founded called ‘Helping Hand for Nepal,’ which

provides low-cost eye surgeries and other medical procedures for people who otherwise would remain blind or die from other medical issues. She’s just amazing.” Not only did Haag rally 31 Alaska artists to each contribute a piece of art through her “A Painting a Day” program for Nepal at her new Spenard store in April, but she hopes to raise at least $5,000 through the local Rotary Club and one in Kathmandu, Nepal, to begin providing micro loans to Nepalese women who wish to start their own cottage industries there. And that’s just the tip of the iceberg when it comes to Haag’s many contributions to her fellow man. It’s just how she rolls. “The reason I give so much, I guess, is because we’re put on this planet to do more than just live for ourselves,” Haag said in March after learning she had won the SBA award. “I believe in giving back and giving back to the community that supports this business.

www.akbizmag.com • Alaska Business Monthly • May 2012

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I was actually raised that way. My father was very charitable as a farmer in Montana, always hiring people who needed a job. He always gave a hand up to people and I like to, too. I can’t think of any other way to live.”

an alaska insTiTuTiOn

Many in the art community know that if Haag hadn’t bought Blaines Art from the John Weeks family in 1998 after managing the store for 12 years, the business that had been on the corner of Northern Lights Boulevard and Spenard since 1953 most likely would have closed its doors forever. That was something Haag just couldn’t fathom. “I couldn’t see this town without an art store,” said Haag, who already had made a name for herself as a respected photographer with images of Anchorage’s homeless men and a traveling show of portraits she’d captured while driving 10,000 miles across rural Russia. “Alaska has such an incredible art community and there really wasn’t anywhere else they could get highquality supplies here. Plus, I wanted to preserve and nurture a supportive atmosphere where artists could gather and share their love of their craft and of Alaska.” With help from an SBA loan through Northrim Bank and the Weeks family, Haag purchased the business that had become an iconic landmark in midtown, complete with a colorful mural on the north side of the building that now has at least 17 layers of paint from various community projects throughout the years. As much as Haag loved that building, however, increasing plumbing and electrical problems, as well as loss of easy access if Anchorage installed a median in front of it drove her to seek a better location in which to expand supplies and classes and provide a gathering place with a coffee bar. “I had never dreamed of building a new building,” she said in her Blaines office, surrounded by beloved art she either purchased or received as gifts. “I thought I would just renovate another building nearby. But I couldn’t find another suitable place and then this property became available, and

Rene Haag stocking brushes amongst the art supplies available at Blaines Art.

it seemed perfect because it was just around the corner from the original store. Little did I know I’d be facing a very tough, three-year battle to get this place up and running.” As is typical of a woman who loves a good challenge and has been an overachiever since her young days as Prom Queen, actress and star athlete in Geraldine, Mont., Haag hung in there when many would have thrown in the towel.

endurinG cOmmiTTmenT

As it turned out, the property sandwiched between Benson and Northern Lights just east of Spenard had served as a truck fueling station 40-some years ago and had quite a bit of contamination and buried fuel tanks to contend with. More than a thousand tons of contaminated soil had to be dug up and burned before Haag could get the okay to build on the property, she said. Once that was resolved, Haag was faced with trying to convince the Municipality of Anchorage to allow the new 7,500-square-foot building to sit

right up against the property line— without the additional six-foot easement required by the city. This was critical because water and sewer lines already were in place and the building’s footprint was pretty much already cemented in. “By then, way too much money had been spent,” Haag said. “If we had to change everything at that point, the new building never would have happened. So I talked to a few friends, and they talked to a few friends, and the community came out in droves to support me in my fight for the variance. It was very heartfelt that they came to bat for me like that. I am so blessed.” In fact, Haag’s dream for Blaines was shared by so many in Alaska, 46 artists, friends and business associates testified on her behalf to the municipal zoning board in October and November of 2009, the win was inevitable in the end. One of those local artists, Don Kolstad, has been a Blaines Art Supply patron since 1982. In his testimony of Oct. 11, 2009, he pleaded with city officials to do the right thing.

www.akbizmag.com • Alaska Business Monthly • May 2012

a GaTherinG place

FOr

arTisTs

Reached after teaching an art class in the new Blaines recently, Kolstad was thrilled not only for Haag’s success in finally getting the new building up and open in August of 2010, but for her continued commitment to the local art community and her recent honor. “There’s no better person deserving of the award after all she’s been through to improve the business in the community,” Kolstad said. “If she hadn’t saved Blaines from closure more than a decade ago, it would have been an incredible loss for Alaska. I get everything there. With the addition of the coffee shop, it’s also becoming a warm place for artists to come and hang out and try different things.” Haag estimates that 50 percent of the products she sells in her store cannot be found anywhere else in Alaska, and much of its professional-grade paints, brushes and canvases are essential to local artists like Kolstad, Karen Whitworth, Andy Sonneborn, Betty Atkinson, Kurt Jacobson and many others whose works decorate the store’s walls. Haag’s endeavors over the last several years impressed Evergreen Business Capitol Vice President and Senior Loan Officer Barbara Gill so much, she went through the arduous process of nominating Haag for the SBA honor after helping her with the 504 SBA loan for the new building. “Success, to Rene, is not only measured by the bottom line, it is about being a contributor to the success of others,” Gill wrote in her Small Business Person of the Year nomination letter last October. “It is about being part of the ‘before’ and ‘after’ and about always reaching for the next vision.” To Haag’s husband, Dave, the award was a surprise only because he hadn’t realized she’d even been nominated for it. “If you ask me, she deserved it a long time ago because she works that hard,” said Dave, a heavy equipment operator for Alaska Railroad Corp. who also dabbles in his own art. “Rene always instinctively does the right thing without even thinking about it. Everything she does comes from her heart. That’s why people are drawn to her, and it’s one of the reasons why I love her.” q www.akbizmag.com • Alaska Business Monthly • May 2012

special section SMALL BUSINESS

YWCA Alaska Women’s Business Center Leveling the playing field for women entrepreneurs BY CAREN M. AILLEO

hen most people in the Un it ed St at es t h i n k of small business in Alaska, images come to mind of crab fishermen battling the elements in the Bering Sea for the prized king crab, truck drivers maneuvering big rigs up the treacherous ice road through the frozen tundra to Deadhorse, or the local taxidermist putting the finishing touches to a hunter’s prized big game mount. Seldom do we think of the hard working, average small business owner who is the driving force for the Alaska economy, and even more seldom do we think of that business owner as a woman. There are now approximately 19,000 women owned businesses in Alaska. Many are owner-operated, while others have served to create jobs for Alaskans in many different fields. YWCA Alaska houses the only Women’s Business Center in the state. Ask any business owner today who the primary consumers in the United States are, and the answer will be: “Women.” Women represent an economic powerhouse, making more than 85 percent of consumer purchases and influencing 95 percent of total goods and services. Women business owners understand the needs of their customers because they are consumers themselves. Studies have shown that women have strong communication and social skills, attributes of a successful entrepreneur. They are more likely to work together and view their employees as their team. Over the past five years, women entrepreneurs have outnumbered men in this country in the creation of small businesses. In Alaska, although women-owned businesses represent about a quarter of all businesses in the

state, many more businesses are owned jointly by men and women. Who are the women small business owners in Alaska? They are, in many instances, the sole supports of their families. They come in with an idea and a dream. They are determined to start a business and become a success. Through education, counseling, mentoring and hard work these women realize their goals of small business ownership. Many have limited funding and start off in a small way, slowly growing their businesses as they become more successful. Women do more with less—that is the rule for today’s economy. Attracting far less in the way of institutional and venture funding, women entrepreneurs are more focused on profit than revenue, and “a little goes a long way” in terms of their businesses. Are women encouraged to start their own businesses in this state? Yes, they are. Encouraging and supporting women in business has been the role of the YWCA Alaska since 1995. Or ig ina lly k now n as the Women$FUND, the program was created as a means of lending money to women who were looking to start their own businesses but were considered “unbankable” by traditional lending institutions. The program later became known as Women$Finances and, in 1997, received SBA funding to become the only Women’s Business Center in Alaska, and remains so to this day. Women’s Business Centers represent a national network of business education centers designed to help women start and grow small businesses. They operate with the mission to “level the playing field” for women entrepreneurs, who still face unique obstacles in the world of business. Through the management and technical assistance

provided, entrepreneurs (especially women who are economically or socially disadvantaged) are offered training and counseling on a variety of topics to help them start and grow their businesses. The Women’s Business Center is under the umbrella of the YWCA Alaska’s Women’s Economic Empowerment Center. Over the past 17 years, thousands of women (and men) have come through the doors in hopes of realizing their dreams of entrepreneurship. Who are the women entrepreneurs of Alaska? They are major contributors to the Alaska economy. They are the women who give back to their communities through philanthropic giving and community involvement. They are the mentors and role models for girls and young women, who someday will be the entrepreneurs and leaders in Alaska. q

About the Author Caren M. Ailleo is the Director of the YWCA Alaska Women’s Economic Empowerment Center in Anchorage. Ms. Ailleo has been with the YWCA as a director since 2008. Prior to moving to Alaska in 1998, she lived in Greenwich, Conn., and worked in business in New York City. Visit ywcaak.org to learn more about women’s business solutions.

www.akbizmag.com • Alaska Business Monthly • May 2012

special section SMALL BUSINESS

Key Strategies for Entrepreneurs Winning clients, customers and awards COMMENTARY BY SAM DICKEY

Any opinions expressed herein are the author’s own.

love my work. Every day I meet smart, caring, innovative and hardworking people. Most of these people are small business owners or are in the process of starting their own small business. For the past several years I have also had the honor and privilege to be a part of the Small Business Administrations awards program. The SBA’s criteria for every category of its awards are among the most stringent and encompassing in the nation. There are many other entities that give small businesses awards, but only our winners compete at three levels, with multiple criteria and are honored by national dignitaries—sometimes, even the President of the United States. Alaskans have proven time and again to have a solid work ethic and a pioneering heritage that necessitated invention and trade to survive. We are also share a culture of caring, always looking out for friends, neighbors and communities.

masTerinG success

Alaskan entrepreneurs have also mastered five important keys to being successful. ■ They engage in and listen to their clients. Proactively engaging with your clients results in their always listening to the buy and change signals. Many unhappy clients are afraid to speak out and walk away at the first given opportunity, so the savvy entrepreneurs ensure their clients feel valued by keeping in touch and thanking them. ■ They know the value of coaching. Coaching of both staff and customers is the key to ensuring that high levels of service are maintained. One of the most challenging scenarios is when customers’ expectations are not managed correctly. Coaching the customer’s mindset and attitude is key to maintaining a long healthy business relationship. ■ They are innovative. They fine-tune their products and services by constantly reviewing, updating and adapting as needed to benefit their customers. ■ They are prepared to address the needs of their customers. They ensure adequate staffing to provide for customers desired level of service. Few things are worse than being told “Your call is very important too us,” as a lead in to a 46-minute hold time. ■ They are involved in their communities. Being truly deserving of an award means you have a service and/ or product that works and makes a difference to the real judges, your customers. Equally importantly, they care, not just about their sales, customers and employees, but

also for their communities, little league teams, food banks and much more.

nOminaTiOn prOTOcOl

Many small business owners have compelling success stories, working hard and smart, even in adversity. So what’s the bottom line? It is up to us all to find these outstanding businesses, bring to their attention your desire to pay them tribute. Finding the best candidates for the SBA’s awards not only honors them as outstanding small businesses and small business champions, but as well, it honors the people who nominate and recognize their efforts. Though each category has its own criteria many of them are common across the board. A business should be financially sound, and have shown growth both in sales/unit volume and in number of employees. A firm’s longevity also figures into the formula. So much for the easy ones. The businesses that really stand out not only meet those criteria, they stand out because of innovations to their products and services. Denali Visions 3000 in Healy is a good example. Three partners took over a small business that was, let’s say, “rustic,” added a full-service menu and bar and a juggernaut was born. Denali Visions 3000 now operates several ventures providing goods and services in and around Healy. More than 100 jobs have been created and they are just getting started. Community contributions are another area where Alaska’s small businesses shine. Whether it be a community mural as sponsored by Blaine’s, a barbeque for homeless veterans, a 5k run for charity, or a golf tournament, small business owners are dedicated to “giving back”. These entrepreneurs are also members of rotary clubs, community councils, advisory boards and a myriad of other activities that make our towns our state and our world better place to live. There are also awards in several categories to recognize not only those in small business but those who champion them as well. These champions can be people in the financial industry, professional journalists, or supporters of women in business. So how would you nominate someone for recognition? Start by contacting your local SBA office and getting the nomination criteria. Though the official nomination period is in October and November the criteria from past awards is always available. The secret to a winning nomination often comes down to the write-up and making sure the judges are

www.akbizmag.com • Alaska Business Monthly • May 2012

aware of all the important facts. Let me share with you ten tips that will help you build a winning nomination package. ■ Use the rating criteria as an outline for organizing your nomination and use headings to transition from one rating criteria to the next. Doing so enables judges, who have limited time to review each nomination, to quickly evaluate the nomination. It will also reduce the chance critical information will be overlooked. Be aware, judges may not go searching for information that is out of order. ■ Speak directly to each rating criteria. Failing to respond to any one of the rating criteria could prevent an otherwise outstanding nominee from being selected. And have someone else proofread your nomination for grammatical errors and misspelled words detract from the quality of the nomination. ■ Keep your narrative to a minimum. Critical facts about your nominee’s successes can easily get lost in unnecessary verbiage. However, include all information necessary to highlight the nominee’s accomplishments in simple language and explain technical terms in a manner the non-expert will understand. ■ Include all information required for the award category. Nominations may be disqualified if nominators fail to submit all information required for that particular award. When in doubt, contact your local district office for direction. ■ Include a high resolution, 300 dpi, color headshot and five or six candid action shots showing the nominee(s) with their employees, customers or engaged in work or community activities and /or digital 300 dpi photos of the same on CD. Xeroxed copies are not acceptable. ■ Content is king. Content is more important than a decorative presentation. Be aware that judges will only be reviewing black and white duplicate copies of the material you submit. ■ Fully disclose any and all SBA assistance a nominee has received, including SBA loans, procurement assistance, or assistance from SCORE, SBDC, Women’s Business Center, or direct counseling/assis-

tance from an SBA district office. ■ Businesses and individuals with compelling stories are often seen very favorably by judges; look for a factual, yet engaging angle to present your nominee. ■ Letters in support of nominations are an excellent way to highlight individual or business accomplishments, but seek letters from indiv iduals hav ing f irst-hand knowledge of these accomplishments and ask that the letters site specific examples of the nominee’s successes and contributions. ■ Use underlines to bring attention to important facts in your supporting documents such as letters of support and news clippings. Don’t use highlights; doing so may turn out to mask the words when duplicates are made. Preparing a high quality nomination package can be a time-consuming process. You can start now for next years awards. Perhaps next year one of your favorite local businesses will be taking the stage. They will have their extraordinary efforts and your nomination to thank for some undoubtedly welldeserved recognition. q

About the Author Sam J. Dickey is the deputy district director of the U.S. Small Business Administration Alaska District Office. He has held this position since March 2006, and is responsible for the delivery of all SBA programs and services. He has been employed by the U.S. Small Business Administration since 1988. A resident of Alaska since 1966, Dickey lives with his wife of 25 years and has three children; all residing in Anchorage.

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special section SMALL BUSINESS

Hiring Locally in Alaska Rules and regulations for resident hire BY RENEA I. SAADE AND ANNE MARIE TAVELLA

t is no secret that many companies exhale a loud sigh when they learn of the various local hiring requirements imposed or proposed by the State of Alaska, other local governmental agencies, law makers, community organizations and other interested parties. Many companies, particularly those that are not local themselves, cringe at the idea of having to reorganize or rebuild their existing work force or to add another component to their hiring process. The debate regarding local hiring is not new. Local hire, also known as “resident hire” and “Alaska hire,” has been a hot topic for public policy forums for decades. The issue has also been the subject of various legislation, affiliated with proposed tax credits, and the focus of certain legal challenges (primarily focused on whether hiring requirements are lawful under the equal protection clause of the state’s constitution). The various legal challenges have included a 1978 U.S. Supreme Court case (known as Hicklin v. Orbeck, 437 U.S. 518 (1978)) that ruled that Alaska’s law at the time requiring resident hiring in the private sector oil and gas industry was unlawful; a 1986 decision by the Alaska State Supreme Court (known as Robison v. Francis, 713 P.2d 259 (Alaska 1986)) that the resident preference for publicly funded projects was not legal as it was currently enacted; a 1989 Alaska Supreme Court decision (known as State of Alaska, et al. v. Enserch Alaska Construction, Inc., et al., 787 P.2d 624 (Alaska 1989)) that declared a hiring preference to residents of economically distressed zones for certain employment on public works projects unconstitutional; and

a 2003 Alaska Supreme Court ruling (known as Malabed v. North Slope Borough, 70 P.3d 416 (Alaska 2003)) that declared a North Slope Borough law requiring a Native Alaskan hiring preference for borough jobs (enacted to address the high unemployment rate of Inupiat Eskimo borough residents) unconstitutional. Although those involved in the debate vehemently disagree on what preferences, requirements or benefits should be adopted or encouraged, everyone agrees local hiring is a complex issue that will likely continue to be a source of contention for years to come. As of now, there are very narrow circumstances under which local hiring is required or where preferences are allowed.

lOcal hire laWs

In response to the 1978 and 1984 court decisions referenced above, the Alaska Legislature went back to the drawing board and in 1986 adopted a more comprehensive statute that complied with the equal protection constitutional parameters set by the U.S. and Alaska Supreme Courts. The law, known as Alaska Statute 36.10, et seq. provides that the “state will grant an employment preference to residents when the state is acting as a market participant.” As a result, since 1986, contractors working on state-funded projects must employ a certain percentage of Alaskan residents. The actual percentage requirement is re-evaluated every two years according to statutory criteria but has been as high as 90 percent. Contractors on these projects must also meet certain reporting and recordkeeping requirements or face substantial civil and criminal penalties and/or

a withholding of amounts due under the contract. Other local hire programs that have withstood the test of time and challenges are those followed by the National Park Service in Alaska (under the Alaska National Interest Lands Conservation Act of 1980 (“ANILCA”)) pursuant to which only persons who have either lived or worked in or near particular public lands may apply for certain job openings on park lands—including the Denali National Park and Preserve and similar programs followed by the U.S. Fish & Wildlife Service and Bureau of Land Management—that allow jobs to be held for local residents when they require some special knowledge of local areas. Certain agencies have also launched local hiring initiatives such as the Transportation Security Agency (the “TSA). Various boroughs have also explored using local hiring requirements, but with varying success: The North Slope Borough law is an example of an unsuccessful endeavor. Another local government, the City of Kotzebue, however, has adopted a statutory framework that has withstood challenge and remains good law. Under the Kotzebue Ordinance (found at Chapter 3.17.010, et al.), subject to few exceptions, all contractors working on city public works or improvement contracts must make a “meaningful, good-faith effort” with the assistance of the city manager or his designee, the State of Alaska, Department of Labor, the Kotzebue Employment Center or other appropriate agency to hire “qualified individuals who are residents of the City of Kotzebue in sufficient numbers so

www.akbizmag.com • Alaska Business Monthly • May 2012

that no less than 50 percent of the contractor’s total construction work force” are Kotzebue residents. Needless to say, that is a substantial local hire requirement particularly when the “work force” includes any subcontractor work force and is measured in labor work hours. To be considered a “resident” the person must be able to produce documentation specified under the law that establishes the person has maintained his/her principal residence in Kotzebue for at least 30 days. To prove their “good faith” efforts to comply with the local hiring requirements, contractors must meet various recordkeeping requirements the particulars of which are set out in the statute. Given these strict requirements, the details that must be added to their hiring process and the time invested in implementing them, as well as the time and resources that must be spent to train and integrate new workers, it is understandable why many companies do not embrace local hire laws, but instead view them as a burden and hindrance to their ability to per-

form their work in a time efficient and streamlined manner. Even though the State of Alaska has created a recruiting and hiring assistance program known as the Alaska Job Center Network and has established 23 job centers throughout the state, the task of complying with local hire laws can be daunting.

lOcal hire BeneFiTs

However, there is no question that local hiring bolsters the local economy by increasing job opportunities and reducing unemployment rates, which typically infuses more funds into local commerce, thereby benefiting other local businesses and residents. Additionally, most opponents of local hire requirements acknowledge that there are many contributory benefits to the company as well. Hiring local residents that are already invested in the community tends to reduce a company’s overhead. Unlike outside hires who often “come, work and leave,” local residents are less likely to pick up and quit on short notice because they have completed their “Alaskan

adventure” and are ready to return to the Lower 48. Local residents also are more apt to be more mindful in their interactions with their company and other employees because, given the close knit community and industries, they tend to have outside relationships with their supervisors, managers, other employees and so forth—or, at the very least, realize that there is a good chance they will run into some of them again either in a professional or personal setting. These circumstances typically help minimize turnover, improve employee relations, improve employee productivity and help create a stronger team mentality among a company’s work force.

sBa huBZOne preFerence

Furthermore, hiring local may lead to a significant financial benefit through supplemental federal contracting opportunities for a business if it is located in an economically depressed area. Under the Small Business Administration’s Historically Underutilized Business Zones (HUBZone) Program, ConstruCtion

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Bookmark as a favorite! Find latest statewide business and industry news. Get government news. Statewide Calendar Post your event! Read past issues online

FREE! Photo by Michail Shestakov Courtesy of Vitus Marine LLC

The Russian-flagged T/V Renda preparing to fuel in Dutch Harbor Jan. 3 for the historic voyage across the frozen Bering Sea to deliver 1.3 million gallons of winter fuel to Nome with an escort by the U.S. Coast Guard Cutter Healy, the Coast Guards only operational polar icebreaker.

was to keep the customer out of risk if the fuel didn’t arrive.” Smith and his people at Vitus Marine got busy with the logistics of the operation and started making contact with all the parties that would be involved in what was to become the history making first commercial winter delivery of petroleum through sea ice to Nome. “Sitnasuak and Vitus Marine inquired and appealed for support to Lt. Governor Meade Treadwell and the congressional delegation,” Smith says. “John Kotula of the Alaska Department of Environmental Conservation and USGC Captain Jason Fosdick were instrumental in providing regulatory oversight and prevention strategies. Bob King, legislative assistant for Sen. Mark Begich provided a lot of sup-

port as did Bob Walsh from Sen. Lisa Murkowski’s office.” Sitnasuak announced the contract Dec. 5 last year for Vitus Marine LLC to deliver, via the Renda, the rest of Nome’s winter fuel, approximately1.3 million gallons. “The Coast Guard has done an excellent job in working with us to execute an innovative and complex solution to the fuel crisis that currently faces the community of Nome,” said Sitnasuak Board Chairman Jason Evans when announcing the contract Dec. 5. “They are currently investigating the use of the Coast Guard icebreaker Healy to ensure the Russian tanker is able to make it through the ice to Nome. We really appreciate their assistance.”

US COAST GUARD TO THE RESCUE

The Healy happened to be on its way home from a seven-month scientific mission in the Arctic Ocean and extended its Alaska stay another month to make sure the Renda made it through the sea ice to Nome. The Seattle-based 420-foot polar icebreaker with 80 crewmembers onboard is the country’s largest, and only working, icebreaker. The Coast Guard agreed to help, with conditions: “The Healy’s participation is contingent upon the following four items: the Renda passes the Coast Guard port state control exam, there are no inordinate delays, the fuel transfer plans meet federal and state requirements and on scene weather conditions permit safe passage. If all these conditions are met the Healy will assist the Renda’s transit

www.akbizmag.com • Alaska Business Monthly • March 2012

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akbizmag.com 38

businesses located within specific areas that hire locally receive contracting preferences for federal contracts. Using Census data, the SBA designates the areas of the country that meet the HUBZone criteria, which is generally based on unemployment and poverty levels. In Anchorage, portions of downtown and Mountain View currently qualify as HUBZone areas. Outside of Anchorage, much of Alaska qualifies as HUBZone areas including Nome, Bethel, Dillingham, sections of Fairbanks, and the Kenai Peninsula. (Due to changing demographics from the 2012 Census, much of the Kenai Peninsula is scheduled to lose its HUBZone status in October 2012.) In addition to these areas most Alaska villages also qualify as HUBZone areas. In order to qualify for the HUBZone program, a business’ principal office must be located within the HUBZone area, and at least 35 percent of its employees must also reside in the area. The company must also be considered “small” by the SBA, which is determined by the company’s income and area of business. At least 51 percent of the company must be owned and controlled by U.S. citizens. Typically, the most difficult condition to meet is the 35 percent hiring requirement, which must be maintained through the course of the business. For example, if your company has 10 employees, then four of those employees must live within the HUBZone area. If one of those four employees quits or is fired, in order to maintain HUBZone status, the person must be replaced by someone who also lives within the area. When an entire town (or county) is designated a HUBZone, this is generally a straightforward process. However, when only certain portions of a city, such as in Anchorage, is designated, this can prove to be more difficult. Targeted advertising and job postings within the designated areas may be necessary to attract applicants who live within the qualified areas. Although obtaining and maintaining HUBZone status may be tricky, there are definite benefits to participating in the program. HUBZone businesses are eligible for federal contracts with limited competition (often those set aside for small business), and for

contracts awarded without competition. For contracts that are bid allowing both small and large businesses to compete, HUBZone businesses receive a 10 percent price evaluation preference. The federal government has a goal of awarding 3 percent of all contracting dollars to HUBZone businesses. Considering that in fiscal year 2011 the federal government spent approximately $536 billion on contracts, 3 percent is a sizeable amount of contracting dollars.

huBZOne hirinG Tips

■ If you are interested in participating in the HUBZone program visit: http://map.sba.gov/hubzone/ maps/ to determine if your business is currently located within a designated HUBZone area. ■ Be cognizant of your employees’ residential status and the number of employees who must reside in the HUBZone for your particular business. ■ Visit sba.gov/hubzone to learn about the program requirements and begin the certification process. Additional resources for local recruiting and hiring are found online at jobs.state.ak.us. q

Anne Marie Tavella Renea I. Saade

About the Authors Renea I. Saade and Anne Marie Tavella are attorneys with Oles Morrison Rinker Baker LLP. They assist companies, including contractors, with their governmental contracting and employment law needs and may be contacted at saade@ oles.com and tavella@oles.com, respectively. It is important to note that the foregoing information is provided for informational purposes only and does not serve as legal advice. All legal questions that your company may have should be directed to an attorney of your choice.

www.akbizmag.com • Alaska Business Monthly • May 2012

FINANCIAL SERVICES

Industrial Strength Market Movement Mergers, acquisitions alter Alaska businesses

Photos courtesy of Vigor Industrial / Chip Porter

BY GAIL WEST

Computer rendering, above, of the Alaska Ship and Drydock yard in Ketchikan with improvements (proposed and under way). Aerial view, left, of the facilities earlier this year.

lthough Alaska has in large part managed to avoid the Great Recession that shook the rest of the country, it hasn’t been immune to many of the mergers and acquisitions that accompanied the economic slide. Over the past several months, industries ranging from oil and gas to waste management have seen several consolidations and title transfers.

www.akbizmag.com • Alaska Business Monthly • May 2012

shippinG as usual. It does mean, though, more Johnson will continue with the comNot all of the acquisitions have been buying power, updated technology and pany, becoming ASD vice chairman. comparable to larger fish gobbling up a larger equipment pool for PAF. Jobs “The purchase will (allow ASD) … smaller fish for economic reasons. For stay steady. It is a natural fit.” to significantly participate in exciting the Pacific Alaska Freightways purA second acquisition, that of Alaska new markets emerging in the North Pachase of Southern Alaska Forwarding, Ship and Drydock Inc. in Ketchikan cific and Arctic oceans,” Johnson says. it means SAF’s owner will be able to by Vigor Industrial of Portland, Ore., Vigor Industrial currently owns and retire. For PAF, it completes a circle received approval from the Alaska operates leading maritime services in that began in 1979 the Pacific Northwhen Alain Smith west at facilities and Ron Sears first “The purchase will (allow ASD) … to significantly from Portland to established SAF. Puget Sound and participate in exciting new markets emerging in the Over the years, North Pacific and Arctic oceans.” supports customers SAF expanded its from the U.S. Navy –Randy Johnson and Coast Guard to coverage and operations to include commercial fishing Kenai and Cordova. In 2000, the com- Industrial Development and Export and cargo fleets, to ferries and oil transpany divided into two separate com- Authority for transfer of ASD leases portation companies. panies, with PAF picking up freight at AIDEA’s Ketchikan Shipyard and from Anchorage, and SAF handing its became a Vigor company Feb. 29. The sOlid WasTe transfer and delivery to Kodiak. With new entity, Alaska Ship & Drydock A California firm, Waste Connections the merger of these two firms, effective LLC, is now a subsidiary of Vigor, and Inc., announced its intention to acquire Jan. 1 of this year, the circuit becomes all ASD employees and customers will the operations of Alaska Waste as of whole again, says Bill Meszaros, vice notice little change in day-to-day op- March 1. Alaska Waste is the largest president for PAF. “It completes the pic- erations, according to Randy Johnson, privately owned solid waste services ture for Alaska for PAF. There will be a Ketchikan resident who has directed company in Alaska, with recycling and no interruption to service—it’s business operations at the shipyard since 1994. composting services in Anchorage,

www.akbizmag.com • Alaska Business Monthly • May 2012

the Matanuska and Susitna valleys, Fairbanks, the Kenai Peninsula and Kodiak Island. “Alaska Waste provides us an attractive opportunity to enter multiple markets within a new state and with leading market shares. Alaska’s unique regulatory framework is somewhat of a hybrid between our existing markets in Washington and Montana,” says Ronald J. Mittelstaedt, chairman and chief executive officer of WCI. “Alaska Waste has more than doubled its revenue over the past five years primarily through acquisitions and new sustainability initiatives, including recycling, composting and biodiesel refining.” WCI is an integrated solid waste services company that provides solid waste collection, transfer, disposal and recycling services in mostly exclusive and secondary markets. The company serves more than 2 million residential, commercial and industrial customers from a network of operations in 29 states. It was founded in September 1997 and is headquartered in Folsom, Calif.

mininG

Tower Hill Mines, a wholly owned subsidiary of International Tower Hill Mines Ltd., a Vancouver, B.C., Canada-based company, has acquired several mining claims and related rights near the company’s Livengood Gold Project 70 miles north of Fairbanks. According to a December 2011 news release, a team of mining experts from AngloGold Ashanti, Teck Resources and Kinross—all with experience in development, permitting and operations—will lead the new venture. A prefeasibility study is scheduled for completion in the summer of 2012 and the company is working to produce a resource estimate on placer mining claims that would determine the possibility of achieving short-term placer gold production in 2013. “The acquisition of additional land surrounding our Money Knob gold deposit affords us much greater flexibility for selecting future site facility locations as well as other land use opportunities that may create significant shareholder value,” says Jim Komadina, chief executive officer of ITH. “Given the robust gold price

www.akbizmag.com • Alaska Business Monthly • May 2012

environment for the foreseeable future, we are actively looking at any and all opportunities to ensure the successful development of the Livengood Gold Project into one of North America’s newest—and largest—gold mines.”

Oil and Gas

Hilcorp Alaska LLC completed its acquisition of Chevron’s interests through its wholly owned indirect subsidiary, Union Oil Co. of California, in several Cook Inlet assets in early January, including offshore properties at McArthur River Field, Granite Point Field, Trading Bay Field and Middle Ground Shoal. Hilcorp also acquired and now operates the onshore Kenai Peninsula Swanson River Field as well as the Pretty Creek, Ivan River, Lewis River and Stump Lake gas fields on the west side of Cook Inlet. The company also purchased Chevron’s interest in the Beluga River and Ninilchik gas fields. According to a Hilcorp news release, current net production from these assets is approximately 3,900 barrels of oil and 85 million cubic feet of natural gas per day. The transfer also meant 230 new Alaska employees to Hilcorp, as well as interests in the Cook Inlet Pipe Line Co. and Kenai Kachemak Pipeline LLC. “Ultimately, keeping houses warm and lights on in Southcentral Alaska is a priority for Hilcorp,” says Lori Nelson, manager of external affairs for Hilcorp Alaska. “We currently have 235 full-time employees, most are in the field directly supporting our operations within Cook Inlet. We see great potential here in Alaska and would like to grow the business and, in turn, create more jobs for Alaskans.” According to a Feb. 1 news release, Altagas entered into an agreement with Continental Energy Systems LLC to purchase SEMCO Holding Corp. SEMCO, the sole shareholder of SEMCO Energy Inc., indirectly holds ENSTAR Natural Gas Co. and an interest in a regulated natural gas storage utility in Alaska under construction called Cook Inlet Natural Gas Storage Alaska LLC. The transaction between Altagas and CES is subject to approval in part by the Regulatory Commission of Alaska, and is expected to close in

the third quarter 2012. With the acquisition of ENSTAR, Altagas gains a utility that has demonstrated a 2.5 percent compound annual growth rate over the past 10 years in customer and net plant growth. ENSTAR serves 132,000 customers and is the largest natural gas distributor in Alaska through approximately 414 miles of natural gas transmission pipelines and 2,800 miles of natural gas distribution mains in the Anchorage and Cook Inlet areas. In purchasing an interest in CINGSA, a regulated natural gas storage utility

in which SEMCO owns a 65 percent interest, Altagas gains the potential to expand the company from the currently contemplated 11 billion cubic feet of working natural gas capacity to an estimated reservoir potential of 18 bcf upon completion. The facility is expected to be in service during second quarter 2012, and the addition of natural gas storage capacity through CINGSA is expected to allow ENSTAR to cost-effectively meet the needs of its customers during peak q usage in the winter months.

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RIGHT MOVES Compiled by Mari Gallion Alaska Business Monthly

Gallion

Alaska Business Monthly welcomes Mari Gallion as the company's new associate editor. Gallion received her Bachelor of Arts in English from the University of San Francisco and her Master of Arts in English from Alaska Pacific University.

AT&T

Diane J. Thompson recently changed positions at AT&T and is now an Account Manager 2 in the Signature Client group in Anchorage. She will be responsible for working with Alaska Native corporations. Thompson most recently worked for AT&T Thompson as an Account Manager 2 in the Small Business group and has 16 years of experience in telecommunications.

Bristol Bay Native Corp.

BBNC is pleased to announce the promotion of April Ferguson to senior vice president and general counsel. Ferguson has worked at BBNC for nearly 15 years and most recently was vice president, general counsel and chief compliance officer for the corporation. She earned her JD from Harvard Law. Jeffrey Sinz was promoted to senior vice president and chief financial officer. Sinz joined BBNC in September 2007 as vice president and chief financial officer. Prior to joining BBNC, Sinz served as chief fiscal officer for the Municipality of Anchorage. Sinz earned an MBA from the University of Alaska Anchorage, and a BBA from the University of Wisconsin Eau Claire. L. Tiel Smith was promoted to vice president land and regional operations. Smith has worked as the land and resources manager since 2004. Smith received his Bachelor of Science from Utah State University.

Connect Alaska

James Dunn was appointed executive director of Connect Alaska, a nonprofit organization pursuing economic development through broadband Internet access statewide. Dunn has 25 years of rural Alaska telecommunications experience. He has served various employers, including a role as chief executive and president of an Alaska Native village corporation.

Denali Alaskan Federal Credit Union

Rhonda Alexander has been promoted to manager of Denali Alaskan Federal Credit Union’s member contact center. Prior to her promotion she was the contact center supervisor and, more recently, the contact center assistant Alexander manager. Alexander is also an ambassador for Denali Alaskan’s BALANCE Program, a free financial fitness program that provides information to help members achieve their financial goals.

Alaska USA Insurance Brokers

Alaska USA Insurance Brokers is pleased to announce the selection of Timothy Maudsley as its new president. Maudsley is active in the insurance industry serving as a member of the Commercial Insurance Committee for IBA West and as a member of Regional Advisory Councils for Safeco, Chubb Cornerstone and CAN; and has served on the Advisory Board to the Center for Insurance Studies at California State University, Fullerton.

SouthEast Alaska Regional Health Consortium

SEARHC Behavioral Health Division is pleased to announce the promotion of Dr. J. Russell “Russ” Bowman, DO, MHA, MS, CPE, to the position of medical director for SEARHC Community Health Care Services. Before joining SEARHC, Dr. Bowman spent six years as director of the U.S.

Arndt Bowman Coast Guard Air Station Sitka medical clinic, and most recently has been serving as deputy medical director for Community Health Care Services. SEARHC has also hired Jeff Arndt, LPC, CDC II, as a behavioral health clinician with the Gunaanastí Bill Brady Healing Center/Déilee Hít Safe Harbor House adult residential substance abuse treatment programs in Sitka. Arndt holds a Master of Science in Counseling Psychology from Alaska Pacific University. Before moving to Sitka, Arndt served as a counselor and executive director for Alaska Human Services, an outpatient substance abuse program in Anchorage. Steve Guevara, Psy.D. joined SEARHC as a behavioral health clinician at the SEARHC Behavioral Health Office in Craig. Guevara earned a Doctorate of Clinical Psychology from the Illinois School of Professional Psychology/ Argosy University campus in Chicago, and also holds a Master of Arts in Clinical Psychology from The Chicago School of Professional Psychology.

Mikunda Cottrell & Co.

Mikunda, Cottrell & Co. is pleased to announce the promotion of Lia Patton to vice president/ director in their Audit Department. She graduated from the University of Alaska Anchorage wit h a Bac helor of Business Administration Patton in Accounting. Prior to joining Mikunda, Cottrell & Co., Patton worked in the banking industry for eight years. She is a member of the American Institute of Certified

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RIGHT MOVES

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Cordova Community Medical Center

Theresa Carte, Ph.D., has been named administrator of Cordova Community Medical Center. Carte comes to Cordova from Providence Health & Services Alaska in Anchorage, where she has served as director of operational excellence since 2005.

Associate General Contractors of Alaska

Mary Ann Pruitt has joined the AGC of Alaska and will become assistant executive director to replace the retiring Monty Montgomery. Pruitt joins AGC following a career in marketing and media representation as well as head of her own sales Pruitt and marketing business. Pruitt began work at AGC in April.

chief operating officer. Carrier will lead the Pebble Partnership operations and technical program, reporting to Pebble Partnership CEO John Shively.

WHPacific

WHPacific is pleased to announce that Sandra Velleca has been elected to the Construction Specifications Institute (CSI) Board of Directors as Institute Director from the Northwest Region. Velleca has been a CSI and Northwest Region member Velleca for 30 years. She is a Fellow in CSI and is a Certified Construction Specifier and Certified Construction Contract Administrator.

Credit Union 1

Goldbelt, Inc.

Goldbelt Inc. has named Robert G. Loiselle as its new president and chief executive officer. He takes over the position from Elliott “Chuck ” Wimberly, who has been acting as interim since the retirement of J. Gary Droubay last June. Loiselle Loiselle has almost 30 years experience with Alaska businesses and ANCSA corporations. Loiselle earned a Master of Business Administration from the University of Oregon and also has a Bachelor of Science in Forestry from the University of New Hampshire.

Pebble Partnership

The Pebble Partnership has expanded its executive team with the addition of Rejean Carrier as

Casey

Welch

Napier

Patton

CU1 is pleased to announce four major promotions: Deborah Casey as the Senior Vice President of Lending, Davina Napier as the Vice President of Consumer Loans, Brian Welch as the Member Assistance Manager and Brody Patton as Account Recovery Manager.

Casey has over 20 years experience, which includes heading CU1’s Member Assistance Department (collections and account recovery) since 1995. Napier, with over 16 years of lending experience, has spent a majority of her career as the manager and then Assistant Vice President of Consumer Lending for CU1. Welch, a CU1 employee for over 17 years, has a Bachelor of Arts in History from the University of Alaska Anchorage and multiple certifications from both the Alaska Credit Union League and CUNA. Patton, with six years of prior financial institution collection experience, has worked at CU1 since 2009.

Society of Marketing Professional Services Alaska Chapter

SMPS Alaska Chapter elected its 2012 board of directors: Skip Bourgeois, president, UIC Construction Services; Leah Boltz, president-elect, Bettisworth North Architects and Planners; Cheryl Jemar, treasurer, USKH; Jessica Taft, secretary, Enterprise Engineering; Andrea Story, director of membership, R&M Consultants; Louis Gire, director of programs, PCL Construction Services; Shannon Kinsey, director of communications, ECI/ Hyer Architecture and Interiors; Crystal Barnes, director of sponsorship, McCool Carlson Green Architects and Don Love, director of scholarships, Architects Alaska.

Alaska Community Foundation

ACF named the following officers to its 2012 board of directors: Susan Behlke Foley, chair of the board, Foley & Foley; Blythe Campbell, vice chair, Northrim Bank; Kris Norosz, secretary, Icicle Seafoods; Bernie Washington, treasurer, Alaska Public Telecommunications Inc.; Angela Cox, first vice chair; Carla Beam, past chair, Arctic Slope Native Association. Other ACF board members include Leo Bustad, Anchorage Neighborhood Health Center; Morgan Christen, U.S. Court of Appeals for the Ninth Circuit; Kathryn Dodge, Cold Climate Housing Research Center; Rick Nerland, Nerland Agency; Alex Slivka, Alaska Community Foundation; McKinley Capital Management; and Lane Tucker, Stoel Rives; and Don Zoerb, Mat-Su Health Foundation. q

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HEALTH & MEDICINE

Men’s Health: From Resistance to Respect Manning up for a journey to Oz BY K.T. MCKEE

f 68-year-old Les Day hadn’t listened to his wife 15 years ago, he probably would have died shortly thereafter. “Fifteen years ago, there was very little awareness or advocacy for cancer screenings,” says Day, now president of the Alaska Prostate Cancer Coalition. “Thanks to the gentle naggings of my wife, I finally went to one of those community health fairs and had some blood tests—one of which screened for prostate cancer. Turned out I had cancer. Then I became a champion for early detection.” His wife, Theresa, serves as treasurer of the same nonprofit coalition they’re both devoting themselves to these days. Some of their work involves keeping on top of the U.S. Preventative Services Task Force recommendations for such screenings—especially when the USPSTF has in the past found little benefit for prostate cancer tests in men younger than 75. That ruling is currently under review by the Task Force due to pressure from groups like the Alaska Prostate Cancer Coalition, an affiliate of the National Alliance of State Prostate Cancer Coalitions.

lisTen TO The WOmen

“We find that the real champions for early screenings are the women in our lives,” says Day, who also was fortunate to find some new FDA-approved drugs with which to battle a recurrence of his cancer five years ago. “Men don’t want to talk about it or acknowledge it. The male ego gets in the way. Selfish males would rather die than stay alive for their families simply because they can’t fathom a rectal exam. I tell them, ‘C’mon! Man up!’” A prostate exam, starting at age 50, is just one of 10 health tests recommended for all men of certain ages and risk fac-

tors by Alaska Regional Hospital in anticipation of National Men’s Health Week, June 11-17. The hospital hosted its annual Healthy Men & Women Fair in April, offering free blood tests and seminars on preventing heart disease, diabetes, stroke and cancer. Other essential tests touted by Alaska Regional include an annual blood pressure check, cholesterol checks, monthly self-exams and annual doctor exams for testicular cancer, blood sugar tests, monthly self-exams and yearly doctor scans for skin cancer, depression discussions, STD screenings for the sexually active, and annual dental exams to decrease the risk of stroke and coronary artery disease due to gum disease.

The cOunTer-arGumenT

To a couple of former Alaska men who think their Sitka-born wives have gone too far in worrying about their health, and to at least one male physician in Anchorage, however, some of the hype behind various health tests needs to be toned down a bit. “There’s no such thing as one size fits all when it comes to health screenings,” says former commercial fisherman Dan Steward, M.D., who went back to school and opened his own primary care business, Steward Family Medicine, in Anchorage three years ago. “It depends on your lifestyle, your heredity and other risk factors. Everyone shouldn’t have every test out there because sometimes it causes more harm than good. If you’re a 40-yearold male who’s married and doesn’t smoke and drinks only occasionally, what tests does that guy really need? Blood pressure and cholesterol, and that’s about it.” Steward says that although he had his own health scare when he experi-

enced chest pains a few years ago in his mid-40s, it’s still his wife who has to keep on top of him to watch his health through diet and exercise. He admits it’s usually the wives who prompt his male patients to go in for their annual check-ups. “I like to have both of them there when I’m seeing a patient, but it usually doesn’t happen that often,” says Steward, a lifelong Alaskan. “There are lots of people walking around with high cholesterol and diabetes who don’t even know it, I’m sure. But I’m still not for making widespread recommendations. Every patient is different.”

dOcTOr OZ TO Blame

That’s why Oregon computer wiz Shane Angus and his brother-in-law Tod Jones, a Washington optometrist, started a website a few years ago called “I Hate Dr. Oz” after their Alaskan wives drove them batty with daily recommendations from the increasingly popular TV heart surgeon, Dr. Mehmet Oz. The health harassments started when Oz began appearing as a guest on the Oprah show every now and then back in 2008. “Each time my wife Corrie saw Dr. Oz on Oprah there’d be something new we needed to do to change our lifestyle,” says Angus, a 35-year-old project manager for the Oregon Department of Revenue whose wife, Corrie, grew up in a small town near Glacier Bay, Alaska. “Quite often it meant giving up some sort of freedom. And it only got worse when Oz got his own show.” The same was true for Jones and his wife Heather, Corrie’s sister. Jones was eight years older than Angus, but still didn’t see the need for so much Oz advice. “We would talk to each other on our way to work and commiserate on the

www.akbizmag.com • Alaska Business Monthly • May 2012

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latest health fad pushed by our wives,” Angus laughed. “The tipping point was when they put us on a colon-cleansing diet. Enough was enough!” When they first started their blog “ihatedroz.com,” the two men just wanted a way to vent their frustrations while also picking up a few extra bucks they could use in Vegas from their blog advertisers. The blog began poking fun of Oz and offering its own “health tips,” such as how to make the best steak omelets and lemon drop martinis. Their wives were appalled. “At first I didn’t like their website,” said Heather, who loves Dr. Oz and his emphasis on healthy foods such as those she grew up on in Alaska, such as fresh fish and berries. “I thought, ‘They can’t really mean it.’ Then I read their mission statement and I knew it wasn’t all bad.” In their mission statement titled “Why We ‘Hate’ Dr. Oz,” the men explain that the purpose of the blog is to offer support for men in relationships when they find the women in their lives have come under the mysterious power of “the great Oz.” “Don’t get us wrong,” they wrote. “We actually think Dr. Oz is a great doctor, and we don’t hate him specifically. When our wives start in with a lecture on, ‘Well I saw on Dr. Oz ...’ a man could just scream.” When their wives saw that the men were actually passing on various bits of good advice given by Oz and also going along with many of his suggestions, they knew who the real winner was in the end. “Shane always pushes back when I try to get him to try something new from Dr. Oz, but he ends up doing it anyway,” Corrie said. “He knows what’s good for him, even though he gives me grief the whole time.”

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What none of them expected was a call in February from someone from the Dr. Oz Show for them to appear on TV with Oz. Within two days, the four of them were flying to New York City—all expenses paid. Little did they know, show producers had rounded up 10 other men and their wives from the New York area to beef up their numbers on stage and www.akbizmag.com • Alaska Business Monthly • May 2012

represent the hundreds of followers of the “I Hate Dr. Oz” movement. “For years, I’ve been encouraging you to take charge of your health,” Dr. Oz told his guests and the mostly female audience at the start of the show as Angus and Jones stood behind him with defiant expressions. “From your poop, to your diet, to your supplements.” Taped segments of Angus and Jones showed them complaining about not being able to record their favorite sports because their DVRs are filled with Dr. Oz shows and being forced to eat nuts and drink green sludge that tastes like dirty feet. Angus tells Oz the advice is great, but it’s the sheer quantity of it that has them pulling their hair out. “So if you could just taper it back a little bit—just two or three times a week for just the guys would be enough,” Angus begs of Oz.

This WOn’T hurT a BiT

In a compromise meant to keep both the men and their mates happy and healthy, Oz told the men he’d like them to at least commit to three basic tests: blood pressure, prostate and blood sugar. With that, Oz asked a man named Anthony to step forward with his wife. Anthony, a tall, heavy-set man, said his wife has him taking about 20 dietary supplements every day because of his weight and to improve his diet. Oz whipped out not one, but two blood pressure cuffs for Anthony. He said new medical studies have found it’s best to check the blood pressure in both arms to determine if there are blocked arteries. Oz said the ideal blood pressure is 115/75 and that there shouldn’t be more than a 20-point difference in the top number or a 10-point difference in the bottom number between the two arms. The audience gasped as the BP monitors showed Anthony had 160/113 in his left arm and 157/121 in his right. To Oz, this means Anthony has a much higher risk of heart attack, stroke, and kidney disease, and he recommended he take immediate steps to get his BP under control, such as seeing his doctor and cutting down on his salt intake. “The mission of this show is not to scare you,” Oz tells them. “The mission of the show is to empower you. I love

www.akbizmag.com • Alaska Business Monthly • May 2012

that you’re talking to each other! It means you’re talking about something that’s important in your lives.” The show aired March 1, but Angus and Jones already had written fresh blogs about their experience with Oz after returning from the taping the week before. From warning men their wives might attack them with two BP cuffs to the healing power of “green juice,” they admitted the adventure behind Oz’s curtain was eye-opening and enlightening.

“After such a terrifying and nerve wracking adventure, I can safely tell you that…he is actually a really nice guy,” they write of Oz. “I mean, it’s like all this information he has been feeding our wives for the last eight years while on TV is actually in the interest of our good health and well-being, and not some legal torture system. As much as I wanted to put on the boxing gloves and break into an MMA cage match, I found myself listening to his advice and shaking his hand.”

For Day, a former teacher and coach who has been married to his current wife for 24 years now, the most important thing is for men of all ages to take advantage of free screenings in their communities—rather than waiting until they’re 52—and to listen to their better half. “Your wife wants you around for companionship and to be there for your kids and grandkids,” Day said, adding with a chuckle, “Get over yourself!” q

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FISHERIES

Alaska’s Fishing Industry The universal relevance of a multi-billion dollar industry

Photo © ???

BY PAULA DOBBYN

The crew casts out the first set of a gillnet in Ugashik Bay, Bristol Bay region, Southwest Alaska.

ele Aadsen started out in Wasilla, spending her first few years in the strip mall town north of Anchorage later made famous by a certain former Alaska governor. But the Sitka troller and writer didn’t remain in Mat-Su for long. When Aadsen was a second grader, her parents, Ken and Val, built a sailboat in their Wasilla backyard, a construction project that eventually morphed into a job and a lifestyle for their daughter. “My fishing career started in 1984 when I was seven,” Aadsen says. “After my parents finished the boat, they sailed it from Anchorage across the

Gulf of Alaska without any clear idea of what was going to happen next.” As it turned out, the Aadsens found themselves in Sitka, one of Alaska’s busiest fishing ports located on the outer coast of Southeast’s scenic Inside Passage, surrounded by the lush Tongass National Forest. As the family moored their sailboat, Sitka’s docks were crawling with people offloading fish and others looking for deckhand jobs. The family instantly got caught up in the summer fishing frenzy that defines many coastal Alaska communities. They decided to rig up the sailboat

as a hand troller and try their hand at salmon fishing. “After a couple of years it became obvious we weren’t going to earn a living that way,” Aadsen says. In the fall of 1986, the Aadsens decided to get serious. They traveled to Port Townsend, Wash., and found a fiberglass hull. They traded a piece of land they owned in Petersburg for the hull, and went to work transforming it into a power troller. The family lived in “a broken-down motor home outside the boat barn,” and, later, in the Port Townsend boat yard, working 18-hour days to get the Willie Lee II built in

www.akbizmag.com • Alaska Business Monthly • May 2012

Fueling the Trident Cannery in Akutan, the City of King Cove and warming the home of Tom and Annie Hume.

Photo © ???

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time to fish the upcoming season. “They didn’t know it was impossible for a couple to build a boat in nine months, so that’s what they did,” Aadsen says. “We fished the Willie Lee II that July and sold the sailboat.” They fished together as a family for a few more years. But the bottom fell out of the Alaska wild salmon market in 1989 following the Exxon Valdez spill, and Ken decided to get out of the business. Val, however, saw a future in commercial fishing in Southeast Alaska and kept the boat. The couple split. At the time, according to Aadsen, Val was one of the few female skippers www.akbizmag.com • Alaska Business Monthly • May 2012

in Southeast Alaska, and her only crewman was her daughter. They fished for nearly a decade together until a few years of poor returns, low prices and equipment costs took a financial toll. Her mother ended up selling their boat. Aadsen took a break from fishing, got a master’s degree and did social work in Seattle for seven years. But, like many fishermen who get hooked on the lifestyle, Aadsen’s heart was on the water. She traded her social work job for a full-time career as a troller and a longliner in Southeast Alaska and hasn’t looked back since. “I’m paying off my student loans with my fishing business,” says Aadsen, who is also writing a memoir while maintaining “Hooked,” her popular fishing blog.

lOvinG WhaT YOu dO

She and her partner, Joel Brady-Power, own and operate a 43-foot fiberglass troller, F/V Nerka, which they fish from July through September. Before the salmon season, Aadsen longlines for halibut and black cod in April and May. “I don’t love killing fish, but I love my life as a fisherman,” she says.

As a fisherman, Aadsen cherishes being able to provide a high-value, carefully managed and sustainable product, and being surrounded by the beauty of Alaska, as well as the fact that she’s her own boss. Despite the mystique of working for oneself on Alaska’s pristine waters with stunning mountains and glaciers as a backdrop, commercial fishing can be a brutal, competitive and highly risky business. It’s definitely not for everyone, notes Bruce Wallace, a longtime Juneau resident, seiner and vice president of United Fishermen of Alaska, a trade association representing 37 commercial fishing organizations. “A lot of people dream about having a career in fishing, but the industry has a way of selecting the people who will stick around. A lot of people crew for a few years and then they say, ‘It’s time to go get real.’ Some of us never get out of Alice in Wonderland, but that’s another story,” Wallace says.

rakinG iT in

Wallace got into fishing about 40 years ago in Alaska. He had one of his best seasons ever last year when

Southeast Alaska outpaced every other region in the state, including Bristol Bay, for its commercial salmon harvest, valued by state regulators at more than $203 million. Southeast was also the state’s most productive region in terms of number and weight of salmon caught. Southeast fishermen hauled in 73.5 million fish weighing 324.5 million pounds, according to the Alaska Department of Fish and Game. “I know that some boats landed more than 2 million pounds of pinks. At 45 cents a pound, that’s a pretty good season,” Wallace says. Southeast high school kids who worked as deckhands aboard seiners reportedly came away last summer with tens of thousands of dollars. Some showed up at school in the fall driving shiny new pick-up trucks bought with their crew earnings, according to reports from fishermen.

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www.akbizmag.com • Alaska Business Monthly • May 2012

good reason. Alaska is one of the few places where wild salmon largely remain healthy and abundant due to intact habitat and careful management. Alaska is the world’s top producer of wild salmon, eclipsing Russia, China and Japan, according to research by Gunnar Knapp, an economics professor and fisheries expert at the Institute of Social and Economic Research in Anchorage. The state produces nearly 80 percent of the world’s supply of wild king, sockeye and coho, all high-dollar species. Although salmon constituted just 18 percent of the total volume of seafood caught in Alaska in 2010, it accounted for 35 percent of the export value, according to the Alaska Seafood Marketing Institute. Times have been good lately for Alaska’s commercial salmon fishermen with prices on the rise. Wholesale salmon prices jumped from $1.31 per pound in 2002 to $2.45 per pound in 2010, according to the Juneau-based research firm, McDowell Group. During this same period, the total value of salmon permits also rose from $205

million to nearly $521 million. Salmon is just one of Alaska’s top commercial fish species. The other notables include herring, halibut, shellfish and ground fish. Ground fish—namely pollock, cod, rockfish, hake and haddock—are the big kids on the block. Some 43 percent of the export volume of Alaska seafood came from pollock in 2010, according to ASMI. Pollock is a tasty white fish often made into fish sticks and battered frozen fillets. Alaska’s ground fish harvest is one of the world’s largest commercial fisheries. According to a study published in 2009 by Northern Economics, a research firm with offices in Anchorage and Bellingham, Wash., Alaska ground fish and flat fish made up about one-fifth of the world’s catch of these species in 2006. All told, commercial fishermen in Alaska harvested a staggering 4.5 billion pounds of seafood in 2010.

BiG numBers

Although oil is king in Alaska—funding more than 80 percent of the state’s

treasury—fishing dwarfs petroleum in some regards, particularly in employment numbers. The fishing industry is Alaska’s largest private-sector employer and fish are the state’s main export product. Think of it this way: in the United States, about 99,000 people make their living as commercial fishermen, and more than half of them do so in Alaska. According to the McDowell Group, using Alaska Department of Labor figures, Alaska directly employed some 53,000 people as fishermen or in processing jobs in 2009. About 45 percent of them were Alaskans with the rest from out of state. But despite the fact that a relatively high percentage of seafood jobs are held by nonresidents, the industry brings enormous sums into Alaska through direct and indirect employment, taxes and sales. According to ASMI, the wholesale value of Alaska seafood in 2010 totaled $3.8 billion dollars. In 2007, that number was $3.6 billion, according to the Northern Economics study. But the so-called ripple effect makes the figure

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www.akbizmag.com • Alaska Business Monthly • May 2012

rural jOBs

Fishing is an integral part of the culture and economy of rural Alaska, and in many cases, the primary economic driver. Alaska has about 44,000 miles of coastline dotted with cities and villages. In many of these isolated areas, unemployment is sky high and the cost of living exorbitant. Fishing offers a way for rural Alaskans to pay bills, through commercial harvest, in jobs associated with the sport fishing industry, and through traditional subsistence gathering. According to the McDowell Group, one in every seven rural Alaska residents of working age found employment aboard a commercial fishing vessel or in a processing plant in 2009. “In many rural communities, fishing provides one of the few options to earn cash,” says Tyson Fick, communications director for ASMI. Many of Alaska’s top fishing ports are located in rural areas, such as Unalaska/Dutch Harbor in the Aleutians, Kodiak, Naknek-King Salmon in Bristol Bay, Cordova, Ketchikan, Petersburg, Sitka, Wrangell and Yakutat. Other major hubs lie in more populated spots including Seward, Juneau, Homer, Kenai and—the state’s largest city—Anchorage. In terms of gross earnings from commercial fishing, the remote Aleutians and Pribilof Islands are typically the highest-ranking part of the state. According to ASMI, the gross earnings of permit holders in this region in 2009 totaled more than $657.5 million. That’s followed by the Southeast panhandle with grossing earnings of $173.48 million. Bristol Bay came in third with $133.32 million; Southcentral fourth with $131.35 million; and

much larger. The $3.6 billion generated another $2.2 billion in indirect economic activity for a total of $5.8 billion in economic output for Alaska, the report concludes. That nearly $6 billion economic contribution makes fishing a key economic workhorse for Alaska. Behind oil and gas and the federal government, the seafood industry ranks third in Alaska as far as generating basic economic activity. It’s especially important in rural parts of the state. Gillnetters wait to deliver their fish to tenders in the Ugashik fishing district, Bristol Bay, Southwest Alaska.

Kodiak fifth with $111.16 million. When you compare Alaska’s commercial fishing industry by size of work force, Southeast ranks highest. In 2009, Southeast had a seafood industry work force of more than 10,150. The Aleutians and Pribilofs came in second with work force of 5,309. Bristol Bay, Southcentral and Kodiak followed respectively. Regarding export partners, China is Alaska’s biggest buyer in terms of volume. Japan is the largest in terms of total value. Brazil is also a very important emerging market for Alaska. “Brazil is one of the world’s fastest growing economies. The population of Brazil is three and a half times that of Europe and they’re big fish eaters,” Wallace says. ASMI recently opened an office in Sao Paolo, Brazil, in hopes of expanding Alaska seafood exports to the South American nation, Fick says.

prOTecTinG The resOurce

Alaska is blessed with rich stocks of wild fish, and the science-driven management provided by state and federal regulators is often held up as a model for other states and countries—but that’s not to say there aren’t threats: ocean acidification, climate change, endangered species listings, habitat alterations and pollution are some, to name a few. At least one salmon-rich region of Alaska faces the prospect of a major new mining development over which many fishermen have expressed concern. There’s also unrelenting fishing pressure from other countries with less rigorous regulations than Alaska. “The ocean is a productive soup and

everyone wants a share of it,” Wallace says. As fishermen adopt increasingly sophisticated technology to find and capture fish, pressure on the resource grows. But management, at least in Alaska, has proven adept at responding to advances in equipment, shifts in fish populations and other changes, he says. “As the industry gets better at doing what it does, the management gets more conservative. It’s an economicecological balancing act,” he says. Knapp notes that the world’s vast oceans are still an unknown entity in many respects and nothing about the future of commercial fishing is certain. “Even with the best and most consistent and conscientious management, we don’t control the oceans,” he says. One of the things we do have some control over is how we manage fish habitat within our state and habitat conservation is critically important, says Aadsen. “What I see sometimes is a sense of entitlement to our resource. You’ll hear some folks say, ‘This is here for us to use,’ as if Alaska is somehow exempt from the consequences that salmon have experienced in the Lower 48. In Alaska, we can’t even imagine our salmon not being here,” Aadsen says. As more young people break into the ranks of commercial fishing, Aadsen says she sees growing awareness among the fleet that unless the watersheds that produce salmon are left intact, the same problems that decimated salmon runs in the Pacific Northwest and elsewhere could happen here. “What we have up here is nothing that should ever be taken for granted,” q she says.

www.akbizmag.com • Alaska Business Monthly • May 2012

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10 Myths about Cloud Computing in Alaska BY NATHANIEL GATES

laskans are keenly aware of their proximity to the rest of the world. For some, it is the bane to their existence, for others, it is the very reason Alaska is where they choose to live. But for all of them, the isolation is a factor in their dealings and needs to be considered in business decisions. Technology has greatly lessened the impact of isolation but the perception of isolation remains. The world is moving to cloud computing, but many Alaska businesses are burdened with incorrect perceptions and misinformation regarding the cloud. Here is a list of concerns routinely raised by statewide business leaders based on their unique perceptions:

clOud cOmpuTinG is less secure Than lOcal servers.

Although Grandma may be adamant that her bingo stash and war bonds are safer stuffed under her mattress than trusting banks, any prudent comparison of the two obviously demonstrates the bank is safer. Why? Because the bank is in the business of security. It has spent disproportionately more money on safeguarding the property of its customers because the risk is disproportionately greater than that of a single corporation’s. A brief review of the security practices, budgets and safeguards in place at any reputable cloud facility adds perspective to this. Like the banks, cloud computing providers are in the business of security and invest far more than local servers to ensure that security. Tens of thousands of companies depend on this network of data centers to be up, operational and secure 100 percent of the time.

mY emplOYees and cusTOmers are in alaska, sO iT Will Be FasTer TO keep mY servers in TOWn.

This might come as a surprise, but Alaska phone companies are not nec-

essarily “kindred spirits.” In fact, they rarely exchange data between each other, and instead depend on thirdparty providers in the Lower 48 to hand off the data. This means that when your customer tries to access your website, the data request is usually routed Outside where the handoff is made before being sent back up to Alaska. Then, the data response from your server heads back down on a second round trip before arriving at your customer’s computer. This double round trip is made a bajillion times every time you load a webpage. The irony: by placing your servers in the Lower 48, they could be twice as fast as having the servers in Alaska.

inTerneT cOnnecTiviTY BeTWeen alaska and The lOWer 48 is unreliaBle.

This is one of the most common fears Alaska businesses express when considering cloud solutions. Many remember the days when a wayward boat anchor would seemingly aim for the single undersea lifeline that connected Alaskans to the outside world. Today, there are four distinct fiber pathways between Alaska and the Pacific Northwest. There is not a single point of failure, or a single stretch of conduit that, if damaged, would affect all four diverse paths. Fiber owners also maintain failover equipment to route traffic automatically—even to a competitor’s fiber—if the need arises. Although tightlipped as to present usage versus capacity, Alaska fiber owner companies unanimously agree that Alaskans can expect consistent, reliable connectivity for the foreseeable future.

i like TO Be aBle TO reach OuT and TOuch mY servers.

Really? When was the last time you walked the cool, drafty aisles of your data center? More likely, your company’s data center is a converted utility closet with sprinklers overhead and a Wal-Mart air conditioner installed directly above the servers. The truth is, proximity to the servers is now irrelevant in the Internet age. Here is a little secret that IT folks hold close: rarely, if ever, is physical interaction with a server necessary after installation. Nearly 100 percent of hardware and software support is accomplished remotely over the network. The IT personnel watching the server may be in the same building, across town, or thousands of miles away, because it makes no difference. Why? Because generally speaking, we IT people are a lazy bunch, and if we don’t have to walk downstairs or drive across town to work on a server, we won’t. We all use tools that allow us to remotely manage every aspect of a server from anywhere on the network, and often anywhere in the world.

There is mOre accOunTaBiliTY WiTh lOcal servers Than WiTh The clOud.

It is nice to have a throat to choke when something goes wrong. I can’t tell you how many times my phone has rung in years past when a server crashed or an important file “just disappeared” and needed to be restored from backup. (Most often these calls come in between 2 a.m. and 5 a.m., or during the fourth quarter of the Superbowl.)

www.akbizmag.com • Alaska Business Monthly • May 2012

Seemingly, there is someone to call when there is a problem, and someone to hold accountable for the downtime. But what is the true breadth of that accountability? Other than disciplining or firing the IT guy, is there any recourse or means to be compensated for what was lost? No. Cloud computing companies, on the other hand, all have Service Level Agreements (SLAs) often times approaching 100 percent uptime. In the unlikely event of an outage, the cloud provider reimburses the company up to 10 times the monthly fees for the service disruption. Financially backed accountability is built into every facet of cloud computing. Ask your IT professional what it would cost to provide 100 percent uptime on your IT infrastructure, and then have him stake his job on it.

since i’m On The clOud, i dOn’T need mY iT GuY.

Not so fast. Although there are not local servers to install and support, there are still applications to support, networks to maintain, and printers to unjam. As businesses move to the cloud they are realizing a shift in how they are spending IT labor dollars. A company’s IT team often comprises some of the brightest and most capable people in the organization. Instead of installing and supporting physical infrastructure, IT personnel are developing and de-

ploying applications and systems that drive increased revenue or cost savings.

mY lOcal servers and daTa rOOm diFFerenTiaTe me FrOm mY cOmpeTiTOrs.

New technology is a differentiator, but as broad adoption occurs, the benefit erodes and the technology becomes an expectation rather than a differentiator. Twenty years ago a company’s investment in an email server provided a clear advantage in the marketplace. Today, email and other common business applications

mY inTerneT cOnnecTiOn is FasT enOuGh sO i’m readY TO jump On The clOud.

Although bandwidth is a very important metric when considering cloud computing, there are other factors that must also be carefully considered: ■ Are you on a business grade or consumer grade Internet connection? A 100 percent uptime guarantee on your cloud servers doesn’t mean anything if your Internet connection is only up 95 percent of the time. All of the major telephone providers in Alaska provide managed Internet service with guaranteed uptime SLAs. Find out what service you have and what other options are available to you. ■ Are you on a capped data plan with expensive overages? Beware of the Internet plan that gives you X GB/month of data with exorbitant overage fees. Find a plan that makes sense with your anticipated traffic. ■ Are you on a shared Internet platform? Unbeknownst to you, an intern in the next building could be downloading all 20 seasons of the Simpsons complete with commentary. This would likely bring your cloud computing experience to a standstill because your neighbor has saturated your shared Internet connection. Be sure to ask your phone company for a dedicated Internet service.

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www.akbizmag.com • Alaska Business Monthly • May 2012

are marketplace expectations and utilities that should be purchased from any number of cloud providers. Do not burn overhead dollars on the procurement and maintenance of physical systems that do not differentiate your competition.

mY daTa Will end up in china Or russia.

Concern regarding the physical location of data is real and can be mitigated. Most cloud companies will be straightforward about the physical location of their servers and data storage. In fact, cloud providers often provide affidavits guaranteeing that data is not stored internationally to comply with export requirements and federal contracts. Remember: the largest proponent of cloud computing is the United States federal government.

10. mY iT GuY is WaTchinG OuT FOr mY Business inTeresTs FirsT.

A company’s dependence on IT personnel is tremendous and technology professionals take that responsibility very seriously—along with preserving their livelihood. Cloud computing is new and may seem threatening to IT personnel or contractors. Having a third party review systems and servers independently of an IT team will present the risks and benefits without being clouded by personal reservations. Remember: the IT guy’s job isn’t going anywhere. He will need to adapt his skill sets just as the business must adapt to stay competitive. q

About the Author Nathaniel Gates is president and founder of Cloud49, a cloud computing service provider headquartered in Anchorage. Gates has worked as an IT executive in multiple industries, including petroleum, oilfield services, government contracting and at Alaska Native corporations. Cloud49 has been in business since 2010 and has offices in Anchorage, Seattle and Los Angeles.

www.akbizmag.com • Alaska Business Monthly • May 2012

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ering Shai Rock and Unalaska and the surroundGravel LLC (BSRG) ing areas. If your project is a Native owned is on or off Unalaska, and and operated business sperequires the use of gradcializing in the production ers, loaders, dump trucks, or and placement of highdozers, BSRG can supply you quality rock materials, as with what you need to get well as providing heavy your job done. equipment rentals and services for any type of Added Economic Benefits small or large construcSince 2010 BSRG has worked tion project, including airports, boat harbors with Brice Inc. of Fairbanks, Alaska. They have been very and road building projinstrumental in the developects. “Our strategic locament of our quarry from the tion and barge landing strip, drill and shoot stage, to ability puts us in a posiBill Shaishnikoff, owner Bering Shai Rock and Gravel. hauling our rock off island to tion to benefit those comsurrounding communities with munities in western Alaska services,” Shaishnikoff says. “We are their tugs and barges. affected by erosion issues.” Located in the communities of Un- proud of the fact that we have created BSRG is a Native family owned and alaska and Dutch Harbor in Captain’s four new full-time jobs and three part- operated business, and is recognized by the Small Business Administration Bay, BSRG serves Western Alaska, the time jobs in our community.” as a Disadvantaged Business EnterSouthwest Alaska Peninsula and the Conveniently Addressing prise (DBE). “DBE’s have certain adAleutian Chain. All of Your Rock Needs Bill Shaishnikoff, his wife Diane vantages within USDOT-funded projects. and their two sons have been proudly BSRG’s rock and gravel products are of They also provide prime contractors serving the needs of their community high quality, as represented by many with solutions regarding their USDOT and surrounding areas since 2004. satisfied customers and sample reports, contractual obligations,” says ShaishTheir rock quarry is set up on private including a favorable report from the nikoff. BSRG has also received their land with road and barge access. Sons Army Corps of Engineers. BSRG is HUBZone certificate. Steven and Blaine have been a huge capable of producing Armor Stone for factor in the development of the busi- airports and harbors as well as Alaska ness since the beginning. Diane man- State Spec Rip Rap, crushed gravel and ages the office and is instrumental in fill material. BSRG also offers its product at a all aspects of the business operations. Shaishnikoff also credits his friends lower price. Due to its close proximity and community with helping make his to the water, BSRG can load product business strong: “Frank Arriaga is my directly onto the barge, which eases ficlose friend and consultant. We would nancial and logistics burdens for movFor more information contact: not be where we are today without ing rock off island, passing the savings Bering Shai Rock and Gravel Frank’s loyalty and determination,” on to our customers. PO Box 196 Shaishnikoff says. The Shaishnikoffs Unalaska, AK 99685 Addressing Your Heavy and their business are lauded as good (907) 581-1409 Equipment Needs neighbors as well: “The community of beringseaus@yahoo.com Unalaska/Dutch Harbor encourages BSRG also provides heavy equipment www.beringshairock.com and supports our gravel business and services and rentals for projects within PAID

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ALEUTIANS EAST BOROUGH’S BUSY CONSTRUCTION SEASON

Alaska’s down under projects focus on infrastructure BY DIMITRA LAVRAKAS

inter’s over and the whap of electric hammers and the beep of construction vehicles backing up sound out across Alaska. Sexy big construction projects like hospitals and hotels have given way this year to ones that support communities in a basic way—it’s infrastructure, infrastructure, infrastructure. Some are driven by compliance with federal mandates, others by a desire to make communities more self-reliant.

The aleuTians easT BOrOuGh

Often overlooked by the rest of the state, the Aleutians East Borough is actually a hot bed of activity: wastewater treatment, roads, boat harbor and a new airport or airport improvements are in the works. “We have projects happening in all of our communities,” says Sharon Boyette, Aleutians East Bay administrator. Communities include Cold Bay, Sand Point, King Cove, False Pass, Akutan and Nelson Lagoon. Construction commenced last year on what is perhaps the most breathtak-

ing harbor in all of Alaska. Akutan Harbor will not only serve the tiny village of less than 100 souls whose homes are connected by boardwalks, but also the large Bering Sea fishery and with it the island’s economic engine the Trident Seafood fish processing plant. The largest such facility in North America, during the fishing season about 1,1000 workers filter in and out. The $31 million project is being funded with the help of the U.S. Army Corps of Engineers and Aleutians East Borough. “After completion of the project, it will be turned over to the city and the city will maintain and operate it,” Boyette says. “We retain ownership.” L a st su m mer, approx imately 500,000 cubic yards of material was excavated from the basin and work on the side slopes and grass seeding restored vegetation to the disturbed soil. The port of twelve acres nestled in a sea of grass and surrounded by volcanic cones will provide mooring for up to 57 large fishing vessels and uplands for lo-

cal commercial fishermen and marinerelated industries, serve as a place of refuge for disabled craft, and link the community to a wider transportation network that includes a new airport.

GOOdBYe Grumman GOOse

Penn Air’s World War II era Grumman Goose G21-A, an amphibian plane that carries up to nine passengers or 1,900 pounds of cargo, now serves the island’s air needs. But it will soon disappear from the skies over the Aleutians after completion of a new $77 million airport on the even tinier island of Akun and will link to Akutan by hovercraft. The project is scheduled to be completed by the end of the summer. “I’ve ridden on the Goose and on the Widgeon (another Grumann amphibious plane),” Boyette says. “It’s pretty scary.” While the airport will not accommodate jets, it will take the same size planes as Dutch Harbor—Penn Air’s SAAB 340, which can carry 30 passengers.

www.akbizmag.com • Alaska Business Monthly • May 2012

Nestled safely in a sea of grass, the new Akutan Harbor will boast mooring for up to 57 large fishing vessels.

Photo courtesy of Aleutians East Borough

hOT, hOT, hOT

Akutan, sitting on the Ring of Fire, an active volcanic zone in the Pacific Ocean basin, has seen geophysical survey teams sink electro-magnetic probes since 2009 to determine the feasibility of producing geothermal energy to meet local and commercial needs. The city has doggedly plugged along applying for grants and providing opportunities for public input. “The city is working hard on the geothermal energy project and moving that forward aggressively,” says Boyette of the $2.5 million exploration and feasibility stage with an Alaska Renewable Energy grant. The city’s power cost exceeds 32 cents per kilowatt-hour, and geothermal would reduce reliance on costly diesel fuel and reduce carbon emissions. According to Geothermal Program Manager Ray Mann, more field studies are in the works for this summer, along with permitting and design of the production plan. The feasibility study and business plan penciled out.

“We have a very good resource to produce power,” he says. “We hope to be out there production drilling in 2013.” The $68 million project is estimated to produce 10 megawatts, and the Trident plant uses about 7 megawatts. The remainder would power homes, businesses and the port. The city would realize the profits from providing a clean energy that would help stabilize the region’s economy. Most importantly, it would make residents secure in their own homes knowing they could afford the costs of living there—something other villages are concerned about throughout Bush Alaska. “There is no other energy project like this anywhere in the state that offers this commercial level of power,” he says.

a rOad in iTs FuTure

In March, the U.S. Fish & Wildlife Service moved forward with the draft Environmental Impact Statement for the controversial land exchange that could allow construction of a road corridor linking remote King Cove to the Cold Bay airport.

www.akbizmag.com • Alaska Business Monthly • May 2012

“This has been a decades-long battle for the indigenous people,” Della Trumble, King Cove (Native) Corp. and Agdaagux Tribe spokeswoman said in a press release. “We are relieved the process is moving forward. Our community has already lost too many lives in the struggle to get access to the Cold Bay airport and the outside world during emergencies. We’re glad the U.S. Fish and Wildlife Service listened to us throughout this process and has issued the draft EIS. We hope it will allow this critical matter to be evaluated fairly.”

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So says Unalaska Mayor Shirley Marquardt as the city emerges from working through a complaint against it and the State of Alaska filed by the U.S. Department of Justice on behalf of the EPA for violations of the Clean Water Act. Over 4,800 violations were documented between 2004 and 2010 that included discharge of pollutants into the bay. In February, Unalaska’s city council agreed to pay a $340,000 penalty far short of the EPA’s requested $150 million. The Chemically Enhanced Primary Treatment plant is designed to meet current requirements while resolving 2:42 PM the E.coli eradication problem that high flows of leachate from the landfill created, Marquradt said. The leachate travels from the lined landfill to the wastewater treatment plant where it inhibits the ability of the ultraviolet light to kill the bacteria by coating the lamps with heavy metals from the landfill and surrounding mountains. The tank project at the landfill will keep the flow of leachate regulated to avoid exceeding the flow limits in the EPA permit, and the enhanced treatment process will kill the bacteria with chemicals instead of UV light. The cost for the CEPT plant is estimated at more than $16 million dollars and the Leachate Tank is $6 million. “They will both need to be ready to roll in 2014,” Marquardt says.

WaiT, There’s mOre

The recently completed Unalaska Power House Expansion provides 15 megawatts of highly fuel-efficient and consistent energy to residential, business and

www.akbizmag.com • Alaska Business Monthly • May 2012

industrial customers in Dutch Harbor and Unalaska. “Additional requests from private industry in the past year have caused the city to pursue the fourth engine for the Power House earlier than expected, and we anticipate the next 4.5 megawatts of power to be purchased and installed in the next 16 months to meet demand,” Marquardt says. “And then we add on the fourth engine with 4.5 more making it almost 20 megawatts when complete.” The city owns and operates the Unalaska Marine Center and serves cargo, fishing, fuel, research and the Alaska State Ferry vessels on a year-round basis. “Many of our current and past transportation partners—Maersk, Horizon Lines, American President Lines—are upgrading to larger vessels, and the prospect of cargo transiting the Northern Sea Route across Russia and landing in our port for transfer to other carriers is causing the Port of Dutch Harbor to be proactive in attempting to prepare for the future,” Marquardt says. The UMC upgrade project is a 610foot addition of new dock face with a minimum water depth of 45 feet. The base

D A I LY

S E R V I C E

T O

Seen in the distance from the city of Unalaska, its port Dutch Harbor has been the largest fisheries port in the United States, in terms of volume of seafood caught, for nearly every year since 1981. Photo by Dimitra Lavrakas

estimate for the project is $28.3 million. “The initial planning of the uplands created by the project show we could provide a combination of some but not all of these needs: warehousing, a container storage yard, a cold storage facility or ground storage for oil and gas-related equipment and assets,” she says. “The city is working to have this project included in the governor’s proposed bond package that includes the Port of Anchorage.” The city is also moving ahead on siting a mooring buoy out in Broad Bay. In April, the city council OK’d $250,000 from the Carl E. Moses Boat

T H E

A R C T I C

A N D

Harbor project to the buoy. Derelict vessels have been showing up in Alaska waters and more are being projected to come from the March 2011 Japan tsunami. With the addition of the buoy, Unalaska would become an improved port of refuge being able to offer mooring without tying up other docks. “We always seem to have big projects, but we have very robust and ever-expanding industry partners to support, and we are doing our best to do so,” Marquardt says. “Growth can be a real challenge, but what a great one to have.” q

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MINING

Niblack Expectations

Southeast project advances BY NICOLE A. BONHAM COLBY

Photos courtesy of Heatherdale Resources Ltd.

Located along Moira Sound on southeastern Prince of Wales Island, the Niblack Project is about 30 miles southwest of Ketchikan, and currently accessible by air and sea.

outheasterners experienced several tense hours this spring after learning that a small plane transporting personnel during a crew change from the Niblack Project exploration site crashed on Prince of Wales Island in March. The pilot and passenger both made it out safely. Such incidents are a reminder of the challenges—both historic and contemporary—that come with laboring in remote, rugged terrain to pull minerals from the earth. In Alaska—Southeast, in particular—mining was the impetus that opened the region to northwestward migration from the Lower 48. Evidence of the early rush for minerals still litters a handful of backcountry coves and forest inlets, where the final vestiges of old miners’ cabins and rusty metal equipment from over a century ago melt back into the Tongass. Today, projects like Niblack help keep the fire of the early Alaskan min-

ing rushes alive. For the residents of Prince of Wales Island and nearby commercial center of Ketchikan, the influx of supply dollars to support the project is a glint of hope as the region struggles to maintain a diverse industrial landscape and population base. In the long term, the prospect of skilled jobs and financially healthy livelihoods is on the horizon, yet not for some time, company leaders caution. That said, Heatherdale Resources Ltd. Chief Executive Officer Patrick Smith recently spoke with Alaska Business Monthly about the status of the project and its upcoming economic assessment report.

nOW under sOle OWnership

In January, Vancouver, British Columbia-based exploration and development company Heatherdale Resources Ltd., an affiliate of global development company Hunter Dickinson, announced it had acquired a 100 percent interest

in the Niblack copper-gold-zinc-silver project in Southeast. “Consolidating the ownership of the Niblack Project in Heatherdale will provide more flexibility for development and financing options, and enable us to move forward more aggressively with the project to the benefit of all shareholders,” announced Chairman Scott Cousens at the time. The Niblack Project site is located along Moira Sound on southeastern Prince of Wales Island, about 30 miles southwest of Ketchikan. Heatherdale Resources Ltd. began its involvement with the Niblack project back in 2009 with a three-year agreement with Edmonton, Alberta-based CBR Gold Corp. Through the agreement, Heatherdale was able to increase its stake in the venture to the eventual full acquisition earlier this year. The company name may be familiar to those living in central Alaska as well, given its 60 percent interest—with option to acquire 100

www.akbizmag.com • Alaska Business Monthly • May 2012

percent interest—in the Delta copperlead-zinc-gold-silver project. The Niblack Project’s corporate lineage to present day is reasonably complex. Originally, Niblack Mining Corp. initiated underground development on the Niblack Project in September 2007, with completion on July 12, 2008, according to the project’s 2008 annual report filed with the Alaska Department of Natural Resources. Underground exploration and drilling operations completed on Oct. 7, 2008. That month, Niblack Mining Corp. was acquired by Committee Bay Resources Ltd., which subsequently changed its corporate name to CBR Gold Corp. That company held the project as a principal asset of its wholly owned subsidiary Abacus Alaska Inc. After CBR, now known as CBG, acquired Niblack Mining Corp. and the project’s initial phase of underground development and exploration was completed, the entities placed the property into a temporary closure status. Crews left the property in early

The Niblack Project has copper, gold, zinc and silver potential, and is in its engineering and economic planning stage this year.

www.akbizmag.com • Alaska Business Monthly • May 2012

Photo courtesy of Heatherdale Resources Ltd.

Some 235 surface core boreholes and 164 underground core boreholes were drilled on the Niblack property between 1975 and late 2011.

December 2008 and temporary closure occurred in February 2009. It was at that time when Heatherdale Resources made its debut with the project—a move viewed by industry insiders as positive and reflective of boding well for the site’s likelihood of success toward actual production, according to industry media coverage.

pasT and presenT

For locals, mining exploration and activity on Prince of Wales Island has been a constant for over a century, with the level of interest rising and falling alongside the ups and downs of the world mineral markets. For the property encompassed in the scope of the current Niblack Project, exploration and development similarly began years ago. The Niblack site itself reportedly saw its first mineral exploration activity in the late 19th century. According to Heatherdale Resources, 235 surface core boreholes and 164 underground core boreholes

were drilled on the Niblack property between 1975 and late 2011, identifying six volcanogenic massive sulphide deposits within one-fourth of the six miles of a prospective horizon that lies on the property. Of those totals, greater than 143,000 feet in 146 holes—136 underground and 10 surface—were drilled by Heatherdale since 2009 when the original Niblack Joint Venture was initially established. From a technical standpoint, the company’s work expanded both the Lookout and Trio deposits, outlining significant mineral resources that laid the foundation for engineering and scoping studies initiated last year. “The project has improved with each level of work completed and I am excited to take Niblack into the next stage of work that includes advanced engineering and economic evaluation,” CEO Smith announced earlier this year. While ramp up to actual mining is likely many years away yet; for the current year, the company announced

plans to complete the preliminary economic assessment, continue geotechnical studies and conduct additional metallurgical test work for its pre-feasibility study. Surface exploration is also on tap for 2012, including drill-test of priority targets. “Right now, as of sometime in early December, we had drilled for close to two years straight from the underground operations,” Smith tells Alaska Business Monthly. The project then took a breather from its underground drilling program as it reached a planned threshold in the project plan, essentially moving from the exploration phase to the engineering and planning phase. While the project site itself has largely been in a “care and maintenance” status since December, project staff back at headquarters focused on engineering and economic planning, according to Smith. “Our next milestone will be publication of a preliminary economic assessment, which is, in a way, a scoping study of sorts,” he says. Scheduled for

www.akbizmag.com • Alaska Business Monthly • May 2012

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publication in late spring, the report is produced and audited by a third party and will be available to the public. “That will describe more completely how many people will be at the site, the capital costs, the operating costs,” Smith says. “It will be out there for people to read.” The report will also more fully delineate and interpret the project’s potential economic impact to the region.

lOcal impacT

The flow-down from any large-scale mining operation like that of the Niblack Project comes initially in the form of supplies bought locally, accommodation and travel costs for company crews and support staff, and transportation dollars spent locally to move personnel to and from the remote site by sea and air. In the case of Niblack, the site is not currently connected to the Prince of Wales extensive network of former logging roads. Ultimately, when a project reaches production, the potential is for highly skilled mining jobs, related operations employment and mill-site work. It’s that long-term employment potential that, while still

in the speculative stage yet, prompts many residents, merchants and government leaders to speak positively of the project and its future. From a scope standpoint, Smith describes the project’s potential as in the realm of the Kensington and Greens Creek mines located elsewhere in Alaska. “It’s similar to that in order of magnitude,” he says. “We believe that it will be like Greens Creek, where they started with a 10-year mine life,” and are still mining years later. Should all the years of site work, engineering and economic planning eventually prove itself, “those jobs that come to (Niblack)—both the mine ... and the mill, which will most likely be offsite—will be long-term, highly skilled jobs,” says Smith. “There is a resolution by the Prince of Wales council and entities supporting ... a road to Niblack. So there is a push, if you will, to connect the existing road network on POW to the mining operations. It would facilitate bringing those jobs closer to the communities that need those jobs.” While the project site itself is on Prince of Wales Island, the resulting

ore would likely be shipped to an offsite location. That aspect of the production is more energy intensive and would be benefited by closer access to the hydro power provided by the intertie system connecting Ketchikan, Petersburg and Wrangell. “That would mean a lot to the operating costs of milling the ore,” Smith says. The result would be lower energy costs for mine operators and better access to communities for the labor force “People can get back and forth to work every day and raise their families in communities,” Smith says. The company is studying possible sites, including several in the Ketchikan area.

lOOkinG TO The FuTure

Smith qualifies his enthusiasm and the positive local response to the project with a reminder that his job is also to manage expectations. “There is so much positive support for this project, it’s wonderful,” he says. “But we still have to make a business out of this. It’s not a done deal. There is still a long way to go. But we’re moving it along in the right direction.” q

ALASKANS AT WORK From job creation to economic diversity, the Pebble Partnership is developing opportunities for the future of southwest Alaska. We are committed to ensuring that employment maximizes benefits to local communities and people throughout Alaska.

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www.akbizmag.com • Alaska Business Monthly • May 2012

special section OIL & GAS

Savant Alaska LLC Expanding operations at Badami Field Unit

f at first you don’t succeed, try, try again. That seems to be the case at the Badami Field on the North Slope, where for years, BP tried to recover what was originally estimated as 120 million barrels of oil from the difficult site. In 2010, however, a relatively new company to Alaska—Savant Alaska LLC—found a way to recover some of these fallow resources, and it is now using this same technology to continue in its quest to conquer the Badami sands. With working interest partner ASRC Exploration LLC, a wholly owned subsidiary of Arctic Slope Regional Corp., Savant is making inroads into what was once considered an extremely challenging site. Discovered by Conoco in 1990, the first well in the Badami pool had an initial drill stem test in excess of 4,000 barrels a day. BP acquired the field in 1994 and began production in 1998, only to find that it couldn’t meet its estimated production numbers. The company shut the field down in 2003, reopened it from 2005 to 2007, and then halted production again until entering into a farm-out arrangement with Savant Alaska and ASRC Exploration in the summer of 2008.

Farm-OuT aGreemenT

The farm-out agreement obligated Savant and ASRC to apply new technology to the Badami sands pool and to explore for new oil in the Badami Unit. “Savant and ASRC were the first to drill a high angle or horizontal sidetrack well in the field, which we completed in 2010,” said Gregory R. Vigil, president of Savant Alaska LLC. “It was the first application of this technology in the Badami Unit, and it enabled us to connect more of

the producing reservoirs in the Badami sands formation.” One of the difficulties at the Badami site is that the oil and gas available is found in a series of turbidite channels, which need to be better connected in order to allow more oil to be recovered. Utilizing one of the vertical wells drilled previously by BP, Savant and its partner were able to drill a horizontal sidetrack well to better connect discontinuous sands. Since beginning production in late 2010, the company is now producing approximately 1,200 barrels of oil per day. The next step in the evolution of the redevelopment of the Badami sands pool is to hydraulically fracture stimulate a horizontal well to further increase recovery, which the company is hoping to implement in 2013. The Middle Ellesmerian Kekiktuk formation, where Savant drilled its B1-38 Red Wolf exploration well, is a deeper and older geologic formation than the Badami sands originally developed by BP. Although Savant did not achieve its objective in the Kekiktuk formation, it did make a discovery in the Killian sands and subsequently completed the well as the first commercial Killian sands production well in the state. On Oct. 14, 2011, Savant agreed to take over as the operator of the Badami Unit from BP, with the transition completed on Jan. 7, 2012. “It was a natural progression for our company to expand our operating capabilities and focus in Alaska,” explained Vigil, “just as it was a natural progression for BP to back away from the Badami Unit as they first started to do under the farm-out arrangement.” Savant now has a 67.5 percent interest in the wells, with ASRC Exploration owning the other 32.5 percent.

Photo courtesy of Savant Alaska LLC

BY VANESSA ORR

Gregory R. Vigil, president of Savant Alaska LLC.

expansiOn plans

Savant has plans to expand their operations even further. The company is hoping to increase output by returning the 1-21 and 1-16 wells to production this year. “We currently have a rig in the field performing two work-overs on a couple of pre-existing wells to try to return them to production,” Vigil says. “We are hoping that this will boost our production rate by 40 percent or so.” Savant will be installing artificial lifts into these two wells, which were not previously completed with artificial lift mechanisms. Vigil said Savant is also moving a rig to the remote Red Wolf 2 ice pad in the Badami Unit to drill a follow-up well to the B1-38 well that was drilled in 2010. “We are drilling a second well in this structure to further test the Kekiktuk formation,” he said in March. “We are looking to drill the well in April, and

www.akbizmag.com • Alaska Business Monthly • May 2012

will ideally know what resources are available by the end of that month.” While this is not Savant’s first foray into Alaska, it is its most successful. The company originally came to Alaska in 2006 after picking up Foggy Island Bay leases. Its first exploratory well, located a few miles west of the Liberty prospect and called Kupcake 1, was drilled in 2008, but failed to uncover usable resources. Savant, which currently holds nearly 11,500 acres of state onshore and offshore leases, is headquartered in Castle Rock, Colo., and employs approximately 40 to 50 staff and contractors in its Anchorage office and on the North Slope. While not a large company, Savant is aggressive in its pursuit of oil. “We are only the fifth production operator on the North Slope of Alaska, and because we’re relatively small in relation to our peers, any positive developments that we have are very impactful to a company of our size,” Vigil says. The company is looking forward to growing its business in Alaska around the Badami Unit, where they can take advantage of the facilities and plant that they already have in operation. “We are targeting additional developments to feed our existing plant,” Vigil says. “We don’t need to develop grassroots projects because we already have existing facilities with unused capacity giving us a competitive advantage in the area.” Savant is the contract operator of the Badami Oil Sales Pipeline, a 30-mile pipeline that connects to the Endicott Pipeline and then on to the trans-Alaska oil pipeline. Savant and its working interest partner are in the process of taking over ownership of the Badami Oil Sales Pipeline from BP. As eastern North Slope and offshore federal Beaufort Sea leases are developed, this pipeline could potentially play a much larger role in meeting future developers’ infrastructure needs. Possible uses for the pipeline include transportation of liquid condensate from ExxonMobil’s gas cycling and condensate production project at Point Thomson, and any oil that may be discovered at Shell’s Camden Bay project. q www.akbizmag.com • Alaska Business Monthly • May 2012

special section OIL & GAS

COOK INLET REVITALIZATION

Cook Inlet Oil and Gas Activity 2012 State of Alaska, Department of Natural Resources, Division of Oil and Gas, March 2012

Apache Submitted nearly $9 million out of $11 million in apparent high bids in June 2011 Cook Inlet Areawide lease sale, securing 95 additional leases.

Wasilla

UPPER CHAKA TGH 67-34 LOWER CHAKA

Lewis River

CIRI CC-06C to CC-12C ( !

(! ! ( TGH 62-02

! ( ( !

Aurora AOGCC approved gas storage injection at the Nicolai Creek 2 well.

SPURR WEST 26-11

Ivan River

Pretty Creek

44-36

BRU 224-23T

Stump Lake

Anchorage

NW Cook Inlet

Tyonek

NCU 10

2 Nicolai Creek South Granite Point KLU 1 Southern Cross North Trading Bay Trading Bay

West McArthur River Cook Inlet Energy, LLC Continuing with redevelopment of West McArthur River and Redoubt units. Plan to install Miller Rig 35 on Osprey platform.

AIDEA/Buccaneer Completed deal for a 2nd jack-up rig for Cook Inlet. Plan to transport Endeavor rig to Alaska in 2012.

North Cook Inlet

Moquawkie

Knik

( !

LEA 1

Hilcorp Ivan River Gas Storage: AOGCC approved gas injection up to 20 million cubic feet per day into the depleted Beluga 71-3 sand (at depths of 6,829’ to 6,856’ md) in the IRU 44-36 well.

BRU 212-24 T

Beluga River

Lone Creek

TBU M-10 TBU M-11

Big Lake

Linc Energy (Alaska), Inc. LEA No.1 well: P&A’d on 4/28/2011. Well was a straight hole drilled to a depth of 6,323’. Tested 3 gas-bearing coal seam zones and concluded the well was non-commercial. Well encountered a significant coal seam that may be suitable for underground coal gasification.

ConocoPhillips Beluga River Unit: Spent $60 million for installation of additional compression modules.

Furie Operating Alaska, LLC KLU 1 well suspended after encountering gas shows above 8805'. Well data confidential, evaluation incomplete.

Kitchen Lights

Hope

Nordaq Energy Permitting second well plus road and development facilities on Shadura prospect based on encouraging gas shows from initial exploration well.

Birch Hill

( ! TBU M-21 SHADURA 1

South Middle Ground Beaver Shoal Creek

Nikiski

SUNRISE 2

Swanson River Buccaneer Completed and tested the Kenai Loop No. 1 well. Tested 2 zones at a rate of 10 mmcfpd. Estimate 31.5 BCF of proven reserves. Signed supply contract with Enstar to provide 5 mmcfpd starting in 2012. Delineation well Kenai Loop No.3 bottom hole location 1700’ to south encountered sands depleted by Cannery Loop Unit Production.

Salamatof Kenai Loop 1 Kenai Kenai Loop 3 CL S-1 ConocoPhillips Sterling Cannery CL S-2 Acquired 100% interest Loop CL S-3 Soldotna in Kenai LNG plant. CL S-4 Last shipment fall 2011. CL S-5 Plant is in “preservation CINGSA (Enstar) mode.” LNG export DNR issued a gas storage lease (7/1/2011) Kenai license expires in 2013. for Sterling C sands in the Cannery Loop field.

Redoubt

Cooper Landing

CINGSA has drilled 5 wells for gas storage.

Kasilof

Apache Conducting year-round 3-D seismic operations in large areas using nodal technology for offshore, transition zone, and onshore acquisition.

Clam Gulch

Ninilchik PAXTON 3

PAXTON 4 Ninilchik

Deep Creek

Buccaneer & Bluecrest Energy Acquired Pioneer’s 2 leases in the Cosmopolitan prospect that were held by certified wells.

Apache Purchased 3 tracts formerly in the Cosmopolitan Unit in June 2011 Cook Inlet Areawide lease sale.

Houston

Susitna

CIRI Drilled 13 shallow boreholes (depths ranging from 700 to 2,600 feet) to confirm a significant commercial coal resource for underground coal gasification development. Plan to shoot a high-resolution shallow seismic survey over the area.

NordAq Energy Applied for permits for a gravel road, pad, and drilling to the Tiger Eye prospect. Targets include the Tyonek and Hemlock formations.

Willow

Hilcorp Acquired Chevron’s Cook Inlet assets effective January 1, 2012. The acquisition includes Chevron and Unocal’s interest in Cook Inlet fields, 2 gas storage facilities, and 2 pipelines.

Ormat Technologies Mount Spurr Geothermal Exploration Program: Continuing with resource appraisal. 4,000 foot well drilled summer 2011 TD’d in conglomerate; formation temperature was approximately half of that needed for a viable geothermal project.

Susitna Exploration License Area 2 (Cook Inlet Energy)

Cook Inlet Energy, LLC Extended Susitna Exploration License No.2 through 10/2013. Awarded Susitna EL No.4 with 10 year term on 3/2011. Applied for Susitna EL No.5.

Hilcorp Committed to building a Nikolaevsk pipeline. Production expected in 2013.

Nikolaevsk NFU 41-35 Nikolaevsk Anchor ( NFU14-25 Point (! ! NFU 32-35 North Fork

Enstar Built a 20-mile gas pipeline connecting Anchor Point to south end of existing KKPL pipeline.

DNR: Cook Inlet Areawide Sale scheduled for May 16,2012. Interior Dept.: Cook Inlet OCS planning area tentatively scheduled for lease in 2013.

( !

Wells Drilled 2012 Wells Drilled 2011 Wells Drilled 2010 Existing Wells Approved for Gas Storage Geothermal Leases Units

Anchor Point Energy (Armstrong & WIO’s) Recompleted 1 North Fork well and drilled and completed 2 more. Constructed a 7.4 mile gas pipeline to Anchor Point. First gas 3/31/2011.

Alaska Seaward Boundary

Homer Kachemak

10 Miles

www.akbizmag.com • Alaska Business Monthly • May 2012

Map Location

New opportunities for oilfield support services BY PAULA COTTRELL

ccording to a study conducted by Petrotechnical Resources of Alaska in 2010, gas reserves in Cook Inlet are expected to be depleted by 2014 from existing wells. As the natural gas supply in Alaska dwindles, several companies have made commitments to actively explore and develop oil and gas reserves in Cook Inlet. Many of these operations are smaller independent companies envisioning a bright future for gas development in Cook Inlet, where exploration is being revitalized. “Most of the large oil and gas companies that used to drive oil and gas production in Cook Inlet have been replaced by independent companies that have the motivation and resources necessary to actively drill and explore in the Cook Inlet region,” says Rick Wilson, business manager for Ocean Marine Services Inc.

meeTinG challenGes

Most of the independent companies in Cook Inlet are operating with lower overhead and rely on contractors and support services to complete their exploration and development projects, Wilson says, and Ocean Marine Services Inc. is one such support company. OMSI is actually a family of companies: Ocean Marine Services Inc., Offshore Systems Inc., Offshore Systems Kenai, Aleutian Fuel Services and Nikiski Fuel Inc. This group of companies has been dedicated to providing terminal and marine services to oil and gas exploration and production companies throughout Alaska since 1982. “Our companies have grown and developed over the years to provide solutions for many of the challenges oil companies face when working in Alaska, whether it is OCS (outer continental shelf) or Cook Inlet,” Wilson says. Offshore Systems Kenai began operations in 1986 as a response to the growing demand for support services for oil and gas production activities in Cook Inlet, however all sectors of maritime commerce benefit from the ser-

vices provided at OSK. These services include stevedoring, light and heavy equipment, warehouse and office space, heliport and hangar, multiple outside staging and storing pads as well as diesel fuel and potable water while providing a marine railway capable of hauling vessels up to 200 feet in length. With the construction of the OSK Terminal in 1986, OMSI brought its first platform supply vessel to Cook Inlet to support offshore oil and gas production and brought its fourth, the PSV Discovery, to the inlet last year

mOTivaTinG explOraTiOn

Oil and gas production in Cook Inlet remained steady in the 1990s, but lacked any significant growth. Some felt Cook Inlet production had peaked and was on the decline. With natural gas shortages looming in the near future, Alaska oil and utility companies have had cause to reevaluate the potential of gas exploration and production in Cook Inlet. “The tax incentives are driving the revitalization of Cook Inlet,” Wilson says. “The $25 million in tax credits offered for the company who brought the first jackup rig to Cook Inlet certainly motivated many independent companies to begin exploration operations in the area.” To encourage oil and gas development in Cook Inlet, the state passed SB309 in 2010 to provide tax incentives to operators to offset the capital expenses related to oil and gas development in Cook Inlet. The map on the facing page shows Cook Inlet activity. “As a company that has witnessed a lot of changes in Cook Inlet, Ocean Marine Services is excited to be working with these new companies that are actively engaging in oil and gas exploration in a remarkably untapped area,” Wilson says. “When exploration took off on the North Slope, interest in Cook Inlet declined but that gas hasn’t gone anywhere. There are many independent companies that are aggressive enough to revitalize the industry.” q

www.akbizmag.com • Alaska Business Monthly • May 2012

special section OIL & GAS

Following North Slope Crude From the ground to the gas station

BY ZAZ HOLLANDER

Flow Station 3 is one of six Prudhoe Bay oilfield separation facilities where raw crude oil is separated from natural gas and produced water before being put into TAPS.

hink of the flow of Alaska crude oil like a tree, with North Slope pipelines as branches feeding into the 800-mile-long trunk that is the transAlaska oil pipeline. Now turn that tree upside down, so the North Slope pipelines become roots and the oil-laden tankers departing Valdez become branches. Where do those branches lead? Our refined crude may end up at gas pumps in the Northwest, California, Nevada or Arizona. It may fuel jets at airports in Seattle, Los Angeles and

Portland. It may stay right here, flowing into pickups or F-16s. It also ends up in some curious places, like that can of soda on your desk. Calcined petroleum coke, used to make aluminum, may be the most valuable product—by weight—made from Alaska North Slope crude oil. Conversely, the crude used by Alaska’s oil refiners these days may not even come from Alaska. North Slope production is declining. Alaska’s oil supply from the North Slope peaked at

2.1 million barrels per day in 1988. An average of about 609,000 barrels of oil flowed through the pipeline to Valdez each day in February. Alaska’s crude production can’t possibly account for the 3 million barrels a day of refining capacity on the West Coast, where most Alaska oil ends up. Oil companies operating on the Slope, even those refining here in Alaska, make up the difference at the refinery by purchasing crude on world markets. Petroleum products

www.akbizmag.com • Alaska Business Monthly • May 2012

being sold by Alaska producers, even within our state, may come from other countries altogether. The list is long: Canada, Iraq, the Arab Gulf, Mexico, Argentina, Ecuador, Colombia, Angola, Australia, Russia. “They either buy crude from others or use their crude from other production areas to fill up that 3 million (barrels) a day,” says Joyce Lofgren, a petroleum economist with the Alaska tax division. So even though Alaska accounts for about 11 percent of the nation’s domestic crude production, we may be driving around with gas made from a little Russian oil.

The jOurneY BeGins

The bulk of Alaska North Slope crude moves from Prudhoe Bay to Valdez via the trans-Alaska oil pipeline. The 48-inch diameter steel pipeline crosses three mountain ranges and more than 34 major rivers or streams. More than 16 billion barrels have moved through the pipeline since oil began flowing in 1977. Estimates put the total value of Alaska’s North Slope oil since 1977 at more than $103 billion.

Alyeska Pipeline Service Co. operates the pipeline for a consortium of owners: BP Pipelines (Alaska) Inc. owns nearly half; ConocoPhillips Transportation Alaska Inc. nearly 30 percent; ExxonMobil Pipeline Co. about 20 percent; and Unocal Pipeline Co. and Koch Alaska Pipeline Co. each have a small share. Four pipelines feed into the transAlaska oil pipeline at Pump Station 1 near Prudhoe Bay carrying crude from major fields, including Prudhoe Bay, Milne Point, Kuparak, Endicott, Lisburne, Northstar and Alpine. Four pump stations help move the crude south. Some of the oil that starts out in the pipeline gets taken off at North Pole, where it’s carried to two refineries by a smaller Golden Valley Electric Association pipeline.

fuel for the Golden Valley turbines at North Pole. Petro Star’s North Pole Refinery takes 22,000 barrels of crude a day. It produces kerosene, diesel, homeheating oil and jet fuel for residential, commercial, industrial and military customers. Products end up throughout northern and Interior Alaska: Anaktuvuk Pass, Wiseman, Fort Wainwright, Fort Greely, Eielson Air Force Base, Fort Knox gold mine, and the North Slope industrial market. Both refiners inject a degraded, heavier oil back into the pipeline. They pay a penalty to other shippers under a “quality bank” arrangement, says Kevin Banks, a petroleum market analyst in the state’s Division of Oil and Gas. “If you think about it, the ‘goodies’ are all sort of in the middle-weight of the oil,” Banks says. “What goes back in the pipeline is the heavy stuff and the lighter ends. It needs further refining to make into products.” Additionally, about an eighth of the oil coming down the pipeline belongs to the State of Alaska. That’s the state’s

in-sTaTe reFineries

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www.akbizmag.com • Alaska Business Monthly • May 2012

Kerosene, diesel, home heating oil and jet fuel are produced at the Petro Star North Pole Refinery, a wholly owned subsidiary of Arctic Slope Regional Corp.

royalty share of Alaska’s crude, as required by state statute.

TO TideWaTer

Once at Valdez, the oil moves to storage tanks at Alyeska’s 1,000-acre Valdez Marine Terminal except for the amount taken off by another Petro Star refinery at the pipeline’s southern terminus. Massive storage tanks at Alyeska’s Valdez terminal held an average of 4.7 million barrels of oil in the month of February, according to the state tax division. From there, crude is loaded onto tankers for shipment through Prince William Sound and beyond. Twenty vessels transited Valdez in December, according to Alyeska. BP owns four ships, ConocoPhillips five. Tesoro runs three on the West Coast, two of them rotating through Alaska. ExxonMobil also owns tankers, but the company declined to provide specifics about its Alaska operations. Alaska’s crude generally gets consumed on the West Coast, analysts say. Our oil goes to refineries in the Puget Sound area, to San Francisco Bay, and to the Los Angeles area. It occasionally

goes to Hawaii, where Tesoro operates a refinery on Oahu. One caveat: not all crude owned by North Slope producers will end up at refineries operated by that same producer. Crude traders will sometimes swap cargoes depending on the financials, says Richard Ranger, a senior policy analyst with the American Petroleum Institute.

Bp: FrOm alaska TO aluminum

According to Chuck Coulson, BP’s manager for midstream operations, BP refines “virtually” all of its Alaska crude at its two West Coast refineries: Cherry Point in Puget Sound and Carson refinery in L.A. County. BP runs a mix of Alaska North Slope crude and crude from other countries at both facilities. Cherry Point produces a mix of gasoline, jet fuel and diesel, according to spokesman Michael Abendhoff. Some propane and butane is also produced. The company sells refined product from Cherry Point in Washington state, Abendhoff says. It also runs via pipeline to Oregon, with some ending up in California.

Cherry Point supplies 20 percent of Washington state’s gasoline supply and more than half the jet fuel used at Seattle and Portland’s airports. It is also the largest supplier of calcined coke to the world’s aluminum industry. A company estimate puts the refinery’s calcined coke production at 8 percent of the world’s calcined coke market, or one sixth of its aluminum cans. Alaska crude accounts for about half the refinery’s calcined coke stock, Abendhoff says. BP’s Carson refinery supplies a quarter of L.A.’s gasoline demand, roughly 20 percent of the southern California gasoline market and half the jet fuel used at the LAX airport. A 420-watt cogeneration facility on site, half-owned by BP, powers the Southern California Edison electrical grid. BP also ships finished product—gas, diesel and jet fuel, mostly—from Carson to Arizona and Nevada.

cOnOcOphillips : nOrThWesT mOTOr Fuels

The ConocoPhillips refinery in Ferndale, Wash., currently processes primarily Alaska North Slope crude oil,

www.akbizmag.com • Alaska Business Monthly • May 2012

according to Jeff Callender, a company spokesman. At Ferndale, crude is processed into unleaded gasoline and ultra-low sulfur diesel for primary markets in Washington and Oregon. Additional products are fuel oil to power ocean-going vessels in Puget Sound and sulfur, sold mostly to fertilizer companies. Some propane also goes to local dealers who supply homeowners in more rural areas of the state, Callender says. ConocoPhillips also delivers to Shell, Tesoro and U.S. Oil refineries, he says. The refinery also receives Canadian crude via pipeline. Conoco also operates refineries in San Francisco and Los Angeles; the San Francisco facility runs some Alaska crude as well.

you all are running short on crude oil.” Analysts here, however, say Tesoro’s situation just underscores the fact that Alaska North Slope crude must compete in a world market of seagoing crude oil. Tesoro is optimizing its crude slate to keep costs down. Managers at the Nikiski refinery say the company’s use of foreign oil boils down to a combination of economics and shipping. According to refinery manager James Tangaro, since Tesoro doesn’t “own” any crude, the company purchases from a variety

of sources to make sure it can meet Alaska’s demand for refined product. With one or two ships calling at Valdez and the ever-changing spot market for crude, sometimes it’s more costeffective and timely to turn to a foreign producer, Tangaro says—Tesoro hopes recent exploration in Cook Inlet signifies a resurgence in the area’s declining production, down to 10,000 barrels a day from 250,000. “That would really be nicer for us not to have to worry about bringing ships in from Russia,” q Tangaro says.

TesOrO : lOcal reFinerY, WOrld markeT

Tesoro runs the only major gasoline refinery in Alaska. But the company isn’t a North Slope producer. Instead, Tesoro buys crude out of Valdez under contract with the producers. North Slope crude accounts for more than half of Tesoro’s crude diet at Nikiski, according to Jim Grossl, oils planning manager. The refinery was originally constructed in 1969 to run on Cook Inlet crude. These days, however, production declines mean only a small percent of Cook Inlet crude is available. The rest comes from foreign sources. Tesoro makes the majority of the gasoline used in Alaska. The refinery also produces jet fuel, diesel, propane and butane. It exports roughly 30 percent of its products, which are heavier components that can’t be refined at Nikiski: heavy vacuum gas oil, used as feed stock for other refineries; and fuel oil that’s used in bunker fuel. On the West Coast, Tesoro also operates a refinery at Anacortes, Wash., two in California and one in Hawaii. Along with shipping oil and refined product out, Tesoro also imports crude. Federal data shows the company brought a little Russian crude into Anchorage for refining at Nikiski in December, for example. Which seems unusual to a federal energy analyst: “It’s a surprise for me,” says Jonathan Cogan, with the Energy Information Administration. “I guess

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www.akbizmag.com • Alaska Business Monthly • May 2012

special section OIL & GAS

Fabricating Oilfield Modules Work awaits tax changes

Photo courtesy of Sandee Rice

BY MIKE BRADNER

Steel frame “stackable” modules bound for the Alpine oilfield being “test fit” at NANA Construction’s Big Lake Fabrication Facility in March for shipment to the North Slope in early April.

laskans have developed a new manufacturing industry that, if nurtured, could have huge benefits as large industrial projects are done in the state. It is the fabrication, or the building, of large industrial plant units. This is high-tech stuff, and Alaskan firms have shown that it can be done here. The spinoffs are great, in high-wage jobs and development of a skilled work force, and the transportation and support services needed to bring in components and materials. Engineering and design is an impor-

tant part of this, almost as important as the actual building of the units. As this industry developed, an in-state oil and gas facility engineering capability grew with it and now resides in firms like CH2M Hill, NANA/Colt Engineering and ASRC Energy Services. While most of the module work was and is done in Anchorage, the Southcentral Alaska city doesn’t get all the business. Some components for modules have been built in Fairbanks by Flowline Inc. Right now, however, things are slow for the state’s fabrication plants, and

companies in the business are worried. North Slope oil producers, who are the major customers, don’t have a lot of new oilfield projects under way. Gov. Sean Parnell and state legislators, backed by business leaders, hope to change that by adjusting the state’s oil taxes to attract new investment and get more projects rolling. There’s a bit of light at the end of the tunnel with the new CD-5 drill site planned by ConocoPhillips for the Alpine field, which is definitely proceeding, and BP as well as ConocoPhillips have identified about $5

www.akbizmag.com • Alaska Business Monthly • May 2012

billion in new projects that could proceed soon if the Legislature makes a meaningful tax change.

indusTrY hisTOrY

Alaska’s module fabrication industry began in 1989, when VECO Inc. (now CH2M Hill) began building smaller “truckable” modules in a facility in the Matanuska-Susitna Borough north of Anchorage. The activity was moved to Anchorage when VECO developed a fabrication plant there. Arctic Slope Energy, the oilfield services arm of Arctic Slope Regional Corp., got into the business too, developing its own fabrication plant in Anchorage. Other companies, such as HC Price, built modules, and Udelhoven Oilfield Services and Flowline Inc. have also built units or components for modules. These were all smaller units, which could be trucked to the North Slope and assembled on-site. An advantage for trucking is that the construction season didn’t have to be tied to the summer sealift schedule since the modules could be sent up the Dalton Highway at any time of year. Since the bulk of construction on the Slope occurs in the winter, the projects were timed to be moved north in time for winter assembly. Truckable units were, and still are, just-in-time module delivery. Still, the Holy Grail for the module builders was with the very large units that were being built out of state and moved to Alaska on summer sealifts. In 1996, BP committed to the building of the first large process modules in the state as a part of its agreement with the state on modifications of royalty for the Northstar offshore project. Previously, large oilfield project modules had been built in fabrication yards in Washington state, Califonia, Louisiana and even South Korea and taken directly by barge to the Slope. The Alaska fabricators, among them VECO, argued that their successful track record with the truckable modules demonstrated they had the capabilities to take on building larger facilities, which would be fabricated in southern Alaska and shipped to the North Slope by barge. A lt hough t he capabi l it y wa s technically there, the oil companies

worried about the small Alaska labor pool, and whether there would be enough skilled labor available, because a sca rcit y would mea n importing workers and driving up costs. Also, there were worries about whether larger modules could be loaded onto barges in Cook Inlet where there are large tidal variations. Locations near the Port of Anchorage and in Nikiski, north of Kenai, were the logical building sites, and these were both on Cook Inlet. The Alaska fabricators said they

had the skilled labor and could be competitive to workers with out-of-state fabricators. They argued that while wages for their workers were higher than in Louisiana (for example), the disadvantage would be offset by a shorter shipping distance by barge to the North Slope. Productivity of the Alaska workers was just as good as in Louisiana with the experience gained in building truckable modules. It was argued that other factors that would seem to be disadvantages for Alaska are really not so. No matter

www.akbizmag.com • Alaska Business Monthly • May 2012

where the module was put together— Alaska, Louisiana or the U.S. West Coast—components and materials would be shipped from manufacturers and suppliers all over the U.S. and overseas. As the new industry took shape, there also were hopes that large modules could be built for other industries, such as mining companies and overseas customers. Alaska firms particularly had their eye on the Russian Far East, where ExxonMobil and Shell were developing large oil and gas fields offshore Sakhalin.

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Large mining projects were of great interest. The plants for milling the ore at these mines and particularly the power generation facilities require units that could be fabricated and assembled in Alaska. In an expansion project for the Red Dog Mine in Northwest Alaska, for example, module units were built in Anchorage by VECO and moved by barge and then by road to that mine. One of the modules was part of the expanded ore processing plant for the mine, and the second was a power supply module. The facilities were built on a fast-track schedule, something VECO showed it could accomplish. A complication was that the modules not only had to be moved by barge to the Red Dog port, on the Chukchi Sea coast northwest of Kotzebue, but then transported overland for almost 60 miles to the mine itself. Despite anticipated complications, the move took place without a hitch. There are now new mines proposed near Livengood, north of Fairbanks, and at Donlin Creek on the Kuskowkim River west of Anchorage. A huge potential project is Pebble, near Lake Iliamna, southwest of Anchorage. These mines could generate a lot of business for the state’s fabricators and industrial builders.

‘Oil paTch’ cusTOmers

However, the state’s “oil patch” companies are the main customers, and not just the North Slope. Once the large module construction site in Anchorage was developed, VECO was able to land

www.akbizmag.com • Alaska Business Monthly • May 2012

a contract to build the living quarters unit for the Osprey platform, which was installed at the new Redoubt Shoal field being developed in Cook Inlet by Forest Oil (the field is now owned and operated by Cook Inlet Energy). By the late 1990s VECO wasn’t the only company building large modules. Alaska Petroleum Contractors, now ASRC Energy, developed its own large module fabrication site at Nikiski, on the Kenai Peninsula, and landed contracts to build modules for the Alpine field, which was being developed at the time by ConocoPhillips and Anadarko Petroleum Corp., minority partner in that field. APC also built components for an expansion of the refinery in Fairbanks. While no large modules have been built in the last decade there has been a continuing stream of smaller projects involving truckable modules. Pioneer Natural Resources and Eni Petroleum Co. developed two smaller fields on the Slope, the Ooguruk and Nikaitchuq fields, with much of the facility fabrication done in state. There also has been ongoing work in the large producing fields. When new drill sites are built, or existing ones expanded, there is equipment to be fabricated and installed, new wells to be tied in with flowlines and utilities, and new or expanded gravel pads and road work. This provided a steady stream of work for the Alaska companies in the business.

pOsT-cOnsTrucTiOn WOrk

Once a module is finished in its construction, it’s usually not the end of the project for the builders. Typically about 10 percent to 20 percent of people working in the plant on the fabrication go to the North Slope, or wherever the project site is, to help with the installation. VECO (now CH2M Hill) was heavily engaged in the installation work on the Slope, an example being the Northstar oilfield, as was Alaska Petroleum Contractors (now ASRC Energy) with the modules it built for the Alpine field. The engineering work associated with fabrication and North Slope facility work is substantial. As an example, there were 175 people at peak working 60 to 70 hours a week

in CH2M Hill’s petroleum engineering group during a busy period a few years ago, the company said. That was when ConocoPhillips was installing the Drill Site 1-J well pad for its West Sak viscous oil expansion a few years ago, and at the same time, work was under way on two new drill sites in the Alpine field, CD-3 and CD-4. Engineering doesn’t involve just engineers either. About 30 percent to 40 percent of people on the project are providing support in other fields, such as data management. As an example of what development of a small oilfield means for the Alaska economy, even when some of the fabrication work is done in state, BP analyzed the local “spend” of its small Badami oilfield project east of Prudhoe Bay and published the results in 1997. Of Badami’s $360 million capital cost, $230 million was spent in the state for fabrication of modules in Anchorage, transportation and installation, pipeline construction and drilling. The remaining $110 million was spent on engineering, some of it done in Alaska; specialized materials not available in Alaska; and a small portion spent in Canada for the fabrication of some modules. Despite these dollars having been spent outside Alaska, Badami remained unquestionably important for Alaska companies. VECO had about 130 people at work for a year in 1997 on the building of the Badami modules. There were similar numbers for the Miscible Injectant Expansion (MIX) and Northstar projects, which were the first projects building very large sealift modules in Alaska. Both were built at a tidelands site in Anchorage near the Port of Anchorage. The MIX module was the first large sealift module built, and because it was to be used in the Prudhoe Bay field all of the owners of that field, including ConocoPhillips and BP, signed off on the project. Part of MIX was done by Flowline. In the case of BP’s Northstar field development, with its total project cost of $450 million, the “Alaska spend” portion was about $380 million. This included the fabrication of large modules in Anchorage, civil construction at the offshore site, installation of the

modules on arrival, a 6-mile subsea pipeline to shore, and other expenses. According to 1998 reports published by BP, about $40 million of Northstar expenses were related to purchases of specialized materials not available in Alaska, and another $30 million was spent on engineering and the fabrication in the Lower 48 of special equipment and vessels for the modules that could not be produced in the state.

WOrk aWaiTs Tax chanGes

At this time, work is very slow. One project being planned that will provide some work, the new CD-5 drill site for the Alpine oilfield, was delayed for several years because of a permit dispute over a bridge across the Colville River. That is now resolved and the companies are proceeding with plans for construction. Engineering will be under way for CD-5 later this year and construction will begin in 2013. The field is scheduled to begin production in late 2015, producing between 10,000 barrels per day and 18,000 barrels per day. The $5 billion in new projects identified by BP and ConocoPhillips, beyond the CD-5 drill site, are of great interest, although the Legislature must make tax changes. These include a new drill site and gas processing plant on the west end of the Prudhoe field, and an expansion of the West Sak viscous oil project in the Kuparuk field. In the late 1990s, the sight of those large “sealift” modules rising down by Anchorage’s port was almost inspirational, a highly visible symbol of the importance of the petroleum industry in the state, and the potency of this new, high-tech modulebuilding industry. It was important for younger Alaskans who could, for the first time, actually see their future in those large structures, something tangible being built by Alaska firms, using Alaskan workers and with much of the engineering done in state. It gave “Made in Alaska” a whole new meaning. q Mike Bradner is publisher of the Alaska Legislative Digest.

www.akbizmag.com • Alaska Business Monthly • May 2012

special section OIL & GAS

Driller Gregory Coyne on Nabors Rig 9ES for Repsol.

North Slope Oil Industry Employment McDowell Group releases employment study BY RINDI WHITE

orth Slope employment is on the rise, with more people working in the northern Alaska oil and gas fields in 2011 than ever before. The rise in employment comes despite a decline in production—fewer and fewer barrels of oil are being produced each year. According to Juneau-based research firm McDowell Group, at the peak of production in 1994, more than 200,000 barrels of oil were produced per employee each year. In 2010, about 28,000 barrels were produced per employee, McDowell reported.

mOre jOBs, less Oil

One reason for more employees despite fewer barrels of oil: more attention being paid to maintaining

key findings of the mcDowell group north slope employment study ■ North Slope oil industry employment climbed to an all-time high in 2011, reaching 9,000 jobs late in the year. ■ Slope employment has more than doubled in the past decade; 5,000 jobs have been added since 2000. ■ New development activity, projects aimed at recovering more from mature fields, repairs and maintenance on aging Prudhoe Bay infrastructure, are driving job growth. ■ Reported North Slope-related spending totaled $4.9 billion in fiscal 2011, marking the fourth consecutive year of spending growth. ■ About 35 percent of Slope oil and gas workers are nonresidents. That number has remained steady over the past several years. ■ A spike in nonresident hire was seen in the third quarter of 2010, jumping to 56 percent of all new hires. ■ 2010 saw an annual uptick in nonresident new hires to 44 percent, the highest annual rate in the past seven years. ■ Nonresidents more often fill short-term, seasonal jobs. ■ North Slope oil and gas employment averaged about 12,750 jobs in 2010. ■ Anchorage is home to the largest number of oil and gas industry workers; 4,055 workers reported living there in 2009. Wasilla was second, with 1,531 workers. Soldotna, Kenai, Fairbanks, Palmer, Eagle River, Sterling, Nikiski and Chugiak rounded out the top 10.

www.akbizmag.com • Alaska Business Monthly • May 2012

and improving aging infrastructure. McDowell reported that ConocoPhillips listed its annual maintenance spending as $800 million more per year than the company spent five years ago, while development spending remained level. Efforts to increase oil recovery from mature fields and new development activity also play a part in the recent employment growth, McDowell reported. The Alaska Senate Finance Committee hired McDowell Group in September 2011 to take a closer look at conflicting reports of change in the oil industry. Despite indications there were fewer jobs on the Slope following a change in the oil tax structure in 2008, Alaska Department of Labor reports in 2010 reflected a growing pool of employees. Also, the number of nonresident employees seemed to be on the rise, leaving some in the Senate wondering if Alaska could do more to encourage local hire. While debating Gov. Sean Parnell’s oil tax reduction proposal, House Bill 110, last fall, the committee requested the study to gather more information about Slope employment. The committee paid McDowell $175,000 to conduct the study.

When asked if there was a link between employment levels and the amount of state tax oilfield producers are being required to pay, Calvin said his company steered clear of the matter. “We didn’t investigate tax issues at all,” Calvin told the senators. During Calvin’s presentation and in a press release following the presentation, Senators Joe Paskvan of Fairbanks, and Cathy Giessel of Anchorage said they believe high taxes and low production are inextricably linked. “The argument that all is well on

the North Slope, based on employment numbers, is specious,” Giessel said in a press statement. “Production is what brings wealth to state government. Production is declining by 7 to 8 percent per year. Our focus must be on increasing production. Increased production brings with it more job opportunities for Alaskans, in good-paying jobs.”

nOnresidenT WOrkers

McDowell was also asked to look into whether more North Slope jobs are going to nonresidents. Between one-

FlucTuaTinG emplOYmenT

Jim Calvin, managing principal at McDowell, spoke before the Senate Finance Committee in late January, when the study came out. Calvin said there was reason for the conflicting employment reports. “The last four or five years have been a very interesting few years,” Calvin said. “We’ve gone through a couple of roller-coaster rides.” Calvin said McDowell’s data showed 2009-2010 was a shaky time for Slope employers. Employment peaked in 2008 and, over the next several months, the industry lost about 1,700 jobs, or about 14 percent of the work force. Calvin said the job losses appeared to be directly linked to the global recession and a drop in the market price of North Slope crude oil. But at about the same pace as the 1,700 jobs were cut in 2009, 1,400 more were added in 2010. “It’s not surprising that there was some uncertainty about what was going on up there in terms of employment,” Calvin said. www.akbizmag.com • Alaska Business Monthly • May 2012

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quarter and one-third of the statewide oil and gas industry jobs are held by nonresidents, the report showed. On the North Slope the number is slightly higher, about 35 percent. But the data isn’t definitive. Residency information is taken from Alaska Permanent Fund Dividend applications. And about one in six oil and gas industry workers who are classified as nonresidents were residents at some point in the previous five years — 17 percent of industry workers now reporting they live outside Alaska were, at one point, Alaska residents. “If we were to go back 10 years … we’d see even more,” Calvin said. Rebecca Logan, general manager of the Alaska Support Industry Alliance, a nonprofit trade association that provides support to businesses working in the oil, gas and mining industries, said Alliance members are seeing this shift among their employees. An employer with 50 employees, for example, reported having seven long-time employees who are nearing retirement, have moved out of state, and are commuting to work from their future retirement homes. Compared with other Alaska business sectors, the number of nonresident workers is not unusual. About 75 percent of workers in the seafood industry in 2009 were nonresidents, Calvin said. Forty-one percent of workers in the accommodations sector were nonresidents. Oilfield services hired about 30 percent nonresidents, and 28 percent of those working in the metal mining sector were nonresidents. Calvin said the number of nonresident hires in the oil and gas industry has stayed pretty level over time—except for the spike to 56 percent of new hires in the third quarter of 2010, which led to an overall uptick in nonresident new hires that year. “What we see in the data is that when the industry is growing at a rapid pace, that’s when we see the greatest number of nonresidents,” he said. So, in times of rapid growth or when there are several short-term projects being completed, companies rely on whomever they can to get the job done. Between January and August 2010, the industry added 1,400 jobs. “Given Alaska’s relatively limited labor capacity, especially labor with the

www.akbizmag.com • Alaska Business Monthly • May 2012

specialized skills often required in the oil and gas industry, it is reasonable to expect a rapid run-up in employment would go hand-in-hand with a spike in nonresident hiring,” the study states. The study showed previous spikes in nonresident hire typically level out.

Brain drain

McDowell reported the majority of North Slope oil and gas industry jobs are held by Alaska residents. But some positions have a higher percentage of nonresident workers than others. The occupational breakdown was not available for all oil and gas industry jobs, only for those reported within the North Slope Borough. Among those, McDowell reported 46 percent of first-line supervisors or managers of construction trades and extraction workers were nonresidents. Forty-five percent of workers in the welders, cutters, solderers and brazers category were nonresident, 44 percent of construction managers were nonresident, and 43 percent of electricians were nonresident. Meanwhile, 10 percent of the maids and housekeeping cleaners were reported as nonresidents, as well as 12 percent of food preparation and servingrelated workers, 13 percent of cooks, and 18 percent of construction laborers. The McDowell report states that companies reported Alaska candidates had trouble passing basic hiring requirements: being a high-school graduate or, in some cases, GED holder; passing a criminal background check; and passing a physical fitness assessment and drug test. “Several companies reported failure rates for these criteria can be substantial, sometimes as high as 25 to 30 percent of the post-offer, pre-hire candidate pool,” the report states. Logan said Alliance members are reporting a different problem. “The guys … are saying we’re having a brain drain. Because we’re not producing, were losing the engineers (and other top-level employees). They’re the ones going to new fields, to North Dakota,” she said. The McDowell report briefly mentioned that companies reported having issues with employees leaving to work at other companies within the industry, both in Alaska and in the Lower

48. North Dakota, which was ranked fourth nationally in terms of crude oil production among oil producing states in 2010, was one state often mentioned. According to McDowell, employment in North Dakota’s petroleum industry has risen from about 5,000 jobs in 2005 to 18,000 jobs in 2009. Texas, where technological advances are allowing companies to tap into previously untapped oil stores, is also seeing a rise in jobs, as is Alberta, Canada. Some Alaska companies have developed strategies to encourage Alaska

hire, but Logan and others in the industry say without incentives for future development, Alaska’s oil and gas industry will stagnate. They’re hoping Legislators will restructure oil taxes to provide incentives for new production. “(The senators debating the oil tax issue) recognize the producers that are here aren’t investing in new production. New companies aren’t going to come here and explore and produce,” Logan said. “Of course, people have different ideas on how we’re going to address q those issues.”

www.akbizmag.com • Alaska Business Monthly • May 2012

special section OIL & GAS

Alaska’s Natural Gas Problem Dealing with project economics BY LARRY PERSILY

atural gas burns the same pretty much the world over: about 1 million Btu per 1,000 cubic feet into your home. If the mixture is too rich, your stove will blow up. If it’s too lean, your tofu won’t brown as nicely. No one really cares all that much where the gas comes from as long as it’s there when they turn on the burner. Unlike salmon, where we can charge a premium price for our product, Alaska’s natural gas smells and cooks the same as Russian gas, or Qatari gas, or Australian gas—or U.S. shale gas. That leaves Alaska with a problem. We have gobs of a commodity the world is using more and more of every day. But our North Slope gas is far away from potential customers, and costs more to move to market than our competitors’ gas. I’m talking total cost from the wellhead to the burner tip, not just the shipboard expense for delivering liquefied natural gas across the ocean to Japan or a pipeline to Canada. That cost is what has kept Alaska’s gas from leaving the North Slope for almost 40 years. We would have lost money on every molecule of gas we moved to the Lower 48 or overseas most years during the past decades. Market prices were too low to cover the costs—forget about any profit and taxes. Our pipeline dream has hit the brick wall of economic reality for years. In fact, Alaskans have been waiting for a North Slope gas pipeline a decade longer than the average resident has been alive. Actually, that’s OK. The gas has been reinjected to pressure billions of extra barrels of the make-us-wealthy oil out of the ground. That repressurization has been extremely valuable to Alaskans— feeding rich public works spending, the

Larry Persily speaking to the Alaska Municipal League in November 2010.

Permanent Fund and state budget surpluses of the past decade.

Time TO GeT seriOus

But now it’s time to get serious about channeling some of that gas into a pipeline to ship to customers—somewhere, anywhere. The older North Slope fields are producing much more water and gas than oil as they age; the equipment to process and reinject all that gas is maxed out; and we’d be a more attractive investment opportunity for oil and gas companies if they could sell their gas with the oil. The pluses of trillions of cubic feet of natural gas flowing to market will far outweigh the minuses from declining oil production in the decades ahead.

The attraction of a gas line is especially big for Shell. Spending perhaps tens of billions of dollars to develop offshore fields would look a lot better if the natural gas could someday turn a profit, too. I assert it is time Alaska joined the global gas business. According to a recent study by the University of Alaska Anchorage Institute of Social and Economic Research, half of all jobs in the state are due to the oil and gas industry, either directly or through state outlays financed by royalties and taxes. But North Slope oil production today is running at less than one-third its 1988 peak, and the volume is heading lower. Despite good intentions, there

www.akbizmag.com • Alaska Business Monthly • May 2012

is no evidence to prove the trend will soon reverse itself. Rising oil prices (and higher taxes) have protected the state from the economic pain of this production decline. Adding natural gas to the mix would help diversify our revenue portfolio just when we might need it most. But who wants our gas? No, forget that. It doesn’t matter who wants it, just as it doesn’t matter that I want a new car but am unwilling to sign a lease or a loan. More to the point, who is willing to sign binding, take-or-pay, long-term contracts to buy our gas. Such contracts are required before anyone will loan money for the project. A developer may build a duplex on speculation, without having the units presold, but no one will loan you money to build the most expensive energy project in North American history unless you have paying customers under contract.

prOjecT FinancinG

Cheniere Energy’s proposed LNG export plant at Sabine Pass, La., is a good example of that rule of project financing. Cheniere is looking to salvage its seriously underused LNG import terminal at Sabine Pass by adding a liquefaction operation for exports. But to secure the billions of dollars required to build the plant, it needed customers. Cheniere has succeeded where Alaska dreams to someday go. It has 20-year contracts from four buyers for capacity at its proposed terminal. The buyers, from the U.K., Spain, India and South Korea, have pledged to pay for their contracted capacity regardless of whether they use it. Those deals total more than $40 billion in binding commitments to pay at rates roughly between $2.25 and $3 per thousand cubic feet. (There also is an inflation factor built into the contract rate.) That means day in and day out, month in and month out, the buyers will pay Cheniere’s invoice, regardless whether they run any gas through the plant. With these binding commitments, Cheniere can raise money for construction of the plant to handle more than 2 billion cubic feet of gas a day. Sabine Pass LNG can be landed in Japan for an estimated $9 per thousand www.akbizmag.com • Alaska Business Monthly • May 2012

cubic feet total cost if the gas itself can be obtained for about $3 per mcf. The price components are Henry Hub gas prices plus 15 percent to cover gas consumed during liquefaction, $2.25 to $3 for liquefaction and terminal fees, and less than $3 for shipment aboard LNG tankers.

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The Sabine Pass story reflects how the sober laws of finance apply to big gas projects, whether you want to send the molecules to Asia or the Lower 48. Companies—even rich oil companies— select the best opportunities for the limited capital dollars they have to invest. The best opportunities for gas projects will involve customers on binding contracts signed after they have shopped the world for the cheapest price. Alaskans can’t wish these laws away. The argument in Alaska shouldn’t be whether it’s our gas, or what the state Constitution says about maximizing development of our resources for the people; or why North Slope producers don’t do what we want, when we want and how we want; or whether Canada will steal or tax our gas; or whether it should be a big line, a small line, a bee line to the coast, a straight line to Fairbanks—or, worse yet, a pandering line in a campaign speech. Those arguments assume Alaskans can dictate what gets built and when, which is possible only if we are willing to pay the bill for a potentially moneylosing project without customers. The discussion should be how much do the state and its residents need and want a gas line, and what are we willing to do to get someone else to write the checks and take the risk so that we can share in the rewards? First, Alaskans need to accept that we need a gas line. I mean really need it for the decades of affordable fuel it will carry to Alaskans. That would be natural gas for Railbelt communities, and hopefully propane and compressed or liquefied natural gas for everyone else. Yes, the fuel in a big pipeline project would be affordable. Alaska would benefit from existing federal and state laws that require what are called mileage-based tariffs. Alaska customers would pay the

pipeline costs only for the miles they use and their share of the gas flow. Other customers would pay 95 percent, maybe 98 percent of the construction, borrowing, operating and maintenance costs of a large-volume pipe running through Alaska to serve out-of-state markets, whether East Asia or the east side of Milwaukee. Second, Alaskans need a gas line for the jobs and tens of billions of dollars in investment it would bring—for the additional barrels of oil that would accompany new exploration and production to keep the gas line in business for decades, especially for all that oil. Alaska is a much more attractive investment play if gas is part of the longterm cash flow for new fields. Third, after all those good things, Alaska needs the project for tax and royalty dollars, too. No, not nearly as much as oil taxes and royalties, but whatever comes in would be a bonus to the benefits of gas for local needs, jobs, investment, and extending the trans-Alaska oil pipeline’s life. Fourth, Alaskans need to accept that natural gas is a commodity, just like corn, soybeans and frozen orange juice. Buyers want the cheapest supply they can find. And they will bargain hard to get it, especially when the market is oversupplied and there is a lot of competition among sellers.

BesT advice

The best advice I can give is for Alaskans to just deal with it. Not my line, I stole it. Some Navy SEALS visited the Arizona Diamondbacks’ spring training camp last year to help prepare the team for the losses, injuries and problems that inevitably occur during the six-month baseball season. The SEALS told the players to deal with it, just as the Navy teaches the commandos to deal with whatever comes up. Deal with the reality that we’re not going to get a Nordstrom price in a WalMart world for natural gas. Deal with the fact that our natural gas isn’t worth as much as we thought it might be. Deal with the fact that the market is flooded with competition. Deal with the fact that Alaska will not get stinkin’ rich off gas as it did oil,

www.akbizmag.com • Alaska Business Monthly • May 2012

but we could live a comfortable, warm life with natural gas. What can the state do to help convince large, multinational players to commit tens of billions of dollars to an Alaska gas pipeline? To convince buyers to sign contracts? First, accept the fact that while the Gov. Frank Murkowski administration and the 2004-2006 Stranded Gas Development Act negotiations made “fiscal certainty” a dirty word in Alaska politics, a gas line project still needs fiscal stability. A producer needs stability to negotiate its price in a long-term supply deal.

with deferred payments. This might help keep the pipeline tariff affordable for shippers. This, of course, is not a complete list of what could help move the gas line project along, but is instead a composite of suggestions for Alaskans to consider if they want to see a gas line built with private dollars; a gas line that would benefit the state; a gas line that faces tough competition for investment dollars and gas sales contracts. We can deal with it, or we can just complain. q

About the Author Larry Persily is Federal Coordinator for Alaska Natural Gas Transportation Projects. Persily, who was appointed by President Barack Obama in December 2009, served almost 10 years with the Alaska Department of Revenue, governor's office and as a legislative aide on oil and gas issues before taking a turn at federal service. He previously worked as a newspaper reporter, editor and owner in Alaska for almost 25 years.

prOjecT ecOnOmics

The state could help the project economics several other ways. An equity investment from the state could help. It would reduce the producers’ risk and could turn a profit for the state. On the negative side, however, it would put the state on the hook for its share of any cost overruns and put the state in the position of regulating something it also owns. The state also could help by looking at its property taxes. Under Alaska law, levying property taxes on the steel pipe, project material and equipment would start the year the stuff lands on Alaska soil. The state and municipal property tax bill on a large-volume project could total $1 billion (2010 dollars) during construction, before a single molecule of gas moves down the pipe. Not great for developers’ cash flow. Maybe there is a better answer, one that also would resolve, in advance, the annual tax assessment battles that likely would ensue for the gas line just as they have endured for years on the oil line. The state could look at making shipping commitments for its royalty share of gas, in effect signing its own long-term contract to use the line, thereby lessening the producers’ risk on the project. And the state could look at helping finance construction cost overruns. Not pay the bills, but help with the financing if project finances are tight. The state could hold off collecting on its loan until the other project debt is paid off. Sort of like a second mortgage, www.akbizmag.com • Alaska Business Monthly • May 2012

special section OIL & GAS

Avoiding Intergenerational Inequity COMMENTARY BY DAVE HARBOUR Any opinions expressed herein are the author’s own.

nly the most villainous among us would advocate stealing from children. Yet if we are not careful, our national and local public policies will make debtors of our children to enrich this generation of adults. As a former public utility and pipeline regulator, I always sought to avoid a situation in which government authorized one generation to enjoy services paid for by a future generation’s ratepayers. In the regulatory world, one seeks to avoid “intergenerational inequity.” It’s a lot like “taxation without representation.” Carried to its logical extreme, if the current generation of voters benefits at the expense of the next generation, and that generation does the same to its young successors, and so on—then the economy becomes increasingly unsustainable. Civilization eventually breaks down. All of the hope and promise is drained from the future, leaving children with only a mailbox full of debts to pay on behalf of their greedy folks. The practice of intergenerational inequity eventually conquered Rome. Two years ago our family viewed the ruins of a great civilization while standing on long-abandoned Roman stone highways in Roman-occupied Jordan. Like us, Roman citizens probably thought, “This will never end.” But end that civilization did. Its international conquests and social programs were money pits. Its tax policies evolved into progressive, anti-free enterprise policies. The Empire tried to manipulate its way out of its own imprudence. It debased the value of its currency by melting alloys into gold and silver coins. It created a head tax, a property tax and a tax on production to “increase revenue.” Then, as desperation grew, Diocletian killed Christians as a revenue sport and when the economy continued its death spiral, he ordered a price freeze, which forced productive businesses out of business, further decreasing tax revenue. To buy support of citizens, Rome established welfare programs: purchasing citizen loyalty to politicians by giving free amphitheater tickets, free bread and olive oil, and subsidizing the prices of basic foods. Rome even instituted a form of progressive taxation, which removed incentives for profitability and productivity. The effort to please the older generation at the younger generation’s expense would result in a pillaging of Rome in the early 5th century—followed by the Empire’s relocation to Constantinople. We can find other examples of intergenerational inequity throughout history, in the Weimar Republic, when nine decades

ago following World War I, leaders destroyed the currency through inflation, as also occurred until recently in Zimbabwe. By March this year, the gross debt of America had exceeded $15.5 trillion. Our annual gross domestic product through 2011 was a little over $15 trillion. All experts believe this to be an unsustainable path. “Unsustainable” means the current generation is buying things on credit, charging them to our children’s account. “Unsustainable” also means that without a course correction, the country will fall. That is the lesson of history and the legacy this generation is preparing to give our children. America and Alaska respectively are now embarked on unsustainable economic paths designed to curry support from this generation of adult voters at the expense of our too-young-to-vote children, as follows.

unsusTainaBle naTiOnal pOlicies

Domestic energy production has been the keystone of American productivity for over 100 years. It fueled America’s industrial revolution: creation of auto, rail and air transport; electrification of America; growth of the world’s greatest manufacturing economy; economic independence; fossil fuel-enabled farm mechanization; and an awesome national defense capability. The current generation of national leaders has dramatically increased spending and has done everything possible to diminish domestic energy production and thus destroy the economy of America:

presidenT OBama and his aGenda-driven, envirOnmenTal-acTivisT execuTives have:

1. Cancelled a Virginia lease sale scheduled for 2011 that could have created 2,000 jobs, 750 million barrels of oil, and 6.65 trillion cubic feet of natural gas, along with hundreds of billions of dollars in related manufacturing, tax, royalty and service company income. 2. Produced a 2012-2017 offshore leasing plan banning energy exploration off the entire Pacific Coast, the entire Atlantic Coast, the Eastern Gulf and large parts of Alaska. This followed the Obama administration’s action on the 2007-2012 leasing program that presented no new opportunities for exploration, only actions to cancel programs, conduct more studies and deny access by rejecting permit applications. 3. Issued draft Environmental Protection Agency regulations that, in the words of Senator Lisa Murkowski, would “outlaw

www.akbizmag.com • Alaska Business Monthly • May 2012

Photo by Dave Harbour

coal... The administration is using this new rule to accomplish what Congress refused to impose on the economy when it rejected cap-andtrade legislation. The result will be higher electricity prices and less reliable generation in addition to the Lisa Murkowski high gasoline prices Americans are already struggling to afford.” 4. Acted to decrease fossil fuel production on federal lands to a nine year low in sharp contrast to North Dakota’s actions, which increased production in 2011 by 55 percent. In fact, federal onshore oil production fell by 14 percent from 2010 to 2011. 5. Sought to increase regulatory and financial roadblocks to stop developments that would provide hundreds of thousands of direct and indirect jobs and hundreds of billions of dollars, or more, in new economic stimulus, including: a. Creation in 2009 of an unbudgeted, non-Congressionally approved White House Ocean Policy Task Force. Its mission is to essentially “zone the oceans” and put various human activities off limits not only in offshore ocean areas but in onshore areas upstream of the oceans. The policy is scheduled to be executed before this summer. b. Constant delays by the EPA to reasonable exploration of federally authorized leased areas in the Chukchi and Beaufort seas, costing lessees billions of dollars in delay and lost opportunity. c. Constant delays by the EPA to development of federally issued leases in the National Petroleum ReserveAlaska, costing the lessees hundreds of millions of dollars in delay and lost opportunity. d. Designation by the U.S. Fish and Wildlife Service of 187,166 square miles in Alaska as a critical habitat for polar bears, an action Alaska and the Arctic Slope Regional Corp. believe will cost Alaskans hundreds of millions of dollars in economic potential. This non-science based political act by USFWS was taken at a time when polar bear populations are stable, if not increasing, and when the government author of a “polar bear study” has been disgraced for misrepresenting a bogus global warming threat to the animal. The USFWS has also taken steps to make 2,000 production acres within the coastal plain 1002 Area of the 19-million-acre Alaska National Wildlife Refuge off limits—even though Congress designated it for energy production. These are but a few of many examples (i.e., we could go on and on about TransCanada’s Keystone Pipeline, beluga whale habitat, Steller sea lion restrictions, etc.) of how the current administration has sought to use governmental power to support an anti-job, anti-growth agenda at the expense of the economy we are about to hand over to a new generation. It is arbitrary and capricious misuse of power that undermines citizens’ rights to due process and can only diminish our confidence in the rule of law.

The federal government must dramatically reduce spending, and natural resource policies must reverse direction quickly, in order to assure that children in Alaska and throughout the country have a fighting chance for economic opportunity as they come of age.

unsusTainaBle alaska pOlicies

Domestic energy production and natural resource development provided the very foundation of Alaska’s Constitution and the rationale for Congress’ creation of the Alaska state. Over a third of Alaska’s economy and almost 90 percent of state government operating revenue depend on oil produced on state lands. Instead of supporting the investors and industries that produce this wealth, the majority of Alaska’s elected leaders seem to be demonizing, overtaxing and overregulating them while continuing to dramatically increase state spending and avoid paying current liabilities such as the nearly $16 billion state retirement system deficit. While all studies show Alaska to be competing at a tax/royalty disadvantage with other oil-producing areas, they understate our lack of competitiveness. Our major oil and gas producing area on Alaska’s North Slope is not climatically competitive, not logistically competitive, not material and labor cost competitive, and is unfriendly to investors. Those factors add hugely to the cost and risk of investment. While studies do not adequately weigh those factors, Alaska’s elected leaders should work to fashion an investment climate that will care as much for the next generation as for this one. And, they should put at least as much scrutiny into reducing spending as they do into increasing taxes. As Alaska’s spending increases, oil production is declining while other competing areas are increasing production. Without a significant spending decrease and a change of direction affecting oil investment on state lands, many of our children will be moving to competing areas. Some already have. The threat of intergenerational inequity is ominous and comes from two directions: Washington and Juneau. Our challenge is, therefore, awesome: taking policy steps both in the 49th state and nationally that will give the next generation the same opportunities to succeed that we have enjoyed. The alternative is unthinkable. q About the Author Dave Harbour is publisher of Northern Gas Pipelines (northerngaspipelines.com). A former Chairman of the Alaska Council on Economic Education, the Anchorage Chamber of Commerce and President of the Alaska Press Club, Harbour is a retired member of the Regulatory Commission of Alaska and Commissioner Emeritus of the National Association of Regulatory Utility Commissioners.

www.akbizmag.com • Alaska Business Monthly • May 2012

Alaska business monthly’s 2012 oil & gAs DirectorY EXPLORATION & PRODUCTION COMPANIES Company

Top Executive Top Executive

Anadarko Petroleum Co. 3201 C St., Ste. 603 Anchorage, AK 99503 Phone: 907-273-6300 Fax: 907-563-9479

James Hackett, Pres./CEO

Apache Corporation 510 L Street, Suite 310 Anchorage, AK 99501 Phone: 907.272.2722 Fax: NA

John Hendrix, General Manager

Aurora Gas LLC 1400 W. Benson Blvd. Anchorage, AK 99503 Phone: 907-277-1003 Fax: 907-277-1006

Ed Jones, President

Aurora Power Resources Inc. 1400 W. Benson Blvd. Anchorage, AK 99503 Phone: 907-277-1003 Fax: 907-277-1006

Scott Pfoff, President

BP Exploration (Alaska) Inc. PO Box 196612 Anchorage, AK 99515-6612 Phone: 907-561-5111 Fax: 907-564-4124

John MingŽ, President

Buccaneer Energy 952 Echo Lane, Ste. 420 Houston, TX 77024 Phone: 713-468-1678 Fax: 713-468-3717

Curtis Burton, CEO

Chevron 1029 West 3rd, Ste. 150 Anchorage, AK 99501 Phone: 907-276-7600 Fax: 907-263-7607

John Zager, Gen. Mgr.

ConocoPhillips Alaska Inc. PO Box 100360 Anchorage, AK 99510 Phone: 907-276-1215

Trond-Erik Johansen, Pres.

Eni Petroleum 3800 Centerpoint Dr., Ste. 300 Anchorage, AK 99503 Phone: 907-865-3300

David Moles, AK Rep. & Develop. Mgr.

ExxonMobil Production Co. PO Box 196601 Anchorage, AK 99519 Phone: 907-561-5331 Fax: 907-564-3789

Dale Pittman, AK Production Mgr.

Great Bear Petroleum LLC 601 W. 5th Ave., Ste. 505 Anchorage, AK 99501 Phone: 907-868-8070 Fax: 907-868-3887

Ed Duncan, Pres./COO

Linc Energy 3000 C St., Ste. 103 Anchorage, AK 99503 Phone: 907-868-8660 Fax: 907-868-8881

Corri Feige, Project Manager

Marathon Alaska Production LLC PO Box 196168 Anchorage, AK 99519 Phone: 907-561-5311 Fax: 907-565-3076

Wade Hutchings, AK Asset Team Mgr.

NordAq Energy Inc. 3000 A St., Ste. 410 Anchorage, AK 99503 Phone: 907-646-9315 Fax: 907-646-9317

Bob Warthen, President

Parker Drilling 1420 E. Tudor Rd. Anchorage, AK 99507 Phone: 907-339-4032 Fax: 907-339-4001

Richad Bohon, General Manager

Pioneer Natural Resources Alaska Inc. 700 G St. Anchorage, AK 99501 Phone: 907-277-2700 Fax: 907-343-2193

Todd Abbott, President

AK Estab. Empls. AK Estab. Empls.

Business Activity Business Activity

1959

Oil and gas exploration and development.

1954

Oil and gas exploration and development

1999

Oil and gas exploration and production.

1994

Natural Gas Marketing, Exploration & Production, Drilling & Well Services in Cook Inlet area. Camp facilities on the west side of Cook Inlet.

julianne.oxford@anadarko.com anadarko.com

lisa.parker@apachecorp.com www.apachecorp.com

jejones@aurorapower.com www.aurorapower.com

gspfoff@aurorapower.com aurorapower.com 1959

alaska.bp.com

2,100 BP operates 15 North Slope oil fields, four North Slope pipelines, and owns a significant interest in six other producing fields.

2006

Oil and gas exploration and production.

1879

Oil and gas exploration and production. Presence in Cook Inlet since 1957.

info@buccaneerresources.com www.buccaneerresources.com

www.chevron.com 1952

1,100 Largest producer of oil and gas in Alaska, with major operations on Alaska's North Slope and in Cook Inlet.

1926

Eni is an integrated energy company. Active in 77 countries, with a staff of 78,400 employees, it operates in oil and gas exploration, production, transportation, transformation and marketing, in petrochemicals, oilfield services construction and engineering.

COPAlaskaInfo@ConocoPhillips.com www.conocophillips.com

www.eni.com 1978

Oil and gas exploration and production.

2010

Focused on the exploration, sustainable development and production of unconventional resources on the North Slope of Alaska, with a particular focus on shale-based oil. Great Bear also intends to exploit the shale-based natural gas on its leases as well as conventional prospects as they arise.

2009

Oil and gas exploration and production, Underground Coal Gasification (UCG), Gas to Liquids (GTL), Enhanced Oil Recovery (EOR).

1955

Marathon ranks as one of the largest natural gas producers in Southcentral Alaska along the Kenai Peninsula.

2009

100

Natural gas exploration, Cook Inlet Basin - permitting phase. Construction to occur 2012. Production to follow in 2013. The Shadura find on north end of Kenai Peninsula expected to last 30 years. Offices in Anchorage and Kenai. www.nordaqenergy.com

www.exxonmobil.com

www.greatbearpetro.com

linc@lincenergy.com www.lincenergy.com

marathon.com

jovonna@nordaqenergy.com www.nordaqenergy.com 1934

Contract drilling, drilling and production rental tools, advanced rig design, engineering, rig construction, extended-reach drilling, drilling in environmentally sensitive and harsh/ remote climates, training and HSE programs.

www.parkerdrilling.com

ir@pxd.com www.pxd.com

2003

Pioneer is an independent oil and gas exploration and production company headquartered in Dallas, Texas. In Alaska, Pioneer operates the Oooguruk Unit on the North Slope and the Cosmopolitan Unit in Cook Inlet.

www.akbizmag.com • Alaska Business Monthly • May 2012

BUSINESS

PROFILE

Offshore Systems, Inc. (OSI) ffshore Systems, Inc. (OSI) was founded in 1982 to support oil exploration activities in the Bering Sea and Chukchi Sea. OSI served as the support terminal, providing warehouse, storage, stevedoring services and fuel to the oil companies and their service providers exploring the Outer Continental Shelf (OCS). In the mid to late 1980s, oil exploration activity in the OCS tapered off and OSI shifted its focus to supporting the North Pacific and Bering Sea fishing fleet. OSI offers dry warehousing, cold storage, dock and fuel capacity to a growing list of customers as Dutch Harbor thrives as one of the most productive fishing ports in the world. Oil Exploration in the Arctic Due to its status as the closest ice-free, deep-water port to the Arctic, OSI is at the forefront of maritime support options for exploratory activities in the OCS. With the recent revitalization of interest in Arctic exploration, OSI has been ramping up its oilfield support services by providing terminal and logistical support services to the energy companies targeting oil and gas opportunities in the Chukchi and Beaufort seas. The OSI facility is the largest private terminal in Dutch Harbor/Unalaska with 1,500’ of dock space, 5 docks, 120,000 square feet of warehouse storage, 20 acres of outside storage/staging area, cold storage and 75,000 barrels of fuel storage capacity. In 2010, OSI completed construction of a custom built berthing for the

Photos courtesy of OSI

We’re Here When You Need Us

Kulluk, a Shell Arctic Class drill rig, including a secure storage and staging area. Oil Exploration/Production Support on the Kenai Peninsula

In addition to its Arctic support services, Offshore Systems also supports oil and gas operations in the Cook Inlet. Offshore Systems Kenai (OSK) features a 600’ dock, on-dock warehouse, upland warehouse, heliport and hangar buildings, fuel storage and distribution, and multiple outside storage and staging pads for oilfield related equipment and supplies. Marine Support Services Ocean Marine Services, Inc. (OMSI) owns and operates four offshore support vessels year-round and has the capability to charter supplementary vessels for specific projects throughout Alaska. The OMSI fleet currently includes five vessels ranging from the 100’ Landing Craft Red Dog to the 260’ Barge 141 designed for spill response with a 60,000 barrel petroleum discharge storage capability.

OMSI offers support to major and independent companies seeking to enhance existing production or exploring for new oil and gas. OMSI recently brought on a third PSV, the M/V Discovery, in 2011, to serve as support vessel for Furie Operating Alaska LLC (formally Escopeta Oil) and their exploratory drilling efforts in their Kitchen Lights Unit. The Ocean Marine Services group of companies are built upon providing shore-based terminal and marine support and logistics solutions to the oil and gas explorers and producers in Alaska. We are excited about the reinvigorated efforts for offshore exploration and production in Alaska which is at its highest level in decades.

For more information contact: Rick Wilson, Business Manager Offshore Systems, Inc. Ocean Marine Services Inc. 3301 C St. Suite 201 Anchorage, AK 99503 Ph 907-646-4680 Fax 907-646-1430

OSK Dock in Nikiski

OMSI offshore support vessel PAID

www.offshoresystemsinc.com www.blackwatermarine.com

Alaska business monthly’s 2012 oil & gAs DirectorY EXPLORATION & PRODUCTION COMPANIES Company

Top Executive Top Executive

Shell Exploration & Production Co. 3601 C St., Suite 1000 Anchorage, AK 99503 Phone: 907-770-3700 Fax: 907-646-7142

Pete Slaiby, VP Alaska

Statoil 3800 Centerpoint Dr., Suite 920 Anchorage, AK 99503 Phone: 907-433-5700 Fax: 907-433-5799

Ella Ede, Stakeholder Mgr.

UltraStar Exploration LLC 1629 W. 11th Ave. Anchorage, AK 99501 Phone: 907-258-2969 Fax: 907-258-5092

James D. Weeks, Managing Member

AK AK Estab. Empls. Estab. Empls.

Business Activity Business Activity

2005

Integrated oil and gas company, international.

2008

Oil and gas exploration and production.

2000

Oil and gas exploration.

Alaska@shell.com www.shell.com.us/alaska

statoil.com

jweeks@ultrastarexploration.com

OILFIELD SUPPORT COMPANIES Top Executive

Company

Top Executive

3M Alaska 11151 Calaska Circle Anchorage, AK 99515 Phone: 907-522-5200 Fax: 907-522-1645

Paul H. Sander, Mgr.

Acuren 600 East 57th Place, Ste. B Anchorage, AK 99518 Phone: 907-569-5000 Fax: 907-569-5005

Dennis Lee, Managing Director

AK AK Estab. Empls. Estab. Empls.

Services Business Activity

1976

We manufacture a wide range of products covering every market in Alaska. In the area of natural resources, we provide products and services to aid the oil and gas and mining industries in worker safety, electrical and communications, welding, corrosion protection and cementing density control.

2002

100

Materials engineering, nondestructive examination and integrity management for the oil and gas, power, mining, transportation and construction industries.

Advanced Supply Chain International LLC Scott Hawkins, Pres. 3201 C St., Ste. 308 Anchorage, AK 99503 sales@ascillc.com Phone: 907-345-2724 Fax: 907-345-8621 www.ascillc.com

1999

235

Supply chain management, logistics management, purchasing, warehouse operations, materials management, inventory management and control, inventory optimization, ecommerce web tools, vendor performance management, strategic procurement and consulting.

AECOM 1835 S. Bragaw St. Anchorage, AK 99508-3439 Phone: 907-561-5700 Fax: 907-273-4555

Chris Humphrey, VP

1977

Wide range of environmental and energy development services, including environmental compliance, planning and permitting, site assessment and integrated site closure.

AeroMetric Inc. 2014 Merrill Field Dr. Anchorage, AK 99508-3439 Phone: 907-272-4495 Fax: 907-274-3265

Anthony B. Follett, Senior VP

1960

Serving natural resource industries since 1960. Airborne/satellite imaging and analysis, LIDAR, digital mapping, orthophotos. GIS for planning, design, development and documentation.

Airgas Nor Pac Inc. 6350 Arctic Blvd. Anchorage, AK 99518 Phone: 907-563-6644 Fax: 907-562-2090

Edward Richards, Reg. Pres.

1982

Airgas is the largest U.S. distributor of industrial, medical and specialty gases and welding equipment and supplies. Airgas is also one of the largest distributors of safety products in the US.

AK Supply Inc. 8000 King St. Anchorage, AK 99518 Phone: 907-562-3422 Fax: 907-562-3423

Ronald Smith, CEO

1992

Engineered flow products, valves, actuators, flanges, piping, pipeline saddles/supports, corrosion mitigation, control valves, valve lubricants/equipment, RedWing FRC clothing. Poly coatings, composite docks, road mats, structures, towers, buildings and foundation systems, remote camps and offices.

Alaska Airlines 4750 Old Int'l Airport Rd. Anchorage, AK 99502 Phone: 907-266-7230 Fax: 907-266-7229

Marilyn Romano, Reg. VP, Alaska

Alaska Airlines Air Cargo 4100 Old Int'l Airport Rd. Anchorage, AK 99502 Phone: 800-225-2752 Fax: 907-266-7816

Marilyn Romano, Reg. VP, Alaska

Alaska Analytical Laboratory 1956 Richardson Hwy. North Pole, AK 99705 Phone: 907-488-1271 Fax: 907-488-0772

Stefan Mack, PE/Pres.

Alaska Dreams Inc. 2081 Van Horn Rd., #2 Fairbanks, AK 99701 Phone: 907-455-7712 Fax: 907-455-7713

Meini Huser, Pres./CEO

Alaska Frontier Constructors Inc. PO Box 224889 Anchorage, AK 99522 Phone: 907-562-5303 Fax: 907-562-5309

John Ellsworth, Pres.

innovation.3malaska@mmm.com www.3m.com

www.acuren.com

mike.jones2@aecom.com www.aecom.com

sbolender@areometric.com www.aerometric.com

www.airgas.com

rsmith@aksupply.net www.aksupply.net 1932

www.alaskaair.com

1,700 Alaska Airlines and its sister carrier, Horizon Air, together provide passenger and cargo service to more than 90 cities in Alaska, Canada, Mexico, Hawaii and the Lower 48.

1932

172

Goldstreak small package express, Petstreak animal express, priority and general air freight services. Full ULD and charter services also available.

2008

Environmental testing laboratory. Soil and water analysis for methods 8021B, AK101, AK102, AK103 and ADEC certified.

1994

Design, Sales and Construction for Fabric Covered Steel Buildings and Pre-Engineered Metal Buildings.

2005

200

Construction

www.alaskacargo.com

klovejoy@alaska-analytical.com www.alaska-analytical.com

info@alaskadreamsinc.com www.alaskadreamsinc.com

afcinfo@ak.net akfrontier.com

www.akbizmag.com • Alaska Business Monthly • May 2012

When Shell Oil needed ice-class oil spill response barges to work in some of the world’s most extreme working environments – the Beaufort and Chukchi Seas – they called Crowley. Our management team engineered, constructed and outfitted the three barges that will support this important off-shore operation. Shell Project: On time. On budget. Turnkey. You can count on Crowley.

Liner Shipping • Worldwide

Alaska business monthly’s 2012 oil & gAs DirectorY OILFIELD SUPPORT COMPANIES Top Executive

Company

Top Executive

Alaska Gasline Port Authority PO Box 3144 Valdez, AK 99686 Phone: 907-474-2011 Fax: 907-278-7001

Jim Whitaker, Chairman of Board

Alaska Hydraulics, Inc 166 E. Potter Drive, Suite #1 Anchorage, AK 99518 Phone: 907-562-2217 Fax: 907-561-1262

Thomas Loran, VP

Alaska Interstate Construction LLC 301 W. Northern Lights Blvd., Ste. 600 Anchorage, AK 99503 Phone: 907-562-2792 Fax: 907-562-4179

Steve Percy, Pres.

Alaska Marine Lines 100 Mt. Roberts St., Ste. 200 Juneau, AK 99801 Phone: 907-586-3790 Fax: 907-463-3298

Kevin Anderson, Pres.

Alaska Rubber & Rigging Inc. 210 E. Van Horn Rd. Fairbanks, AK 99701 Phone: 907-451-0200 Fax: 907-451-8480

Charles Cartier, Gen. Mgr.

Alaska Rubber Group 5811 Old Seward Hwy. Anchorage, AK 99518-1479 Phone: 907-562-2200 Fax: 907-561-7600

Janeece Higgins, Pres.

Alaska Steel Co. 1200 W. Dowling Rd. Anchorage, AK 99518 Phone: 907-561-1188 Fax: 907-561-2935

Maynard Gates , Pres./CEO

Alaska Support Industry Alliance 646 W. Fourth Ave., Ste. 200 Anchorage, AK 99501 Phone: 907-563-2226 Fax: 907-561-8870

Rebecca Logan, Gen. Mgr.

Alaska Valve & Fitting Co. PO Box 230127 Anchorage, AK 99523 Phone: 907-563-5630 Fax: 907-563-4721

Jim Trolinger, Pres.

Alaska West Express 1048 Whitney Rd. Anchorage, AK 99501 Phone: 907-339-5100 Fax: 907-339-5117

Dean C. McKenzie, Pres.

Alutiiq Oilfield Solutions LLC 3452 Trailer Street Fairbanks, AK 99709 Phone: 907-456-4433

Dennis Swarthout

Alyeska Pipeline Service Co. PO Box 196660, MS 542 Anchorage, AK 99519-6660 Phone: 907-787-8700 Fax: 907-787-8240

Thomas Barrett, Pres.

American Fast Freight, Inc. 5025 Van Buren St. Anchorage, AK 99517 Phone: 907-248-5548 Fax: 907-243-7353

Terry Umatum, AK Mgr. Sales & Ops

American Marine Corp. 6000 A Street Anchorage, AK 99518 Phone: 907-562-5420 Fax: 907-562-5426

Susan Leech, VP, AK Reg. Mgr.

Analytica Environmental Laboratories 4307 Arctic Blvd. Anchorage, AK 99503 Phone: 907-229-9816 Fax: 907-258-6634

Elizabeth Rensch, Principal

APICC 2600 Cordova St., Ste. 105 Anchorage, AK 99503 Phone: 907-770-5250 Fax: 907-770-5251

Todd Bergman, Executive Director

AK Estab. Empls. AK Estab. Empls. 1999

Services Business Activity Municipal Port Authority formed to build or cause an Alaska gas pipeline to be built to transport North Slope natural gas to instate, domestic and export markets, and to provide value-added benefits in the development of Alaska's natural gas resources.

info@allalaskagasline.com allalaskagasline.com 1976

Hydraulic repair and design, sales and service.

1987

300

AIC provides all forms of heavy civil & arctic construction including ice & snow roads, earthworks, gravel & ice islands, bridges & culverts, structural foundations, dock facilities, dredging & more.

1980

Twice weekly barge service to Southeast Alaska and weekly barge service to Central Alaska. Charter and nonscheduled barge services.

1988

Industrial and hydraulic hose and fittings, pumps, kamlocks, belting, Enerpac and Landa. Hydraulic sales and repair. Certified wire rope and nylon slings with InfoChip Tracking technology. Anchorage, Fairbanks and Wasilla locations.

1981

Industrial and hydraulic hose and fittings, pumps, kamloks, belting, Enerpac and Landa. Hydraulic sales and repair. Certified wire rope and nylon slings with InfoChip Tracking technology. Anchorage, Fairbanks and Wasilla locations.

1982

Full line steel and aluminum distributor with a rebar fabrication division on site.

1979

Statewide coalition representing 430 businesses, organizations and individuals that derive their livelihood from providing products and services to Alaska's oil and gas and mining industries.

1965

Instrumentation & Fluid Control, Swagelok Distributor of Alaska.

1978

117

Alaska West Express provides truckload transportation throughout the United States and Canada, specializing in your shipment to and from Alaska, where we are the leader in transporting liquid- and dry-bulk products, hazardous and non-hazardous chemicals and petroleum products.

2001

We provide industrial coatings for the oil and gas industries as well as tundra and portable road matting.

1970

790

Designed, built, operates and maintains the Trans Alaska Pipeline System (TAPS), pump stations and Valdez Marine Terminal on behalf of five owner companies.

1984

120

Air transportation nonscheduled, arrangement of transportation of freight and cargo, coast-wise transportation, ocean domestic transportation of freight, freighttransportation services, heavy-hauling trucking, wharehousing, project logistics, large project management, oversize, over-length, bypass mail and more.

1973

American Marine Corp. specializes in marine construction, crew boat services, marine vessel inspection & emergency repair, marine logistics, commercial diving, and environmental remediation.

1991

Analytica is the largest state certified laboratory in Alaska, specializing in drinking water, wastewater and general water quality testing. Locations in Anchorage, Fairbanks, Juneau and Wasilla Alaska.

1999

Work force development and career pathways for Alaska's oil, gas and mining industries, North Slope Training Cooperative (HSE), Industry Priority Occupations Report, Mobile Process and Energy Industry Career Briefcase, Engineering Academies and Teacher Industry Externships.

sales@alaskahydraulics.om www.alaskahydraulics.com

info@aicllc.com www.aicllc.com

www.amlcsc@lynden.com www.shipaml.com

akrubber-rigging.com

info@alaskarubber.com www.alaskarubber.com

receptionist@alaskasteel.com www.alaskasteel.com

info@alaskaalliance.com www.alaskaalliance.com

AVF@alaska.net swagelok.com

information@lynden.com www.awe.lynden.com

alutiiq.com

facebook.com/alyeskapipeline www.alyeska-pipe.com

UmatumT@americanfast.com www.americanfast.com

alaska@amarinecorp.com www.amarinecorp.com

er@analyticagroup.com www.analyticagroup.com

tbergman@apicc.org www.apicc.org

www.akbizmag.com • Alaska Business Monthly • May 2012

Alaska business monthly’s 2012 oil & gAs DirectorY OILFIELD SUPPORT COMPANIES Top Executive

Company

Top Executive

ARCTOS LLC 130 W. Int'l Airport Rd., Ste. R Anchorage, AK 99518 Phone: 907-632-1006 Fax: 866-532-3915

Kirsten K. Ballard, CEO

ASRC Energy Services Inc. 3900 C Street, Suite 701 Anchorage, AK 99503 Phone: 907-339-6200 Fax: 907-339-6212

Jeff Kinneeveauk, Pres./CEO

ATCO Pipelines #1200, 909 - 11th Ave SW Calgary, AB T2R1L8 Phone: 403-245-7060 Fax: 403-245-7636

Brendan Dolan, Sr. VP & Gen. Mgr.

ATCO Structures & Logistics Ltd. 425 G St. Anchorage, AK 99501 Phone: 907-677-6983 Fax: 907-677-6984

Harry Wilmot, Pres./COO

Baker Hughes Inc. 795 E. 94th Ave. Anchorage, AK 99515 Phone: 907-267-3400 Fax: 907-267-3401

Ian Paterson, Dir. - Alaska Ops

Big G Electric & Engineering 42005 Kalifonsky Beach Rd. Soldotna, AK 99669 Phone: 907-262-4700 Fax: 907-262-1011

Bruce M. Gabriel, Pres.

Brice Environmental Services Corp. PO Box 73520 Fairbanks, AK 99707 Phone: 907-456-1955 Fax: 907-452-5018

Craig Jones, Pres./Gen. Mgr.

Bristol Engineering Services Corp. 111 W. 16th Avenue, Third Floor Anchorage, AK 99501 Phone: 907-563-0013 Fax: 907-563-6713

Travis Woods, Sr. Civil Engineer/CEO

Bristol Fuel Systems 111 W. 16th Avenue, Third Floor Anchorage, AK 99501 Phone: 907-563-0013 Fax: 907-563-6713

Greg Jarrell, Division Manager

Bristow Alaska Inc 1915 Donald Ave. Fairbanks, AK 99701 Phone: 907-452-1197 Fax: 907-452-4539

Danny Holder, North America BU Dir.

Brooks Range Supply Inc. Pouch 340008 Prudhoe Bay, AK 99734 Phone: 907-659-2550 Fax: 907-659-2650

Eric Helzer, Pres./CEO

C2 North LLC 4141 B St. Anchorage, AK 99503 Phone: 907-569-9122 Fax: 603-388-0793

Melanie Roller, Owner/Principal

Canrig Drilling Technology Ltd. 301 E. 92nd Ave. Anchorage, AK 99515 Phone: 907-561-2465 Fax: 907-561-2474

Jim Carson, Alaska District Mgr.

Caribou Construction Inc. 5100 Cordova St., Ste. 206 Anchorage, AK 99503 Phone: 907-563-5444 Fax: 907-562-6448

Donald E. Pearson, Gen. Mgr.

Carlile Transportation Systems 1800 E. First Ave. Anchorage, AK 99501-1833 Phone: 907-276-7797 Fax: 907-278-7301

Linda Leary, Pres.

Carolina Mat Co. PO Box 339 Plymouth, NC 27962 Phone: 252-793-4045 Fax: 252-793-5187

Margaret Harrison, Owner/VP

AK Estab. Empls. AK Estab. Empls. 2007

info@arctosak.com www.arctosak.com 1985

info@asrcenergy.com www.asrcenergy.com

Services Business Activity The ARCTOS consortium specializes in oil spill prevention and response planning services such as API Certified tank and piping inspections, Certified Weld Inspection, oil spill contingency planning, response management support, project permitting, compliance assistance with state and federal oil pollution regulation.

3,175 AES offers expertise from the earliest regulatory stage to exploration, drilling support, engineering, fabrication, construction, project management, operations and maintenance and field abandonment.

1999

ATCO Pipelines provides reliable and efficient transportation of natural gas and is committed to superior customer service while ensuring the safety of our employees and the public.

www.atcopipelines.com 1947

ATCO Structures & Logistics offers complete infrastructure solutions to customers worldwide, including remote work force housing, portable offices and trailers, innovative modular facilities, construction, site support services, operations support, catering and noise reduction technologies.

1910

300

An international engineering firm, delivering technical solutions to the oil industry for over 100 years. Reservoir services to drill bits, directional drilling, pumping services and completion equipment.

1987

Full service electrical, instrumentation. FCO, commissioning and check out, UL508 panel shop, project management and consulting statewide services including North Slope, Anchorage and the Kenai Peninsula Oil and Gas industries.

1991

Small business Native-owned environmental company specializing in remediation of heavy metal contaminated soils, and remote site demolition, environmental construction and remediation. Project history throughout Alaska and the lower 48 states and Hawaii. Pending 8(a) status.

1994

Bristol's services include: civil engineering, permitting, planning; total project management encompassing planning, design and construction.Bristol has access to an $8 million fleet (market value) of heavy equipment, including bulldozers, loaders, excavators, crushers and haulers.

2010

Bristol Fuel Systems, LLC, serves the oil and gas markets with design, construction, and testing of bulk fuel facilities, as well as piping/pipeline and fuel systems, with a special emphasis on military aircraft fuel systems.

1977

Helicopter transportation services.

1982

Diverse range of automotive and heavy equipment parts, industrial and hydraulic hose, hardware, welding equipment, safety and MRO supplies, propane refilling, oil spill materials, lubricants, WSB fuel and oil enhancement products, hand and power tools, NAPA, True Value, VIPAR, IWDC Welding.

2001

Small business certifications with an emphasis on Alaska Native corporations. Project management, technical writing and business solutions for the oil and gas industry.

1989

Canrig provides capital equipment sales, services and rentals and enterprise solutions to the upstream oil and gas industry.

1987

General oilfield support, heavy equipment, rubber track equipment, remote site camps, fuel containments, survival units, exploration, remote site cleanup.

1980

500

Full-service transportation company.

atco@atcosl.com www.atcosl.com

www.bakerhughes.com

bigg@biggelectric.com www.biggelectric.com

craigj@briceenvironmental.com www.briceenvironmental.com

info@bristol-companies.com www.bristol-companies.com

gjarrell@bristol-companies.com www.bristol-companies.com

dave.scarbrough@bristowgroup.com bristowgroup.com

manager@brooksrangesupply.com www.brooksrangesupply.com

mroller@c2north.com www.c2north.com

www.canrig.com

theresa.quick@acsalaska.net www.dpnorth.com

pspittler@carlile.biz www.carlile.biz

info@carolinamat.com www.carolinamat.com

2004

Carolina Mat provides all Oak portable access roads and staging areas that enable heavy industry to do its work while leaving the smallest environmental footprint possible.

www.akbizmag.com • Alaska Business Monthly • May 2012

Alaska business monthly’s 2012 oil & gAs DirectorY OILFIELD SUPPORT COMPANIES Top Executive

Company

Top Executive

AK Estab. Empls. AK Estab. Empls.

CCI Industrial Services, LLC A. Ben Schoffmann, Pres./CEO 560 East 34th Avenue, Suite 200 Anchorage, AK 99503-4161 info@cciindustrial.com Phone: (907) 258-5755 Fax: (907) 770-9450 www.cciindustrial.com

1989

CH2M HILL 949 E. 36th Ave., Ste. 500 Anchorage, AK 99508 Phone: 907-762-1500 Fax: 907-762-1595

Mark Lasswell, Alaska Pres. & GM

1964

Chiulista Services Inc. 6613 Brayton Dr., Ste. C Anchorage, AK 99507 Phone: 907-278-2208 Fax: 907-677-7261

Monique Henriksen, Sr. VP AK Ops

City Electric Inc. 819 Orca St. Anchorage, AK 99501 Phone: 907-272-4531 Fax: 907-264-6491

Gabriel Marian, Pres.

Colville Inc. Pouch 340012 Prudhoe Bay, AK 99734 Phone: 907-659-3189 Fax: 907-659-3190

Eric Helzer, Pres./CEO

CONAM Construction Co. 301 W. Northern Lights Blvd., Ste. 300 Anchorage, AK 99503 Phone: 907-339-4000 Fax: 907-339-4001

Robert Stinson, Pres.

Construction Machinery Industrial 5400 Homer Dr. Anchorage, AK 99518 Phone: 907-563-3822 Fax: 907-563-1381

Ken Gerondale, Pres./CEO

bclemenz@ch2m.com www.ch2m.com/alaska

150

Services Business Activity Asbestos and lead surveys and abatement; Operations, maintenance and construction; Tank and vessel cleaning; Specialty coatings and fireproofing; Sandblasting; Demolition and removal; Hazardous waste removal; Pipeline and component insulation removal and repair; Spill response and technical support.

3,100 CH2M HILL offers consulting, engineering, procurement, logistics, fabrication, construction, construction management, operations and maintenance services all under one roof, supporting entire project life cycles. We support oil & gas, mining, environmental, water, power, transportation, government and other energy projects.

1996

Remote camps and catering services to the oil, gas, construction, and mining industry.

1946

125

Electrical and communications contracting NAICS; 237130, 238210.

1981

125

Arctic full-service fuel logistic contractor, solid waste services and industrial supply, NAPA, True Value, VIPAR, offshore logistics.

1984

General construction contractor specializing in oil and gas facilities and pipelines, mining facilities, water and sewer facilities, other remote Arctic construction and maintenance.

1985

102

CMI sells, rents and services heavy equipment.

mhenriksen@chiulista.com www.chiulista.com

gabrielm@cityelectricinc.com www.cityelectricinc.com

info@colvilleinc.com www.colvilleinc.com

www.conamco.com

o.prestwick@cmiak.com www.cmiak.com

Where the road ends…

Our Work Begins

We are proud to announce the launch of our latest division, Cruz Marine LLC. Our ABS Loadline Class tugs are the only double-hulled shallow draft tugs in Alaska and the Northwest. We can transport equipment, materials, and supplies to sites along the Arctic Ocean and Beaufort Sea, the west coast of Alaska or up inland waterways. Whether by land or water, we can deliver what you need, when and where you need it.

www.akbizmag.com • Alaska Business Monthly • May 2012

MARINE LLC

cruzconstruct.com Main Office (907) 746-3144 North Slope (907) 659-2866

Alaska business monthly’s 2012 oil & gAs DirectorY OILFIELD SUPPORT COMPANIES Top Executive

Company

Top Executive

Craig Taylor Equipment 733 E. Whitney Rd. Anchorage, AK 99501 Phone: 907-276-5050 Fax: 907-276-0889

Lonnie G Parker, Pres.

Crowley 201 Arctic Slope Ave. Anchorage, AK 99518 Phone: 907-777-5505 Fax: 907-777-5550

Bob Cox, VP

Cruz Construction 7000 E. Palmer Wasilla Hwy. Palmer , AK 99645 Phone: 907-746-3144

Dave Cruz, Pres.

Cruz Marine LLC 7000 E. Palmer-Wasilla Hwy. Palmer, AK 99645 Phone: 907-746-3144 Fax: 907-746-5557

Kevin Weiff, Marine Director

Cummins Northwest LLC 2618 Commercial Dr. Anchorage, AK 99501 Phone: 907-279-7594 Fax: 907-276-6340

Jeff Pereira, Ops Mgr.

DAT/EM Systems International 8240 Sandlewood Pl. Suite 101 Anchorage, AK 99507-3122 Phone: 907-522-3681 Fax: 907-522-3688

Jeffrey Yates, Gen. Mgr.

Deadhorse Aviation Center LLC 500 First St. Deadhorse, AK 99734 Phone: 907-346-3247 Fax: 907-349-1920

Sherron Perry, Manager

100

AK Estab. Empls. AK Estab. Empls.

Services Business Activity

1954

Factory authorized dealer for: Komatsu construction and mining, Bobcat loaders and excavators, John Deere commercial and lawn tractors, Dynapac compaction rollers, Fecom land clearing attachments and carriers. Providing sales, parts and service.

1892

550

Fuel sales and distribution, marine services, tanker escort and spill response throughout Alaska.

1990

Specializing in heavy civil construction and remote work locations throughout the state of Alaska. Oilfield services and support, ice roads, ice pads, transportation and rig support.

2008

Marine support for all Alaskan construction projects. Eco friendly Tugs and Barges tow in rivers, hard to reach coastal delta areas, and Oceans. ABS Load line Vessels with double bottom fuel tanks.

1969

Solutions for your power needs. Sales and service for Cummins engines and generators, also an extensive parts inventory for Cummins engines and generators. Selling and servicing generators for your business, home, RV or camp.

1987

Photogrammetic software and support.

2007

A multimodal aviation facility designed to meet the needs of both onshore and offshore oil and gas development on the North Slope. The DAC has a large hangar, office space, terminal, full-service medical facility, 24 bedrooms and a full dining facility. The DAC owns a gravel laydown yard wtih 10.4 acres of new gravel.

anc.sales@craigtaylorequipment.com www.craigtaylorequipment.com

bob.cox@crowley.com www.crowley.com

info@cruzconstruct.com www.cruzconstruction.com

info@cruzmarine.com www.cruzmarine.com

www.cumminsnorthwest.com

jyates@datem.com datem.com

info@deadhorseaviationcenter.com deadhorseaviationcenter.com

www.akbizmag.com • Alaska Business Monthly • May 2012

Alaska business monthly’s 2012 oil & gAs DirectorY OILFIELD SUPPORT COMPANIES Top Executive

Company

Top Executive

Delta Western, Inc. 420 L Street, Ste 101 Anchorage, AK 99501 Phone: 800-478-2688 Fax: 206-213-0103

Amy Humphreys, Pres.

DHL Global Forwarding 2000 W. International Airport Road Anchorage, AK 99502 Phone: 907-243-4301 Fax: 907-677-0900

John Witte, Reg. Mgr.

Don Pearson of Alaska Inc. 5100 Cordova St., Ste. 206 Anchorage, AK 99503 Phone: 907-563-3067 Fax: 907-562-6448

Donald E. Pearson, Pres.

Dowland-Bach Corp. PO Box 230126 Anchorage, AK 99523-0126 Phone: 907-562-5818 Fax: 907-562-5816

Lynn C. Johnson, Pres.

Doyon Universal Services LLC 11500 C Street, Suite 100 Anchorage, AK 99515 Phone: 907-522-1300 Fax: 907-522-3531

Thomas (Bob) Kean, Pres.

Entrix 1600 A St. Anchorage, AK 99501 Phone: 907-563-0438 Fax: 907-563-0439

Sue Ban , Project Mgr.

Era Helicopters LLC 6160 Carl Brady Dr., Hangar 2 Anchorage, AK 99502 Phone: 907-550-8600 Fax: 907-550-8608

W. Randy Orr, VP

AK Estab. Empls. AK Estab. Empls.

Services Business Activity

1985

105

Fueling Alaska safely for over 25 years.

1970

Worldwide freight services featuring total Alaska coverage. Specializing in air cargo, trucking, express services, warehousing, storage solutions, supply chain and rail freight.

1977

Deadhorse Airport pad.

1975

Wellhead control panels, NRTL listed electrical industrial control panels, chemical injection systems, custom stainless fabrication. Stocking distributor of stainless steel tubing, pipe, fittings and flanges. Design/build capability. Part of the Koniag family of companies.

1946

920

Operational Support including catering, housekeeping, facility maintenance and security.

1984

Full-service, nationwide environmental consulting firm providing specialized technical services by more than 450 environmental professionals in environmental impact assessments (NEPA); environmental planning, permitting and compliance.

1948

125

Alaska's original helicopter company, safely flying customers since 1948. Offering charter service, O&G support for North Slope and Cook Inlet, and flightseeing tours in Juneau and Denali National Par

www.deltawestern.com

jane.treadway@dhl.com www.dhl-dgf.com

tpquick@gci.net www.dpnorth.com

reed@dowlandbach.com www.dowlandbach.com

doyonuniversal.com

mheiken@bristol-companies.com entrix.com

alaskamarketing@erahelicopters.com www.erahelicopters.com

www.akbizmag.com • Alaska Business Monthly • May 2012

101

Alaska business monthly’s 2012 oil & gAs DirectorY OILFIELD SUPPORT COMPANIES Top Executive

Company

Top Executive

ESS Labor Services 201 Post Rd Anchorage, AK 99501 Phone: 907-344-1207 Fax: 907-865-9850

Larry Weihs, COO

Everts Air Cargo PO Box 61680 Fairbanks, AK 99706 Phone: 907-450-2300 Fax: 907-450-2320

Robert W. Everts, Owner/Pres.

Fairweather LLC 9525 King St. Anchorage, AK 99515 Phone: 907-346-3247 Fax: 907-349-1920

Sherron Perry, Pres.

Fircroft Inc. 2550 Denali St., Ste. 1202 Anchorage, AK 99503 Phone: 907-569-8100 Fax: 907-569-8099

Sherill Lumba, Branch Mgr.

Flint Hills Resources Alaska LLC 1100 H&H Ln. North Pole, AK 99705 Phone: 907-488-2741 Fax: 907-488-0074

Mike Brose, VP

Foss Maritime Co. 1151 Fairview Avenue North Seattle, WA 98119 Phone: 206-281-3800 Fax: 206-281-4702

Gary Faber, CEO

Foundex Pacific Inc. 2261 Cinnabar Loop Anchorage, AK 99507 Phone: 907-522-8263 Fax: 907-522-8262

Howard J. Grey, Mgr.

Frawner Corp. 1600 A Street Suite 302 Anchorage, AK 99501 Phone: 907-561-4044 Fax: 907-346-4797

Jay Frawner, Pres.

Fugro 5761 SIlverado Way, Ste. O Anchorage, AK 99518 Phone: 907-561-3478 Fax: 907-561-5123

Scott Widness, Alaska Div. Mgr.

G&G Machine Shop Inc. PO Box 8568 Nikiski, AK 99635 Phone: 907-776-5501 Fax: 907-776-5622

Richard Gunter, Pres.

GBR Equipment Inc. 6300 Petersburg St. Anchorage, AK 99507 Phone: 907-563-3550 Fax: 907-562-6468

Billy Reynolds, Pres.

Geokinetics 3201 C St., Ste. 403 Anchorage, AK 99503 Phone: 907-569-4049 Fax: 907-569-4047

Chuck Robinson, Area Mgr., Alaska

GeoTek Alaska, Inc. PO Box 11-1155 Anchorage, AK 99511-1155 Phone: 907-569-5900 Fax: 907-929-5762

Christopher Nettels, Pres.

Global Diving & Salvage Inc. 5304 Eielson St. Anchorage, AK 99518 Phone: 907-563-9060 Fax: 907-563-9061

Devon Grennan, Pres.

Golder Associates Inc. 2121 Abbott Rd. Anchorage, AK 99507 Phone: 907-344-6001 Fax: 907-344-6011

Mark Musial, Principal, Mgr.

Great Circle Flight Services 6121 S. Airpark Place Anchorage, AK 99502 Phone: 907-245-1232 Fax: 907-245-1501

Louis Jennings, Gen. Mgr.

102

AK Estab. Empls. AK Estab. Empls.

Services Business Activity

1984

300

Full service camp operator: food service, housekeeping, janitorial, security, transportation, labor service.

1995

287

Freight and passenger transportation in Alaska with aircraft based in Deadhorse, Fairbanks and Anchorage, providing scheduled, flag-stop and charter flights.

1977

160

Fairweather is an Alaska-based company specializing in remote medical services, weather forecasting, airport equipment, bear guards and expediting for the natural resources industry. Our experienced professionals and our comprehensive logistics program enable us to accommodate your project needs.

2009

Fircroft is a leading provider of technical recruitment solutions to a number of specialist industries, active in over 30 countries worldwide. Our key sectors include: Oil & Gas, Petrochemicals & Process, Automotive & Aerospace, Nuclear & Power, Mining & Minerals and General Engineering.

1977

175

Refiner and distributor of gasoline, diesel, jet fuel and asphalt.

1889

Services: ship assist, escort, project cargo, liner, bunkering, heavy lift support; remote site planning and design; lightering, resupply and ocean towing services; and unique vessel design and services. Depending on season and projects, Alaska employees range from 10 to 75 or more.

1983

Provide geotechnical and environmental drilling services. Equipped for drilling with air and mud rotary, coring and auger tools. Some of our equipment is specially designed for helicopter support.

2002

General contractor including building construction, remodel, HVAC systems, sewer, water, storm systems and horizontal directional drilling.

1994

Offshore: marine geophysics and seafloor mapping, 3D seismic surveys, metocean services, geotechnical investigations. Onshore: airborne geophysics, aerial and satellite mapping, precise positioning, geotechnical investigations, and regulatory and environmental assessments.

1986

Downhole Tools; tubing, casing and tool joints, pump repair. gear boxes, welding and general machine work.

1972

We provide casing service and installation, casing equipment rental, welding services, and tire sales and service.

2000

To supply geophysical surveys and processing to the oil and gas industry. Alaska employees range from 15 to 150.

2002

GeoTek Alaska specializes in the acquisition of subsurface data for both the environmental and geotechnical professional communities. If your needs involve the characterization of the subsurface for either environmental assessments or geotechnical data acquisition GeoTek provides drilling and geophysical services.

1979

Global specializes in portable mixed gas and saturation diving with capabilities to 1,000 feet and is able to provide a variety of underwater maintenance, repair, installations and inspections. Full project management services and engineering support for undertakings that require technical underwater procedures and tooling.

1980

Arctic and geotechnical engineering, groundwater resource development, environmental sciences and remedial investigation.

2005

GCFS provides personal and attentive concierge style FBO services to private and charter aircraft traveling to, from and throughout Alaska. Open 24/7/365.

mmcaleese@ess-worldwide.com www.essalaska.com

info@evertsair.com evertsair.com

www.fairweather.com

slumba@fircroft.com www.fircroft.com

jeff.cook@kochps.com www.fhr.com

info@foss.com www.foss.com

HGrey@foundex.com www.foundex.com

frawner@frawnercorp.com frawnercorp.com

swidness@fugro.com www.fugro.com

ggms@acsalaska.net

gbroilfield.com

www.geokinetics.com

ksmith@geotekalaska.com www.geotekalaska.com

info@gdiving.com www.gdiving.com

www.golder.com

dispatch@greatcircleflight.com www.greatcircleflight.com

www.akbizmag.com • Alaska Business Monthly • May 2012

Alaska business monthly’s 2012 oil & gAs DirectorY OILFIELD SUPPORT COMPANIES Top Executive

Company

Top Executive

Great Northwest Inc. PO Box 74646 Fairbanks, AK 99707 Phone: 907-452-5617 Fax: 907-456-7779

John Minder, CEO

Halliburton Energy Services 6900 Arctic Blvd. Anchorage, AK 99518 Phone: 907-275-2600 Fax: 907-275-2650

Bob Anderson, Alaska District Mgr.

Hector's Welding Inc. 2473 Old Richardson Hwy. North Pole, AK 99705 Phone: 907-488-6432 Fax: 907-488-8385

Ken Therriault, VP/GM

ICRC 421 W. First Avenue, Suite 200 Anchorage, AK 99501 Phone: 907-561-4272 Fax: 907-561-4271

Carl Williams, CEO/President

Jacobs 4300 B St., Ste. 600 Anchorage, AK 99503 Phone: 907-563-3322 Fax: 907-563-3320

Terry Heikkila, Dir., Pac. Rim Fed. Ops

Judy Patrick Photography 511 W. 41st Ave., Ste. 101 Anchorage, AK 99503 Phone: 907-258-4704 Fax: 907-258-4706

Judy Patrick, Owner

Kakivik Asset Management LLC 560 E. 34th Ave., Ste. 200 Anchorage, AK 99503-4161 Phone: 907-770-9400 Fax: 907-770-9450

A. Ben Schoffmann, Pres./CEO

AK Estab. Empls. AK Estab. Empls.

Services Business Activity

1976

200

Heavy & Highway construction, aggregate production, paving, underground utilities.

1966

200

Halliburton offers a broad array of oilfield technologies and services to upstream oil and gas customers worldwide.

1956

Metal fabrication, sales. Material processing - shear, brake, roll, punch, burn. 10x24 plasma table. 500-ton press brake.

1983

Project managment, project controls, special inspections, engineering and design, construction administration.

1947

Jacobs provides full-service engineering, construction management, procurement, and maintenance services to the worldwide upstream and downstream markets, including process assessments, facility appraisals, feasibility studies, environmental compliance and restoration, technology evaluation, and project finance structuring.

1984

Creative photography for oil and gas, mining, construction and transportation industries in North America.

1999

200

Nondestructive Testing (NDT), Internal and External Corrosion Investigations, Quality Program Management, Integrity Program Management, and Field Chemical/Corrosion Inhibition Management.

info@grtnw.com www.grtnw.com

www.halliburton.com

hectors@acsalaska.net www.hectorswelding.com

info@ICRCsolutions.com www.ICRCsolutions.com

www.jacobs.com

judy@judypatrickphotography.com judypatrickphotography.com

info@kakivik.com www.kakivik.com

www.akbizmag.com • Alaska Business Monthly • May 2012

103

Alaska business monthly’s 2012 oil & gAs DirectorY OILFIELD SUPPORT COMPANIES Top Executive

AK Estab. Empls. AK Estab. Empls.

Company

Top Executive

Kiewit Infrastructure West Co. 2000 W. International Airport Rd. Anchorage, AK 99502 Phone: 907-222-9350 Fax: 907-222-9380

Pat Harrison, Pacific NW Area Mgr.

Lounsbury & Associates 5300 A St. Anchorage, AK 99518 Phone: 907-272-5451 Fax: 907-272-9065

Jim Sawhill, Pres.

Lynden Air Cargo 6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-243-7248 Fax: 907-257-5124

Judy McKenzie, Pres.

Lynden International 6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-243-6150 Fax: 907-243-2143

David Richardson, Pres.

Lynden Logistics 6441 S. Airpark Pl. Anchorage, AK 99502 Phone: 907-245-1544 Fax: 907-245-1744

Alex McKallor, Pres.

Lynden Transport Inc. 3027 Rampart Drive Anchorage, AK 99501 Phone: 907-276-4800 Fax: 907-257-5155

Jim Beck, Pres.

MagTec Alaska LLC 43385 Kenai Spur Hwy. Kenai, AK 99611 Phone: 907 394 6350 Fax: 907 770 6359

Ryan Peterkin, Pres.

Services Business Activity

1947

200

Heavy civil construction including transportation, marine, dams and resource development.

1949

Civil engineering, land surveying, planning, construction management. Servicing local and state government, oil and gas industry and more.

1996

158

Charter air cargo service. Scheduled air cargo and express package service.

1980

Air cargo and express-package services, nonscheduled and scheduled air transportation, air courier services, freight transportation services and local delivery services.

1984

Arrangement of freight transportation, information management and logistical services.

1954

141

Full-service, multi-mode freight transportation to, from and within Alaska.

2008

Oilfield equipment rental and project support. Logistic service, North Slope camps, equipment sales and service. Generators 20KW to 2meg, heaters, trucks, vans and flatbeds.

damian.skerbeck@kiewit.com www.kiewit.com/northwest

k.ayers@lounsburyinc.com www.lounsburyinc.com

charters@lac.lynden.com www.lac.lynden.com

lafmtg@laf.lynden.com www.laf.lynden.com

information@lynden.com www.lynden.com

trananccs@lynden.com www.lynden.com/ltia/

rwilson@magtecalaska.com magtecalaska.com

Doing our par t to keep things moving

in Alaska. Every day our North Pole refinery processes North Slope crude oil that ends up as jet fuel, gasoline, home heating oil or asphalt. Each is integral in the day-to-day life of just about every Alaskan. We’re optimistic about Alaska’s future and look forward to continuing to do our part to help keep the state’s economic engines turning.

Alaska

104

www.akbizmag.com • Alaska Business Monthly • May 2012

Alaska business monthly’s 2012 oil & gAs DirectorY OILFIELD SUPPORT COMPANIES Top Executive

Company

Top Executive

Maritime Helicopters 3520 FAA Road Homer, AK 99603 Phone: 907-235-7771 Fax: 907-235-7773

Bob Fell, Director of Operations

Marsh Creek LLC 2000 E 88th Avenue Anchorage, AK 99507 Phone: 907-258-0050 Fax: 907-279-5710

Mick McKay, CEO

Michael Baker Jr. Inc. 1400 W. Benson Blvd., Ste. 200 Anchorage, AK 99503 Phone: 907-273-1600 Fax: 907-273-1699

Jeffrey Baker, Alaska Office Principal

Million Air Anchorage 6160 Carl Brady Dr. Anchorage, AK 99502 Phone: 907-550-8500 Fax: 907-550-8502

Randy Orr, Pres. & Gen. Mgr.

Motion Industries/US Bearings & Drives 1895 Van Horn Rd., Unit A Fairbanks, AK 99701 Phone: 907-452-4488 Fax: 907-456-8840

Brad Deweese, Fairbanks Branch Mgr.

Motion Industries/US Bearings & Drives 611 E. International Airport Rd. Anchorage, AK 99518 Phone: 907-563-5565 Fax: 907-563-5536

Chris Ransom, Anch. Branch Mgr.

N C Machinery Co. 6450 Arctic Blvd. Anchorage, AK 99518 Phone: 907-786-7500 Fax: 907-786-7580

John J. Harnish, Pres./CEO

AK Estab. Empls. AK Estab. Empls.

Services Business Activity

1973

Maritime Helicopters supports marine, petroleum, construction industries as well as State and federal Agencies. Maritime owns the Maritime Maid, an 86' vessel equipped for helicopter operations. We own and operate 6-passenger Bell 407, Bell Long Ranger and 4-passenger Bell Jet Ranger helicopters.

2004

100

Energy Systems, Environmental, Construction, Telecommunications

1942

Engineering - pipeline, H&H, geotechnical, mechanical, civil, structural; GIS; NEPA and permitting support.

1979

Corporate and general aviation, fixed based operation: Provide VIP services to private aircraft. Facilities consist of more than 10 acres of paved secure ramp space, four executive hangars and office space. FBO services, 24 hour operations.

1970

A leading industrial maintenance, repair, and operation (MRO) replacement parts distributor (over 4.8 million parts), including bearings, power transmission, electrical/ industrial automation, hydraulic/industrial hose, hydraulic/pneumatic components, process pumps, ind. supplies & material handling.

2007

A leading distributor of industrial maintenance, repair and operation (MRO) replacement parts (over 4.8 million parts), including bearings, power transmission, hydraulic/ pneumatic components, linear, hydraulic/industrial hose, industrial supplies, process pumps and equipment, and material handling.

1776

222

Caterpillar machine sales, parts, service and rental. Caterpillar engines for marine, power generation, truck petroleum and industrial applications. Also, N C The Cat Rental Store.

info@maritimehelicopters.com www.maritimehelicopters.com

gina.heath@marshcreekllc.com www.marshcreekllc.com

www.mbakercorp.com

tmichaud@millionair.com www.millionair.com/FBO/anc.aspx

www.motionindustries.com

sfield@ncmachinery.com ncmachinery.com

www.akbizmag.com • Alaska Business Monthly • May 2012

105

Alaska business monthly’s 2012 oil & gAs DirectorY OILFIELD SUPPORT COMPANIES Top Executive

Company

Top Executive

NANA Construction LLC 1800 W 48th Ave., Ste. G Anchorage, AK 99517 Phone: 907-265-3600 Fax: 907-265-3699

Ralph McKee, Pres.

NANA Oilfield Services Inc. PO Box 340112 Prudhoe Bay, AK 99734 Phone: 907-659-2840 Fax: 907-659-2289

Brad Osborne, Pres.

NANA WorleyParsons PO Box 111100 Anchorage, AK 99511 Phone: 907-273-3900 Fax: 907-273-3990

Allan Dolynny, Pres./Gen. Mgr.

Naniq Global Logistics PO Box 240825 Anchorage, AK 99524 Phone: 907-345-6122 Fax: 907-345-6125

Mike Myatt, Ops Dir.

National Oilwell Varco 10330 Old Seward Hwy. Anchorage, AK 99515-2627 Phone: 907-522-3727 Fax: 907-522-3497

Ray Menzie, Mgr. DSC

NEI Fluid Technology 3408 Arctic Blvd. Anchorage, AK 99503 Phone: 907-561-4820 Fax: 907-562-2316

Kathryn Russell, Pres.

Nenana Heating Services Inc. PO Box 9 Nenana , AK 99760 Phone: 800-478-5447 Fax: 907-832-5491

AK Estab. Empls. AK Estab. Empls.

Services Business Activity

2008

175

Full service oilfield construction, fabrication, operations and maintenance capabilities.Truckable modules, Blast resistant walls and modules, Remote worker' camps, offices and office complexes, Envirovacs, Tool Cribs, Pipe and steel fabrication, Field Construction, Project and Construction Management.

1975

NANA Oilfield Services Inc. (NOSI) provides support services to companies active in oil exploration and development on Alaska’s North Slope. The company owns an oilfield service complex near the Deadhorse Airport and provides bulk fuel delivery, Chevron lubricants, and potable water across the North Slope.

1997

425

Project delivery company focused on multi-discipline engineering and design, procurement and construction management services for the hydrocarbons, power, minerals & metals, and infrastructure & envir

2005

Worldwide ground logistics, including ground, air, and ocean.

1987

Manufacture and distribution of oilfield parts and equipment.

1985

Petrochemical flow measurement and filtration experts.

1972

Offering a range of heating services, including home delivery service of oil and gasoline. Our service area includes Cantwell, Denali Park, Healy, Anderson and Nenana, and Kantishna.

1974

350

Full service general contractor specializing in multi-craft services to the oil and gas industry and inside/outside electrical and communication services to the power generation/distribution and communication industries.

mel.porter@nana.com www.nanaconstruction.com

www.nanaoilfield.com

info@nanaworleyparsons.com www.nanaworleyparsons.com

www.naniqglobal.com

raymond.nenzie@nov.com nov.com

sales@neifluid.com www.neifluid.com nenanaheatingservices.com

Norcon Inc. 4600 Debarr, Suite 100 Anchorage, AK 99508 Phone: 907-275-6300 Fax: 907-275-6300

Tom Arnold, Pres.

Nordic-Calista Services 4700 Business Park Blvd., Ste. 19 Anchorage, AK 99503 Phone: 907-561-7458 Fax: 907-563-8347

Ron Rowbotham, Pres.

1986

140

Workovers, completions, coiled tubing drilling, rotary drilling, remote camp leasing and catering services.

North Star Terminal & Stevedore Co. 790 Ocean Dock Rd. Anchorage, AK 99501 Phone: 907-263-0120 Fax: 907-272-8927

Jeff Bentz, Pres.

1950

100

Stevedore, marine logistics and operated crane services. We are also providing state of the art driven foundations with our ABI Mobile Ram Machines.

Northern Air Cargo 3900 Old International Airport Rd. Anchorage, AK 99502 Phone: 907-243-3331 Fax: 907-249-5191

David W. Karp, Pres./CEO

1956

325

The Northern Air Cargo family of companies offer scheduled and charter cargo services throughout Alaska, the Lower 48 and North America as well as aircraft maintenance and ground handling services.

Northwest Ironworkers EA 10828 Gravelly Lk. Dr. #212 Lakewood, WA 98499 Phone: 253.984.0514 Fax: none

Ron Piksa, Co-Chair

Northwest Technical Services 4401 Business Park Blvd., Bldg. N-26 Anchorage, AK 99503 Phone: 907-562-1633 Fax: 907-562-5875

Mary E. Shields, Gen. Mgr.

1980

100

"Connecting the right people to the right jobs"™ for Alaska businesses.

Offshore Systems Inc. (Dutch Harbor) Mile 4 Captains Bay Road Dutch Harbor , AK 99692 Phone: 907-581-1827 Fax: 907-581-1630

Rick Wilson , Business Manager

1982

Since 1983, Offshore Systems, Inc. (OSI) has been the premiere fuel and dock facility in Western Alaska.1,500 linear feet of dock space, around-the-clock stevedoring services, secure, dry warehousing and cold storage, and material handling equipment.

Offshore Systems, Inc. (Anchorage) 3301 C Street, Ste. 201 Anchorage , AK 99503 Phone: 907-646-4680 Fax: 907-646-1430

Rick Wilson, Business Manager

1982

OMSI oil and gas production platforms, back up oil spill response efforts, dock facility in Western Alaska with 1,500 linear feet dock space, stevedoring, warehousing, cold storage, material handling. Statewide service.

Oil & Gas Supply Co. 6160 Tuttle Pl. Anchorage, AK 99507 Phone: 907-344-2512 Fax: 907-349-7433

Jackie Brunton, Pres.

1995

Premier Aeroquip hydraulic distributor. Fabricator of industrial and hydraulic hose assemblies. Sales and repair of hydraulic motors,pumps,valves, and cylinders. Stocking Swagelok stainless tube, fittings and valves in Kenai warehouse.

106

www.norcon.com

sales@northstarak.com www.northstarak.com

info@nac.aero www.nac.aero

www.ironemployers.com

The Northwest Ironworkers Employers Association is a labor-management group that deals with common issues. Workplace safety, OSHA standards, Drug-Free-Workplace and more.

cwilsonpdstech.com www.nwtsak.com

www.offshoresystemsinc.com offshoresystemsinc.com

www.offshoresystemsinc.com

jb2inc@alaska.net

www.akbizmag.com • Alaska Business Monthly • May 2012

Alaska business monthly’s 2012 oil & gAs DirectorY OILFIELD SUPPORT COMPANIES Top Executive

Company

Top Executive

Olgoonik Oilfield Services 3201 C Street, Suite 700 Anchorage, AK 99503 Phone: 907-868-5112 Fax: 907-562-8751

Roger Chan, Pres.

Pacific Alaska Freightways Inc. 431 E. 104th Ave. Anchorage, AK 99515 Phone: 907-336-2567 Fax: 907-336-1567

Ed Fitzgerald, CEO

Pacific Environmental Corp. (PENCO) 6000 A St. Anchorage, AK 99518 Phone: 907-562-5420 Fax: 907-562-5426

Matthew Melton, Alaska Area Mgr.

Paramount Supply Company 7928 King Street Anchorage, AK 99518 Phone: 907-349-0280 Fax: 907-349-0281

Jay Goold, Branch Mgr.

Peak Oilfield Service Co., LLC 2525 C St. Anchorage, AK 99503 Phone: 907-263-7000 Fax: 907-263-7070

Mike O'Connor, President

Petro Marine Services 3111 C St., Suite 500 Anchorage, AK 99503 Phone: 907-562-5000 Fax: 907-273-8237

Carol Ann Lindsey, CEO

Petroleum Equipment & Service Inc. 5631 Silverado Way Anchorage, AK 99518 Phone: 907-248-0066 Fax: 907-248-4429

Kevin Durling, Pres.

AK Estab. Empls. AK Estab. Empls.

Services Business Activity

2009

Marine, air and land logistics support (offshore vessel support, supply chain management). Downhole tooling, drilling and work-over consultation (well plug and abandonment, site preparation and remediation, on-site supervision). Land based infrastructure and support personnel (facilities, aviation, exploration support).

1961

Transports freight between the Lower 48 and Alaska. Trucking services in Alaska.

1973

150

Pacific Environmental Corporation (PENCO) specializes in land and marine spill response, environmental cleanup and remediation, and marine vessel remediation. PENCO's array of environmental services includes supplying teams of highly skilled spill response technicians for emergency response.

1982

Paramount Supply Company is an industrial wholesaler, founded in 1954 by John Hagen. Paramount quickly built its reputation with quality products and exceptional service. That tradition which literally began out of the trunk of the founders car, continues today. Now serving Southeast Alaska with a sales office in Ketchikan!

1987

580

Oilfield general contracting, heavy civil construction, ice-road construction, heavy crane support, drilling support, all-terrain vehicle transportation and remote camps, power generation and communication facility fabrication.

1959

190

Serving the unique petroleum needs of a broad range of Alaskan industries, including fishing, home fuel sales, power generation, tourism, timber, transportation, construction, mining, and retail gasoline.

1983

We are in the business of supplying special products in the Alaska oil and gas market. Representing the following industry leaders: TESCO, Halliburton drill bits, Weatherford cementation products and Tam packers.

oilfield@olgoonik.com www.olgoonik.com

www.pafak.com

www.penco.org

jaygoold@paramountsupply.com www.paramountsupply.com

peak@peakalaska.com www.peakalaska.com

rogerb@harborent.com petromarineservices.com

sales@pesiak.com www.pesiak.com

Fueling Our Future Controlling interest in the 19,348 acre Umiat Oil Field within the National Petroleum Reserve - Alaska.

■ Oil & Gas ■ Underground

Alaska

Coal Gasification (UCG) & Gas to Liquids (GTL)

Oil and Gas exploration leases in the Cook Inlet.

Linc Energy’s GTL demonstration plant in Australia

UCG exploration licenses spanning 167,917 acres.

www.lincenergy.com www.akbizmag.com • Alaska Business Monthly • May 2012

107

Alaska business monthly’s 2012 oil & gAs DirectorY OILFIELD SUPPORT COMPANIES Top Executive

Company

Top Executive

Petrotechnical Resources of Alaska LLC 3601 C St., Ste. 1424 Anchorage, AK 99503 Phone: 907-272-1232 Fax: 907-272-1344

Tom Walsh, Managing Partner

Pinnacle Mechanical Inc. 5821Arctic Boulevard Unit D Anchorage , AK 99518 Phone: 907-336-4328 Fax: 907-376-4329

Janice Kittoe, Pres.

PND Engineers Inc. 1506 W. 36th Ave. Anchorage, AK 99503 Phone: 907-561-1011 Fax: 907-563-4220

David Pierce, PE, Pres.

Polar Supply Co. 300 E. 54th Ave. Anchorage, AK 99518-1230 Phone: 907-563-5000 Fax: 907-562-7001

Darin Coder, Sr. VP

Price Gregory International 301 W. Northern Lights Blvd., Ste. 300 Anchorage, AK 99503 Phone: 907-278-4400 Fax: 907-278-3255

David Matthews, VP, AK Area Mgr.

Production Testing Service 440 E. 100th Ave. Anchorage, AK 99515-2603 Phone: 907-344-2024 Fax: 907-344-2022

Robert Hoff, Pres./CEO

Professional Business Services 807 G St., Ste. 200 Anchorage, AK 99501 Phone: 907-279-2679 Fax: 907-276-5758

Joan Stolle, Pres.

108

AK Estab. Empls. AK Estab. Empls.

Services Business Activity

1997

100

Alaska's oil and gas consultants specializing in geoscience, engineering, project management, seismic and well data.

1999

Specializing in providing quality commercial and industrial plumbing, heating and air conditioning for new construction, remodels, and tenant improvements.

1979

PND provides general civil, structural, geotechnical, arctic, marine, coastal engineering, surveying, hydrology, inspection, permitting, cost administration, and more.

1985

Polar Supply is Alaska's leading supplier of industrial products and construction materials. Putting customer service first, Polar has consistently delivered for clients large and small. A Division of Spenard Builders Supply with locations in Anchorage, Fairbanks and Kenai.

1974

Pipeline, power, heavy industrial construction, EPC and consulting services. Infrastructure construction services provider.

1988

Well testing, equipment rental and engineering.

1978

Providing people for professional, technical, and administrative positions for oil and gas industry clients on a preferred and sole source contact basis. Staffing services include both contract and permanent positions.

info@petroak.com www.petroak.com

www.pinnaclemechanical.com

www.pndengineers.com

dshooner@polarsupply.com polarsupply.com

dmatthews@pricegregory.com www.pricegregory.com

ptsalaska@msn.com www.productiontestingservices.com

info@pbsjobs.com www.pbsjobs.com

www.akbizmag.com • Alaska Business Monthly • May 2012

Alaska business monthly’s 2012 oil & gAs DirectorY OILFIELD SUPPORT COMPANIES Top Executive

Company

Top Executive

PSC Environmental Services 8100 Petersburg Street Anchorage, AK 99507 Phone: 907-272-9007 Fax: 907-272-6805

Larry Reiter, Location Mgr.

Puget Sound Pipe & Supply Co. 2120 Spar Ave. Anchorage, AK 99501 Phone: 907-277-7473 Fax: 907-277-9656

Scott English, Alaska Sales Mgr.

Quality Equipment Sales & Services 11801 S. Gambell St. Anchorage, AK 99515 Phone: 907-349-6215 Fax: 907-349-2332

Ray Belanger, Pres.

Quantum Business Solutions 322 Deerfield Dr. Anchorage, AK 99515 Phone: 907-244-0045 Fax: 907-646-2281

Paula Lowther, Owner

Schlumberger Oilfield Services 2525 Gambell St., Ste. 400 Anchorage, AK 99503 Phone: 907-273-1700 Fax: 907-561-8317

Lees Rodionov, Gen. Mgr.

Security Aviation 6121 S. Airpark Place Anchorage, AK 99502 Phone: 907-248-2677 Fax: 907-248-6911

Stephen "Joe" Kapper, Pres.

Shoreside Petroleum Inc. 6401 Lake Otis Pkwy. Anchorage, AK 99507 Phone: 907-344-4571 Fax: 907-349-9814

Kurt Lindsey, President

AK Estab. Empls. AK Estab. Empls.

Services Business Activity

1972

Environmental services cleanup, disposal and recycling.

1984

Alaska's largest supplier of pipe, valves and fittings to Alaska oilfields. Two locations in Alaska: Anchorage and Kenai.

1982

Wholesale motor vehicle merchant. Thomas-Built buses, American La France Fire apparatus, Unimog All-Terrain truck, snow and ice control equipment, highway maintenance equipment, street sweepers and scrubbers. Automotive/truck up fitter & repair facilityt.

2010

HSSE consultation, ISNetworld and regulatory compliance, project logistics coordination, crew services, and on-location support services to the oil and gas industry. Located in Anchorage and Kenai.

1956

800

Provides people and technology, working together to offer exploration and production services during the life cycle of the oil and gas reservoir.

1985

24/7 on-demand aircraft charter services: express package service, passenger, freight and medical transportation.

1981

Fuel and lubricant distributor specializing in customer service while supplying Alaska industry: oil and gas, construction, commercial fishing, marine, aviation, trucking and retail/commercial petroleum fueling sites.

www.pscnow.com

senglish@pspipe.com www.pugetpipe.com

quality@ak.net www.quessak.com

paula@qbsak.com www.qbsak.com

www.schlumberger.com

sales@securityaviaition.biz www.securityaviation.biz

info@shoresidepetroleum.com www.shoresidepetroleum.com

www.akbizmag.com • Alaska Business Monthly • May 2012

109

Alaska business monthly’s 2012 oil & gAs DirectorY OILFIELD SUPPORT COMPANIES Top Executive

Company

Top Executive

Siemens Industry Inc. 5333 Fairbanks St., Unit B Anchorage, AK 99518 Phone: 907-563-2242 Fax: 907-563-6139

Leverette Hoover, Gen. Mgr. Alaska

SLR International Corp. 3401 Minnesota Dr. Anchorage, AK 99503 Phone: 907-563-2137 Fax: 907-563-2164

Brian G. Hoefler, SLR Alaska Mgr.

Span Alaska Transportation, Inc. PO Box 878 Auburn, WA 98071 Phone: 253-395-7726 Fax: 253-395-7986

Mike Landry, Pres.

Spill Shield Inc. 5610 Silverado Way, Ste. A10 Anchorage, AK 99518 Phone: 907-561-6033 Fax: 907-561-4504

Ken Bauer, Sales Mgr.

Steelfab 2132 Railroad Ave. Anchorage, AK 99501 Phone: 907-276-4303 Fax: 907-276-3448

Richard Faulkner, Pres.

Steigers Corporation 791 South Park Dr., Ste. 800 Littleton, CO 80120-5719 Phone: 907-264-6715 Fax: 800-935-6569

William D. Steigers, Chairman/CEO

Superior Machine & Welding Inc. 1745 Ship Ave. Anchorage, AK 99501 Phone: 907-278-3944 Fax: 907-277-4999

Jantina Lunsford, Pres.

AK Estab. Empls. AK Estab. Empls.

Services Business Activity

1982

Energy Services Company (ESCO)/Total Building Integrator: to include Building Automation/Energy Managenment Control Systems, Fire alarm, HVAC mechanical systems, security (card access, CCTV, intrusion, etc.), audio & video solutions and mass notification systems.

2001

100

Air permitting, air measurements, project permitting, environmental compliance, site investigation, remediation, risk assessment, oil spill contingency planning.

1978

Freight transportation services to and from Alaska, less-than-truckload and truckload. Steamship and barge service to Railbelt area of Alaska. Barge service to Juneau and Southeast Alaska. Overnight service from Anchorage to Fairbanks and the Kenai Peninsula.

1992

Supplier for Smart Ash, Oil Away, Drug Terminator and MediBurn incinerators. Absorbents, Water Scrubbers, Oil spill response kits and related oil spill cleanup products. We also supply the Titan fluid recycler that will clean diesel fuel or low viscosity hydraulic oil at 3 or 6 gallons per minute.

1988

Alaska Steel Source

2004

Steigers Corporation is a full-service environmental consulting firm providing a wide range of services for industrial projects. We specialize in project development and in managing complex environmental and permitting programs.

1950

Full service machining shop and oilfield servicing company.

leverette.hoover@siemens.com www.siemens.com

bhoefler@slrconsulting.com www.slrconsulting.com

kathyL@spanalaska.com www.spanalaska.com

spillshield@ak.net www.spillshield.com

steelfabak.com

wdsteigers@steigers.com www.steigers.com

smwjal@acsalaska.net superiormachine.net

Advertise directly to your customers

Bill Morris Advertising Account Manager b_morris@akbizmag.com

Eighty-two percent of our 100,000+ monthly readers are Alaska business owners, CEOs or upper-level decision-makers. Give Bill a call to see how he can help your marketing plans be a success.

(907) 276-4373 or cell (907) 268-0052

www.akbizmag.com

110

www.akbizmag.com • Alaska Business Monthly • May 2012

Alaska business monthly’s 2012 oil & gAs DirectorY OILFIELD SUPPORT COMPANIES Top Executive

Company

Top Executive

Surveyors Exchange Co. 3695 Springer St. Anchorage, AK 99503 Phone: 907-561-6501 Fax: 907-561-6525

David Larry Wilmarth, Owner

Taiga Ventures 2700 S. Cushman St. Fairbanks, AK 99701 Phone: 907-452-6631 Fax: 907-451-8632

Mike Tolbert, Pres.

TecPro Ltd. 816 E Whitney Rd Anchorage, AK 99501 Phone: 907-348-1800 Fax: 907-348-1830

Cynthia Saunders, Pres.

TrailerCraft | Freightliner of Alaska 1301 E. 64th Ave. Anchorage, AK 99518-1908 Phone: 907-563-3238 Fax: 907-562-6963

Lee McKenzie, Pres./Owner

TransCanada Corp. 3201 C St., Ste. 505 Anchorage, AK 99503 Phone: 907-433-4001 Fax: 907-263-7904

Tony Palmer, VP, Major Projects

Tri-Jet Manufacturing Services 1960 S. Eklutna St. Palmer, AK 99504 Phone: 907-745-6900 Fax: 907-746-8015

Ehren Wiener, Ops Mgr.

AK Estab. Empls. AK Estab. Empls.

Services Business Activity

1969

Satellite phone and two-way radio specialists, auto-desk software, surveying instruments, sales, rentals and service.

1979

Provides all supplies necessary for remote work. Provides logistical support (portable camp, food and vehicles) for environmental cleanups statewide. Full-scale expediting service to include well and water monitoring pipe and supplies.

1997

TecPro offers Electrical Contracting Services, UL Listed Industrial Controls integration, and Video Security Integration services. Specialities include SCADA & PLC design, fabrication, installation, and programming.

1969

Freightliner distributor, parts, sales and service for all transport equipment.

1951

TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure, including natural gas and oil pipelines, power generation and gas storage facilities. For more information visit: www.transcanada.com.

2004

Waterjet cutting Powder coating Ceramic coating Welding and Fabrication Machining 3D Modeling, drafting

2003

Portable gas detection, health and safety monitoring, environmental equipment. Rentals, sales, service and supplies. Warranty center. Woman-owned small business.

garza@tse-ak.com tse-ak.com

taiga@taigaventures.com www.taigaventures.com

info@tecpro.com TecPro.com

sales@trailercraft.com www.trailercraft.com

info@thealaskapipelineproject.com www.transcanada.com

ewiener@trijetprecision.com trijetprecision.com

TTT Environmental Instruments & Supplies Deborah Tompkins, Owner 4201 B St. Anchorage, AK 99503 info@tttenviro.com Phone: 907-770-9041 Fax: 907-770-9046 www.tttenviro.com

Infrastructure Risk Assessment

Because what’s in the system should stay in the system. Nondestructive Testing External and Internal Corrosion Investigations

Integrity Program Management Quality Program Support

Learn more about how we help you ensure the safety of your workforce and enhance the reliability and integrity of your facilities by visiting our website www.kakivik.com Phone: 907.770.9400

email: info@k akivik.com

aL ask an-owned and aL ask an-oper ated

www.akbizmag.com • Alaska Business Monthly • May 2012

111

Alaska business monthly’s 2012 oil & gAs DirectorY OILFIELD SUPPORT COMPANIES Top Executive

Company

Top Executive

Tutka LLC (Anchorage) 620 E. Whitney Rd., Ste. B Anchorage, AK 99501 Phone: 907-272-8010 Fax: 907-272-9005

Keith Guyer, Ops Mgr.

Tutka LLC (Fairbanks) 3002 Industrial Ave., #1 Fairbanks, AK 99701 Phone: 907-452-7100 Fax: 907-452-7102

Mick Neary, Project Mgr.

Tutka LLC (Wasilla) 5825 E. Mayflower Crt., Ste. B Wasilla, AK 99654 Phone: 907-357-2238 Fax: 907-357-2215

Amie Sommer, Member

Udelhoven Oilfield System Service 184 E. 53rd Ave. Anchorage, AK 99518-1222 Phone: 907-344-1577 Fax: 907-344-5817

Jim Udelhoven, CEO

UMIAQ 6700 Arctic Spur Rd. Anchorage, AK 99518 Phone: 907-677-8220 Fax: 907-677-8286

Richard Reich, PE, Gen. Mgr.

Unique Machine LLC 8875 King Street Anchorage, AK 99515 Phone: 907-563-3012 Fax: 907-562-1376

Patrick M. Hanley, VP & Gen. Mgr.

Unitech of Alaska 7600 King St. Anchorage, AK 99518 Phone: 907-349-5142 Fax: 907-349-2733

Don Rogahn, Pres.

112

AK Estab. Empls. AK Estab. Empls. 1999

WBE/DBE (DOT&PF, MOA), WOSB, CCR/ORCA registered. General Contractor, heavy civil construction, environmental cleanup and consulting, wastewater pre-treatment systems operations and maintenance services.

1999

WBE/DBE (AK DOT&PF, MOA), WOSB, CCR/ORCA registered. General Contractor, heavy civil construction, environmental cleanup and consulting, oil water separator & grease traps maintenance services.

1999

Certified DBE/WBE (ADOT&PF, MOA),WOSB, CCR/ORCA registered. General Contractor, heavy civil construction, environmental cleanup and consulting, wastewater pre-treatment systems operations and maintenance services.

1970

819

Oilfield services, construction management, electrical and mechanical system installation.

1982

Regulatory planning, stakeholder relations, architecture, engineering, surveying, geospatial analysis, response planning and operations, civil construction, arctic science support, and full-service camps.

1974

The design, development, manufacture and distribution of oilfield, construction, mining, fishing, and government parts to industry quality standards.

1985

Full-service oil spill remediation/environmental/industrial/safety supplies. Sorbents/ drums-steel-poly and fiber/portable tanker/boom/berms and incinerators.

keith@tutkallc.com www.tutkallc.com

mick@tutkallc.com www.tutkallc.com

amie@tutkallc.com www.tutkallc.com

rfrontde@udelhoven.com www.udelhoven.com

info@uicumiaq.com www.ukpik.com

pat.hanley@umalaska.com www.umalaska.com

info@unitechofalaska.com www.unitechofalaska.com

Services Business Activity

www.akbizmag.com • Alaska Business Monthly • May 2012

Alaska business monthly’s 2012 oil & gAs DirectorY OILFIELD SUPPORT COMPANIES Top Executive

Company

Top Executive

URS Corporation 700 G St., Ste. 500 Anchorage, AK 99501 Phone: 907-562-3366 Fax: 907-562-1297

Joe Hegna, Alaska Ops Mgr./VP

Washington Crane & Hoist 1200 E. 76th Ave. Suite 1202 Anchorage, AK 99518 Phone: 907-336-6661 Fax: 907-336-6667

Mike Currie, VP

Waste Management 310 K St., Ste. 200 Anchorage, AK 99501 Phone: 907-264-6784 Fax: 907-264-6602

Mike Holzschuh, Territory Mgr./N.Am.

Weona Corp. 10501 Olive Ln. Anchorage, AK 99515-2622 Phone: 907-344-1921 Fax: 907-344-8244

Edward Wrede Sr., Pres.

West-Mark Fairbanks Service Center 3050 Van Horn Rd. Fairbanks, AK 99709 Phone: 907-451-8265 Fax: 907-451-8273

Grant Smith, CEO

Weston Solutions Inc. 425 G St. Anchorage, AK 99501 Phone: 907-276-6610 Fax: 907-276-6694

Patrick Flynn, Alaska Ops Mgr.

Yukon Equipment Inc. 2020 E. Third Ave. Anchorage, AK 99501 Phone: 907-277-1541 Fax: 907-258-0169

Morry Hollowell, Pres.

AK Estab. Empls. AK Estab. Empls.

Services Business Activity

1904

150

Civil/structural/transportation engineering design services, analysis/response, containment sites, cultural/historical/archaeological/land use/noise & threatened/ endangered species studies, fisheries/geology/soils expertise, GIS/AutoCAD, Section4f evaluations, wetland delineation, wildlife/vegetation/socioeconomic analyses.

1975

Crane builders, crane design, new crane sales, new hoist sales, lifting equipment design and sales. material handling solutions for industry, hoists, job cranes, work stations, chain falls, lever hoists, crane upgrades, crane maintenance, crane inspection, crane repair, hoist repair, crane parts.

1969

Hazardous and nonhazardous waste disposal, project management, complete logistical oversight, complete U.S. and Canadian manifesting, rail transportation, over-the-road transportation, marine transportation and turnkey remedial services.

1981

Steel fabrication.

2009

Liquid Transportation | Tank Repair

2001

Upstream oil and gas support including permitting, construction management, incident response and remediation.

1945

Sales, service, parts, rental and lease equipment, including Case, Trail King, Elgin, Vactor, Oshkosh, Etnyre, Monroe, Trackless, Bomag, Thawzall, Snow Dragon. Fairbanks location: 3511 International St.; phone: 907-457-1541; fax: 907-457-1540. Yukon became part of the Calista Corporation in 2010.

www.urscorp.com

www.washingtoncrane.com

mholzschuh@wm.com www.wm.com

weonacorp@gci.net

wwalker@west-mark.com www.west-mark.com

Robert.Hunter@westonsolutions.com westonsolutions.com

info@yukoneq.com www.yukoneq.com

www.akbizmag.com • Alaska Business Monthly • May 2012

113

ALASKA THIS MONTH Compiled By Nancy Pounds

DINING •••

Photo by Susan Harrington

Dining Decisions made easy

Moose's Tooth Pub and Pizzeria is an Alaska favorite.

laskans planning a special culinary adventure can visit urbanspoon. com for reviews and reservations. The website collects local restaurant reviews from diners, blogs, newspapers and professional food critics, and provides information for restaurants in the United States, Canada, Australia and the United Kingdom. The website features eateries sorted by neighborhood, cuisine type or price, including 30 glutenfree friendly restaurants—with Moose’s Tooth Pub and Pizzeria garnering the most votes—and 140 kid-friendly spots. Popular romantic restaurants include Aladdin’s Fine Mediterranean Cuisine and Crush Wine Bistro and Cellar. Reviews are as varied as epicurean favorites. Urbanspoon. com also offers mobile apps for iPhone, iPad, Android, Kindle Fire, Blackberry and mobile websites. The company has gained some recognition for its slotmachine style program, which randomly picks a locale for undecided diners. The online restaurant guide also offers a reservations system. Search “Alaska restaurants” for statewide offerings. “The site is a fantastic city guide to help navigate restaurants in specific neighborhoods and even by type of food,” said company spokeswoman Aimee Yoon. “It is a great tool for discovery when visiting new towns.” q

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www.akbizmag.com • Alaska Business Monthly • May 2012

ALASKA THIS MONTH Compiled By Nancy Pounds

TRAVEL •••

Photos courtesy of Kenai Watershed Forum

kenai Welcomes Feathered Visitors

oth birds and humans flock to the Kenai Birding Festival, set for May 17-20 at the Kenai Visitors & Cultural Center located at 11471 Kenai Spur Highway in Kenai. The four-day festival is sponsored by Kenai National Wildlife Refuge, and includes nationally recognized speakers, field trips, craft sessions, bird identification workshops, birding float trips down the Kenai River, a children’s program and more. Started in 2005 with a few bird-identification workshops Participants in the Kenai and a trip to the Kenai flats, Birding Festival scan the the festival’s original focus was area for spring migratory to address local residents’ bird- visitors. This year’s festival ing interests and widespread is May 17-20. reluctance to make an hourplus drive to Homer to attend the annual Kachemak Bay Shorebird Festival. The Kenai Birding Festival now boasts attendees from Anchorage and even out-of-state, according to Todd Eskelin, a biological technician who works for KNWR. This year’s featured speakers are Bill Thompson and Julie Zickefoose. Thompson, the editor of Bird Watcher’s Digest, has written “The Young Birder’s Guide to Birds of Eastern North America.” Zickefoose is an author and illustrator who has painted several illustrations for the cover of Bird Watcher’s Digest. Her new book, due this spring, is “The Bluebird Effect: Uncommon Bonds with Common Birds.” Visit www.kenaibirdfest.com for more information. q

It’s easy to join our email list! Send your email address by text message. Text ABM to 22828 to get started

www.akbizmag.com • Alaska Business Monthly • May 2012

115

ALASKA THIS MONTH Compiled By Nancy Pounds

ENTERTAINMENT •••

Photo courtesy of Anchorage Community Theatre

sherlock holmes with a twist

uper-sleuth Sherlock Holmes investigates the latest crimes this month in Anchorage, confronting his nemesis and matching wits with his one true love. Anchorage Community Theatre’s production, “Sherlock Holmes, The Final Adventure,” runs Thursdays through Sundays through May 20 at 133 E. 70th Ave., off the Old Seward Highway. The play, based on an 1899 script by Sir Arthur Conan Doyle, was adapted in 2006 by Steven Dietz. “The script combines two of the best Sherlock Holmes stories, ‘A Scandal in Bohemia’ and ‘The Final Problem,’” said Schatzie Schaefers, director of the ACT production. By mingling the stories, Sherlock Holmes interacts with his enemy Professor Moriarty and Irene Adler, famous as Holmes’ love interest, she said. According to Schaefers, Doyle wrote “The Final Problem” to kill off Sherlock Holmes and pursue other writing instead. London fans were distraught, so the author rewrote the ending and continued penning Sherlock Holmes adventures. Kevin Bennett will play Sherlock Holmes with Todd Sherwood as Moriarty and Lindsay Lamar as Irene Adler. The show should appeal to literary buffs and fans of the recent Robert Downey Jr. movies, Schaefers said, adding: “I think Sherlock Holmes has universal appeal.” q

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www.akbizmag.com • Alaska Business Monthly • May 2012

EVENTS CALENDAR Anchor Point

25-27 Memorial Weekend Family Fun Festival Events include free cookouts, pancake breakfast, games for kids of all ages, teen and adult softball and home run derby, music and lots of fun. VFW and American Legion Memorial Day services at local cemeteries. anchopointchamber.org

AnchorAge

5-6 Alaska Bead & Gem Show Shop for beads, findings, vintage glass and Lucite, pearls, bone, semiprecious gemstones, sterling silver, gold, Czech glass, vintage Swarovski crystal, recycled glass, seed beads, trade beads, finished jewelry and more. Crowne Plaza Hotel Anchorage, 10 a.m. to 6 p.m. Free admission. abgs.vweb.com 5 Beethoven’s Symphony No. 9 Anchorage Concert Chorus joins Anchorage Youth Symphony and conductor Linn Weeda for this special event. alaskapac.centertix.net 12 Faster Than a Falcon 5K Run Be a part of this 3rd annual race. This flat and fast 3.1 mile race will start at Clark Middle School and run through the Mountain View community. A special prize will be awarded to anyone who can finish ahead of the Falcon mascot (The runner dressed as the falcon will run the 5k in about 28 minutes). fasterthanafalcon.info 12 Anchorage Ballet’s Spring Celebration Ballet dance concert with special guest performances. This event is part of Anchorage Ballet’s 2011-2012 season. Runs approximately two hours, including intermission. Held at the Center for Performing Arts. alaskapac.centertix.net 13 Babes in Arms A group of young performers use their conviction to mount the original revue they’ve created, while dodging the underhanded attempts of the surly theatre owner to squash their efforts at every turn, complicated by the overbearing stage mother of a beautiful ex-child star and the inflated ego of a hack Southern playwright. APU Grant Hall. tbatheatre.org

FAirbAnks

5 Zymurgist Borealis Big Brew Celebration National Homebrew Day commemorates the legalization of homebrewing. There will be a potluck and homebrew made to sample. The meeting will take place rain, snow or shine at Chena Pump Campgrounds. Contact: 907-474-2138 or email stihlerunits@mosquitobytes.com 6 The Breakup Tri Swim a quarter mile, bike 10 miles, run 3.1 miles race. Held at University of Alaska Fairbanks, 12 p.m. Contact: (907)-378-0476 or email thebreakuptri@hotmail.com

JuneAu

1-31 Spring King Salmon Derby Sponsored by the Tlingit and Haida Alumni Scholarship Program, proceeds from this annual derby fund scholarships for tribal enrollees. Cash prizes are awarded. springkingderby.org 4-27 Bigfoot and Other Lost Souls Perseverance Theatre wraps up its 2011-12 main stage season with the world premiere of Bigfoot and Other Lost Souls. perseverancetheatre.org 4-19 Juneau Jazz & Classics Nationally recognized for its line-up of world-class artists, this unique event offers a spectacular mix of blues, jazz and classical performances, workshops and family entertainment in an array of venues including aboard boats for the popular “classical and blues cruises.” jazzandclassics.org 19 Sea Coast Relay Five-leg relay with varied distances. Start time is 9 a.m. at the Lena Picnic Area. Race ends at the University of Alaska Southeast campus. southeastroadrunners.org

ketchikAn

5 International Pilot Bread Festival Celebrate Sailor Boy’s Pilot Bread and Alaskan Heritage with arts, crafts, food and more. Saxman Community Center. ketchikanarts.org

koDiAk

24-28 Kodiak Crab Festival Annual celebration on Memorial Day weekend is five days of food, fun, events, entertainment and activities, including arts and crafts shows and sales, races (survival suit, kayak, bike, rubber ducky, Pillar Mountain Marathon), music, and other contests. kodiak.org

Petersburg

17-20 Velkommen til Petersburg Come to Alaska’s Little Norway and celebrate the signing of Norway’s Constitution. Great music, indoor and outdoor dances, annual Mitkof Mummer’s Melodrama, rosemaling classes, parade, pageant and more. petersburg.org

seWArD

19-20 Seward Harbor Opening Share in the blessing of the fleet, watch the boat parade, or hop aboard with an open house on the US Coast Guard Cutter Mustang and other vessels. Walk the docks and join in on other activities in and around the marina, including business open houses and specials. sewrd.com

tAlkeetnA

7 NOMAR 16th Annual Amateur Photo Contest Exhibit will be displayed May 9-31 at NOMAR, 104 E. Pioneer Ave. Contact: 907-235-8363. nomaralaska.com

26 Spring Wine Dinner Join Executive Chef Matt Zimny as he crafts a delicious array of tantalizing foods to please the palate, while Food and Beverage Director Fernando Salvador carefully selects the perfect wine for each course. talkeetnalodge.com

10-13 Kachemak Bay Shorebird Festival Celebrate the 20th anniversary. Four-day weekend, filled with events and activities for birders of all ages and skill levels, with plenty for nonbirders as well. The festival has more than 50 workshops, presentations and field events, plus art and entertainment activities. homeralaska.org

5/1-9/15 Whittier Fish Derby Fish on! Join the Whittier Fish Derby throughout the summer. Halibut Derby will be based on a slot-limit fish, NOT the largest fish. Silver Salmon Derby will be based on the largest fish type. whittieralaskafishderby.org

homer

Whittier

www.akbizmag.com • Alaska Business Monthly • May 2012

117

LOCAL NEWS

Independents in Spenard Join Forces New Chamber of Commerce created BY JOETTE STORM

118

“We’re a bunch of freewheeling independent businesses tethered to the same three-mile strip of asphalt and to the boundless notoriety of Spenard.”

Photo by Gene Storm

mall business is alive and well in Alaska, and its capital is Spenard. Once the butt of jokes about its winding main street and quirky culture, this Anchorage neighborhood now has its own brand new Chamber of Commerce to advocate for the locally owned businesses and their needs. Barb Smart, president of the Spenard Chamber and owner of Alaska Leather, says there are nearly 500 businesses in the area defined by Hillcrest Drive and International Airport Road, stretching west from C Street to Lake Hood near Ted Stevens Anchorage International Airport. “Spenard has an abundant variety of successful, independent businesses that offer some unique opportunities. It is like a little city with every service one needs,” she says. It’s also the hippest neighborhood in Anchorage, with dozens of ethnic restaurants and shops for books, art and hobby supplies, baked goods and scads of services from tailors to chiropractors. One resident calls it the “muscle power” area for its sports shops like AMH, REI, Inner Dance Yoga Studio and several bicycle shops. New businesses such as Spenard Roadhouse chose to locate there. And three years ago, tapping into the sustainability movement as a way to build community, locals Mark Butler and Rene Haag, organized the Saturday Market in the Chilkoot Charlie’s parking lot. It has been wildly successful attracting shoppers from all over town. But why a staid chamber of commerce for such an offbeat area? The issue that sparked the organizing effort was the proposed redesign of

–John Weddleton, Bosco’s Comics

Spenard Road between Hillcrest Drive and 30th Avenue, according to John Weddleton, Bosco’s Comics. “After the long drawn out conflict over Arctic Boulevard, many businesses and residents decided we should present a unified position supporting a design that does not require taking any property from the adjacent businesses,” he recalls. Vehicle and pedestrian safety and urban renewal are values they wanted incorporated in the redesign. Residents feel their investments in landscaping and buildings have not been met with improvement to the roadway. They want to be able to compete with new retail developments in other areas of the municipality where State and Municipal dollars have improved roads. “We want our customers to be able to safely access parking lots and businesses and be able to walk between businesses safely,” Weddleton says. “And because we are open year round, we must have adequate snow storage areas.” The group has done its research on costs and safety and is urging the municipality to move ahead with a design that combines three and four lanes,

Barb Smart, owner of Alaska Leather, recently upgraded her business by moving to a former restaurant in Spenard on the corner of Minnesota and Spenard Road. She says the variety of independent businesses makes Spenard the place to shop in Anchorage.

while meeting national standards at a lower cost. In addition to offering such advocacy for the businesses, the group hopes a chamber will provide a platform for working together to keep Spenard the vibrant shopping, dining and entertainment district started in 1916 by a character named Joe Spenard. “We’re a bunch of free-wheeling independent businesses tethered to the same three-mile strip of asphalt and to the boundless notoriety of Spenard,” says Weddleton, who designed the chamber’s snazzy website spenard.biz. The website features Spenard’s history with anecdotes about Joe Spenard, the nightclub owner for whom the neighborhood is named. q

www.akbizmag.com • Alaska Business Monthly • May 2012

ALASKA TRENDS By Paul Davidson

Construction Employment

Alaska Trends, an outline of significant statewide statistics, is provided by the University of Alaska Center for Economic Development.

Alaska's resilience

onstruction employment Percent Change in Construction Employment statistics are gathered by 2002-2010 the United State Bureau 10% of Labor Statistics and the US Census Bureau. The US con5% struction industry is supported by more self-employed workers 0% than most, with 60.9 percent of construction managers and 44.9 percent of painters and paper- -5% hangers self-employed. Alaska The recent recession beU.S. ginning at the end of 2007 -10% significantly decreased new construction. However, rising -15% energy costs have driven growth in energy efficiency renovations -20% to existing buildings. US construction employment exhibits significant seasonal variation with a 10 percent average increase from January to August. Between 2006 decrease from its peak average yearly employment of 2005 and 2011, US construction employment suffered a 28 to its low in 2010. The chart shows shrinking decreases in percent decrease, significantly more than its 10 percent construction employment starting in 2009 in both Alaska average seasonal variation. and the rest of the nation. The US BLS predicts a posiAlaska construction employment experiences a 58 per- tive employment trend will continue with robust gains in cent average seasonal variation but only saw a 13 percent construction employment through 2018. q SOURCE: US Bureau of Labor Statistics, US Census Bureau

ALASKA TRENDS HAS BEEN BROUGHT TO YOU THIS MONTH COURTESY OF AMERICAN MARINE/PENCO

www.akbizmag.com â&#x20AC;˘ Alaska Business Monthly â&#x20AC;˘ May 2012

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ALASKA TRENDS

indicator

generAl Personal Income — Alaska Personal Income — United States Consumer Prices — Anchorage Consumer Prices — United States Bankruptcies Alaska Total Anchorage Total Fairbanks Total emPloYment Alaska Anchorage & Mat-Su Fairbanks Southeast Gulf Coast Sectorial Distribution — Alaska Total Nonfarm Goods Producing Services Providing Mining and Logging Mining Oil & Gas Construction Manufacturing Seafood Processing Trade/Transportation/Utilities Wholesale Trade Retail Trade Food & Beverage Stores General Merchandise Stores Trans/Warehouse/Utilities Air Transportation Truck Transportation Information Telecommunications Financial Activities Professional & Business Svcs Educational & Health Services Health Care Leisure & Hospitality Accommodation Food Svcs & Drinking Places Other Services Government Federal Government State Government State Education Local Government Local Education Tribal Government Labor Force Alaska Anchorage & Mat-Su Fairbanks Southeast Gulf Coast Unemployment Rate Alaska Anchorage & Mat-Su

120

Previous report Period

Year Ago Period

Year over Year change

units

Period

latest report Period

US $ US $ 1982-1984 = 100 1982-1984 = 100

3rd Q11 3rd Q11 2nd H11 2nd H11

32,574 12,953,429 202.58 226.28

32,564 12,934,733 200.28 223.60

31,751 12,441,541 195.455 218.576

2.59% 4.11% 3.64% 3.52%

Number Filed Number Filed Number Filed

January January January

56 40 5

72 53 15

52 8 64

7.69% 400.00% -92.19%

Thousands Thousands Thousands Thousands Thousands

January January January January January

332.76 186.90 42.27 34.74 34.83

338.02 190.50 44.29 35.60 34.97

327.38 184.80 42.31 33.89 33.37

1.64% 1.14% -0.09% 2.51% 4.39%

Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands

January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January January

308.5 36.8 271.7 15.4 15.3 12.8 11.6 9.8 7.0 59.3 5.9 3.4 6.1 9.8 19.6 5.5 3.0 6.3 4.1 14.5 25.6 45.4 31.7 27.8 5.6 18.2 10.6 82.2 15.9 24.1 6.5 42.2 25.2 3.7

313.2 33.5 279.7 15.9 15.8 13.1 12.4 5.2 2.3 61.6 6.0 35.1 6.3 10.0 20.5 5.6 3.1 6.4 4.1 14.8 26.6 45.1 31.8 28.5 5.8 18.5 10.8 85.9 16.3 26.2 8.5 43.4 25.6 4.0

308.8 37.6 271.2 14.8 14.7 12.5 12.3 10.5 7.3 58.9 6.0 34.0 5.9 9.4 18.9 5.3 2.8 6.3 4.1 14.4 25.4 43.5 30.8 27.5 6.0 17.9 11.0 84.2 16.6 25.1 7.5 42.5 25.1 3.5

-0.10% -2.13% 0.18% 4.05% 4.08% 2.40% -5.69% -6.67% -4.11% 0.68% -1.67% -90.06% 3.39% 4.48% 3.70% 3.77% 7.14% 0.00% 0.00% 0.69% 0.79% 4.37% 2.92% 1.09% -6.67% 1.68% -3.64% -2.38% -4.22% -3.98% -13.33% -0.71% 0.40% 5.71%

Thousands Thousands Thousands Thousands Thousands

January January January January January

361.99 200.55 45.69 38.06 38.64

365.71 203.24 47.45 38.68 38.87

359.28 200.10 45.95 37.56 37.55

0.76% 0.23% -0.57% 1.33% 2.90%

Percent Percent

January January

8.1 6.8

7.6 6.3

8.8 7.6

-7.95% -10.53%

(revised)

www.akbizmag.com • Alaska Business Monthly • May 2012

ALASKA TRENDS Previous report Period

Year Ago Period

Year over Year change

units

Period

latest report Period

Percent Percent Percent Percent

January January January January

7.5 8.7 9.9 8.8

6.7 8 10 8.3

7.9 9.6 11.1 9.8

-5.06% -9.38% -10.81% -10.20%

Millions of Barrels Billions of Cubic Ft. $ per Barrel

18.36 10.07 119.65

18.34 9.59 106.55

14.38 12.95 92.56

27.72% -22.28% 29.27%

Active Rigs Active Rigs $ Per Troy Oz. $ Per Troy Oz. Per Pound

January January January January January January January January January

8 2003 1,656.11 30.77 1.03

8 2002 1,652.52 30.41 0.96

7 1711 1,358.44 28.40 1.23

14.29% 17.07% 21.91% 8.33% -16.49%

Millions of $ Millions of $ Millions of $

January January January

18.10 4.99 13.11

8.21 2.65 5.56

27.39 6.93 20.46

-33.94% -28.04% -35.94%

Total Deeds

January

845

1093

829

1.93%

Visitor inDustrY Total Air Passenger Traffic — Anchorage Total Air Passenger Traffic — Fairbanks

Thousands Thousands

January January

NO DATA 62.13

NO DATA 66.68

329.74 68.78

NO DATA -9.66%

AlAskA PermAnent FunD Equity Assets Net Income Net Income — Year to Date Marketable Debt Securities Real Estate Investments Preferred and Common Stock

Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $

January January January January January January January

40,076.90 40,710.90 85.4 1,341.2 123.6 37.80 1,044.9

38,646.70 39,007.80 193.4 (5.8) 61.9 1.10 (209.8)

38,896.10 39,450.30 203 $409.8 -7.4 77.7 224.1

3.04% 3.20% -57.93% 227.28% 1770.27% -51.35% 366.27%

bAnking (excludes interstate branches) Total Bank Assets — Alaska Cash & Balances Due Securities Net Loans and Leases Other Real Estate Owned Total Liabilities Total Bank Deposits — Alaska Noninterest-bearing deposits Interest- bearing deposits

Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $ Millions of $

3rd Q11 3rd Q11 3rd Q11 3rd Q11 3rd Q11 3rd Q11 3rd Q11 3rd Q11 3rd Q11

2,105.62 49.64 156.23 1,097.05 7.05 1,847.06 1,800.05 543.72 1,256.33

2,050.03 51.85 158.58 1,098.51 6.21 1,796.24 1,756.69 643.96 1,114.74

2,068.99 37.35 131.40 1,110.96 15.76 1,823.80 1,785.53 479.89 1,305.64

1.77% 32.91% 18.90% -1.25% -55.26% 1.28% 0.81% 13.30% -3.78%

Foreign trADe Value of the Dollar In Japanese Yen In Canadian Dollars In British Pounds In European Monetary Unit In Chinese Yuan

Yen Canadian $ Pounds Euro Yuan

January January January January January

76.96 1.02 0.64 0.78 6.31

77.84 1.02 0.64 0.76 6.36

82.51 0.99 0.63 0.75 6.60

-6.73% 2.13% 1.62% 3.55% -4.30%

indicator

Fairbanks Southeast Gulf Coast United States Petroleum/mining Crude Oil Production — Alaska Natural Gas Field Production — Alaska ANS West Cost Average Spot Price Hughes Rig Count Alaska United States Gold Prices Silver Prices Zinc Prices reAl estAte Anchorage Building Permit Valuations Total Residential Commercial Deeds of Trust Recorded Anchorage — Recording District

(revised)

www.akbizmag.com • Alaska Business Monthly • May 2012

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ADVERTISERS INDEX Able Body Shop . . . . . . . . . . . . . . . . . . . .58 Alaska Air Cargo . . . . . . . . . . . . . . . . . . .63 Alaska Air Transit . . . . . . . . . . . . . . . . . .114 Alaska Dreams Inc. . . . . . . . . . . . . . . . .100 Alaska Housing Finance Corp. . . . . . . .123 Alaska Media Directory . . . . . . . . . . . . . .49 Alaska Northern Outfitters . . . . . . . . . . . .25 Alaska Regional Hospital. . . . . . . . . . . . .48 Alaska Rubber . . . . . . . . . . . . . . . . . . . .105 Alaska Seafood Marketing Institute. . . . .52 Alaska Traffic Co. . . . . . . . . . . . . . . . . . . .61 Alaska USA Federal Credit Union . . . . . .29 Allure Hair Design & Day Spa . . . . . . . .115 American Marine | PENCO . . . . . . . . . .119 Anchorage Opera. . . . . . . . . . . . . . . . . .116 Arctic Controls . . . . . . . . . . . . . . . . . . . . .80 Arctic Office Products (Machines) . . . . . .58 AT&T Alaska. . . . . . . . . . . . . . . . . . . . . . .11 Azimuth Adventure Photography. . . . . . .37 Bell Tech. . . . . . . . . . . . . . . . . . . . . . . . . .53 Bering Shai Rock & Gravel LLC . . . . . . .59 Body Renew Alaska. . . . . . . . . . . . . . . . .47 BP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83 Bristol Bay Native Corp.. . . . . . . . . . . . . .67 Calista Corp.. . . . . . . . . . . . . . . . . . . .35, 37 Capture the Fun Alaska LLC . . . . . . . . . .49

122

Carlile Transportation Systems . . . . . . . .13 CCI Industrial . . . . . . . . . . . . . . . . . . . . . .75 Central Environmental Inc.. . . . . . . . . . . .97 Children's Hospital at Providence . . . . . .62 Chris Arend Photography. . . . . . . . . . . .122 Clarion Suites Downtown. . . . . . . . . . . .115 Cloud49 . . . . . . . . . . . . . . . . . . . . . . . . . .55 Construction Machinery Industrial LLC . . .2 Crowley . . . . . . . . . . . . . . . . . . . . . . . . . .95 Cruz Construction Inc. . . . . . . . . . . . . . . .99 Delta Western. . . . . . . . . . . . . . . . . . . . . .51 Design Alaska . . . . . . . . . . . . . . . . . . . . .80 Dowland-Bach Corp. . . . . . . . . . . . . . . . .79 Doyon Emerald . . . . . . . . . . . . . . . . . . . .80 Doyon Limited . . . . . . . . . . . . . . . . . . . . .33 Dynamic Properties—Matthew Fink . . . .35 ERA Alaska . . . . . . . . . . . . . . . . . . . . . . .17 ERA Helicopters. . . . . . . . . . . . . . . . . . . .84 Fairweather LLC. . . . . . . . . . . . . . . . . . . .23 First National Bank Alaska. . . . . . . . . . . . .5 Flint Hills Resources . . . . . . . . . . . . . . .104 GCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Golder Associates . . . . . . . . . . . . . . . . . .77 Great Originals. . . . . . . . . . . . . . . . . . . . .62 Harley Marine. . . . . . . . . . . . . . . . . . . . . .62 High Tide Exploration. . . . . . . . . . . . . . . .89

Judy Patrick Photography . . . . . . . . . . . .87 Kakivik Asset Management . . . . . . . . . .111 Kendall Ford Wasilla. . . . . . . . . . . . . . . . . .6 Ketchikan Visitors Bureau . . . . . . . . . . . .15 Kinross Fort Knox. . . . . . . . . . . . . . . . . . .65 Landye Bennet Blumstein LLP . . . . . . . .31 Linc Energy . . . . . . . . . . . . . . . . . . . . . .107 Lounsbury & Associates . . . . . . . . . . . .113 Lynden Inc.. . . . . . . . . . . . . . . . . . . . . . . .39 Medical Park Family Care Inc.. . . . . . . . .47 Microcom . . . . . . . . . . . . . . . . . . . . . . . . .57 Mikunda Cottrell & Co.. . . . . . . . . . . . . . .42 MT Housing Inc.. . . . . . . . . . . . . . . . . . .112 N C Machinery Co. / The CAT Rental Store. . . . . . . . . . . .69 NALCO Energy Services. . . . . . . . . . . . .80 NCB . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Northern Air Cargo. . . . . . . . . . . . . . .44, 45 Northrim Bank . . . . . . . . . . . . . . . . . . . . .43 Offshore Systems Inc. . . . . . . . . . . . . . . .93 PacArctic Logistics. . . . . . . . . . . . . . . . . .84 Pacific Alaska Freightways. . . . . . . . . . . .73 Pacific Pile & Marine . . . . . . . . . . . .8, 9, 10 Parker Smith & Feek . . . . . . . . . . . . . . . .19 Pebble Partnership. . . . . . . . . . . . . . . . . .68

Pen Air . . . . . . . . . . . . . . . . . . . . . . . . . . .87 Personnel Plus. . . . . . . . . . . . . . . . . . . .116 PND Engineers Inc. . . . . . . . . . . . . . . . .110 ProComm Alaska. . . . . . . . . . . . . . . . . . .85 PSC Environmental Services . . . . . . . .109 Quality Suites near Convention Center 115 Rodeway Inn | Voyager Hotel. . . . . . . . .115 Rosie’s Delivery . . . . . . . . . . . . . . . . . . . .49 Rotary District 5010 . . . . . . . . . . . . . . . .114 RSA Engineering Inc.. . . . . . . . . . . . . . . .58 Stellar Designs Inc. . . . . . . . . . . . . . . . . .49 The Growth Company . . . . . . . . . . . . . . .31 Tikchik Lodge. . . . . . . . . . . . . . . . . . . . . .21 Trailercraft Inc. | Freightliner of Alaska. .108 Udelhoven Oilfield Systems. . . . . . . . . .103 UMIAQ . . . . . . . . . . . . . . . . . . . . . . . . . .101 Unisea . . . . . . . . . . . . . . . . . . . . . . . . . . .51 URS Corp. . . . . . . . . . . . . . . . . . . . . . . . .88 Washington Crane & Hoist. . . . . . . . . . . .41 Waste Management. . . . . . . . . . . . . . . . .71 Wells Fargo . . . . . . . . . . . . . . . . . . . . . .124 Workers Compensation Commission of Alaska Inc.. . . . . . . . . . . . . . . . . . .31 World Trade Center Alaska . . . . . . . . . . .21 XTO Energy . . . . . . . . . . . . . . . . . . . . . . . .3

www.akbizmag.com • Alaska Business Monthly • May 2012

No Surprises

“

Surprises are great, except when they are hidden in fine print or extra fees. The HomeChoice™ class at Alaska Housing Finance Corporation taught us how to compare home loans and figure out what it would actually cost us. Now, thanks to a great rate through the First-Time Homebuyer Program at AHFC, we moved into our new house.

“

-Jen & Matt First-time homebuyers

Get moving

with great interest rates from AHFC

@ www.ahfc.us Toll-Free 1-800-478-2432 | 907-338-6100 | www.ahfc.us

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wellsfargo.com/appreciation *Potential savings of “$400 or more” is based on estimated savings on combined fee waivers and rate reduction for special offers. Please consult a banker for details on savings and duration for individual product and services offers. Please also refer to the Business Account fee and Information Schedule for details on monthly service fee waivers and other discounts. Offers may be modified or withdrawn at any time without notice and may not be transferable. Savings noted above based on standard fees applicable to selected business solutions. Terms and conditions of accounts, products, programs, and services are subject to change. All applications are subject to approval. © 2012 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. NMLSR ID 399801

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